Anil Kumar, Ghaziabad V. ITO, Ward- 1(1), Ghaziabad

ITA 7365/DEL/2018

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 5684 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 2 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-02-2020
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Assessment Year: 2010-2011
• Appeal Filed On: 22-11-2018
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Keywords: Unexplained cash credit; Principle of natural justice
• Section: 80C; 143(3); 147; 68; 148; 139

Judgement Text

1 ITA NO. 7365/DEL/2018 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: F + SMC NEW DELHI BEFORE SHRI R. K. PANDA, ACCOUNTANT MEMBE R AND MS SUCHITRA KAMBLE, JUDIC IAL MEMBER ITA NO. 7365/DEL/2018 ( A .Y 2010-11) ANIL KUMAR C/O. SAURABH GUPTA & ASSOCIATES, C-12/114, FIRST FLOOR, D. B. PLAZA, R. D. C, RAJ NAGAR, GHAZIABAD, UTTAR PRADESH PAN: AODPK9862P (APPELLANT) VS ITO WARD-1(1) GHAZIABAD (RESPONDENT) APPELLANT BY SH. SATYAJEET GOEL, CA RESPONDENT BY SH. PRADEEP SINGH GAUTAM, SR. DR ORDER PER SUCHITRA KAMBLE, JM THIS APPEAL IS FILED BY THE ASSESSEE AGAINST THE OR DER DATED 27/08/2018 PASSED BY CIT(A)-16, NEW DELHI FOR ASSESSMENT YEAR 2015-16. 2. THE GROUNDS OF APPEAL ARE AS UNDER:- 1. THAT HAVING REGARD TO THE FACTS AND CIRCUM STANCES OF THE CASE, LD. CIT(A) HAS ERRED IN LAW AND ON FACTS IN NOT ADMITTI NG THE REVISED GROUNDS OF APPEAL FILED BY THE ASSESSEE WHICH GO TO THE VERY R OOT OF THE MATTER AND ESSENTIAL FOR EFFECTIVE ADJUDICATION OF APPEAL THER EFORE IMPUGNED ORDER HAS BEEN PASSED WITHOUT OBSERVING THE PRINCIPLES OF NAT URAL JUSTICE. 2. THAT HAVING REGARD TO THE FACTS AND CIRCUMST ANCES OF THE CASE, LD. CIT(A) HAS ERRED IN LAW AND ON FACTS IN NOT QUASHIN G THE IMPUGNED DATE OF HEARING 29.01.2020 DATE OF PRONOUNCEMENT 18.02.2020 2 ITA NO. 7365/DEL/2018 REASSESSMENT ORDER PASSED BY LD. AO U/S 147/143(3) AND THAT TOO WITHOUT COMPLYING THE VARIOUS MANDATORY CONDITION OF SECTIO N 147 TO 151 OF INCOME TAX ACT, 1961. 3. THAT IN ANY CASE AND IN ANY VIEW OF THE MATTER , ACTION OF LD. CIT(A) IN NOT QUASHING THE IMPUGNED REASSESSMENT ORDER FRA MED BY LD. AO U/S 143(3)/147, IS BEYOND JURISDICTION, BAD IN LAW AND AGAINST THE FACTS AND CIRCUMSTANCES OF THE CASE. 4. THAT HAVING REGARD TO THE FACTS AND CIRCUMSTAN CES OF THE CASE, LD. CIT(A) HAS ERRED IN LAW AND ON FACTS IN CONFIRMING THE ACTION OF LD. AO IN MAKING AGGREGATE ADDITION OF RS.3,99,000/- ON ACCOU NT OF UNSECURED LOAN RECEIVED FROM VARIOUS PERSONS U/S 68 OF INCOME TAX ACT, 1961. 3. DURING THE RELEVANT YEAR, THE ASSESSEE IS CARRYI NG THE BUSINESS OF PHOTOGRAPHY AND MIXING OF VIDEOS IN THE NAME AND ST YLE OF M/S JSM MULTIMEDIA SYSTEM. THE ASSESSEE FILED RETURN OF IN COME U/S 139 (1) DECLARING IN INCOME OF RS. 1,64,650/- ON 19/10/2010. THE CAS E WAS REOPENED U/S 147 OF THE ACT. IN RESPONSE TO NOTICE U/S 148, THE ASS ESSEE FILED RETURN OF INCOME ON 26/04/2017. THE ASSESSING OFFICER MADE ASSESSM ENT U/S 147 READ WITH SECTION 143(3) OF THE ACT ON 20/12017 AND MADE ADDI TION OF RS. 3,99,000/- ON ACCOUNT OF UNEXPLAINED CASH CREDIT U/S 68 AND RS. 4 9,730/- ON ACCOUNT OF UNEXPLAINED DEDUCTION U/S 80C OF THE ACT. 4. BEING AGGRIEVED BY THE ASSESSMENT ORDER, THE ASS ESSEE FILED THE APPEAL BEFORE THE CIT(A). THE CIT(A) DISMISSED THE APPEAL . 5. THE LD. AR SUBMITTED THAT THE CIT(A) HAS NOT ADJ UDICATED THE GROUND OF JURISDICTION AS RELATES TO OBJECTION TO ASSUMPTION U/S 148 BEING NOT DISPOSED OFF BY THE ASSESSING OFFICER. THEREFORE, THE LD. A R SUBMITTED THAT ON LEGALITY 3 ITA NO. 7365/DEL/2018 AND THE VALIDITY OF SECTION 148, THE MATTER MAY BE REMANDED BACK TO THE FILE OF THE CIT(A) FOR ADJUDICATING THE VALIDITY OF SECTION 148 ITSELF. 6. THE LD. DR RELIED UPON THE ASSESSMENT ODER AND T HE ORDER OF THE CIT(A). 7. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE M ATERIAL AVAILABLE ON RECORD. FROM THE PERUSAL OF THE ORDER OF THE CIT(A ), IT CAN BE SEEN THAT WHETHER REOPENING U/S 148 IS VALID OR NOT HAS NOT BEEN ADJU DICATED UPON BY THE ASSESSING OFFICER AS WELL AS THE CIT(A). THUS, IT WILL BE APPROPRIATE TO REMAND BACK THIS ISSUE TO THE FILE OF THE CIT(A) FOR ADJUD ICATING THE LEGAL POINT. NEEDLESS TO SAY, THE ASSESSEE BE GIVEN OF OPPORTUNI TY FOR HEARING BY FOLLOWING PRINCIPLES OF NATURAL JUSTICE. WE ARE NOT COMMENTI NG ON THE MERIT OF THE CASE WHICH IS OPEN TO THE CIT(A) TO ADJUDICATE THERE UPO N IF THE ASSESSEE FAILS ON THE JURISDICTION ISSUES ITSELF. 8. IN RESULT, THE APPEAL OF THE ASSESSEE IS PARTLY ALLOWED FOR STATISTICAL PURPOSE. ORDER PRONOUNCED IN THE OPEN COURT ON 18TH FEB RUARY, 2020. SD/- SD/- (R. K. PANDA) (SUCHITRA KAMBLE) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 18/02/2020 R. NAHEED COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT 4 ITA NO. 7365/DEL/2018 ASSISTANT REGISTRAR ITAT NEW DELHI DATE OF DICTATION 30.01.2020 DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER 30.01.2020 DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE OTHER MEMBER DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR. PS/PS DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE DICTATING MEMBER FOR PRONOUNCEMENT DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR. PS/PS 1 8 . 0 2 . 2 0 2 0 DATE ON WHICH THE FINAL ORDER IS UPLOADED ON THE WEBSITE OF ITAT 1 8 . 0 2 . 2 0 2 0 DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 1 8 . 0 2 . 2 0 2 0 DATE ON WHICH THE FILE GOES TO THE HEAD CLERK THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT REGISTRAR FOR SIGNATURE ON THE ORDER DATE OF DISPATCH OF THE ORDER