Income Tax Appellate Tribunal - Amritsar
Smt. Rifat Ara , Srinagar vs Income Tax Officer Ward-1, Srinagar on 27 May, 2024
IN THE INCOME TAX APPELLATE TRIBUNAL
AMRITSAR BENCH, AMRITSAR.
BEFORE DR. M. L. MEENA, ACCOUNTANT MEMBER
AND SH. UDAYAN DASGUPTA, JUDICIAL MEMBER
I.T.A. No.309/Asr/2023
Assessment Year: 2016-17
Smt. Rifat Ara H. No. 39, Umer Vs. ITO-Ward(1),
Colony, Wanabal, Rawalpora, Srinagar.
Srinagar. Jammu & Kashmir.
[PAN:-ANNPA4805H] (Respondent)
(Appellant)
Appellant by None (Written Submission)
Respondent by Sh. Radhey Shyam Jaiswal, Sr.
DR
Date of Hearing 13.05.2024
Date of Pronouncement 27.05.2024
ORDER
Per: Udayan Dasgupta, JM:
The instant appeal of the assessee was filed against the order of the NFAC, Delhi, [in brevity the 'CIT(A)'], order dated 14.09.2023 for A.Y. 2016-17. The impugned order was emanated from the order of the NFAC, Delhi, (in brevity the AO) order dated 21.09.2021.
2. The assessee has taken the following grounds: -
I.T.A. No.309/Asr/2023 Assessment Year: 2016-17 2 "1. The ld. CIT(A) has erred in law and facts by confirming the additions made by the AO to the total income of the appellant. This is bad in law and needs to be reversed.
2. The ld. CIT(A) has erred in law and facts by dismissing the appeal. This is against the law and the order passed by the CIT(A) relooked into.
3. The appellant reserves the right to add, alter, amend, modify and delete any ground of appeal."
3. The facts of the case in brief is that the assessee filed her return of Income declaring a total income of Rs.11,54,150/-, after claiming loss from house property of (loss) Rs. 2 Lakhs, and deductions under Chapter VIA of the Act '61, amounting to Rs. 4,86,348/-, under various sections (as per details contained in the assessment order). The return of income was declared invalid by CPC and not processed, and another return was filed by the assessee declaring the same income. Notice u/s 148 of the Act 61 was issued on 01/04/2019, against which no return was filed.
4. The case of the AO is that, in course of proceedings u/s 147, in order to verify the genuineness of the claim of the assessee, regarding loss from house property and the deductions claimed under Chapter VIA, notices were issued on various dates but there has been no response to such notices, issued on 11/06/2021, 13/08/2021, and finally on 18/09/2021.
I.T.A. No.309/Asr/2023 Assessment Year: 2016-17 3 4.1 Assessment was completed on a total income of Rs. 18,40,500/- by disallowing the claim of Loss from house property and the deductions claimed under Chapter VIA of the Act 61, for want of documentary evidences and in absence of any response from the assessee.
5. In first appeal before CIT (A), it is seen from the memorandum of appeal in Form 35, that the assessee has submitted fresh evidence, being the salary certificate in Form 16, in terms of Rule 46A, and claimed that all deductions as claimed under chapter VIA and the claim of loss from house property, are duly certified by the concerned DDO and the said claim should be allowed on the basis of the certificate in Form 16.
5.1 There was no compliance before the CIT(A) NFAC, as seen from the appeal order, in spite of repeated notice issued by the office of the CIT(A), but the mode of issue of such notice and proof of actual service of hearing notice, is not confirmed, and it is also not clear whether hearing notice is issued by email, in absence of any email id being stated in clause 17 of Form 35. 5.2 The CIT ( A ) has dismissed the appeal due to non-representation by the assessee and sustained the addition of the AO .
I.T.A. No.309/Asr/2023 Assessment Year: 2016-17 4
6. In course of hearing before the Tribunal, from the written submission of the Ld. AR, it is seen that the assessment proceedings was mostly held during the COVID period and due to migration of physical hearing to faceless hearing, it was not possible for the lady assessee to file all documents and comply with all hearing notices, over the computer based faceless platform. 6.1 However, regarding the claim of the assessee, the documentary evidence on the basis of which the claim of deduction under Chapter VIA and house property loss, has been made, are evidenced by Form 16, which has been filed along with Form - 35, before the appellate authority, as per Rule 46A as fresh evidence. The CIT (A) in course of appellate proceedings has not referred or considered the said Form 16 (which is supposed to have been issued by the DDO), and which contains the details of all such deductions claimed by the assessee. 6.2 Moreover, appellate hearing notice has not been received by the assessee, neither in the postal address mentioned in Form 35, (column - 17) nor in the email address contained in the opening particulars, and it was also not possible for the assessee to keep tract of the appeal portal, and as such the assessee was prevented by sufficient cause from causing a representation before the appellate authority.
7. The Ld DR relied on the order of the CIT (A).
I.T.A. No.309/Asr/2023 Assessment Year: 2016-17 5
8. We have heard the submissions of both the parties, and are of the opinion that the assessment proceedings were completed just after COVID period, and for all practical purpose , it might not have been physically possible for the assessee to gather all documentary evidences from respective sources , regarding her claim u/s 80C, 80D, 80DD,80DDB, 80E of the Act 61, and the evidence in relation to the claim of loss against house property, and to upload the same in on line portal , and before first appellate authority , she has only relied on her Form 16 ( issued by the DDO ) , without furnishing any other documentary evidence. 8.1 Moreover, the first appellate authority, has not considered the evidence of Form 16 and verified its contents, before dismissing the appeal, and in this case, otherwise also, the service of notice of hearing on the appellant is not as per procedure laid down u/s 282 of the Act 61, as categorically laid down by the Hon'ble jurisdictional High Court in the case of Munjal CPU vs CIT(E) , CWP- 21028-2023 (O&M) Date of Decision: 04.03.2024 .
8.2 Moreover, in our opinion, the documentary evidences, regarding the claim of the assessee needs proper verification and scrutiny at the ground level, and as such in all fitness of things on the principles of natural justice, we set aside the case to the files of the assessing officer for de novo fresh assessment, to be completed, after verification of all evidences as necessary to his satisfaction.
I.T.A. No.309/Asr/2023 Assessment Year: 2016-17 6 The assessee is also directed to fully cooperate with the AO and file all supporting documentary evidences to establish her claim of house property loss and her claim in respect of all other deductions claimed under Chapter VIA, to the satisfaction of the AO.
9. In the result, the appeal of the assessee bearing ITA No. 309/Asr/2023 is allowed for statistical purposes.
Order pronounced in the open court on 27.05.2024 Sd/- Sd/-
(Dr. M. L. Meena) (UDAYAN DASGUPTA)
Accountant Member Judicial Member
AKV
Copy of the order forwarded to:
(1)The Appellant
(2) The Respondent
(3) The CIT
(4) The CIT (Appeals)
(5) The DR, I.T.A.T.
True Copy
By order