Suresh Bansal, Faridabad V. DCIT, Central Circle- II, Faridabad

ITA 3574/DEL/2018

AI Insights

The case involves an appeal by Sh. Suresh Bansal against the order of the CIT(A)-2, Gurgaon, which arose from an assessment order passed under sections 153A/143(3) of the Income Tax Act, 1961 by the DCIT, Central Circle-II, Faridabad. The assessment included additions based on alleged undisclosed income from cash deposits and property transactions. The tribunal found that the lower tax authorities did not adequately address the facts and circumstances of the case, particularly the nature of the cash deposits, which were claimed to be from cheque clearances. The tribunal noted the lack of discussion on the assessee's explanations in the assessment and appellate orders, leading to the decision to set aside the assessment and remand the matter for a fresh assessment.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 115600 (ITAT-DELHI)
• Duration Of Justice: 5 year(s) 4 month(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-09-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 20-09-2023
• Assessment Year: 2012-2013
• Appeal Filed On: 10-05-2018
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Matter Remanded
• Court: TRIBUNAL
• Keywords: Principle of natural justice
• Section: 69; 153A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI (DELHI BENCH ‘B’ : NEW DELHI) BEFORE SH. SHAMIM YAHYA, ACCOUNTANT MEMBER AND SH. ANUBHAV SHARMA, JUDICIAL MEMBER ITA No. 3574/Del/2018, A.Y. 2012-13 Sh. Suresh Bansal H. No. 122, Sector-9, Faridabad, Haryana PAN : AKYPB5000H Vs. DCIT Central Circle-II, Faridabad (APPELLANT) (RESPONDENT) Appellant by Sh. Dr. Rakesh Gupta, Adv. And Somil Agrawal, Adv. Respondent by Sh. T. James Singson, CIT- DR Date of hearing: 21.09.2023 Date of Pronouncement: 27.09.2023 ORDER PER ANUBHAV SHARMA, JM: The appeal is preferred by the Assessee against the order dated 23.02.2018 of CIT(A)-2, Gurgaon (hereinafter referred as Ld. First Appellate Authority or in short Ld. ‘FAA’) arising out of an appeal before it against the assessment order dated 26.02.2015 passed u/s 153A/143(3) of the Income Tax Act, 1961 (hereinafter referred as ‘the Act’) by the DCIT, CC-II, Faridabad (hereinafter referred as the Ld. AO). 2. In consequence to search proceedings the case of assessee was examined and Ld. AO had made an addition of Rs. 1,00,000/- on the basis of cash ITA No. 3574/Del/2018 2 deposits dated 20.08.2011. Further additions were made on the basis of 3 transactions on account of cash received from sale of property. Ld. CIT(A) had sustained the additions and the assessee is in appeal raising following grounds : “1. That having regard to the fact and circumstances of the case, Ld. CIT(A) has erred in law and on facts in confirming the action of Ld. AO in assuming jurisdiction and issuing of notice u/s 153A of the Act and that too without giving any opportunity of hearing. 2. That in any case and in any view of the matter, the assessment framed under section 153A of the Act, is bad in law and against the facts and circumstances of the case. 3. That having regard to the facts and circumstances of the case, Ld. CIT(A) has erred in law and on facts in upholding the action of the ld. AO in making addition of Rs. 1,00,000/- on account of cash deposited in the bank account as alleged income from undisclosed sources and that too in the proceedings u/s 153A of the Act. 4. That in any case and in any view of the matter, action of the Ld. CIT(A) in confirming the action of Ld. AO in making an addition of Rs. 1,00,000/- is bad in law and against the facts and circumstances of the case. 5. That having regard to the facts and circumstances of the case, Ld. CIT(A) has erred in law and on facts in upholding the action of the Ld. A.O. in making addition of Rs. 16,80,000/- under section 69 of the Income Tax Act, 1961 on account of part of the amount paid for purchase of properties. 6. That in any case and in any view of the matter, action of ld. CIT(A) in confirming the action of Ld. AO in making an addition of Rs. 16,80,000/- is bad in law and against the facts and circumstances of the case. 7. That having regard to the facts and circumstances of the case, Ld. CIT(A) has erred in law and on facts in confirming the action of Ld. AO in passing the impugned order and that too without giving adequate opportunity of hearing and without observing the principle of natural justice. 8. That the appellant craves the leave to add, alter or amend the grounds of appeal at any stage and all the grounds are without prejudice to each other.” 3. Although Ld. DR has supported the findings of ld. Tax Authorities below however, what transpires is that Ld. Tax Authorities below have failed to ITA No. 3574/Del/2018 3 appreciate the facts and circumstances in their correct perspective. Ld. AR has drawn attention to the bank account details made available at page no. 82 and 83 of the paper book to submit that the alleged cash deposit is in fact by way of clearing of a cheque. 4. Further in regard to present A.Y. 2012-13 Ld. AO has merely reproduced the explanation of the assessee without making any discussion whatsoever for discrediting the same and Ld. CIT(A) has also not put any indulgence to the issue. In fact she had followed her own observations for A.Y. 2011-12 without appreciating that the factual matrix of the two years involved were different. 5. In the light of aforesaid the orders of Ld. Tax Authorities below are not sustainable; however, the same require fresh indulgence and verification. Accordingly, the appeal is allowed for statistical purposes and the assessment order is set aside. Both the issues are restored to the files of Ld. AO to give opportunity of hearing to assessee and take note of aforesaid observations made by us, to give afresh findings. Order pronounced in the open court on 27 th September, 2023. Sd/- Sd/- (SHAMIM YAHYA) (ANUBHAV SHARMA) ACCOUNTANT MEMBER JUDICIAL MEMBER Date:-27.09.2023 *Binita, SR.P.S* Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT, NEW DELHI