Tu Casa, New Delhi V. ITO WARD - 46(4), New Delhi

ITA 6048/DEL/2019

• Counselvise Citation: [2022] 106 COUNSELVISE.COM (IT) 9423 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 1 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-09-2022
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: G
• Assessment Year: 2015-2016
• Appeal Filed On: 14-07-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Opportunity of being heard; Audi alteram partem
• Section: 142(1); 143(2); 145(3)

Judgement Text

Page | 1 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘H’, NEW DELHI Before Shri C. N. Prasad, Judicial Member Dr. B. R. R. Kumar, Accountant Member ITA No. 6048/Del/2019 Assessment Year: 2015-16 Tu Casa, 16/82-C, Street No. 3, Joshi Road, Karol Bagh, New Delhi Vs. ITO, Ward-46(4), New Delhi (APPELLANT) (RESPONDENT) PAN No. AACCV4323J Assessee by : Shri K. Sampath, Sr. Adv and Shri V. Rajkumar Adv Revenue by : Shri M. Baranwal, CIT DR Date of Hearing: 05/09/2022 Date of Pronouncement: 07.09.2022 ORDER Per Dr. B. R. R. Kumar, Accountant Member: 1. The present appeals is filed by the Assessee against the order of the ld CIT(A)-20, New Delhi dated 16.04.2019 for the Assessment Year 2015-16. 2. The brief facts of the case is that return on income for the A.Y. 2015-16 in this case was filed on 29/09/2015 vide E -filing acknowledgment No. 829064201290915 declaring an income of Rs. Nil. The case was selected for Complete scrutiny under CASS. Statutory notices u/s. 143(2) and 142(1) of the Income Tax Act, 1961 were issued to the assessee, which were duly served upon' the assessee. Page | 2 However none attended on the part of the assessee. The details of the scrutiny proceedings are as under:- S No. Date of issue of notice Date of hearing Remark 1 Notice u/s. 143(2) of the I.T.Act 1961 issued on 28/07/2016 01/08/2016 None attended 2 Notice u/s. 143(2) of the I.T.Act 1961 issued on 09/08/2016 29/08/2016 None attended 3 Notice u/s. 142(1) of the I.T.Act 1961 issued on 15/06/2017 27/06/2017 None attended 4 Notice u/s. 142(1) of the I.T.Act 1961 issued on 25/07/2017 03/08/2017 None attended 5 Notice u/s. 142(1) of the alongwith the notice of the initiation of 271(l)(b) of the I.T. Act 1961 23/08/2017 None attended 6 On 30/08/2017 Sh. Surender Kumar Chopra C.A. attended and case was adjourned for 14/09/2017 14/09/2017 None attended 7 Notice u/s. 142(1) of the I.T. Act 1961 issued on 15/09/2017 25/09/2017 None attended 8 On 17/11/2017 Sh. Surender Kumar Chopra G.A. attended and submitted the part of documents case was adjourned for 20/11/2017 20/11/2017 None attended 9 Notice u/s. 142(1) of the IT Act, 1961 alongwith letter of final opportunity issued to Assessee and the same has also email to the Assessee 27/11/2017 None attended 10. Notice u/s 142(1) of the IT Act, 1961 28/11/2017 alongwith letter of final opportunity and information regarding the rejection of the books of accounts u/s 145(3) of the Income Tax Act was issued to Assessee and the same has also email to the Assessee 05/12/2017 None attended 11. Notice u/s 142(1) of the Income Tax Act, 1961 issued to partner of M/s. TU CASA 12/12/2017 None attended 3. The appellant before the ld CIT(A) submitted that it did not receive any notice. The ld CIT(A) held that on perusal of the assessment order it appears that the Assessing Officer had issued a number of notices and out of such 11 times there have been no attendance by the Page | 3 appellant. The Assessing Officer had issued notice alongwith a letter of giving final opportunity and information regarding rejection of books of accounts u/s 145(3) of the Act and to this notice also there has been no attendance. Further Assessing Officer had issued notices to the partners of the appellant and there was even no attendance. So the Assessing Officer was left with no alternative but to estimate the income of the appellant. 4. The ld CIT(A) held that On perusal of the balance sheet and P&L a/c estimated the income of the appellant at 10% of the gross receipts. 5. We have gone through the contention of both the parties. During the arguments the ld AR prayed that the ld CIT(A) has not rightly appreciated the facts on record and adjudicated based on the non-compliance before the AO and pleaded that the Assessee be given an opportunity to submit its entire submission before the AO. 6. We strongly believe that every assessee has a right to appeal before the authorities against any addition or disallowance made to the returned income, at the same time, it is least expected that the assessee would comply to the notices issued by the authorities in an appropriate way. The assessee having miserably failed to attend before the AO has taken the grounds of “audi alteram partem” before us. While the grievance of the assessee is not being preempted by us, at the same time, we feel that the conduct of the assessee is clogging the already burdened justice delivery system. Hence, we hereby direct the assessee to pay an amount of Rs.10,000/- to the “Prime Page | 4 Minister’s National Relief Fund” and approach the AO for a fresh hearing denovo which shall be considered. The AO is hereby directed to afford an opportunity of being heard to the assessee before conclusion of the proceedings. 7. In the result, the appeal of the assessee is allowed for statistical purposes. Order Pronounced in the Open Court on 07/09/2022. Sd/- Sd/- (C. N. Prasad) (Dr. B. R. R. Kumar) Judicial Member Accountant Member Dated: 07/09/2022 *Ajay Kumar Keot, Sr. PS* Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR