Baldev Kumar, Panipat V. ITO,Ward-3 , Panipat

ITA 227/DEL/2023

AI Insights

The case involves an appeal by Baldev Kumar against the order of the Commissioner of Income Tax (Appeals), which arose from an assessment order passed by the Assessing Officer under sections 144 and 147 of the Income Tax Act, 1961 for the assessment year 2012-13. The primary contention was the addition of Rs. 19,49,550 to the income of the appellant, attributed to cash deposits in a bank account from business sales proceeds. The appellant argued that he was not given a proper opportunity to be heard, as the notice was served to his counsel without informing him, preventing compliance. The Tribunal found merit in the appellant's arguments and restored the matter for a fresh assessment.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 121757 (ITAT-DELHI)
• Duration Of Justice: 2 month(s) 16 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: 2012-2013
• Appeal Filed On: 31-01-2023
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 147; 144; 13

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.227/DEL/2023 Assessment Year 2012-13 Baldev Kumar H. No.248 Ward-6, NR Halwai Hatta, Panipat, Haryana. v. ITO, Ward-3, Panipat. TAN/PAN: ANWPK9582E (Appellant) (Respondent) Appellant by: Shri Jai Bhagwan Sharma, Adv. 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 19. 10. 2022 ari si ng f r o m the assessment or der dat ed 02.1 2.2 019 passe d b y t he Assessi ng Of fi cer ( AO) under Sect ion 144 r .w. Sect ion 147 of the I nco me Tax Act, 1961 (t he Act) concerni ng AY 2012- 13. 2. The gr ounds of appeal raised b y the assessee read as under: “ 1 T h at o n t he fa c t s a n d c i rc um st a n c e s o f t h e c a s e , t h e I d . C I T (A ), N F A C, D e l hi h a s e r r e d i n d i sm i s si n g t he ap pe a l o f t h e ap p e l l an t w i t h o u t pr o pe r o pp o r t u n i t y o f be i ng he a rd. I.T.A No.227/Del/2023 2 2) T h at o n t h e f a c t s an d c i r cu m st a n c e s o f t h e ca s e , t h e I d . A . O . ha s e r r ed in l a w i n n ot fo l l o wi n g t he p r o c ed u r e u nde r l a w un d e r se c1 47 t o 1 51 of I T A c t , 19 61 . 3 T h at o n f a c t s an d c i r c u m st a nc e s of t he c a s e, b ot h t h e l o we r au t h o r it i e s ha v e e r re d i n m a k i ng / c o n fi rm i n g a d di ti o n o f R s. 19 , 49 , 5 5 0 / - i n t h e i n c o m e o f ap pe l l an t o n ac c o u n t of c a s h de p o si t e d i nt o b an k o f R s . 1 9, 4 9, 5 50 / - f r om t h e s ale s p r o c e e d s of bu si n e s s. 4) T h a t t h e a pp e ll a nt h e r e b y r eq ue st s t o a c c ep t th e ap pe a l , qu a s h th e o rd e r s of t h e l o w e r a ut ho ri t ie s a n d ob l i ge . 5) T h at th e a pp e ll a nt c r a v e s t o a dd , a m e n d, f o re g o, d e l e t e , v a ry an y o f t h e g ro un d s o f ap pe a l b e fo r e f i na l h e a ri n g of t h e a pp e al . ” 3. When t he mat t er was call ed for hear ing, t he l d. c ouns el for the assessee adver t ed to addit i onal e vi dence fi led under Rul e 29 of the Inco me Tax ( Appel late Tribu nal ) R ules, 1963 a nd request ed f or ad mi ssion thereof f or adjudicat io n pur poses. The ld. cou nsel for t he assessee furt her poi nt ed out t hat in the present case, t he mat ter coul d not be at t ende d bot h bef or e the Assessi ng Off icer as wel l as t he CI T(A ) for t he r eason t hat the assessee did not r ecei ve t he not i ce fro m t he Department i n per son. T he not ice was pr obabl y s er ved on t he counsel of t he assessee who did not inf or m the assessee whi ch pr event ed the assessee fro m ne cessar y co mpli an ces. An af fi davi t dated 7 t h March, 2023 was fi l ed to this eff ect i n support of t he asser ti ons ma de. 4. On perusal of t he assess ment or der, i t appears that the assessee has deposi ted cash a mount t o Rs. 19, 49, 553/- i n the savi ngs bank acc ount i n Fi na nci al Year 2011- 12 rel evant t o Assess ment Year 2012- 13 i n ques t ion. The Assessi ng Offi cer at te mpt ed t o make i nqui r y on t he source of such cash deposi ts I.T.A No.227/Del/2023 3 but howe ver t he mat ter was pr ocee ded ex- part e i n th e absence of co mpli ances. 5. I n t he l ig ht of t he asser ti ons made t owar ds no n c o mpl iance bef ore Assessi ng Of fi cer and CI T( A), we consi der it expedi ent to restor e the mat t er bac k t o t he fi l e of t he Assessing Offi cer t o take the case t o t he logical concl usi on. It wi ll conduce t o ef fecti ve ad mi ni st rati on of j ust ice where one more opp ort unit y is gi ven t o Assessee t o de monstr at e bona f i de of i ts case. The assessee is however ca ut ioned to di li ge ntl y at tend t he assess ment pr oce edi ngs and full y co- operat e wi t h t he Revenue Aut hor it ies in t he mat ter wi t hout any de mur. 6. We t hus set asi de the order of the CIT( A) and rest or e the ma tt er back t o t he fi le of t he Assessing Offi cer. It shal l be op en to the Assessi ng Offi cer t o make such i nqui r y a s he ma y consi der i t expedient and pass an assess me nt or der af resh i n accor dance wit h l aw. 7. 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