Sh. Sameer Aggarwal, Panchkula V. ITO Ward-4, Panchkula

ITA 615/CHANDI/2022

AI Insights

This case involves an appeal by Shri Sameer Aggarwal against the order of the CIT(A) and NFAC Delhi, which pertained to the Assessment Year 2017-18. The primary grievances included the ex-parte nature of the CIT(A)'s decision, the incorrect application of tax rates on additions made under section 68 of the Income Tax Act, and the confirmation of certain additions made by the Assessing Officer (AO). The Tribunal found that the assessee was not given a fair opportunity to present his case, leading to the decision to remand the case back to the CIT(A) for a fresh hearing.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 133724 (ITAT-CHANDIGARH)
• Duration Of Justice: 6 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-03-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: Not Allotted
• Next Hearing Date: 26-03-2023
• Assessment Year: 2017-2018
• Appeal Filed On: 05-09-2022
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 68

Judgement Text

आयकर अपीलीय अिधकरण आयकर अपीलीय अिधकरणआयकर अपीलीय अिधकरण आयकर अपीलीय अिधकरण,च瀃डीगढ़ 瀈यायपीठ च瀃डीगढ़ 瀈यायपीठच瀃डीगढ़ 瀈यायपीठ च瀃डीगढ़ 瀈यायपीठ , च瀃डीगढ़ च瀃डीगढ़च瀃डीगढ़ च瀃डीगढ़ IN THE INCOME TAX APPELLATE TRIBUNAL, CHANDIGARH BENCH ‘A CHANDIGARH BEFORE: SHRI A.D.JAIN, VICE PRESIDENT AND SHRI VIKRAM SINGH YADAV, ACCOUNTANT MEMBER आयकर आयकरआयकर आयकर अपील अपीलअपील अपील सं संसं सं./ ITA No. 615/CHD/2022 Assessment Year : 2017-18 Shri Sameer Aggarwal, House No. 838, Sector-7, Panchkula, Haryana. बना म VS The ITO, Ward-4, Panchkula. 瀡थायी लेखा सं./PAN /TAN No: AFZPA9004J अपीलाथ牸/Appellant 灹瀄यथ牸/Respondent िनधा榁琇रती क琉 ओर से/Assessee by : Shri Parikshit Aggarwal, C.A. राज瀡व क琉 ओर से/ Revenue by : Shri Akashdeep, JCIT, Sr.DR तारीख/Date of Hearing : 27.03.2023 उदघोषणा क琉 तारीख/Date of Pronouncement : 28.03.2023 आदेश आदेशआदेश आदेश/ORDER PER VIKRAM SINGH YADAV, A.M. This is an appeal filed by the assessee against the order of ld. CIT(A) and NFAC Delhi dated 24.08.2022 pertaining to Assessment Year 2017-18 wherein the assessee has taken the following grounds of appeal : 1. That on the facts, circumstances and legal position of the case, the Worthy CIT(A), NFAC in Appeal No. CIT (A), Panchkula/11671/2019-20 dated 24.08.2022 has erred in passing that order in contravention of provisions o f S. 250(6) of the Income Tax Act, 1961. 2. That on law, facts and circumstances of the case, the impugned order passed by Worthy CIT(A) deserves to be quashed since he has erred in passing the order ex- parte without providing reasonable opportunity of being heard and there existed reasonable cause with the appellant for non-filing of written submission on the appointed date. ITA 615 /CHD/2022 A.Y. 2017-18 Page 2 of 4 3. That on the facts, circumstances and legal position of the case, the Worthy CIT(A) has erred in confirming the addition of Rs. 18,00,109/- made by Ld. AO u/s 68 of the Act by erroneously holding that cash deposit in bank during demonetization period is from unexplained sources. 4. That on the facts, circumstances and legal position of the case, the Worthy CIT(A) has erred in upholding the action of Ld. AO of charging tax rate of 60% u/s 115BBE on addition made u/s 68 in respect of cash deposit in bank even when the said addition, even if accepted academically, could have been brought to normal tax rates only. 5. That on the facts, circumstances and legal position of the case, the Worthy CIT(A) has erred in confirming the addition of Rs. 7,906/- made by Ld. AO on account of disallowance of interest expense paid in excess of 12% p.a. on unsecured loans. 2. In Ground No.2, the assessee has challenged the order passed by the ld. CIT(A) NFAC stating that the order has been passed ex-parte without providing reasonable opportunity to the assessee. During the course of hearing, the ld. AR submitted that the matter was scheduled for hearing on three different occasions and on each of the dates so fixed for the hearing, the assessee had moved an adjournment application seeking time to file the necessary information and documentation. It was, accordingly, submitted that it is not a case of deliberate non- appearance before the ld. CIT(A) and there thus, exists reasonable cause for non appearance and non filing of submissions before the ld. CIT(A). It was submitted that the assessee may be allowed one more opportunity to represent his case before the ld. CIT(A) and be heard on merits of the case. 3. Per contra, the ld. DR submitted that the assessee was provided number of opportunities by the ld. CIT(A) and since the assessee has not availed any of the opportunities, the ld. CIT(A) ITA 615 /CHD/2022 A.Y. 2017-18 Page 3 of 4 left with no option decided the appeal ex-parte based on material available on record. 4. Heard both the parties and perused the material available on record. It is an admitted fact that the appeal of the assessee has been decided ex-parte by the ld. CIT(A), therefore, in the interest of substantial justice, we believe that assessee deserves one more opportunity to represent his case before the ld. CIT(A). The matter is, accordingly, set aside to the file of ld. CIT(A) to decide the same on merits afresh as per law after providing reasonable opportunity to the assessee. It goes without saying that the assessee shall participate in the appellate proceedings as so directed by the ld. CIT(A) and file necessary information, documentation as so instructed. The ground of appeal raised by the assessee is thus, allowed for statistical purposes. 5. The other grounds on merits of the case are left open and not been adjudicated upon. 6. In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the Open Court on 28 th March, 2023. Sd/- Sd/- (A.D.JAIN ) (VIKRAM SINGH YADAV ) VICE PRESIDENT ACCOUNTANTMEMBER “Poonam” ITA 615 /CHD/2022 A.Y. 2017-18 Page 4 of 4 आदेश क琉 灹ितिलिप अ灡ेिषत/ Copy of the order forwarded to : 1. अपीलाथ牸/ The Appellant 2. 灹瀄यथ牸/ The Respondent 3. आयकर आयु猴/ CIT 4. िवभागीय 灹ितिनिध, आयकर अपीलीय आिधकरण, च瀃डीगढ़/ DR, ITAT, CHANDIGARH 5. गाड榁 फाईल/ Guard File आदेशानुसार/ By order, सहायक पंजीकार/ Assistant Registrar