Late Harmahender Singh Bagga, Hyderabad V. DCIT, Circle - 1(3), Hyderabad

ITA 1330/HYD/2014

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 6538 (ITAT-HYDERABAD)
• Duration Of Justice: 1 year(s) 10 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-05-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 03-05-2016
• Assessment Year: 2010-2011
• Appeal Filed On: 18-07-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Opportunity of being heard; Principle of natural justice; Additional evidence
• Section: 144

Judgement Text

N THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH A, HYDERABAD BEFORE SMT P. MADHAVI DEVI, JUDICIAL MEMBER AND SHRI S. RIFAUR RAHMAN, ACCOUNTANT MEMBER ITA NO. 1330/HYD/2014 ASSESSMENT YEAR: 2010-11 LATE HARMAHENDER SINGH BAGGA (REPRESENTED BY INDERJEET KAUR BAGGA), HYDERABAD. PAN AHMPB 5258J VS. DY. COMMISSIONER OF INCOME- TAX, CIRCLE 1(3), HYDERABAD (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI P. MURALI MOHAN RAO REVENUE BY : SHRI M. SITARAM DATE OF HEARING 03-05-2016 DATE OF PRONOUNCEMENT 20-05-2016 O R D E R PER S. RIFAUR RAHMAN, A.M.: THIS APPEAL IS PREFERRED BY THE ASSESSEE AGAINST T HE ORDER DATED 21/05/2014 OF THE LEARNED COMMISSIONER OF INC OME- TAX(APPEALS) - II, HYDERABAD FOR AY 2010-11. 2. BRIEFLY THE FACTS OF THE CASE ARE THAT THE ASSES SEE, AN INDIVIDUAL, FILED HIS RETURN OF INCOME FOR AY 2010- 11 ON 29/12/2010 ADMITTING INCOME OF RS. 5,49,510/-. AO PASSED THE O RDER U/S 144 OF THE IT ACT ON 20/03/2013 DETERMINING THE INCOME AT RS. 3,13,09,841/- BY MAKING THE FOLLOWING ADDITIONS: 1. UNEXPLAINED CHEQUE/TRANSFER CREDITS TREATED AS INCOME U/S 68 RS. 2,85,60,331 2. UNEXPLAINED CASH DEPOSITS TREATED AS INCOME U/S 68 RS. 22, 00,000 2 ITA NO. 1330/H/14 SLATE HARMAHENDER SINGH BAGGA (L/R INDERJEET KAUR BAGGA) 3. ON AN APPEAL, THE CIT(A) PASSED EX-PARTE ORDER D ISMISSING THE ASSESSEES APPEAL. 4. STILL AGGRIEVED THE ASSESSEE IS IN APPEAL BEFORE US. 5. THE PRIMARY CONTENTION OF THE ASSESSEE IN THE GR OUNDS OF APPEAL SS THAT THE CIT(A) ERRED IN DISPOSING THE AP PEAL EX-PARTY WITHOUT GIVING PROPER OPPORTUNITY OF BEING HEARD WH ICH IS AGAINST THE PRINCIPLES OF NATURAL JUSTICE. 6. BEFORE US, THE AR OF THE ASSESSEE FILED PETITION FOR ADMISSION OF ADDITIONAL EVIDENCES STATING THEREIN THAT REQUESTIN G TO ADMIT THE PAPER BOOK CONTAINING CONFIRMATION LETTERS FOR THE DEPOSI TS MADE IN THE BANK ACCOUNT AS ADDITIONAL EVIDENCES. HE SUBMITTED THAT ASSESSMENT IN THE CASE OF ASSESSEE WAS COMPLETED EX-PARTE U/S 144 OF THE ACT. IT IS SUBMITTED THAT THE ASSESSEE WAS NOT ABLE TO ATTEND THE SCRUTINY PROCEEDINGS AS HE WAS NOT KEEPING WELL AND WAS NOT MEDICALLY FIT TO ATTEND THE PROCEEDINGS. FURTHER, HE SUBMITTED THAT THE ASSESSEE EXPIRED ON 14/09/2013 AND THEREFORE, THE RELEVANT E VIDENCES IN RESPECT OF DEPOSITS IN BANK ACCOUNTS WERE NOT MADE AVAILABLE BEFORE THE LOWER AUTHORITIES. HE SUBMITTED THAT THE LEGAL REPRESENTATIVE OF THE ASSESSEE I.E. SMT. INDERJEET KAUR BAGGA HAS PREFERR ED THE CURRENT APPEAL BEFORE THE ITAT AND FILED ADDITIONAL EVIDENC ES IN SUPPORT OF ASSESSEES CASE. 7. LD. DR, ON THE OTHER HAND RELIED UPON THE ORDERS OF REVENUE AUTHORITIES. 8. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS AND PER USED THE ORDERS OF REVENUE AUTHORITIES AS WELL AS THE MATERI AL FACTS ON RECORD. ON PERUSAL OF RECORD, WE FIND THAT ASSESSEE WAS NOT WELL AT THE RELEVANT POINT OF TIME, HE COULD NOT ATTEND THE PRO CEEDINGS BEFORE THE AO AS WELL AS THE CIT(A), DUE TO WHICH, THE REVENUE AUTHORITIES HAVE 3 ITA NO. 1330/H/14 SLATE HARMAHENDER SINGH BAGGA (L/R INDERJEET KAUR BAGGA) PASSED ORDERS EX-PARTE. THEREAFTER, THE ASSESSEE EX PIRED ON 14/09/2013. THEREFORE, THE ASSESSEE WAS UNABLE TO A TTEND AND SUBSTANTIATE HIS CLAIM BEFORE THE REVENUE AUTHORITI ES WITH MATERIAL EVIDENCE. HENCE, THE LEGAL REPRESENTATIVE OF ASSESS EE CAME IN APPEAL BEFORE THE ITAT AND FILED ADDITIONAL EVIDENCES IN S UPPORT OF ASSESSEES CLAIM. SINCE THE ASSESSEE IS NO MORE AND THE ADDITIONAL EVIDENCES FILED FOR THE FIRST TIME BEFORE THE ITAT, IN THE INTEREST OF NATURAL JUSTICE, WE ADMIT THE ADDITIONAL EVIDENCE F ILED BY THE LEGAL REPRESENTATIVE OF THE ASSESSEE AND REMIT THE ISSUE TO THE FILE OF THE ASSESSING OFFICER WITH A DIRECTION TO DECIDE THE IS SUE ON MERITS IN ACCORDANCE WITH LAW AFTER PROVIDING REASONABLE OPPO RTUNITY OF BEING HEARD TO THE LEGAL REPRESENTATIVE OF ASSESSEE. 9. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. PRONOUNCED IN THE OPEN COURT ON 20 TH MAY, 2016 SD/- SD/- (P. MADHAVI DEVI) (S. RIFAUR RAHM AN) JUDICIAL MEMBER A CCOUNTANT MEMBER HYDERABAD, DATED: 20 TH MAY, 2016 KV COPY TO:- 1) LATE HARMAHENDER SINGH BAGGA (L/R INDERJEET KAU R BAGGA) C/O P. MURALI & CO., CAS., 6-3-655/2/3, 1 ST FLOOR, SOMAJIGUDA, HYDERABAD 500 082 2) DCIT, CIRCLE 1(3), HYDERABAD 3 CIT(A) - II 4) CIT - 1, HYDERABAD 5) THE DEPARTMENTAL REPRESENTATIVE, I.T.A.T., HYDE RABAD. 4 ITA NO. 1330/H/14 SLATE HARMAHENDER SINGH BAGGA (L/R INDERJEET KAUR BAGGA) S.NO. DESCRIPTION DATE INTLS 1. DRAFT DICTATED ON SR.P.S./P.S 2. DRAFT PLACED BEFORE AUTHOR SR.P.S/PS 3 DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER JM/AM 4 DRAFT DISCUSSED/APPROVED BY SECOND MEMBER JM/AM 5 APPROVED DRAFT COMES TO THE SR.P.S./PS SR.P.S./P.S 6. KEPT FOR PRONOUNCEMENT ON SR. P.S./P.S. 7. FILE SENT TO THE BENCH CLERK SR.P.S./P.S 8 DATE ON WHICH FILE GOES TO THE HEAD CLERK 9 DATE OF DISPATCH OF ORDER