ATMA PRAKASH KHATRI,KANPUR V. .DCIT CC-1, KANPUR

ITSSA 61/LKW/2024

AI Insights

The case involves Atma Prakash Khatri, the appellant, contesting an appellate order from the Commissioner of Income Tax (Appeals) for the Assessment Year 2017-18. The primary contention revolves around the addition of Rs.96,14,00,000 under Section 69A of the Income Tax Act, which the appellant argues was made without any corroborative material and based on presumptions. The appellant also challenged the jurisdiction and the procedural validity of the notice under Section 153A, and the application of Section 292C concerning the seized bank notes (SBN). The CIT(A)'s decision was passed ex-parte, not considering the appellant's requests for adjournment due to medical and legal issues. The Tribunal, acknowledging the procedural oversights and the need for a fair hearing, decided to remand the matter back to the CIT(A) for a de novo consideration.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 471443 (ITAT-LUCKNOW)
• Duration Of Justice: 10 month(s) 7 day(s)
• Appeal Type: Income Tax (Search & Seizure) Appeal
• Pronouncement Date: 13-12-2024
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: A
• Assessment Year: 2017-2018
• Appeal Filed On: 05-02-2024
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: NAMITA S. PANDEY
• Assessee Lawyers: SAMRAT CHANDRA
• Keywords: Set aside; Opportunity of being heard; Principle of natural justice
• Section: 153A; 69A

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL LUCKNOW BENCH “A”, LUCKNOW BEFORE SHRI. KUL BHARAT, VICE PRESIDENT AND SHRI ANADEE NATH MISSHRA, ACCOUNTANT MEMBER IT(SS)A No.61/LKW/2024 Assessment Year: 2017-18 Atma Prakash Khatri 113/79, Swaroop Nagar Kanpur v. The DCIT Central Circle – 1 Kanpur TAN/PAN:AAWPP8092R (Appellant) (Respondent) Appellant by: Shri Samrat Chandra, C.A. Respondent by: Smt. Namita S. Pandey, CIT (DR) O R D E R PER ANADEE NATH MISSHRA, A.M.: (A) Appeal in I.T.A. No.61/LKO/2024 has been filed by the assessee for Assessment Year 2017-18 against the impugned appellate order dated 20.12.2023 in Appeal No. CIT(A)- IV/KNP/10910 of ld. Commissioner of Income Tax (Appeals) [“ld. CIT(A)” for short]. The grounds of appeal are as under: 1. Because on the facts and in the circumstances of the case the order of Ld. CIT(A) is bad in law and deserves to be quashed being illegal. 2. Because on the facts and in the circumstance of the case, the order of Ld. CIT(A) is bad in law since the Ld. CIT(A) passing the order without any corroborative material evidence on record, added the amount of Rs.96,14,00,000/- U/s 69A of the Income Tax Act. IT(SS)A No.61/LKW/2024 Page 2 of 4 3. Because, the Ld. CIT(A) has erred in not accepting that the notice of the proceedings U/s 153A of the Act was defective and without jurisdiction hence the entire order is liable to be set-aside and quashed. 4. Because on the facts and in the circumstance of the case, the order of Ld. CIT(A) has been passed without accepting that the SBN was not found from appellant, neither was owned by appellant as well as nor belonging to the appellant. 5. Because on the facts and in the circumstance of the case, the order of Ld. CIT(A) has been passed with illegally and wrongly applying the presumption of section 292C of the Act. 6. Because on the facts and in the circumstance of the case, the Ld. CIT(A) has been illegally made addition of Rs.96.14 Cr. which is purely on the presumption basis and without corroborative material made the illegal addition. 7. Because on the facts and in the circumstance of the case, the Ld. CIT(A) has erred and has illegally taken the SBN under purview of section 292C of the Act or any other applicable section of the act as valuable having value and made the impugned addition of Rs.94.40 Crores on account of SBN having any value. 8. Because on the facts and in the circumstance of the case, the order of Ld. CIT(A) has been passed in absolute violation of the principles of Natural Justice, without providing adequate opportunity of being heard and therefore deserves to be set aside and quashed. IT(SS)A No.61/LKW/2024 Page 3 of 4 9. The appellant craves for leave to add, modify, amend or delete any other and further grounds of appeal with permission. (B) In this case, the assessment order dated 31.12.2019 under section 143A of the Income Tax Act, 1961 [“I.T. Act” for short] was passed, whereby the assessee’s total income was determined at Rs.97,07,84,600/-. The assessee’s appeal filed in the office of the ld. CIT(A) was dismissed vide impugned appellate order dated 20.12.2023. The aforesaid impugned order of the ld. CIT(A) was passed ex-parte qua the appellant-assessee. The present appeal has been filed by the assessee against the aforesaid impugned appellate order dated 20.12.2023 of the ld. CIT(A). In the course of appellate proceedings, a paper book was filed from the assessee’s side containing copies of letters seeking adjournment, filed before the ld. CIT(A). (C) At the time of hearing before us, the ld. A.R. for the assessee submitted that the assessee had sought adjournment on one occasion on the ground that the assessee was admitted in Emergency (ICU) at Eternal Hospital, Jaipur and underwent Laparoscopic appendectomy surgery. On the other occasions, the assessee sought adjournment on the ground that a Police case was pending, which was subjudice and proceedings were also pending in Civil Court. However, the ld. CIT(A), in his impugned appellate order, did not take cognizance of the aforesaid letters seeking adjournment and went ahead to pass ex-parte order, dismissing the assessee’s appeal, which has caused grave injustice and serious hardship to the assessee. The ld. A.R. for the assessee further submitted that the issue in dispute, regarding addition made by the AO, may be restored back to the file of the ld. CIT(A) with the direction to pass de novo IT(SS)A No.61/LKW/2024 Page 4 of 4 order in accordance with law after providing reasonable opportunity to the appellant-assessee. The ld. D.R. for the Revenue did not express any objection to this. (D) In view of the foregoing and as representatives of both the sides are in agreement with this, we set aside the impugned appellate order dated 20.12.2023 of the ld. CIT(A) and we restore the issue in dispute, regarding addition made in the assessment order, to the file of the ld. CIT(A) with a direction to pass fresh order in accordance with law after providing reasonable opportunity to the assessee. (E) In the result, the appeal is partly allowed for statistical purposes. Order pronounced in the open Court on 13/12/2023. Sd/- Sd/- [KUL BHARAT] [ANADEE NATH MISSHRA] VICE PRESIDENT ACCOUNTANT MEMBER DATED:13/12/2023 JJ: Copy forwarded to: 1. Appellant 2. Respondent 3. CIT(A) 4. CIT 5. DR By order Assistant Registrar "