Sh. Sandeep Kumar, Jind V. ITO, Ward -1, Jind

ITA 228/CHANDI/2023

AI Insights

This case involves an appeal by Shri Sandeep Kumar against the order of the Ld. CIT(A), NFAC Delhi, which upheld the assessment order passed by the Ld. AO under section 144 r/w 147 of the Income Tax Act, 1961. The assessment was based on unreported cash deposits of Rs. 12,00,000 in the assessee's bank account and additional income from trading of commodities. The assessee contended that he did not receive the notices issued under sections 142(1) and 148, and only became aware of the proceedings upon receiving the impugned order. The tribunal, considering the circumstances, decided to set aside the matter back to the Ld. CIT(A) for a fresh decision after providing the assessee an opportunity to be heard.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 135465 (ITAT-CHANDIGARH)
• Duration Of Justice: 4 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-09-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: Not Allotted
• Next Hearing Date: 03-09-2023
• Assessment Year: 2011-2012
• Appeal Filed On: 20-04-2023
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Opportunity of being heard; Set aside
• Section: 147; 148; 144; 142(1); 250; 69A

Judgement Text

आयकर अपीलीय अिधकरण,च᭛डीगढ़ ᭠यायपीठ “एस.एम.सी” , च᭛डीगढ़ IN THE INCOME TAX APPELLATE TRIBUNAL, CHANDIGARH BENCHES, “SMC” CHANDIGARH ᮰ी िवᮓम ᳲसह यादव, लेखा सद᭭य BEFORE: SHRI. VIKRAM SINGH YADAV, AM आयकर अपील सं./ ITA No. 228/Chd/2023 िनधाᭅरण वषᭅ / Assessment Year : 2011-12 Shri Sandeep Kumar S/o Mange Ram, H.No. 456 Lown Khana Patti, Lawn Narwana Jind, 126116, Haryana बनाम ITO Ward (1), Jind ᭭थायी लेखा सं./PAN NO: BWFPK7730R अपीलाथᱮ/Appellant ᮧ᭜यथᱮ/Respondent िनधाᭅᳯरती कᳱ ओर से/Assessee by : Shri Gurjeet Singh, CA राज᭭व कᳱ ओर से/ Revenue by : Shri Dharam Vir, JCIT, Sr. DR सुनवाई कᳱ तारीख/Date of Hearing : 04/09/2023 उदघोषणा कᳱ तारीख/Date of Pronouncement : 04/09/2023 आदेश/Order PER VIKRAM SINGH YADAV, AM This is an appeal filed by the Assessee against the order of the Ld. CIT(A), NFAC Delhi dt. 27/02/2023 passed under section 250 of the Income Tax Act, 1961 pertaining to A.Y. 2011-12 wherein the assessee has taken the following grounds of appeal: 1. That on the facts, circumstances and legal position of the case, the Worthy CIT(A), NFAC in Appeal no. CIT (A), Hisar/10102/2019-20 has erred in passing order dtd. 27.02.2023 in contravention of provisions of S. 250 of the Income Tax Act, 1961. 2. That on the facts, circumstances and legal position of the case, Worthy CIT(A) has erred in upholding assessment order passed by Ld. AO u/s 144 even when the same was passed without service of notice u/s 142(1). 3. That on the facts, circumstances and legal position of the case, Worth} CIT(A) has erred in confirming the addition of Rs. 12,01,000 made by Ld. AO u/s 69A in regard to cash deposits in the bank account. 4. That on the facts, circumstances and legal position of the case, Worthy CIT(A) has erred in confirming the addition of Rs. 1,00,000/- made by Ld. AO on account of profit/income from trading of commodities on his own assumptions, surmises and without considering the facts of the case. 2 5. That on law, facts and circumstances of the case, the impugned orders passed by Worthy CIT(A) as well as by the Ld. AO deserves to be set aside since both these orders were passed and proceedings conducted in extreme haste and without affording reasonable opportunity of being heard. 6. That the appellant craves leave for any addition, deletion or amendment in the grounds of appeal on or before the disposal of the same. 2. Briefly the facts of the case are that the assessee has not filed any ITR for the A.Y. 2011-12. On the basis of information available, it was noticed that during the year under consideration the assessee had made cash deposit of Rs. 12,00,000/- in his saving bank account maintained with Central Bank of India. In view of these facts, notice under section 148 was issued to the assessee on 27/03/2018 but assessee did not filed any ITR in response to this notice. Again Notice under section 142(1) was issued on 14/06/2018 and 16/10/2018 on the address available on the record calling for information. In response to the said notices, assessee neither attended the assessment proceedings nor furnished any information as required vide notice under section 142(1). Basis information available on record/gathered u/s 133(6), the AO passed an order u/s 144 r/w 147 assessing the total income of the assessee at Rs. 13,01,000/-. 3. Against the said order, the assessee moved an appeal before the Ld. CIT(A) who has since sustained the said additions. During the course of hearing, the ld AR submitted that the assessee never received any notices and the notices so issued and mentioned in the impugned order were only uploaded on the tax portal and the assessee had no knowledge of the same at the relevant point in time and it is only on receipt of the impugned order, he came to know that the notices have been issued and the order has been passed confirming the additions made by the AO. It was submitted by the ld AR that the assessee may be provided an opportunity of being heard and file necessary submissions and the matter may accordingly be set-aside to the file of the ld CIT(A) or the AO as the Bench may deem appropriate. 4. Per contra, the Ld. Sr. DR submitted that the assessee was issued several notices however there was neither any appearance nor any adjournment application was filed. Thereafter, a fresh notice was issued on 03/02/2023 and again there was no 3 compliance on the part of the assessee therefore the Ld. CIT(A), NFAC, Delhi has passed the impugned order based on the material available on the record. 5. Heard the rival contentions and perused the material available on the record. Given the limited prayer for setting aside the impugned order in view of non prosecution on the part of the assessee and considering the facts and circumstances of the present case where the assessee was prevented from responding to the notices and attending to the appellate proceedings before the Ld. CIT(A), NFAC, Delhi for lack of communication, I deem it appropriate to set aside the matter back to the file of the Ld. CIT(A) to decide the same afresh after providing reasonable opportunity to the assessee. 6. In the result, appeal of the assessee is allowed for statistical purposes. (Order pronounced in the open Court on 04/09/2023 ) Sd/- िवᮓम ᳲसह यादव (VIKRAM SINGH YADAV) लेखा सद᭭य / ACCOUNTANT MEMBER AG Date: 04/09/2023 आदेश कᳱ ᮧितिलिप अᮕेिषत/ Copy of the order forwarded to : 1. अपीलाथᱮ/ The Appellant 2. ᮧ᭜यथᱮ/ The Respondent 3. आयकर आयुᲦ/ CIT 4. िवभागीय ᮧितिनिध, आयकर अपीलीय आिधकरण, च᭛डीगढ़/ DR, ITAT, CHANDIGARH 5. गाडᭅ फाईल/ Guard File आदेशानुसार/ By order, सहायक पंजीकार/ Assistant Registrar