Shri Bana Singh , Bhopal V. The ITO 2 (4) , Bhopal

ITA 420/Ind/2022

AI Insights

The case involves an appeal by the assessee, Bana Singh, against the order of the Commissioner of Income Tax (Appeals), which dismissed the appeal for want of prosecution. The primary issues in the appeal included the legality of the notice issued under section 148 and the subsequent assessment made, as well as the protective addition of Rs. 1,44,17,317 under section 68 of the Income Tax Act. The CIT(A) dismissed the appeal due to non-compliance by the assessee in responding to notices, without addressing the substantive issues raised. The Tribunal, after hearing the arguments, decided to set aside the CIT(A)'s order and remand the case for a fresh hearing on merits.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 130607 (ITAT-INDORE)
• Duration Of Justice: 6 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-06-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 21-06-2023
• Assessment Year: misc
• Appeal Filed On: 15-12-2022
• Other Referred Cases: CIT Vs Multiplan India Ltd., Estate of Late Tukoji Rao Holker Vs. CWT
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 68; 148

Judgement Text

Page 1 of 3 आयकर अपील य अ धकरण, इंदौर यायपीठ, इंदौर IN THE INCOME TAX APPELLATE TRIBUNAL INDORE BENCH, INDORE BEFORE SHRI VIJAY PAL RAO, JUDICIAL MEMBER AND SHRI B.M. BIYANI, ACCOUNTANT MEMBER ITA No. 420/Ind/2022 (Assessment Year:2011-12 ) Bana Singh G-2/119, Milestone 100, Trilanga Road, Gulmohar Colon Bhopal Vs. ITO 2(4) Bhopal (Appellant / Assessee) (Respondent/ Revenue) PAN: BDXPS 2724 Q Assessee by Shri Gagan Tiwari, AR Revenue by Shri Ashish Porwal, Sr. DR Date of Hearing 22.06.2023 Date of Pronouncement 22.06.2023 O R D E R Per Vijay Pal Rao, JM: This appeal by the assessee is directed against the order dated 22.11.2022 of Commissioner of Income Tax(Appeal), National Faceless Appeal Centre, Delhi for Assessment Year 2011-12. The assessee has raised following grounds of appeal: “1.That on the facts and in the circumstances of the case and in law, the Ld. CIT(Appeals) is not justified in dismissing the appeal of the assessee. 2.That on the facts and in the circumstances of the case and in law, the issue of notice u/s.148 and the assessment made pursuant to such notice are unlawful and without jurisdiction and, therefore, be cancelled ITA No.420/Ind/2022 Bana Singh Page 2 of 3 Page 2 of 3 3.That on the facts and in the circumstances of the case and in law, the Ld. CIT(A) erred in not justified in confirming the protective addition made at Rs. 1,44,17,317. 4.That on the facts and in the circumstances of the case. and in law as the assessee does not maintain any books of accounts and therefore the addition of Rs. 14417317 u/s 68 is unlawful and unjustified and therefore be deleted. 5.That on the facts and in the circumstances of the case and in law, the addition of Rs. 14417317 is unlawful and unjustified and therefore be deleted. 6. That on the facts and in the circumstances of the case and in law, the sum of Rs.14417317 does not represent does not represent the undisclosed income of the assesse and therefore the addition of Rs.14417317 is unjustified and unlawful and therefore be deleted. 2. We have heard the Ld. AR as well as Ld. DR and carefully perused the impugned order of the Ld. CIT(A). The assesse raised various grounds before the Ld. CIT(A) including the validity of the reopening of the assessment as well as protective additions made in the hands of assesse. The Ld. CIT(A) dismissed the appeal of the assesse for want of prosecution when nobody on behalf of the assessee responded to the various notices issued by the Ld. CIT(A). The relevant finding of the Ld. CIT(A) is as under: “6. The aforesaid non compliances reveals beyond doubt that the appellant has nothing to say in the matter of present appeal. Thus, it appears that the assessee is not interested in prosecution of the present appeal and the same is liable to be dismissed on this ground itself. The law assists those who are vigilant and not those who sleep over their rights. This principle is embodied in the well known dictum "VIGILATIBUS, NON DORMENTIBUS, JURA SUBVENIUNT". Considering the facts and relying on the decision of the Hon'ble, ITAT, Delhi Bench, in the case of CIT Vs Multiplan India Ltd. reported in 38- ITD-320 and the judgement of the Hon'ble Madhya Pradesh High Court in the case of Estate of Late Tukoji Rao Holker Vs. CWT (1997) reported in 223-ITR-480 the present appeal is hereby dismissed. 7. The appellant has raised grounds of appeal No. 1 to 5 which challenge the addition of Rs. 1,44,17,317/- made by the AO u/s 68 of Act and challenged the notice u/s 148 issued by the AO. It is noted that the appeal of the appellant has been dismissed by me for non prosecution in para 6. In view thereof the various grounds raised in appeal have become academic in nature. Grounds of Appeal No. 1 to 5 are dismissed.” ITA No.420/Ind/2022 Bana Singh Page 3 of 3 Page 3 of 3 3. Thus, it is clear from the impugned order of the Ld. CIT(A) that the appeal of the assesse was not adjudicated on merits but it was dismissed for want of prosecution. Accordingly, the impugned order of the Ld. CIT(A) is not in accordance with provisions of section 250(6) of the Act and liable to be set aside. We order accordingly and matter is remanded to the record of the CIT(A) for deciding appeal of the assesse afresh on merits after giving one more opportunity of hearing to the assesse. 4. In the result, appeal of the assessee is allowed for statistical purposes. The Order is pronounced in the open court after conclusion of the hearing on 22.06.2023. Sd/- Sd/- (B.M. BIYANI) (VIJAY PAL RAO) Accountant Member Judicial Member Indore, 22.06.2023 Patel/Sr. PS Copies to: (1) The appellant (2) The respondent (3) CIT (4) CIT(A) (5) Departmental Representative (6) Guard File By order UE COPY Sr. Private Secretary Income Tax Appellate Tribunal Indore Bench, Indore