Jinender Kumar Jain, New Delhi V. ITO Ward-34(3), New Delhi

ITA 816/DEL/2019

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 9239 (ITAT-DELHI)
• Duration Of Justice: 5 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-07-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2015-2016
• Appeal Filed On: 04-02-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: NAINA SOIN KAPIL
• Assessee Lawyers: MANOJ KUMAR PATWARI
• Keywords: Opportunity of being heard

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH C, NEW DELHI BEFORE SH. R. K. PANDA, ACCOUNTANT MEMBER AND SH. SUDHANSHU SRIVASTAVA, JUDICIAL MEMBER ITA NO.816/DEL/2019 ASSESSMENT YEAR: 2015-16 POONAM JAIN (LEGAL HEIR) W/O LATE SH. JITENDRA KUMAR JAIN, C-59/3, WAZIRPUR INDUSTRIAL AREA, NEW DELHI-110052 PAN NO.AAJPJ0389A VS INCOME TAX OFFICER WARD- 34 (3) NEW DELHI (APPELLANT) (RESPONDENT) APPELLANT BY SH. MANOJ KUMAR PATWARI, CA RESPONDENT BY SMT. NAINA SOIN KAPIL, SR. DR DATE OF HEARING: 04/07/2019 DATE OF PRONOUNCEMENT: 08/07/2019 ORDER PER R.K. PANDA, AM: THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAIN ST THE ORDER DATED 26.11.2018 OF THE CIT(A)-12, NEW DELHI RELATING TO A. Y. 2015-16. 2. ALTHOUGH A NUMBER OF GROUNDS HAVE BEEN RAISED BY THE ASSESSEE, HOWEVER, THEY ALL RELATE TO THE EXPARTE O RDER PASSED BY THE CIT(A) IN CONFIRMING THE ADDITIONS MADE BY THE ASSESSING PAGE | 2 OFFICER. 3. FACTS OF THE CASE, IN BRIEF, ARE THAT THE ASSESS EE IS AN INDIVIDUAL AND IS ENGAGED IN THE BUSINESS OF MANUFA CTURING AND TRADING OF S. S. UTENSILS AND S. S. PATT AND SHOWN INCOME FROM THE SAME. HE FILED HIS RETURN OF INCOME ON 27.08.2 015 DECLARING TAXABLE INCOME OF RS.4,86,420/-. SINCE T HE ASSESSEE COULD NOT SUBSTANTIATE WITH EVIDENCE TO THE SATISFA CTION OF THE ASSESSING OFFICER REGARDING THE VARIOUS UNSECURED L OANS RECEIVED DURING THE YEAR AMOUNTING TO RS.2,62,70,00 0/-, THE ASSESSING OFFICER ADDED TO THE SAME TO THE TOTAL IN COME OF THE ASSESSEE AND DETERMINED THE TAXABLE INCOME AT RS.2,62,70,000/-. SINCE NONE APPEARED ON BEHALF OF THE ASSESSEE DESPITE REPEATED OPPORTUNITIES GRANTED, TH E LD. CIT(A) IN THE EXPARTE ORDER PASSED BY HIM, CONFIRMED THE A DDITION MADE BY THE ASSESSING OFFICER. 4. AGGRIEVED WITH SUCH ORDER OF THE CIT(A), THE ASS ESSEE IS IN APPEAL BEFORE THE TRIBUNAL. 5. THE LD. COUNSEL FOR THE ASSESSEE AT THE OUTSET S UBMITTED THAT VARIOUS DOCUMENTS WERE FILED BEFORE THE ASSESS ING OFFICER WHICH HE HAS NOT CONSIDERED PROPERLY. THE LD. COUN SEL FOR THE ASSESSEE FILED A CHART SHOWING THE VARIOUS DETAILS FILED BEFORE THE ASSESSING OFFICER TO SUBSTANTIATE THE IDENTITY AND CREDITWORTHINESS OF THE LOAN CREDITORS AND THE GENU INENESS OF THE TRANSACTIONS SUCH AS THE COPY OF INCOME TAX RET URN, BANK PAGE | 3 STATEMENT, CONFIRMATION, COMPLIANCE OF NOTICE U/S. 133 (6) ETC. HOWEVER, THE ASSESSING OFFICER IN UTTER DISREGARD T O THE VARIOUS SUBMISSIONS MADE BY THE ASSESSEE HAS MADE THE HUGE ADDITION TO THE TOTAL INCOME OF THE ASSESSEE. HE SUBMITTED THAT THE ASSESSEE WAS NOT KEEPING WELL FOR WHICH HE WAS SEEK ING ADJOURNMENT FROM TIME TO TIME BEFORE THE CIT(A) AND ULTIMATELY HE DIED ON 03.03.2019 ON ACCOUNT OF CANCER. HE SUB MITTED THAT IN THE INTEREST OF JUSTICE THE LEGAL HEIR OF THE AS SESSEE SHOULD BE GIVEN AN OPPORTUNITY TO SUBSTANTIATE HER CASE AND T HE MATTER SHOULD BE RESTORED TO THE FILE OF THE ASSESSING OFF ICER SO THAT ALL DETAILS NECESSARY CAN BE AGAIN FILED BEFORE HIM TO SUBSTANTIATE THE IDENTITY AND CREDIT WORTHINESS OF THE LOAN CRED ITORS AND THE GENUINENESS OF THE TRANSACTIONS. 6. THE LD. DR WHILE SUPPORTING THE ORDER OF THE CIT (A) SUBMITTED THAT SHE HAS NO OBJECTION IF THE MATTER I S RESTORED TO THE FILE OF THE ASSESSING OFFICER. 7. WE HAVE HEARD THE ARGUMENTS MADE BY BOTH THE SID ES AND PERUSED THE ORDERS OF THE AUTHORITIES BELOW. WE FI ND IN THE INSTANT CASE THE ASSESSING OFFICER MADE ADDITION OF RS.2,62,70,000/- U/S. 68 OF THE IT ACT ON THE GROUN D THAT THE ASSESSEE COULD NOT EXPLAIN SATISFACTORILY THE IDENT ITY AND CREDIT WORTHINESS OF THE LOAN CREDITORS AND THE GENUINENES S OF THE TRANSACTIONS. WE FIND THE LD. CIT(A) DISMISSED THE APPEAL FILED BY THE ASSESSEE SINCE NOBODY APPEARED BEFORE HIM. IT IS THE SUBMISSION OF THE LD. COUNSEL FOR THE ASSESSEE THAT VARIOUS PAGE | 4 DETAILS WERE FILED BEFORE THE ASSESSING OFFICER TO SUBSTANTIATE THE IDENTITY AND CREDIT WORTHINESS OF THE LOAN CREDITOR S AND THE GENUINENESS OF THE TRANSACTIONS. IT IS ALSO HIS SU BMISSION THAT SINCE THE ASSESSEE WAS SUFFERING FROM CANCER AND DI ED SUBSEQUENT TO PASSING OF THE ORDER OF THE CIT(A) TH ERE WAS NO PROPER COMPLIANCE BEFORE THE CIT(A) FOR WHICH THE L D. CIT(A) PASSED THE EXPARTE ORDER. IT IS ALSO HIS SUBMISSIO N THAT GIVEN AN OPPORTUNITY THAT THE LEGAL HEIR OF THE ASSESSEE IS IN A POSITION TO SUBSTANTIATE WITH EVIDENCE TO THE SATISFACTION O F THE ASSESSING OFFICER REGARDING THE IDENTITY AND CREDIT WORTHINES S OF THE LOAN CREDITORS AND THE GENUINENESS OF THE TRANSACTION. C ONSIDERING THE TOTALITY OF THE FACTS OF THE CASE AND IN THE IN TEREST OF JUSTICE WE DEEM IT PROPER TO RESTORE THIS ISSUE TO THE FILE OF THE ASSESSING OFFICER WITH A DIRECTION TO GRANT ONE MOR E OPPORTUNITY TO THE ASSESSEE TO EXPLAIN HER CASE. THE ASSESSING OFFICER SHALL DECIDE THE ISSUE AS PER FACT AND LAW AFTER GIVING D UE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. WE HOLD AND DIRECT ACCORDINGLY. THE GROUNDS RAISED BY THE ASSESSEE ARE ACCORDINGLY ALLOWED FOR STATISTICAL PURPOSE. 5. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSE. ORDER PRONOUNCED IN THE OPEN COURT ON 08.07.2019. SD/- SD/- (SUDHANSHU SRIVASTAVA) (R.K PANDA) JUDICIAL MEMBER ACCOUNTANT MEMBER PAGE | 5 *NEHA* DATE:- .07.2019 COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI DATE OF DICTATION 04.07.2019 DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER 08.07.2019 DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR.PS /PS DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE D ICTATING MEMBER FOR PRONOUNCEMENT DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR. PS/ PS DATE ON WHICH THE FINAL ORDER IS UPLOADED ON THE WE BSITE OF ITAT 08.07.2019 DATE ON WHICH THE FILE GOES TO THE BENCH CLERK DATE ON WHICH FILE GOES TO THE HEAD CLERK. THE DATE ON WHICH FILE GOES TO THE ASSISTANT REGIST RAR FOR SIGNATURE ON THE ORDER DATE OF DISPATCH OF THE ORDER