Amit Jain, New Delhi V. ITO Ward 60(6), New Delhi

ITA 356/DEL/2023

AI Insights

The case involves an appeal by Amit Jain against the order of the CIT(A), National Faceless Appeal Centre, which was dated 18.12.2022. The appeal was concerning the assessment year 2017-18 and involved disputes over additions made by the Assessing Officer (AO) regarding unexplained cash deposits and estimated profits from bank credits, treated as business turnover under section 44AD of the Income Tax Act, 1961. The appellant contested that the CIT(A) had dismissed the appeal ex-parte, violating principles of natural justice and statutory provisions under section 250(6) of the Act. The Tribunal found merit in the appellant's arguments regarding the lack of a fair hearing and the absence of a reasoned decision from the CIT(A), leading to the decision to remand the case back for a fresh assessment.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 131120 (ITAT-DELHI)
• Duration Of Justice: 2 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-04-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 24-04-2023
• Assessment Year: 2017-2018
• Appeal Filed On: 14-02-2023
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Opportunity of being heard; Principle of natural justice; Set aside
• Section: 44AD; 69A

Judgement Text

Page | 1 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI “SMC” BENCH: NEW DELHI BEFORE SHRI KUL BHARAT, JUDICIAL MEMBER & SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER ITA No.356/Del/2023 [Assessment Year : 2017-18] Amit Jain, T 184/3, T-Block, Gali No.3, Gautampuri, New Delhi-110053. PAN-ADBPJ8393D vs ITO, Ward-60(6), New Delhi. APPELLANT RESPONDENT Appellant by Shri Sahil Gupta, CA Respondent by Shri Om Parkash, Sr.DR Date of Hearing 25.04.2023 Date of Pronouncement 27.04.2023 ORDER PER KUL BHARAT, JM : The present appeal filed by the assessee for the assessment year 2017-18 is directed against the order of Ld. CIT(A), National Faceless Appeal Centre (“NFAC”), Delhi dated 18.12.2022. The assessee has raised following grounds of appeal:- I. “The assessment order passed in the present case is based on personal whims and fancies without ascertaining the facts and circumstances of the case. Hence liable to be quashed. 2. That the Ld. CIT(A) bas grossly erred in Jaw and on facts in passing the order in utter disregard of the statutory provisions contained u/s 250(6) of the Act by dismissing the appeal of the appellant ex-parte violating the principles of natural justice. 3. That the Ld. CIT(A) has overlooked the provisions of section 250(6) of the Act, as the order passed by him is non-speaking and without affording any proper opportunity of being heard to the appellant. 4. That the Ld. CIT(A) has ignored various judicial rulings, wherein it was held that section 250(6) makes it obligatory for the CIT(A) to pass Page | 2 a speaking order deciding the points raised in appeal, stating his reasons for the decision as such. 5. That the Ld. CIT(A) is not justified in disposing off the appeal ex-parte without allowing sufficient and real opportunity to the appellant to represent the case and hence, the impugned order passed required to be set-aside/cancelled. 6. That on the basis of facts and circumstances of the case and in law the Ld. CIT(A) has erred in upholding the addition made by Ld. AO on account of cash deposit in bank account amounting to Rs.15,24.000/- as unexplained money u/s 69A of the Income Tax Act. 1961. 7. That on the basis of facts and circumstances of the case and in law, the Ld. CIT(A) has erred in upholding the addition made by Ld. AO amounting to Rs. 21,12,376/- on account of estimated profit @ 8% of the total credits in bank account through banking channel amounting to Rs.2,64,04,732/- by assuming the total credits as turnover of business u/s 44AD of the Income Tax Act. 1961. 8. That the appellant craves leave to add, amend, modify, rescind, supplement or alter any of the grounds of appeal before the appeal is finally adjudicated upon.” 2. At the outset, Ld. Counsel for the assessee submitted that the impugned order has been passed ex-parte to the assessee without providing adequate opportunity of being heard. He submitted that the impugned order suffers violation of principle of nature justice. He therefore, submitted that impugned order may be set aside and the appeal be restored to the file of Ld.CIT(A) to decide it afresh. 3. On the other hand, Ld. Sr. DR opposed these submissions and supported the orders of the authorities below. He submitted that the assessee has been thoroughly negligent before the Assessing Authority and also there was no Page | 3 representation on behalf of the assessee despite various opportunities have been granted. 4. In re-joinder, Ld. Counsel for the assessee submitted that the assessee would appear suo-moto before lower authorities, if so directed and cooperate in the proceedings. 5. We have heard Ld. Authorized Representatives of the parties and perused the material available on record. We find that before the AO, there was no representation on behalf of the assessee. Even before Ld.CIT(A), there was no compliance by the assessee. Considering the fact that the impugned order is passed ex-parte to the assessee and the grounds raised before Ld. CIT(A) have not been decided by way of a speaking order. Therefore, considering the totality of the facts and to sub-serve the interest of principle of natural justice, we hereby, set aside the appeal and restore to the file of Ld.CIT(A) to decide it afresh after giving adequate opportunity of hearing to both the parties. The assessee would not seek any adjournment without any reasonable cause and would cooperate in the proceedings before Ld.CIT(A). Hence, grounds raised by the assessee are allowed for statistical purposes. 6. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced in the open Court on 27 th April, 2023. Sd/- Sd/- (PRADIP KUMAR KEDIA) (KUL BHARAT) ACCOUNTANT MEMBER JUDICIAL MEMBER * Amit Kumar * Page | 4 Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT, NEW DELHI