Harish CHander Taluja, Delhi V. ACIT, Circle- 63(1), New Delhi

ITA 2732/DEL/2019

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 2812 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 7 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-11-2020
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: C
• Assessment Year: 2015-2016
• Appeal Filed On: 29-03-2019
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: PARUL SINGH
• Assessee Lawyers: SANJEEV CHADHA
• Keywords: Principle of natural justice
• Section: 20

Judgement Text

1 ITA NO. 2732/DEL/2019 IN THE INCOME TAX APPELLAT E TRIBUNAL DELHI BENCH: G NEW DELHI BEFORE SHRI R. K. PANDA, ACCOUNTANT MEMBE R AND MS SUCHITRA KAMBLE, JUDIC IAL MEMBER ITA NO. 2732/DEL/2019 ( A .Y 2015-16) (THROUGH VIDEO CONFEREN CING) HARISH CHANDER TALUJA, 1300M PAN MANDI, SADAR BAZAR, NEW DELHI AAEPT8815C (APPELLANT) VS ACIT CIRCLE-63(1), NEW DELHI (RESPONDENT) APPELLANT BY SH. SANJEEV CHADHA, AR RESPONDENT BY MS. PARUL SINGH, SR. DR ORDER PER SUCHITRA KAMBLE, JM THIS APPEAL IS FILED BY THE ASSESSEE AGAINST THE O RDER DATED 29/1/2019 PASSED BY CIT(A)-38, DELHI FOR ASSESSMENT YEAR 20 15-16. 2. THE GROUNDS OF APPEAL ARE AS UNDER:- 1. THE ORDER DATED 29.01.2019 PASSED BY THE LEARNED COMMISSIONER OF INCOME TAX (CIT) APPEALS- 38, NEW DELHI IS BAD IN L AW AND ON FACTS AND DESERVES TO BE QUASHED. 2. THE ID. CIT(A) HAS ERRED IN PASSING THE EXPARTE ORDER WITHOUT CONSIDERING WRITTEN SUBMISSIONS SUBMITTED IN HER OFFICE NEXT DA Y OF DATE OF HEARING DUE TO ID CIT(A) UNAVAILABILITY IN OFFICE ON DATE OF HEARI NG. 2.1 THE ID. CIT(A) HAS ERRED IN PASSING THE EXPART E ORDER WITHOUT DATE OF HEARING 17.11.2020 DATE OF PRONOUNCEMENT 25.11.2020 2 ITA NO. 2732/DEL/2019 CONSIDERING SUBMISSIONS SENT ON EMAIL IN REPLY TO H ER NOTICE AND ALSO ON ITD PORTAL. 2.2. THE ID. CIT(A) HAS ERRED IN PASSING THE EXPAR TE ORDER WITHOUT DISCUSSING THE SAME ON MERITS OF THE APPEAL. 2.3. THAT PASSING AN EXPATE ORDER IS WITHOUT ANY BA SIS, ARBITRARY AND UNJUSTIFIABLE AND THE LEARNED CIT (APPEALS) ERRED I N PASSING THE SAME. 3. THE ASSESSEE IS AN INDIVIDUAL AND ENGAGED IN THE BUSINESS OF TRADING OF TIN SHEETS UNDER THE NAME AND STYLE OF HARISH CHAND ER & CO. THE ASSESSEE FILED RETURN OF INCOME FOR A.Y. 2015-16 ON 24.09.20 15 DECLARING AN INCOME OF RS. 56,57,380/-. THE ASSESSING OFFICER PASSED THE A SSESSMENT ORDER DATED 15.12.2017 THEREBY ASSESSING THE INCOME OF THE ASSE SSEE AT RS. 62,25,420/- MAKING DISALLOWANCE ON ACCOUNT OF INTEREST PAID TO RELATED PARTY. 4. BEING AGGRIEVED BY THE ASSESSMENT ORDER, THE ASS ESSEE FILED APPEAL BEFORE THE CIT(A). THE CIT(A) DISMISSED THE APPEAL OF THE ASSESSEE. 5. THE LD. AR SUBMITTED THAT THE CIT(A) HAS NOT GIV EN THE APPROPRIATE OPPORTUNITY OF HEARING TO THE ASSESSEE TO REPRESEN T HIS CASE. 6. THE LD. DR RELIED UPON THE ASSESSMENT ORDER AND THE ORDER OF THE CIT(A). 7. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE M ATERIAL AVAILABLE ON RECORD. IT IS PERTINENT TO NOTE THAT THE CIT(A) HA S NOT GIVEN ANY CATEGORICAL FINDING ON MERIT OF THE CASE AND ALSO DID NOT GIVE SUFFICIENT OPPORTUNITY OF HEARING TO THE ASSESSEE. THEREFORE, THE CIT(A) WAS NOT RIGHT IN DISMISSING THE APPEAL OF THE ASSESSEE WITHOUT GIVING PROPER OPPORT UNITY OF HEARING. HENCE, WE ARE REMANDING BACK THE ENTIRE ISSUE TO THE FILE OF THE CIT(A) TO BE DECIDED ON MERIT. NEEDLESS TO SAY, THE ASSESSEE BE GIVEN OPPO RTUNITY OF HEARING BY FOLLOWING PRINCIPLES OF NATURAL JUSTICE. THE APPEAL OF THE ASSESSEE IS PARTLY ALLOWED FOR STATISTICAL PURPOSE. 3 ITA NO. 2732/DEL/2019 8. IN RESULT, THE APPEAL FILED BY THE ASSESSEE IS PARTLY ALLOWED FOR STATISTICAL PURPOSE. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 25TH DAY OF NOVEMBER, 2020 . SD/- SD/- (R. K. PANDA) (SUCHITRA KAMBLE) ACCOUNTANT MEMBER JUDICIAL M EMBER DATED: 25/11/2020 R. NAHEED COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI