Suresh Kumar, Panipat V. ITO, Panipat

ITA 379/DEL/2020

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 2351 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 5 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-06-2021
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Assessment Year: 2011-2012
• Appeal Filed On: 21-01-2020
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Assessee Lawyers: AGAINST DATED PASSED
• Keywords: Bogus purchase; Business income; Principle of natural justice
• Section: 147; 148; 144

Judgement Text

1 ITA NO. 379/DEL/2020 IN THE INCOME TAX APPE LLATE TRIBUNAL DELHI BENCH: SMC NEW DELHI BEFORE MS SUCHITRA KAMBLE, JUDICIAL ME MBER AND DR. B. R. R. KUMAR, ACC OUNTANT MEMBER I.T.A. NO. 379/DEL/202 0 (A.Y 2011-12) (THROUGH VIDEO CON FERENCING) SURESH KUMAR 24, VIJAY MANDIR, PANIPAT HARYANA, PIN- 132103 AEHPK8726J (APPELLANT) VS ITO PANIPAT HARYANA (RESPONDENT) ORDER PER SUCHITRA KAMBLE, JM THIS APPEAL IS FILED BY THE ASSESSEE AGAINST ORDER DATED 11/12/2019 PASSED BY CIT(A)- KARNAL, FOR ASSESSMENT YEAR 2011- 12. 2. THE GROUNDS OF APPEAL ARE AS UNDER:- 1. THAT THE ORDER OF ID A.O., TO THE EXTENT OF AN ADD ITION AND DISALLOWANCES IS ILLEGAL, PERVERSE AND UNJUSTIFIED BEING WITHOUT PROPER APPLICATION OF MIND AND APPRECIATION OF THE FACTS AND CIRCUMSTANCES, STATUTORY PROVISIONS, TRADE PRACTICE AND EVIDENCES FILED AND ON RECORD. APPELLANT BY NONE RESPONDENT BY SH. R. K. GUPTA, SR. DR DATE OF HEARING 17.06.2021 DATE OF PRONOUNCEMENT 29.06.2021 2 ITA NO. 379/DEL/2020 2. GROUND OF APPEAL NO. 1 '(A) THAT UNDER THE FACTS AND CIRCUMSTANCES OF THE CASE THE A.O., IS NOT JUSTIFIED IN MAKING DISALLOWANCE BECAUSE ASSESS ING OFFICER STATED THAT NOTICE ISSUED U/S 148 WAS DULY SERVED T HROUGH REGD. POST BUT NO NOTICE WAS RECEIVED AND NO OPPORTUNITIE S WAS GIVEN TO ASSESSEE HENCE THE ASSESSMENT ORDER WAS NULL AND VO ID. AND FURTHER STATED THAT DURING THE YEAR UNDER CONSI DERATION ASSESSEE HAS NOT MADE ANY BUSINESS TRANSACTIONS WIT H M/S RADHIKA WOOL TRADER, UJHA ROAD, PANIPAT-132103 AND ALSO NO BUSINESS INCOME WAS EARNED EXCEPT PARTNER'S INTERES T AND PARTNER'S SALARY UNDER THE HEAD PROFIT AND GAIN FROM BUSINESS AND PROFESSION DURING THE ASSESSMENT YEAR UNDER CONSIDERATION. (B) WITHOUT PREJUDICE TO ABOVE THE APPELLANT DISPUT ES THE QUANTUM OF DISALLOWANCE AS HIGHLY EXCESSIVE. 3. PROCEEDINGS U/S 147 OF THE INCOME TAX ACT, 1961, WERE INITIATED AND NOTICE U/S 148 OF THE ACT WAS ISSUED ON 31/3/2018 A FTER RECORDING THE REASONS U/S 147 OF THE ACT. THE ASSESSING OFFICER MADE ADD ITION ON ACCOUNT OF BOGUS PURCHASES FOR RS. 5,16,250/-. THE ASSESSMENT ORDE R WAS PASSED U/S 144 AS EX-PARTE ASSESSMENT. 4. BEING AGGRIEVED BY THE ASSESSMENT ORDER, THE ASS ESSEE FILED APPEAL BEFORE THE CIT(A). THE CIT(A) DISMISSED THE APPEAL OF THE ASSESSEE. 5. AT THE TIME OF HEARING DESPITE GIVING NOTICE NON E APPEARED ON BEHALF OF THE ASSESSEE. THEREFORE, WE ARE PROCEEDINGS ON THE BASIS OF THE SUBMISSIONS MADE BY THE ASSESSEE BEFORE THE CIT(A). 6. THE LD. DR RELIED UPON THE ASSESSMENT ORDER AND THE ORDER OF THE CIT(A). 3 ITA NO. 379/DEL/2020 7. WE HAVE HEARD THE LD. DR AND PERUSED ALL THE REL EVANT MATERIAL AVAILABLE ON RECORD. IT IS PERTINENT TO NOTE THAT BEFORE THE CIT(A), THE ASSESSEE HAS DULY MADE SUBMISSIONS THAT IN INCOME TAX RETURN ALONG WI TH THE COMPUTATION WAS SUBMITTED ON 30/03/2012, BUT IN THE ASSESSMENT ORDE R THE ASSESSING OFFICER HAS NOT TAKEN INTO CONSIDERATION THE SAME. FROM TH E PERUSAL OF THE RECORDS, IT IS SEEN THAT THE ASSESSEE HAS NOT MADE ANY PURCHASE S/TRANSACTIONS AMOUNTING TO RS.16,250/- WITH M/S RADHIKA WOOL TRADERS AS PER THE SUBMISSIONS OF THE LD. AR BEFORE THE CIT(A). THE SUBMISSIONS OF THE ASSESSEE WERE NOT BEFORE THE ASSESSING OFFICER AND, THEREFORE, IT WILL BE APPROP RIATE TO REMAND BACK THIS MATTER TO THE FILE OF THE ASSESSING OFFICER. THUS, WE REMAND BACK THE ISSUE TO THE FILE OF THE ASSESSING OFFICER FOR PROPER ADJUDI CATION AND VERIFICATION OF THE EVIDENCES AND THEREAFTER PASSED APPROPRIATE ORDER A S PER LAW. NEEDLESS TO SAY, THE ASSESSEE BE GIVEN OPPORTUNITY OF HEARING BY FOL LOWING PRINCIPLES OF NATURAL JUSTICE. 8. IN RESULT, APPEAL OF THE ASSESSEE IS PARTLY ALLO WED FOR STATISTICAL PURPOSE. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 29 TH DAY OF JUNE, 2021. SD/- SD/- (B. R. R. KUMAR) (SUCHITRA KAMBLE) ACCOUNTANT MEMBER JUDICIAL MEM BER DATED: 29/06/2021 R. NAHEED * COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI 4 ITA NO. 379/DEL/2020