2023 (5) TMI 67 - AT - Income Tax

Estimation of agricultural income - allowing part income as agricultural rest as income from other sources - demand was raised against the assessee pursuant to the order passed u/s 154 and a bona fide error has occurred while furnishing appeal form no.35 before the CIT(A) which were a rectifiable mistake - HELD THAT - The interest of justice will be well-served if the assessee is given an opportunity to present her case before the CIT(A). It is directed that the ld. CIT(A) will give opportunity to the assessee to rectify the mistake in furnishing Form no.35 and thereby considering the appeal of the assessee if the same has been preferred against the assessment order dated 20.12.2019 and thereafter the ld. CIT(A) will give proper opportunity to the assessee to furnish the necessary documents and to present her case and thereafter to decide the appeal of the assessee in accordance with law.

Summary

Issues involved: Appeal against orders of National Faceless Appeal Centre u/s 250 of the Income Tax Act, discrepancy in filing appeal form, opportunity for assessee to present case before CIT(A).

Summary:

Issue 1: Estimation of agriculture income
The assessee appealed against the Assessing Officer's estimation of agriculture income at Rs.50,000 instead of Rs.5,65,450, resulting in the remaining amount being assessed as income from other sources.

Issue 2: Ex parte order by CIT(A)
The assessee's counsel argued that the CIT(A)'s order was ex parte and based on a mistake in filing the appeal against a rectification order u/s 154 instead of the original order u/s 143(3). The counsel requested an opportunity for the assessee to rectify the mistake and present the case before the CIT(A).

Judgment:
The Tribunal directed the CIT(A) to allow the assessee to rectify the mistake in filing Form no.35 and present necessary documents to properly address the appeal against the original assessment order u/s 143(3). The Tribunal emphasized the importance of giving the assessee a fair opportunity to be heard and decided in accordance with the law. The same directions were applied to all related appeals with identical facts and issues.

In conclusion, all appeals of the assessee were allowed for statistical purposes, ensuring that the assessee receives a fair chance to present their case before the CIT(A) and rectify any filing discrepancies.