Amarjeet Singh Dahiya, New Delhi V. ITO, New Delhi

ITA 148/DEL/2010

• Counselvise Citation: [2011] 135 COUNSELVISE.COM (IT) 0376 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 1 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-02-2011
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 08-02-2011
• Assessment Year: 2005-2006
• Appeal Filed On: 11-01-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ANUSHA KHURANA
• Assessee Lawyers: RAKESH NAUTIYAL
• Keywords: Set aside

Judgement Text

I.T.A. NO.148 /DEL/10 1/4 IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH A NEW DELHI) BEFORE SHRI I.P. BANSAL, JUDICIAL MEMBER AND SHRI A.K. GARODIA, ACCOUNTANT MEMBER I.T.A. NO.148 /DEL/2010 ASSESSMENT YEAR : 2005-06 SHRI AMARJEET SINGH DAHIYA, ITO, C/O RAKESH NAUTIYAL, ADVOCATE, WARD-21 (3), CHAMBER NO.939-940, NEW DELHI. PATIALA HOUSE, NEW DELHI. V. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI RAKESH NAUTIYAL. RESPONDENT BY : MS. ANUSHA KHURANA, SR. DR. ORDER PER A.K. GARODIA, AM: THIS IS AN ASSESSEE'S APPEAL FILED AGAINST THE ORDER OF LD CIT(A)- XXII, NEW DELHI DATED 16.10.2009 FOR ASSESSMENT YEAR 20 05-06. 2. GROUNDS RAISED BY THE ASSESSEE ARE AS UNDER:- 1. THAT THE LD CIT(A) HAS GROSSLY ERRED BY NOT DELETING T HE ENTIRE ADDITIONS MADE BY THE ASSESSING OFFICER. 2. THAT THE LD CIT(A) HAS FURTHER ERRED BY CONFIRMING T HE ADDITION OF `.20,57,284/- TO THE INCOME OF THE APPELLANT. 3. THAT THE LD CIT(A) HAS ERRED BY ADOPTING THE DEPOSIT S OF `.17,53,150/- BY THE APPELLANT IN HIS PASS BOOK. . I.T.A. NO.148/DEL/10 2/4 4. THAT THE LD CIT(A) HAS FURTHER ERRED NOT TAKING INTO CONSIDERATION TO RECIPROCAL WITHDRAWALS MADE BY THE ASSESSEE FROM HIS B ANK ACCOUNT. 5. THAT THE LD CIT(A) HAS FURTHER ERRED BY DISCARDING TH E DOCUMENTS FILED BY THE APPELLANT TO SUBSTANTIATE HIS CASE. 6. THAT THE LD CIT(A) HAS FURTHER ERRED BY ACCEPTING TH E DEPOSITS MADE BY THE APPELLANT IN HIS PASS BOOK CONTRARY TO THE LAW ESTABLISHED BY THE HON'BLE HIGH COURT OF BOMBAY IN CI T, POONA V. BHAICHAND H. GANDHI, 141 ITR 67 (BOM.). 7. THAT THE LD CIT(A) HAS FURTHER ERRED BY ACCEPTING TH E VERSION OF ASSESSING OFFICER ABOUT THE CAR PURCHASED BY THE APPELLA NT ON THE HIRE PURCHASE BASIS AS THE PART OF THE INCOME OF TH E ASSESSEE FOR THE YEAR UNDER CONSIDERATION. 8. THAT THE LD CIT(A) GROSSLY ERRED BY ISSUING NOTICE U/S 1 43(3) AND FRAMING ASSESSMENT UNDER THIS SECTION. THE ASSESSING AUTHORI TY CROSSED HIS JURISDICTION WHILE FRAMING THIS ASSESSMENT. 3. IT IS SUBMITTED BY THE LD AR OF THE ASSESSEE BEFORE U S THAT THE ASSESSEE IS ENGAGED IN THE BUSINESS OF PURCHASE AND SALE OF OLD VEHICLES AND THE CASH DEPOSITED BY HIM IN HIS BANK ACCO UNT IS IN THE COURSE OF BUSINESS WHEREAS THE ASSESSING OFFICER HAS MADE AD DITION OF THE ENTIRE CASH DEPOSIT BY THE ASSESSEE IN THIS YEAR. REGA RDING THE ADDITION MADE BY THE ASSESSING OFFICER ON ACCOUNT OF ON E CAR WHICH WAS PURCHASED BY THE ASSESSEE FOR HIS OWN USE, IT WAS SUBMIT TED THAT THIS CAR WAS ALSO FINANCED BY HDFC BANK. IT IS SUBMITTED THAT UNFORTUNATELY, THE AR OF THE ASSESSEE COULD NOT PRESENT THE CASE OF THE ASSESSEE PROPERLY BEFORE THE AUTHORITIES BELOW. IT IS REQ UESTED BY HIM THAT CONSIDERING THIS FACT THAT THE ASSESSEE COULD NOT PR ESENT HIS CASE PROPERLY BEFORE THE AUTHORITIES BELOW, ONE MORE OPPO RTUNITY SHOULD BE PROVIDED TO THE ASSESSEE FOR PROPER REPRESENTATION AND IF THE ASSESSEE IS NOT ALLOWED TO PRESENT HIS CASE PROPERLY BY ADDUCIN G ADDITIONAL . I.T.A. NO.148/DEL/10 3/4 EVIDENCE THEN IT WILL BE GREAT BURDEN ON THE ASSESSEE A ND THEREFORE, IN THE INTEREST OF JUSTICE, THE MATTER MAY BE RESTORED BA CK TO THE FILE OF THE ASSESSING OFFICER FOR A FRESH DECISION. IT WAS UNDERT AKEN BY HIM THAT IF THE MATTER IS RESTORED BACK TO THE FILE OF T HE ASSESSING OFFICER, THE ASSESSEE WILL MAKE PROPER COMPLIANCE BEFORE THE ASSESSI NG OFFICER AND PRODUCE ALL NECESSARY DOCUMENTS BEFORE HIM TO EXP LAIN HIS CASE. LD DR OF THE REVENUE SUPPORTED THE ORDERS OF THE AUTH ORITIES BELOW. 4. WE HAVE HEARD THE RIVAL SUBMISSIONS AND HAVE GONE TH ROUGH THE MATERIAL AVAILABLE ON RECORD. WE FIND THAT SEVERAL O PPORTUNITIES WERE PROVIDED BY THE AUTHORITIES BELOW BUT THERE WAS NO PR OPER COMPLIANCE BY THE ASSESSEE BEFORE THEM. NOW, LD AR OF THE ASSESSEE HA S UNDERTAKEN BEFORE US THAT IF THE MATTER IS RESTORED BA CK TO THE FILE OF THE ASSESSING OFFICER, THE ASSESSEE WILL MAKE PROPER COMPLI ANCE AND PRODUCE ALL NECESSARY DOCUMENTS BEFORE THE ASSESSING OFFI CER. WE FEEL THAT ALTHOUGH THE ASSESSEE WAS NEGLIGENT BUT IF FOR THE NEGLIGENCE OF THE ASSESSEE, SUCH A HIGH TAX BURDEN IS IMPOSED ON HIM, IT WILL BE DISPROPORTIONATE TO THE NEGLIGENCE OF THE ASSESSEE. CONSI DERING THIS FACT THAT THE ASSESSEE IS NOT VERY MUCH AWARE ABOUT THE INCOME TAX MATTERS AND IN THE INTEREST OF JUSTICE, WE FEEL THAT NO PREJUDICE WILL BE CAUSED TO THE REVENUE IF ONE MORE OPPORTUNITY IS PROV IDED TO THE ASSESSEE AND HENCE, WE SET ASIDE THE ORDER OF THE LD CIT( A) AND RESTORE THE ENTIRE MATTER BACK TO THE FILE OF THE ASSE SSING OFFICER FOR FRAMING DE NOVO ASSESSMENT AFTER ALLOWING REASONABLE OP PORTUNITY OF BEING HEARD TO THE ASSESSEE. WE WANT TO MAKE IT CLEAR THAT THE BURDEN IS ON THE ASSESSEE TO PRODUCE ALL NECESSARY DOCUMENTS AND E VIDENCES BEFORE THE ASSESSING OFFICER. THE ASSESSING OFFICER SHOULD PASS NECESSARY ORDER AS PER LAW AFTER PROVIDING ADEQUATE O PPORTUNITY OF BEING HEARD TO THE ASSESSEE. . I.T.A. NO.148/DEL/10 4/4 5. IN VIEW OF OUR DECISION, AS PER ABOVE PARA, THE GR OUNDS RAISED BY THE ASSESSEE ON MERIT OF VARIOUS ADDITIONS, DO NOT CALL F OR ANY ADJUDICATION AT THIS STAGE BECAUSE WE HAVE RESTORED THE MATTER BACK TO THE FILE OF THE ASSESSING OFFICER FOR A DE NOVO ASSESSMENT . 6. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE STAND S ALLOWED FOR STATISTICAL PURPOSES IN THE TERMS AS INDICATED ABOVE. 7. ORDER PRONOUNCED IN THE OPEN COURT ON THE DAY 11 TH FEBRUARY, 2011. SD/- SD/- (I.P. BANSAL) (A.K. GAROD IA) JUDICIAL MEMBER ACCOUNTANT MEMBER DT. 11.2.2011. HMS COPY FORWARDED TO:- 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT 4. THE CIT (A)-, NEW DELHI. 5. THE DR, ITAT, LOKNAYAK BHAWAN, KHAN MARKET, NEW DEL HI. TRUE COPY. BY ORDER (ITAT, NEW DELHI).