Sh. Mukesh Kumar, Ambala City V. ITO, Ward-5, Ambala

ITA 314/CHANDI/2023

AI Insights

This case involves an appeal by Shri Mukesh Kumar against the order of the ld. CIT(A) NFAC, Delhi, which confirmed the addition of Rs. 5,00,000 as unexplained investment in debentures for the assessment year 2012-13. The primary contention was the alleged lack of reasonable opportunity for the appellant to be heard, which was claimed to be against the principles of natural justice. The appellant argued that notices were not properly served, and the CIT(A) erred in not adjudicating the appeal on merits. The Tribunal found that the notices were issued to the appellant's email but acknowledged the appellant's claim of not receiving them, leading to the decision to remand the case back to the CIT(A).

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 127475 (ITAT-CHANDIGARH)
• Duration Of Justice: 3 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-09-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 12-09-2023
• Assessment Year: 2012-2013
• Appeal Filed On: 17-05-2023
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Unexplained investment
• Section: 147; 148; 142(1); 250

Judgement Text

आयकर अपील य अ धकरण,च डीगढ़ यायपीठ , च डीगढ़ IN THE INCOME TAX APPELLATE TRIBUNAL, CHANDIGARH BENCH ‘A’ CHANDIGARH BEFORE: SHRI A.D.JAIN, VICE PRESIDENT AND SHRI VIKRAM SINGH YADAV, ACCOUNTANT MEMBER आयकर अपील सं./ ITA No. 314/CHD/2023 नधा रण वष / Assessment Year : 2012-13 Shri Mukesh Kumar, House No. 252, Luxmi Nagar, Village Jandli, Ambala City. बनाम VS The ITO, Ward 5, Ambala. थायी लेखा सं./PAN /TAN No: ARHPK6384R अपीलाथ /Appellant यथ /Respondent नधा रती क ओर से/Assessee by : Shri Vineet Krishan, Advocate राज व क ओर से/ Revenue by : Shri Dharamvir, JCIT, Sr.DR तार"ख/Date of Hearing : 13.09.2023 उदघोषणा क तार"ख/Date of Pronouncement : 15.09.2023 आदेश/ORDER PER A.D.JAIN, VICE PRESIDENT This is assessee's appeal for assessment year 2012-13 against the order dated 20.03.2023 passed by the ld. CIT(A) NFAC, Delhi. The following grounds have been taken : 1. That the order dated 20.03.2023, under section 250 passed by the Ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi, vide order No. ITBA/NFAC/S/250/2022- 23/1051010419(1) is contrary to law and facts of the case. 2. That in the facts and circumstances of the case, the Ld. Commissioner of Income Tax (Appeals) gravelly erred in not affording reasonable opportunity of being heard to the appellant which is against the principles of natural justice as such order passed by Ld. Commissioner of Income Tax (Appeals) is bad in law. ITA 314/CHD/2023 A.Y. 2012-13 2 3. That in the facts and circumstances of the case, no notice was served on the appellant as alleged by the Ld. Commissioner of Income Tax (Appeals). 4. That in the facts and circumstances of the case, the Ld. Commissioner of Income Tax (Appeals) gravelly erred in not adjudicating the appeal of the appellant on merits. 5. That in the facts and circumstances of the case, the Ld. Commissioner of Income Tax (Appeals) gravelly erred in not adjudicating ground Nos. 2 and 3 taken before the Ld. Commissioner of Income Tax (Appeals). 6. That in the facts and circumstances of the case, the Ld. Commissioner of Income Tax (Appeals) gravelly erred in upholding the addition of Rs. 5,00,000/-made by the ld. Assessing Officer on account of alleged unexplained investment.” 2. The brief facts of the case are that the assessee is an individual who had invested an amount of Rs.5,00,000/- for purchase of debentures during the year under consideration. Proceedings u/s 147 of the Income Tax Act, 1961 were initiated and notice u/s 148 of the Act was issued to the assessee on 22.03.2019. In response to the notice, the assessee neither filed his return of income for A.Y. 2012-13 nor filed any written submissions. Accordingly, notice u/s 142(1) of the Act alongwith questionnaire was issued on 08.08.2019 fixing the case for 22.08.2019 to disclose source of investment in purchase of debentures, but the assessee did not file any reply. After that, many notices were served upon the assessee to furnish the information/documents, but the assessee neither filed his return of income nor filed any written submissions. Accordingly, the Assessing Officer passed order u/s 147 r.w.s. 144 of the Act ITA 314/CHD/2023 A.Y. 2012-13 3 making the addition of Rs.5,00,000/- on account of unexplained money. 3. Aggrieved, the assessee filed appeal before the ld. CIT(A). 4. The ld. CIT(A) issued notices u/s 250 of the Act on 22.01.2021, 24.02.2023 and 09.03.2023 on the e-mail ID provided for communication, to the appellant for providing relevant documents/information, but no response was received from the assessee. Accordingly, the ld. CIT(A) confirmed the order passed by the Assessing Officer u/s 147 r.w.s. 144 of the Act, against which the assessee is in appeal before this Tribunal. 5. We have heard the rival submissions and perused the material available on record. The notices were issued on the e-mail ID address of the assessee but the assessee states that he did not receive any notice of hearing. Further, there is nothing on record to prove that the assessee has been served notice of hearing to furnish the relevant information/documents etc. Therefore, in the interest of justice, the file is restored to the file of ld. CIT(A) to decide the matter afresh in accordance with law after giving reasonable opportunity of being heard to the assessee. The assessee, no doubt, shall cooperate in the fresh proceedings before the CIT(A). ITA 314/CHD/2023 A.Y. 2012-13 4 7. In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the Open Court on 15 th Sept.,2023. Sd/- Sd/- (VIKRAM SINGH YADAV) (A.D.JAIN ) ACCOUNTANTMEMBER VICE PRESIDENT “Poonam” आदेश क琉 灹ितिलिप अ灡ेिषत/ Copy of the order forwarded to : 1. अपीलाथ牸/ The Appellant 2. . 灹瀄यथ牸/ The Respondent 3. आयकर आयु猴/ CIT 4. िवभागीय 灹ितिनिध, आयकर अपीलीय आिधकरण, च瀃डीगढ़/ DR, ITAT, CHANDIGARH 5. गाड榁 फाईल/ Guard File आदेशानुसार/ By order, सहायक पंजीकार/ Assistant Registrar