HI TECH TRANSFORMERS ,JAMMU V. INCOME TAX OFFICER WARD-, SAMBA

ITA 288/ASR/2024

AI Insights

The case involves Hi Tech Transformers, the appellant, contesting the orders of the Assessing Officer and the Commissioner of Income Tax (Appeals) regarding the assessment year 2017-18. The appellant argued that both the initial assessment and the subsequent appeal decision were unjust and not based on the facts or law, particularly criticizing the lack of a reasoned decision from the CIT(A) and the unsubstantiated additions made to their income. The Income Tax Appellate Tribunal found that the CIT(A)'s decision was made ex-parte without adequate consideration of the merits, leading to the remand of the case for a thorough re-evaluation.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 32843 (ITAT-AMRITSAR)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-12-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2017-2018
• Laws Referred To: Income Tax Act
• Result in Favour of: Matter Remanded
• Court: TRIBUNAL
• Department Lawyers: DAVINDER PAL SINGH
• Assessee Lawyers: P. N. ARORA
• Keywords: Opportunity of being heard; Principle of natural justice
• Section: 145(3)

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL ‘SMC’ BENCH, AMRITSAR BEFORE SHRI UDAYAN DAS GUPTA, JUDICIAL MEMBER AND SHRI KRINWANT SAHAY, ACCOUNTANT MEMBER आयकर अपील सं./ ITA No. 288/Asr/2024 Ǔनधा[रण वष[ / Assessment Year : 2017-18 Hi Tech Transformers, Village Kartholi, National Highway Bari Brahmna, Jammu 181123 Jammu and Kashmir बनाम The ITO, Ward Sambha, Aaykar Bhawan, Rail Head Complex, Panama Chowk, Jammu 180012 èथायी लेखा सं./PAN NO: AAAFH8856R अपीलाथȸ/Appellant Ĥ×यथȸ/Respondent ( Virtual Hearing ) Ǔनधा[ǐरती कȧ ओर से/Assessee by : Shri P.N. Arora, Advocate राजèव कȧ ओर से/ Revenue by : Shri Davinder Pal Singh, Sr.DR सुनवाई कȧ तारȣख/Date of Hearing : 17.12.2024 उदघोषणा कȧ तारȣख/Date of Pronouncement : 31.12.2024 आदेश/Order Per Krinwant Sahay, AM: Appeal in this case has been filed by the Assessee against the order dated 29.04.2024 passed by Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi (NFAC) for A.Y. 2017- 18. 2. Grounds of appeal are as under: - 288-Asr-2024 Hi Tech Transformers, Jammu 2 1. That the order of the Assessing Officer as well as the order of Learned CIT(A) are both against the facts of the case and are untenable under the law. 2. That the worthy CIT(A) has not appreciated the facts of the case and merely relied on order of the AO and without applying his mind and without any rhyme & reason, the Ld. CIT(A) has confirmed the addition made by the AO. As such the order of Ld CIT(A) is bad in the eyes of law and the same is liable to be cancelled and the addition made may be deleted. 3. That the A.O. and CIT(A) did not appreciate that the books of accounts were regularly maintained and on the basis of which the income was returned at Rs.7,44,850/-. The books of accounts were duly audited and all the sales and purchases have been vouched and no defect has been pointed out in the books of accounts and the books of accounts have not been rejected and the provisions of section 145(3) were never invoked. Since, the books of accounts maintained by the assessee were accepted, as such, there was no reason and occasion for making the addition of Rs.40,71,709/- and the same may be deleted. 4 That the AO did not appreciate that the withdrawals made by the assessee were duly deposited in the bank account and as such there was no reason and occasion for making the addition. Similarly, the Ld. CIT(A) has also grossly erred in confirming the addition. As such, the addition made is unjustified and uncalled for 288-Asr-2024 Hi Tech Transformers, Jammu 3 and the same may be deleted as the addition was made purely on the basis of conjectures, surmises and suppositions. 5 That the order of the CIT(A) is non-speaking order and he has not applied his mind while deciding the appeal and he has also not adjudicated the appeal on the grounds of appeal. Even otherwise, the order of the CIT(A) is bad in the eyes of law as the case has not been decided on merits. 6 That the Ld. CIT(A) has not allowed any reasonable opportunity of being heard before dismissing the appeal of the assessee. As such the order of the Ld. CIT(A) is bad in the eyes of law and the same is liable to be cancelled. 3. At the very outset, the ld. Counsel for the Assessee during proceedings before us submitted that it is an ex-parte order passed by the ld. CIT(A). He has further submitted that the ld. CIT(A) has not given any finding in his order on merit. As per the order of the CIT(A), although notices were sent through ITBA portal and e.mail provided by the Assessee but the ld. Counsel further submitted that Assessee did not see any notice and, therefore, compliance was not made. 4. The ld. DR relied on the order of the CIT(A). 5. We have considered the findings given by the ld. CIT(A) in his order and the submissions made by the ld. Counsel for the Assessee during 288-Asr-2024 Hi Tech Transformers, Jammu 4 the proceedings before us. We find that it is an ex-parte order passed by the ld. CIT(A) in which, on the basis of material available on record, the ld. CIT(A) has not given any point-wise findings on merit. Therefore, keeping in view the element of natural justice, the case is remanded back to the ld. CIT(A) to be decided afresh on merit, in accordance with law, on affording due and adequate opportunity of hearing to the Assessee. The Assessee, no doubt, shall cooperate in the fresh proceedings before the CIT(A). All pleas available under the law shall remain so available to the assessee. Ordered accordingly. 6. In the result, appeal is allowed for statistical purposes. Order pronounced on 31.12.2024. Sd/- Sd/- ( UDAYAN DAS GUPTA ) ( KRINWANT SAHAY ) Judicial Member Accountant Member “आर.क े.” आदेशकȧĤǓतͧलͪपअĒेͪषत/ Copy of the order forwarded to : 1. अपीलाथȸ/ The Appellant 2. Ĥ×यथȸ/ The Respondent 3. आयकरआयुÈत/ CIT 4. ͪवभागीयĤǓतǓनͬध, आयकरअपीलȣयआͬधकरण, चÖडीगढ़/ DR, ITAT, CHANDIGARH 5. गाड[फाईल/ Guard File आदेशानुसार/ By order, सहायकपंजीकार/ Assistant Registrar "