Smt. Uma Devi W/o L/H Shri Vipin Kumar, Mohali V. DCIT,Circle-6(1), Chandigarh

ITA 151/CHANDI/2020

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 0111 (ITAT-CHANDIGARH)
• Duration Of Justice: 10 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-12-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2011-2012
• Appeal Filed On: 07-02-2020
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ASHOK KHANNA CIT
• Assessee Lawyers: SHAILENDAR SHARMA
• Keywords: Opportunity of being heard
• Section: 69C; 69A

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL, CHANDIGARH BE NCH B CHANDIGARH !, ' # $ , $ % & ' ( ) , *+ # BEFORE: SMT. DIVA SINGH, JM & SMT.ANNAPURNA GUPTA, AM ./ ITA NO. 151/CHD/2020 / ASSESSMENT YEAR : 2011-12 SMT. UMA DEVI (WIFE), L/H SHRI VIPIN KUMAR, HOUSE NO. 293, WARD NO. 3, PREET NAGAR, GULABGARH ROAD, DERABASSI. VS THE DCIT, CIRCLE-6(1), CHANDIGARH. ./ PAN NO: AFTPK8594B / APPELLANT / RESPONDENT ! ' / ASSESSEE BY : SHRI SHAILENDAR SHARMA, ADVOCATE # ! ' / REVENUE BY : SHRI ASHOK KHANNA, ADDL. CIT $ % ! &/ DATE OF HEARING : 15.12.2020 '()* ! &/ D ATE OF PRONOUNCEMENT : 15.12.2020 *,/ ORDER PER ANNAPURNA GUPTA, ACCOUNTANT MEMBER: THE PRESENT APPEAL HAS BEEN PREFERRED BY THE ASSESS EE AGAINST THE ORDER DATED 19.11.2019 OF THE COMMISSIO NER OF INCOME TAX (APPEALS)-I, CHANDIGARH PERTAINING TO 20 11-12 ASSESSMENT YEAR. 2. THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS : 1. THAT ORDER PASSED U/S 250(6) OF THE INCOME TAX ACT, 1961 BY THE LD. COMMISSIONER OF INCOME TAX (APPEALS)-I, CHANDIGARH IS AGAINST LAW AND FACTS ON THE FILE IN AS MUCH AS HE WAS NOT JUSTIFIED TO ARBITRAR ILY DECIDE THE APPEAL WITHOUT GIVING PROPER OPPORTUNITY TO THE ASSESSEE. THE WIFE OF THE ASSESSEE COULD NOT PURSUE THE APPEAL AFTER THE DEATH OF HER HUSBAND ON 22.05.2019 2. THE LD. COMMISSIONER OF INCOME TAX (APPEALS)-I, CHANDIGARH FURTHER GRAVELY ERRED TO UPHOLD THE ACTION OF THE LD. ASSESSING OFF ICER IN DISALLOWING A SUM OF RS. 81,50,000.00/- U/S 69A OF THE INCOME TAX ACT, 1961 IN RESPECT OF ENTRIES APPEARING IN ITA 151/CHD/2020 A.Y.2011-12 PAGE 2 OF 3 THE ALLEGED CASH BOOK OF THE APPELLANT. THE SAID AD DITION BEING MADE ON THE BASIS OF STATEMENTS OF THIRD PARTIES RECORDED AT THE BACK OF THE ASSESSEE IS UNCALLED FOR AND DESERVES TO BE DELETED. 3. THAT THE LD. COMMISSIONER OF INCOME TAX (APPEAL S)-I, CHANDIGARH FURTHER GRAVELY ERRED TO UPHOLD THE ACTION OF THE LD. ASSESSING OFF ICER IN DISALLOWING A SUM OF RS. 1,52,20,000.00/- U/S 69C OF THE INCOME TAX ACT, 196 1 IN RESPECT OF TWO ALLEGED CASH PAYMENTS MADE TO TO M/S KUDOS CHEMI LIMITED OF RS 7 0,00,000.00/- AND RS 82,20,000.00/- .THE SAID ADDITION WAS MADE ON THE B ASIS OF STATEMENT OF THIRD PARTY. THE ADDITION MADE ON THE BASIS OF SURMISES AND CONJ ECTURES DESERVES TO BE DELETED. 3. TAKING UP GROUND NO.1, THE LD. COUNSEL FOR THE A SSESSEE CONTENDED THAT THE ORDER PASSED BY THE LD. CIT(A) W AS NOT JUSTIFIED HAVING BEEN PASSED WITHOUT GIVING ADEQUAT E OPPORTUNITY OF HEARING TO THE ASSESSEE.IT WAS CONTE NDED THAT THE ASSESSEE, SHRI VIPIN KUMAR, HAD EXPIRED DURING APPELLATE PROCEEDINGS ON 22.05.2019 AND HIS WIFE SMT. UMA DEV I WAS UNABLE TO PURSUE THE CASE THEREAFTER. IT WAS POIN TED OUT THAT THIS FACT HAD BEEN BROUGHT TO THE NOTICE OF THE LD. CIT(A) WHO HAD NOTED THE SAME IN HIS ORDER AT PARA 4 AND FURTH ER PASSED THE ORDER IN THE NAME OF THE LEGAL HEIR OF THE ASSE SSEE SMT. UMA DEVI. THE LD. COUNSEL FOR THE ASSESSEE, THEREF ORE, PLEADED THAT IN THE INTEREST OF JUSTICE, THE MATTER MAY BE RESTORED BACK TO THE CIT(A) TO AFFORD FULL OPPORTUNITY TO THE ASS ESSEE TO ARGUE THE CASE. 4. THE LD. DR FAIRLY AGREED TO THE SAME AND DID NOT OBJECT TO THE PLEA OF THE LD.COUNSEL FOR RESTORATION OF APPE AL TO THE LD.CIT(A). 5. IN VIEW OF THE ABOVE AND ON GOING THROUGH THE EN TIRE FACTS AND CIRCUMSTANCES AS BROUGHT OUT IN THE APPELLATE O RDER, WE ITA 151/CHD/2020 A.Y.2011-12 PAGE 3 OF 3 ARE IN AGREEMENT WITH THE LD.COUNSEL FOR THE ASSESS EE THAT THE ASSESSEE WAS DENIED A FAIR OPPORTUNITY OF HEARING I N THE PRESENT CASE, SINCE, AS IS EVIDENT FROM THE FACTS R EPRODUCED AT PARA 4 OF THE CIT(A) ORDER, AFTER THE LD.CIT(A) WAS INTIMATED OF THE DEMISE OF THE ASSESSEE ON 09-08-2019,ONLY TWO N OTICES WERE GIVEN,AND THE APPELLATE ORDER THEREAFTER PASSE D WITHIN A SHORT SPAN OF THREE MONTHS ON 19-11-2019. IN THE IN TEREST OF JUSTICE THEREFORE WE RESTORE THE MATTER BACK TO TH E LD. CIT(A) TO PASS ORDER AFRESH IN ACCORDANCE WITH LAW AFTER GIVING THE ASSESSEE A REASONABLE OPPORTUNITY OF BEING HEARD. THE ASSESSEE IS ALSO DIRECTED TO CO-OPERATE IN THE PROC EEDINGS AND NOT TO SEEK UNNECESSARY ADJOURNMENTS IN THE MATTER. 6. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED ON 15.12.2020. SD/- SD/- ( ! ) ( % & ' ( ) ) (DIVA SINGH) (ANN APURNA GUPTA) ' #/ JUDICIAL MEMBER *+ #/ ACCOUNTANT MEMBER + (, ! -. /. / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT - 2. / THE RESPONDENT - 3. $ 0 / CIT 4. $ 0 ()/ THE CIT(A) 5. .34 5, & 5, 7894:/ DR, ITAT, CHANDIGARH 6. 49 ;%/ GUARD FILE (, $ / BY ORDER, < #/ ASSISTANT REGISTRAR