Daulat Mahavir Singh, Surat V. The Income Tax Officer, Ward-3(2)(2), Surat

ITA 20/SRT/2019

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 2626 (ITAT-SURAT)
• Duration Of Justice: 1 year(s) 8 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-10-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2010-2011
• Appeal Filed On: 21-01-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ANUPAMA SINGLA
• Assessee Lawyers: SURESH K KABRA

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL SURAT BENCH, SURAT BEFORE SHRI PAWAN SINGH, HON'BLE JUDICIAL MEMBER AND SHRI ARJUN LAL SAINI, HON'BLE ACCOUNTANT MEMBER (VIRTUAL COURT VIRTUAL HEARING) . . ./ I.T.A NO.20/AHD/2019 [ [ / ASSESSMENT YEAR: 2010-11 DAULAT MAHAVIR SINGH, FLAT NO.404, 4 TH FLOOR, NADINAWADI SHERI NO.1, SUMUL DAIRY ROAD, KATAGRAM, SURAT 395 004. [PAN: BDLPS 2823 Q] V S . THE INCOME TAX OFFICER, WARD-3(2)(2), SURAT. / APPELLANT /RESPONDENT [ /ASSESSEE BY SHRI SURESH K. KABRA AR /REVENUE BY MS. ANUPAMA SINGLA SR. DR / DATE OF HEARING: 0 9 . 10 .20 20 /PRONOUNCEMENT ON: 09 . 10 .20 20 /O R D E R PER PAWAN SINGH, JM: 1. THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF LD.COMMISSIONER OF INCOME TAX(APPEALS)-3, SURAT DATED 20.11.2018 FOR THE ASSESSMENT YEAR 2010-11. 2. THE ASSESSEE HAS RAISED FOLLOWING GROUNDS OF APPEAL. 1. THE LD CIT-(A) WAS NOT JUST AND PROPER ON THE FACTS OF THE CASE AND IN LAW IN DISMISSING THE APPEAL AS UNADMITTED. 3. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE IS A COMMISSION AGENT OF CLOTHES. NO RETURN OF INCOME WAS FILED BY THE ASSESSEE FOR THE RELEVANT ASSESSMENT YEAR. THE CASE OF ASSESSEE WAS REOPENED U/S.147 OF THE ACT SHRI DAULAT MAHAVIR SINGH VS. ITO, WARD-3(2)(2), SURAT/ ITA NO.20/SRT/2019 FOR A.Y. 2010-11 2 BY RECORDING REASONS OF THE REOPENING. A NOTICE U/S.148 OF THE ACT DATED 30.03.2017 WAS ISSUED AND SERVED UPON THE ASSESSEE. CONSEQUENT UPON SERVICE OF NOTICE U/S.148 OF THE ACT, THE ASSESSEE FILED HIS RETURN OF INCOME ON 03.08.2017 DECLARING INCOME OF RS.1,08,960/-. THE LD.ASSESSING OFFICER(AO) AFTER SUPPLYING THE REASONS RECORDED, PROCEEDED TO MAKE THE ASSESSMENT ORDER. THE AO WHILE PASSING ASSESSMENT ORDER U/S.143(3) R.W.S 147 OF THE I.T.ACT, 1961 DATED 12.12.2017 MADE ADDITION OF RS.69,58,220/- ON ACCOUNT OF CASH DEPOSIT IN THE BANK ACCOUNT OF ASSESSEE BY TAKING VIEW THAT GENUINESS OF TRANSACTION AND IDENTITY OF PURCHASER OF REMAINED UNVERIFIABLE. ON APPEAL BEFORE THE LD.CIT(A), THE APPEAL OF ASSESSEE WAS DISMISSED ON ACCOUNT OF NON-PROSECUTION. FURTHER AGGRIEVED, THE ASSESSEE HAS FILED THIS PRESENT APPEAL BEFORE THIS TRIBUNAL. 4. WE HAVE HEARD THE SUBMISSION OF LD.AUTHORISED REPRESENTATIVE(AR) OF THE ASSESSEE AND THE LD.DEPARTMENTAL REPRESENTATIVE(DR) OF THE REVENUE AND PERUSED THE MATERIAL AVAILABLE ON RECORD. AT THE OUTSET OF HEARING THE LD.AR OF THE ASSESSEE SUBMITS THAT HE HAS A VERY LIMITED SUBMISSION BEFORE THE TRIBUNAL THAT HIS APPEAL WAS DISMISSED AS NOT ADMITTED. THE LD.CIT(A) HAS NOT PASSED THE ORDER ON MERIT AS MANDATED U/S.250(6) OF THE INCOME TAX ACT. 5. THE LD.AR FAIRLY SUBMITS THAT FIRST NOTICE DATED 04.09.2018 FOR 18.09.2018 WAS RECEIVED BY THE ASSESSEE. THE ASSESSEE FIELD APPLICATION FOR ADJOURNMENT. SECOND NOTICE ON THE SAME DAY I.E. 18.09.2018 WAS ISSUED FOR 19.10.2018 AND THE ASSESSEE AGAIN SOUGHT ADJOURNMENT. THIRD NOTICE ISSUED FOR APPEARANCE ON 19.11.2018, HOWEVER, NO COMPLIANCE WAS SHRI DAULAT MAHAVIR SINGH VS. ITO, WARD-3(2)(2), SURAT/ ITA NO.20/SRT/2019 FOR A.Y. 2010-11 3 MADE AS THERE WAS FESTIVAL SEASON OF DIWALI. NO FURTHER NOTICE WAS ISSUED TO THE ASSESSEE. THE LD.CIT(A) PASSED THE ORDER ON 20.11.2018 I.E. ON VERY NEXT DAY. THE LD.AR SUBMITS THAT THE ASSESSEE WAS NOT GIVEN FAIR AND PROPER OPPORTUNITY TO REPRESENT HIS CASE. THE LD.AR PRAYED THAT THE ASSESSEE MAY BE GIVEN ONE MORE OPPORTUNITY TO APPEAR BEFORE THE LD.CIT(A) AND TO CONTEST THE CASE ON MERIT. THE ASSESSEE HAS GOOD CASE ON MERIT AND IS LIKELY TO SUCCEED IF THE CASE IS HEARD AND DECIDED ON MERIT. 6. ON THE OTHER HAND, THE LD.DR FOR THE REVENUE SUBMITS THAT THE ASSESSEE WAS GIVEN AMPLE OPPORTUNITIES. THE LD.CIT(A) FIXED THE HEARING ON THREE OCCASIONS, HOWEVER, THE ASSESSEE FAILED TO MAKE THE COMPLIANCE. THE ASSESSEE NEITHER MADE ANY SUBMISSION NOR FILED ANY EVIDENCE TO SUBSTANTIATE HIS CONTENTION RAISED THE ISSUE RAISED BEFORE THE LD.CIT(A). 7. WE HAVE CONSIDERED THE RIVAL SUBMISSION OF PARTIES AND PERUSED THE MATERIAL AVAILABLE ON RECORD CAREFULLY. WE HAVE NOTED THAT FOR THE FIRST TIME, THE APPEAL WAS FIXED ON 18.09.2018 AND ASSESSEE FILED APPLICATION FOR ADJOURNMENT. THE CASE WAS ADJOURNED TO 09.10.2018. AGAIN ON 09.10.2018 THE ASSESSEE FILED AN APPLICATION FOR ADJOURNMENT. THE CASE WAS AGAIN FIXED ON 19.11.2018, NO APPLICATION WAS MADE. THE LD.CIT(A) HAS NOT RECORDED WHETHER ANY NOTICE FOR FINAL HEARING WAS GIVEN TO ASSESSEE OR NOT. THE LD.CIT(A) PASSED THE ORDER ON THE VERY NEXT DAY I.E. 20.11.2018. IN OUR VIEW, THE ASSESSEE WAS NOT GRANTED SUFFICIENT OPPORTUNITY. 8. CONSIDERING THE SUBMISSIONS OF LD.AR OF THE ASSESSEE FOR GRANTING ONE MORE OPPORTUNITY, THE APPEAL IS RESTORED BACK TO THE FILE OF THE LD.CIT(A) TO DECIDE THE APPEAL ON MERIT. NEEDLESS TO ORDER THAT BEFORE PASSING THE SHRI DAULAT MAHAVIR SINGH VS. ITO, WARD-3(2)(2), SURAT/ ITA NO.20/SRT/2019 FOR A.Y. 2010-11 4 ORDER, THE LD.CIT(A) SHALL GRANT OPPORTUNITY OF HEARING TO THE ASSESSEE. THE ASSESSEE IS ALSO DIRECTED TO BE MORE VIGILANT IN MAKING COMPLIANCE TO THE DIRECTION OF LD.CIT(A) AND TO PROVIDE ALL NECESSARY DETAILS, EVIDENCES AND INFORMATION TO SUBSTANTIATE HIS CONTENTIONS, ACCORDINGLY, THE SOLE GROUND OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSE. 9. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSE. 10. ORDER PRONOUNCED IN THE OPEN COURT ON 09-10-2020. SD/- SD/- (ARJUN LAL SAINI) (PAWAN SINGH) ( /ACCOUNTANT MEMBER) ( /JUDICIAL MEMBER) / SURAT, DATED : 9 TH OCT , 2020/ S.GANGADHARA RAO, SR.PS COPY OF ORDER SENT TO- ASSESSEE/AO/PR. CIT/ CIT (A)/ ITAT (DR)/GUARD FILE OF ITAT. BY ORDER / / TRUE COPY / / ASSISTANT REGISTRAR, SURAT