Sh. Surmukh Singh, Mohali V. ITO, W-6(4), Mohali

ITA 1220/CHANDI/2018

• Counselvise Citation: [2019] 115 COUNSELVISE.COM (IT) 2945 (ITAT-CHANDIGARH)
• Duration Of Justice: 5 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-03-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2011-2012
• Appeal Filed On: 14-09-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MANJIT SINGH
• Keywords: Gift; Income from undisclosed sources; Opportunity of being heard; Principle of natural justice; Set aside; Audi alteram partem

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH, SMC, CHANDIGARH .. , BEFORE SHRI N.K.SAINI, VICE PRESIDENT ./ ITA NO. 1220/CHD/2018 / ASSESSMENT YEAR : 2011-12 SH. SURMUKH SINGH, H.NO. 142, OPPOSITE GTB BUS STAND, MOHALI VS. THE ITO, WARD 6 (4), MOHALI ./PAN NO: ACBPS0735K / APPELLANT /RESPONDENT ! /ASSESSEE BY : SH. PARIKSHIT AGGARWAL, CA ' ! / REVENUE BY : SH. MANJIT SINGH, SR. DR # $ % /DATE OF HEARING : 06.03.2019 &'() % / DATE OF PRONOUNCEMENT : 06.03.2019 !'/ ORDER THIS IS AN APPEAL BY THE ASSESSEE AGAINST THE ORDER DATED 23.7.2018 OF THE LD. COMMISSIONER OF INCOME TAX (APPEALS)-2, CHANDIGARH. 2. THE MAIN GRIEVANCE OF THE ASSESSEE IN THIS APPEA L RELATES TO THE EX- PARTE ORDER PASSED BY THE LD. CIT(A) WITHOUT AFFORDING PR OPER OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. 3. FACTS OF THE CASE IN BRIEF ARE THAT THE ASSESSEE HAD MADE CASH DEPOSITS OF RS. 25,88,000/- IN HIS BANK ACCOUNT MAINTAINED W ITH ICICI BANK. THE CASE WAS REOPENED TO EXAMINE THE DEPOSITS WHICH THE ASSESSEE CLAIMED TO HAVE RECEIVED AS GIFTS FROM HIS WIFES RELATIVES. THE ASSESSEE WAS ASKED TO ESTABLISH THE CREDITWORTHINESS AND CAPACITY OF DONO RS OF THE IMPUGNED GIFTS OF RS. 15,05,000/- BUT THE ASSESSEE COULD FURNISH EXPLANATION REGARDING ITA NO. 1220-CHD-2018- SH. SURMUKH SINGH, MOHALI 2 DEPOSITS OF RS. 6,50,000/- ONLY. THEREFORE, THE ASSESSING OFFICER MADE ADDITION OF THE REMAINING AMOUNT OF RS. 8,55,000/- AS INCOME FROM UNDISCLOSED SOURCES. 4. BEING AGGRIEVED, THE ASSESSEE CARRIED THE MATTER TO THE LD. CIT(A) WHO DISMISSED THE APPEAL IN LIMINE BY OBSERVING THAT THE ASSESSEE DID NOT ATTEND ON THE DATES FIXED FOR HEARING AND ALSO NOTH ING NEW HAS BEEN BROUGHT ON RECORD TO CONTROVERT THE FINDINGS OF THE ASSESSING OFFICER.. 5. NOW THE ASSESSEE IS IN APPEAL. THE LD. COUNSEL F OR THE ASSESSEE SUBMITTED THAT NO OPPORTUNITY OF BEING HEARD WAS PR OVIDED BY THE LD. CIT(A) AND FURTHER SUBMITTED THAT THERE WAS A REASO NABLE CAUSE FOR NON- APPEARANCE ON THE APPOINTED DATE BEFORE THE CIT(A). IT HAS BEEN FURTHER SUBMITTED THAT THE ASSESSEE HAS A FAIR CASE ON MERI TS. 6. IN HIS RIVAL SUBMISSIONS, THE LD. DR SUPPORTED T HE IMPUGNED ORDER PASSED BY THE LD. CIT(A). 7. I HAVE CONSIDERED THE SUBMISSIONS OF BOTH THE P ARTIES AND PERUSED THE MATERIAL AVAILABLE ON THE RECORD. IN THE PRESEN T CASE, IT IS AN ADMITTED FACT THAT THE LD. CIT(A) DISMISSED THE APPEAL OF TH E ASSESSEE BY PASSING AN EX-PARTE ORDER. HOWEVER, IT IS NOT CLEAR AS TO WHETHER THE N OTICES ISSUED FOR DIFFERENT DATES WERE SERVED UPON THE ASSESSEE OR N OT. IT IS WELL SETTLED THAT NOBODY SHOULD BE CONDEMNED UNHEARD AS PER THE MAXIM AUDI ALTERAM PARTEM. I, THEREFORE, BY KEEPING IN VIEW THE PRINCIPLES OF NATURAL JUSTICE, DEEM IT APPROPRIATE TO SET ASIDE THIS CASE BACK TO THE FILE OF THE LD. CIT(A) TO BE ADJUDICATED AFRESH IN ACCORDANCE WITH LAW AFT ER PROVIDING DUE AND REASONABLE OPPORTUNITY OF BEING HEARD TO THE ASSESS EE. ITA NO. 1220-CHD-2018- SH. SURMUKH SINGH, MOHALI 3 8. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS AL LOWED FOR STATISTICAL PURPOSES. (ORDER PRONOUNCED IN THE COURT ON 06/03/2019) SD/- ( .. / N.K. SAINI) / VICE PRESIDENT DATED : 06.03.2019 .. '+ ,- .- / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT 3. # / / CIT 4. # / ( )/ THE CIT(A) 5. -01 2 , % 2 , 34516 / DR, ITAT, CHANDIGARH 6. 15 7$ / GUARD FILE '+ # / BY ORDER, 8 ' / ASSISTANT REGISTRAR