Smt. Uma Rani, Yamuna Nagar V. The Income Tax Officer, Ward 5, Yamuna Nagar

ITA 655/CHANDI/2022

AI Insights

This case involves an appeal by Smt. Uma Rani Jathlana against the order of the Ld. CIT(A), NFAC, Delhi, which pertained to the Assessment Year 2012-13. The primary issues in the appeal included the legality of an ex-parte order passed by the CIT(A) without proper opportunity of hearing, the reopening of the case under Section 148, and the addition of Rs. 10,83,167 as unexplained investment in property under Section 69 of the Income Tax Act. The Tribunal found that the assessee was not given adequate opportunity to present her case and thus remanded the matter back to the CIT(A) for a fresh decision.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 127726 (ITAT-CHANDIGARH)
• Duration Of Justice: 6 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-04-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: Not Allotted
• Next Hearing Date: 24-04-2023
• Assessment Year: 2012-2013
• Appeal Filed On: 12-10-2022
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Unexplained investment; Set aside
• Section: 147; 69; 148; 143(3)

Judgement Text

आयकर अपील य अ धकरण,च डीगढ़ यायपीठ “बी” , च डीगढ़ IN THE INCOME TAX APPELLATE TRIBUNAL, CHANDIGARH BENCH “ B”, CHANDIGARH ी आकाश द प जैन, उपा य! एवं ी %व&म (संह यादव, लेखा सद-य BEFORE: SHRI. AAKASH DEEP JAIN, VP & SHRI. VIKRAM SINGH YADAV, AM ITA NO. 655/Chd/ 2022 Assessment Year : 2012-13 Smt. Uma Rani Jathlana, Jathlana P.O. Yamuna Nagar, The ITO Ward-5, Yamunanagar PAN NO: DIXPR6849L Appellant Respondent ! " Assessee by : Shri Tej Mohan Singh, Advocate # ! " Revenue by : Smt. Surinder Kaur Waraich, JCIT, Sr. DR $ % ! & Date of Hearing : 25/04/2023 '()* ! & Date of Pronouncement : 27/04/2023 आदेश/Order PER VIKRAM SINGH YADAV, A.M. : This is an appeal filed by the assessee against the order of the Ld. CIT(A), NFAC, Delhi dt. 13/09/2022 pertaining to Assessment Year 2012-13 wherein the assessee has taken the following grounds of appeal: 1. That the Ld. Commissioner of Income Tax (Appeals) has erred in law as well as of facts in passing an ex-parte order without affording proper opportunity of hearing which is illegal, arbitrary and unjustified. 2. That the Ld. Commissioner of Income Tax (Appeals)has further erred in upholding reopening of the case resorting to the provisions of Section 148 in as much as there was no reason to believe that income had escaped assessment and as such the assessment framed is illegal, arbitrary and unjustified. 3. Without prejudice to the above, the Ld. Commissioner of Income Tax (Appeals) has erred in law as well as on facts in upholding the addition of Rs. 10,83,167/- on account of alleged unexplained investment in purchase of property applying the provisions of Section 69 of the Act which is arbitrary and unjustified. 4. That the appellant craves leave to add or amend the grounds of appeal before the appeal is finally heard or disposed off. 2 5. That the order of the Ld. CIT (A) is erroneous, arbitrary, opposed to law & facts of the case and thus untenable. 2. Briefly the facts of the case are that the assessment in this case was completed under section 147 r.w.s 143(3) dt. 16/12/2019 wherein the AO had made an addition of Rs. 10,83,167/- towards unexplained investments, being the 1/9 th share in the property, which was made during the year under consideration. 3. Against the said order, the assessee moved in appeal before the Ld. CIT(A) who has since sustained the said addition and against the said findings, the assessee is in appeal before us. 4. During the course of hearing, the Ld. AR submitted that the Ld. CIT(A), NFAC, Delhi has passed an ex-parte order without providing adequate opportunity to the assessee. In this regard, it was fairly submitted that notices were issued by the Ld. CIT(A), NFAC, Delhi through the ITBA Portal and the assessee did respond to the said notices seeking further time to collect necessary information/documentation. However, without providing an opportunity to the assessee to file necessary information / documentation, the order has been passed ex-parte qua the assessee and it was submitted that the assessee may be allowed one more opportunity to represent her case and file necessary submissions / information before the Ld. CIT(A), NFAC, Delhi. 5. Per contra, the Ld. DR submitted that the assessee has been provided more than adequate opportunity by the Ld. CIT(A), NFAC, Delhi through ITBA Portal and she accordingly supported the ex-parte order so passed by the Ld. CIT(A), NFAC Delhi . 6. We have heard the rival contentions and perused the material available on the record. We find that it is not in dispute that the Ld. CIT(A), NFAC Delhi had issued notices through the ITBA Portal but at the same time the assessee sought time to respond to the said notices. However without any further 3 communication to the assessee, the Ld. CIT(A), NFAC Delhi has proceeded ahead and decided the matter ex-parte qua the assessee. Therefore in the facts and circumstances of the present case, we believe that assessee deserves one more opportunity to represent her case and file necessary information / documentation so that the matter may be decided on merits after providing reasonable opportunity to the assessee and the grievance of the assessee that no opportunity has been provided before deciding the matter may be appropriately addressed. Therefore, we set aside the matter to the file of the Ld. CIT(A), NFAC, Delhi to decide the same afresh after providing reasonable opportunity to the assessee. Needless to say the assessee shall attend to the proceedings and comply with notices issued through ITBA Portal or through any other mode of communication and co-operate in timely completion of the proceedings. 7. In the result, appeal of the assessee is allowed for statistical purposes. Order pronounced in the open Court on 27/04/2023. Sd/- Sd/- आकाश द प जैन %व&म (संह यादव (AAKASH DEEP JAIN) ( VIKRAM SINGH YADAV) उपा य! / VICE PRESIDENT लेखा सद-य/ ACCOUNTANT MEMBER AG Date: 27/04/2023 ( + ! , - . - Copy of the order forwarded to : 1. The Appellant 2. The Respondent 3. $ / CIT 4. - 0 ग 2 3 & 2 3 456 ग7 DR, ITAT, CHANDIGARH 5. ग 6 8 % Guard File ( + $ By order, 9 # Assistant Registrar