Shri Sukhdev Singh Grewal, Ludhiana V. ITO-Ward-VI-2, Ludhiana

ITA 113/CHANDI/2020

AI Insights

The case involves an appeal by Shri Sukhdev Singh Grewal against the order of the CIT(A)-3, Ludhiana, which confirmed an addition of Rs. 18,92,000 to the assessee's taxable income as undisclosed income. The addition was initially made by the AO under section 144 r.w.s 147 and section 68 of the Income Tax Act, due to unexplained cash deposits in the assessee's bank account. The assessee, who had migrated to the USA, could not attend the assessment proceedings and later submitted additional evidence during the appellate proceedings, which was not admitted by the CIT(A). The Tribunal found that the assessee was not provided an effective opportunity during the appellate proceedings and decided to admit the additional evidence and remand the matter back to the AO.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 127771 (ITAT-CHANDIGARH)
• Duration Of Justice: 3 year(s) 2 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-04-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: Not Allotted
• Next Hearing Date: 25-04-2023
• Assessment Year: 2011-2012
• Appeal Filed On: 29-01-2020
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Additional evidence; Set aside
• Section: 68; 144

Judgement Text

आयकर अपील य अ धकरण,च डीगढ़ यायपीठ “बी” , च डीगढ़ IN THE INCOME TAX APPELLATE TRIBUNAL, CHANDIGARH BENCH “B”, CHANDIGARH ी आकाश द प जैन, उपा य एवं ी $व%म 'संह यादव, लेखा सद,य BEFORE: SHRI. AAKASH DEEP JAIN, VP & SHRI. VIKRAM SINGH YADAV, AM आयकर अपील सं./ ITA NO. 113/Chd/ 2020 नधा रण वष / Assessment Year : 2011-12 Shri Sukhdev Singh Grewal H.No. 25, Shakti Nagar Ludhiana-141002 बनाम The ITO Ward-VI-2 Ludhiana थायी लेखा सं./PAN NO: ABEPG0070B अपीलाथ /Appellant यथ /Respondent नधा रती क! ओर से/Assessee by : Shri I.S. Khurana, C.A राज व क! ओर से/ Revenue by : Smt. Surinder Kaur Waraich, JCIT, Sr. DR स ु नवाई क! तार&ख/Date of Hearing : 26/04/2023 उदघोषणा क! तार&ख/Date of Pronouncement : 28/04/2023 आदेश/Order PER VIKRAM SINGH YADAV, A.M. : This is an appeal filed by the assessee against the order of the Ld. CIT(A)-3, Ludhiana dt. 12/09/2019 wherein the assessee has taken the following grounds of appeal: 1. That the Ld. CIT(A) has erred in confirming the addition amounting to Rs. 18,92,000/- in taxable income as undisclosed income. 2. That the Ld. CIT(A) has erred in not waiting for the Remand Report as called for from Ld. AO before pronouncing the Appellate Order. 3. That the order of the CIT(A) is erred and bad in law. 2. Briefly the facts of the case are that the assessment in this case was completed under section 144 r.w.s 147 vide order dt. 26/12/2018 wherein an amount of Rs. 18,92,000/- was brought to tax as unexplained cash deposits under section 68 of the Act in absence of any explanation regarding source of the cash deposits made by the assessee in his saving bank account maintained with Axis Bank, Ludhiana. 2 3. Being aggrieved, the assessee carried the matter in appeal before the Ld. CIT(A) and it was submitted that since the assessee has migrated to USA and no more residing in India, the assessment proceedings could not be attended to and necessary documentation could not be furnished before the AO and a prayer was made before the Ld. CIT to admit the additional evidence under Rule 46A in form of two title deeds whereby the assessee has sold certain pieces of land for an amount of Rs. 34,87,500/- and out of which Rs. 18,92,000/- was deposited in his bank account alongwith copy of the bank account statement and affidavit of the assessee. 3.1 The Ld. CIT(A) initially send the submissions of the assessee as well as request for admission of additional evidence under Rule 46A of the AO vide letter dt. 21/02/2019. However, subsequently, without waiting for the remand report, he has recorded a finding that the additional evidence under Rule 46A cannot be admitted and given that the assessee had not attended to the proceedings, the appeal of the assessee was decided ex-parte for want of necessary prosecution. 4. Against the said findings and direction of the Ld. CIT(A), the assessee is in appeal before us. 5. During the course of hearing, the Ld. AR submitted that the assessee has since migrated to USA and is a Green Card holder and a copy of the Green Card issued to the assessee dt. 26/01/2011 was placed on record. It was further submitted that the assessment was completed ex-parte by the AO and subsequently during the appellate proceedings, the assessee through the AR attended to the proceedings and filed additional evidence, the Ld. CIT(A) without waiting for remand report from the AO has dismissed the appeal of the assessee and additional evidence so submitted by the assessee in the form of title deed, affidavit and the bank statement were also not admitted and 3 considered. It was accordingly submitted that the assessee has not been provided an effective opportunity during the appellate proceedings and the matter has also not been decided on merit taking into consideration the additional evidence so submitted and it was prayed that the additional evidence be admitted and the opportunity be provided to the assessee to put forward his necessary submissions and documentation in support of cash deposits in the bank account maintained by the assessee with Axis Bank Ludhiana. 6. Per contra, the Ld. DR has relied on the order of the lower authorities. 7. We have heard the rival contentions and perused the material available on the record. Admittedly, the assessee has migrated to USA and due to that, the proceedings before the AO could not be attended to resulting in best judgment assessment under section 144 r.w.s. 147 of the Act. Given the fact that the assessment was completed on the best judgment basis without considering the explanation/submissions of the assessee for reasons beyond the control of the assessee, the same provides a reasonable basis for admittance of the additional evidence submitted by the assessee under Rule 46A and the matter should therefore be decided after taking into account the additional evidence so submitted by the assessee. Therefore, in the facts and circumstances of the present case, we hereby admit the additional evidence submitted by the assessee in the form of title deeds, affidavit and bank statement as well as copy of the letter dt. 02/06/2020 wherein the distance of the land sold by the assessee from the local limits of Jagraon have been stated by Tehsildar Jagraon. The matter is set aside to the file of the AO to examine the additional evidence so admitted and decide as per law after providing reasonable opportunity to the assessee. 4 8. Further the Ld. AR has stated at the Bar that the assessee shall cooperate with the proceedings before the AO and given the fact that the assessee has since migrated to USA, all communication from the AO may be addressed to his office. The AO is directed accordingly to address all communication as per particulars below: thereof are as under: I.S. KHURANA & CO. Chartered Accountants 66-F, Shaheed Bhagat Singh Nagar, Ludhiana-141013 Email id: [e-mail] Mob No: 9814117572 9. The Registry is also directed to send a copy of the order at the aforesaid address of the ld AR. 10. In the result, appeal of the assessee is allowed for statistical purposes. Order pronounced in the open Court on 28/04/2023. Sd/- Sd/- आकाश द प जैन $व%म 'संह यादव (AAKASH DEEP JAIN) ( VIKRAM SINGH YADAV) उपा य / VICE PRESIDENT लेखा सद,य/ ACCOUNTANT MEMBER AG Date: 28/04/2023 आदेश क! त,ल-प अ.े-षत/ Copy of the order forwarded to : 1. अपीलाथ / The Appellant 2. यथ / The Respondent 3. आयकर आय ु /त/ CIT 4. आयकर आय ु /त (अपील)/ The CIT(A) 5. -वभागीय त न4ध, आयकर अपील&य आ4धकरण, च7डीगढ़/ DR, ITAT, CHANDIGARH 6. गाड फाईल/ Guard File आदेशान ु सार/ By order, सहायक पंजीकार/ Assistant Registrar