Sadhna Goyal, New Delhi V. DCIT, Central Circle-14, New Delhi

ITA 1479/DEL/2022

AI Insights

The case involves an appeal by Sadhna Goyal against the order of the CIT(A)-26, New Delhi, which confirmed additions made by the Assessing Officer (AO) to her income for the assessment year 2017-18. The additions included unexplained income and jewellery found during a search. The CIT(A) had dismissed the appeal without adjudicating on merits due to the assessee's failure to attend hearings. The Tribunal found this approach to be in violation of the principles of natural justice and remanded the case for a fresh decision on merits, allowing the assessee another opportunity to present her case.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 131647 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-06-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: G
• Next Hearing Date: 02-04-2023
• Assessment Year: 2017-2018
• Appeal Filed On: 23-06-2022
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 68

Judgement Text

THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘G’, NEW DELHI Before Dr. B. R. R. Kumar, Accountant Member Ms. Astha Chandra, Judicial Member ITA No. 1479/Del/2022 : Asstt. Year: 2017-18 Sadhna Goyal, ED 9C, Pitampura Madhuban Chowk, New Delhi-110034 Vs. DCIT, Central Circle-14, New Delhi (APPELLANT) (RESPONDENT) PAN No. AAMPG5885B Assessee by : Sh. Uma Upadhyay, CA Revenue by : Sh. H. K. Choudhary, CIT DR Date of Hearing: 03.04.2023 Date of Pronouncement: 30.06.2023 ORDER Per Dr. B. R. R. Kumar, Accountant Member: The present appeal has been filed by the assessee against the order of ld. CIT(A)-26, New Delhi dated 09.06.2022. 2. The assessee has raised the following grounds of appeal: “1. On the facts and circumstances of the case, the order passed by the learned Commissioner of Income Tax (Appeals) [CIT(A)] is bad both in the eye of law and on facts. 2. On the facts and circumstances of the case, the order passed by the learned CIT(A) is bad in law having been passed ex-parte without giving the assessee an appropriate and adequate opportunity of being heard in clear violation of the principles of natural justice. 3. On the facts and circumstance of the case the order passed by the learned CIT(A) is bad both in the eyes ITA No. 1479/Del/2022 Sadhana Goyal 2 of law and on facts as the same has been passed without giving any finding on the merits of the case. 4. On the facts and circumstances of the case, the learned CIT(A) has erred both on facts and in law in confirming the addition of Rs.1,01,05,696/- made by the AO as against the income of Rs.4,12,090/- declared by the assessee. 5(i) On the facts and circumstances of the case, the learned CIT(A) has erred both on facts and in law in confirming the addition of Rs. 9,32,448/- on account of jewellery found during the course of search. (ii) That the said addition has been confirmed rejecting the explanation and evidences brought on records by the assessee in support of its contention. (iii) On the facts and circumstances of the case, the learned CIT(A) has erred both on facts and in law in confirming the addition without giving effect to the CBDT Instruction No.1916 dated 11th April, 1994. 6(i) On the facts and circumstances of the case, the learned CIT(A) has erred, both on facts and in law, in confirming the addition of an amount of Rs. 91,73,248/- under Section 68 of the Act, on account of credits appearing in the bank account of the assessee. (ii) That the said addition has been confirmed by the learned CIT(A) despite the fact that the credits appearing in the bank account of the assessee are from explained sources, which in no case can be added to the income of the assessee.” 3. On going through the record, we find that the ld. CIT(A) has summarily confirmed the order of the Assessing Officer and dismissed the appeal of the assessee without adjudicating the issue on merits owing to the failure of the assessee to attend the hearings. It was pleaded that given an opportunity, the assessee would comply to the notices issued by the revenue. We find that no prejudice would be caused to the revenue, if an ITA No. 1479/Del/2022 Sadhana Goyal 3 opportunity is given to the assessee to file her submissions. Hence, the matter is being remanded to the file of the ld. CIT(A) to adjudicate the issue on merits. The department would be at liberty to initiate proceedings in accordance with the provisions of Income Tax Act for non-compliance to the notices, if any. 4. In the result, the appeal of the assessee is allowed for statistical purposes. Order Pronounced in the Open Court on 30/06/2023. Sd/- Sd/- (Astha Chandra) (Dr. B. R. R. Kumar) Judicial Member Accountant Member Dated: 30/06/2023 *Subodh Kumar, Sr. PS* Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR