SHRI SURESH ARORA, JAIPUR V. ITO, WARD -6(4), JAIPUR

ITA 167/JPR/2020

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 9122 (ITAT-JAIPUR)
• Duration Of Justice: 6 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-08-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2011-2012
• Appeal Filed On: 07-02-2020
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ROONIPAL
• Keywords: Principle of natural justice; Opportunity of cross examination; Set aside
• Section: 143(3)

Judgement Text

VK;DJ VIHYH; VF/KDJ.K] T;IQJ U;K;IHB] T;IQJ IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENC HES B JAIPUR JH FOT; IKY JKO] U;KF;D LNL; ,OA JH FOE FLAG ;KNO] YS[KK LNL; DS LE{K BEFORE: SHRI VIJAY PAL RAO, JM & SHRI VIKRA M SINGH YADAV, AM VK;DJ VIHY LA- @ ITA NO. 167/JP/2020 FU/KZKJ.K O'K Z @ ASSESSMENT YEAR :2011-12 SURESH ARORA S-16A LAND MARK, MAHAVEER MARG C-SCHEME, JAIPUR CUKE VS. ITO, WARD 6(4), JAIPUR LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN/GIR NO.: AAJPL4359C VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT VK;DJ VIHY LA- @ ITA NO. 184/JP/2020 FU/KZKJ.K O'K Z @ ASSESSMENT YEAR :2011-12 SANHITA ARORA 104, PRITHVIRAJ ROAD C-SCHEME, JAIPUR CUKE VS. ITO, WARD 6(2), JAIPUR LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN/GIR NO.: ABDPA4725E VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT FU/KZKFJRH DH VKSJ L S@ ASSESSEE BY : NONE (WRITTEN SUBMISSION) JKTLO DH VKSJ LS @ REVENUE BY : SMT. ROONI PAL (DCIT) LQUOKBZ DH RKJH[ K@ DATE OF HEARING : 04/08/2020 MN?KKS'K.KK DH RKJH[ K@ DATE OF PRONOUNCEMENT: 07/08/2020 PER BENCH: THESE ARE TWO APPEALS FILED BY THE ASSESSSEES AGAIN ST THE RESPECTIVE ORDERS PASSED BY THE LD. CIT(A)-2, JAIPU R OF EVEN DATE I.E, 30.12.2019 FOR A.Y 2011-12. ITA NO. 167 & 184/JP/2020 SURESH ARORA , JAIPUR VS. ITO, JAIPUR 2 2. NONE HAS APPEARED ON BEHALF OF THE ASSESSEE. HOW EVER, LD. AR SH. MADHUKAR GARG HAS SENT A COMMUNICATION TO THE R EGISTRY ON 03.08.2020 STATING THAT HE IS UNABLE TO ATTEND TO T HE PROCEEDINGS BEFORE THE BENCH DUE TO HIS PERSONAL HEALTH ISSUES AND THE MATTER MAY ACCORDINGLY BE DECIDED ON THE BASIS OF WRITTEN SUBM ISSION. IT WAS ACCORDINGLY DECIDED TO HEAR THE MATTER AFTER TAKING INTO CONSIDERATION THE WRITTEN SUBMISSIONS AND CONTENTIONS ADVANCED BY THE LD. DR AND OTHER MATERIAL AVAILABLE ON RECORD. ITA NO. 167/JP/2020 3. BRIEFLY STATED, THE FACTS OF THE CASE ARE THAT T HE ASSESSMENT U/S 143(3) WAS COMPLETED VIDE ORDER DATED 20.02.2014 WH EREIN THE ASSESSING OFFICER HAS NOT ACCEPTED THE TRANSACTION OF PURCHASE AND SALE OF THE PROPERTY AND CONSEQUENT LONG TERM CAPITAL GA INS DISCLOSED BY THE ASSESSEE IN HIS RETURN OF INCOME AND THE AMOUNT OF RS. 13,87,500/- HAS BEEN BROUGHT TO TAX AS UNDISCLOSED INTEREST INCOME IN THE HANDS OF THE ASSESSEE. BEING AGGRIEVED, THE ASSESSEE CARRIED TH E MATTER IN APPEAL BEFORE THE LD. CIT(A) WHO HAS SINCE CONFIRMED THE A DDITION AND AGAINST THE SAID FINDINGS, THE ASSESSEE IS IN APPEAL BEFORE US. 4. IN GROUND NO. 2, THE ASSESSEE HAS CHALLENGED TH E ACTION OF LD. CIT(A) WHEREIN SHE HAS NOT ADJUDICATED THE ASSESSEE S SPECIFIC GROUND OF APPEAL REGARDING COMPLETION OF ASSESSMENT PROCEE DINGS AGAINST THE PRINCIPLES OF NATURAL JUSTICE. IT WAS SUBMITTED THA T THE ASSESSING OFFICER HAS COMPLETED THE ASSESSMENT AGAINST THE PRINCIPLES OF NATURAL JUSTICE WHERE THE LATTER HAS RELIED ON THE STATEMENT/DOCUME NTS WHICH WERE NOT DISCLOSED TO THE ASSESSEE NOR THE ASSESSEE WAS ALLO WED AN OPPORTUNITY ITA NO. 167 & 184/JP/2020 SURESH ARORA , JAIPUR VS. ITO, JAIPUR 3 OF CROSS EXAMINATION OF SH. MAHENDRA SARAF, THE DIR ECTOR OF M/S SATYAM BUILDCON PVT. LTD., JAIPUR. WE FIND THAT IN GROUND NO. 1 OF THE ASSESSEES APPEAL FILED BEFORE THE LD. CIT(A), HE H AS TAKEN THE FOLLOWING GROUND OF APPEAL:- 1. THAT THE LEARNED ASSESSING OFFICER HAS ERRED IN COMPLETING THE ASSESSMENT AGAINST THE PRINCIPLES OF NATURAL JU STICE AS HE HAS RELIED ON THE STATEMENT/DOCUMENTS WHICH WERE NEVER DISCLOSED TO THE ASSESSEE NOR THE ASSESSEE WAS ALLOWED AN OPPORT UNITY OF CROSS EXAMINATION OF SH. MAHENDRA SARRAF, DIRECTOR OF M/S SATYAM BUILDCON PVT. LTD. THE ASSESSMENT COMPLETED IS ILLEGAL AND DESERVES TO BE CANCELLED. 5. THE LD. CIT(A) HAS GIVEN HER FINDING AT PARA 2.3 OF HER ORDER. HOWEVER, THERE IS NO SPECIFIC FINDING AS REGARDS GR OUND NO. 1 OF THE ASSESSEES APPEAL. THEREFORE, WE FIND MERIT IN THE CONTENTIONS OF THE ASSESSEE THAT THE GROUND OF APPEAL SO TAKEN BEFORE THE LD. CIT(A) HAS NOT BEEN ADJUDICATED UPON BY THE LD. CIT(A). THEREF ORE, GIVEN THAT THE ASSESSEE HAS TAKEN A SPECIFIC GROUND OF APPEAL BEFO RE THE LD. CIT(A) INVOKING THE PRINCIPLE OF NATURAL JUSTICE WHICH HAS NOT BEEN ADJUDICATED UPON, WITHOUT GOING INTO THE MERITS OF SUCH CONTENT IONS WHICH CAN BE DULY EXAMINED BY THE LD CIT(A), THE MATTER IS SET A SIDE TO THE FILE OF LD. CIT(A) TO ADJUDICATE THE SAID GROUND OF APPEAL AFTE R PROVIDING REASONABLE OPPORTUNITY TO THE ASSESSEE. IN LIGHT OF ABOVE, THE OTHER GROUNDS OF APPEAL TAKEN BEFORE US ARE ALSO SET ASID E TO THE FILE OF LD. CIT(A). IN THE RESULT, APPEAL OF THE ASSESSEE IS AL LOWED FOR STATISTICAL PURPOSES. ITA NO. 167 & 184/JP/2020 SURESH ARORA , JAIPUR VS. ITO, JAIPUR 4 ITA NO. 184/JP/2020 6. IN THIS CONNECTED CASE, WE FIND THAT IN RESPECT OF IDENTICAL TRANSACTION, A SIMILAR FINDING HAS BEEN RECORDED BY THE ASSESSING OFFICER WHICH HAVE BEEN CONFIRMED BY THE LD. CIT(A) AND THE ASSESSEE IS IN APPEAL BEFORE US. IN GROUND NO. 2, THE ASSESSEE HAS TAKEN SIMILAR GROUND OF APPEAL CHALLENGING THE ACTION OF THE LD C IT(A) IN NOT ADJUDICATING THE GROUND OF APPEAL RELATING TO PASSI NG OF THE ASSESSMENT ORDER BY THE ASSESSING OFFICER WITHOUT CONFRONTING THE ASSESSEE WITH THE STATEMENT/DOCUMENTS WHICH WERE NOT DISCLOSED TO THE ASSESSEE AND NON-GRANT OF OPPORTUNITY OF CROSS EXAMINATION OF SH . MAHENDRA SARAF, THE DIRECTOR OF M/S SATYAM BUILDCON PVT. LTD., JAIP UR. THEREFORE, FINDINGS/DIRECTION CONTAINED IN ITA NO. 167/JP/2020 SHALL APPLY EQUALLY IN THE CASE OF THE ASSESSEE AND THE MATTER IS ACCOR DINGLY SET ASIDE TO THE FILE OF LD. CIT(A) TO ADJUDICATE GROUND NO. 1 O F THE ASSESSEES APPEAL AFTER PROVIDING REASONABLE OPPORTUNITY TO TH E ASSESSEE. IN LIGHT OF ABOVE, THE OTHER GROUNDS OF APPEAL TAKEN BEFORE US ARE ALSO SET ASIDE TO THE FILE OF LD. CIT(A). IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. IN THE RESULT, BOTH THE APPEALS ARE DISPOSED OFF IN LIGHT OF AFORESAID DIRECTIONS. ORDER PRONOUNCED IN THE OPEN COURT ON 07/08/2020. SD/- SD/- FOT; IKY JKO FOE FLAG ;KNO (VIJAY PAL RAO) (VIKRAM SINGH YADAV) U;KF;D LNL;@ JUDICIAL MEMBER YS[KK LNL;@ ACCOUNTANT MEMBER ITA NO. 167 & 184/JP/2020 SURESH ARORA , JAIPUR VS. ITO, JAIPUR 5 TK;IQJ@ JAIPUR FNUKAD@ DATED:- 07/08/2020 * GANESH KR. VKNS'K DH IZFRFYFI VXZSFKR@ COPY OF THE ORDER FORWARDED TO: 1. VIHYKFKHZ@ THE APPELLANT- SURESH ARORA, JAIPUR SANHITA A RORA, JAIPUR 2. IZR;FKHZ@ THE RESPONDENT- ITO, WARD 6(4), JAIPUR ITO, WAR D 6(2), JAIPUR 3. VK;DJ VK;QDR@ CIT 4. VK;DJ VK;QDR@ CIT(A) 5. FOHKKXH; IZFRFUF/K] VK;DJ VIHYH; VF/KDJ.K] T;IQJ@ DR, ITAT, JAIPUR. 6. XKMZ QKBZY@ GUARD FILE {ITA NO. 167 & 184/JP/2020} VKNS'KKUQLKJ@ BY ORDER, LGK;D IATHDKJ@ ASST. 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