Shri Avtar Singh, New Delhi V. ITO, New Delhi

CO 341/DEL/2011

• Counselvise Citation: [2015] 123 COUNSELVISE.COM (IT) 0231 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 3 month(s) 2 day(s)
• Appeal Type: Cross Objection
• Pronouncement Date: 12-01-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 12-01-2015
• Assessment Year: 2008-2009
• Appeal Filed On: 10-10-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PARWINDER KAUR
• Assessee Lawyers: K P GANGULI
• Keywords: Opportunity of being heard; Principle of natural justice
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH A , NEW DELHI BEFORE SH. N. K. SAINI, AM AND SH. GEORGE GEORGE K. , JM ITA NO. 4092/DEL/2011 : ASSTT. YEAR : 2008 - 09 INCOME TAX OFFICER , WARD 43(4), NEW DELHI VS SHRI AVTAR SINGH, BF - 119, SHALIMAR BAGH, NEW DELHI (APPELLANT) (RESPONDENT) CO NO. 341/DEL/2011 : ASSTT. YEAR : 2008 - 09 SHRI AVTAR SINGH, BF - 119, SHALIMAR B AGH, NEW DELHI VS INCOME TAX OFFICER, WARD 43(4), NEW DELHI (APPELLANT) (RESPONDENT) PAN NO. A IJPS3484N ASSESSEE BY : SH. K. P. GANGULI, ADV. REVENUE BY : SMT. PARW INDER KAUR , SR. DR DATE OF HEARING : 12 .01.2015 DATE OF PRONOUNCE MENT : 12 .01.2015 ORDER PER BENCH : TH E APPEAL BY THE DEPARTMENT AND THE CROSS OBJECTION BY THE ASSESSEE ARE DIRECTED AGAINST THE ORDER DATED 30.06.2011 OF LD. CIT(A) - XXX, NEW DELHI. 2. FIRSTLY WE WILL DEAL WITH THE CROSS OBJECTION I.E. CO NO. 341/DEL/2011 FILED BY THE ASSESSEE. IN THE CROSS OBJECTION THE ONLY GROUND RAISED READ AS UNDER: THAT, ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE CIT (APPEALS) - XXX WAS NOT JUSTIFIED IN NOT ITA NO. 4092 & CO 341 /DEL /2011 AVTAR SINGH 2 ADJUDICATING ON THE THIRD GROUND OF APPEAL AND DECLARING THE ORDER PASSED BY THE APPELLANT DT. 30.12.2010 U/S 143(3) OF THE INCOME TAX ACT, 1961 AS INVALID. 3. DURING THE COURSE OF HEARING THE LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE ASSESSEE RAISED SPECIFIC GROUND BEFORE THE LD. CIT(A ) STAT ING THEREIN THAT THE ADDITION WAS MADE BY THE AO WITHOUT CONFRONTING THE ASSESSEE WITH THE DOCUMENTS RELIED UPON AND THEREBY VIOLATING THE PRINCIPLE OF NATURAL JUSTICE. IT WAS CONTENDED THAT A PROPER OPPORTUNITY OF BEING HEARD WAS NOT PROVIDED TO THE ASSES SEE BY THE AO AND THE LD . CIT(A) HAD NOT ADJUDICATED THE ISSUE. 4. IN HIS RIVAL SUBMISSIONS THE LD. DR SUPPORTED THE ORDER OF T HE AO BUT COULD NOT CONTROVERT THE AFORESAID CONTENTION OF THE LD. COUNSEL FOR THE ASSESSEE . 5. A FTER CONSIDERING THE SUBMISS IONS OF BOTH THE PART IES AND THE MATERIAL ON RECORD, I T IS NOTICED THAT THE ASSESSEE RAISED THE FOLLOWIN G GROUNDS BEFORE THE LD. CIT(A): THAT, ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, ITO WARD 43(4) WAS NOT JUSTIFIED IN MAKING ADDITION OF RS. 2 .54 CRORE ON PROTECTIVE BASIS RELYING ON THE LETTER DATED 23.01.2009 RECEIVED BY THE CIT - XIII, NEW DELHI FROM SECRETARY TO REIC, DELHI ZONE AND ADDL. COMMISSIONER OF CUSTOM. THAT, ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, ITO WARD 43(4) WAS NOT J USTIFIED IN MAKING THE ABOVE SAID ADDITION WITHOUT CONFRONTING THE APPELLANT WITH THE DOCUMENTS RELIED ITA NO. 4092 & CO 341 /DEL /2011 AVTAR SINGH 3 UPON AND THEREBY VIOLATING THE PRINCIPLES OF NATURAL JUSTICE AND RENDERING THE IMPUGNED ORDER INVALID. 6. HOWEVER, THE LD. CIT(A) HAD NOT ADJUDICATED T HE SECOND GROUND VIDE WHICH THE ASSESSEE HAD STATED THAT T HERE WAS VIOLATION OF PRINCIPLE OF NATURAL JUSTICE, S INCE, THE DOCUMENTS RELIED UPON WERE NOT CONFRONTED TO THE ASSESSEE. WE, THEREFORE, SET ASIDE THIS ISSUE BACK TO THE FILE OF THE LD. CIT(A) FOR A DJUDICATION . S INCE THE ISSUE IS R EMANDED BACK TO THE LD. CIT(A), T HE GROUND RAISED BY THE DEPARTMENT IN ITS APPEAL BEING CO - RELATED TO THE ISSUE AGITATED BY THE ASSESSEE, IS ALSO REMANDED BACK TO THE LD. CIT(A) TO BE ADJUDICATED AFRESH IN ACCORDANCE WITH L AW AFTER PROVIDING DUE AND REASONABLE OPPORTUNITY OF BEING HEARD. 7 . IN THE RESULT, THE APPEAL OF THE DEPARTMENT AND THE CROSS OBJECTION OF THE ASSESSEE ARE ALLOWED FOR STATISTICAL PURPOSES . ( ORDER PRON OUNCED IN THE COURT ON 12 /01/2015 ) SD/ - SD/ - (GEORGE G EORGE K. ) (N. K. SAINI) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 12 /01/2015 *SUBODH* COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR