Smt. Manjulaben D. Sachdev, Ahmedabad V. The Dy.CIT.,Cent.Circle-1(1), Ahmedabad

ITA 294/AHD/2012

• Counselvise Citation: 29420514 RSA 2012
• Duration Of Justice: 2 year(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-02-2014
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 13-12-2013
• Assessment Year: 2007-2008
• Appeal Filed On: 02-02-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DK MISHR A
• Assessee Lawyers: SNEHAL THAKKAR
• Keywords: Principle of natural justice

Judgement Text

, , , , SMC, IN THE INCOME TAX APPELLATE TRIBUNAL AT AHMEDABAD, SMC BENCH . .. . . .. . , !' # ' !' # ' !' # ' !' # ' BEFORE SHRI G.C. GUPTA, VICE-PRESIDENT ITA NO.294/AHD/2012 [ASSTT.YEAR : 2007-2008] SMT.MANJULABEN D. SACHDEV 105, DEVASHIS FLATS PRITAMNAGAR, PALDI AHMEDABAD 380 007. PAN : AKIPS 9111 L /VS. DCIT, CENT.CIR.1(1) AHMEDABAD. ( (( (%& %& %& %& / APPELLANT) ( (( ('(%& '(%& '(%& '(%& / RESPONDENT) )* + , #/ ASSESSEE BY : SHRI SNEHAL THAKKAR . + , #/ REVENUE BY : SHRI D.K. MISHRA, SR.DR / + *01/ DATE OF HEARING : 13 TH DECEMBER, 2013 234 + *01/ DATE OF PRONOUNCEMENT : 03-02-2014 #5 / O R D E R THIS APPEAL OF THE ASSESSEE FOR THE ASSESSMENT YEAR 2007-08 IS DIRECTED AGAINST THE ORDER OF THE CIT(A)-I, AHMEDAB AD DATED 5.12.2011. 2. THE GROUNDS OF APPEAL OF THE ASSESSEE ARE AS UND ER: 1.1 THE ORDER PASSED U/S.250 ON 5.12.11 FOR A.Y.20 07-08 BY CIT(A)I, ABAD UPHOLDING THE EX-PANE ASSESSMENT AND ESTIMATED INCOME AT RS.3,88,200 MADE BY AO IS WHOLLY ILLEGAL, UNLAWFUL AND AGAINST THE PRINCIPLES OF NATURAL JUSTICE. ITA NO.294/AHD/2012 1.2 THE LD. CIT(A) HAS GRIEVOUSLY ERRED IN LAW AND OR ON FACTS IN DISPOSING OF THE APPEAL EX-PARTE WITHOUT GIVING SUFFICIENT OPPORTUNITY TO THE APPELLANT. SHE HAD HANDED OVER T HE NOTICE OF HEARING TO THE AR BUT HE COULD NOT ATTEND OR PREPAR E FOR THE APPEAL DUE TO TIME BARRING ASSESSMENT PROCEEDINGS. THE LD. CIT(A) HAS FAILED TO APPRECIATE THAT THERE WAS A SUFFICIENT CA USE FOR NON- ATTENDANCE ON 25.11.11 BY AR. 2.1 THE LD.CIT(A) HAS GRIEVOUSLY ERRED IN LAW AND O N FACTS IN CONFIRMING THE EX-PARTE ASSESSMENT AND ESTIMATION O F INCOME AT RS.3,88,200 MADE BY AO. 2.2 THAT IN THE FACTS AND CIRCUMSTANCES OF THE CASE AS WELL AS IN LAW, THE LD.CIT(A) OUGHT NOT TO HAVE UPHELD THE EX- PARTE ASSESSMENT MADE AT RS.3,88,200 ON THE BASIS OF INCO ME FOR A.Y.2006-07 WHICH HAD NOT RELEVANCE WITH THIS YEAR AND THE INCREASE ESTIMATED AT 25% WAS ALSO ARBITRARY AND WI THOUT ANY MATERIAL TO SUPPORT IT. 3. THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED T HAT THE ASSESSEE IS A SENIOR CITIZEN OF 70 YEARS OF AGE AND IS WIDOW AN D DUE TO ADVERSE CIRCUMSTANCES, THE LEARNED COUNSEL FOR THE ASSESSEE COULD NOT ATTEND PROCEEDINGS BEFORE THE REVENUE AUTHORITIES. HE SUB MITTED THAT THE ASSESSEE IS ENTITLED TO FULL RELIEF ON MERITS OF TH E CASE. THE LEARNED DR HAS OPPOSED THE SUBMISSIONS OF THE LEARNED COUNSEL FOR THE ASSESSEE. HE SUBMITTED THAT MERELY BECAUSE THE ASSESSEE IS 70 YE ARS OF AGE AND IS WIDOW, IS NO REASON TO GRANT RELIEF TO THE ASSESSEE . HE RELIED ON THE ORDERS OF THE AO AND THE CIT(A). 4. I HAVE CONSIDERED RIVAL SUBMISSIONS AND HAVE PER USED THE ORDERS OF THE AO AND THE CIT(A). I FIND THAT THE AO HAS ESTI MATED THE INCOME OF THE ASSESSEE AT 25% HIGHER THAN THE INCOME RETURNED IN THE IMMEDIATELY PRECEDING ASSESSMENT YEAR 2006-07. IN THE ASSESSME NT YEAR 2006-07, THE ASSESSEE HAS SUBSTANTIAL INCOME OF NON-RECURRING NA TURE OF LONG CAPITAL GAIN OF ` 2,04,333/- AND THE SAME HAS ALSO BEEN MADE BASIS FO R ESTIMATING ITA NO.294/AHD/2012 THE INCOME FOR THE RELEVANT YEAR. THIS APPROACH OF THE AO DOES NOT SEEM TO BE JUSTIFIED. ACCORDINGLY, I HOLD THAT IT SHALL BE IN THE NATURE OF JUSTICE TO RESTORE THE ISSUES IN THE GROUNDS OF THE APPEAL OF THE ASSESSEE TO THE FILE OF THE AO WITH DIRECTION TO FRAME THE ASSESSMENT OR DER AFRESH IN ACCORDANCE WITH LAW AFTER ALLOWING REASONABLE OPPOR TUNITY OF HEARING TO THE ASSESSEE. THE ASSESSEE IS DIRECTED TO COOPERAT E WITH THE DEPARTMENT IN THE MATTER OF HER ASSESSMENT AND OF HER OWN, SECURE THE NOTICE OF HEARING FROM THE AO WITHIN A PERIOD OF TWO MONTHS FROM THE DATE OF RECEIPT OF THIS ORDER OF THE TRIBUNAL. I DIRECT ACCORDINGLY. 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED FOR STATISTICAL PURPOSE. ORDER PRONOUNCED IN OPEN COURT ON THE DATE MENTIONE D HEREINABOVE. SD/- ( . .. . . .. . /G.C. GUPTA) !' !' !' !' /VICE-PRESIDENT C OPY OF THE ORDER FORWARDED TO: 1) : APPELLANT 2) : RESPONDENT 3) : CIT(A) 4) : CIT CONCERNED 5) : DR, ITAT. BY ORDER DR/AR, ITAT, AHMEDABAD