Supriya Anurag Khanna, Ludhiana V. Income-Tax Officer-Ward-2(3), Hubballi

ITA 414/BANG/2023

AI Insights

The case involves Supriya Anurag Khanna, the appellant, who contested the orders of the Income Tax Officer (ITO) and the Commissioner of Income Tax (Appeals) [CIT(A)]. The primary issues revolved around the jurisdiction of the ITO to issue notices and the legality of the assessment order passed under section 143(3) of the Income Tax Act, 1961. The ITO had made significant additions to the assessee's income based on unverified creditors and unexplained cash credits. The CIT(A) upheld these additions, leading to the appeal before the Income Tax Appellate Tribunal (ITAT). The ITAT found that the CIT(A) had not adequately addressed the legal issues concerning jurisdiction and the merits of the case, leading to the decision to remit the case back to the CIT(A) for a thorough re-examination.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 124860 (ITAT-BANGALORE)
• Duration Of Justice: 1 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-07-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 05-07-2023
• Assessment Year: 2013-2014
• Appeal Filed On: 21-05-2023
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: CHETAN TAYAL
• Keywords: Opportunity of being heard
• Section: 143(3); 143(2)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL “B’’ BENCH: BANGALORE BEFORE SHRI GEORGE GEORGE K, VICE PRESIDENT AND SHRI LAXMI PRASAD SAHU, ACCOUNTANT MEMBER ITA No.414/Bang/2023 Assessment Year: 2013-14 Supriya Anurag Khanna, W/o Shri Anurag Khanna, 265-B, Rajguru Nagar, Ferozpur Road, Backside MRD Mall, Rajguru Nagar, Ludhiana, Punjab-141012. PAN No. – AVXPK 5832 C Vs. The Income Tax Officer, Ward-2(3), Hubli. APPELLANT RESPONDENT Appellant by : Shri Chetan Tayal, Advocate Respondent by : Smt. Nishi Padma, Addl. CIT (DR) Date of Hearing : 06.07.2023 Date of Pronouncement : 12.07.2023 O R D E R PER LAXMI PRASAD SAHU, ACCOUNTANT MEMBER: This appeal filed by the assessee is against the order passed by the CIT(A), Hubballi vide order dated 15/03/2019 for the assessment year 2013-14 on the following grounds of appeal:- “1. That the Worthy CIT(A) erred on facts and in law in upholding the order of the Assessing Officer having been passed in haste without proper application of mind: 2 of page 5 ITA No.414/Bang/2023 2. That the Worthy CIT(A) erred on facts and in law in upholding the illegal assumption of jurisdiction by the Assessing Officer in issuing notices for framing of the assessment u/s 143(3). 3. That the Ld CIT(A) erred on facts and in law in upholding the order passed u/s 143(3) which is illegal, bad in law as having been passed by an Assessing Officer who did not have jurisdiction to do so. 4. That the Worthy CIT(A) erred on facts and in law in upholding the addition of Rs 30,53,908/- made by the Assessing Officer completely overlooking the documentary evidences filed during the course of the assessment proceedings. 5. That the Worthy CIT(A) erred on facts and in law in upholding the addition of Rs.26,88,300/- made by the Assessing Officer completely overlooking the documentary evidence filed during the course of the assessment proceedings. 6. That the CIT(A) erred on facts and in law in upholding the assessment order which had been passed in complete violation of principles of natural justice. 7. That the appellant reserves the right to amend/add any ground! grounds of appeal, in addition to aforesaid at the time of hearing or before hearing of the said appeal.” 2. The brief facts of the case are that the assessee is trading in Yarn & Knitted cloth and is the proprietor of Technitex, F131, Focal Point, Phase-8, Ludhiana. Previously the assessee was residing at Dandeli, Karnataka and notice u/s 143(2) was sent to Dandeli address at Type-1, Room No.84, Bangur Nagar, Dandeli as per her PAN address. However, the notice returned unserved and subsequently other statutory notices were issued to the assessee. During the course of assessment proceedings, the AO noted that the assessee has not furnished confirmation in respect of two creditors viz., Maya Export and Modern Processors Pvt. Ltd. for Rs.22,64,500 and Rs.7,89,408/-. Hence he made addition of Rs.30,53,908. The AO further observed that the assessee furnished confirmation from Shri Banke Bihari Aggarwal, resident of Delhi, towards transfer of sum of Rs.26,88,300/- from his bank account to the 3 of page 5 ITA No.414/Bang/2023 assessee’s capital account on 7.2.2013 as interest free loan. The AO observed that it is to be treated as unsecured loan in the balance sheet and cannot be taken to the capital account of assessee. Therefore, he made addition of Rs.26,88,300 to the total income of the assessee. 3. Aggrieved from the above order, the assessee field appeal before the CIT(A). 4. The CIT(A) issued notices on various dates on the PAN address as well as the address quoted in the Income-tax return but the assessee failed to respond to the notices. Accordingly, the CIT(A) confirmed the order of the AO and dismissed the appeal. 5. The ld.AR submitted that the CIT(A) has decided the issue ex-parte and without considering the legal issue as well as merits of the case and he also submitted that no notice for hearing before the CIT(A) was received by the assessee. Therefore, the matter may be sent back to the file of the CIT(A) for fresh consideration. 6. On the other hand, the ld.DR relied on the orders of the lower authorities and submitted that ample opportunities were granted but assessee was unable to avail the benefit. 7. Considering the rival submissions, we note that the CIT(A) has issued notices on different dates as per para No.3.1 of his order on both addresses of the assesses. The assessee did not appear 4 of page 5 ITA No.414/Bang/2023 before the CIT(A). The assessee has raised legal issue in ground No.2 and 3 which needs to be adjudicated at the level of CIT(A). We notice that the CIT(A) has not decided the issue on merits. Therefore, in the interest of justice, we remit back the issue to the file of CIT(A) for fresh consideration in accordance with law after giving reasonable opportunity of being heard to the assessee. The assessee is directed to provide correct address and correct e-mail for communication and required documents to substantiate his case. The assessee shall not seek unnecessary adjournment for early disposal of the case. 8. In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the open court on 12 th July, 2023 Sd/- (George George K) Vice President Sd/- (Laxmi Prasad Sahu) Accountant Member Bangalore, Dated 12 th July, 2023 Vms 5 of page 5 ITA No.414/Bang/2023 Copy to: 1. The Applicant 2. The Respondent 3. The CIT 4. The CIT(A) 5. The DR, ITAT, Bangalore. 6. Guard file By order Asst. Registrar/ITAT, Bangalore 6 of page 5 ITA No.414/Bang/2023 Date of Dictation ............................................. 2. Date on which the typed draft is placed before the dictating Member ......................... 3. Date on which the approved draft comes to Sr. P. S ................................... 4. Date on which the fair order is placed before the dictating Member .................... 5. Date on which the fair order comes back to the Sr. P.S. ....................... 6. Date of uploading the order on website................................... 7. If not uploaded, furnish the reason for doing so ................................ 8. Date on which the file goes to the Bench Clerk ....................... 9. Date on which order goes for Xerox & endorsement.......................................... 10. Date on which the file goes to the Head Clerk ......................... 11. The date on which the file goes to the Assistant Registrar for signature on the order ..................................... 12. The date on which the file goes to dispatch section for dispatch of the Tribunal Order ............................... 13. Date of Despatch of Order. ..................................................... 14. Dictation note enclosed..........................................