Sarvjeet Singh, Fatehabad V. ITO Ward - 2, , Fatehabad

ITA 2302/DEL/2019

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 4682 (ITAT-DELHI)
• Duration Of Justice: 2 month(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-05-2019
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: G
• Assessment Year: 2009-2010
• Appeal Filed On: 15-03-2019
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: S S RANA
• Keywords: Opportunity of being heard; Principle of natural justice
• Section: 148; 144

Judgement Text

1 ITA NO. 2302/DEL/2019 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: G NEW DELHI BEFORE SHRI R. K. PANDA, ACCOUNTANT MEM BER AND MS SUCHITRA KAMBLE, JUDIC IAL MEMBER ITA NO. 2302/DEL/2019 ( A .Y 2009-10) SARVJEET SINGH C/O BAL BHARTI SR. SECONDARY SCHOOL, AGGARWAL COLONY FATEHABAD, HARYANA AJWPS4790A (APPELLANT) VS ITO WARD-2 FATEHABAD HARYANA (RESPONDENT) APPELLANT BY SH. PIYUSH KAMAL, ADV. SH. LALIT MOHAN, ADV RESPONDENT BY SH. S. S. RANA, CIT(DR) ORDER PER SUCHITRA KAMBLE, JM THIS APPEAL IS FILED BY THE ASSESSEE AGAINST THE OR DER DATED 28.01.2019 PASSED BY CIT(A), HISAR FOR ASSESSMENT YEAR 2009-10 . 2. THE GROUNDS OF APPEAL ARE AS UNDER:- 1. THAT THE ORDER OF THE LEARNED ASSESSING AUTHOR ITY IS BAD IN LAW AGAINST FACTS AND EQUITY. 2. THAT LEARNED ASSESSING AUTHORITY MADE ASSESSMENT U/S 144 WITHOUT CONSIDERING THE FACTS, ERRED IN CALCULATING THE INC OME AND WITHOUT GIVING OPPORTUNITY OF BEING HEARD DATE OF HEARING 07.05.2019 DATE OF PRONOUNCEMENT 31.05.2019 2 ITA NO. 2302/DEL/2019 3. THAT LEARNED ASSESSING AUTHORITY WAS ERRED IN MA KING ADDITION OF RS. 5911400/- ON ACCOUNT OF DEPOSIT IN BANK 4. THAT LEARNED ASSESSING AUTHORITY WAS ERRED IN MA KING ADDITION OF RS. 3829480/- ON ACCOUNT OF DEPOSIT OF BANK. 3. THE ASSESSEE AND HIS WIFE SMT. VEERPAL KAUR WERE MAINTAINING A JOINT ACCOUNT NO. 06041930001326 WITH HDFC BANK, FATEHABA D. DURING THE F.Y. 2008-09 RELEVANT TO A.Y. 2009-10, HUGE CASH DEPOSIT S OF RS. 59,11,400/- WERE FOUND MADE IN HIS JOINT ACCOUNT ON DIFFERENT DATES AND DIFFERENT AMOUNT. THE CASE OF THE ASSESSEE HAS SELECTED THROUGH CASS AND STATUTORY NOTICES WERE ISSUED. DURING THE ASSESSMENT PROCEEDING SMT. VEERP AL KAUR SUBMITTED THAT ALL THE CASH DEPOSITS ENTRIES IN THE SAID JOINT ACC OUNT PERTAIN TO HER HUSBAND SH. SARVJEET SINGH. THE FACT WAS CONFIRMED BY SH. S ARVJEET SINGH AND STATED VIDE AFFIDAVIT THAT THE TRANSACTIONS WERE RELATED T O HIM. TAKING COGNIZANCE OF THE STATEMENT OF SH. SARVJEET SINGH, THE CASE OF SM T. VERPAL KAUR FOR THE A.Y. 2009-10 WAS ASSESSED AT THE RETURNED INCOME AND NO ACTION WITH REGARD TO THE SOURCE OF SAID CASH DEPOSITS ENTRIES WERE TAKEN IN HER HANDS. SINCE, SH. SARVJEET SINGH HAS ADMITTED THE FACT OF OPERATING T HE SAID JOINT ACCOUNT AND MAKING THE CASH DEPOSIT IN THE SAID BANK ACCOUNT TH E PROCEEDING U/S 147, OF THE ACT WERE INITIATED AND NOTICE U/S 148 WAS ISSUE D ON 28.03.2014 WHICH WAS SERVED UPON HIM ON 29.03.2014 REQUIRING THE ASSESSE E TO DELIVER THE RETURN OF INCOME FOR THE A.Y. 2009-10 WITHIN 30 DAYS FROM THE DATE OF SERVICE OF NOTICE. BUT THE ASSESSEE FAILED TO DO SO. UNDER THESE CIRC UMSTANCES THE ASSESSING OFFICER WAS LEFT WITH NO ALTERNATIVE BUT TO COMPLET E THE TIME BARRING ASSESSMENT TO THE BEST OF JUDGMENT U/S 144 OF THE A CT. AND MADE ADDITION OF RS. 59,11,400/- AND RS. 38,29,480/- U/S 68 OF THE A CT IN JOINT BANK ACCOUNT NO. 06041930001326 AND ACCOUNT NO. 11117547994 RESP ECTIVELY. 4. BEING AGGRIEVED BY THE ABOVE, THE ASSESSEE FILED APPEAL BEFORE THE CIT(A). THE CIT(A) DISMISSED THE APPEAL OF THE ASSESSEE ON ACCOUNT OF NON PROSECUTION. 3 ITA NO. 2302/DEL/2019 5. THE LD. AR SUBMITTED THAT THE ASSESSEE HAS FILED DETAILED REPLY BEFORE THE ASSESSING OFFICER AS WELL AS BEFORE THE CIT(A) WHICH WAS NEVER CONSIDERED BY BOTH THE REVENUE AUTHORITIES. THEREFORE, BOTH T HE ORDERS ARE EX-PARTE AND PRINCIPLE OF NATURAL JUSTICE HAS NOT BEEN PROPERLY FOLLOWED. 6. THE LD. DR SUBMITTED THAT AMPLE OPPORTUNITIES WE RE GIVEN BY THE ASSESSING OFFICER AS WELL AS BY THE CIT(A). THEREF ORE, THE ASSESSING OFFICER HAS RIGHTLY MADE ADDITIONS AND CIT(A) HAS RIGHTLY DISMI SSED THE APPEAL OF THE ASSESSEE. 7. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE M ATERIAL AVAILABLE ON RECORD. THE CIT(A) HAS DISMISSED THE APPEAL OF THE ASSESSEE SOLELY ON THE GROUND THAT THE ASSESSEES REPRESENTATIVE HAS NOT A PPEARED BEFORE THE AUTHORITIES BUT ON MERIT, THE CIT(A) HAS NOT AT ALL DISCUSSED AND DECIDED IN LIGHT OF THE REPLY FILED BY THE ASSESSEE BEFORE THE ASSESSING OFFICER AS WELL AS BEFORE THE CIT(A). THEREFORE, IN THE INTEREST OF J USTICE, IT WILL BE APPROPRIATE TO REMAND BACK THIS MATTER TO THE FILE OF THE CIT(A) F OR FRESH ADJUDICATION ON MERITS. NEEDLESS TO SAY, THE ASSESSEE BE GIVEN PR OPER OPPORTUNITY OF HEARING BY FOLLOWING PRINCIPLES OF NATURAL JUSTICE AND IT W ILL BE AN OBLIGATORY ON PART OF THE ASSESSEE TO COOPERATE THE ADJUDICATING/APPELLA TE AUTHORITY BY REMAINING PRESENT AT THE TIME OF HEARING. 8. IN RESULT, THE APPEAL OF THE ASSESSEE IS PARTLY ALLOWED FOR STATISTICAL PURPOSE. ORDER PRONOUNCED IN THE OPEN COURT ON 31 ST MAY, 2019 . SD/- SD/- (R. K. PANDA) (SUCHITRA KAMBLE) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 31/05/2019 R. NAHEED 4 ITA NO. 2302/DEL/2019 COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI DATE OF DICTATION 06.05.2019 DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER 07.05.2019 DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE OTHER MEMBER DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR. PS/PS DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE DICTATING MEMBER FOR PRONOUNCEMENT DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR. PS/PS .05.2019 DATE ON WHICH THE FINAL ORDER IS UPLOADED ON THE WEBSITE OF ITAT .05.2019 DATE ON WHICH THE FILE GOES TO THE BENCH CLERK .05.2019 DATE ON WHICH THE FILE GOES TO THE HEAD CLERK THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT REGISTRAR FOR SIGNATURE ON THE ORDER DATE OF DISPATCH OF THE ORDER