Smt. Karuna Malhotra, Delhi V. ACIT, New Delhi

ITA 1723/DEL/2014

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 7832 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 1 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-05-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Next Hearing Date: 04-05-2016
• Assessment Year: 2011-2012
• Appeal Filed On: 24-03-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Principle of natural justice
• Section: 154

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH D, NEW DELHI BEFORE SHRI H.S. SIDHU, JUDICIAL MEMBER AND SHRI J.S. REDDY, ACCOUNTANT MEMBER I.T.A. NO . 1 723 /DEL/201 4 A.Y. 20 11 - 12 SMT. KARUNA MALHOTRA, C/O SURINDER VERMA ASSOCIATES, 2526/193, TRI NAGAR, DELHI 110 035 (PAN: AAGPM2341G) VS. ACIT, CIRCLE - 23(1), NEW DELHI (APPELLANT) (APPELLANT) (APPELLANT) (APPELLANT) (RESPONDENT) (RESPONDENT) (RESPONDENT) (RESPONDENT) ASSESSEE BY : SH. CHAMAN LAL SHARMA, ADV. DEPARTMENT BY : MS. RASHMITA JHA, SR. DR DATE OF HEARING : DATE OF HEARING : DATE OF HEARING : DATE OF HEARING : 04 0404 04- -- -0 00 05 55 5- -- -201 201 201 2016 66 6 DATE OF ORDER : DATE OF ORDER : DATE OF ORDER : DATE OF ORDER : 05 0505 05- -- -0 00 05 55 5- -- -201 201 201 2016 66 6 ORDER ORDER ORDER ORDER PER H.S. SIDHU : JM PER H.S. SIDHU : JM PER H.S. SIDHU : JM PER H.S. SIDHU : JM THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST TH E ORDER OF THE LD. COMMISSIONER OF INCOME TAX (APPEALS)-XXIII, NEW DEL HI DATED 28.1.2014 PERTAINING TO ASSESSMENT YEAR 2011-12 ON THE FOLLOW ING GROUNDS. 1. THAT THE A.O. HAS ERRED IN FACTS AND LAW IN REJ ECTING THE APPLICATION DATED 28.8.2012 U/S. 154 OF THE I.T. ACT, 1961 VIDE HIS ORDER DATED 30.8.2012. 2. THAT THE REJECTION ORDERS ARE AGAINST THE PRINCI PLES OF NATURAL JUSTICE BECAUSE NO NOTICE FOR FIXING THE DATE OF HE ARING WAS ISSUED / ITA NO. 1723/DEL/2014 2 SERVED UPON THE ASSESSEE. THE UNILATERAL REJECTION OF THE APPLICATION BY THE AO VIDE HIS ORDERS IS ILLEGAL. 3. THAT WHEN INTEREST ON COMPENSATION RECEIVED AGAI NST LAND ACQUISITION IS ADDED IN THE INCOME OF THE ASSESSEE U/S. 56(VIII) OF THE I.T. ACT, 1961 THEN DEDUCTION U/S. 57(IV) SHOULD HAVE BE EN LEGALLY ALLOWED. THE ASSESSEE SHOULD NOT BE DENIED HIS STATUTORY RI GHT BY THE AO WHEN STATUTORY DUTY HAS BEEN CONSIDERED BY ADDING THE IN TEREST ON COMPENSATION IN THE INCOME OF THE ASSESSEE. 4. THAT THE AO WRONGLY AND ILLEGALLY DENIED THE STA TUTORY RIGHT AND THE LD. CIT(A) HAS WRONGLY AND ILLEGALLY DISMISSED THE APPEAL. 2. THE FACTS NARRATED BY THE REVENUE AUTHORITIES A RE NOT DISPUTED BY BOTH THE PARTIES, HENCE, THE SAME ARE NOT REPEATED HERE FOR THE SAKE OF BREVITY. 3. AT THE TIME OF HEARING, LD. COUNSEL OF THE ASSE SSEE STATED THAT ASSESSEE HAS NOT RECEIVED ANY NOTICE FROM THE AO BEFORE PASS ING THE ORDER DATED 30.8.2012 U/S. 154/143(1) OF THE I.T. ACT. HE FURTH ER STATED THAT THE AO AS WELL AS LD. CIT(A) HAS NOT PROVIDED SUFFICIENT OPPORTUNI TY TO THE ASSESSEE FOR SUBSTANTIATING HER CLAIM BEFORE THE REVENUE AUTHOR ITIES AND MADE THE ADDITION IN DISPUTE WHICH IS CONTRARY TO THE PRINCIPLES OF NATU RAL JUSTICE. HE FURTHER STATED THAT ASSESSEE IS HAVING ALL THE RELEVANT DOCUMENTA RY EVIDENCES FOR SUBSTANTIATING HER CLAIM, AS FILED IN THE SHAPE OF PAPER BOOK BEFO RE THIS BENCH CONTAINING PAGES 1 TO 12 ATTACHING THEREWITH THE PHOTOCOPY OF FORM N O. 35 TOGETHER STATEMENT OF FACTS AND GROUND OF APPEAL FILED BEFORE CIT(A), NEW DELHI; COPY OF WRITTEN SUBMISSION FILED BEFORE CIT(A); PHOTOCOPY OF ACKNOW LEDGEMENT FOR FILING THE RETURN OF INCOME FOR AY 2011-12; COMPUTATION OF INC OME FILED ALONGWITH RETURN OF INCOME; PHOTOCOPY OF CERTIFICATE OF TAX DEDUCTED OF SOURCE FOR ENHANCED ITA NO. 1723/DEL/2014 3 COMPENSATION AGAINST LAND ACQUISITION; PHOTOCOPY O F ACKNOWLEDGEMENT FOR FILING CORRECTED RETURN; PHOTOCOPY OF LETTER DATED 10.2.2012 FILED WITH THE CORRECTED RETURN; PHOTOCOPY OF COMPUTATION OF INCOM E FILED WITH CORRECTED RETURN; INTIMATION OF ASSESSMENT U/S. 143(1) DATED 15.3.2012 AND PHOTOCOPY OF APPLICATION DATED 28.8.2012 U/S. 154 OF THE I.T. AC T, 1961. HE REQUESTED THAT THE ISSUE IN DISPUTE MAY BE SET ASIDE TO THE FILE O F THE AO TO PASS THE ORDER AFTER PROVIDING FULL OPPORTUNITY TO THE ASSESSEE OF HEAR ING AS WELL AS PRODUCING THE EVIDENCE. 4. ON THE CONTRARY, LD. DR STRONGLY OPPOSED THE REQ UEST OF THE ASSESSEE AND STATED THAT AO AS WELL AS LD. CIT(A) HAS PROVIDED S UFFICIENT OPPORTUNITY TO THE ASSESSEE FOR SUBSTANTIATING HER CLAIM BEFORE THEM, BUT THE ASSESSEE DID NOT AVAIL THE SAME. THEREFORE, THE ISSUE MAY BE DECIDED BY THIS BENCH ON MERITS ONLY. 5. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE R ELEVANT RECORDS ESPECIALLY THE ORDERS PASSED BY THE REVENUE AUTHORI TIES. WE FIND FORCE IN THE ASSESSEES COUNSEL CONTENTION THAT AO AS WELL AS LD . CIT(A) HAS NOT PROVIDED SUFFICIENT OPPORTUNITY TO THE ASSESSEE FOR SUBSTANT IATING HER CLAIM BEFORE THE REVENUE AUTHORITIES AND MADE THE ADDITION IN DISPUT E WHICH IS CONTRARY TO THE PRINCIPLES OF NATURAL JUSTICE. WE FURTHER FIND THA T THE BEFORE US, THE LD. COUNSEL OF THE ASSESSEE HAS FILED A SMALL PAPER BOOK CONTAININ G PAGES 1 TO 12 ATTACHING THEREWITH VARIOUS DOCUMENTS, AS REFERRED IN PARA NO . 3 OF THIS ORDER, WHICH ARE VERY ESSENTIAL AND NEEDS TO BE EXAMINED AT THE LEVE L OF THE AO. THESE DOCUMENTS ALSO GOES TO THE ROOT OF THE MATTER. THER EFORE, IN THE INTEREST OF JUSTICE, THE ISSUES IN DISPUTE MAY BE SET ASIDE TO THE FILE OF THE AO TO PASS A FRESH ORDER AFTER PROVIDING FULL OPPORTUNITY TO THE ASSESSEE O F HEARING AS WELL AS PRODUCING THE EVIDENCE. WE HOLD AND DIRECT ACCORDINGLY. ITA NO. 1723/DEL/2014 4 6. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE STANDS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 05/05/2016. S SS SD DD D/ // /- -- - S SS SD DD D/ // /- -- - [ [[ [J.S. REDDY J.S. REDDY J.S. REDDY J.S. REDDY] ]] ] [H.S. SIDHU] [H.S. SIDHU] [H.S. SIDHU] [H.S. SIDHU] ACCOUNTANT MEMBER ACCOUNTANT MEMBER ACCOUNTANT MEMBER ACCOUNTANT MEMBER JUDICIAL MEMBER JUDICIAL MEMBER JUDICIAL MEMBER JUDICIAL MEMBER DATE 05/05/2016 SRBHATNAGAR SRBHATNAGAR SRBHATNAGAR SRBHATNAGAR COPY FORWARDED TO: COPY FORWARDED TO: COPY FORWARDED TO: COPY FORWARDED TO: - -- - 1. APPELLANT - 2. RESPONDENT - 3. CIT 4. CIT (A) 5. DR, ITAT TRUE COPY BY ORDER, ASSISTANT REGISTRAR, ITAT, DELHI BENCHES