Sh. Amit Kumar Wahi, Chandigarh V. ITO, W-5(3), Chandigarh

ITA 373/CHANDI/2019

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 0523 (ITAT-CHANDIGARH)
• Duration Of Justice: 1 year(s) 2 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-06-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2014-2015
• Appeal Filed On: 02-04-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ARVIND SUDERSHAN
• Keywords: Unexplained cash credit; Opportunity of being heard; Principle of natural justice; Reasonable cause; Set aside

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH, A,CHANDIGARH . . , , BEFORE SHRI N.K. SAINI, VICE PRESIDENT & SHRI SANJAY GARG, JUDICIAL MEMBER ./ ITA NO. 373/CHD/2019 ! / ASSESSMENT YEAR : 2014-15 SHRI AMIT KUMAR WAHI, H.NO. 2085, SECTOR 45-C, CHANDIGARH '# THE ITO, WARD -5(3), CHANDIGARH $ % ./PAN NO: AAIPW7572P $&/ APPELLANT ()$& /RESPONDENT HEARING THOUGH VIDEO CONFERENCING *+ , - /ASSESSEE BY : SHRI PARIKSHIT AGGARWAL, CA , - / REVENUE BY : SHRI ARVIND SUDERSHAN, JCIT . / , +0% /DATE OF HEARING : 16.06.2020 12! , +0% / DATE OF PRONOUNCEMENT : 16.06.2020 / ORDER PER SANJAY GARG, JUDICIAL MEMBER: THE PRESENT APPEAL HAS BEEN PREFERRED BY THE ASSESS EE AGAINST THE ORDER DATED 25.01.2018 OF THE COMMISSIONER OF INCOM E TAX (APPEALS)-2, CHANDIGARH [HEREINAFTER REFERRED TO AS CIT(A)] 2. THE ASSESSEE IN THIS APPEAL HAS TAKEN FOLLOWING GROUNDS OF APPEAL:- ITA NO. 373-CHD-2019 SHRI AMIT KUMAR WAHI, CHANDIGARH 2 1. THAT ON THE FACTS, CIRCUMSTANCES AND LEGAL POSIT ION OF THE CASE, THE WORTHY CIT(A) IN APPEAL NO. 10482/2/1 6- 17 DATED 25.01.2018 HAS ERRED IN PASSING THAT ORDER IN CONTRAVENTION OF THE PROVISIONS OF S. 250(6) OF THE INCOME TAX ACT, 1961. 2. THAT ON LAW, FACTS AND CIRCUMSTANCES OF THE CASE , WORTHY CIT(A) HAS ERRED IN CONFIRMING THE ACTION OF LD. AO IN MAKING AN ADDITION OF RS. 1,05,30,061/- O N ACCOUNT OF ALLEGED UNEXPLAINED CREDIT FROM UNDISCLO SED SOURCES BY WRONGLY TAKING DIFFERENCE OF CAPITAL ACC OUNT EVEN WHEN THE SAME WAS EXPLAINED BY THE APPELLANT A S THE ACCUMULATED BALANCE OF CAPITAL SINCE ITS INCEPT ION. 3. THAT ON LAW, FACTS AND CIRCUMSTANCES OF THE CASE , WORTHY CIT(A) HAS ERRED IN CONFIRMING THE ACTION OF LD. AO, IN MAKING AN ADDITION OF RS. 1,05,30,061/-, WITHOUT AFFORDING REASONABLE OPPORTUNITY OF BEING HEARD TO THE APPELLANT AND THERE EXISTED REASONABLE CAUSE FOR NONAPPEARANCE BEFORE THE WORTHY CIT(A). 4. THAT THE APPELLANT CRAVES LEAVE FOR ANY ADDITI ON, DELETION OR AMENDMENT IN THE GROUNDS OF APPEAL ON O R BEFORE THE DISPOSAL OF THE SAME. 4. IN THIS APPEAL, THE MAIN GRIEVANCE OF THE ASSESS EE RELATES TO THE EX- PARTE ORDER PASSED BY THE CIT (A) STATING THAT THE SAME IS AGAINST THE PRINCIPLES OF NATURAL JUSTICE. 5. DURING THE COURSE OF HEARING, THE LD. COUNSEL FO R THE ASSESSEE, AT THE VERY OUTSET, HAS STATED THAT NO NOTICES OF HEA RINGS FOR THE DATES FIXED WERE RECEIVED BY THE ASSESSEE, THEREFORE, THE CIT( A) WAS NOT JUSTIFIED IN PASSING THE EX-PARTE ORDER WITHOUT PROVIDING DUE AND REASONABLE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. THE LD. COUNSEL FOR THE ITA NO. 373-CHD-2019 SHRI AMIT KUMAR WAHI, CHANDIGARH 3 ASSESSEE HAS SUBMITTED THAT THE MATTER MAY BE RESTO RED TO THE FILE OF THE CIT(A) SO THAT ASSESSEE MAY GET AN OPPORTUNITY TO PRESENT HIS CASE. 6. IN HIS RIVAL SUBMISSIONS, THE LD. DR ALTHOUGH SU PPORTED THE ORDERS OF THE CIT(A) BUT COULD NOT CONTROVERT THE AFORESA ID CONTENTION OF THE LD. COUNSEL FOR THE ASSESSEE. 7. WE HAVE CONSIDERED THE SUBMISSIONS OF BOTH THE P ARTIES AND PERUSED THE MATERIAL AVAILABLE ON THE RECORD. IN T HE PRESENT CASE, IT IS AN ADMITTED FACT THAT THE LD. CIT(A) PASSED THE IMPUGN ED ORDER EX-PARTE AND NOTHING IS BROUGHT ON RECORD TO SUBSTANTIATE TH AT THE NOTICES FOR HEARING WERE SERVED UPON THE ASSESSEE. IT IS WELL S ETTLED THAT NOBODY SHOULD BE CONDEMNED, UNHEARD AS PER THE MAXIM, AUD I ALTERAM PERTAM . WE, THEREFORE, BY KEEPING IN VIEW THE PRINCIPLES OF NATURAL JUSTICE DEEM IT APPROPRIATE TO SET ASIDE THIS CASE BACK TO THE FILE OF THE CIT(A) IN THIS CASE, TO BE ADJUDICATED AFRESH IN ACCORDANC E WITH LAW AFTER PROVIDING DUE AND REASONABLE OPPORTUNITY OF BEING H EARD TO THE ASSESSEE. IN THE RESULT, THE APPEAL OF THE ASSESSEE STANDS AL LOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED ON 16.06.2020 SD/- SD/- ( . . / N.K. SAINI) ( ! / SANJAY GARG) '#$ / VICE PRESIDENT %& / JUDICIAL MEMBER DATED : 16.06.2020 .. ITA NO. 373-CHD-2019 SHRI AMIT KUMAR WAHI, CHANDIGARH 4 3,(+45 65!+ / COPY OF THE ORDER FORWARDED TO : 1. $& / THE APPELLANT 2. ()$& / THE RESPONDENT 3. . 7+ / CIT 4. . 7+ ( )/ THE CIT(A) 5. 58(+9 , 09 , :;<= / DR, ITAT, CHANDIGARH 6. <>/ / GUARD FILE 3 . / BY ORDER, ? / ASSISTANT REGISTRAR