Babli, Faridabad V. ITO WARD - 1(2), Faridabad

ITA 4525/DEL/2019

• Counselvise Citation: [2022] 106 COUNSELVISE.COM (IT) 1033 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 3 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-08-2022
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2015-2016
• Appeal Filed On: 16-05-2019
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Section: 147; 148

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, DELHI ‘A’ BENCH, NEW DELHI BEFORE SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER, AND MS. ASTHA CHANDRA, JUDICIAL MEMBER ITA No. 4525/DEL/2019 [A.Y 2015-16] Smt. Babli Vs. The I.T.O House No. 119-R, FF, Ward - 1(2) Bombay Juice Corner Delhi Agra Chowk, Palwal, Faridabad PAN: AQXPB 1264 A (Applicant) (Respondent) Assessee By : None Department By : Shri Kanav Bali, Sr.DR Date of Hearing : 30.08.2022 Date of Pronouncement : 30.08.2022 ORDER PER N.K. BILLAIYA, ACCOUNTANT MEMBER:- This appeal by the assessee is preferred against the order of the CIT(A), Faridabad dated 25.02.2019 pertaining to Assessment Year 2015-16. . 2 2. The grievances of the assessee read as under: “1. That having regards to the facts and circumstance of the case the order passed by the CIT (A), Faridabad, is bad in law. 2. That having regard to the facts and circumstance of the case the CIT (A) has erred in law in affirming the order passed by the Ld. AO on imposing the demand of Rs. 23,76,560/- U/s 143 (3) of Income Tax Act,1961. 3. That reassessment proceedings initiated u/s 148 are void ab-initio since the A.O. failed to verify the veracity of the information before recording the so called reasons as held by the Honorable Delhi HC and Honorable Punjab and Haryana High Courts in various cases. Mere receipt of information from AIR (Annual Information Return) does not confer power on AO to initiate proceedings u/s AO. The CIT (A) grossly erred in law in ignoring the binding decisions of the high court relied upon by the appellant while upholding the validity of such proceedings 4. Mere cash deposit in bank was not a reason to believe that income was escaped. The LD. A.O was having information only that there was cash deposit in bank and he considered the same as a revenue receipt and raise the demand. But it was a capital receipt and the same is not chargeable to tax as per Income Tax Act, 1961. 3 5. That reassessment proceedings initiated u/s 148 are void ab-initio since the reasons recorded are vague without reference to any material on record. There is no nexus or live link between the information/material and the formation of belief that there is escapement of income for the year under consideration and thus contrary to the settled legal position. The CIT (A) grossly erred in law in ignoring the binding decisions of the high court relied upon by the appellant while upholding the validity of such proceedings. 6. The CIT (A) erroneously decided the above legal issue on the basis of the information which was not available with the AO on the date when the reasons were recorded. 7. That reassessment proceedings initiated u/s 148 are void ab-initio since approval u/s 151 is not in accordance with law. And not provided to the Assessee along with reasons recorded by the Ld. A.O. That assessment framed u/s 147 are bad in law since assessment is made without supplying approval U/s 151 in prescribed format. Therefore whole assessment is liable to be quashed. 8. That the appellant craves the leave to add, modify, amend or delete any of the grounds of appeal at the time of hearing and all the above grounds are without prejudice to each other. 4 It is therefore prayed that the impugned addition be deleted or such other suitable relief be allowed which the Hon’ble bench may deem fit.” 3. None appeared on behalf of the assessee inspite of notice. We decided to proceed exparte. The ld. DR was heard at length. Case records carefully perused. 4. A perusal of the assessment order and the order of the first appellate authority qua the grounds of appeal taken in Form No. 36 before us shows that the grounds taken by the assessee are not emanating from the orders of the authorities below. Therefore, we are left with no choice but to dismiss the appeal. 5. However, the assessee is at liberty to file revised grounds of appeal emanating from the orders of the authorities below as per provisions of law and if found proper, this order may be recalled as per provisions of the law. For now, the appeal is dismissed. 5 6. In the result, the appeal of the assessee in ITA No. 4525/DEL/2019 is dismissed. The order is pronounced in the open court on 30.08.2022. Sd/- Sd/- [ASTHA CHANDRA] [N.K. BILLAIYA] JUDICIAL MEMBER ACCOUNTANT MEMBER Dated: 30 th August, 2022. VL/ Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(A) 5. DR Asst. Registrar, ITAT, New Delhi 6 Date of dictation Date on which the typed draft is placed before the dictating Member Date on which the typed draft is placed before the Other Member Date on which the approved draft comes to the Sr.PS/PS Date on which the fair order is placed before the Dictating Member for pronouncement Date on which the fair order comes back to the Sr.PS/PS Date on which the final order is uploaded on the website of ITAT Date on which the file goes to the Bench Clerk Date on which the file goes to the Head Clerk The date on which the file goes to the Assistant Registrar for signature on the order Date of dispatch of the Order