Wazir Singh, Sonipat Haryana V. ITO ward-5, Sonipat Haryana

ITA 6731/DEL/2019

AI Insights

The case involves an appeal by Wazir Singh against the order of the Commissioner of Income Tax (Appeals), Rohtak, which confirmed the addition of Rs. 11,58,000 to the assessee's income under section 68 of the Income Tax Act. The appeal was initially dismissed by the CIT(A) due to the non-appearance of the assessee, who had passed away, as noted by the postal authorities. The Income Tax Appellate Tribunal (ITAT) found that the CIT(A) had not decided the issue on merits and that the statutory notices other than section 148 were not served before the completion of the best judgment assessment under sections 144 and 147 of the Act. The ITAT set aside the appeal to the Assessing Officer with directions for a de novo assessment.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 113363 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 4 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-01-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 17-10-2022
• Assessment Year: 2011-2012
• Appeal Filed On: 12-08-2019
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Set aside
• Section: 147; 68; 144

Judgement Text

I.T.A.No.6731/Del/2019 1 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “SMC” NEW DELHI BEFORE SHRI CHALLA NAGENDRA PRASAD, JUDICIAL MEMBER आ.अ.स ं /.I.T.A No.6731/Del/2019 /Assessment Year: 2011-12 Wazir Singh, S/o Late Sh. Harke Ram Dahiya, Ward No. 3, VPO, Pipli, Sonipat, Haryana. ब म Vs. ITO Ward 5, Sonipat, Haryana. PAN No. AAKPD5262F अ Appellant /Respondent िनधा रतीक ओरसे /Assessee by None राज वक ओरसे /Revenue by Shri Om Prakash, Sr. DR स ु नवाईक तारीख/ Date of hearing: 18.10.2022 उ ोषणाक तारीख/Pronouncement on 11.01.2023 आदेश /O R D E R This appeal is filed by the assessee against the order of ld. Commissioner of Income Tax (Appeals), Rohtak dated 17.06.2019 for the assessment year 2011-12. 2. In spite of issue of several notices, none appeared on behalf of the assessee nor any adjournment was sought. The notices sent through speed post on several occasions have returned un-served stating that “the recipient has passed away”. As the assessee is no more as per the postal authorities noting on the returned notices the appeal is disposed off on hearing the Ld. DR. 3. The assessee has raised the following grounds of appeal: - I.T.A.No.6731/Del/2019 2 1. “That the Ld.CIT(A) has erred on facts and in law in confirming the action of the ITO in contending the cash deposited by assessee u/s 68 of the Act, thereby making an addition of Rs.11,58,000/-. 2. That the Ld. CIT has erred on facts in passing the ex party order without appreciating the fact that the appellant is senior citizen and suffering from critical illness. 3. That the Ld. CIT has erred on facts in passing the ex party order without appreciating the fact that the appellant has withdrawn Rs.5,85,000/- during the year and the same were deposited back to the account, Rs.1,10,000/- was the agriculture income earned by the appellant and Rs.5,00,000/- was deposited out of past savings for emergency medical treatment. 4. The appellant craves leave to add to, alter, amend, vary, omit, substitute or delete any of the aforementioned grounds of appeal or add a new ground or grounds of appeal at any time before or at the time of hearing of the appeal.” 4. On perusal of the grounds of appeal of the assessee, it is noticed that assessee has challenged the order of the Ld. CIT(A) in passing the ex parte order. Perusal of the order of the Ld.CIT(A) show that the Ld. CIT(A) dismissed the appeal of the assessee for non appearance. The Ld. CIT(A) has not decided the issue on merits for the reason that the assessee has not given any explanation. It is also noticed that the assessment was computed u/s 144 r.w.s. 147 of the Act as best judgment assessment. It is also not known from the assessment order whether the statutory notices were served on the assessee other than 148 of the Act before completion of best judgment assessment u/s 144 r.w.s. 147 of the Act. In case the assessee is no more alive the Legal Representatives of the assessee have to be brought on record. I.T.A.No.6731/Del/2019 3 5. Therefore, in the interest of justice, I am of the view that this matter should go back to the file of the Assessing Officer for denovo assessment after bringing the Legal Representatives on record. Thus, this appeal is set aside to the Assessing Officer with a direction to make denovo assessment after bringing the Legal Representatives of the assessee on record and after providing adequate opportunity of being heard to the Legal Representatives of assessee. 6. In the result, appeal of the assessee is allowed for statistical purposes. Order pronounced in the open court on 11/01/2023 Sd/- (C.N. PRASAD) JUDICIAL MEMBER Dated: 11.01.2023 *Kavita Arora, Sr. P.S. Copy of order sent to- Assessee/AO/Pr. CIT/ CIT (A)/ ITAT (DR)/Guard file of ITAT. By order Assistant Registrar, ITAT: Delhi Benches-Delhi