Bimla Devi D/o Shri Phool Chand, Haryana V. ITO ward-1, Haryana

ITA 8710/DEL/2019

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 1978 (ITAT-DELHI)
• Duration Of Justice: 6 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-05-2020
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Assessment Year: 2009-2010
• Appeal Filed On: 07-11-2019
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Keywords: Opportunity of being heard; Principle of natural justice; Reasonable cause; Tangible material; Reason to believe
• Section: 147; 148

Judgement Text

1 ITA NO. 8710/DEL/2019 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: I(2) + SM C-1 NEW DELHI BEFORE MS SUCHITRA KAMBLE, JUDICIAL MEM BER, AND SHRI PRASHANT MAHARISHI, ACCOU NTANT MEMBER ITA NO. 8710/DEL/2019 ( A.Y 2009-10) BIMLA DEVI D/O. SHRI PHOOL CHAND H. NO. 207B, BANK COLONY, HISHAR STATE: HARYANA PAN: AOFPB7940F (APPELLANT) VS ITO WARD-1 HARYANA PIN: 125001 (RESPONDENT) APPELLANT BY MS. MONIKA AGGARWAL, 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 23/01/2019 PASSED BY CIT(A)-HISAR, FOR ASSESSMENT YEAR 2009-1 0. 2. THE GROUNDS OF APPEAL ARE AS UNDER:- 1. THAT BOTH THE INITIATION OF PROCEEDINGS UNDER SECTI ON 147 OF THE ACT AND, COMPLETION OF ASSESSMENT UNDER SECTION 147/143(3) O F THE ACT WERE WITHOUT JURISDICTION AND HENCE DESERVE TO BE QUASHED AS SUC H. 1.1 THAT SINCE THERE WAS NO SPECIFIC RELEVANT, REL IABLE AND TANGIBLE MATERIAL ON RECORD TO FORM A REASON TO BELIEVE THAT INCOME OF THE APPELLANT HAD ESCAPED ASSESSMENT AND IN VIEW THEREOF THE PROCEEDINGS INIT IATED ARE ILLEGAL U/S 147 OF THE ACT, UNTENABLE AND THEREFORE UNSUSTAINABLE. 1.2 THAT REASONS WERE RECORDED MECHANICALLY WITHOU T APPLICATION OF MIND AND THEREFORE DO NOT CONSTITUTE VALID REASON TO BELIEV E FOR ASSUMPTION OF JURISDICTION U/S DATE OF HEARING 05.03.2020 DATE OF PRONOUNCEMENT 12.05.2020 2 ITA NO. 8710/DEL/2019 147 OF THE ACT. 1.3 THAT IN ABSENCE OF ANY VALID APPROVAL OBTAINED UNDER SECTION 151 OF THE ACT, INITIATION OF PROCEEDINGS U/S 147 OF THE ACT A ND ASSESSMENT FRAMED U/S 147/143(3) OF THE ACT ARE INVALID AND DESERVE TO BE QUASHED AS SUCH. 2. THAT THE LEARNED COMMISSIONER OF INCOME TAX (AP PEALS) HAS FURTHER ERRED BOTH IN LAW AND ON FACTS IN DISPOSING OFF THE APPEA L EX-PARTEE WITHOUT GRANTING ANY FAIR OPPORTUNITY OF BEING HEARD TO THE APPELLANT. 2.1 THAT THE LEARNED COMMISSIONER OF INCOME TAX (A PPEALS) HAS FAILED TO APPRECIATE THAT THERE WAS REASONABLE CAUSE FOR THE APPELLANT FOR NOT CAUSING APPEARANCE ON THE DATES FIXED FOR HEARING AND AS SU CH DISPOSAL OF THE APPEAL WITHOUT GRANTING FAIR, MEANINGFUL AND PROPER OPPORT UNITY IS UNTENABLE. 2.2. THAT EVEN OTHERWISE, AN ORDER PASSED IN LIMIN I WITHOUT EFFECTIVELY DISPOSING OF THE GROUNDS RAISED BY THE APPELLANT IS IN INFRACTION OF SECTION 250(6) OF THE ACT AND AS SUCH, ORDER SO MADE IS OTHERWISE TOO ILLEGAL, INVALID AND A VITIATED ORDER. 3. THAT THE LEARNED COMMISSIONER OF INCOME TAX (AP PEALS) HAS ERRED BOTH IN LAW AND ON FACTS IN UPHOLDING THE ADDITION OF RS. 1 2,00,000/- REPRESENTING ALLEGED UNEXPLAINED DEPOSITS IN THE BANK ACCOUNT OF THE APP ELLANT. PRAYER: IT IS THEREFORE PRAYED THA T, IT BE HELD THAT ORDER DISPOSING OF THE APPEAL EXPARTEE BY THE LEARNED COMMISSIONER OF INCO ME TAX (APPEALS) BE SET-ASIDE. IT IS FURTHER PRAYED THAT ASSESSMENT MADE BY THE LE ARNED ASSESSING OFFICER AND SUSTAINED BY THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) DESERVES TO BE QUASHED AS SUCH. IT IS ALSO PRAYED THAT, ADDITION M ADE AND SUSTAINED BY THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) MAY KINDLY BE DELETED AND, APPEAL OF THE APPELLANT BE ALLOWED 3. THE ASSESSEE DID NOT FILE RETURN OF INCOME FOR ASSESSMENT YEAR 2009-10. RETURN DECLARING TOTAL INCOME AMOUNTING TO RS. 24,6 00/- WAS FILED BY THE ASSESSEE ON 19/09/2016 IN RESPONSE TO NOTICE U/S 14 8 OF THE INCOME TAX ACT, 1961. THE ASSESSMENT WAS COMPLETED THEREBY MAKING AN ADDITION OF RS. 12,00,000/- IN RESPECT OF UNEXPLAINED DEPOSITS. 3 ITA NO. 8710/DEL/2019 4. BEING AGGRIEVED BY THE ASSESSMENT ORDER, THE AS SESSEE FILED APPEAL BEFORE THE CIT(A). THE CIT(A) DISMISSED THE APPEAL OF TH E ASSESSEE. 5. THE LD. AR SUBMITTED THAT THE CIT(A) HAS PASSED EX-PARTE ORDER AND NO NOTICE HAS BEEN RECEIVED BY THE ASSESSEE. THEREFOR E, THE LD. AR REQUESTED THAT THE MATTER MAY BE REMANDED BACK TO THE FILE OF THE CIT(A) TO DECIDE THE ISSUES CONTESTED BEFORE THE CIT(A) ON MERIT. 6. THE LD. DR RELIED UPON THE ASSESSMENT ORDER AND THE ORDER OF THE CIT(A). 7. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE M ATERIAL AVAILABLE ON RECORD. IT IS PERTINENT TO NOTE THAT THE CIT(A) H AS PASSED EX-PARTE ORDER AND DISMISSED THE APPEAL FOR NON PROSECUTION. THE CIT( A) HAS NOT AT ALL DISCUSSED THE MERIT OF THE CASE. IT WILL BE APPROPRIATE TO R EMAND BACK THE MATTER TO THE FILE OF THE CIT(A) FOR FRESH ADJUDICATION ON MERIT. NEEDLESS TO SAY, THE ASSESSEE BE GIVEN OPPORTUNITY OF HEARING BY FOLLOWING PRINCI PLES OF NATURAL JUSTICE. THUS, APPEAL OF THE ASSESSEE IS PARTLY ALLOWED FOR STATIS TICAL PURPOSE. 8. IN RESULT, THE APPEAL OF THE ASSESSEE IS PARTLY ALLOWED FOR STATISTICAL PURPOSE. ORDER PRONOUNCED ON THIS 12TH DAY OF MAY, 2020. SD/- SD/- (PRASHANT MAHARISHI) (SUCHITRA KAMBLE) ACCOUNTANT MEMBER JUDICIA L MEMBER DATED: 12/05/2020 R. NAHEED COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4 ITA NO. 8710/DEL/2019 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI DATE OF DICTATION 16.03.2020 DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER 16.03.2020 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 DATE ON WHICH THE FINAL ORDER IS UPLOADED ON THE WEBSITE OF ITAT 1 3 . 5 . 2 0 2 0 DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 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