Sh. Jasbir Singh Gill, Ludhiana V. The ITO, Ward-1, Jagraon

ITA 697/CHANDI/2022

AI Insights

The case involves an appeal by Jasbir Singh Gill against an ex-parte order passed by the CIT(A), NFAC, Delhi, which confirmed an addition of Rs. 22,67,307 as unexplained deposits in the assessee's bank account for the Assessment Year 2012-13. The assessee contended that he was not notified of the hearing, and his counsel failed to inform him, leading to non-representation. The Tribunal noted that the assessee had attended the proceedings before the AO and had submitted explanations and documentation regarding the source of the deposits, which were not adequately addressed in the assessment order. The Tribunal also observed that the CIT(A) dismissed the appeal due to non-prosecution without considering the assessee's submissions.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 127611 (ITAT-CHANDIGARH)
• Duration Of Justice: 4 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-04-2023
• Appeal Filed By: Assessee
• Order Result: PartlyAllowed
• Bench Allotted: A
• Next Hearing Date: 09-04-2023
• Assessment Year: 2012-2013
• Appeal Filed On: 17-11-2022
• Laws Referred To: The Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Bonafide belief; Reasonable cause; Set aside
• Section: 147; 148; 144; 250

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. 697/Chd/ 2022 Assessment Year : 2012-13 Jasbir Singh Gill H.No. 3897, Mohalla Kutcha Killa, Near Kutra Gate Raikot, Ditt: Ludhiana-141109, Punjab The ITO Ward-1, Jagraon PAN NO: DBPPS5360J Appellant Respondent ! " Assessee by : Shri Sudhir Sehgal, Advocate # ! " Revenue by : Smt. Amanpreet Kaur, Sr. DR $ % ! & Date of Hearing : 10/04/2023 '()* ! & Date of Pronouncement : 11/04/2023 आदेश/Order PER VIKRAM SINGH YADAV, A.M. : This is an appeal filed by the Assessee against the exparte order passed by the Ld. CIT(A), NFAC, Delhi dt. 26/09/2022 pertaining to A.Y. 2012-13 wherein the assessee has taken the following grounds of appeal: 1. That the Ld. CIT(A) has erred in passing the order u/s 250 of The Income Tax Act, 1961 and dismissing the appeal of the appellant and confirming the order of Assessing Officer in making the addition of Rs. 22,67,307/-. 2. That no notice for hearing was received by the assessee, who is a senior citizen agriculturist and was dependent upon his counsel for his Income Tax matters, who did not intimate him about the hearing and, as such, the appellant was prevented by sufficient and reasonable cause for filing any submissions before the Ld. CIT (A). 3. Notwithstanding the above grounds of appeal, the addition made by the Ld. Assessing Officer and confirmed by the Ld. CIT (A) to the tune of Rs. 22,67,307/- are against the law and facts and circumstances of the case. 4. That the proceedings u/s 147 of the Act initiated by the Ld. Assessing Officer and notice u/s 148 of the Act issued by the Ld. Assessing Officer and the finding of the Ld. Assessing Officer in holding that the he has reasons to believe that that income of the 2 appellant has escaped assessment are bad in law and accordingly whole assessment proceedings are liable to be quashed. 5. That the appellant craves leave to add or amend the grounds of appeal before the appeal is finally heard or disposed off. 2. During the course of hearing, the Ld. AR submitted that the assessee does not wish to press Ground No. 4 of his appeal, hence, the same is dismissed as not pressed. 2.1 Further the Ld. AR drawn our attention to the order of the AO which has been passed under section 144 r.w.s 147 dt. 16/12/2019 wherein the AO has made an addition of Rs. 22,67,307/- as unexplained deposits in the bank account maintained by the assessee. 2.2 Further, drawing reference to the affidavit filed by the assessee, it was submitted that the assessee had personally attended the proceeding before the AO on 02/09/2019 wherein it was submitted before the AO that the assessee had sold certain piece of land in the year 2007 and the amount so deposited in the bank account pertaining to sale of the agricultural land. It was submitted that the AO had then asked to file the evidence of sale of the agricultural land which was filed and the assessee was under the bonafide belief that nothing further is required from his side. In this regard, it was further stated that the assessee had never made any time deposit of Rs. 34,67,307/- in any bank account during the relevant year as alleged by the AO. It was further stated that the cash deposit of Rs. 8,00,000/-stood explained against the validity of funds at Rs. 20,00,000/- which was duly accepted by the AO. However on receipt of assessment order, it was noted that the AO has made an addition of Rs. 22,67,307/- towards unexplained deposits in the bank account. 2.3 It was further submitted that the assessee had engaged a Counsel to file the appeal before the Ld. CIT(A) and he was under the bonafide belief that the matter has been taken care of and however the Ld. CIT(A), NFAC Delhi passed the impugned order on account of non prosecution. It was submitted that the assessee had duly engaged the Counsel to attend to its appellate proceeding which shows that there was no intention on his part not to cooperate and attend to the appellate proceedings. In light of the same, it was submitted by the Ld. AR that in the interest of 3 substantial justice, the assessee may be allowed an opportunity to represent its case before the tax authorities and matter may accordingly be set aside. 3. The Ld. DR is heard who has submitted that the Ld. CIT(A), NFAC Delhi has issued number of notices which were sent through the IT Portal however the same remained uncomplied with and therefore in absence of any explanation submitted by the AO, the Ld. CIT(A) has rightly confirmed the addition made by the AO. The Ld. DR accordingly supported the orders of the lower authorities. 4. We have heard the rival contentions and perused the material available on the record. We find that the assessment order has been passed under section 144 r.w.s 147 of the Act wherein it has been held by the AO that the assessee has failed to file any explanation regarding source of deposits in his bank account. However, during the course of hearing, the Ld. AR has drawn our attention to the affidavit filed by the assessee wherein the assessee has claimed that he has attended to the proceedings before the AO on 02/09/2019 and in the affidavit so filed, it has been claimed by the assessee that he has filed necessary explanation and the documentation in support of source of the deposit so made in the bank account maintained by the assessee being the sale proceeds from sale of agriculture land. The appearance of the assessee before the AO on 2/09/2019 and contention so advanced is also verifiable from the copy of the order sheet placed on record and where on verification, documentation so filed in support thereof, are found part of the record, the same needs to be appropriately addressed which has apparently not happened in the instant case and thus effectively depriving the assessee of an effective hearing and an opportunity of being heard before deciding the matter. 5. It is further noted that the Ld. CIT(A), NFAC Delhi has issued notices through e- mail communication on the ITBP Portal and at the same time, same have remained uncomplied with. In this regard, the assessee has claimed that he has appointed a Consultant to attend to the appellate proceedings and he was under the bonafide belief that the notices have been duly responded too. However on perusal of the impugned order, he found that the notices sent through the e-mail communication have remained uncomplied with and the appeal filed by the assessee has been 4 dismissed on account of non-prosecution. It is therefore a case where the assessee has not be heard both at the assessment and appellate stage though the assessee has attended to the proceedings before the AO and has appointed a Consultant to attend to the appellate proceedings before the ld CIT(A). 6. In light of aforesaid and in the entirety of facts and circumstances of the case, in the interest of substantial justice, we are of the considered view that the assessee deserves one more opportunity to be heard on merits and in the fitness of things, it would be appropriate that the matter is set aside to the file of the AO to decide the same afresh as per law after providing reasonable opportunity to the assessee. 7. Needless to say, the assessee shall attend to the proceedings and provide necessary information / documentation as called for and would be at liberty to raise necessary contentions in support of his explanation explaining the source of the deposits in the bank account maintained by him. 8. In the result, appeal of the assessee is partly allowed for statistical purposes. Order pronounced in the open Court on 11.04.2023 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: 11 .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