Smt. Kusum Chhajed, Ratlam V. THE ITO Ward-1, Ratlam

ITA 70/IND/2017

• Counselvise Citation: [2017] 130 COUNSELVISE.COM (IT) 5678 (ITAT-INDORE)
• Duration Of Justice: 1 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-03-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2007-2008
• Appeal Filed On: 09-02-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MOHD JAVED
• Keywords: Opportunity of being heard; Principle of natural justice
• Section: 142(1); 148; 144

Judgement Text

SMT. KUSUM CHHAJED /ITA NO. 70/IND/2017 PAGE 1 OF 4 , , IN THE INCOME TAX APPELLATE TRIBUNAL, INDORE BENCH, INDORE !' # . . , % & BEFORE SHRI CHANDRA MOHAN GARG, JUDICIAL MEMBER AND SHRI O.P. MEENA, ACCOUNTANT MEMBER . . ' /. I.T.A. NO.70/IND/2017 () / ASSESSMENT YEAR:2007-08 SMT. KUSUM CHHAJED DHANMANDI RATLAM VS. INCOME TAX OFFICER-I RATLAM / // / APPELLANT / // / RESPONDENT . . ./ PAN: AMKPC 6768K / // / APPELLANT BY NONE / // / RESPONDENT BY SHRI MOHD. JAVED / // / DATE OF HEARING 21.03.2017 / // / DATE OF PRONOUNCEMENT 27.03.2017 / // / O R D E R PER BENCH THIS APPEAL IS FILED BY THE ASSESSEE AGAINST THE OR DER OF LD. COMMISSIONER OF INCOME TAX (APPEALS), UJJAIN [HEREI NAFTER REFERRED TO AS THE CIT(A)] DATED 24.11.2016. THIS APPEAL PER TAINS TO ASSESSMENT YEAR 2007-08 AS AGAINST APPEAL DECIDED I N RESPECT OF ASSESSMENT ORDER DATED 12.5.2011 PASSED U/S 144/14 7/147 OF SMT. KUSUM CHHAJED /ITA NO. 70/IND/2017 PAGE 2 OF 4 INCOME TAX ACT, 1961 (HEREIN AFTER REFERRED TO AS ' THE ACT) BY THE ITO WARD 3(1) INDORE [HEREINAFTER REFERRED TO AS TH E AO]. 1. THE SUM AND SUBSTANCE OF THE GROUNDS OF APPEAL IS T HAT THE LEARNED CIT(A) WAS NOT JUSTIFIED IN CONFIRMING THE INCOME ASSESSED BY THE ASSESSING OFFICER AT RS.2,31,540/- WITHOUT A FFORDING THE ASSESSEE REASONABLE AND SUFFICIENT OPPORTUNITY OF B EING HEARD. 1.1 SUCCINCTLY, FACTS AS CULLED OUT FROM THE ORDERS OF LOWER AUTHORITIES ARE THAT THE ASSESSEE DID NOT FILE ANY RETURN OF INCOME. THE ASSESSING OFFICER, THEREFORE, AFTER RECORDING R EASONS, ISSUED NOTICE U/S 148 OF THE ACT IN RESPONSE TO WHICH THE ASSESSEE FILED THE RETURN OF INCOME. SUBSEQUENTLY, NOTICES U/S 143(2) AND 142(1) OF THE ACT HAVE BEEN ISSUED BY THE ASSESSING OFFICER W HICH WERE COMPLIED WITH BY THE ASSESSEE. ON VERIFICATION OF RECORD FROM THE ACCOUNTS OF M/S TODARMAL & SONS AND BANK PASSBOOK O F THE ASSESSEE, TOTAL CREDIT ENTRIES AMOUNTING TO RS. 2,3 1,539/- WERE FOUND. THE ASSESSING OFFICER REQUIRED THE ASSESSEE TO EXPLAIN THE SAME BUT THE ASSESSEE FAILED TO DISCHARGE THE BURDE N OF PROOF BY NOT ESTABLISHING THE GENUINENESS OF THE CREDIT ENTRIES. THE ASSESSING OFFICER, THEREFORE, ASSESSED THE TOTAL INCOME OF TH E ASSESSEE AT RS.2,31,539/-. SMT. KUSUM CHHAJED /ITA NO. 70/IND/2017 PAGE 3 OF 4 1.2 ON APPEAL, THE LEARNED CIT(A) CONFIRMED THE SAME. 1.3 NOW THE ASSESSEE IS IN APPEAL BEFORE THE TR IBUNAL. BEFORE US, THE LEARNED COUNSEL FOR THE ASSESSEE FAIRLY SUBMITT ED THAT THE ASSESSEE IS READY AND WILLING TO PUT-FORTH ITS CLAI M BEFORE THE ASSESSING OFFICER IF THE MATTER IS SET ASIDE TO HIS FILE. 1.4 TO THE ABOVE PROPOSITION, THE LEARNED DR HAS NO OBJECTION. 1.5 WE HAVE CONSIDERED THE SUBMISSIONS OF BOTH T HE SIDES. AFTER CAREFUL CONSIDERATION OF THE SUBMISSIONS OF THE PAR TIES IN VIEW OF THE FACTS OF THE CASE, WE FIND THAT IN THIS CASE THE AS SESSING OFFICER HAS MADE THE ASSESSMENT U/S 144 OF THE IT ACT. IT IS A WELL SETTLED PRINCIPLE OF NATURAL JUSTICE THAT NO-BODY SHOULD BE CONDEMNED UNHEARD. PRINCIPLE OF NATURAL REQUIRES THAT SUFFICI ENT OPPORTUNITY OF BEING HEARD SHOULD BE PROVIDED TO THE ASSESSEE BEFO RE DECIDING THE ISSUE AGAINST HIM. WE ARE OF THE VIEW THAT SINCE TH E ASSESSING OFFICER AND THE LEARNED CIT(A) HAVE DECIDED THE MAT TER WITHOUT HEARING THE ASSESSEES IN VIOLATION OF THE PRINCIPLE S OF NATURAL JUSTICE AND FAIR PLAY, THIS APPEAL NEEDS TO BE RESTORED TO THE FILE OF THE ASSESSING OFFICER FOR DECIDING THE SAME AFTER PROVI DING DUE OPPORTUNITY OF BEING HEARD TO THE ASSESSEES. WE, TH EREFORE, FOLLOWING THE PRINCIPLE OF NATURAL JUSTICE, RESTORE THIS APPE AL TO THE FILE OF THE SMT. KUSUM CHHAJED /ITA NO. 70/IND/2017 PAGE 4 OF 4 ASSESSING OFFICER WITH THE DIRECTION TO FRAME FRESH ASSESSMENT AFTER PROVIDING THE ASSESSEES DUE OPPORTUNITY OF BEING HE ARD. NEEDLESS TO MENTION THAT THE ASSESSEE IS AT LIBERTY TO FILE EVI DENCE, IF ANY, IN SUPPORT OF ITS CLAIM BEFORE THE ASSESSING OFFICER. 2. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOWE D FOR STATISTICAL PURPOSES. 3. ORDER PRONOUNCED IN THE OPEN COURT ON 27 TH MARCH, 2017. SD/ - SD/ - ( ) (CHANDRA MOHAN GARG) JUDICIAL MEMBER ( . . ) (O.P.MEENA) ACCOUNTANT MEMBER MARCH 27 , 2017 DN/-