Mrinalini Bhalla, New Delhi V. ITO, New Delhi

ITA 4122/DEL/2011

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 58908 (ITAT-DELHI)
• Duration Of Justice: 6 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-03-2012
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: E
• Next Hearing Date: 22-03-2012
• Assessment Year: 2005-2006
• Appeal Filed On: 12-09-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R S NEGI
• Keywords: Reasonable cause

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH : E : NEW DELHI BEFORE SHRI I.P. BANSAL, JUDICIAL MEMBER AND SHRI K.G. BANSAL, ACCOUNTANT MEMBER ITA NO.4122/DEL/2011 ASSESSMENT YEAR : 2005-06 MRINALINI BHALLA, 74, HEMKUNT COLONY, NEW DELHI. PAN : AHKPB3983A VS. ITO, WARD- 23 (3), NEW DELHI. (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI AMARJEET SINGH, CA REVENUE BY : SHRI R.S. NEGI, SR.DR ORDER PER I.P. BANSAL, JUDICIAL MEMBER THIS IS AN APPEAL FILED BY THE ASSESSEE. IT IS DIRECTED AGAINST THE ORDER DATED 9 TH DECEMBER, 2010 PASSED BY THE CIT(A) FOR ASSESSMENT YEAR 2005-06. THE GROUNDS OF APPEAL READ AS UNDER:- 1. THAT O N THE FACTS AND CIRCUMSTANCES OF THE CASE, THE LEARNED COMMISSIONER OF INCOME-TAX HAS ERRED IN LAW WHILE CONFIRMING DISALLOWANCE OF COMMISSION OF RS.1,00,00 0/- PAID BY THE ASSESSEE. 2. THAT O N THE FACTS AND CIRCUMSTANCES OF THE CASE, THE LEARNED COMMISSIONER OF INCOME-TAX HAS ERRED IN LAW WHILE CONFIRMING AGRICULTURAL INCOME OF RS.3,27,557/- AS I NCOME FROM OTHER SOURCES. 3. THAT THE APPELLANT PRAYS FOR LEAVE TO ADD, ALTER, AMEND OR VARY FROM ALL OR ANY OF THE GROUNDS OF APPEAL AT OR B EFORE THE TIME OF HEARING OF THE APPEAL. ITA NO.4122/DEL/2011 2 2. LEARNED CIT (A) HAS DISMISSED THE APPEAL FILED BY TH E ASSESSEE IN LIMINE ON ACCOUNT OF FAILURE OF THE ASSESSEE TO ATTEND BEFORE HIM. THE NOTICES ISSUED BY LEARNED CIT (A) TO THE ASSESSEE WERE RET URNED BACK BY THE POSTAL AUTHORITIES WITH THE REMARKS LEFT. TH EREFORE, LEARNED CIT (A) HAS DISMISSED THE APPEAL IN LIMINE FOLLOWING TH E DECISION OF THE TRIBUNAL IN THE CASE OF CIT VS. MULTIPLAN (INDIA) PVT . LTD. 38 ITD 320 (DEL). IT IS THE CASE OF THE ASSESSEE THAT THE ASSESSEE WAS E ARLIER RESIDING AT D-49, SAKET, NEW DELHI FROM 1993 TO 2000 AND WAS ALSO FILING HER RETURNS REGULARLY FROM THE SAID ADDRESS. TH E SAID PROPERTY BELONGED TO THE BROTHER OF THE ASSESSEE. THE ASSESSEE HAD SHIFTED HER RESIDENCE TO GURGAON DURING THE YEAR, 2001, HOWEVER, THE CORRESPONDENCE ADDRESS REMAINED THE SAME. DURING THE Y EAR 2009-10 THE SAID PROPERTY OF SAKET WAS SOLD BY HER BROTHER AND THE ASSESSEE HAD CHANGED THE CORRESPONDENCE ADDRESS FROM SAKET, NEW DELHI TO HEMKUNT COLONY, NEW DELHI AND STARTED FILING HER RET URNS FROM THE NEW ADDRESS FOR AND FROM ASSESSMENT YEAR 2009-10. AS THE NEW ADDRESS WAS INTIMATED BY WAY OF FILING INCOME-TAX RETURNS, TH E ASSESSEE, WORKING UNDER BONA FIDE BELIEF, DID NOT INFORM THE NEW ADDRESS. THE APPEAL WAS FILED BEFORE THE CIT (A) IN THE MONTH OF FEBRUARY, 2008 AND THE FIRST HEARING WAS FIXED IN THE MONTH OF OCTOBER, 2010 I.E., AFTER MORE THAN 2 YEARS. IN THE MEAN TIME, THE ASSESSEE HAD GOT HER CORRESPONDENCE ADDRESS CHANGED. THEREFORE, THE NOTIC ES REMAINED UNATTENDED. THUS, IT IS THE CASE OF THE ASSESSEE THAT NONE OF THE NOTICES HAVING BEEN SERVED UPON THE ASSESSEE, THE ASSESSEE HA S A REASONABLE AND SUFFICIENT CAUSE FOR NON-APPEARANCE BEF ORE THE CIT (A). THE ASSESSEE HAS ALSO RAISED THE FOLLOWING ADDITIONAL GROU NDS VIDE LETTER DATED 22 ND MARCH, 2012:- 1. ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN L AW, LD. CIT (A) (APPEALS)-XXIII, NEW DELHI ERRED IN DISMISS ING APPELLANTS APPEAL. ITA NO.4122/DEL/2011 3 2. ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN L AW, THE APPELLANT WAS PREVENTED BY REASONABLE CAUSE IN NOT ATTEN DING THE APPELLATE PROCEEDINGS BEFORE LD. CIT (A) (APPEALS )-XXIII, NEW DELHI. 3. ON THE FACTS AND CIRCUMSTANCES, LD. CIT (A) (APPEAL S)-XXIII, NEW DELHI ERRED IN DECIDING APPELLANTS APPEAL WITHOU T DISCUSSING THE MERITS OF THE CASE. 4. THAT THE APPELLANT PRAYS FOR LEAVE TO ADD, ALTER, AME ND OR VARY FROM ALL OR ANY OF THE GROUNDS OF APPEAL AT OR B EFORE THE TIME OF HEARING OF THE APPEAL. 3. ALL THE FACTS MENTIONED ABOVE ARE SUPPORTED BY AN AFFIDAVIT FILED BY THE ASSESSEE WHICH IS DATED 21 ST MARCH, 2012. IT WAS SUBMITTED THAT THE ADDITIONAL GROUND TAKEN IS A LEGAL GROUND AND, T HEREFORE, SHOULD BE ADMITTED. 4. ON THE OTHER HAND, THE LEARNED DR SUBMITTED THAT ON THE GIVEN ADDRESS THE NOTICES WERE SENT BY CIT (A), THEREFORE, LE ARNED CIT (A) WAS RIGHT IN PASSING THE EX PARTE ORDER DISMISSING THE AP PEAL OF THE ASSESSEE. 5. WE HAVE HEARD BOTH THE PARTIES AND THEIR CONTENTI ONS HAVE CAREFULLY BEEN CONSIDERED. ACCORDING TO WELL ESTABLI SHED LAW, LEARNED CIT (A) IS REQUIRED TO DISPOSE OF THE APPEAL ON MERITS INSTEAD OF DISMISSING THE SAME IN LIMINE. WE ALSO FOUND THAT THE A SSESSEE, DUE TO CHANGE OF HER CORRESPONDENCE ADDRESS, WAS NOT ACTUALLY SERVED WITH THE NOTICES ISSUED BY THE LEARNED CIT (A). THEREFORE, KEEPING IN VIEW ALL THESE FACTS IN MIND, WE ARE OF THE OPINION THAT I T WILL SERVE THE INTEREST OF JUSTICE IF THE PRESENT APPEAL IS RESTORED BA CK TO THE FILE OF CIT (A) WITH A DIRECTION TO DISPOSE OF THE APPEAL FIL ED BY THE ASSESSEE ON MERITS AFTER GIVING THE ASSESSEE A REASONABLE OPPORTUN ITY OF HEARING. TO ENSURE COMPLIANCE, WE DIRECT THE ASSESSEE T O APPEAR IN PERSON OR THROUGH AUTHORIZED REPRESENTATIVE BEFORE TH E CIT (A) ON 30 TH MAY, 2012 FOR WHICH DATE NOTICE IS NOT REQUIRED TO B E ISSUED BY LEARNED ITA NO.4122/DEL/2011 4 CIT (A). LD. COUNSEL OF THE ASSESSEE ASSURED THAT THE REP RESENTATION WILL BE MADE BEFORE THE CIT (A) ON 30 TH MAY, 2012. IN THIS MANNER, THE APPEAL FILED BY THE ASSESSEE WAS DISPOSED OF. 6. SINCE WE HAVE RESTORED THE ISSUES RAISED IN THIS APPEA L TO THE FILE OF CIT (A), WE DO NOT EXPRESS ANY OPINION ON MERITS AS THE SAME WILL BE ADJUDICATED BY LEARNED CIT (A) AFTER GIVING THE ASSESSE E A REASONABLE OPPORTUNITY OF HEARING. 7. IN THE RESULT, FOR STATISTICAL PURPOSES THE APPEAL FI LED BY THE ASSESSEE IS TREATED AS ALLOWED. THE ORDER PRONOUNCED IN THE OPEN COURT ON 22.03.20 12. SD/- SD/- [K.G. BANSAL] [I.P. BANSAL] ACCOUNTANT MEMBER JUDICIAL MEMBER DATED,22.03.2012. DK COPY FORWARDED TO: - 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR, ITAT DEPUTY REGISTRAR, ITAT, DELHI BENCHES