Smt. Kricpy Khera, Mohali V. ITO-Ward-6(3), Mohali

ITA 265/CHANDI/2020

• Counselvise Citation: [2022] 106 COUNSELVISE.COM (IT) 1398 (ITAT-CHANDIGARH)
• Duration Of Justice: 2 year(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-06-2022
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: Not Allotted
• Assessment Year: 2013-2014
• Appeal Filed On: 09-06-2020
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: PRIYANKA DHAR
• Keywords: Opportunity of being heard
• Section: 144; 250

Judgement Text

आयकर अपील य अ धकरण,च डीगढ़ यायपीठ “एकल सद यीय’, च डीगढ़ IN THE INCOME TAX APPELLATE TRIBUNAL, CHANDIGARH BENCH ‘SMC’ CHANDIGARH ीमती दवा संह, या#यक सद य BEFORE: SMT. DIVA SINGH, JM आयकर अपील सं./ ITA No. 265 & 266/CHD/2020 नधा रण वष / Assessment Year : 2013-14 Smt. Kricpy Khera, House No.81, Sector-70, Mohali. बनाम VS The ITO, Ward 6(3), Mohali. थायी लेखा सं./PAN No: AUQPK6040A अपीलाथ /Appellant यथ /Respondent नधा रती क! ओर से/Assessee by : None राज व क! ओर से/ Revenue by : Smt. Priyanka Dhar, Sr.DR स ु नवाई क! तार&ख/Date of Hearing : 02.06.2022 उदघोषणा क! तार&ख/Date of Pronouncement : 30.06.2022 आदेश/ORDER B o t h t h e s e a p p e a l s h a v e b e e n f i l e d b y t h e a s s e s s e e w h e r e i n t h e c o r r e c t n e s s o f t h e s e p a r a t e o r d e r s d a t ed 2 8 . 0 6 . 2 0 1 9 o f C I T ( A ) - 2 C h a n d i g a r h p e r t a i n i n g t o 2 01 3 - 1 4 a s s e s s m e n t y e a r i n Q u a n t u m p r o c e e d i n g s a n d i n t h e pe n a l t y p r o c e e d i n g s u n d e r S e c t i o n 2 7 1 ( 1 ) ( c ) o f I n c o m e T a x Ac t i s a s s a i l e d o n f o l l o w i n g g r o u n d s r e s p e c t i v e l y : ITA 265/CHD/2020 1. The order dated 28.06.2019 passed in appeal No.10295/2/18-19 by the ld. CIT(A)-2 u/s 144 of Income Tax Act,1961 is bad in law. 2. That the Ld. CIT (Appeals)-2 have passed the order in the absence of the appellant and exceeded in its jurisdiction to decide the appeal of the appellant on merit without giving an opportunity to be heard. ITA/265&266/CHD/2020 A.Y. 2013-14 Page 2 of 9 3. The Ld. CIT (Appeals)-2 below has wrongly presumed the income of the appellant as Rs. 26,52,242/- instead of declared income of Rs. 7,02,000/-. Therefore, the addition of the excess income is bad in law and facts which is liable to be deleted. 4. The Ld. ITO have exceeded its jurisdiction in the name of limited scrutiny and added huge amount of Rs. 19,50,242/- other than CASS subject matter wherein previous approval of the administrative Commissioner is required. Thus, assessment order passed in violation of Board's instructions and is certainly bad in law, which is liable to be quashed. 5. That on the law, facts and circumstances of the case, the Ld. Assessing Officer has grossly erred in imposing unreasonable penalty u/s 271 (1) (c) for addition of Rs. 76,842/- ; Rs. 6,00,000/- and Rs. 12,73,400/- allegedly from unexplained sources even when the same were not from unexplained income as such the addition is bad and liable for deletion. 6 . That the appellant craves leave for any addition/deletion/amendment of the grounds of the appeal on or before the disposal of the same. ITA 266/CHD/2020 1. The order of the ld. Commissioner of Income Tax (Appeals) passed Under Section 250 (6) dated 28-06-2019 is bad, against facts and law. 2. That the Ld. CIT (Appeals)-2 have passed the order in the absence of the appellant and exceeded in its jurisdiction to decide the appeal of the appellant on merit without giving an opportunity to be heard. 3. The Ld. CIT (Appeals)-2 below has wrongly presumed the income of the appellant as Rs. 26,52,242/- instead of declared income of Rs. 7,02,000/-. Therefore, the addition of the excess income and penalty is bad in law and is liable to be deleted. 4. That on the law, facts and circumstances of the case, the Ld. Assessing Officer has grossly erred in imposing unreasonable penalty u/s 271 (1) (c) for addition of Rs. 76,842/- ; Rs. 6,00,000/-and Rs. 12,73,400/- allegedly from unexplained sources even when the same were not from unexplained income as such the addition is bad and liable for deletion. 5. That on the law, facts and circumstances of the case, the impugned penalty order passed by the Ld. AO deserved to be quashed as the respondents had not clearly specified the limb of Section 271 (1) (c) for the penalty has been initiated and/or imposed. 6. That the appellant craves leave to add, amend or delete any of the ground of appeal before the same in taken up for final disposal. 2 . H o w e ve r , a t t he t i m e o f h e a r i n g , n o o n e w a s p r e se n t o n b e h a l f o f t h e a ss e s s e e . Th e a p p e a l w a s p a s s e d o v e r. I n t he s e c o n d r o u n d a l s o , t h e a s se s s e e r e m a i n e d u n r e p r e s e nte d . ITA/265&266/CHD/2020 A.Y. 2013-14 Page 3 of 9 3 . U l t i m a t e l y , c o n s i d e r i n g t h e r e c or d a f t e r h e a r i n g t h e l d . S r . D R , t h e a p p e a l w a s t a k e n u p f o r h e a r i n g i n t h e th i r d r o u n d w h e r e i n a g a i n t h e a s s e s se e r e m a i n e d u n r e p r e s e n te d . Th e o r d e r s h e e t r e f l e c t e d t h a t t h e d e l a y p l e a d e d r e q u i r e d t o b e a d d r e s se d w i t h s u p p o r t i n g e v i d e n c e s d e s p i te o p p o r t u n i t y r e m a in s u n s u b s t a n t i a t e d . A c c o r d i n g l y , i n t h e c i r c u m s t a n c e s , i t w a s d e e m e d a p p r o p r i a t e t o p r o ce e d w i t h t h e p r e s e n t a pp ea l e x - p a r te q u a t h e a s s e s s e e a p p e l l a n t o n m e r i t s o f t h e a p p l i cat i o n . 4 . Th e l d . S r . D R a d d r e s s i n g t h e d e l a y o f 1 8 4 d a y s po i n t e d o u t b y t h e R e g is t r y i n b o t h t h e a p p e a l s s u b m i t t e d th a t t he a p p e a l s o f t he a s s e s s e e s h o u l d b e d i s m i s s e d on t h i s c o u n t i t s e l f . I t w a s h e r s u b m i s s i o n i n v i t i n g a t t e n t i o n to t h e A f f i d a v i t d a t e d 0 2 . 0 7 . 2 0 2 1 p l a c e d o n r e c o r d t h a t d e s p i t e o p p or t u n i t y t he a s s e s se e h a s f a i l e d t o p l a c e o n r e c o r d a n y e v i d e n c e w h a t s o e ve r t o s h o w t h a t t h e r e w e r e a n y p sy c h i a t r i c d i s o r d e r s im p a c t i n g h e a l t h o f t h e a s se s se e a s p l e a d e d . I t w a s h e r s u b mi s s i o n t h a t i n f a c t o n 0 6 . 0 9 . 2 0 2 1 , t h e D i v i s i o n B e n c h d i r e c te d th e a s s e s s e e t o f i l e a n a f f i d a v i t o n a S t a m p P a p e r a s t h e e v i d e nce s o n r e c o r d o f s o m e Insight Brain & Mind Clinic attached as Annexure-I dated 19.06.2019 w h i c h h a s b e e n s t a m p e d a s “Not valid for Medico-legal Purpose” a s t h e c o r r e c t ne s s o f t h e d a t e a t t he t o p o f t h e A n n e x u r e -I d a te d a s 1 9 . 0 6 . 2 0 1 9 w a s q u e s t i o n ed b y t he B e n c h . I t w a s he r s u b m i s s i o n t h a t t h e s a i d d o c u m e n t a l o n g w i t h r e c o r d h a s b e e n r e p e a te d l y q u e st i o n e d b y d i f fe r e n t B e n c he s. ITA/265&266/CHD/2020 A.Y. 2013-14 Page 4 of 9 Th e s e d o c u m e n t s , i t w a s s u b m i t t e d , d o n o t d e m o n s t r at e a ny p s y c h i a t r i c p r o b l e m s o r o t h e r w is e j u s t i f y i n g t h e i no r d i n a te d e l a y a s s t a te d b y t h e a s s e s se e . I n f a c t , t h e d a te w r i t t e n a t t he t o p o f t h i s A n n e x u r e A - 1 , i t w a s r e - i te r a te d h a s b ee n q u e s t i o n e d b y t h e B e n c h w h i c h h a s b e e n w h y i t w a s re q u i r e d t o b e d e m o n s t r a t e d b y t h e a s se s se e by w a y o f a n a f f i d av i t . 4 . 1 Th i s a f f i d a v i t d e s p i t e o p p o r t u n i t y i t w a s h e r su b m i s s i o n h a s n o t b e e n f i l e d t i ll d a te . I t w a s a l s o h e r s u b mi s s i o n t h a t r e p e a t e d l y f o r m a k i n g g o o d t he e v i d e n ce s o p p o r t u n i ty h a s b e e n r e p e a t e d l y p r o v i d e d a l l a l o n g . D i r e c t i o n o f t he B e nc h h a s b e e n r e c o r de d r e q u i r i n g t h e a s se s se e t o f i l e A f f i d a v i t on b e i ng q u e s t i o n e d o n th e a u t h e n t i c i t y o f t h e d a t e o n t h e af o r e s a i d d o c u m e n t . I t w a s a l s o h e r s u b m i s s i o n r e f e r r i n g t o th e a f o r e s a i d a f f i d a v i t d a t e d 0 2 . 0 7 . 2 0 2 1 w h i c h t o o w a s w i t h u n s u pp o r t e d d o c u m e n t s . I t w a s h i g h l i g h t e d th a t i n p a r a 5 , t h e as s e s s e e p l e a d s t h a t d e l a y f r o m 2 5 . 0 3 . 2 0 2 0 t o 1 0 . 0 6 . 2 0 2 0 m a y b e c o n d o n e d o n a c c o u n t o f t h e l oc k d o w n . Th e s a m e r e a ds a s u n d e r : “5. That the accompanying appeal was drafted and prepared by counsel of the applicant and was sent to the applicant but due to the outbreak of Pandemic namely COVID-19 the applicant could not file the case thereafter as further delay of approx 78 days i.e. from 25.03.2020 to 10.06.2020 was occurred due to Lockdown as announced by the Govt. of India which is also liable to be condoned due to the circumstances which were beyond the control of the deponent.” 4 . 2 To t h i s e x t e n t , t h e l d . S r . D R s t a t e d t h a t s h e h a s n o o b j e c t i o n . ITA/265&266/CHD/2020 A.Y. 2013-14 Page 5 of 9 5 . H o w e ve r , t h e r e m a i n i n g d e l a y o f 1 6 7 d a y s f r o m 1 0. 1 0 . 2 0 1 9 t o 2 4 . 0 3 . 2 0 2 0 s t a t e d t o b e o n a cc o u n t o f t h e a s s e s se e ' s h e a l t h r e a s o n s , t he l d . S r . D R s t a t e s r e m a i n s u n d e m o n s t r a t ed o n f a c t s. Th e s e l f s e r v i n g s t a t e m e n t t h a t th e l a p se i s o n a c co u n t o f s o m e s e r v a n t a l s o , i t w a s s u b m i t t e d , i s d e f i c i e n t a n d i nc o m p l e t e a s t h e s e r v a n t a s r e f e r r e d t o i n p a r a 3 a n d 4 o f t h e Af f i d a v i t d a t e d 0 2 . 0 7 . 2 0 2 1 h a s n o t b e e n n a m e d n o r m a d e a v a i l a b l e b y w a y o f a n y a f f i d a v i t e t c . f o r c r o s s e x a m i n a t i o n , i f n e e d be . Th e r e l e v a n t e x t r a c t r e a d s a s u n d e r : “3. That the deponent could not take a follow up of her appeal at Ld. CIT (Appeals)-2 due to her health issues. But, the Ld. CIT (Appeals)-2 passed an ex-parte order dated 28.06.2019 and the said order was not communicated to the deponent personally as it was received by the servant of the deponent at her residence H.No.81, Sector 70 Mohali and during that period of time the deponent was undergoing an acute knowledge of the deponent timely and it came to the knowledge of the deponent in October' 2019 coincidently. 4. That an unintentional delay of 167 days approx from the date of knowledge i.e. 10.10.2019 to 24.03.2020, has occurred in filing the accompanying appeal due to the aforesaid circumstances which were beyond the control of the deponent.” 5 . 1 A c c o r d i n g l y , i t w a s h e r p r a y e r t ha t i t c a n n o t be t r e a te d t o b e s u f f i c i e n t e x p l a n a t i o n a n d t h e d e l a y , i t w a s he r p r a y e r m a y n o t b e c o n d o n e d . 6 . R e f e r r i n g t o t h e a p p l i c a t i o n f i l e d o n 2 6 . 0 7 . 2 0 2 1, i t w a s h e r s u b m i s s i o n t h a t t h e c o u n se l h a s p l e a d e d t h a t d es p i te t he b e s t e f f o r t s , t h e y c o u l d n o t f i l e a n y m e d i c a l e v i d en c e . A c c o r d i n g l y , i t w a s h e r s u b m i s s i o n t h a t a l r e a d y m o re t h a n a d e q u a te t i m e h a s b e e n g i ve n t o t h e a s se s se e t o s u pp o r t h e r ITA/265&266/CHD/2020 A.Y. 2013-14 Page 6 of 9 c l a i m a n d r e p e a t e d l y e v e r y t i m e t h e D e p a r t m e nt i s co m i n g p r e p a r e d t o a r g u e . 6 . 1 R e f e r e n ce w a s m a d e t o t h e h e a r i n g w h i c h t o o k p la c e o n 1 3 . 0 5 . 2 0 2 1 o n w h i c h d a t e t i m e w a s g i v e n t o t h e a s s es se e t o f i l e r e v i s e d C o n d o n a t i o n o f D e l a y a p p l i c a t i o n w i t h s u p p or t i n g d o c u m e n t s . 6 . 2 S i m i l a r l y o n 2 5 . 0 5 . 2 0 2 1 , t i m e w a s a g a i n g r a n te d f o r f i l i n g m e d i c a l e v i d e n ce s . 6 . 3 O n 2 9 . 0 7 . 2 0 2 1 , t h e e x p l a n a t i o n o f t h e a s se ss e e w a s c o n s i d e r e d t o b e v e r y g e ne r a l i s t i c a n d t i m e w a s g i ve n t o t he a s s e s se e t o re -f i l e c o m p r e h e n s i v e c o m p l e te d e t a i l s a n d C o n d o n a t i o n o f D e l a y a p p l i c a t i o n a n d A f f i d a v i t e t c . 6 . 4 O n 0 6 . 0 9 . 2 0 2 1 th e a s se s se e ' s c ou n s e l w a s d i r e c te d t o f i l e a n a f f i d a v i t o f t h e a s se s s e e o n a St a m p P a p e r . 6 . 5 I t w a s h e r s t a te m e n t a t B a r t h a t o n t h e s a i d d ate , t h e d a te o n t h e t o p l e f t c o r n e r o n t h e s p e c i f i c m e d i c a l e v i de n c e s ( A - 1 ) w a s q u e s t i o n e d b y t h e B e n c h . 6 . 6 Th e r e a f t e r , a g a i n t h e a p pe a l w a s a d j o u r n e d o n the r e q u e s t o f t h e a s s e s s e e on 1 1 . 1 1 . 2 0 2 1 . 6 . 7 Th u s , r e p e a te d l y t h e a s s e s se e h a s c h o s e n to r e ma i n u n r e p r e s e n te d . A c c o r d i n g l y , i t w a s h e r p r a y e r t h a t t h e a p p e a l o f t h e a s s e s s e e m a y b e d i s m i s s e d . ITA/265&266/CHD/2020 A.Y. 2013-14 Page 7 of 9 7 . F o r t h e r e c o r d , i t i s s e e n t h a t t h e n o t i ce se nt t o t he a s s e s se e ' s a d d r e s s ” S m t . K r i c p y K h e r a , H o u s e N o . 8 1 , S e c t o r 7 0 , M o h a l i ( P u n j a b ) h a s r e t u r n e d ‘ u n c l a i m e d ’ . ( A s p e r t he P o s t O f f i c e c o m m e n t s , t w o v i s i t s w e r e m a d e o n 2 3 . 0 3 . 2 0 2 2 a n d 2 4 . 0 3 . 2 0 2 2 ) . S i m i l a r p o s i t i o n w a s i n a p p e a l i n I TA 2 6 6 / C H D / 2 0 2 0 . 8 . A c c o r d i n g l y , o n th e b a s i s o f t h e se f a c t s a n d s u bm i s s i o n s , i t w a s h e r p r a ye r t h a t t he a p p e a l s o f t h e a s se s s e e m a y b e d i s m i s s e d i n - l i m i n e o n t h e p r e l i m i n a r y g r o u n d i t s e lf . 9 . I h a ve h e a r d t h e s u b m i s s i o n s a n d p e r u s e d t h e m a te r i a l o n r e c o r d . Th e f a c t s o n r e c o r d h a v e be e n a d d r e s se d a t l e n g th w h i l e e l a b o r a t i n g t h e a r g u m e n t s a d v a n c e d o n b e h a l f o f t he R e ve n ue . I t i s s e e n t h a t de s p i te a f f o r d i n g a d e q u a te o p p o r t u n i ty t o t h e a s s e s se e , n o e v i d e n c e s h a ve b e e n f i l e d t o s ho w t h a t t h e a s s e s se e w a s m e d i c a l l y i n c o m p e t e n t t o a c t . N o e v i de n ce s a r e a v a i l a b l e o n re c o r d t o s u p p o r t t h e b a l d c l a i m t h a t t h e d o c u m e n t s w e r e r e ce i v e d b y s o m e u n k n o w n s e r va n t . No c a r e h a s b e e n t a k e n to e i t h e r n a m e t h e se r v a n t o r f i l e an y a f f i d a v i t o f t h e se r v a n t . Th e l i m i t e d m e d i c a l e v i de n c e a v a i la b le o n r e c o r d h a s b e e n q u e s t i o ne d b y t h e C o - o r d i n a t e B e n c he s o n t he v a r i o u s d a t e s p o i n t e d o u t s p e c i f i c a l l y t h e t o p l e f t h a n d c o r n e r o f t h e d o c u m e n t i d e n t i f i e d a s A n n e x u r e -I t o A f f i d a vi t d a t e d 0 2 . 0 9 . 2 0 1 7 w h e r e a d a te i s m e n t i o n e d . A s p e r th e st a te m e n t m a d e b y t h e l d . S r . D R a t B a r t h e a u t h e n t i c i t y o f t he d a te h a s ITA/265&266/CHD/2020 A.Y. 2013-14 Page 8 of 9 b e e n q u e s t i o ne d b y t h e C o - o r d i n a t e B e n c h . Th e s p e c if i c o r d e r s h e e t d a te d 0 6 . 0 9 . 2 0 2 1 “ th e a s s e s s e e ’ s c o u n s e l i s d i r e c t e d t o f i l e A f f i d a v i t o n S t a m p P a p e r ”. Th e r e le v a n t e x tr a c t r e a d s a s u n d e r : 6 . 9 . 2 0 2 1 P r e s e n t : F o r a s s e s s e e : S h r i R a h u l B h a n o t , A d v o c a t e F o r D e p t . : S m t . P r i y a n k a D h a r , J C I T T h e a s s e s s e e ' s c o u n s e l i s d i r e c t e d t o f i l e a f f i d a v it o n S t a m p P a p e r a n d t h e c a s e i s a d j . t o 3 0 . 0 9 . 2 0 2 1 . ( S d / - ( S d / - ) ( R . L . N e g i ) ( N . K . S a i n i ) 1 0 . D e s p i t e t h i s , n o s u c h d o c u m e n t h a s b e e n f i l e d . Th e r e c o r d s h o w s t h a t a d j o u r n m e n t w a s s o u g h t o r a l l y o n 1 1 . 1 1 . 20 2 1 w h i c h w a s g r a n t e d . E v e n o t h e r w i s e t h e d o c u m e n t s o n r e c o r d d o n o t e s t a b l i s h m e d i c a l i n c o m p e t e n c y . F u r t h e r , i t i s a l so s t a m p e d t h e r e i n t h a t i t i s n o t a medico-legal evidence. M o r e o v e r , t he o p p o r t u n i t i e s g i v e n t o t h e a s s e s s e e t o f i l e a p p r o p ri a t e a f f i d a v i t a d d r e s s i n g d a te a n d p e r i o d o f m e d i c a l ce r t if i c a te re l ie d u p o n r e m a i n s u n a d d r e s s e d . A c c o r d i n g l y , i n t he a b se n ce o f a n y r e p r e s e n t a t i o n or s u p p o r t i n g e v i d e n ce s , t h e de l a y in f i l i n g t he a p p e a l u p t o 2 4 . 0 3 . 2 0 2 0 r e m a i n s u n a d d r e s se d . I n t h e se p e c u l i a r f a c t s a n d c i r c um s t a n c e s o f t he c a s e w h e r e t h e a s se ss e e i s u n a b l e t o a v a i l of t h e o p p o r t u n i t i e s p r o v i d e d i n g oo d f a i t h , t h e a p p e a l s o n t h e g r o u n d s o f d e l a y o f a b o u t 1 6 7 d a y s re m a i n i n g u n e x p l a i ne d , t h e a p p e a l s a r e d i s m i s s e d . W h i l e s o d ir e c t i ng o p p o r t u n i t y i s g i v e n t o t h e a s se s s e e t o p r a y f o r a r e c a l l o f t h i s o r d e r i n t he e ve n t u a l i t y t he a s s e s se e i s a b l e t o g iv e n a n ITA/265&266/CHD/2020 A.Y. 2013-14 Page 9 of 9 u n d e r t a k i n g t h a t s h e i s a b l e t o a d d r e s s t h e d e l a y po i n t e d o u t b y t h e R e g i s t r y by f i l i n g a p p r o p r i a t e d o c u m e n t s a n d e v i d e n ce s. S a i d o r d e r w a s p r o n o u n c e d i n th e O p e n C o u r t a t t h e t i m e o f h e a r i n g i t se l f . 1 0 . I n t h e r e s u l t , t h e a p p e a l o f t h e a ss e s s e e a r e di s m i s s e d . 1 1 . S i n c e t he f a c t s , c i r c u m s t a n c e s o n t h e d e l a y i n f i l i n g o f t h e a p p e a l r e m a i n t h e s a m e , f o r s i m i l a r r e a s o n s a n d s i mi l a r d i r e c t i o n s , I TA 2 6 6 / C H D / 2 0 2 0 i s a l s o d i s m i s s e d . 1 2 . I n t he r e s u l t , b o t h t h e a p p e a l s o f t h e a s se ss e e a r e d i s m i s s e d . O r d e r p r o n o u n c e d i n t h e O p e n C o u r t o n 3 0 t h J u n e , 2 0 2 2 . S d / - ( दवा संह ) (DIVA SINGH) या#यक सद य/Judicial Member “प ू नम” आदेश क! त,ल-प अ.े-षत/ Copy of the order forwarded to : 1. अपीलाथ / The Appellant – 2. यथ / The Respondent – 3. आयकर आय ु /त/ CIT 4. .आयकर आय ु /त (अपील)/ The CIT(A) 5. -वभागीय त न2ध, आयकर अपील&य आ2धकरण, च4डीगढ़/ DR, ITAT, CHANDIGARH 6. गाड फाईल/ Guard File आदेशान ु सार/ By order, सहायक पंजीकार/ Assistant Registrar