Manish Kumar Gupta, Noida V. DCIT , Circle-2 , Noida

ITA 1795/DEL/2019

• Counselvise Citation: [2022] 105 COUNSELVISE.COM (IT) 9191 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 11 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-02-2022
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: E
• Assessment Year: 2015-2016
• Appeal Filed On: 04-03-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 43; 20

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “E” DELHI BEFORE SHRI KUL BHARAT, JUDICIAL MEMBER & SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER I.T.A. No.1795/DEL/2019 Assessment Year 2015-16 Manish Kumar Gupta, 304, Aspire 4, Supertech Emerald Court, Sector 93A, Noida. v. Dy. Commissioner of Income Tax, Circle-2, Noida. TAN/PAN: ACTPG1311P (Appellant) (Respondent) Appellant by: Shri Divyansh Jain, CA. Respondent by: adjournment application Date of hearing: 02 02 2022 Date of pronouncement: 09 02 2022 O R D E R PER PRADIP KUMAR KEDIA, A.M.: The c apt io ne d ap p eal ha s be en f i le d at th e i ns ta nc e o f the ass es se e a ga in st t he or der of t he Co mmi s si on er of Inc o me Ta x (Ap pe al s) -I, N oi da [ ‘CI T( A) ’ i n sh or t ], da te d 2 8. 09.2 01 8 ar is in g i n the as se ss me nt or der da te d 1 9.1 2. 2 01 7 pa ss ed b y th e As se ss in g Of f icer ( AO ) u nd er Sec ti on 1 43 (3 ) of t he I nc o me Ta x A ct , 196 1 (t he Act ) co nc ern in g A Y 2 0 15- 16 . 2. The g ro un ds of a pp eal r ais ed b y t h e a s ses se e read as u nd e r: “ T h a t o n t h e f a c t s a n d i n t h e c i r c u m s t a n c e s o f t h e a p p e l l a n t ’ s c a s e , t h e L d C I T ( A ) , e r r e d i n f a c t s & l a w i n d i s p o si n g t h e a p p e a l w i t h o u t p r o v i d i n g r e a s o n a b l e o p p o r t u n i t y t o t h e a p pe l l a n t t o f u r n i s h w r i t t e n s u b m i s s i o n / d e t a i l s / d o c u m e n t s / e v i d e n c e s . H e n c e , o p p o r t u n i t y o f b e i n g h e a r d s h o u l d b e g i v e n to t h e a p p e l l a n t I.T.A. No.1795/DEL/2019 2 f o r t h e s a k e o f n a t u r a l j u s t i c e . Wi t h o u t p r e j u d i c e t o g r o u n d o f a p p e a l N o . 1 T h a t o n t h e f a c t s a n d i n t h e c i r c u m s t a n c e s o f t h e ap p e l l a n t ’ s c a s e , t h e L d C I T ( A ) , e r r e d i n f a c t s & l a w i n a r b i t r a r i l y c o n f i r m i n g t h e a s s e s s m e n t o r d e r w h e r e i n t h e L d . A O t r e a t e d t h e “ S ho r t t e r m c a p i t a l g a i n ” o f R s 1 9 , 2 3 , 4 9 1 / - a s ‘ B u s i n e s s I n c o m e’ , i n s t e a d o f ‘ S h o r t T e r m C a p i t a l G a i n ’ a s d e c l a r e d b y t h e a p p e l la n t , o n s a l e o f s h a r e s h e l d a s i n v e s t m e n t . ” 3. The as se sse e i s a n in di vi dua l e ng a ged in t he b usin e ss of tra di ng in eq ui t y an d co m mo di t y sh are s. T he as se ss ee f i le d re tu rn of inc o me dec la ri ng t ota l i nc o me a t R s. 1,3 9, 63 ,6 50 /- fo r As ses s me nt Yea r 20 15 -1 6 i n qu est io n. T he ca se of th e a ss es se e was s ubj ec te d t o scr ut in y as se ss me nt und er S ec tio n 1 43 ( 3) of the Ac t wh er e in i nco me of Rs. 19 ,2 3, 49 1/- i ncl ud ed a nd sh ow n und er t he hea d “ S hor t T er m Ca pit al Ga in” f r o m pu rc ha se a nd s ale of sha re s w er e tr eat ed as bu sin es s in co me b y th e As se ss in g Of f icer . 4. Ag gri ev ed b y th e af ore sa id a ct io n, the as se ss ee p re f erre d app ea l bef o re t he C IT( A) . Th e CI T( A) ho we ver p as se d cr ypti c or de r wh ere in th e ap pe al was no t ad mi tt ed all eg in g n on c ompl ian ce wi th the re qui re me nt of Sec ti on 24 9( 1)( a) o f the Ac t a nd hel d t hat ap pea l of th e as ses se e is n ot ma in ta in abl e. 5. Fu rth er a gg rie ve d, th e as se ss ee pr ef err ed a ppe al b ef or e t he Tri bu na l. 6. Ld. Co un se l f or t he a ss es see su b mit ted tha t n o op po rt uni t y wh ats oe ve r w as gi ven to th e as se ss ee to s up po rt its ap p eal on la w and on f ac ts . I t wa s po in te d o ut t ha t the as se sse e f il ed a le tte r o n 19. 09 .2 01 8 st ati ng tha t th e p ap er bo o k an d wr itt en s ub mi s sio ns w er e un der pr epa ra ti on , and t he ref o re, th e ca se s ho ul d be adj ou rn ed. I.T.A. No.1795/DEL/2019 3 Ho we ver , t he CIT (A) di d n ot p a y a n y h ee d t o su ch r equ es t a nd pas se d th e o rd er on 2 8. 09 .2 01 8 wit ho ut g iv in g a n y ef f ect iv e op por tu ni t y. Th e c a se of t he a sse ss ee was n ei th er di sc us s ed on mer it nor th e p ri nc ip les of nat ur al ju st ice has be en f o llow e d. The n on co mpl ia nc e of re qu ire me nt of Se cti on 24 9(1 )( a) wa s al le g ed w it ho ut ver if yi ng t he r ele va nt f act . It w as t hu s con te nd ed t ha t th e dis po sa l of the a pp ea l b y th e CI T( A) w as i n i nf rin ge me nt of princi pl es of nat ur al ju sti ce an d th us re qu ir es to b e s et as id e for f res h adj ud ic at io n i n ac c ord an ce w it h l aw . 7. On b eh alf of the D epa rt me nt , an a dj o urn me nt was pre ss ed f or def en di ng t he ac ti o n of th e CI T( A). 8. W e h av e ca ref ul l y con si de re d th e su b mi ssi on s a nd t he o r der of the CIT (A ) as w el l as the a ss es s men t orde r. O n th e f ac e of it, th e CI T( A) h as ad op te d a la id ba ck ap pr oac h an d dis mi ss ed th e app ea l of the a sse ss ee in l i mi ne b y wa y of a cr yp t i c ord er al leg in g no n co mpl ia nc e of Sec t ion 24 9( 1)( a) . It a p pea rs t ha t f irs t ap p ell at e or der has b een p as sed i n un du e h as te wh ic h r un s c ou nt er to t he pu rp ose inb ui lt f o r f ai r o p por tu ni t y. T he ac ti on of th e C IT(A ) pri m a f aci e i mpin ge s up on pri nci pl es of na tu ral ju sti ce an d t hus can no t b e cou nt en an ce d in la w. W e t hu s a cc ord i ngl y s et as ide th e a cti on of the CI T( A) an d re st or e the mat te r ba ck to th e f ile of th e CI T( A) f or den ov o a dj ud ic ati o n of th e f ir st a p pea l in ac co rd anc e w ith la w af t er asc er tai ni ng t he co mpl ia nc e w it h the re qu ir e men t of Se cti on 24 9(1 )( a) of the Act . N ee dl es s t o sa y, pr op er a n d ef f ecti ve op por tu ni t y s ha ll be gi ve n to the as ses se e wh il e adju d ica ti ng t he app ea l. It s ha ll be op en t o th e ass es se e to d e mo nstra te t he co mpl ia nc e of S ec t ion 2 49( 1) (a ) of t h e A ct. T he a sses se e ho we ver i s als o c au ti on ed to dut if ul l y co mp l y wit h the h ear in gs bef or e t he CI T( A) f or d is po sa l of the a pp ea l. W i th t hi s di re cti on , w e se t as id e I.T.A. No.1795/DEL/2019 4 the mat te r ba ck t o the f ile of the C IT( A) w it ho ut goi ng in to t he su bst an ti ve gr o un ds of a pp eal . 9. In t he re su lt , th e app eal of the a sse ss ee i s al lo we d f or sta ti st ica l pu rp os es . Order pronounced in the open Court on 09/02/2022. Sd/- Sd/- [KUL BHARAT] [PRADIP KUMAR KEDIA] JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 09/02/2022 Prabhat