DAVINDRA SINGH, MEERUT V. ITO, WARD- 1(2), MEERUT

ITA 3873/DEL/2017

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 2924 (ITAT-DELHI)
• Duration Of Justice: 5 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-12-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2009-2010
• Appeal Filed On: 15-06-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: V K GOEL
• Keywords: Income from undisclosed sources
• Section: 142(1); 148; 144

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, DELHI SMC BENCH, NEW DELHI BEFORE SHRI B.P. JAIN, ACCOUNTANT MEMBER ITA NO. 3873 /DEL/201 7 [A.Y. 20 0 9 - 10 ] SHRI D AVINDRA SINGH VS. THE INCOME - TAX OFFICER S/O SHRI MAHAVIR SINGH WARD 1( 2 ), VILLAGE BHAINSA. MAWANA MEERUT MEERUT PAN : DLXPS 0225 L [ ASSESSEE ] [RESPONDENT] DATE OF HEARING : 2 9 . 1 1 .2017 DATE OF PRONOUNCEMENT : 14 . 1 2 .2017 A SSESSEE BY : SHRI V.K. GOEL , A DV REVENUE BY : SHRI ATIQ AHMED SR. DR ORDER THIS APPEAL OF THE ASSESSEE ARISES FROM THE ORDER OF THE LD. CIT(A) , GHAZIABAD VIDE ORDER DATED 2 2 .0 5 .201 7 FOR A.Y. 20 0 9 - 1 0 . 2 . THE ASSESSEE HAS RAISED AS MANY AS 7 GROUNDS OF APPEAL. HOWEVER, HE HAS MAINLY ARGUED ON THE FOLLOWING LEGAL GROUND S OF APPEAL: 1. THAT THE ASSESSMENT COMPLETED U /S 144/147 IS BAD IN LAW BECAUSE NO NOTICE U/S 148 WAS EVER SERVE UPON THE ASSESSEE TH EREFORE, ASSESSMENT MADE BY A.O. IS BAD IN LAW AND REJECTION OF THIS GROUND BY CIT(A) IS AGAINST THE FACTS AND LAW. 2 ITA NO. 3873 /DEL/201 7 2. THAT A.O. HAS PASSED ORDER U/S 148/144 WITHOUT SERVING NOTICE U/S 148 OF I.T. ACT AS A.O. HIMSELF ADDED IN THE BODY OF THE ORDER THAT NOT ICE ISSUED BUT RETURN BACK UNSERVED. HENCE, ASSESSMENT U/S 148/144 IS BAD IN LAW. 3. THE LD. COUNSEL FOR THE ASSESSEE SHRI V.K. GOEL, ADV., AT THE VERY OUTSET, INVITED OUR ATTENTION TO THE FIRST PARA OF THE ASSESSMENT ORDER, WHICH READS AS UNDER: N O ITR IS AVAILABLE IN THIS CASE. THE CASE WAS PICKED UP FOR SCRUTINY ON THE BASIS OF AIR INFORMATION REGARDING CASH DEPOSITS IN SAVING BANK ACCOUNT BY THE ASSESSEE DURING THE FINANCIAL YEAR 2008 - 09 WITHOUT QUOTING OF H IS PAN. NOTICE U/S 148 OF THE ACT WAS ISSUED O N 16.03.2016 AFTER OBTAINING SATISFACTION OF THE PR. COMMISSIONER OF INCOME - TAX, MEERUT WHICH - WAS SENT THROUGH SPEED POST. NOTICES U/S 142(1) WERE ALSO ISSUED FROM TIME TO TIME. BUT THE SAME WERE RETURNED UNDELIVERED. FINALLY, ON RECEIPTS OF BANK STATEMENTS FROM THE BANK, NOTICE U/S 142(1) READ WITH SHOW CAUSE NOTICE U/S 144 WAS ISSUED TO THE ASSESSEE ON 11.11.2016 REQUIRING HIM TO SHOW CAUSE AS TO WHY THE ASSESSMENT SHOULD NOT BE MADE TO THE BEST OF MY JUDGMENT U/S 144 OF THE INCOME TAX ACT, 1961 CONSIDERING ALL THE MATERIAL AVAILABLE ON RECORD AND TREATING THE CASH DEPOSITS AS MADE OUT OF INCOME FROM UNDISCLOSED SOURCES. A COPY OF NOTICE U/S H8 ALREADY ISSUED WAS ALSO SERVED . 3 ITA NO. 3873 /DEL/201 7 4. I HAVE HEARD THE RIVAL ARGUMENTS MADE BY BOTH THE SIDES, PERUSED THE ORDERS OF THE A.O AND THE LD. CIT(A). FROM THE PERUSAL OF THE SAID FIRST PARA OF THE ASSESSMENT ORDER, IT IS EVIDENT THAT NO NOTICE U/S 148 OF THE INCOME - TAX ACT, 1961 [HEREINAFTER REFERRED TO AS 'THE ACT' FOR SHORT] HAS BEEN SERVED ON THE ASSESSEE AN D UNLESS NOTICE HAS BEEN ISSUED, THE ASSESSING OFFICER CANNOT ENTER INTO ASSESSMENT JURISDICTION AND ACCORDINGLY, ASSESSMENT SO MADE IS DIRECTED TO BE QUASHED. THEREFORE, LEGAL GROUNDS RAISED BY THE ASSESSEE STAND ALLOWED. 5 . IN THE RESULT, THE A PPEAL OF THE ASSESSEE IN ITA NO. 3873 /DEL/201 7 IS ALLOWED . THE ORDER IS PRO NOUNCED IN THE OPEN COURT ON 14 . 1 2 .2017. SD/ - [B.P. JAIN] ACCOUNTANT MEMBER DATED: 14 TH DECEM BER, 2017 VL/ COPY F ORWARDED TO: 1 . ASSESSEE 2 . RESPONDENT 3 . CIT 4 . CIT(A) 5 . DR ASST. REGISTRAR, ITAT, NEW DELHI