Shri. Prabhakar Reddy, Bangalore V. Income Tax Officer, Ward- 4(3)(3), Bangalore

ITA 2063/BANG/2019

• Counselvise Citation: [2019] 113 COUNSELVISE.COM (IT) 6393 (ITAT-BANGALORE)
• Duration Of Justice: 1 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-11-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2012-2013
• Appeal Filed On: 25-09-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: GANESH R GHALI TO DEPA
• Assessee Lawyers: H GURUSWAMY ITP
• Keywords: Unexplained expenditure; Opportunity of being heard; Principle of natural justice; Set aside
• Section: 143(3); 201; 27; 12; 2

Judgement Text

+IN THE INCOME TAX APPELLATE TRIBUNAL SMC - C BENCH : BANGALORE BEFORE SHRI N. V. VASUDEVAN, VICE PRESIDENT ITA NO S . 2062 AND 2063 /BANG/20 1 9 ASSESSMENT YEAR S : 201 1 - 1 2 AND 2012 - 13 SHRI PRABHAKAR REDDY, NO.152, 5 TH CROSS, 27 TH MAIN, 1 ST PHASE, J. P. NAGAR, BENGALURU 560 078. PAN : A DHPR 5847 E VS. INCOME TAX OFFICER, WARD 4(3)(3), BENGALURU. APPELLANT RESPONDENT ASSESSEE BY : SHRI. H. GURUSWAMY, ITP REVENUE BY : SHRI. GANESH R. GHALI, ADVOCATE STANDING COUNSEL TO DEPARTMENT DATE OF HEARING : 1 3 . 1 1 .201 9 DATE OF PRONOUNCEMENT : 20 . 1 1 .201 9 O R D E R THESE ARE APPEALS BY THE ASSESSEE AGAINST TWO ORDERS BOTH DATED 09.08.2019 BY CIT(A), BENGALURU-6, RELATING TO ASSESSMENT YEAR 2011-12 AND 2012-13. 2. THE ASSESSEE IN AN INDIVIDUAL. FOR ASSESSMENT YEAR 2011-12, THE ASSESSEE FILED RETURN OF INCOME DECLARING TOTAL INCOME OF RS.2,71,909/-. AN ORDER OF ASSESSMENT WAS PASSED BY THE AO MAKING AN ADDITION ON ACCOUNT OF UNEXPLAINED EXPENDITURE UNDER SECTION 69-C OF THE INCOME TAX ACT, 1961 (ACT) OF 40,47,524/- . SIMILARLY, IN ASSESSMENT YEAR 2012-13, AN ORDER UNDER SECTION 143(3) WAS PASSED MAKING AN ADDITION OF RS.14,84,000/- UNDER SECTION 69-C OF THE ACT TO THE INCOME RETURNED BY THE ASSESSEE. ITA NOS.2062 AND 2063/BANG/2019 PAGE 2 OF 3 3. AGAINST BOTH THE AFORESAID ORDERS, ASSESSEE FILED APPEALS BEFORE THE CIT(A). ON 31.07.2019, BOTH THE APPEALS WERE FIXED FOR HEARING BEFORE THE CIT(A) AND ON THAT DATE, THE ASSESSEE FILED AN APPLICATION FOR ADJOURNMENT REQUESTING THAT THE APPEALS OF THE ASSESSEE FOR ASSESSMENT YEAR 2011-12 AND 2012-13 SHOULD BE TAKEN UP TOGETHER FOR HEARING. THE ASSESSEE SOUGHT ONE WEEKS TIME IN THIS REGARD. THERE WAS NO HEARING ON THAT DATE. THE CIT(A) HOWEVER FIXED BOTH THE APPEALS FOR HEARING ON 02.08.2019 AND THERE WAS NO NOTICE ADMITTEDLY ISSUED FOR THIS FRESH DATE OF HEARING. ON 02.08.2019, NONE APPEARED ON BEHALF OF THE ASSESSEE AND UNDER THE CIRCUMSTANCES, THE CIT(A) PROCEEDED TO DECIDE THE APPEAL ON THE BASIS OF THE MATERIAL AVAILABLE BEFORE HIM AND ULTIMATELY DISMISSED BOTH THE APPEALS OF THE ASSESSEE FINDING NO MERIT. 4. AGGRIEVED BY THE AFORESAID ORDERS OF THE CIT(A), THE ASSESSEE HAS PREFERRED PRESENT APPEAL BEFORE THE TRIBUNAL. 5. THE MAIN ARGUMENT OF THE LEARNED COUNSEL FOR THE ASSESSEE IS THAT THERE WAS LACK OF PROPER OPPORTUNITY OF BEING HEARD AFFORDED TO THE ASSESSEE BY THE CIT(A) AND THEREFORE ORDER OF THE CIT(A) SHOULD BE SET ASIDE AND THE CIT(A) SHOULD BE DIRECTED TO HEAR THE APPEAL AFRESH AFTER AFFORDING OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. THE LEARNED DR SUPPORTED THE ORDERS OF CIT(A) DECIDING THE APPEALS EX-PARTE. 6. I HAVE HEARD THE RIVAL SUBMISSIONS AND I FIND THAT FOR THE HEARING ON 02.08.2019, NO NOTICE WAS ISSUED TO THE ASSESSEE. ADMITTEDLY, FOR THE HEARING ON 31.07.2019, THERE WAS A REQUEST FOR ADJOURNMENT BY ONE WEEK. IF THAT REQUEST IS ACCEPTED, THEN THE HEARING SHOULD HAVE BEEN ON OR AFTER 07.08.2019. SINCE THE APPEAL WAS POSTED FOR HEARING ON 02.08.2019 ALLOWING ONLY 2 DAYS ADJOURNMENT, THE CIT(A) OUGHT TO HAVE PUT THE ASSESSEE ON NOTICE REGARDING THE DATE OF HEARING. SINCE SUCH A COURSE OF ACTION WAS NOT FOLLOWED, WE ARE OF THE VIEW THAT THERE WAS VIOLATION OF PRINCIPLES OF NATURAL JUSTICE. ACCORDINGLY, WE SET ASIDE THE ORDERS OF THE CIT(A) ITA NOS.2062 AND 2063/BANG/2019 PAGE 3 OF 3 AND REMAND THE CASE TO THE CIT(A) FOR FRESH ADJUDICATION ON MERITS, AFTER AFFORDING ASSESSEE OPPORTUNITY OF BEING HEARD. 7. IN THE RESULT, THE APPEALS BY THE ASSESSEE IS TREATED AS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 20 TH DAY OF NOVEMBER, 2019. SD / - SD S D/ - (B. R. BASKARAN) ACCOUNTANT MEMBER (N. V. VASUDEVAN) VICE PRESIDENT BANGALORE. DATED: 20 TH NOVEMBER, 2019. /NS/* COPY TO: 1. APPELLANTS 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR 6. GUARD FILE BY ORDER ASSISTANT REGISTRAR, ITAT, BANGALORE.