Ramesh Jethi, New Delhi V. ITO, Ward-35(3), New Delhi

ITA 1115/DEL/2022

AI Insights

The case involves an appeal by the assessee, Ramesh Jethi, against the order of the CIT (Appeals)-12, New Delhi, which pertained to the Assessment Year 2015-16. The primary contention was regarding the addition of Rs.67,89,421 as custom duty, which the AO claimed was a discrepancy between the custom duty reported in the Income Tax Return (ITR) and the data from export-import records. The assessee argued that the custom duty was included in the purchase value as per ICAI standards and requested a remand for proper explanation and submission of documents, which was denied by the CIT (A). The Tribunal found that the assessee was not given a fair opportunity to present his case and thus remanded the matter back to the AO.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 113860 (ITAT-DELHI)
• Duration Of Justice: 9 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-02-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: F
• Next Hearing Date: 14-02-2023
• Assessment Year: 2015-2016
• Appeal Filed On: 19-05-2022
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Opportunity of being heard; Additional evidence
• Section: 69; 201

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH ‘F’ : NEW DELHI) SHRI SHAMIM YAHYA, ACCOUNTANT MEMBER and MS. ASTHA CHANDRA, JUDICIAL MEMBER ITA No.1115/Del./2022 (ASSESSMENT YEAR : 2015-16) Ramesh Jethi, vs. ITO, Ward 35 (3), C/o Sumit Goel & Associates CA, New Delhi. E-2302, Dasnac, The Jewel of Noida, Sector 75, Delhi – 201 301. (PAN : AHKPJ3037B) (APPELLANT) (RESPONDENT) ASSESSEE BY : None REVENUE BY : Shri K.K. Mishra, Sr. DR Date of Hearing : 15.02.2023 Date of Order : 20.02.2023 ORDER PER SHAMIM YAHYA, ACCOUNTANT MEMBER : This appeal by the assessee is directed against the order of ld. CIT (Appeals)-12, New Delhi dated 08.10.2018 pertaining to the Assessment Year 2015-16. 2. The assessee has taken the following grounds of appeal :- “1. That under the fact and circumstance, Ld. A.O. as well as Ld. CIT (A) erred in law in passing and sustaining order u/s. 144 of the I.T. Act, 1961. ITA No.1115/Del./2022 2 2. That under the fact and circumstance, Ld. CIT (A) erred in law in not quashing the Asstt. Order since reasonable opportunity of being heard not provided by Ld. A.O. and passed ex-parte Asstt. order. 3. That under the fact & circumstance, Ld. CIT (A) erred in law in not admitting Additional documents/evidences under Rule 46A. 4. That under the fact and circumstance, Ld. A.O. as well as Ld. CIT (A) erred in law in making and sustaining addition of Rs.67,89,421/- being difference between custom duty paid as per ITR & AIR information.” 2. Brief facts of the case are that AO in this case received AIR information that there was a mismatch of custom duty between the ITR and the data received from the export-import. According to AO, assessee despite opportunity did not file the details. Hence, AO added the custom duty amounting to Rs.67,89,421/- under section 69 of the Income-tax Act, 1961 (for short 'the Act'). 3. Before the ld. CIT (A), assessee submitted that custom duty paid against the import of goods was included in the purchase value. Assessee also referred to the accounting standards issued by ICAI whereby all the import custom duty and taxes are to be included in the purchase value. Assessee requested that the matter should be remanded back to the AO for proper explanation and the submission of the documents. However, ld. CIT (A) did not agree for the above proposition. He rejected the submission of the additional evidences and confirmed the AO’s action. ITA No.1115/Del./2022 3 4. We have heard ld. DR for the Revenue. None appeared on behalf of the assessee despite notices. Hence we are proceeding to adjudicate the issue by hearing the ld. DR for the Revenue and perusing the records. 5. We note that assessee had furnished additional evidences before the ld. CIT (A) and requested that an opportunity be given to explain the issue with submissions and documents before the AO. Ld. CIT (A) has rejected this request. In our considered view, interest of justice would be served if the issue is remanded to the file of AO. AO is directed to consider the issue afresh in the light of the submissions made and documents placed by the assessee. Needless to add, assessee should be provided an opportunity of being heard. 6. In the result, the appeal of the assessee stands allowed for statistical purposes. Order pronounced in the open court on this 20 th day of February, 2023. Sd/- sd/- (ASTHA CHANDRA) (SHAMIM YAHYA) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated the 20 th day of February, 2023/TS Copy forwarded to: 1.Appellant 2.Respondent 3.CIT 4.CIT(A)-12, New Delhi. 5.CIT(ITAT), New Delhi. AR, ITAT NEW DELHI.