Gafoor Deen, Yamunanagar V. ITO, Ward -5, Yamunanagar

ITA 231/CHANDI/2023

AI Insights

The case involves an appeal by Gafoor Deen against the order of the CIT(A), National Faceless Appeal Centre, Delhi, which upheld an ex-parte assessment order by the A.O. for the Assessment Year 2012-13. The Assessee had received compensation under the Motor Vehicle Act and interest on bank deposits, which he invested in FDRs. Due to the serious illness of his local counsel, the Assessee could not comply with the A.O.'s notices, leading to an ex-parte assessment adding Rs. 5,30,201 as unexplained income. The CIT(A) upheld this decision, noting the absence of any evidence from the Assessee regarding the unexplained deposit. The Tribunal, however, found that the CIT(A) had not adequately considered the merits or the material on record and thus remanded the case for a fresh assessment.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 128413 (ITAT-CHANDIGARH)
• Duration Of Justice: 4 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-09-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 04-09-2023
• Assessment Year: 2012-2013
• Appeal Filed On: 23-04-2023
• Other Referred Cases: S. Velu Palandar Vs. DCIT
• Laws Referred To: Motor Vehicle Act, Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Principle of natural justice
• Section: 69

Judgement Text

आयकर अपीलȣय अͬधकरण,चÖडीगढ़ Ûयायपीठ, चÖडीगढ़ IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH, ‘B’, CHANDIGARH BEFORE SHRI A.D. JAIN, VICE PRESIDENT & SHRI VIKRAM SINGH YADAV, ACCOUNTANT MEMBER आयकर अपील सं./ ITA No. 231/CHD/2023 Ǔनधा[रण वष[ / Assessment Year : 2012-13 Gafoor Deen R/o 125, Village Kalyanpur, PO Sadikpur, Teh Bilaspur, Yamunanagar Haryana – 135003 Vs. बनाम The ITO, Ward 5, Yamunanagar èथायी लेखा सं./PAN No: BAUPD3179A अपीलाथȸ/Appellant Ĥ×यथȸ/Respondent Ǔनधा[ǐरती कȧ ओर से/Assessee by : Sh. Navdeep Monga, Advocate for Shri Avneet Singh, Advocate राजèव कȧ ओर से/ Revenue by : Smt. Amanpreet Kaur, Sr.DR स ु नवाई कȧ तारȣख/Date of Hearing : 05.09.2023 उदघोषणा कȧ तारȣख/Date of Pronouncement : 05.09.2023 आदेश/Order Per A.D. Jain, Vice President: This is assessee’s appeal against the order of the ld. CIT(A), National Faceless Appeal Centre (NFAC), Delhi, dated 23.02.2023, for the Assessment Year 21012-13. 2. At the outset, it has been submitted by the ld. Counsel for the Assessee that the sole grievance of the Assessee is that the ld. CIT(A) 231-Chd-2023 – Gafoor Deen, Yamunanagar 2 has concluded the proceedings without proper perusal of the assessment record and dismissed the appeal of the Assessee by upholding the ex-parte order of the AO. 3. It has been submitted by the ld. Counsel for the Assessee that the Assessee had received compensation under Motor Vehicle Act in amounting to Rs. 4,84,000/- and had also received interest on bank deposits (Saving Account and FDR) and that the Assessee invested the aforesaid money by purchasing FDR which was renewed from time to time. The ld. Counsel for the Assessee submitted that the notices issued by the A.O. could not be complied with by the Assessee due to serious illness of the then local Counsel of the Assessee. It has been submitted by the ld. AR that the A.O. proceeded to frame an ex-parte assessment vide order dated 21.11.2019 and made and addition of Rs. 5,30,201/- as unexplained income of the Assessee in pursuance to the provisions of section 69 of the Act. It has further been submitted that an appeal had been preferred before the ld. CIT(A) but the counsel of the Assessee had inadvertently opted ‘NO’ option in Colum No.12 of Form No. 35 (prescribed form), with respect of availability of any documentary evidence. In appeal before the ld. CIT(A), the ld. CIT(A) upheld the ex-parte order passed by the A.O. by categorically stating that no evidence was filed by the Assessee in regard to the unexplained deposit and the appeal of the Assessee was dismissed. 231-Chd-2023 – Gafoor Deen, Yamunanagar 3 4. Before us, it has been submitted that the Assessee is in possession of all the evidence to prove his claim and there was neither any concealment of income nor the Assessee had furnished any inaccurate particulars of income and as such the action of the ld. CIT(A) in upholding the ex-parte order of the AO is totally unfair, arbitrary and unjustified. It is submitted that the Assessee has a fair case on merits and, therefore, prayed that keeping in view the principles of natural justice, the Assessee may be given a reasonable opportunity of hearing of the appeal before the A.O. and the appeal may be directed to be decided on merits. 5. The ld. DR, on the other hand, relied on the orders of the lower authorities. 6. Heard. We have gone through the order of the ld. CIT (A) and find that the ld. CIT(A) has dismissed the appeal of the Assessee by merely upholding the ex-parte order of the AO, without considering the material available on record, and also without going into the merits of the case. As such, an opportunity of hearing requires to be given to the Assessee to represent his case fully before the A.O. Even otherwise, it is trite [‘S. Velu Palandar Vs. DCIT’ 83 ITR 683 (Mad.)] and incumbent on the authority to decide an appeal on merit. The ld. D.R., though, has placed reliance on the orders of the authorities 231-Chd-2023 – Gafoor Deen, Yamunanagar 4 below, but has no objection if the matter is remanded to the AO for adjudication afresh. 7. In view of the above, in the interest of justice, the matter is remitted to the file of the A.O., to be decided afresh on merit, in accordance with law, on affording due and adequate opportunity of hearing to the Assessee. The Assessee, no doubt, shall cooperate in the fresh proceedings before the A.O. All pleas available under the law shall remain so available to the assessee. Ordered accordingly. 8. In the result, for statistical purposes, the appeal is treated as allowed for statistical purposes. Order pronounced on 05.09.2023. Sd/- Sd/- (VIKRAM SINGH YADAV) ( A.D. JAIN ) Accountant Member Vice President Dated : 05.09.2023 “आर.के.” आदेश कȧ ĤǓतͧलͪप अĒेͪषत / Copy of the order forwarded to : 1. अपीलाथȸ/ The Appellant 2. Ĥ×यथȸ/ The Respondent 3. आयकर आय ु Èत/ CIT 4. ͪवभागीय ĤǓतǓनͬध, आयकर अपीलȣय आͬधकरण, चÖडीगढ़/ DR, ITAT, CHANDIGARH 5. गाड[ फाईल/ Guard File आदेशान ु सार/ By order, सहायक पंजीकार/ Assistant Registrar