Smt. Raj Batra, Chandigarh V. DCIT, International Taxation, Circle, Chandigarh

ITA 1366/CHANDI/2019

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 0639 (ITAT-CHANDIGARH)
• Duration Of Justice: 7 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-06-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2010-2011
• Appeal Filed On: 17-10-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DAYA INDER SINGH SIDHU A DDL
• Keywords: Opportunity of being heard; Principle of natural justice; Set aside
• Section: 69A; 147; 56; 144

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH, B,CHANDIGARH . . , , BEFORE SHRI N.K. SAINI, VICE PRESIDENT & SHRI SANJAY GARG, JUDICIAL MEMBER ./ ITA NO. 1366/CHD/2019 ! / ASSESSMENT YEAR : 2010-11 SMT. RAJ BATRA, HOUSE NO. 2348, SECTOR 23-C, CHANDIGARH '# THE DCIT, CIRCLE, CHANDIGARH $ % ./PAN NO: APNPB6371F $&/ APPELLANT ()$& /RESPONDENT HEARING THOUGH VIDEO CONFERENCING *+ , - /ASSESSEE BY : SHRI PARIKSHIT AGGARWAL, CA , - / REVENUE BY : SHRI DAYA INDER SINGH SIDHU, A DDL. CIT . / , +0% /DATE OF HEARING : 08.06.2020 12! , +0% / DATE OF PRONOUNCEMENT : 08.06.2020 / ORDER PER SANJAY GARG, JUDICIAL MEMBER: THE PRESENT APPEAL HAS BEEN PREFERRED BY THE ASSESS EE AGAINST THE ORDER DATED 23.08.2019 OF THE COMMISSIONER OF INCO ME TAX (APPEALS)- 43, NEW DELHI [HEREINAFTER REFERRED TO AS CIT(A) ] 2. THE ASSESSEE IN THIS APPEAL HAS TAKEN FOLLOWING GROUNDS OF APPEAL:- ITA NO. 1366-CHD-2019 SMT. RAJ BATRA, CHANDIGARH 2 1. THAT ON THE FACTS, CIRCUMSTANCES AND LEGAL POSIT ION OF THE CASE, THE WORTHY CIT(A) IN APPEAL NO. 10043/201 8-19 HAS ERRED IN PASSING THAT ORDER IN CONTRAVENTION OF THE PROVISIONS OF S. 250(6) OF THE INCOME TAX ACT, 1961. 2. THAT ON LAW, FACTS AND CIRCUMSTANCES OF THE CAS E, THE WORTHY CIT(A) HAS ERRED IN CONFIRMING THE ACTION OF LD. AO IN INITIATING, CONTINUING AND THEN CONCLUDING THE IMPU GNED ASSESSMENT U/S 144 R.W.S. 147 OF THE ACT AND THE WH OLE IMPUGNED ASSESSMENT DESERVES TO BE QUASHED. 3. THAT ON LAW, FACTS AND CIRCUMSTANCES OF THE CAS E, THE WORTHY CIT(A) HAS ERRED IN CONFIRMING THE ACTION OF LD. AO IN ASSUMING JURISDICTION OVER THE APPELLANT EVEN WHEN HE LACKED JURISDICTION AND THEREFORE THE WHOLE OF THE IMPUGNE D ASSESSMENT DESERVES TO BE QUASHED. 4. THAT ON LAW, FACTS AND CIRCUMSTANCES OF THE CAS E, THE WORTHY CIT(A) HAS ERRED IN CONFIRMING THE ACTION OF LD. AO IN MAKING ADDITION OF RS. 19,89,000/- BY TREATING THE CASH DEPOSITS IN THE BANK AS UNEXPLAINED MONEY U/S 69A E VEN WHEN SUCH DEPOSITS WERE OUT OF GENUINE AND EXPLAINED SOU RCES. 5. THAT ON LAW, FACTS AND CIRCUMSTANCES OF THE CAS E, THE WORTHY CIT(A) HAS ERRED IN CONFIRMING THE ACTION OF LD. AO IN MAKING ADDITION OF RS. 82,451/- ON ACCOUNT OF REDEM PTION OF MUTUAL FUNDS U/S 111A AS SHORT TERM CAPITAL GAIN. 6. THAT ON LAW, FACTS AND CIRCUMSTANCES OF THE CASE , THE WORTHY CIT(A) HAS ERRED IN CONFIRMING THE ACTION OF LD. AO IN MAKING ADDITION OF RS. 66,609/- ON ACCOUNT OF INTER EST RECEIVED FROM KOTAK MAHINDRA BANK U/S 56 AS OTHER SOURCES IN COME. 7. THAT ON FACTS, CIRCUMSTANCES AND LEGAL POSITION OF THE CASE, THE IMPUGNED ASSESSMENT ORDER PASSED BY THE LD. AO DESERVES TO BE QUASHED HAVING BEEN FRAMED IN HASTE AND WITHO UT AFFORDING REASONABLE OPPORTUNITY OF BEING HEARD. ITA NO. 1366-CHD-2019 SMT. RAJ BATRA, CHANDIGARH 3 8. THAT ON FACTS, CIRCUMSTANCES AND LEGAL POSITION OF THE CASE, THE IMPUGNED APPELLATE ORDER PASSED BY THE WORTHY C IT(A) DESERVES TO BE SET-ASIDE HAVING BEEN PASSED IN HAST E AND WITHOUT AFFORDING REASONABLE OPPORTUNITY OF BEING H EARD. 3. THE ASSESSEE IN IS A NON-RESIDENT INDIAN (NRI). THE MAIN GRIEVANCE OF THE ASSESSEE RELATES TO THE EX-PARTE O RDER PASSED BY THE CIT(A) STATING THAT THE SAME IS AGAINST THE PRINCIP LES OF NATURAL JUSTICE. 4. DURING THE COURSE OF HEARING THE LD. COUNSEL FOR THE ASSESSEE, AT THE VERY OUTSET, HAS STATED THAT NO NOTICES OF HEA RINGS FOR THE DATES FIXED WERE RECEIVED BY THE ASSESSEE, THEREFORE, THE CIT( A) WAS NOT JUSTIFIED IN PASSING THE EX-PARTE ORDER WITHOUT PROVIDING DUE AND REASONABLE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. THE LD. COUNSEL HAS FURTHER SUBMITTED THAT EVEN THE ASSESSMENT ORDER PASSED BY THE LD. DCIT (INTERNATIONAL TAXATION) WAS AN EX-PARTE ORDER. 5. IN HIS RIVAL SUBMISSIONS THE LD. DR ALTHOUGH SU PPORTED THE ORDERS OF THE LOWER AUTHORITIES BUT COULD NOT CONTROVERT THE AFORESAID CONTENTION OF THE LD. COUNSEL FOR THE ASSESSEE. 7. WE HAVE CONSIDERED THE SUBMISSIONS OF BOTH THE P ARTIES AND PERUSED THE MATERIAL AVAILABLE ON THE RECORD. IN T HE PRESENT CASE, IT IS AN ADMITTED FACT THAT THE LD. CIT(A) AS WELL AS ASSESS ING OFFICER PASSED THE IMPUGNED ORDERS EX-PARTE AND NOTHING IS BROUGHT ON RECORD TO SUBSTANTIATE THAT THE NOTICES FOR HEARING WERE SERV ED UPON THE ASSESSEE. IT IS WELL SETTLED THAT NOBODY SHOULD BE CONDEMNED, UNHEARD AS PER THE ITA NO. 1366-CHD-2019 SMT. RAJ BATRA, CHANDIGARH 4 MAXIM, AUDI ALTERAM PERTAM . WE, THEREFORE, BY KEEPING IN VIEW THE PRINCIPLES OF NATURAL JUSTICE DEEM IT APPROPRIATE T O SET ASIDE THIS CASE BACK TO THE FILE OF ASSESSING OFFICER TO BE ADJUDIC ATED AFRESH IN ACCORDANCE WITH LAW AFTER PROVIDING DUE AND REASONA BLE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. IN THE RESULT, THE APPEAL OF THE ASSESSEE STANDS AL LOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED ON 08.06.2020. SD/- SD/- ( . . / N.K. SAINI) ( ! ' / SANJAY GARG) #$% / VICE PRESIDENT &' / JUDICIAL MEMBER DATED : 08.06.2020 .. 3,(+45 65!+ / COPY OF THE ORDER FORWARDED TO : 1. $& / THE APPELLANT 2. ()$& / THE RESPONDENT 3. . 7+ / CIT 4. . 7+ ( )/ THE CIT(A) 5. 58(+9 , 09 , :;<= / DR, ITAT, CHANDIGARH 6. <>/ / GUARD FILE 3 . / BY ORDER, ? / ASSISTANT REGISTRAR