Anand Pershad Jaiswal, New Delhi V. DCIT, Central Circle- 4, New Delhi

ITA 7154/DEL/2019

AI Insights

The case involves an appeal by Anand Pershad Jaiswal against the order of the Commissioner of Income Tax (Appeals)-XXIII, New Delhi, which arose from an assessment order passed by the Assessing Officer under Section 147 read with Section 143(3) of the Income Tax Act, 1961 for the Assessment Year 2011-12. The primary contention was regarding the legality and jurisdiction of the reassessment proceedings initiated under Section 147, which the assessee argued were beyond jurisdiction and void ab initio. The Income Tax Appellate Tribunal (ITAT) considered the submissions and the materials placed before it, including fresh evidence under Rule 29 of the Income Tax (Appellate Tribunal) Rules, 1963, and decided to remit the matter back to the Assessing Officer for a fresh assessment.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 121735 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 11 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-08-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: G
• Next Hearing Date: 15-08-2023
• Assessment Year: 2011-2012
• Appeal Filed On: 28-08-2019
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 147; 63; 15

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “H” DELHI BEFORE SHRI SAKTIJIT DEY, VICE PRESIDENT & SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER I.T.A. No.7154/DEL/2019 Assessment Year 2011-12 Anand Pershad Jaiswal 54, Ring Road, Lajpat Nagar-3 New Delhi v. DCIT Central Circle-4 New Delhi. TAN/PAN: ADRPJ2549M (Appellant) (Respondent) Assessee by: Shri Deep Chand Garg, CA Department by: Shri Amit Katoch, Sr.DR Date of hearing: 16 08 2023 Date of pronouncement: 16 08 2023 O R D E R PER PRADIP KUMAR KEDIA, A.M.: T he capti oned app eal has b ee n f il ed b y the A sse ssee a gainst the order of the Co mmiss i oner of Income Ta x (A ppeals )-XX I II, N ew D elhi [ ‘C IT (A )’ i n s hor t] da te d 28. 06. 2019 a rising fr om the assess me nt orde r dat ed 21. 12. 20 18 pass ed by th e Assessing O fficer (A O ) under Sect i on 147 r. w . Section 14 3(3) o f the Inc ome Tax A ct, 1961 (t he A ct) conce rni ng A Y 2011-12. 2. T he grou nds of appea l ra ised b y the assesse e read as unde r: “ 1 . T h a t t h e C o m m i s s i o n e r o f I n c o m e T a x ( A p p e a l s ) ( ' C I T ( A ) ’ ] e r r e d o n f a c t s a n d i n la w i n n o t h o l d i n g t h a t t h e a s s e s s me n t o r d e r p a s s e d b y t h e a s s e s s i n g o f f i c e r u n d e r s e c t i o n 1 4 7 / 1 4 3 ( 3 ) o f th e I n c o m e T a x A c t , 1 9 6 1 ( ' t h e A c t ' ) i s b e y o n d j u r i s d i c t i o n , i l l e g a l , ba d i n l a w a n d v o i d - a b - i n i t i o . 2 . T h a t t h e C I T ( A ) e r r e d o n f a c t s a n d i n l a w i n u p ho l d i n g v a l i d i t y o f r e - a s s e s s m e n t p ro c e e d i n g s w i t h o u t a p p r e c i a t i n g t h a t t h e s a m e w a s i n i t i a t e d w i t h o u t t h e r e b e i n g ' r e a s o n t o b e l i e v e t ha t i n c o m e o f t h e I.T.A. No.7154/Del/2019 2 a p p e l l a n t h a d e s c a p e d a s s e s s m e n t . 3 . T h a t t h e C I T ( A ) e r r e d o n f a c t s a n d i n l a w i n n o t a p p r e c i a t i n g t h a t r e a s s e s s m e n t p r o c e e d in g s u n d e r s e c t i o n 1 4 7 o f t h e Ac t h a v i n g b e e n i n i t i a t e d w i t h o u t h a v in g a n y n e w m a t e r i a l a n d i n f o rm a t i o n w h a t s o e v e r w e r e a v a i l a b l e w i t h A O , o n t h e b a s i s o f w h i c h , h e ha s r e a s o n s t o b e l i e v e t h a t i n c o m e o f a p p e l l a n t h a d e s c a p e d a s s e s sm e n t . 4 . T h a t t h e C I T ( A ) e r r e d o n f a c t s a n d i n l a w i n n o t a p p r e c i a t i n g t h a t t h e r e a s s e s s m e n t p r o c e e d i n g s h a v i n g b e e n i n i t i a t e d o n t h e d i r e c t i o n o f s u p e r i o r a u t h o r i t y a n d w i t h o u t a n y r e a s o n t o b e l i e ve t h a t i n c o m e o f a p p e l l a n t h a d e s c a p e d a s s e s s m e n t . 5 . T h a t t h e C I T ( A ) e r r e d o n f a c t s a n d i n l a w i n n o t a p p r e c i a t i n g t h a t t h e r e a s s e s s m e n t p r o c e e d i n g s h a v i n g b e e n i n i t i a t e d b y c h a n g i n g o f o p i n i o n s u b s e q u e n t t o q u a sh i n g o f a s s e s s m e n t m a d e u/ s 1 5 3 A b y L d . C I T ( A ) 2 3 . 6 . T h a t t h e C I T ( A ) e r r e d o n f a c t s a n d i n l a w i n n ot a p p r e c i a t i n g t h e f a c t s t h a t t h e A O h a s a l s o f i l e d a n a p p e a l o n t h e sa m e m a t t e r w i t h H o n ' b l e I T A T a g a i n s t t h e o r d e r p a s s e d u / s 1 5 3 A , t h er e b y h e w e r e p e ru s i n g t w o p r o c e e d i n g s a t t h e s a m e t i m e o n t h e a pp e l l a n t , w h i c h i s n o t p e r m i s s i b l e i n l a w . 7 . T h a t t h e C I T ( A ) e r r e d o n f a c t s a n d i n l a w i n d en y i n g a p ro p e r o p p o r t u n i t y t o t h e a p p e l l a n t o f b e i n g h e a rd b e f o r e p a s s i n g h i s o r d e r . I n f a c t , A R o f a p p e l l a n t h a s f i l e d a n a p p l i c a t i o n of a d j o u rn m e n t o n 2 0 t h J u n e 2 0 1 9 , d u e t o n o n - a v a i l a b i l i t y o f r e q u i r e d d o c u m e n t s b e i n g r e q u e s t e d f r o m a s s e s se e , a s t h e a p p e l l a n t i s a N R I , b u t t h e o rd e r h a s b e e n p a s s e d w i t h o u t g i v i n g a n y f u r t h e r o p p o r t u n i t y o f b e i n g h e a rd . ” 3. W h e n t h e ma t te r w a s c al l e d for h e ar i n g, t h e l d . c o u n se l f or t h e a ss es se e s ub m i t t e d a t t h e o u t s et t h a t t he c a se w a s r eo p e ne d u n d e r S ec t i on 1 4 7 o f t h e A c t t o as se ss an a mo u n t o f R s. 1 2, 5 0 , 000 /- a s de e me d d i v i de nd u nd e r S e c t i o n 2 ( 2 2) ( e ) o f t he A c t. I n t hi s r eg ar d, t he l d. c o un sel su b m i t te d t ha t a mo u nt so r e c e i v e d by t he ass e s se e i s no t i n t he na t ur e o f a n y gr a t u i t ou s l o a n b u t h a s b ee n re ce i ve d a s a pa r t c o ns i d e r a t i on fo r sa l e o f pr op e r t y at L a j pa t Na g ar t o M / s. Bl os so m I n v e st m e n t P vt . L t d . w he re t he a ss e s see i s a l s o a sha re ho l d e r. T h e l d . c ou n s el po in te d o ut t h a t ce r t ai n fr es h e v i d e n ce s ha v e be e n p l a c e d on re c o r d un d e r R u l e 2 9 o f t he Inco m e T a x (A p pe ll a t e T r i b un a l ) R u l e s, 19 6 3 t o su p p or t i s c o n te n t i o n on m er it s. Th e l d . c o un sel n ex t s ub m i ts th at t h e a s su mp t i on o f j ur i s di c t io n un d e r S e c ti on 14 7 i s a l so u n de r ch al l e n ge . T h e l d. c ou nse l t h u s pl e ad ed t ha t t h e ma t te r ma y b e re m it t e d b a c k t o t h e fi l e o f t he I.T.A. No.7154/Del/2019 3 A sse s si n g O ff i c e r f or f re sh a dj u d i c a t i on i n a c co rd an ce w i th la w a ft er ma ki n g fa c tu a l ve r i fi ca t i o n s a s ma y b e r e q ui re d . 4. T he l d. D R fo r t he Re v e n ue s up po r te d th e or d e r of t he l ow e r a ut ho r i t i e s bu t h ow e ve r e x p re ss e d n o r es e r v a t i o n s fo r t h e p r o p o se d re m it t o t h e fi l e o f th e A ss e s si n g O f fi c er fo r r e - ad j u d i c a t i o n o f t he w hol e i ss ue . 5. O n a p p r a i s al o f t h e a ss e s s m en t o r d e r a n d t h e f i rst a p p el l a t e or d e r a n d a l so in t he l i g h t o f t he m a t e r i a l p la c e d b e f o r e us, w e fe e l t ha t i t w il l b e i n t h e fi tn es s o f t hi n g s t o r e s to re t he i s su e on me r it s a nd ju r i s di c t i o n t o t h e fi l e o f t he A sse s si ng O ff ice r for f re sh a dj ud i c a t i o n i n a c c or d a n c e w i t h l a w a ft e r gi vi ng p ro pe r op por t u ni t y t o t he a s se ss ee . W e th us d o n o t e x p r e ss a n y o p i n i on o n me r i t s a n d re s t o r e t h e ma t t er b a c k t o t he fi l e o f t h e A sses si ng O ff ic e r . 6. I n t he re su lt , t h e a pp e a l o f t h e a sse ss e e i s a l lo w e d fo r st a t i st ic a l pu r p os e s . Order was pronounced in the open Court on 16/08/2023. Sd/- Sd/- [SAKTIJIT DEY] [PRADIP KUMAR KEDIA] VICE PRESIDENT ACCOUNTANT MEMBER DATED: /08/2023 Prabhat