Appeal details
Counselvise Citation
[2024] 100 COUNSELVISE.COM (IT) 0150 (ITAT-CHANDIGARH)
Assessee PAN
Bench
Appeal Number
Duration Of Justice
5 month(s) 28 day(s)
Appellant
Respondent
Appeal Type
Income Tax Appeal
Pronouncement Date
12-08-2024
Appeal Filed By
Assessee
Order Result
Allowed
Bench Allotted
A
Next Hearing Date
07-08-2024
Assessment Year
2017-2018
Appeal Filed On
15-02-2024
Judgement Text
आयकर अपीलȣय अͬधकरण,चÖडीगढ़ Ûयायपीठ, चÖडीगढ़ IN THE INCOME TAX APPELLATE TRIBUNAL CHANDIGARH BENCH, ‘A’, CHANDIGARH BEFORE SHRI A.D. JAIN, VICE PRESIDENT & DR KRINWANT SAHAY, ACCOUNTANT MEMBER आयकर अपील सं./ ITA No. 147/CHD/2024 Ǔनधा[रण वष[ / Assessment Year : 2017-18 Kohli Garments, Subhash Bazar, Khanna 141401 Vs. बनाम The ACIT, Circle Khanna, Punjab èथायी लेखा सं./PAN No: AALFK0898F अपीलाथȸ/ APPELLANT Ĥ×यथȸ/ REPSONDENT ( Physical Hearing ) Ǔनधा[ǐरती कȧ ओर से/Assessee by : Sh. Jaspal Sharma, Advocate राजèव कȧ ओर से/ Revenue by : Shri Vivek Vardhan, JCIT स ु नवाई कȧ तारȣख/Date of Hearing : 08.08.2024 उदघोषणा कȧ तारȣख/Date of Pronouncement : 13.08.2024 आदेश/Order Per Dr. Krinwant Sahay, A.M.: The appeal in this case has been filed by the Assessee against the order dated 21.12.2023 of the ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi. 2. Grounds of appeal taken by the Assessee are as under: - 1. The impugned order is both against facts and erroneous in law. 147-Chd-2024 – Kohli Garments, Khanna 2 2. On the facts and circumstances of the case, the Ld. CIT(Appeals) NFAC, Delhi, has erred in having dismissed the assessee's appeal ex-parte without having afforded reasonable opportunity of being heard and thus the impugned order is against principle of natural justice. 3. On the facts and circumstances of the case, the Ld. CIT(Appeals) NFAC, Delhi has erred in having confirmed the assessment order calculating tax @ 60% on the amount of Rs.75 lacs surrendered by the assessee during the course of survey conducted u/s 133A, by applying provisions of section 115BBE of the Income Tax Act. 4. On the facts and circumstances of the case, the Ld. CIT(Appeals)NFAC, Delhi has erred in having confirmed the assessment order treating the amount of Rs.9,50,000/- on account of excess cash, surrendered during the course of survey, as unexplained cash u/s 69A of the Income Tax Act and assessing to tax u/s 115BBE of the Act. 5. On the facts and circumstances of the case, the Ld. CIT(Appeals)NFAC, Delhi has erred in having confirmed the assessment order treating the amount of Rs.44,98,000/- on account of excess stock, surrendered during the course of survey, as unexplained investment in stock u/s 69B of the Income Tax Act and assessing to tax u/s 115BBE of the Act. 6. On the facts and circumstances of the case, the ld. CIT(A) (Appeals) NFAC, Delhi has erred in having confirmed the assessment order treating the amount of Rs. 10,02,000/- shown as Sundry Debtors under the head "Current Assets" in Balance Sheet, surrendered during the course of survey, as unexplained investment u/s 69B of the Income Tax Act and assessing to tax u/s 115BBE of the Act. 7. On the facts and circumstances of the case, the Ld. CIT (Appeals) NFAC, Delhi has erred in 147-Chd-2024 – Kohli Garments, Khanna 3 having confirmed the assessment order treating the amount of Rs. 10,50,000/- on account of expenditure incurred on Building and Furniture and Fixture, surrendered during the course of survey, as unexplained investment u/s 69B of the Income Tax Act and assessing to tax u/s 115BBE of the Act. 8. On the facts and circumstances of the case, the Ld. CIT(Appeals)NFAC, Delhi has erred in holding that amendment on 15.12.2016 to the Finance Bill,2016 was applicable for assessment year 2017-18.” 3. At the very outset, the ld. Counsel for the Assessee submitted that it is an ex-parte order passed by the ld. CIT(A). The ld. Counsel submitted a letter dated 8.8.2024 in this regard, the relevant contents of which is as under: “BEFORE THE HON'BLE INCOME TAX APPELLATE TRIBUNAL CHANDIGARH BENCH-A M/s Kohli Garments Khanna (PAN: AALFK0898F) Vs. Asstt. Commissioner of Income Tax Circle, Khanna ITA NO.147/Chandi/2024 (Assessment year 2017-18), Hon'ble Members, “In this behalf it is respectfully submitted that the present appeal has been filed by the assessee against the ex- parte order dated 21.12.2023 passed by the Ld. Commissioner of Income Tax, NFAC, Delhi. It is further humbly submitted that it has been confirmed by the assessee that no notice of hearing was served upon the 147-Chd-2024 – Kohli Garments, Khanna 4 assessee either physically or through E-mail ID: raieshshahi2003@rediffmail.com as mentioned in column no.17 of Form 35, by the Ld.CIT(Appeals) NFAC, Delhi, before passing the impugned ex-parte order dated 21.12.2023. It has been further confirmed by the assessee that none of notices of hearing as mentioned in para 4 at page 3 of the appellate order dated 21.12.2023, were served upon the assessee. A confirmation from the assessee, is attached herewith. Therefore the impugned ex-parte order is against principle of natural justice as no opportunity of hearing was provided to the assessee. It is, therefore, prayed that the present appeal may kindly be set aside and be sent back to the file of the first appellate authority for fresh adjudication on merits after affording reasonable opportunity of hearing to the assessee. I shall feel highly obliged. Yours faithfully, Counsel of the Assessee, (Sd/-) Dated 08.08.2024 Jaspal Sharma Advocate” 4. The ld. DR relied on the order of the CIT(A). 5. We have considered the CIT(A)’s Order and written submissions filed by the ld. Counsel as well as oral arguments made by the Counsel of the Assessee during the proceedings before us. We find that as per the Counsel of the Assessee, the Assessee has not received any notice of hearing of the appeal from the CIT(A). The ld. CIT(A) has also not passed the order of merit. Rather, he has dismissed his 147-Chd-2024 – Kohli Garments, Khanna 5 appeal ex-parte because of the non-compliance of the Assessee. Accordingly, in view of the above, in the interest of justice, the matter is remitted to the file of the CIT(A), to be decided afresh on merit, in accordance with law, on affording due and adequate opportunity of hearing to the Assessee. The Assessee, no doubt, shall cooperate in the fresh proceedings before the CIT(A). All pleas available under the law shall remain so available to the assessee. Ordered accordingly. 6. In the result, the appeal of the Assessee is allowed for statistical purposes. Order pronounced on 13.08.2024. Sd/- Sd/- ( A.D. JAIN ) (DR KRINWANT SAHAY) Vice President Accountant Member “आर.के.” आदेश कȧ ĤǓतͧलͪप अĒेͪषत / Copy of the order forwarded to : 1. अपीलाथȸ/ The Appellant 2. Ĥ×यथȸ/ The Respondent 3. आयकर आय ु Èत/ CIT 4. ͪवभागीय ĤǓतǓनͬध, आयकर अपीलȣय आͬधकरण, चÖडीगढ़/ DR, ITAT, CHANDIGARH 5. गाड[ फाईल/ Guard File आदेशान ु सार/ By order, सहायक पंजीकार/ Assistant Registrar
