Smt. Divya Narula, Panchkula V. ITO, W-1, Panchkula

ITA 1596/CHANDI/2018

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 1512 (ITAT-CHANDIGARH)
• Duration Of Justice: 5 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-06-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2015-2016
• Appeal Filed On: 21-12-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MODIT SRIVASTAVA
• Keywords: Principle of natural justice; TDS

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH, SMC, CHANDIGARH , BEFORE SHRI SANJAY GARG, JUDICIAL MEMBER ./ ITA NO. 1596/CHD/2018 / ASSESSMENT YEAR : 2015-16 SMT. DIVYA NARULA HOUSE NO. 148, SECTOR 16, PANCHKULA VS. THE ITO, WARD-1, PANCHKULA ./PAN NO: AIHPN4574F / APPELLANT /RESPONDENT ! /ASSESSEE BY : NONE ' ! / REVENUE BY : SH. MODIT SRIVASTAVA, SR. DR # $ % /DATE OF HEARING : 10.06.2019 &'() % / DATE OF PRONOUNCEMENT : 10 .06.2019 / ORDER THE PRESENT APPEAL HAS BEEN PREFERRED BY THE ASSESS EE AGAINST THE ORDER DATED 03.10.2018 OF THE COMMISSIONER OF INCOM E TAX (APPEALS), PANCHKULA [HEREINAFTER REFERRED TO AS CIT(A)]. 2. THE ASSESSEE IN THIS APPEAL HAS TAKEN FOLLOWING GROUNDS OF APPEAL:- 1. THAT THE LEARNED COMMISSIONER OF INCOME TAX (APPEAL S) HAS FAILED TO APPRECIATE THE MATERIALS ON THE RECORD AN D FACTS OF THE CASE. 2. THAT THE ORDER OF LEARNED COMMISSIONER OF INCOME TA X (APPEALS) IS ERRONEOUS, ARBITRARY, OPPOSED TO LAW A ND FACTS OF THE CASE AND IS, THUS UNTENABLE. 3. THAT THE FACTS AND CIRCUMSTANCES OF THE CASE AND LA W, THE ITA NO. 1596-CHD-2018- SMT. DIVYA NARULA, PANCHKULA 2 LEARNED COMMISSIONER OF INCOME TAX (APPEALS) HAS FU RTHER ERRED IN PASSING A NON-SPEAKING ORDER OF THE PRINCI PALS OF NATURAL JUSTICE. 4. THE LD. ASSESSING OFFICER HAS ILLEGALLY, WRONGLY, A RBITRARILY AND WITHOUT ANY BASIS ADDED RS. 70,923/- TO THE RET URNED INCOME OF THE ASSESSEE. 5. THE LEARNED ASSESSING OFFICER AND LEARNED COMMISSIO NER OF INCOME TAX (APPEALS) HAS ILLEGALLY, WRONGLY, ARBITR ARILY AND WITHOUT ANY BASIS CREATED DEMAND OF RS. 23,260/- FO R THE AY 2015-16. 6. ANY OTHER GROUND WHICH MAY BE TAKEN UP AT THE TIME OF HERRING OF APPEAL WITH THE KIND PERMISSION. 3. NO ONE HAS COME PRESENT ON BEHALF OF THE ASSESSE E DESPITE SERVICE OF NOTICE, HENCE, I PROCEED TO DECIDE THE APPEAL EX -PARTE OF THE ASSESSEE AFTER HEARING THE LD. DR. 3. THE BRIEF FACTS RELATING TO THE ISSUE ARE THAT T HE ASSESSING OFFICER NOTICED THAT THE ASSESSEE HAD RECEIVED A SUM OF RS. 70,923/- FROM M/S DELICA FOODS, HOWEVER, THE SAID RECEIPT HAD NOT BEE N SHOWN BY THE ASSESSEE IN ITS RETURN OF INCOME. THE ASSESSING OFF ICER, THEREFORE, MADE ADDITION OF THE AFORESAID AMOUNT INTO THE INCOME OF THE ASSESSEE. 4. THE LD. CIT(A) CONFIRMED THE ADDITION SO MADE B Y THE ASSESSING OFFICER. THUS, THE ASSESSEE HAS COME IN APPEAL BEFO RE THIS TRIBUNAL. 5. I HAVE HEARD THE SUBMISSIONS OF LD. DR AND ALSO GONE THROUGH THE RECORD. I FIND THAT BEFORE THE LOWER AUTHORITIES T HE ASSESSEE HAD EXPLAINED THAT, IN FACT, THE ASSESSEE HAD RECEIVED THE AMOUNT OF RS. 70,923/- ON ACCOUNT OF SALARY PAYABLE TO TWO EMPLOY EES ON BEHALF OF THE ITA NO. 1596-CHD-2018- SMT. DIVYA NARULA, PANCHKULA 3 DELICA FOODS LTD. THAT THE ACCOUNTS OF THE ASSESSEE WERE DULY AUDITED ACCOUNTS, WHEREIN, THE FACT OF THE RECEIPT OF THE A FORESAID AMOUNT AND FURTHER PAYMENT OF THE SALARY TO THE EMPLOYEE WAS D ULY MENTIONED / ACCOUNTED FOR. I FIND THERE WAS NO DENIAL OR REBUT TAL BY THE LOWER AUTHORITIES THAT THE AFORESAID AMOUNT OF RS. 70,92 3/- WAS ACTUALLY PAID AS SALARY BY THE ASSESSEE TO TWO EMPLOYEES ON BEHAL F OF M/S DELIKA FOODS UNDER A MUTUAL ARRANGEMENT. UNDER THE CIRCU MSTANCES, MERELY BECAUSE THE PAYER HAD DEDUCED THE TDS ON THE SAID A MOUNT, THAT ITSELF, CANNOT BE A GROUND FOR REJECTING THE CONTENTION OF THE ASSESSEE. IN VIEW OF THIS, I DO NOT FIND ANY JUSTIFICATION ON THE PAR T OF THE LOWER AUTHORITIES IN MAKING THE IMPUGNED ADDITION AND THE SAME IS HEREBY ORDERED TO BE DELETED. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS HEREBY ALLOWED. ORDER DICTATED AND PRONOUNCED IN THE OPEN COURT IMM EDIATELY ON COMPLETION OF HEARING SD/- ( / SANJAY GARG) / JUDICIAL MEMBER DATED : 10.06.2019 .. '+ ,- .- / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT 3. # / / CIT 4. # / ( )/ THE CIT(A) 5. -01 2 , % 2 , 34516 / DR, ITAT, CHANDIGARH 6. 15 7$ / GUARD FILE ITA NO. 1596-CHD-2018- SMT. DIVYA NARULA, PANCHKULA 4 '+ # / BY ORDER, 8 ' / ASSISTANT REGISTRAR