Ram Murti, Kurukshetra V. ITO, W-3, Yamunanagar

ITA 1290/CHANDI/2019

AI Insights

The case involves an appeal by the assessee, Ram Murti, against the order of the Ld. CIT(A)-3, Ludhiana, which upheld the addition of Rs. 11,13,295 as deemed income under section 69 of the Income Tax Act. The assessee's return was not filed, and upon reopening of the assessment, this amount was considered to have escaped assessment. The Ld. CIT(A) dismissed the appeal without adjudicating on the merits, focusing only on the legality of the proceedings initiated by the issuance of notice under section 148. The Tribunal found that the Ld. CIT(A) did not consider the additional evidence provided by the assessee and thus remanded the matter back for a decision on merits.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 127725 (ITAT-CHANDIGARH)
• Duration Of Justice: 3 year(s) 6 month(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-04-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: Not Allotted
• Next Hearing Date: 11-04-2023
• Assessment Year: 2008-2009
• Appeal Filed On: 26-09-2019
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Deemed to accrue or arise in india; Additional evidence; Set aside
• Section: 148; 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 ITA NO. 1290/Chd/ 2019 Assessment Year : 2008-09 Ram Murti C/o Krishan Kumar & Sons Shop No. 19, New Grain Market, Kurukshetra (Haryana) The ITO, Ward-3, Yamuna Nagar (Haryana) PAN NO: DBBPM4921B Appellant Respondent ! " Assessee by : None # ! " Revenue by : Smt. Gagan Kundra, JCIT, Sr. DR $ % ! & Date of Hearing : 12/04/2023 '()* ! & Date of Pronouncement : 13/04/2023 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. 01/06/2019 wherein the assessee has taken the following grounds of appeal: 1. Because the action is being challenged on facts & law for upholding the addition of Rs. 11,13,295/- u/s 69 treating the same as deemed income. 2. Because the action is being challenged on facts & law for not adjudicating the issue on merits and neither the additional evidences raised while the CIT(A) order is confining itself only to the legality hence, prejudice to the assessee litigant. 3. Because the quantum of additions too made are disputed. 4. Because for allowing the addition, modification in the Grounds of Appeal since being a last fact finding authority and for any consequential relief and or 2 any legal claim arising therein in the interest of substantial justice for a decision in accordance with law. 2. None has appeared on behalf of the assessee nor any adjournment application was filed. Given that the appeal was filed way back in the year 2019, it was decided to proceed ahead and decide the matter based on material available on record. 3. At the outset, it is noted that the Registry has issued a defect memo relating to the appeal fee paid by the assessee. On perusal of the records, it is noted that the receipt in original showing deposit of appeal fee amounting to Rs. 10,000/- which has been deposited with State Bank of India, Sector 10-D, Chandigarh dt. 23/09/2019 is available on the record. Therefore, in view of the same, we find that effectively there is no defect as so pointed out by the Registry and the appeal is admitted for adjudication. 4. Briefly, the facts of the case are that the case of the assessee was reopened basis the information that the assessee has jointly purchased a piece of land alongwith certain other persons and the share of the assessee comes to Rs. 11,13,295/- and since the assessee has not filed his return of income, the amount of Rs. 11,13,295/- was held to have escaped assessment and notice under section 148 was issued. Thereafter, the assessment was completed under section 144 r.w.s 147 dt. 21/03/2016 and in absence of any explanation submitted by the assessee in support of the source of investment made towards the purchase of the land, the amount of Rs. 11,13,295/- was brought to tax in the hands of the assessee. 5. Being aggrieved, the assessee carried the matter in appeal before the Ld. CIT(A) who has since confirmed the findings of the AO. 6. In ground No. 2, the assessee has stated that the Ld. CIT(A) has not adjudicated the issue on merits and even the additional evidence submitted 3 during the course of appellate proceedings were not considered and only on the legality of the proceedings initiated by the issuance of notice under section 148, the appeal of the assessee has been dismissed. 7. The DR is heard and material available on the record is perused. Given that the Ld. CIT(A) has not decided the matter on merit and no specific findings have been recorded, we deem it appropriate to set aside the matter to the file of Ld. CIT(A) to decide the same on merits after taking into consideration the additional evidence so claimed to be filed by the assessee in support of source of investment for purchase of land and to decide the same as per law after providing reasonable opportunity to the assessee. 8. In the result, appeal of the assessee is allowed for statistical purposes. Order pronounced in the open Court on 13/04/2023. 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: 13/04/2023 ( + ! , - . - Copy of the order forwarded to : 1. The Appellant 2. The Respondent 3. $ / CIT 4. $ / 0 1 The CIT(A) 5. - 2 ग 4 5 & 4 5 678 ग9 DR, ITAT, CHANDIGARH 6. ग 8 : % Guard File ( + $ By order, ; # Assistant Registrar