Gagan Gandhi, New DELHI V. ITO Ward 54(1), New Delhi

ITA 1173/DEL/2019

• Counselvise Citation: [2019] 114 COUNSELVISE.COM (IT) 2223 (ITAT-DELHI)
• Duration Of Justice: 9 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-11-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2014-2015
• Appeal Filed On: 13-02-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Opportunity of being heard; Principle of natural justice; Proportionate interest; Set aside

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: SMC NEW DELHI BEFORE SHRI H. S. SIDHU, JUDICIAL MEMBER I.T.A. NO. 1173/DEL/2019 ASSESSMENT YEAR: 2014-15 GAGAN GANDHI, VS. INCOME TAX OFFICER, F-63, LAJPAT NAGAR-I, WARD-54(1), NEW DELHI NEW DELHI (PAN: ABIPS7399P) (ASSESSEE) (RESPONDENT) ASSESSEE BY : NONE REVENUE BY : SH. PRADEEP SINGH GAUTAM, SR. DR. ORDER THIS APPEAL IS FILED BY THE ASSESSEE AGAINST THE OR DER DATED 07.12.2018 PASSED BY THE LD. CIT(A)-18, NEW DELHI R ELATING TO ASSESSMENT YEAR 2014-15 ON THE FOLLOWING GROUNDS:- 1. UNDER THE FACTS AND CIRCUMSTANCES OF THE CASE, THE APPELLATE ORDER PASSED BY THE LD. CIT(A) IS ILLEGAL BEING AGAINST THE PRINCIPLES OF NATURAL JUSTICE AND AGAINST THE PROVISIONS OF I.T. ACT, 1961. 2. THE LD. CIT(A) HAS GROSSLY ERRED ON FACTS AS WELL AS IN LAW IN RESTRICTING THE DISALLOWANCE TO THE PROPORTIONATE INTEREST WITH REGARD TO THE INTEREST FREE ADVANCE OF RS. 73,43,526/- GIVEN BY THE APPELLANT U/S. 36(1)(III) OF THE I.T. ACT. 2 3. THE LD. CIT(A) HAS GROSSLY ERRED ON FACTS AS WELL AS IN LAW IN IGNORING THE FACTS THAT DISALLOWANCE U/S. 36(1)(III) CANNOT BE MADE IF ASSESSEE HAS GOT SUFFICIENT INTEREST FREE FUNDS. 4. THE APPELLANT CRAVES LEAVE TO ADD, ALTER, MODIFY AND WITHDRAW ANY GROUND OF APPEAL BEFORE OR DURING THE APPELLATE PROCEEDINGS. 2. IN THIS CASE, NOTICE OF HEARING TO THE ASSESSEE WAS SENT BY THE REGISTERED AD POST, IN SPITE OF THE SAME, ASSESSEE, NOR HIS AUTHORIZED REPRESENTATIVE APPEARED TO PROSECUTE THE MATTER IN DISPUTE, NOR FILED ANY APPLICATION FOR ADJOURNMENT . KEEPING IN VIEW THE FACTS AND CIRCUMSTANCES OF THE PRESENT CASE AN D THE ISSUE INVOLVED IN THE PRESENT APPEAL, I AM OF THE VIEW TH AT NO USEFUL PURPOSE WOULD BE SERVED TO ISSUE NOTICE AGAIN AND A GAIN TO THE ASSESSEE, THEREFORE, I AM DECIDING THE PRESENT APP EAL EXPARTE QUA ASSESSEE, AFTER HEARING THE LD. DR AND PERUSING THE RECORDS. 3. LD. DR RELIED UPON THE ORDERS OF THE AUTHORITIE S BELOW. 4. I HAVE HEARD LD. DR AND PERUSED THE RECORDS AVAI LABLE WITH ME ESPECIALLY THE IMPUGNED ORDER PASSED BY THE LD. CIT (A). I FIND CONSIDERABLE COGENCY IN THE CONTENTION RAISED IN TH E GROUNDS OF APPEAL THAT LD. CIT(A) HAS IGNORED THE FACT THAT DISALLOW ANCE U/S. 36(1)(III) CANNOT BE MADE IF ASSESSEE HAS GOT SUFFICIENT INTER EST FREE FUNDS AND DID 3 NOT GIVE PROPER OPPORTUNITY TO THE ASSESSEE TO SUB STANTIATE HIS CASE. KEEPING IN VIEW OF THE FACT AND CIRCUMSTANCES OF TH E CASE, THE ISSUES IN DISPUTE ARE SET ASIDE TO THE FILE OF THE LD. CIT(A) WITH THE DIRECTIONS TO DECIDE THE SAME AFRESH, AFTER CONSIDERING ALL THE E VIDENCES/DOCUMENTS AND GIVE ADEQUATE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. ASSESSEE IS ALSO DIRECTED TO FULLY COOPERATE WITH THE LD. CI T(A) AND DID NOT TAKE ANY UNNECESSARY ADJOURNMENT AND FILE ALL THE NECESSARY DOCUMENTARY EVIDENCES BEFORE HIM. 5. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE STANDS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED ON 20/11/2019. SD/- [H.S. SIDHU] JUDICIAL MEMBER DATE 20/11/2019 SRB COPY FORWARDED TO: - 1. APPELLANT - 2. RESPONDENT - 3. CIT 4. CIT (A) 5. DR, ITAT TRUE COPY BY ORDER, ASSISTANT REGISTRAR, ITAT, DELHI BENCHES