Shri Tarlochan Singh Baidwan, Chandigarh V. ITO, W-5(5), Chandigarh

ITA 1377/CHANDI/2019

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 0305 (ITAT-CHANDIGARH)
• Duration Of Justice: 7 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-06-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2010-2011
• Appeal Filed On: 22-10-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Opportunity of being heard; Reasonable cause; Set aside

Judgement Text

, . , IN THE INCOME TAX APPELLATE TRIBUNAL, CHANDIGARH BENCH B CHANDIGARH , , , BEFORE: SMT. DIVA SINGH, JM & SMT.ANNAPURNA GUPTA, AM ./ ITA NO. 1377/CHD/2019 / ASSESSMENT YEAR : 2010-11 SHRI TARLOCHAN SINGH BAIDWAN, HOUSE NO. 1169, SECTOR-50, CHANDIGARH. VS THE ITO, WARD 5(5), CHANDIGARH. ./ PAN /TAN NO: AHHPB0358C / APPELLANT / RESPONDENT / ASSESSEE BY : SHRI PARIKSHIT AGGARWAL, CA / REVENUE BY : SHRI DAYA INDER SINGH SIDHU, ADDL. CIT / DATE OF HEARING : 1 5.06.2020 / DATE OF PRONOUNCEMENT : 16.06.2020 / ORDER PER DIVA SINGH THE PRESENT APPEAL HAS BEEN FILED BY THE ASSESSEE WHEREIN THE CORRECTNESS OF THE ORDER DATED 27.09.20 19 OF CIT(A)-2 CHANDIGARH PERTAINING TO 2010-11 ASSESSMEN T YEAR IS ASSAILED ON VARIOUS GROUNDS. HOWEVER, AT THE TI ME OF HEARING, THE LD. AR ADVANCED HIS ARGUMENTS IN RESPE CT OF GROUND NOS. 5 & 6 SEEKING A REMAND BACK TO THE AO. THE SPECIFIC GROUNDS RAISED READ AS UNDER : 5. THAT ON THE FACTS, LEGAL POSITION AND CIRCUM STANCES OF THE CASE, THE IMPUGNED ASSESSMENT ORDER PASSED BY THE LD. AO DESE RVES TO BE SET- ITA 1377 /CHD/2019 A.Y. 2010-11 PAGE 2 OF 4 ASIDE AS THE SAME WAS PASSED IN HASTE AND WITHOUT G RANTING REASONABLE OPPORTUNITY OF HEARD TO THE APPELLANT. 6. THAT ON THE FACTS, LEGAL POSITION AND CIRC UMSTANCES OF THE CASE, THE IMPUGNED EX-PARTE ORDER PASSED BY WORTHY CIT(A) DES ERVES TO BE SET- ASIDE AS REASONABLE OPPORTUNITY WAS NOT GRANTED TO THE APPELLANT AND FURTHER, THERE WAS REASONABLE CAUSE FOR NON-APPEARA NCE ON THE APPOINTED DATE WHICH RESULTED INTO PASSING OF IMPUGNED EX-PAR TE ORDER. 2. INVITING ATTENTION TO THE IMPUGNED ORDER, THE LD . AR SUBMITTED THAT THE ASSESSEE WAS REPRESENTED BEFORE THE CIT(A) BY THE LD. AR HIMSELF ON 02.07.2019 FOR THE VERY FIRST TIME AND ADJOURNMENTS WERE SOUGHT AS THE RELEVANT DOCUMENTS WITH THE CONCERNED COUNSEL REPRESENTING T HE ASSESSEE BEFORE THE AO COULD NOT BE OBTAINED. IT W AS HIS SUBMISSION THAT THE COUNSEL SERIOUSLY ILL INFACT UL TIMATELY PASSED AWAY. INVITING ATTENTION TO PAGE 5 PARA 6 O F THE IMPUGNED ORDER ITSELF, IT WAS HIS SUBMISSION THAT T HE LD. CIT(A) TAKES NOTE OF THE FACT THAT INFACT THE ASSES SEE HIMSELF APPEARED AND SOUGHT TIME ON THE GROUNDS THAT HIS CO UNSEL SHRI DEEPAK MANHAS SUFFERING FROM BRAIN STROKE COUL D NOT ASSIST OR MAKE THE DOCUMENTS AVAILABLE. THE RELEVA NT EXTRACT FROM HIS ORDER RELIED UPON IS REPRODUCED HE REUNDER FOR THE SAKE OF COMPLETENESS : 6...NO DETAILS, DOCUMENTS OR SUBMISSIONS HAVE BEEN PROVIDED TO COME TO ANY CONCLUSION OTHER THAN THOSE ARRIVED AT BY THE ASSESSING OFFICER IN THE ASSESSMENT ORDER . THE NOTICES HAVE BEEN DULY SERVED UPON THE ASSESSEE. TH E ASSESSEE HIMSELF APPEARED ON 03.06.2019 AND SOUGHT ADJOURNMENT FOR ONE MONTH ON ACCOUNT OF MEDICAL GRO UNDS THAT HIS COUNSEL I.E. SH. DEEPAK MANHAS HAS SUFFERE D FROM BRAIN STROKE AND UNABLE TO PROCESS HIS CASE. ITA 1377 /CHD/2019 A.Y. 2010-11 PAGE 3 OF 4 3. INVITING ATTENTION TO THE ASSESSMENT ORDER, IT W AS HIS SUBMISSION THAT INFACT EVEN BEFORE THE AO, THOUGH T HE COUNSEL INITIALLY APPEARED, HOWEVER, ON ACCOUNT OF HIS HEALTH REASONS FAILED TO MAKE EFFECTIVE REPRESENTATION ON BEHALF OF THE ASSESSEE. IN VIEW OF THESE FACTS, IT WAS HIS P RAYER THAT THE REMAND MAY BE MADE BACK TO THE FILE OF THE AO. 4. THE LD. CIT-DR SHRI D.I.S.SIDHU ON A PERUSAL OF THE RECORD STA5TED THAT HE HAD NO OBJECTION TO THE ASSE SSEE'S PRAYER FOR A REMAND BACK TO THE AO. 5. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. A PERUSAL OF THE REC ORD SHOWS THAT ADDITION WAS MADE TO THE ASSESSEE'S RETURNED I NCOME OF RS. 2,18,700/- BY AN AMOUNT OF RS. 57,63,300/- FOUN D DEPOSITED IN HIS BANK ACCOUNT WHICH THE ASSESSEE FA ILED TO EXPLAIN. ADDITION WAS CONFIRMED BEFORE THE CIT(A) AS ASSESSEE FAILED TO MAKE EFFECTIVE REPRESENTATION. IN THE LIGHT OF THE PRAYER OF THE PARTIES BEFORE THE BENCH, THE IMPUGNED ORDER IS SET ASIDE AND THE ISSUE IS RESTORED BACK T O THE FILE OF THE AO WITH THE DIRECTION TO PASS A SPEAKING ORDER IN ACCORDANCE WITH LAW AFTER GIVING THE ASSESSEE A REA SONABLE OPPORTUNITY OF BEING HEARD. THE ASSESSEE IN ITS OW N INTERESTS IS ADVISED TO ENSURE FULL AND PROPER COMP LIANCE AND ITA 1377 /CHD/2019 A.Y. 2010-11 PAGE 4 OF 4 NOT ABUSE THE TRUST REPOSED. SAID ORDER WAS PRONOU NCED IN THE OPEN COURT AT THE TIME OF HEARING ITSELF. 6. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOW ED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 16 TH JUNE,2020. SD/- SD/- ( ) ( ) (ANNAPURNA GUPTA) (DIVA SINGH) / ACCOUNTANT MEMBER / JUDICIAL MEMBER POONAM / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT 3. / CIT 4. ( )/ THE CIT(A) 5. , , / DR, ITAT, CHANDIGARH 6. / GUARD FILE / BY ORDER, / ASSISTANT REGISTRAR