Case Law Details
Malchira Chittiappa Nanaiah Vs Assessment Unit of Income Tax Department (ITAT Bangalore)
In the case of Malchira Chittiappa Nanaiah vs. Assessment Unit of Income Tax Department, the Income Tax Appellate Tribunal (ITAT) Bangalore issued a significant ruling overturning an ex-parte order against the appellant, an illiterate agriculturist. The appeal arose from an assessment year 2015-16 concerning the appellant’s tax liabilities.
The appeal was filed by the assessee challenging an order passed by the National Faceless Assessment Centre (NFAC) in New Delhi, dated January 12, 2024. The NFAC had upheld an ex-parte order by the Commissioner of Income Tax (Appeals) [CIT(A)], confirming the original assessment order by the Assessing Officer (AO). The ex-parte order was issued because the appellant, due to being an agriculturist and illiterate, failed to respond to notices for hearings issued by the CIT(A).
During the ITAT proceedings, the appellant’s counsel argued that the appellant was not proficient with the IT e-system and therefore did not receive or understand the notices sent electronically. This led to the ex-parte order being passed against him. The appellant’s counsel also contended that despite submitting various details during the appellate proceedings, the CIT(A) had dismissed the appeal without considering these submissions. Key documents, including land ownership certificates and details of agricultural activities, were submitted to demonstrate the appellant’s agricultural income and the validity of expenses claimed against it.
On the other hand, the Department’s representative argued that the appellant had not disclosed any income other than agricultural income for the assessment year in question. There was suspicion that undisclosed income might be camouflaged as agricultural income, a common concern in tax assessments.
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