Chhaya Pandey, New Delhi V. ITO ward-47(3), New Delhi

ITA 2521/DEL/2019

• Counselvise Citation: [2022] 106 COUNSELVISE.COM (IT) 8420 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 4 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-08-2022
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2014-2015
• Appeal Filed On: 21-03-2019
• Result in Favour of: Matter Remanded
• Court: TRIBUNAL
• Assessee Lawyers: PANKAJ DADU
• Keywords: Opportunity of being heard

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, DELHI BENCH: ‘SMC’ NEW DELHI BEFORE SHRI SAKTIJIT DEY, JUDICIAL MEMBER ITA No.2521/Del/2019 Assessment Year: 2014-15 Smt. Chhaya Pandey, 2852, First Floor, Chailpuri, Kinari Bazar, Chandni Chowk, Delhi Vs. Income Tax Officer, Ward-47(3), New Delhi PAN :AGYPP0657J (Appellant) (Respondent) ORDER This is an appeal by the assessee against order dated 17.01.2019 of learned Commissioner of Income Tax (Appeals)- 16, New Delhi, for the assessment year 2014-15. 2. The dispute in the present appeal is confined to addition of amount of Rs.34,83,095/-. Briefly the facts are, the assessee is a resident individual. For the assessment year under dispute, the assessee filed her return of income on 03.03.2015 declaring total income of Rs.3,78,580/-. Assessee’s case was selected for limited Appellant by Sh. Pankaj Dadu, CA Respondent by Sh. Om Parkash, Sr. DR Date of hearing 04.08.2022 Date of pronouncement 11.08.2022 ITA No. 2521/Del/2019 AY: 2014-15 2 | P a g e scrutiny. In course of assessment proceeding, the Assessing Officer noticed that during the year under consideration, the assesse had deposited cash amounting to Rs.56,77,000/- in three different bank accounts maintained by her. Therefore, he called upon the assessee to explain the source of the cash deposits. In response to the query raised by the Assessing Officer, the assessee furnished a reply by stating that she runs a beauty parlour from her home. She submitted, her only daughter, Mrs. Nandini Hemnani, runs a boutique of ladies garments in the same premises. She submitted, the cash deposits in the bank accounts were out of the receipts by her as well as her daughter. Further, the assessee submitted, she has availed loan from five persons. After examining the submissions of the assessee and documents produced, the Assessing Officer was not convinced. After giving credit for the gross receipts of business declared by the assessee, the Assessing Officer added back an amount of Rs.46,18,785/-. Though, the assessee contested the aforesaid addition before learned Commissioner (Appeals), however, he granted partial relief to the assessee by reducing the addition to Rs.34,83,095/-. 3. Before me, learned counsel appearing for the assessee submitted that the addition has been made without providing ITA No. 2521/Del/2019 AY: 2014-15 3 | P a g e proper opportunity of being heard to the assessee. He submitted, before the first appellate authority, though, the assessee expressed her willingness to produce the loan creditors, however, without providing such opportunity to the assesse, learned Commissioner (Appeals) closed the proceedings. He submitted, given an opportunity, the assessee is ready to produce the loan creditors before the departmental authorities to substantiate her claim. 4. Learned Departmental Representative did not express any serious objection to assessee’s request for restoration of the issue to the Assessing Officer for enabling her to produce the loan creditors. 5. I have considered rival submissions and perused the materials on record. The limited grievance of the assessee is, she was not given proper opportunity to produce the loan creditors to prove the source of cash deposit. Considering the submission of learned counsel for the assessee that the assessee is ready and willing to produce the loan creditors to prove the loan transactions, I deem it appropriate to restore the issue to the file of the Assessing Officer for fresh adjudication. To enable the assessee to produce the loan creditors and other materials to explain the source of cash ITA No. 2521/Del/2019 AY: 2014-15 4 | P a g e deposit in the bank account. Grounds are allowed for statistical purposes. 6. In the result, the appeal is allowed for statistical purposes. Order pronounced in the open court on 11 th August, 2022 Sd/- (SAKTIJIT DEY) JUDICIAL MEMBER Dated: 11 th August, 2022. RK/- Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(A) 5. DR Asst. Registrar, ITAT, New Delhi