SHAHNAWAZ, DELHI V. ITO, Ward-34(3), NEW DELHI

ITA 1908/DEL/2021

AI Insights

The case involves appeals by the assessee, Shah Nawaz, against the orders of the ld. CIT(A)-38, New Delhi, concerning the assessment of income and initiation of penalty proceedings under various sections of the Income Tax Act. The appeals were filed against the assessments made on the grounds of a fall in the GP ratio and unexplained credits and cash deposits in the assessee's bank accounts. The Tribunal found that the CIT(A)'s orders were passed ex-parte and without merit consideration, leading to the decision to remand the case for a fresh assessment.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 121353 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 3 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-03-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: G
• Next Hearing Date: 02-01-2023
• Assessment Year: 2011-2012
• Appeal Filed On: 14-12-2021
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 271(1)(c); 234B

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘H’, NEW DELHI Before Sh. C. N. Prasad, Judicial Member Dr. B. R. R. Kumar, Accountant Member ITA No. 1908/Del/2021 : Asstt. Year : 2011-12 ITA No. 1909/Del/2021 : Asstt. Year : 2011-12 Shah Nawaz, B-93, New Seelamur Market, New Delhi-110053 Vs Income Tax Officer, Ward-34(3), New Delhi (APPELLANT) (RESPONDENT) PAN No. AESPN3071L Assessee by : Sh. Adil Mahmood, CA Revenue by : Ms. Meenakshi Dohore, Addl. CIT Date of Hearing: 03.01.2023 Date of Pronouncement: 16.03.2023 ORDER Per Dr. B. R. R. Kumar, Accountant Member: The present appeal has been filed by the assessee against the orders of ld. CIT(A)-38, New Delhi dated 24.01.2019 and 22.03.2019. 2. In ITA No. 1908/Del/2021, following grounds have been raised by the assessee: “1. On the facts and in the circumstances of the case and in law, the ld. CIT(A) erred in assessing the income of Rs.1,78,966/- in hands of the assessee on account of GP ratio fall down in the year under consideration from the preceding year. 2. On the facts and in the circumstances of the case and in law, the ld. CIT(A) erred in assessing the income of Rs.47,03,460/- in hands of the assessee on account of amount credit in the saving account of the assessee during the year under consideration. 3. On the facts and in the circumstances of the case and in law, the ld. CIT(A) erred in assessing the income of ITA No. 1908 & 1909/Del/2021 Shahnawaz 2 Rs.56,54,340/- in hands of the assessee on account of cash deposit in the saving account of the assessee during the year under consideration. 4. On the facts and in the circumstances of the case and in law, the Assessing Officer erred in charging interest u/s 234A, 234B and 234C. 5. On the facts and in the circumstances of the case and in law, the initiation of penalty proceeding under section 271(1)(b), 271(1)(c) is bad in law keeping in view the grounds mentioned above.” 3. In ITA No. 1909/Del/2021, following grounds have been raised by the assessee: “1. On the facts and in the circumstances of the case and in law, the ld. CIT(A) erred in initiation the penalty proceeding u/s 271(1)(c) of the Act. 2. On the facts and in the circumstances of the case and in law, the ld. CIT(A) erred in impose the penalty without clear-cut finding of charge to impose the penalty. 3. Whether the notice issued under section 271(1)(c) of the Act, in the printed form without specifically mentioning whether the proceedings are initiated on the ground of concealment of income or on account of furnishing of inaccurate particulars is valid and legal? 4. On the facts and in the circumstances of the case and in law, the ld. CIT(A) erred in impose the penalty without providing sufficient opportunity to the assessee.” ITA No. 1908/Del/2021 4. Heard the arguments of both the parties and perused the material available on record. The reasons submitted by the ld. AR for not appearing before the ld. CIT(A) have been considered. 5. The order of the ld. CIT(A) was passed ex-parte without going into the merits of the issue. Hence, the file is being ITA No. 1908 & 1909/Del/2021 Shahnawaz 3 remand to the file of the ld. CIT(A) to adjudicate the issue afresh after affording an opportunity to the assessee. The revenue authorities would be at liberty to initiate the penalty proceedings as per the provisions of the Act in case of failure of the assessee to comply with the notices issued from time to time. ITA No. 1909/Del/2021 6. Owing to the above order, the order u/s 271(1)(c) be adjudicated taking into consideration the outcome of the de novo proceedings by the ld. CIT(A) in the quantum proceedings. 7. In the result, the appeals of the assessee are allowed for statistical purpose. Order Pronounced in the Open Court on 16/03/2023. Sd/- Sd/- (C. N. Prasad) (Dr. B. R. R. Kumar) Judicial Member Accountant Member Dated: 16/03/2023 *Subodh Kumar, Sr. PS* Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR