Shri Pooran Singh, Dholpur V. Income Tax Officer, War-4, Bharatpur

ITA 134/JPR/2019

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 7262 (ITAT-JAIPUR)
• Duration Of Justice: 1 year(s) 6 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-09-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2010-2011
• Appeal Filed On: 05-02-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: CHANCHAL MEENA ACIT
• Keywords: Principle of natural justice; Set aside
• Section: 142(1); 250; 147; 148; 144; 139

Judgement Text

VK;DJ VIHYH; VF/KDJ.K] T;IQJ U;K;IHB] T;IQJ IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHE S,D.B. JAIPUR JH FOT; IKY JKO] U;KF;D LNL; ,OA JH FOE FLAG ;KNO] YS[KK LNL; DS LE{K BEFORE: SHRI VIJAY PAL RAO, JM & SHRI VIKRAM SINGH YADAV, AM VK;DJ VIHY LA- @ ITA NO. 134/JP/2019 FU/KZKJ.K O'K Z @ ASSESSMENT YEAR : 2010-11 SHRI POORAN SINGH 13, SAIMAR KA PURA, VILLAGE- LALORI, TEH, BARI, DHOLPUR. CUKE VS. THE ITO, WARD-4, BHARATPUR. LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN/GIR NO.: BIIPS 6014 H VIHYKFKHZ@ APPEL LANT IZR;FKHZ@ RESPONDENT FU/KZKFJRH DH VKSJ L S@ ASSESSEE BY : NONE JKTLO DH VKSJ LS @ REVENUE BY : MISS CHANCHAL MEENA (ACIT) LQUOKBZ DH RKJH[ K@ DATE OF HEARING : 01/09/2020 MN?KKS'K.KK DH RKJH[ K@ DATE OF PRONOUNCEMENT: 02/09/2020 VKNS'K@ ORDER PER: VIJAY PAL RAO, J.M. THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST TH E ORDER DATED 30.11.2018 OF LD. CIT (A), ALWAR FOR THE ASSESSMENT YEAR 2010-11. DUE TO PREVAILING COVID-19 PANDEMIC CONDITION THE HEARI NG OF THE APPEAL IS CONCLUDED THROUGH VIDEO CONFERENCE. THE ASSESSE HAS RAISED THE FOLLOWING GROUNDS:- THAT THE HUMBLE APPELLANT IS AGRICULTURIST. THAT D UE TO NOTICES SERVED ON INCORRECT ADDRESSES THE HUMBLE APPELLANT COULD NOT BE APPEARED BEFORE THE LD ASSESSING AUTHORITY. THAT DUE TO ITA NO. 134/JP/2019 SHRI POORAN SINGH VS. ITO 2 NOTICE FOR HEARING OF CASE BY CIT (ALWAR) IS RECEIV ED AFTER THE DATE OF HEARING, THUS THE HUMBLE APPELLANT COULD NO T BE APPEARED BEFORE CIT (APPEALS) - ALWAR, RESULTING EX -PARTE ORDER PASSED & APPEAL REJECTED BY CIT (APPEALS)-ALW AR ON DT 30-11-2018 CONFIRMING THE ORDER OF ASSESSING AUTHOR ITY. 1. THAT THE LEARNED ASSESSING AUTHORITY ITO WARD 4, BHARATPUR HAVE MADE ADDITION OF RS. 538800/- ON ACCOUNT OF SA LE OF SHARES. 2. THAT THE LEARNED ASSESSING AUTHORITY ITO WARD 4, BHARATPUR HAS ERRED IN LAW AS WELL AS THE FACTS AND CIRCUMSTA NCES OF THE CASE IN MAKING THE ADDITION ON ACCOUNT OF SHARE TRA NSACTION RS. 538800/- WITHOUT CONSIDERING FACTS AND LEGAL PROVIS IONS OF THE CASE. 3. THAT LEARNED LOWER AUTHORITIES GROSSLY ERRED IN LAW AND FACTS IN PASSING ORDER ON THE BASIS OF ASSUMPTION AND PRESUM PTIONS. 4. THAT ORDER OF LEARNED LOWER AUTHORITIES ARE AGAI NST PRINCIPLES OF NATURAL JUSTICE. APPELLANT WAS NOT CONFRONTED WI TH THE MATERIAL USED AGAINST THE APPELLANT AND WAS NOT GIVEN OPPORT UNITY OF REBUTTAL. 5. THAT FURTHER SUBMISSION SHALL BE MADE AT THE TIM E OF HEARING. 6. THAT THE APPELLANT CRAVES LEAVE TO ADD AMEND OR ALTER ALL OR ANY GROUNDS OF APPEAL AND RELIEF BEFORE OR AT THE T IME OF HEARING OF THE APPEAL. 2. NONE HAS APPEARED ON BEHALF OF THE ASSESSEE WHEN THIS APPEAL WAS TAKEN UP FOR HEARING THROUGH VIDEO CONFERENCE D ESPITE NOTICE AS WELL AS INVITE WAS SENT TO THE ASSESSEE AND HIS AUT HORIZED REPRESENTATIVE. WE FURTHER, NOTE THAT THE ASSESSMEN T AS WELL AS ITA NO. 134/JP/2019 SHRI POORAN SINGH VS. ITO 3 IMPUGNED ORDER PASSED BY THE LD. CIT(A) ARE ALSO EX -PARTE DUE TO THE NONE APPEARANCE OF THE ASSESSEE. ACCORDINGLY, WE PR OPOSE TO HEAR AND DISPOSE OFF OF THIS APPEAL EX-PARTE. 3. WE HAVE GONE THROUGH THE ORDER OF THE ASSESSING OFFICER AS WELL AS IMPUGNED ORDER OF THE LD. CIT(A) AND NOTICE THAT THE ASSESSING OFFICER HAS REOPENED THE ASSESSMENT ON THE BASIS OF INFORMATION ABOUT THE SALE OF SHARES BY THE ASSESSEE THROUGH BOMBAY S TOCK EXCHANGE OF RS. 5,38,800/-. SINCE THE ASSESSEE HAS NOT FILED AN Y RETURN OF INCOME U/S 139 OF THE IT ACT THEREFORE, THE AO ISSUED NOTI CE U/S 148 BY RECORDING THE REASONS THAT THE INCOME ARISING FROM SALE OF SHARES OF SBI THROUGH STOCK EXCHANGE HAS ESCAPED ASSESSMENT. THE ASSESSEE HAS NOT RESPONDED TO THE NOTICE ISSUED U/S 148, 142(1) AS W ELL AS SHOW CAUSE NOTICE U/S 144 OF THE ACT. CONSEQUENTLY, THE AO PAS SED THE ASSESSMENT ORDER U/S 144 R.W.S. 147 OF THE ACT. THE ASSESSEE C HALLENGED THE ACTION OF THE AO BEFORE THE LD. CIT(A) HOWEVER, THE APPEAL OF THE ASSESSEE WAS DISMISSED EX-PARTE DUE TO NON ATTENDED ON BEHAL F OF THE ASSESSEE. 4. THE LD. DR HAS VEHEMENTLY CONTENDED THAT THE ASS ESSEE HAS BEEN A CONSISTENT DEFAULTER OF NON APPEARANCE BEFORE THE AO AS WELL AS LD. CIT(A) AND EVEN BEFORE THIS TRIBUNAL THUS, THE LD. DR HAS SUBMITTED THAT THE APPEAL OF THE ASSESSEE DESERVES DISMISSED. ITA NO. 134/JP/2019 SHRI POORAN SINGH VS. ITO 4 5. IT IS MANIFEST FROM THE RECORD THAT THE AO REOPE NED THE ASSESSMENT TO ASSESS THE INCOME ARISING FROM SALE O F SHARES OF SBI OF RS. 5,38,800/-. SINCE, THE ASSESSEE HAS NOT RESPOND ED TO NOTICES ISSUED BY THE AO THEREFORE, THE ASSESSMENT ORDER FRAMED EX -PARTE HOWEVER, THE AO HAS MAKE ADDITION OF THE TOTAL SALE CONSIDER ATION OF SHARES INSTEAD OF THE PROFIT COMPONENT OF THE SALE CONSIDE RATION FOR WANT OF ANY DETAILS FROM THE ASSESSEE. THE SAID ADDITION OF THE AO WAS CONFIRMED BY THE LD. CIT(A) IN PARA 3.1 TO 3.3 AS U NDER:- 3.1 IN THIS CASE, NOTICES U/S 250 WAS ISSUED TO THE APPELLANT ON SEVERAL OCCASIONS FIXING THE HEARING ON 12-09-20 18 AND 28- 11-2018. NO ONE ATTENDED. OPPORTUNITY OF BEING HEAR D IS CENTRAL TO ANY ADJUDICATION PROCESS BUT THAT DOES N OT ABSOLVE THE APPELLANT FROM NON ATTENDANCE AND SUBMISSION OF EVIDENCES IN SUPPORT OF GROUND OF APPEAL DESPITE RE PEATED AND SEVERAL NOTICES SENT AND SERVED AND NOT RESPONDED. AN ADJUDICATION PROCEEDING CANNOT BE HELD IN ABEYANCE INDEFINITELY ON ACCOUNT OF NON ATTENDANCE OF THE AP PELLANT OR HIS AR. IN THIS CASE THE CONTINUED NON RESPONSIVE A TTITUDE OF THE APPELLANT HAS LEFT NO OPTION BEFORE ME BUT TO D ECIDE THE APPEAL ON THE BASIS OF EVIDENCES ON RECORD. 3.2 I HAVE TAKEN INTO CONSIDERATION THE FACTS OF TH E CASE FILED ALONG WITH FORM NO. 35. 3.3 IN ABSENCE OF ANY SUBMISSIONS BY THE APPELLANT IN SUPPORT OF ITS CLAIMS, I HAVE RELIED UPON THE FACTS MENTIONED IN THE ASSESSMENT ORDER. I HAVE ALSO TAKEN INTO ACCOUNT TH E FACT THAT THE ASSESSMENT WAS ALSO COMPLETED EX-PARTE AS THE A SSESSEE ITA NO. 134/JP/2019 SHRI POORAN SINGH VS. ITO 5 DID NOT ATTEND TO THE PROCEEDINGS. ACCORDINGLY, I D O NOT SEE ANY REASON TO INTERFERE IN THE ASSESSMENT ORDER SUS TAINING THE ADDITION OF RS.5,38,800/-. APPELLANT'S GROUND OF AP PEAL ON THE ISSUE IS DISMISSED. THUS, THE LD. CIT(A) HAS CONFIRMED THE ADDITION MAD E BY THE AO WITHOUT EVEN CONSIDERATION THE ELEMENT OF PROFIT/IN COME IN THE SALE PROCEEDS. ACCORDINGLY, IN THE FACTS AND CIRCUMSTANC ES OF THE CASE AND IN THE INTEREST OF JUSTICE, WE SET ASIDE THE MATTER TO THE RECORD OF THE LD. CIT(A) FOR GRANTING ONE MORE OPPORTUNITY OF HEARING TO THE ASSESSEE TO PRODUCE THE NECESSARY DETAILS OF TRANSACTIONS OF PU RCHASE SALE OF SHARES SO THAT THE CORRECT INCOME OF THE ASSESSEE CAN BE A SCERTAINED. AFTER CONSIDERING THE DETAILS IF ANY, FILED BY THE ASSESS EE THE LD. CIT(A) SHALL PASS FRESH AND SPEAKING ORDER. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOW ED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 02/09/2020 . SD/- SD/- FOE FLAG ;KNO FOT; IKY JKO (VIKRAM SINGH YADAV) (VIJAY PAL RAO) YS[KK LNL;@ ACCOUNTANT MEMBER U;KF;D LNL;@ JUDICIAL MEMBER TK;IQJ@ JAIPUR FNUKAD@ DATED:- 02/09/2020. * SANTOSH. VKNS'K DH IZFRFYFI VXZSFKR@ COPY OF THE ORDER FORWARDED TO: 1. VIHYKFKHZ@ THE APPELLANT- SHRI POORAN SINGH, DHOLPUR. ITA NO. 134/JP/2019 SHRI POORAN SINGH VS. ITO 6 2. IZR;FKHZ@ THE RESPONDENT- ITO, WARD-4, BHARATPUR. 3. VK;DJ VK;QDR@ CIT 4. VK;DJ VK;QDR@ CIT(A) 5. FOHKKXH; IZFRFUF/K] VK;DJ VIHYH; VF/KDJ.K] T;IQJ@ DR, ITAT, JAIPUR. 6. XKMZ QKBZY@ GUARD FILE {ITA NO. 134/JP/2019} VKNS'KKUQLKJ@ BY ORDER, LGK;D IATHDKJ@ ASST. REGISTRAR