Prabhakar Jha, Delhi V. ITO Ward 37(3), New Delhi

ITA 860/DEL/2019

• Counselvise Citation: [2022] 104 COUNSELVISE.COM (IT) 1241 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 8 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-10-2022
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: F
• Next Hearing Date: 03-08-2022
• Assessment Year: 2014-2015
• Appeal Filed On: 04-02-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘F’, NEW DELHI Before Dr. B. R. R. Kumar, Accountant Member Sh. Yogesh Kumar US, Judicial Member ITA No. 860/Del/2019 : Asstt. Year: 2014-15 Prabhakar Jha, H.No. 89, Bhara Enclave, Pashim Vihar, New Delhi-110063 Vs Income Tax Officer, Ward-37(3), New Delhi-110001 (APPELLANT) (RESPONDENT) PAN No. BMUPP7117C Assessee by : Sh. Lalit Mohan, Adv. Revenue by : Sh. Atiq Ahmed, Sr. DR Date of Hearing: 04.08.2022 Date of Pronouncement: 11.10.2022 ORDER Per Dr. B. R. R. Kumar, Accountant Member: The present appeal has been filed by the assessee against the order of ld. CIT(A)-13, New Delhi dated 27.12.2018. 2. Following grounds have been raised by the assessee: “1. The ld. CIT(A) is not justified in upholding the addition of Rs.94,59,717/- u/s 41 of the Act made by the ld. A.O. without appreciating the fact that the assessee has provided the confirmed copy of account of Sundry Creditors at the time of assessment. There is no remission or cessation of the liability hence the charge u/s 41 is not applicable in this case. 2. The ld. CIT(A) is not justified in upholding the adhoc disallowance of expenses of Rs.58,53,345/- done by the ld. A.O. without appreciating that the adhoc disallowance of expenses is not permissible in the law. The expenses were incurred for the purpose of business only. 3. The ld. CIT(A) is not justified in upholding the addition of Rs.1,94,54,365/- u/s 68 of the Act made ITA No.860/Del/2019 Prabhakar Jha 2 by the ld. A.O. by treating the unsecured loans taken by the assessee as the income of the assessee.” 3. The assessee field return of income on 17.03.2015 declaring income of Rs.6,64,590/-. The assessment has been completed by making an addition of Rs.1,53,13,062/- on account of income from business & profession and Rs.1,94,53,365/- under the head income from other sources. 4. The proceedings before the ld. CIT(A) were as under: Date of issue Date of Hearing Source Remarks 30.03.2018 17.04.2018 Through ITBA & Email Notice received back 22.10.2018 16.11.2018 By Post & Email Not returned & None attended 04.12.2018 14.12.2018 By Post & Email None attended 14.12.2018 20.12.2018 By Post & Email None attended 5. Before the ld. CIT(A), no one attended on the date of hearing nor any adjournment letter was filed. Aggrieved with the ex-pare order of the ld. CIT(A) confirming the order of the Assessing Officer, the assessee filed appeal before the Tribunal on 05.02.2019 over the sustenance of order of the AO by the ld. CIT(A) on “ex-parte” basis. We observe that the assessee has not appeared even before the Assessing Officer. The assessee has failed to appear on 4 occasions before the ld. CIT(A). We strongly believe that every assessee has a right to appeal before the authorities against any addition or disallowance made to the returned income, at the same time, it is least expected that the assessee would comply to the notices issued by the authorities in an appropriate way. While the grievance of the assessee is not being preempted by us, at the same time, we feel that the conduct of the assessee is clogging the already burdened justice delivery system. Hence, we hereby ITA No.860/Del/2019 Prabhakar Jha 3 direct the assessee to pay an amount of Rs.10,000/- to the “Prime Minister’s National Relief Fund” and approach the ld. CIT(A) for a fresh hearing denovo which shall be considered. Till sustain the demand against the assessee continues to exist. The ld. CIT(A) is hereby directed to afford an opportunity of being heard to the assessee before conclusion of the proceedings. 6. In the result, the appeal of the assessee is allowed for statistical purpose. Order Pronounced in the Open Court on 11/10/2022. Sd/- Sd/- (Yogesh Kumar US) (Dr. B. R. R. Kumar) Judicial Member Accountant Member Dated: 11/10/2022 *Subodh Kumar, Sr. PS* Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR