Arun Kumar Kesharwani, New Delhi V. ITO Ward-67(2) , New Delhi

ITA 205/DEL/2023

AI Insights

The case involves Arun Kumar Kesharwani, the appellant, contesting an order from the Commissioner of Income Tax (Appeals), which arose from an assessment order passed by the Assessing Officer under Section 144 of the Income Tax Act, 1961 for the assessment year 2012-13. The primary contention was regarding an addition of Rs. 7,00,000 on account of unexplained investment, which the CIT(A) confirmed. The appellant argued that the CIT(A) erred in confirming the addition without considering the remand report and without an opportunity for a personal hearing, thus violating the principles of natural justice. The Tribunal, after considering the submissions and the remand report, decided to set aside the CIT(A)'s order and remand the matter back to the Assessing Officer for a fresh decision.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 121756 (ITAT-DELHI)
• Duration Of Justice: 2 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-04-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 16-04-2023
• Assessment Year: 2016-2017
• Appeal Filed On: 29-01-2023
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 144

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “SMC” DELHI BEFORE SHRI KUL BHARAT, JUDICIAL MEMBER & SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER I.T.A No.205/DEL/2023 Assessment Year 2016-17 Arun Kumar Kesharwani H.No.188/B2, RLY Colony Basant Road, Pahar Ganj, Delhi. v. ITO, Ward-67(2), Delhi. TAN/PAN: BPNPK7084M (Appellant) (Respondent) Appellant by: Shri Rohan Sogani, CA Respondent by: Shri Om Parkash, Sr.DR Date of hearing: 17 04 2023 Date of pronouncement: 17 04 2023 O R D E R PER PRADIP KUMAR KEDIA, A.M.: The capt i oned appe al has been fi l ed b y t he Assessee agai nst th e orde r of the C o mmi ssi oner of I nco me Ta x ( Appeals), NFA C, Del hi ( ‘C I T(A ) ’ i n s hort) dat ed 01. 12. 2022 ari si ng f r o m the assessment or der dat ed 19.1 2.2 018 passe d b y t he Assessi ng Of fi cer ( AO) under Sect ion 144 of the Inco me Tax Act, 1961 (t he Act ) concer ni ng AY 2012- 13. 2. The gr ounds of appeal raised b y the assessee read as under: “ 1 . I n f a c t s a n d c i r c u m s t a nc e s o f t h e c a s e a nd i n la w , l d. C I T (A )/ N a t i o n a l F a c e l e s s A p p e a l C e nt r e ( " N F A C " ) e r re d i n p a s s i ng t h e or d e r , i n f ir s t ap p e ll a n t p r o c e e di n g, ex - pa r t e , a g a i ns t t h e p r i nc i p l e s o f n at u r a l j u s t i c e . T h e a c t io n o f l d. C I T ( A )/ N F A C I.T.A No.205/Del/2023 2 i s i l l e g a l , un j u s t i fi e d , ar bi t r a r y a n d a g ai n s t t he f ac t s o f th e c as e . R e l i e f m a y p l e as e b e gr a n t e d b y qu as hi n g t h e e n t i r e or de r p a s s e d b y l d . C I T ( A )/ N F A C , b e i n g i l l e g a l a n d p as s e d w i t h out f ol l o w i n g t h e pr i n c i p le s of n at u r a l j us t i c e . 2 . I n t h e f a c t s a n d c ir c um s t a n c e s of t h e c a s e an d in l a w , l d. C I T (A )/ N F A C h as e r r e d i n , c on f i r m i n g t h e a c t i o n of l d . A O , i n m ak i n g a dd i t i on of R s . 7 , 0 0, 0 00 o n a c c o u nt o f u n e x p la i n e d i n v e s t m e n t . The a c t i on o f l d . C I T ( A ) /N A C is i l le g a l, u n j us t i f i e d a n d a r bi t r a r y a nd a g a in s t t h e f a c t s o f t h e c a s e . R el i e f m ay p l e as e b e g r an t e d by d e l e t i ng t he e nt i r e a d di t i on m a d e by l d . A O l an d c o nf i r m e d b y l d. C I T ( A ) / N F AC . ” 3. When t he mat t er was call ed for hear ing, t he l d. c ouns el for the assessee poi nt ed out that rele vant evi dences in suppor t of retur n of i nco me wer e dul y fi l ed bef ore the CI T( A) in the ph ys i cal heari ng. A r e ma nd r epor t was al so obtained b y t he CIT( A) dat ed 28. 07. 2020. How eve r, t he matt er was t her eafter tr ansferre d t o faceless di spensati on and an or der was passed b y CIT( A) NFAC. The fir st ap pel late or der was passed wi thout taki ng c ogni za nce of t he re ma nd report and al so wi thout oppor tuni t y t o t he assessee. The l d. counsel poi nted out that t he sourc e of invest ment in questi on was dul y explai ned to t he Assessi ng Off icer in the r e ma nd pr oceedi ngs a nd t hus addi ti ons con fir med b y t he CI T( A) is uncal l ed for . 4. I n t he l i ght of t he sub mi ssions ma de on behal f of the assessee and havi ng regar d to the r e ma nd r epor t r efe rred t o a nd reli ed upon, we f i nd j ust ifi cat ion i n the pl ea of the assessee towar ds att endanc e bef or e t he CIT( A). The fi rst appe ll at e orde r however has been passed wit hout taki ng not e of t he r e ma nd report . 5. Under th e ci rcu mst ances, we set asi de t he or der of the CIT( A) a nd r est ore t he ent i re i ssue back t o the f ile of the I.T.A No.205/Del/2023 3 Assessi ng Off icer for fresh adj udic at ion i n acc or dance wit h l a w to pr event miscarr iage of j usti ce. 6. I n the result , the appeal of t he assessee i s al lowed f or stati sti cal purpose s. Order pronounced in the open Court on 17/04/2023. Sd/- Sd/- [KUL BHARAT] [PRADIP KUMAR KEDIA] JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 17/04/2023 Prabhat