Karamveer Aggarwal, New Delhi V. ITO WARD - 39(5), New Delhi

ITA 658/DEL/2020

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 2323 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 4 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-06-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2011-2012
• Appeal Filed On: 04-02-2020
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Opportunity of being heard; Principle of natural justice; TDS; Set aside
• Section: 147; 148

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, DELHI BENCH: SMC-2 NEW DELHI BEFORE SHRI KUL BHARAT, JUDICIAL MEMBER AND SHRI O.P. KANT, ACCOUNTANT MEMBER [THROUGH VIDEO CONFERENCING] ITA NO.658/DEL/2020 ASSESSMENT YEAR: 2011-12 SH. KARAMVEER AGGARWAL, 214, HARSH VIHAR, PITAMPURA, NEW DELHI VS. ITO, WARD-39(5), NEW DELHI PAN :ADSPA6093J (APPELLANT) (RESPONDENT) ORDER PER O.P. KANT, AM: THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST ORD ER DATED 5/12/2019 PASSED BY THE LEARNED COMMISSIONER OF INC OME TAX (APPEALS), DELHI-13 [IN SHORT THE LD. CIT(A)] FOR ASSESSMENT YEAR 2011-12 RAISING FOLLOWING GROUNDS: 1. THE LEARNED CIT(A)-XIII ERRED IN CONFIRMING THE ADDITION MADE BY ASSESSING AUTHORITY WITHOUT APPRECIATING THE FACTS AND CIRCUMSTANCES OF THE CASE. APPELLANT BY NONE RESPONDENT BY SH. R.K. GUPTA, SR. DR DATE OF HEARING 28.06.2021 DATE OF PRONOUNCEMENT 28.06.2021 2 ITA NO. 658/DEL/2020 2. THAT THE LD. CIT(A)-XIII HAS DISMISSED THE APPEA L WITHOUT AFFORDING PROPER OPPORTUNITY TO THE ASSESSEE. THAT THE ASSESSEE HAS NOT RECEIVED ANY NOTICE BY POST OR BY HAND. 3. THAT LD. CIT(A)-XIII HAS PASSED ORDER WITHOUT SE RVING ANY STATUTORY NOTICE IS BAD IN LAW AND AGAINST THE PRIN CIPAL OF NATURAL JUSTICE AND SHOULD BE QUASHED AB-INITIO. 4. ASSESSEE HAS EVERY RIGHT TO MAKE, ADD, DELETE, M ODIFY OR ALTER ANY GROUND OF APPEAL AT THE TIME OF HEARING. 2. BRIEFLY STATED FACTS OF THE CASE ARE THAT ASSESSME NT FOR THE YEAR UNDER CONSIDERATION WAS REOPENED BY WAY OF ISS UE OF NOTICE DATED 31/03/2018 UNDER SECTION 148 OF THE INCOME-TA X ACT, 1961 (IN SHORT THE ACT). IN RESPONSE TO THE NOTICE, TH E ASSESSEE FILED A RETURN OF INCOME ON 26/11/2018, DECLARING INCOME OF 5,58,200/-. SUBSEQUENTLY, STATUTORY NOTICES WERE I SSUED TO THE ASSESSEE. IN THE ASSESSMENT COMPLETED ON 31/12/2018 UNDER SECTION 147 READ WITH SECTION 143 OF THE ACT, THE A SSESSING OFFICER MADE ADDITION OF 16.66 LAKHS ON ACCOUNT OF TRANSACTION OF SALE OF AGRICULTURAL LAND. AGGRIEVED, THE ASSESSEE FILED AP PEAL BEFORE THE LD. CIT(A). BEFORE THE LD. CIT(A), NONE ATTENDED ON BEHALF OF THE ASSESSEE, AND THEREFORE HE PASSED EX PARTE ORDER AND CONFIRMED THE FINDING OF THE ASSESSING OFFICER. AGGRIEVED, TH E ASSESSEE IS IN APPEAL BEFORE THE INCOME-TAX APPELLATE TRIBUNAL (IN SHORT THE TRIBUNAL) RAISING THE GROUNDS AS REPRODUCED ABOVE. 3. DESPITE NOTIFYING, NEITHER ANYONE ATTENDED ON BEHA LF OF THE ASSESSEE, NOR ANY ADJOURNMENT APPLICATION WAS FILED ON BEHALF OF THE ASSESSEE, AND THEREFORE MATTER WAS HEARD EX PARTE QUA THE ASSESSEE, AFTER HEARING ARGUMENTS OF THE LEARNED DE PARTMENTAL REPRESENTATIVE (DR). 4. WE HAVE HEARD SUBMISSION OF THE LEARNED DEPARTMENT AL REPRESENTATIVE AND PERUSED THE RELEVANT MATERIAL ON RECORD. WE 3 ITA NO. 658/DEL/2020 FIND THAT THE ASSESSING OFFICER HAS MADE ADDITION F OR 1/3 RD PART OF THE SALE AGREEMENT DATED 22.10.2010 OF AGRICULTURE LAND. IN THE ASSESSMENT ORDER, THE ASSESSING OFFICER HIMSELF HAS MENTIONED THAT ADDITION WAS MADE IN ABSENCE OF ANY DETAILS. T HE LD. CIT(A) COMPLETED THE APPEAL PROCEEDING WITHIN A PERIOD OF THREE MONTHS. THE LD. CIT(A) HAS MENTIONED ADJOURNMENT APPLICATIO N FILED BY THE ASSESSEE FOR HEARING DATED 12/09/2019, 03/10/20 19 AND 22/10/2019. THE LEARNED CIT(A) HAS MENTIONED THAT T HE ASSESSEE DID NOT ATTEND ON 13/11/2019 AND IN VIEW O F NON- COMPLIANCE, SHE PASSED EX PARTE ORDER CONFIRMING THE ADDITION MADE BY THE ASSESSING OFFICER. 4.1 BEFORE US IN THE GROUNDS RAISED, THE ASSESSEE SUBM ITTED THAT APPELLATE ORDER HAS BEEN PASSED WITHOUT PROVIDING A NY PROPER OPPORTUNITY OF HEARING TO HIM. THE ASSESSEE HAS EVE N CONTESTED THAT NO NOTICE WERE RECEIVED BY HIM. WITHOUT GOING INTO THE ISSUE WHETHER NOTICES WERE SERVED UPON HIM OR NOT, IN OUR OPINION, THE ADDITION HAS BEEN SUSTAINED WITHOUT PROPER VERIFICA TION OF DETAILS OF TRANSACTION OF SALE OF LAND AND SOURCE OF INVEST MENT THEREOF. THE APPEAL PROCEEDINGS HAVE BEEN CLOSED WITHIN A PE RIOD OF THREE MONTHS AFTER ISSUE OF THE FIRST NOTICE. THE ASSESSE E HAS NOT BEEN REPRESENTED BEFORE US ALSO BUT LOOKING TO THE PERIO D OF THE PANDEMIC AND FACTS AND CIRCUMSTANCES OF THE CASE, W E ARE OF THE OPINION THAT, IN THE INTEREST OF SUBSTANTIAL JUSTIC E, THE ASSESSEE MUST BE PROVIDED AN OPPORTUNITY TO EXPLAIN THE SAID TRANSACTION OF THE SALE OF LAND DATED 22/10/2010 AND HOW THE SA ID INCOME HAS BEEN TAKEN INTO ACCOUNT FOR FILING RETURN OF IN COME. ACCORDINGLY, WE SET ASIDE THE ORDER OF THE LD. CIT( A) AND RESTORE THE APPEAL BACK TO HER FOR DECIDING AFRESH, AFTER P ROVIDING 4 ITA NO. 658/DEL/2020 ADEQUATE OPPORTUNITY OF BEING HEARD TO BOTH THE ASS ESSEE AND THE DEPARTMENT. THE ASSESSEE IS ALSO DIRECTED TO MAKE C OMPLIANCE BEFORE THE LD. CIT(A) AND FILE ALL THE NECESSARY DO CUMENTS AND EVIDENCE IN SUPPORT OF HIS CLAIM. THE GROUNDS OF TH E APPEAL ARE ACCORDINGLY ALLOWED FOR STATISTICAL PURPOSES. 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOW ED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT. SD/- SD/- (KUL BHARAT) (O.P. KANT) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 28 TH JUNE, 2021. RK/- (DTDS) COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR ASST. REGISTRAR, ITAT, NEW DELHI