Amarjeet Kaur Bahri Individual, New Delhi V. DCIT Center Circle-7, Delhi

ITA 2762/DEL/2022

AI Insights

The case involves an appeal by Amarjeet Kaur Bahri against the order of the Commissioner of Income Tax (Appeals)-XXIV, New Delhi, which arose from the assessment order passed by the Assessing Officer under Section 143(3) read with Section 153C of the Income Tax Act, 1961 for the Assessment Year 2015-16. The primary contention was the rejection of the appeal by the CIT (A) on technical grounds without considering the merits, as the grounds of appeal were allegedly not attached to Form 35. The assessee argued that this was a curable defect and that the CIT (A) failed to consider the written submissions made on each ground of appeal. The Tribunal found merit in the assessee's arguments and decided to set aside the CIT (A)'s order and restore the matter for a fresh decision.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 121758 (ITAT-DELHI)
• Duration Of Justice: 4 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-04-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 17-04-2023
• Assessment Year: 2015-2016
• Appeal Filed On: 23-11-2022
• Other Referred Cases: Kishinchand Chellaram vs CIT (1980) 125 ITR 713 (SC), Andaman Timber Industries vs CCE 281 CTR 241 (SC), Tata Capital vs 443 ITR 411 (Bom)
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 6; 28; 15; 13; 22; 153C; 20

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “SMC” DELHI BEFORE SHRI KUL BHARAT, JUDICIAL MEMBER & SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER I.T.A No.2762/DEL/2022 Assessment Year 2015-16 Amarjeet Kaur Bahri Individual, N-8, Rajouri Garden, New Delhi. v. DCIT, Central Circle-7, Delhi. TAN/PAN: AAAPB0902A (Appellant) (Respondent) Appellant by: Shri S.C. Singhal, CA Respondent by: Shri Mohd. Gayasuddin Ansari, CIT-DR Date of hearing: 18 04 2023 Date of pronouncement: 18 04 2023 O R D E R PER PRADIP KUMAR KEDIA, A.M.: T he capti oned app eal has b ee n f il ed b y the A sse ssee a gainst the order of t he Co mmiss i oner of Income Ta x (A ppeals )-XX IV , N ew D elhi ( ‘C IT (A )’ i n s hor t) da te d 30. 09. 2022 a rising fr om the assess me nt orde r dat ed 30. 12. 20 21 pass ed by th e Assessing O fficer (A O ) u nder Sec ti on 143 (3) r. w . Section 1 53C of the Income T ax A ct, 1961 (the Act ) conc er ning A Y 2015-16. 2. T he grou nds of appea l ra ised b y the assesse e read as unde r: “ T he l d. C I T (A ) e r r e d i n r e j e c t i n g t h e a p pe a l w i t h out g oi n g i n t o m e r it s / g r o un d on a w r o ng p l e a t ha t t he g r o u n d s of a pp e a l w e r e n ot a t ta c h e d t o F r o m 3 5 . A lt e r n a t iv e l y i t i s a c u r a bl e de f e c t a n d n o e f f e c ti v e s te p w as t a k e n b y C I T (A ) . 2 . T he r e pl y / w r i t t e n s u bm i s s i o ns a d m i t t e d b y C IT (A ) t o h a v e b e e n f i l e d on 0 5/ 0 7 /2 0 22 w e r e p oi n t w i s e o n e ac h g r o un d s o f a pp e al n ar r at i n g f ac t s an d l aw a n d w e r e g r o un d s o f a pp e al . C I T ( A ) I.T.A No.2762/Del/2022 2 r e j e c t i ng a p p e al w i t ho ut r e ad i ng an y t h i n g ou t of i t. 3 . T he l e ar ne d AO e r r e d i n n o t f o l l ow i n g th e t im e sc he d ul e gi v e n in s e c 13 2 ( 9 A ), m a k i ng t h e a s s t . or de r i n v a l i d. Th e s ea r c h A O h an d e d o v e r pa p e r s t o ap pa l l a n t s A O m uc h b e y o n d 6 0 da y s o f la s t a ut h o r is a t i o n . 4 . A s n o m o ne y , b ul l i o n, j e w e l l e r y o r ot h e r v a lu a ble a c t i c l e o r th i n g w as s e i z e d n or an y bo o k s o f a c c ou nt s o r d oc u m e n t s pe r t ai n in g t o a s s e s s e e a s p e r s e c 1 53 C , ju r i s d i c t i on t o t h i s A O doe s n o t a r i s e . T he a pp l i c at i o n o f s e c t i o n 15 3 C i s n o t t h e r e , t h e p r o c ee di n gs al l t hr ou g h w e r e w i t h ou t v a li d p ow e r g i v e n i n l a w . 5 . S a t i s f ac t i o n n ot e f or i s s ui n g 1 53 C n o t i c e i s t o b e r e c or de d by A O h av i n g ju r i s d i c t i on o v e r t h e c as e of ass e s s e e . I T O , W a r d 4 3 ( 3 ). D e l h i w as th e A O b u t s a t i s f ac t i o n n o t e dt 0 5 / 0 1 / 20 21 i s s i g n e d by s o m e o t he r o f f i c e r . S a t i s f a c ti o n s ho u l d b e of t h e A 0 a n d o f no o ne e l s e . I n a b s e n c e of v al i d s at i s fa c t i on n o t e , no t i c e a n d s u b s e q u e nt p r o c e e d i ng s ar e al l in v a li d . T r a n s f e r of j ur i s di c t io n h a s b e e n a s s u m e d by C I T (A ) w i t h n o e v i de n c e o n f i l e . 6 . T he s a t i s f ac t i o n n o t e dt 05 / 01 / 2 02 1 s a y do ng l e of J B L . c o n t ai n e d d at a f or 2 y e ar s 20 1 5- 16 a nd 20 1 6 - 17 . E v e n t h e n n oti c e u s 15 3 C w as i s s u e d f o r a l l 6 y e a r s f r o m a s s t. Yr 2 01 1 -1 2 o nw a r d s . A s p e r 3 94 I T 7 5 8 (D e l h i ) w i t ho u t a ny m a t e r i a l p l ac e d o n re c or d , i n v o c a ti o n of 1 5 3 C ( 1 ) f o r s e v e r a l y e ar s i s n ot j u st i f i e d. 7 . T he A O ha s e r r e d g r o s s l y i s no t c o ns i de r i n g a nd pa s s i n g a ny o r d e r t o o b j e c t i o n r ai s e d i n l e t te r f il e d o n I . T p or t al m uc h b e f o r e f i na l o r d e r . T he A O m a y d i s s e n t / a gr e e w i t h t h e p oi n t s r a i s e d b ut k e e pi n g s i l e nt t he r e o n i s n ot a s pe r l aw a nd m ak e s t he f i n al or d e r b ad i n l aw . S e pa r a t e l y or i n f in a l or de r , no c o ns i de r a t i o n i s th e r e f o r a n y p o in t s r a i s e d i n o bj e c t i o n l e t te r . I t ha s cha l l e n g e d ba s i c a s s u m p t i o n o f j u r i s d ic t i o n a n d p r o c e d u r al l a p s e s . 44 3 I T 4 1 1 (B om ) Ta t a C a pi t a l . 8 . T he A O h as m ad e r e l ia n c e s ol e l y o n t h e s t at e m e n t of M r K u s h a r g J i nd a l , Ms P ar ul A h l uw a li a e t c . J B L. I n l e tt e r s d t 14 / 11 / 2 0 2 1 a n d 2 0/ 1 2 / 2 0 2 1 a w r i t t e n r e q ue s t w as m a d e b e f o r e t he A t o p r o v i d e c o py o f t he i r s t a t e m e nt s an d s o ug h t t he o p p o r t u n i t y t o cr os s e x am i ne t h e m . T h e A O ne v e r a l l ow e d t h e c o p y o r c r o s s e x a m i nat i o n o pp o r t un i t y t o a s s e s s e e a nd i s a ga i ns t t h e p r i nc i p le o f n a t ur a l j u s t i c e an d l e a d s t o nu l l i t y - K i s h i nc h an d C he l l a r a m v / s C I T ( 1 9 8 0 ) 1 25 I T 7 13 (S C ) a nd A nd a m an Ti m b e r i nd s v s C C E 28 1 C T R 2 41 (S C ), 39 7 I T 8 2 ( D e l h i ) . T hi s i s o n l y a nd s o l e e vi d e n c e w i t h t he A O w h ic h i s n ow n ot a g o o d p i e c e of e v i d e n c e . 9 . Th e Id . A O h a s f ai l e d t o e s t a b li s h t h e l i nk b e t we e n al l e g e d a c c o u nt i n H a z i r J o hr i do n g l e o f J B L a n d t he a s s e s se e . In s p i t e of f i r m d e ni a l i n l e t t e r s f i l e d b e f or e h i m , t h e A O di d no t ob t ai n t he I.T.A No.2762/Del/2022 3 b an k s t at e m e n t f r o m b an k t o h a v e c o nf i r m e d de t a i l th a t t he s a i d l e dg e r ac c o u n t w a s t h at of t he as s e s s e e a n d pl a c e d r e l i an c e o n t he s t a t e m e nt o f d i r e c to r / e m p l oy e e o f J B L . T he r e c a n be nu m b e r of r e a s o ns fo r t h e i r m i s s - s t a t e m e n t b u t w i t h ou t c om p le t e e v id e n c e , t h i s c o ul d n ot be p r o v e d th a t t h e t w o a c c ou nt s i n t w o s ets o f J B L w e r e t h at o f th e a s s e s s e e . I n t h e s e c a s e s , n o a d d i t i on can b e m a de w i th o ut c o nc l u s i v e e v i d e nc e . Th i r d p a r t y m ay d o a ny t h i n g i n i t s ac c o un t s a nd u nl e s s a p p e ll a n t r o le i s p r o v e d , n o ad d it i o n c an b e j us t i f i a bl y m a d e . T h e a l l e ge d c h e qu e t r a n s ac t i o ns d o no t a p pe a r i n a p p e l l an t s b an k ac c o un t o n t h e gi v e d at e o r 3 m o nt h s t h e r e af t er . 1 0. T h e s h ow c a u s e n o ti c e dt 18 / 12 / 20 2 1 w a s a 5 pa ge s n ot i c e a n d w an t e d r e s p o ns e on 20 / 12 / 20 2 1 b y 12 : 5 4 p . m . J u s t i n l e s s t he n 2 d ay s , i t i s v i r t ua l l y am o u n ti n g t o gi v i n g no t i m e to r e pl y to a l o n g s h o w c a us e n o t i c e . I t i s a ga i ns t t he r u l e o f f a i r pl ay . ” 3. T he as sessee has raise d mu lti pl e gr ounds cha llengi ng the jurisdicti on for ass ess ment un de r Secti on 153C of the A ct as w ell as the add it i ons car ried o ut b y the A ssessi ng O ff ice r on mer its. 4. When the ma tte r w as cal led f or he ar ing, th e l d. cou nsel adverted to paragr aph s 4. 1 and 4. 2 of the fi rst appe l lat e ord er and submit ted that the CIT (A ) has reject ed the a ppe al of t he as sessee summar il y on the pr emise tha t ‘ grou nds of ap peal ’ is not foun d as ‘a tt ach ed docu me nt’ to t he e-app eal memo. The l d. cou nsel submit ted that t he fi rst a ppe l la te or der has be en di smissed in lim i ne due to te chnic al glitc hes ov er on w hi ch t he ass essee has no cont rol. A pape r book w as refer re d to a nd a cop y of print out fro m IT por ta l t hat ‘Gr ounds of A ppe al ’ w ere dul y fi le d along wi th for m 35 w as int er alia p la ced fo r our per usa l. 5. In t he l ight of t he sub miss ions ma de on be half of the assessee and ha vi ng regard to the ma te ri al ava ilable before the Bench, w e cons ider it just and p rope r and in t he interes t of subs tantia l j ust ice to set as i de the i mp ugne d f irst appellat e o rde r and res tore the ma tte r back to the C IT (A ). T he assessee sha l l take all co rrect i ve s te ps and provide the ‘G rounds of Appeal ’ a nd a ll I.T.A No.2762/Del/2022 4 ot he r d oc uments a s ma y be nec essary t o en able t he AO to take infor me d dec ision on the dispute. T he CIT (A ) sha l l dis pos e o f the appea l i n accordance w it h law afte r provi di ng reasonable opportunit y t o th e assesse e in this rega rd. T he ma tt er is th us set asi de and resto re to t he fil e of the C IT (A) designated in th is re ga rd fo r fres h adj udi cat ion in acco rdance w it h la. 6. In the r esu lt, the appeal of t he a ssessee is allow ed f or sta tis ti ca l purpos es . Order pronounced in the open Court on 18/04/2023. Sd/- Sd/- [KUL BHARAT] [PRADIP KUMAR KEDIA] JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: /04/2023 Prabhat