CHRISTOPHAR DOMNIC SAVIO DIAS , MUMBAI V. INCOME TAX OFFICER, WARD 4(1), MUMBAI

ITA 2984/MUM/2024

• Counselvise Citation: [2024] 130 COUNSELVISE.COM (IT) 5496 (ITAT-MUMBAI)
• Duration Of Justice: 2 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-08-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: J
• Next Hearing Date: 05-08-2024
• Assessment Year: 2017-2018
• Appeal Filed On: 28-05-2024
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: RAMKUMAR PUGLIYA
• Keywords: Opportunity of being heard; Principle of natural justice
• Section: 234B; 250; 69A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL “J (SMC)” BENCH (SMC), MUMBAI BEFORE MS PADMAVATHY S, AM & SHRI RAHUL CHAUDHARY, JM I.T.A. No. 2984 /Mum/2024 (Assessment Year: 2017-18) Christopher Domnic Savio Dias Miracle Villa, Near New Green park Society, Karkhun Bhat, Papady, Vasai Road (West), Vasai, Maharashtra-401207 PAN : AHEPD7501Q Vs. ITO, Ward-4(1), Room No.3, 6 th Floor, Ashar IT Park, Road No. 162, Waghle Industrial Estate, Thane (W), Maharashtra-400604. Appellant) : Respondent) Appellant/Assessee by : Shri Ramkumar Pugliya, AR Revenue/Respondent by : Shri Sridhar G. Menon, Sr. DR Date of Hearing : 06.08.2024 Date of Pronouncement : 21.08.2024 O R D E R Per Padmavathy S, AM: This appeal by the assessee is against the order of the Commissioner of Income Tax (Appeals) / National Faceless Appeal Centre, Delhi [for short 'the CIT(A)'] dated 31.03.2024 for Assessment Year (AY) 2017-18. The assessee raised the following grounds of appeals: 2 ITA No. 2984/Mum/2024 Christopher Domnic Savio Dias “1. That the Ld. Commissioner of Income-tax (Appeals) has erred in passing the order u/s 250 of the Income tax Act, 1961 without following the principles of natural justice. 2. That the Ld. Commissioner of Income-tax (Appeals) has erred in passing order u/s 250 of the Income-tax Act, 1961 by issuing notices only during Covid-19 pandemic period and thereby no following the directions of the Hon'ble Apex Court. 3. That Ld. Assessing Officer has erred in making and the Ld. Commissioner of Income-tax (Appeals) has erred in confirming the addition of Rs. 23,00,000/- which is not income u/s 2(24) of the Act. 4. That Ld. Assessing Officer has erred in making and the Ld. Commissioner of Income tax (Appeals) has erred in confirming the addition of Rs. 23,00,000/- to the total income of the Assessee u/s 69A of the Act as unexplained money/amount. 5. That Ld. Assessing Officer has erred in imposing and the Ld. Commissioner of Income-tax (Appeals) has erred in confirming imposition and calculation of tax @ 60% under section 115BBE of the Act on the alleged additions. 6. That Ld. Assessing Officer has erred in imposing and the Ld. Commissioner of Income-tax (Appeals) has erred in confirming imposition and calculation of interest under section 234A, 234B and 234C of the Act. 7. That Ld. Assessing Officer has erred in initiating penalty proceedings under section 271AAC of the Act. 8. That the Assessee carve out leave to add, alter or amend the facts and/or ground of appeal and to file further grounds and/or facts, as and when becomes necessary or directed by the Hon'ble Tribunal.” 2. The assessee is an individual and filed the return of income for AY 2017-18 on 01.08.2017 declaring a total income of Rs.2,90,060/-. The case was selected for scrutiny and the statutory notices were duly served on the assessee. During the course of hearing, the Assessing Officer (AO) noticed that the assessee has deposited a sum of Rs. 23,00,000/- in specified bank notes during the demonetization period. The assessee filed certain details such as computation of 3 ITA No. 2984/Mum/2024 Christopher Domnic Savio Dias income, bank statement, summary of cash withdrawal from bank, etc. before the AO. The AO after perusing the details furnished by the assessee was not satisfied with the response filed by the assessee with regard to the cash deposits and accordingly treated the entire amount of Rs. 23,00,000/- as unexplained and made addition under section 69A of the Income Tax Act, 1961 (the Act). On further appeal, the CIT(A) confirmed the said addition ex-parte based on the information and materials available on record. 3. We heard the parties. The main plea of the ld. AR is that the CIT(A) has not given proper opportunity of being heard. In this regard our attention was drawn to the order of the CIT(A) wherein it is stated that notice of hearing was issued on 29.12.2020 and 28.03.2024 giving time for the assessee to file response by 28.01.2021 and 29.03.2024. From the perusal of this detail it is clear that the CIT(A) has issued only two notices with a gap of three years and that in the notice issued on 28.03.2024 the CIT(A) has given only one day time for the assessee to respond. It is also relevant to notice that the CIT(A) has passed the order on 31.03.2024 ex-parte stating that the assessee has not responded to the notice. In the facts and circumstances of the case, we see merit in the contention of the ld. AR that there is a violation of natural justice and that the assessee was not given a proper opportunity of being heard before the CIT(A). Therefore, we are inclined to give one more opportunity to the assessee in the interest of natural justice and fair play. Accordingly, we remit the appeal back to the CIT(A) for denovo consideration with a direction to call for necessary details as may be required for proper adjudication of issue under consideration. The assessee is also directed to file the necessary details as may be called for by the CIT(A) without seeking adjournments and co-operate with appellate proceeding. It is ordered accordingly. 4 ITA No. 2984/Mum/2024 Christopher Domnic Savio Dias 4. In the result, the appeal of the assessee is allowed for statistical purpose. Order pronounced in the open court on 21-08-2024. Sd/- Sd/- (RAHUL CHAUDHARY) (PADMAVATHY S) Judicial Member Accountant Member *SK, Sr. PS Copy of the Order forwarded to : 1. The Appellant 2. The Respondent 3. DR, ITAT, Mumbai 4. 5. Guard File CIT BY ORDER, (Dy./Asstt. Registrar) ITAT, Mumbai