ATAM TEXTILES PRIVATE LIMITED,LUDHIANA V. .INCOME TAX OFFICER, WARD III(2),LDH , LUDHIANA

ITA 766/CHANDI/2024

AI Insights

The case involves Atam Textiles Pvt. Ltd., which appealed against the order of the CIT(A) under Section 250 of the Income Tax Act, 1961. The appeal was concerning the assessment year 2017-18, where the assessee had declared a book profit under section 115JB. The Income Tax Officer (ITO) made additions to the income, which were confirmed by the CIT(A). The assessee contested that the CIT(A) passed an ex-parte order without serving any notice, thus violating the principles of natural justice. Both parties agreed that the impugned order was unreasoned and lacked proper discussion on the issues raised.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 472701 (ITAT-CHANDIGARH)
• Duration Of Justice: 4 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-12-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2017-2018
• Appeal Filed On: 11-07-2024
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: VIVEK VARDHAN
• Assessee Lawyers: RAJEEV KAUSHAL
• Keywords: Set aside; Opportunity of being heard; Additional evidence; Principle of natural justice; Non passing of speaking order
• Section: 143(3); 250; 69A; 115JB

Judgement Text

" आयकर अपील य अ\u000bधकरण,च\u0010डीगढ़ \u0014यायपीठ , च\u0010डीगढ़ IN THE INCOME TAX APPELLATE TRIBUNAL, CHANDIGARH BENCH ‘A’ CHANDIGARH BEFORE: SHRI VIKRAM SINGH YADAV, ACCOUNTANT MEMBER AND SHRI PARESH M. JOSHI, JUDICIAL MEMBER, आयकर अपील सं./ ITA No. 766/CHD/2024 \u0001नधा\u0005रण वष\u0005 / Assessment Year : 2017-18 Atam Textiles Pvt. Ltd., Street No.2, Nanak Nagar, New Sabzi Mandi. Vs The ITO, Ward III(2), Ludhiana. \fथायी लेखा सं./PAN /TAN No: AABCA4132D अपीलाथ\u0017/Appellant \u0018\u0019यथ\u0017/Respondent \u0001नधा\u0005\u001aरती क\u001d ओर से/Assessee by : Shri Rajeev Kaushal, CA राज\fव क\u001d ओर से/ Revenue by : Shri Vivek Vardhan, JCIT, Sr.DR तार ख/Date of Hearing : 05.12.2024 उदघोषणा क\u001d तार ख/Date of Pronouncement : 09.12.2024 PHYSICAL HEARING आदेश/ORDER PER PARESH M. JOSHI, JM This is an appeal filed by the assessee under Section 253 of the Income Tax Act, 1961 as and by way of second appeal before this Tribunal. The assessee is aggrieved by the order bearing No. ITBA/NFAC/S/250/2024- 25/1064958207(1) dated 17.05.2024 passed by ld. CIT(A) under Section 250 of the Income Tax Act, 1961 which is hereinafter referred to as the “Impugned order”. The ITA 766/CHD/2024 A.Y. 2017-18 2 relevant assessment year is 2017-18 and the corresponding previous year period is from 01.04.2016 to 31.03.2017. 2. The assessee filed its return of income for A.Y. 2017- 18 on 06-11-2017 declaring book profit of Rs. 4,60,012/- u/s 115JB of Income Tax Act 1961(here in after referred to as \"the Act\"). Assessment order u/s 143(3) of the Act was passed on 06-12-2019 by making additions of Rs. 17,00,000/- u/s 69A of the Act- on account of alleged non explanation of cash deposited in bank account during demonetization period and Rs. 1,99,187/- on account of allegation that such amount of profit on sale of assets was never credited to profit and loss account, though the same was reduced from taxable income in computation of income. 3. The assessee has raised following grounds of appeal before us : 1. No notice was served on the assessee. Ex-Parte order was passed by CIT (A), without giving any opportunity of being heard; thus defying the law of natural Justice. Therefore, the assessee was not having sufficient opportunity to plead his case and ITA 766/CHD/2024 A.Y. 2017-18 3 substantiate his contentions. Order so passed, dismissing all grounds of appeal of assessee, 'without serving him any notice, thus not giving him the opportunity of being heard, is illegal and void. 2. That without prejudice to above, the additional evidence may kindly be admitted under Rule 29 of Income Tax Appellate Tribunal Rules, 1963, in the interest of natural justice. 3. That order passed by assessing officer u/s 143(3) of the Income Tax act, 1961(For Brevity \"the Act\"), and order passed by CIT (A) u/s 250 of the Act is against the facts of the case and as well as against the law. 4. That addition made by assessing officer and further confirmed by CIT(A)(without giving opportunity of being heard ) amounting to Rs 17,00,000/-,u/s 69A of the Act, on account of cash deposited during demonetization period, is without proper appreciation of the facts on record. Such Action of revenue is against the facts and law. 5. That addition made by assessing officer and further confirmed by CIT (A)(without giving opportunity of being heard ) amounting to Rs 1,99,187/-, on account of wrong observation/appreciation of the fact that profit arising on sale of fixed assets amounting to Rs 1,99,187/- was not credited in profit and loss account of the assessee. Such Action of revenue is against the facts and law. 6. That the assessee craves the right to add, delete or amend any ground of appeal before disposal of the same. 4. The hearing in the matter took place before us on 05.12.2024 when both the ld. AR for and on behalf of the assessee and ld. DR for and on behalf of the Revenue appeared before us. The ld. AR contended before us that impugned order is in violation of the principle of natural justice null and void besides being illegal and bad in law as no notice was served on the assessee before the ITA 766/CHD/2024 A.Y. 2017-18 4 impugned order was passed. Thus, impugned order is ex-parte. Per contra, ld. AR for and on behalf of the assessee contended that besides impugned order being ex-parte is also an unreasoned order as nothing is discussed in the impugned order at all. The appeal of the assessee is dismissed without giving any reasons. Both the ld. AR and ld. DR finally contended that impugned order be set aside and matter be remitted back to CIT(A) to pass a fresh order on denovo basis. 5. We have minutely perused the impugned order and we notice that no reasons have been given for dismissing the appeal of the assessee. It is, thus, an unreasoned and non speaking order. There is also no mention in the impugned order about any notice which was served affording a reasonable opportunity of being heard to the assessee. 6. Accordingly, we set aside the impugned order and remand the case back to the file of the CIT(A) to pass a fresh order which should be well reasoned and speaking after giving a notice of hearing to the assessee. ITA 766/CHD/2024 A.Y. 2017-18 5 7. In result, appeal of the assessee is allowed for statistical purposes. Order pronounced on 09.12.2024. Sd/- Sd/- (VIKRAM SINGH YADAV) ( PARESH M. JOSHI) ACCOUNTANTMEMBER JUDICIAL MEMBER “Poonam” आदेश क\u0002 \u0003ितिलिप अ\tेिषत/ Copy of the order forwarded to : 1. अपीलाथ\u000f/ The Appellant 2. \u0003\u0010यथ\u000f/ The Respondent 3. आयकर आयु\u0014/ CIT 4. िवभागीय \u0003ितिनिध, आयकर अपीलीय आिधकरण, च\u0018डीगढ़/ DR, ITAT, CHANDIGARH 5. गाड\u001c फाईल/ Guard File आदेशानुसार/ By order, सहायक पंजीकार/ Assistant Registrar 1. Draft dictated 09.12.2024 Sr.PS 2. Draft first placed before author 09.12.2024 3. Approved draft comes to Sr.PS/PS 4 Final draft placed before author 5. Order signed and pronounced on 6 File sent to the Bench Clerk Sr.PS 7. Date on which file goes to the AR 8. Date on which file goes to the Head Clerk. 9. Date of dispatch of Order "