Late Sh. Dharam Singh Kamboj through Legal Heir of Sh. Kamal Kant, Jagadhri V. ITO, W-1, Yamunanagar

ITA 444/CHANDI/2018

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 7514 (ITAT-CHANDIGARH)
• Duration Of Justice: 3 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-07-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2003-2004
• Appeal Filed On: 10-04-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MANJIT SINGH
• Keywords: Opportunity of being heard

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH SMD, CHANDIGARH BEFORE MS. DIVA SINGH, JUDICIAL MEMBER AND MS. ANNAPURNA GUPTA, ACCOUNTANT MEMBER ITA NO. 444/CHD/201 8 ASSESSMENT YEAR : 2003-04 LATE SHRI DHARAM SINGH KAMBOJ, VS. THE ITO, 1842, SECTOR 17, HUDA, WARD-1, JAGADHRI. YAMUNA NAGAR. PAN NO. :AWJPS8667C (APPELLANT) (RESPONDENT) APPELLANT BY : NONE RESPONDENT BY : SHRI MANJIT SINGH, SR.DR DATE OF HEARING : 25.06.2018 DATE OF PRONOUNCEMENT : 11.07.2018 ORDER PER DIVA SINGH THE PRESENT APPEAL HAS BEEN FILED BY THE ASSESSEE ASSA ILING THE CORRECTNESS OF THE ORDER DATED 29.12.2017 OF LD. CIT(APPEA LS) KARNAL PERTAINING TO 2003-04 ASSESSMENT YEAR ON THE FOLLOWING GROUND : THAT THE CIT(A) HAS ERRED IN LAW IN DISMISSED THE APPEAL OF THE APPELLANT WITHOUT CONSIDERING THAT NO NOTICE OF HEARING WAS R ECEIVED BY APPELLANT. 2. AT THE TIME OF HEARING, NO ONE WAS PRESENT ON BEHA LF OF THE ASSESSEE. HOWEVER, ON A PERUSAL OF THE MATERIAL AVAILABLE ON RECORD, IT WAS CONSIDERED APPROPRIATE TO PROCEED WITH THE PRESENT APPEAL EX-PART E QUA THE ASSESSEE APPELLANT ON MERIT AFTER HEARING LD. SR.DR. 3. THE RELEVANT FACTS OF THE CASE AS AVAILABLE IN THE ASSESSMENT OR DER ARE THAT THE ASSESSEE ALONGWITH HIS THREE SONS WAS FOUND T O BE THE OWNER OF THREE EDUCATIONAL TRUSTS WHICH WERE RUNNING SEVEN EDUCATIONA L INSTITUTIONS AT YAMUNA NAGAR AND JAGADHRI. THE ADDITIONS WERE MADE ON THE BASIS OF INFORMATION AVAILABLE BEFORE THE AO THAT THE ASSESSEE ALONG WITH HIS TWO SONS HAD MADE INVESTMENT IN PURCHASE OF PROPERTY I.E. 32 KANAL LAND IN VILLAGE HUNDEWALA AND HAD 1/4 TH SHARE IN THE SAID PROPERTY. THE AMOUNT INVESTED WAS SAID TO BE EXPLAINED BY WITHDRAWAL FROM SWAMI VIVEKANAND SENIOR SECONDARY SCHOOL, YAMUNA NAGAR. HOWEVER, THE EXP LANATION WAS NOT ACCEPTED. APART FROM THAT, RECEIPT OF RENTAL INCOME FRO M 959 & 960, MODEL TOWN, YAMUNA NAGAR ETC. WERE ALSO NOTICED. HOUSEHOLD EXPENSES ITA 444/CHD/2018 A.Y. 2003-04 2 WERE SOUGHT TO BE JUSTIFIED. SINCE THE ASSESSEE FAILED TO OFFER ANY EXPLANATION, THOUGH ADVOCATES BY THE NAME OF SHRI T.P.SING H AND SHRI RAHUL DID APPEAR INITIALLY AND SOUGHT TIME WHICH LED TO THE PASSING OF THE ADDITIONS MADE IN THE ASSESSMENT ORDER. THE AO VIDE HIS ORDER DATED 28.12.2010 IN THE CASE OF LEGAL HEIRS SHRI VIMAL VERMA, SANJAY KAMBOJ, KAMAL KANT OF LATE SHRI DHARAM SINGH KAMBOJ PASSED AN AS SESSMENT ORDER U/S 144. THE CORRECTNESS OF THE SAID ORDER WAS CHALLENG ED IN APPEAL BEFORE THE CIT(A). 4. THE NOTICES SENT IN THE NAME LATE SHRI DHARAM SIGH KAMBOJ REPEATEDLY RETURNED WITH THE COMMENTS PRAAPAT KARTA KI MRITYU HO CHUKI HAI. IN THE PECULIAR FACTS, ADMITTEDLY THE ASSESSEE HAS NOT BEEN HEARD AND THE IMPUGNED ORDER HAS BEEN PASSED ON THE REASONING T HAT VARIOUS OPPORTUNITIES HAVE BEEN PROVIDED. THOSE NOTICES ADMITTED LY WERE NEVER SERVED UPON THE ASSESSEE AS THEY APPEAR TO HAVE BEE N IN THE NAME OF THE LATE SHRI DHARAM SINGH KAMBOJ INSTEAD OF HIS LEGAL HEIRS . IT IS SEEN THAT THE PRESENT APPEAL HAS BEEN FILED BY SHRI KAMAL KANT AS O NE OF THE LEGAL HEIRS AND THE ASSESSMENT ORDER HAS BEEN PASSED NAMING THE LEGAL HEIRS. ACCORDINGLY, THE IMPUGNED ORDER IS SET ASIDE BACK TO THE FILE OF THE CIT(A) WITH A DIRECTION TO ISSUE NOTICE IN THE NAME OF THE LEGAL H EIRS OF LATE SHRI DHARAM SINGH KAMBOJ AND AFTER GIVING THEM OPPORTUNITY O F BEING HEARD, PASS A SPEAKING ORDER IN ACCORDANCE WITH LAW AFTER GIVING THE ASSESSEE A REASONABLE OPPORTUNITY OF BEING HEARD. 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 11.07.2018. SD/- SD/- (ANNAPURNA GUPTA) (DIVA SINGH) ACCOUNTANT MEMBER JUDICIAL MEMBER POONAM COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT 4. THE CIT(A) 5. THE DR ASSTT. REGISTRAR ITAT CHANDIGARH