Mr. Tilak Vij, New Delhi V. ITO, New Delhi

ITA 4388/DEL/2010

• Counselvise Citation: [2011] 140 COUNSELVISE.COM (IT) 53125 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 1 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-11-2011
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: H
• Next Hearing Date: 01-11-2011
• Assessment Year: 2005-2006
• Appeal Filed On: 30-09-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DR B R R KUMAR
• Keywords: Reasonable cause; Non compliance

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH : H : NEW DELHI BEFORE SHRI I.P. BANSAL, JUDICIAL MEMBER AND SHRI K.G. BANSAL, ACCOUNTANT MEMBER ITA NO.4388/DEL/2010 ASSESSMENT YEAR : 2005-06 TILAK VIJ, E-167,FIRST FLOOR, G.K. PART I, NEW DELHI. PAN : ANXPV2848P VS. ITO, DAO-61 CR BUILDING, NEW DELHI. (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI VINOD GUPTA, CA REVENUE BY : DR. B.R.R. KUMAR, SR.DR ORDER PER I.P. BANSAL, JUDICIAL MEMBER THIS IS AN APPEAL FILED BY THE ASSESSEE. IT IS DIRECTED AGAINST THE ORDER PASSED BY THE CIT (A) DATED 23 RD JULY, 2010 FOR ASSESSMENT YEAR 2005-06. THE GROUNDS OF APPEAL READ AS UNDER:- 1. ON THE FACTS AND CIRCUMSTANCES OF THE CASE LEARNED CIT (A) HAS UNWARRANTED DISMISSED THE APPEAL. THE APPEAL FILED BEFORE THE IT (A) XVI WAS RELATED WITH THE UNWARRANTED A DDITION MADE FOR RS.3,86,100/-. 2. WITHOUT PREJUDICE TO THE GROUND AS STATED ABOVE IT IS F URTHER PRAYED THAT ON THE FACTS AND CIRCUMSTANCES OF THE CASE THE APPELLANT HAS REASONABLE CAUSE FOR NON COMPLIANCE OF THE HEARING DATES WHILE ASSESSMENT PROCEEDINGS AND FURTHER WHILE APPELLATE PROCEEDINGS BEFORE CIT (A)-XXIII. THE AMO UNT OF ADDITION OF RS.3,86,100/- WHICH WAS MADE ON THE BASIS OF INFORMATION RECEIVED FROM CIB/AIR WAS PURELY FROM EX PLAINABLE SOURCES AND ACCORDINGLY DOES NOT TANTAMOUNT TO BE WILLFU LLY OR DELIBERATELY CONCEALMENT OF INCOME. ITA NO.4388/DEL/2010 2 3. THE APPELLANT CRAVES LEAVE TO ADD TO ALTER OR RESCIN D ANY OF THE GROUNDS HEREIN MENTIONED ABOVE, IF IT BECOMES NECE SSARY TO DO SO IN THE INTEREST OF JUSTICE. 2. ON THE BASIS OF THE INFORMATION RECEIVED FROM CIB/ AIR, THE NOTICE WAS ISSUED TO THE ASSESSEE U/S 142 (1) OF THE ACT. IN VIEW OF THE FAILURE OF COMPLIANCE OF THAT NOTICE AND SUBSEQUENT NOTICE, T HE ASSESSING OFFICER HAD FRAMED EX PARTE ASSESSMENT ADDING THE AMOUN T OF ` 3,86,100/- TO THE INCOME OF THE ASSESSEE AND HAS ASSESSED TH E INCOME OF THE ASSESSEE AT ` 3,86,100/-. LEARNED CIT (A) ALSO P ROVIDED THE ASSESSEE WITH VARIOUS OPPORTUNITIES. HOWEVER, IN VIEW OF FAILURE OF THE ASSESSEE FOR COMPLYING WITH THOSE, LEARNED CIT (A) HAS CO NFIRMED THE ADDITION MADE BY THE ASSESSING OFFICER. 3. AFTER NARRATING THE FACTS, IT WAS SUBMITTED BY THE LEARNED AR THAT WITH THE STATEMENT OF FACTS FILED BEFORE CIT (A) THE ASSESSEE HAD STATED THAT HE WAS ADMITTED IN APOLLO HOSPITAL ON ACCOUNT OF ILL HEALTH. THE LEARNED AR SUBMITTED THAT DUE TO ILL HEALTH THE ASSESSEE COULD NOT PRESENT BEFORE CIT (A), HENCE, IT IS A CASE WHERE EFFE CTIVE OPPORTUNITY WAS NOT AVAILED BY THE ASSESSEE TO EXPLAIN HIS CASE. THER EFORE, HE PLEADED THAT THE ASSESSEE SHOULD BE PROVIDED WITH ONE MO RE OPPORTUNITY AND THE MATTER MAY BE RESTORED BACK TO T HE FILE OF ASSESSING OFFICER FOR DENOVO ASSESSMENT. THE LEARNED AR SUB MITTED THAT THE ASSESSEE WILL EXTEND COOPERATION TO THE ASSESSING OFFICER FOR COMPLETING THE ASSESSMENT IF THE MATTER IS RESTORED BACK TO THE FILE OF ASSESSING OFFICER. 4. ON THE OTHER HAND, IT WAS SUBMITTED BY THE LEARNED DR THAT THE ASSESSEE DID NOT APPEAR BEFORE THE ASSESSING OFFICER AND CI T (A), HENCE, THE ORDER OF THE CIT (A) SHOULD BE CONFIRMED. ITA NO.4388/DEL/2010 3 5. WE HAVE CAREFULLY CONSIDERED THE RIVAL SUBMISSIONS IN THE LIGHT OF THE MATERIAL PLACED BEFORE US. KEEPING IN VIEW THE E NTIRETY OF FACTS, WE ARE OF THE OPINION THAT IT WILL SERVE THE INTEREST OF JUSTICE IF THE MATTER IS RESTORED BACK TO THE FILE OF ASSESSING OFFICER WITH A DI RECTION THAT HE WILL GIVE A REASONABLE OPPORTUNITY OF HEARING TO THE ASSESSEE AND, THEREAFTER, WILL FRAME DENOVO ASSESSMENT AS PER THE PROV ISIONS OF LAW. TO AVOID UNNECESSARY DELAY WE DIRECT THE LEARNED AR O F THE ASSESSEE TO APPEAR BEFORE THE ASSESSING OFFICER ON 16 TH JANUARY, 2012 TO WHICH THE LEARNED AR OF THE ASSESSEE HAD AGREED AND THE DATE WAS NOTED BY HIM. ACCORDINGLY, THE MATTER IS RESTORED BACK TO THE FILE OF ASSESSING OFFICER FOR FRAMING DENOVO ASSESSMENT AS DIRECTED ABOVE AND THE ASSESSEE HIMSELF OR THROUGH HIS AUTHORIZED REPRESENTATIVE WILL APPEAR BEFORE THE ASSESSING OFFICER ON 16 TH JANUARY, 2012 WHICH DATE, AS ALREADY MENTIONED, HAS BEEN TAKEN NOTE OF BY THE LEA RNED AR OF THE ASSESSEE. AS WE ARE SETTING ASIDE THE MATTER TO THE FILE OF ASSESSING OFFICER, WE DO NOT EXPRESS ANY OPINION ON THE MERITS O F THE ADDITION WHICH WILL BE RE-ADJUDICATED BY THE ASSESSING OFFICER I N PURSUANCE OF OUR AFOREMENTIONED DIRECTIONS. 6. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS TRE ATED TO BE ALLOWED FOR STATISTICAL PURPOSES IN THE MANNER AFORESAID . THE ORDER PRONOUNCED IN THE OPEN COURT ON 01.11.20 11. SD/- SD/- [K.G. BANSAL] [I.P. BANSAL] ACCOUNTANT MEMBER JUDICIAL MEMBER DATED, 01.11.2011. DK ITA NO.4388/DEL/2010 4 COPY FORWARDED TO: - 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR, ITAT BY ORDER, DEPUTY REGISTRAR, ITAT, DELHI BENCHES