Sanjay Sawhney, Delhi V. ITO, Ward- 34(3), New Delhi

ITA 4052/DEL/2018

• Counselvise Citation: [2021] 107 COUNSELVISE.COM (IT) 3563 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 4 month(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-10-2021
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: G
• Assessment Year: 2014-2015
• Appeal Filed On: 28-05-2018
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Keywords: Principle of natural justice
• Section: 143(3)

Judgement Text

1 ITA NO. 4052/DEL/2018 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: B NEW DELHI BEFORE MS SUCHITRA KAMBLE, JUDICIAL MEMBER AND DR. B. R. R. KUMAR, ACCOUNTANT MEMBER ITA NO. 4052/DEL/2018 ( A.Y 2014-15) (THROUGH VIDEO CONFERENCING) SANJAY SAWHNEY C/O SSAR & ASSOCIATES, CAS, 4852/24, 1 ST FLOOR, NEAR SANJIVAN HOSPITAL, ANSARI ROAD, DARYA GANJ, NEW DELHI ABNPS4554P (APPELLANT) VS ITO WARD-34(3) ROOM NO. 608, E-2, BLOCK, CIVIC CENTRE, MINTO ROAD, NEW DELHI (RESPONDENT) APPELLANT BY SH. SACHIN JAIN, CA RESPONDENT BY SH. JAVED AKHTAR, CIT DR ORDER PER SUCHITRA KAMBLE, JM THIS APPEAL IS FILED BY THE ASSESSEE AGAINST THE OR DER DATED 18/01/2018 PASSED BY CIT(A)-12, NEW DELHI FOR ASSESSMENT YEAR 2014-15. 2. THE GROUNDS OF APPEAL ARE AS UNDER:- 1. THAT BOTH THE LOWER AUTHORITIES GROSSLY ERRED IN LAW IN MAKING AND SUSTAINING THE ASSESSMENT ORDER U/S 143(3) OF THE A CT. THE ASSESSMENT ORDER PASSED AND SUSTAINED BY BOTH THE AUTHORITIES DESERV ES TO BE QUASHED SINCE THE SAME IS NOT IN ACCORDANCE WITH LAW. 2. THAT UNDER THE FACTS AND CIRCUMSTANCES OF THE CA SE, BOTH THE LOWER AUTHORITIES GROSSLY ERRED IN MAKING AND SUSTAINING THE ADDITION OF RS. 14,46,945/- U/S 57(III) OF THE INCOME TAX ACT, 1961 . 3. THE ASSESSEE IS A PROPRIETOR OF M/S BLESSIN G HOSPITALITY WHICH IS ENGAGED IN THE BUSINESS OF HOSPITALITY SERVICES. INCOME TA X RETURN DECLARING NET DATE OF HEARING 11.10.2021 DATE OF PRONOUNCEMENT 14.10.2021 2 ITA NO. 4052/DEL/2018 TAXABLE INCOME AT RS. 3,50,400/- WAS FILED ON 29/11 /2014 FOR ASSESSMENT YEAR 2014-15. THE ASSESSING OFFICER DISALLOWED RS. 14,46,945/- WHICH WERE CLAIMED AS INTEREST AGAINST THE INTEREST ON INCOME U/S 57(III) OF THE ACT. 4. BEING AGGRIEVED BY THE ASSESSMENT ORDER, THE AS SESSEE FILED APPEAL BEFORE THE CIT(A). THE CIT(A) DISMISSED THE APPEAL OF THE ASSESSEE. 5. THE LD. AR SUBMITTED THAT THE CIT(A) HAS PASSED EX-PARTE ORDER AND MATTER MAY BE REMANDED BACK TO THE FILE OF THE CIT( A) AND THE CIT(A) AFTER GIVING PROPER OPPORTUNITY OF HEARING TO ASSESSEE, PASS THE APPROPRIATE ORDER ON MERIT. 6. THE LD. DR RELIED UPON THE ASSESSMENT ORDER AND THE ORDER OF THE CIT(A). 7. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE M ATERIAL AVAILABLE ON RECORD. IT IS PERTINENT TO NOTE THAT THE CIT(A) HA S PASSED THE ORDER WITHOUT TAKING COGNIZANCE OF THE ASSESSEES SUBMISSIONS AND NOT GRANTING ANY OPPORTUNITY OF HEARING TO THE ASSESSEE OR HIS COUNS EL. IT IS AN EX-PARTE ORDER. THEREFORE, WE ARE REMANDING BACK THE ISSUES CONTEST ED HEREIN TO THE FILE OF THE CIT(A) FOR PROPER ADJUDICATION ON MERITS AS PER LAW . NEEDLESS TO SAY, THE ASSESSEE BE GIVEN OPPORTUNITY OF HEARING BY FOLLOWI NG PRINCIPLES OF NATURAL JUSTICE. THE APPEAL OF THE ASSESSEE IS PARTLY ALLOW ED FOR STATISTICAL PURPOSE. 8. IN RESULT, THE APPEAL OF THE ASSESSEE IS PARTLY ALLOWED FOR STATISTICAL PURPOSE. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 14 TH DAY OF OCTOBER, 2021 SD/- SD/- (B. R. R. KUMAR) (SUCHITRA KAMBLE) ACCOUNTANT MEMBER JUDICIAL M EMBER DATED: 14/10/2021 R. NAHEED COPY FORWARDED TO: 3 ITA NO. 4052/DEL/2018 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI