Suresh Kumar Chug, New Delhi V. ITO, Ward-62(1), New Delhi

ITA 4751/DEL/2018

• Counselvise Citation: [2019] 118 COUNSELVISE.COM (IT) 5080 (ITAT-DELHI)
• Duration Of Justice: 7 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-02-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2012-2013
• Appeal Filed On: 02-07-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S L ANURAGI
• Keywords: Opportunity of being heard; Principle of natural justice; Reasonable cause; Corroborative evidences

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH SMC , NEW DELHI BEFORE SH. N. S . SAINI, ACCOUNTANT MEMBER ITA NO. 4751/DEL/2018 : ASSTT. YEAR : 2012 - 1 3 SURESH KUMAR CHUG H , 26/73, GROUND FLOOR SID E, WEST PUNJABI BAGH, NEW DELHI - 110035 VS ACIT , CIRCLE - 62(1), NEW DELHI (APPELLANT) (RESPONDENT) PAN NO. A A FPC7368 E ASSESSEE BY : SH. PRANSHU SINGHAL, CA REVENUE BY : SH. S. L. ANURAGI , SR. DR DATE OF HEAR ING: 0 6 . 02 .201 9 DATE OF PRONOUNCEMENT: 07 .02 .201 9 ORDER THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF CIT(A) - 20 , NEW DELHI DATED 19.12.2016 . 2. THE ASSESSEE HAS RAISED FOLLOWING GROUNDS OF APPEAL: 1. ON THE FACTS AND CIR CUMSTANCES OF THE CASE, THE LEARNED COMMISSIONER OF INCOME TAX [CIT(A)] IS BAD BOTH IN THE EYE OF LAW AND ON FACTS. 2. ON THE FACTS AND CIRCUMSTANCES OF THE CASE, THE LEARNED CIT(A) HAS ERRED BOTH ON FACTS AND IN LAW IN PASSING THE ORDER WITHOUT GIVING AS SESSEE AN OPPORTUNITY OF BEING HEARD IN CLEAN VIOLATION OF PRINCIPLE OF NATURAL JUSTICE. 3(I) ON THE FACTS AND CIRCUMSTANCES OF THE CASE, THE CIT(A) HAS ERRED BOTH IN THE EYES OF LAW AND ON FACTS IN CONFIRMING THE DISALLOWANCE OF RS. 7,00,000/ - ON ACCOUNT OF UNVERIFIABLE PURCHASES. (II) THAT THE ADDITIONS HAVE BEEN CONFIRMED DESPITE THE ASSESSEE BRINGING ON RECORD ALL EVIDENCES AND MATERIAL TO PROVE THE GENUINENESS OF THE TRANSACTIONS. ITA NO . 4751 /DEL /201 8 SURESH KUMAR CHUGH 2 4(I) ON THE FACTS AND CIRCUMSTANCES OF THE CASE, THE CIT(A) HAS ERRED BOTH IN THE EYES OF LAW AND ON FACTS IN CONFIRMING THE DISALLOWANCE OF RS. 2,00,000/ - ON ACCOUNT OF UNVERIFIABLE LABOUR AND WAGES EXPENSES DEBITED TO P&L ACCOUNT. (II) THAT THE ADDITIONS HAVE BEEN CONFIRMED DESPITE THE ASSESSEE BRINGING ON RECORD ALL EVI DENCES AND MATERIAL TO PROVE THE GENUINENESS OF THE TRANSACTIONS. 5. ON THE FACTS AND CIRCUMSTANCES OF THE CASE, THE CIT(A) HAS ERRED BOTH IN THE EYES OF LAW AND ON FACTS IN CONFIRMING THE DISALLOWANCE ON THE BASIS OF A NEW CASE MADE OUT AGAINST THE ASSES SES WHICH WAS NOT THERE BEFORE THE AO. 6. ON THE FACTS AND CIRCUMSTANCES OF THE CASE, THE LEARNED CIT(A) HAS ERRED BOTH ON FACTS AND IN LAW IN CONFIRMING THE ADDITIONS MADE OF RS. 89,925/ - ON ACCOUNT OF UNACCOUNTED INTEREST ON INCOME TAX REFUND IGNORING T HE EXPLANATIONS AND EVIDENCES BROUGHT ON RECORD BY THE ASSESSEE. 7. THAT THE APPELLANT CRAVES LEAVE TO ADD, AMEND OR ALTER ANY OF THE GROUNDS OF APPEAL. 3. AT THE TIME OF HEARING, THE LD. AUTHORIZED REPRESENTATIVE, SH. PRANSHU SINGHAL, CA OF THE ASSESSE E SUBMITTED THAT BEFORE THE CIT(A), THE ASSESSEE COULD NOT PUT IN APPEARANCE ON THE DATES OF HEARING FIXED BY HIM ON 23.09.2016, 19.10.2016 AND 05.12.2016. THEREFORE, THE CIT(A) DISMISSED THE APPEAL OF THE ASSESSEE OBSERVING THAT APPELLANT HAS NOT COMPLIED WITH THE NOTICES ISSUED BY HIM AND NO SUPPORTING EVIDENCES WAS PRODUCED IN FAVOUR OF THE CLAIM OF GROUND OF APPEAL AND THEREFORE, HE FOUND NO REASON TO INTERFERE WITH THE DECISION OF THE ASSESSING OFFICER AND ADDITION MADE BY HIM ARE CONFIRMED. ITA NO . 4751 /DEL /201 8 SURESH KUMAR CHUGH 3 4. BEFOR E ME, THE COUNSEL OF THE ASSESSEE SUBMITTED THAT THE ASSESSEE FELL ILL DURING THE PERIOD WHEN THE HEARING WAS GOING ON BEFORE THE CIT(A) AND THEREFORE, COULD NOT ASSIST HIS COUNSEL FOR COMPLIANCE WITH THE NOTICES OF HEARING ISSUED BY THE CIT(A). HE PRAYED THAT THE ASSESSEE HAS A GOOD CASE AND HAS ALL THE EVIDENCES IN HIS POSSESSION AND THEREFORE, IN THE INTEREST OF RENDERING OF SUBSTANTIAL JUSTICE TO THE ASSESSEE ONE MORE OPPORTUNITY SHOULD BE GRANTED BY RESTORING THE MATTER BACK TO THE FILE OF THE CIT(A) F OR PERUSING ITS APPEAL BEFORE HIM. 5. THE LD. DEPARTMENTAL REPRESENTATIVE VEHEMENTLY OPPOSED THE SUBMISSION OF THE AUTHORIZED REPRESENTATIVE OF THE ASSESSEE. 6. AFTER CONSIDERING THE RIVAL SUBMISSIONS AND PERUSING THE MATERIAL ON RECORD, I AM OF THE CON SIDERED OPINION THAT IN THE GIVEN FACTS AND CIRCUMSTANCES OF THE CASE, THE ASSESSEE HAD REASONABLE CAUSE FOR NOT BEING PRESENT BEFORE THE CIT(A) ON THE DATES OF HEARING OF APPEAL FIXED BY HIM. IT IS AN ESTABLISHED POSITION OF LAW WHEN SUBSTANTIAL JUSTICE A ND TECHNICALITIES ARE P ITTED AGAINST EACH OTHER THEN THE COURTS SHOULD TAKE A LIBERAL VIEW AND SHOULD FURTHER THE CAUSE OF RENDERING SUBSTANTIAL JUSTICE. HENCE, I SET ASIDE THE ORDER OF THE CIT(A) AND RESTORE THE MATTER BACK TO HIS FILE TO ADJUDICATE THE APPEAL OF THE ASSESSEE AFRESH AFTER ALLOWING REASONABLE AND PROPER OPPORTUNITY OF HEARING TO THE ASSESSEE. 7 . BEFORE PARTING WITH THE ORDER, I WOULD LIKE TO STATE THAT THE ASSESSEE SHALL SUO - MOTU APPEAR BEFORE THE CIT(A) WITHIN ONE MONTH FROM THE DATE OF RECEIPT OF ORDER FOR FIXING THE DATE OF HEARING BY HIM. THE ASSESSEE IS DIRECTED TO FULLY COOPERATE WITH THE CIT(A) BY FILING ALL DOCUMENTS AND EVIDENCES AS AND WHEN CALLED UPON TO DO SO BY THE CIT(A). THE CIT(A) IS ALSO DIRECTED TO DISPOSE OF THE APPEAL OF THE ASSESSEE EXPEDITIOUSLY. WITH THESE DIRECTIONS, THE APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ITA NO . 4751 /DEL /201 8 SURESH KUMAR CHUGH 4 8 . IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES . (ORDER PRO N OUNCED IN THE OPEN COURT ON 07 /0 2 /2019). SD/ - (N. S . SAINI) ACCOUNTANT MEMBER DATED: 07 /02/2019 *SUBODH* COPY FORWARDED TO: 1 . APPELLANT 2 . RESPONDENT 3 . CIT 4 . CIT(APPEALS) 5 . DR: ITAT ASSISTANT REGISTRAR