Harish Chanana, Delhi V. ITO, New Delhi

ITA 3508/DEL/2015

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 7056 (ITAT-DELHI)
• Duration Of Justice: 4 year(s) 8 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-02-2020
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: H
• Assessment Year: 2007-2008
• Appeal Filed On: 02-06-2015
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: S L ANURAGI
• Keywords: Unexplained investment; Opportunity of being heard; Principle of natural justice
• Section: 144

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES A : DELHI BEFORE SHRI BHAVNESH SAINI, JUDICIAL MEMBER AND SHRI R.K. PANDA, ACCOUNTANT MEMBER ITA.NO.3508/DEL./2015 ASSESSMENT YEAR 2007-2008 SHRI HARISH CHANANA, SD-185, PITAMPURA, DELHI. PAN AAFPC2783D VS. THE INCOME TAX OFFICER, WARD 39 (1), NEW DELHI. (APPELLANT) (RESPONDENT) FOR ASSESSEE : - NONE - FOR REVENUE : SHRI S.L. ANURAGI, SR. D.R. DATE OF HEARING : 05 .0 2 .20 20 DATE OF PRONOUNCEMENT : 05 .0 2 .20 20 ORDER PER BHAVNESH SAINI, J.M. THIS APPEAL BY ASSESSEE HAS BEEN DIRECTED AGAINST THE ORDER OF THE LD. CIT(A)-XXVIII, NEW DELHI, DATED 15.09.2010, FOR THE A.Y. 2007-2008, ON THE FOLLOWING GROUNDS : 1. ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW, THE ASSESSMENT ORDER PASSED BY THE ASSESSING OFFICER U/S.144 IS BAD IN LAW AND VOID 2 ITA.NO.3508/DEL./2015 SHRI HARISH CHANANA, DELHI. AND COMMISSIONER OF INCOME TAX (APPEAL) ERRED IN NOT HOLDING SO. 2. ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW, THE COMMISSIONER OF INCOME TAX (APPEAL) ERRED IN CONFIRMING THE ADDITION OF RS.80,000/- MADE BY THE ASSESSING OFFICER ON ACCOUNT OF ALLEGED UNEXPLAINED LOANS. 3. ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW, THE COMMISSIONER OF INCOME TAX (APPEAL) ERRED IN CONFIRMING THE ADDITION OF RS.55,000/- MADE BY THE ASSESSING OFFICER ON ACCOUNT OF ALLEGED UNEXPLAINED SUNDRY CREDITORS. 4. ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW HAS ERRED IN CONFIRMING THE ADDITION OF RS.44,00,000/- MADE BY THE ASSESSING OFFICER ON ACCOUNT OF ALLEGED UNEXPLAINED INVESTMENT. 5. ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW HAS ERRED IN CONFIRMING THE ADDITION OF RS.56,01,000/- MADE BY THE ASSESSING OFFICER ON 3 ITA.NO.3508/DEL./2015 SHRI HARISH CHANANA, DELHI. ACCOUNT OF ALLEGED UNEXPLAINED CASH DEPOSITS IN BANK. 6. ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW, THE ORDER PASSED BY THE ASSESSING OFFICER AND COMMISSIONER OF INCOME TAX (APPEAL) ARE AGAINST THE PRINCIPLES OF NATURAL JUSTICE AS NO PROPER OPPORTUNITY WAS PROVIDED TO THE APPELLANT. 2. BRIEFLY THE FACTS OF THE CASE ARE THAT RETURN OF INCOME WAS FILED ON 15.02.2008 DECLARING INCOME OF RS.92,410/-. THE CASE WAS SELECTED FOR SCRUTINY. THE COUNSEL FOR ASSESSEE APPEARED AND FILED DETAILS ALONG WITH HIS LETTER AND SOUGHT ADJOURNMENT FOR FURNISHING THE BALANCE DETAILS. THEREAFTER, NOBODY APPEARED ON THE SIDE OF THE ASSESSEE. THE A.O. IN THE ABSENCE OF ANY COOPERATION FROM THE SIDE OF THE ASSESSEE AND IN THE ABSENCE OF ANY DOCUMENTARY EVIDENCES ON RECORD, PROCEEDED TO PASS EX- PARTE ASSESSMENT ORDER UNDER SECTION 144 OF THE I.T. ACT, 1961. THE A.O. NOTED THAT ASSESSEE HAS TAKEN UNSECURED LOANS FROM SHRI PRAVEEN CHANANA AND SHRI SATISH CHANNA AND SUCH UNSECURED LOANS HAVE INCREASED IN ASSESSMENT 4 ITA.NO.3508/DEL./2015 SHRI HARISH CHANANA, DELHI. YEAR BY RS.80,000/-. IN THE ABSENCE OF ANY CONFIRMATION AND DOCUMENTARY EVIDENCES ON RECORD, THE A.O. MADE ADDITION OF RS.80,000/-. FURTHER, THERE IS AN INCREASE IN THE ACCOUNT OF SUNDRY CREDITORS OF RS.55,000/-. THE A.O. FURTHER NOTED THAT BALANCE-SHEET OF THE ASSESSEE SHOWS AN AMOUNT OF RS.44 LAKHS UNDER THE HEAD ADVANCE AGAINST SALE OF PLOT. THE ASSESSEE WAS ASKED TO PROVE THE SOURCE OF THE SAME. BUT, IN THE ABSENCE OF ANY EVIDENCE ON RECORD, A.O. MADE ADDITION OF RS.44 LAKHS. SIMILARLY, THERE IS A CASH DEPOSIT WORTH RS.56,01,000/- IN CENTRAL BANK OF INDIA, BHAGAT SINGH MARKET, GOLE MARKET BRANCH, NEW DELHI, BELONGING TO THE ASSESSEE AND THE SOURCE OF THE CASH DEPOSIT WAS NOT EXPLAINED. THE A.O, THEREFORE, MADE THE ADDITION OF RS.56,01,000/-. 3. THE LD. CIT(A) NOTED THAT AT THE INITIAL APPELLATE PROCEEDINGS THERE WAS NO COMPLIANCE FROM THE SIDE OF THE ASSESSEE AND THEREAFTER, ADJOURNMENTS WERE SOUGHT MANY TIMES. THE ASSESSEE ALSO FILED SUBMISSIONS, BUT, ULTIMATELY, NOBODY APPEARED BEFORE THE LD. CIT(A). THEREFORE, APPEAL WAS DECIDED ON THE BASIS OF THE WRITTEN SUBMISSIONS FILED BY 5 ITA.NO.3508/DEL./2015 SHRI HARISH CHANANA, DELHI. THE ASSESSEE. THE LD. CIT(A) ON ALL THE FOUR ADDITIONS NOTED THAT ASSESSEE DID NOT PRODUCE ANY EVIDENCE ON RECORD, THEREFORE, APPEAL OF ASSESSEE WERE DISMISSED ON THESE FOUR ADDITIONS. 3.1. THE ORDER SHEET SHOWS THAT INITIALLY THE ASSESSEE SOUGHT ADJOURNMENT WHICH HAVE BEEN GRANTED ON MANY DATES. EVEN COUNSEL FOR ASSESSEE ALSO SOUGHT ADJOURNMENT WHICH WAS GRANTED. HOWEVER, NONE APPEARED ON 30.01.2020. THEREFORE, ASSESSEE WAS FURTHER NOTIFIED THE DATE OF HEARING FOR 05.02.2020 BY REGISTERED POST. HOWEVER, NONE APPEARED ON BEHALF OF THE ASSESSEE. 4. WE HAVE HEARD THE LD. D.R. AND PERUSED THE FINDINGS OF THE AUTHORITIES BELOW. ON 16.12.2019, THE ASSESSEE APPEARED HIMSELF AND SOUGHT TIME TO FILE PAPER BOOK. ON HIS REQUEST, APPEAL WAS ADJOURNED TO 30.01.2020. ON EARLIER OCCASION ALSO, THE ASSESSEE AND HIS COUNSEL SOUGHT ADJOURNMENT WHICH WAS GRANTED. ON 30.01.2020 NEITHER THE ASSESSEE APPEARED NOR ANY PAPER BOOK HAS BEEN FILED. THE ASSESSEE WAS, THEREFORE, NOTIFIED FURTHER DATE OF 6 ITA.NO.3508/DEL./2015 SHRI HARISH CHANANA, DELHI. HEARING FOR 05.02.2020 THROUGH REGISTERED POST, BUT, NO EVIDENCE IS FILED AND EVEN NOBODY APPEARED ON BEHALF OF THE ASSESSEE. THE FACTS, THEREFORE, ARE CLEAR THAT THE ASSESSEE DID NOT FILE ANY SUPPORTING DOCUMENTS OF THESE ADDITIONS BEFORE THE AUTHORITIES BELOW AND SAME IS THE POSITION BEFORE THE TRIBUNAL. THE AUTHORITIES BELOW HAVE GIVEN SUFFICIENT OPPORTUNITY OF BEING HEARD TO THE ASSESSEE, BUT, ASSESSEE DID NOT PRODUCE ANY EVIDENCE IN RESPECT OF ANY OF THE ADDITIONS. IN THE ABSENCE OF ANY EVIDENCE ON RECORD AND ANY REPRESENTATION FROM THE SIDE OF THE ASSESSEE, WE CONFIRM ALL THE ADDITIONS AND DISMISS THE APPEAL OF THE ASSESSEE. APPEAL OF THE ASSESSEE IS DISMISSED. 5. IN THE RESULT, APPEAL OF THE ASSESSEE DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT. SD/- SD/- (R.K. PANDA) (BHAVNESH SAINI) ACCOUNTANT MEMBER JUDICIAL MEMBER DELHI, DATED 05 TH FEBRUARY, 2020 VBP/- 7 ITA.NO.3508/DEL./2015 SHRI HARISH CHANANA, DELHI. COPY TO 1. THE APPELLANT 2. THE RESPONDENT 3. CIT(A) CONCERNED 4. CIT CONCERNED 5. D.R. ITAT A BENCH, DELHI 6. GUARD FILE. // BY ORDER // ASSISTANT REGISTRAR : ITAT DELHI BENCHES : DELHI.