Sh. Kamal Kishore Dhawan, Chandigarh V. ITO, Ward-4(1), Chandigarh

ITA 691/CHANDI/2022

AI Insights

The case involves an appeal by Shri Kamal Kishore Dhawan against the order of the Ld. CIT(A), NFAC, Delhi, which confirmed an addition of Rs. 26,33,893 to the assessee's income for the Assessment Year 2017-18 under section 69A of the Income Tax Act, 1961. The addition was initially made by the Ld. AO due to unexplained sources of a bank deposit, which the assessee contested. The CIT(A) upheld the addition, leading to the current appeal. The Tribunal found that the CIT(A) had passed the order ex-parte without adequate opportunity for the assessee to present his case, despite the assessee's requests for adjournments and additional time to gather necessary documentation.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 127610 (ITAT-CHANDIGARH)
• Duration Of Justice: 5 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-05-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 07-05-2023
• Assessment Year: 2017-2018
• Appeal Filed On: 15-11-2022
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Opportunity of being heard
• Section: 142(1); 143(2)

Judgement Text

आयकर अपील य अ धकरण,च डीगढ़ यायपीठ “ए” , च डीगढ़ IN THE INCOME TAX APPELLATE TRIBUNAL, CHANDIGARH BENCH “A”, 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. 691/Chd/ 2022 Assessment Year : 2017-18 Shri Kamal Kishore Dhawan H.No. 236, Sector 36A Chandigarh-160036 The ITO Ward-4(1) Chandigarh PAN NO: ABFPD1839G Appellant Respondent ! " Assessee by : Shri Parikshit Aggarwal, CA # ! " Revenue by : Smt. Amanpreet Kaur, Sr. DR $ % ! & Date of Hearing : 08/05/2023 '()* ! & Date of Pronouncement : 08/05/2023 आदेश/Order PER AAKASH DEEP JAIN, V.P. : This is an appeal filed by the assessee against the order of the Ld. CIT(A), NFAC, Delhi dt. 15/11/2022 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), Chandigarh-2/10919/2019-20 dated 15.11.2022 has erred in passing that order in contravention of the provisions of S. 250 of the Income Tax Act, 1961. 2. That on the facts, circumstances and legal position of the case, the Worthy CIT(A) has erred in confirming the addition of Rs. 26,33,893/-made by Ld. AO u/s 69A of the Act by erroneously holding that the said deposit in the bank account is from unexplained sources. 3. 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 by noting that the appellant did not file any reply or adjournment in proceedings even when the appellant had e-filed adjournment applications on 2 the portal and the same are visible even as on date and the last notice and adjournment was issued more than 6 month prior to passing of impugned appellate order. 4. That on law, facts and circumstances of the case, the impugned assessment order passed by Ld. AO deserves to be quashed since the same has been passed in extreme haste and without affording reasonable opportunity of being heard to the appellant. 5. That the appellant craves leave for any addition, deletion or amendment in the grounds of appeal on or before the disposal of the same. 2. Briefly the facts of the case are that the assessee e-filed his return of income on 25/07/2017 declaring income of Rs. 44,51,350/-. The case of the assessee was selected for scrutiny through CASS with the reason “ Cash deposit during the demonetization period”. As per return filed for the A.Y. 2017-18, the assessee was having income from Salary / Pension, House Property, Profit and Gains from Business & Profession and income from Other Sources. 2.1 Notice under section 143(2) of the Act, was issued on 22/09/2018 which was served upon the assessee through email on ITBA. Subsequently questionnaire alognwith notice under section 142(1) of the Income Tax Act, 1961was issued on 29/08/2019 which was served upon the assessee electronically on ITBA, however no reply was received in response to the notice. Again several notices under section 142(1) was issued to the assessee requesting the assessee to filed the information to avoid penal action which was also remained uncomplied with. Hence, in the absence of any documentary evidence AO added an amount of Rs. 26,33,893/- to the income declared by the assessee. 3. Against the said order, the assessee moved an 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. 3 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 his case and file necessary submissions / information before the Ld. CIT(A), NFAC, Delhi. 5. Per contra, the Ld. DR has relied on the order of the lower authorities. 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 and had filed adjourned application also which is placed on record. However without any further 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 his 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. 4 7. In the result, appeal of the assessee is allowed for statistical purposes. Order pronounced in the open Court on 08/05/2023. Sd/- Sd/- #व$म &संह यादव आकाश द प जैन ( VIKRAM SINGH YADAV) (AAKASH DEEP JAIN) लेखा सद+य/ ACCOUNTANT MEMBER उपा य / VICE PRESIDENT AG Date: 08/05/2023 ( + ! , - . - 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