Naveen Kumar Gupta, New Delhi V. ITO WARD - 34(2), New Delhi

ITA 1554/DEL/2020

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 4472 (ITAT-DELHI)
• Duration Of Justice: 8 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-05-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2011-2012
• Appeal Filed On: 08-09-2020
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: ASHOK KUMAR TANEJA
• Keywords: Income from undisclosed sources; Principle of natural justice
• Section: 271(1)(c); 147; 148

Judgement Text

IN TH E INCOME TAX APPELLATE TRIBUNAL DELHI BENCH : SMC - 1 : NEW DELHI (THROUGH VIRTUAL HEARING) BEFORE SHRI R. K. PANDA, ACCOUNTANT MEMBER ITA NO . 1554 /DEL/20 20 ASSESSMENT YEAR : 20 1 1 - 12 NAVEEN KUMAR GUPTA, BA - 97, SHALIMAR BAGH, N EW D ELHI. PAN: A KGPG8731Q VS ITO, WARD - 34(2), NEW DELHI. (APP ELL A NT ) (RESPONDENT) A SSESSEE BY : SHRI ASHOK KUMAR TANEJA, ADVOCATE RE VENUE BY : SHRI R.K. GUPTA, S R. DR DATE OF HEARING : 20 . 0 5 . 20 2 1 DATE OF PRONOUNCEMENT : 20 . 0 5 . 20 2 1 ORDER TH IS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAINST THE EX PARTE ORDER DATED 2 7.11.2019 OF THE CIT(A) - 1 2 , NEW DELHI, RELATING TO ASSESSMENT YEAR 20 1 1 - 12 . 2. THE GROUNDS RAISED BY THE ASSESSEE ARE AS UNDER: - 1. THAT THE LD. CIT(A) HAS DISMIS SED THE APPEAL WITHOUT AFFORDING PROPER OPPORTUNITY TO THE ASSESSES. THAT THE ASSESSES HAS NOT RECEIVED ANY NOTICE BY POST OR BY HAND. 2. THAT THE LD. CIT(A) HAS GROSSLY ERRED BOTH IN LAW AND ON FACTS AND CIRCUMSTANCES OF THE CASE BY NOT APPRECIATING THAT THE RECEIPT OF SALES CONSIDERATION FOR SALE OF RURAL AGRICULTURAL LAND IS IN THE CAPITAL DOMAIN AND NOT A REVENUE RECEIPT. 3. THAT THE LD. CIT(A) HAS GROSSLY ERRED IN LAW AND ON FACTS AND CIRCUMSTANCES OF THE CASE BY NOT APPRECIATING THE SALE AGREEMENT OF LAND ITA NO. 1554 /DEL/20 20 2 DISCLOSING ALL FACTS ABOUT BUYER, SELLER, PROPERTY DESCRIPTION AND LOCATION AND CONSIDERATION WERE PUT ON RECORD. 4. THAT THE LD. CIT(A) HAS ERRED IN LAW, FACTS AND CIRCUMSTANCES OF THE CASE THE PENALTY PROCEEDINGS U/S 271(1)(C) AND U/S 271F ON WH OLLY ILLEGAL AND UNTENABLE GROUNDS. 5. THAT LD . CIT(A) HAS PASSED ORDER WITHOUT SERVING ANY STATUTORY NOTICE IS BAD IN LAW AND AGAINST THE PRINCIPAL OF NATURAL JUSTICE AND SHOULD BE QUASHED AB - INITIO. 6. ASSESSEE HAS EVERY RIGHT TO MAKE, ADD, DELETE, M ODIFY OR ALTER ANY GROUND OF APPEAL AT THE TIME OF HEARING. 3 . FACTS OF THE CASE, IN BRIEF, ARE THAT THE ASSESSEE IS AN INDIVIDUAL. IN THIS CASE, NMS INFORMATION WAS RECEIVED THAT THE ASSESSEE DURING THE F.Y. 2010 - 11 RELEVANT TO A.Y. 2011 - 12 HAD DEPOSIT ED CASH OF RS.22,50,000/ - IN HIS SAVINGS BANK ACCOUNT MAINTAINED WITH IDBI BANK. FURTHER, THE ASSESSEE HAD MADE TRANSACTION IN MULTI COMMODITY EXCHANGE TO THE TUNE OF RS.1,16,06,11,460/ - . AS NO RETURN WAS FILED FOR THE A.Y. 2011 - 12, THE SOURCE OF CASH AN D TRANSACTION AT MULTI COMMODITY COULD NOT BE VERIFIED. AFTER RECORDING REASONS UNDER THE PROVISIONS OF SECTION 147 OF THE ACT, THE AO ISSUED NOTICE U/S 148 OF THE ACT DATED 30 TH MARCH, 2018. THE ASSESSEE, IN RESPONSE TO THE SAME, FILED ITS RETURN OF INCO ME ON 17 TH DECEMBER, 2018, DECLARING THE TOTAL INCOME AT RS.1,72,634/ - . THE AO COMPLETED THE ASSESSMENT DETERMINING THE TOTAL INCOME OF THE ASSESSEE AT RS.24,22,634/ - WHEREIN HE MADE AN ADDITION OF RS.22,50,000/ - BEING UNEXPLAINED CASH DEPOSITED IN HIS BA NK ACCOUNT AS UNEXPLAINED INCOME FROM UNDISCLOSED SOURCES. SINCE THE ASSESSEE DID NOT APPEAR BEFORE THE CIT(A) DESPITE THREE NOTICES ISSUED BY HIM, THE LD.CIT(A), IN HIS EX PARTE ORDER, DISMISSED THE APPEAL FILED BY THE ASSESSEE. ITA NO. 1554 /DEL/20 20 3 4. AGGRIEVED WITH SUCH O RDER OF THE CIT(A), THE ASSESSEE IS IN APPEAL BEFORE THE TRIBUNAL. 5. THE LD. COUNSEL, AT THE OUTSET, SUBMITTED THAT DUE TO NON - RECEIPT OF NOTICE, THE ASSESSEE COULD NOT APPEAR BEFORE THE CIT(A). HE SUBMITTED THAT IN THE INTEREST OF JUSTICE, THE ASSESSEE SHOULD BE GIVEN AN OPPORTUNITY TO SUBSTANTIATE HIS CASE BEFORE THE CIT(A). IN ABSENCE OF ANY OBJECTION FROM THE SIDE OF THE LD. DR AND CONSIDERING THE TOTALITY OF THE FACTS OF THE CASE AND IN THE INTEREST OF JUSTICE, I DEEM IT PROPER TO RESTORE THE ISSUE TO THE FILE OF THE LD. CIT(A) WITH A DIRECTION TO GRANT ONE FINAL OPPORTUNITY TO THE ASSESSEE TO EXPLAIN HIS CASE AND DECIDE THE ISSUE AS PER FACT AND LAW. THE ASSESSEE IS ALSO HEREBY DIRECTED TO APPEAR BEFORE THE CIT(A) AND EXPLAIN HIS CASE, FAILING WHIC H THE LD.CIT(A) IS AT LIBERTY TO PASS APPROPRIATE ORDER AS PER LAW. I HOLD AND DIRECT ACCORDINGLY. THE GROUNDS RAISED BY THE ASSESSEE ARE ACCORDINGLY ALLOWED FOR STATISTICAL PURPOSES. 6 . IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED F OR STATISTICAL PURPOSES. THE DECISION WAS PRONOUNCED IN THE OPEN COURT AT THE TIME OF HEARING ITSELF I.E., ON 20 . 0 5 .20 21 . SD / - ( R. K. PANDA ) ACCOUNTANT MEMBER DATED: 20 TH MAY, 2021. ITA NO. 1554 /DEL/20 20 4 DK COPY FORWARDED TO : 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR ASSTT. REGISTRAR, ITAT, NEW DELHI