Smt. Jagjit Kaur, Patiala V. ITO, W-2(3), Chandigarh

ITA 913/CHANDI/2019

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 1213 (ITAT-CHANDIGARH)
• Duration Of Justice: 2 year(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-07-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2009-2010
• Appeal Filed On: 10-06-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ARVIND SUDERSHAN JCIT
• Keywords: Opportunity of being heard; Reasonable cause; Set aside
• Section: 69A

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL, CHANDIGARH BENCH SMC CHANDIGARH !', # BEFORE: SMT. DIVA SINGH, JM ./ ITA NO. 913/CHD/2019 / ASSESSMENT YEAR : 2009-10 SMT. JAGJIT KAUR, HOUSE NO. 144, GALI NO. 9, GURU NANAK NAGAR, NEAR BHAI MANI SINGH GURUDWARA, PATIALA. VS THE ITO, WARD 2(3), CHANDIGARH. ./ PAN NO: AMZPK1467G / APPELLANT / RESPONDENT ! ' / ASSESSEE BY : SHRI PARIKSHIT AGGARWAL, C.A. # ! ' / REVENUE BY : SHRI ARVIND SUDERSHAN, JCIT $ % ! &/ DATE OF HEARING : 07.07.2021 '()* ! &/ D ATE OF PRONOUN CEMENT : 09.07.2021 HEARING CONDUCTED VIA WEBEX $%/ ORDER THE PRESENT APPEAL HAS BEEN FILED BY THE ASSESSEE WHEREIN THE CORRECTNESS OF THE ORDER DATED 31.12.20 18 OF CIT(A)-2 CHANDIGARH PERTAINING TO 2010-11 ASSESSMEN T YEAR IS ASSAILED ON THE FOLLOWING GROUNDS : 1. THAT ON THE FACTS, CIRCUMSTANCES AND LEGAL POSITION OF THE CASE, THE WORTHY CIT(A) IN APPEAL NO. 844/11-12 HAS ERRED IN PASSING THAT ORDER IN CONTRAVENTION OF THE PROVISIONS OF S. 250(6) OF THE INCOME TAX ACT, 1961. 2. THAT ON FACTS, CIRCUMSTANCES AND LEGAL POSITION OF THE CASE, THE IMPUGNED ORDERS PASSED BY WORTHY CIT(A) AS WELL AS BY THE LD . AO DESERVE TO BE SET- ITA 913/CHD/2019 A.Y. 2009-10 PAGE 2 OF 5 ASIDE AND THE MATTER DESERVES TO BE REMANDED BACK S INCE THE APPELLANT WAS NOT AFFORDED REASONABLE OPPORTUNITY OF BEING HEARD AND THERE EXISTED REASONABLE CAUSE FOR NON-APPEARANCE ON THE DATES OF HEARING FIXED BY THE WORTHY CIT(A) AS WELL AS BY THE LD. AO. 3. THAT ON FACTS, CIRCUMSTANCES AND LEGAL POSITION OF THE CASE, WORTHY CIT(A) HAS ERRED IN CONFIRMING THE ACTION OF LD. AO IN MAK ING AN ADDITION OF RS. 18,71,000/- ON ACCOUNT OF ALLEGED UNEXPLAINED AMOUN T DEPOSITED IN BANK ACCOUNT U/S 69A OF THE ACT EVEN WHEN THE SAID AMOUN T HAD BEEN RECEIVED FROM THE SALE OF AGRICULTURAL LAND BY THE APPELLANT AS PER THE AGREEMENT TO SELL. 4. THAT THE APPELLANT CRAVES LEAVE FOR ANY ADDITION, D ELETION OR AMENDMENT IN THE GROUNDS OF APPEAL ON OR BEFORE THE DISPOSAL OF THE SAME. 2. THE LD. AR INVITING ATTENTION TO THE ADJOURNMENT APPLICATION FILED ON RECORD SUBMITTED THAT THE ASSE SSEE WHO HAD EARLIER CONTEMPLATED OPTING FOR 'VIVAD SE VISHW AS SCHEME, 2020 HAD ULTIMATELY NOT AVAILED OF THE SAI D SCHEME AND CHOSEN TO ARGUE THE APPEAL ON MERITS, HENCE MOV ED AN ADJOURNMENT APPLICATION SEEKING TIME TO PREPARE. HO WEVER, CONSIDERING THE RECORD, IT WAS HIS SUBMISSION THAT THE ADJOURNMENT APPLICATION MAY BE CONSIDERED TO BE WIT HDRAWN ON HIS ORAL REQUEST AS HE IS READY TO ARGUE THE APP EAL ON MERITS. NOTING THAT NO OBJECTION WAS POSED BY THE L D. DR THE REQUEST FOR WITHDRAWAL OF THE ADJOURNMENT REQUEST W AS PERMITTED AND THE PARTIES WERE REQUIRED TO ARGUE TH E APPEAL ON MERITS. 3. THE LD. AR INVITING ATTENTION TO GROUND NO. 2 IN THE PRESENT APPEAL SUBMITTED THAT THE APPEAL OF THE ASS ESSEE WAS DISMISSED AFTER CONSIDERING THE WRITTEN SUBMISSIONS ITA 913/CHD/2019 A.Y. 2009-10 PAGE 3 OF 5 EXPLAINING THE DEPOSIT OF FUNDS FROM SALE OF VARIOU S PROPERTIES. THE ASSESSEE, IT WAS SUBMITTED, WAS CON FIDENT THAT THE EXPLANATION WAS SUFFICIENT. HOWEVER, IF T HERE WAS ANY DEFICIENCY IN THE EXPLANATION AND FURTHER CLARIFICATION/ELABORATION WAS REQUIRED, THEN THE FI RST APPELLATE AUTHORITY IN ALL FAIRNESS SHOULD HAVE PRO VIDED AN OPPORTUNITY OF BEING HEARD. REFERRING TO THE RECOR D, IT WAS HIS SUBMISSION THAT NO SUCH OPPORTUNITY HAS BEEN PR OVIDED AND CONSIDERING THE WRITTEN SUBMISSIONS RELYING UPO N THE ASSESSMENT ORDER, THE ADDITION MADE BY THE AO HAS B EEN CONFIRMED. ACCORDINGLY, IT WAS HIS PRAYER THAT IN THE FACTS OF THE PRESENT CASE, THE ASSESSEE HAS BEEN DEPRIVED OF A FAIR OPPORTUNITY OF BEING HEARD. IT WAS ALSO HIS SUBMIS SION THAT IN THE CASE OF THE ASSESSEE IN THE IMMEDIATELY SUBS EQUENT ASSESSMENT YEAR I.E. 2010-11 ASSESSMENT YEAR, THE I TAT VIDE ORDER DATED 13.10.2020 IN ITA NO. 1037/CHD/2019 HAS REMANDED THE ISSUE BACK TO THE AO. REMAND BACK TO THE AO ON SIMILAR LINES WAS REQUESTED. IT WAS ELABORATED THAT THERE MAY BE SOME ISSUES WHICH ARE COMMON THEREIN AND MAY REQUIRE TO BE ADDRESSED BY THE AO. ACCORDINGLY, IN STEAD OF REMANDING THE ISSUE BACK TO THE FILE OF THE CIT(A), IT WAS HIS REQUEST THAT THE REMAND BACK MAY BE DIRECTED TO THE AO. ITA 913/CHD/2019 A.Y. 2009-10 PAGE 4 OF 5 4. THE LD. SR.DR MR. ARVIND SUDERSHAN ON CONSIDERIN G THE RECORD HAD NO OBJECTION TO THE SAID REQUEST. 5. I HAVE HEARD THE SUBMISSIONS AND PERUSED THE MAT ERIAL ON RECORD. IN THE FACTS OF THE PRESENT CASE, IT IS SEEN THAT THE AO HAS TAKE NOTE OF THE FACT THAT SOME ANCESTRA L LAND IN 4 INSTALLMENTS WAS SOLD BY THE ASSESSEE ON VARIOUS DATES AND THE EXPLANATION CALLED FORTH FOR DEPOSIT OF RS. 33 ,20,000/- WAS FOUND TO BE PARTLY ACCEPTABLE AND ADDITION OF R S. 18,71,000/- WAS MADE IN THE HANDS OF THE ASSESSEE. IT IS SEEN THAT THE ASSESSEE IN HER EXPLANATION BEFORE T HE AO HAS STATED THAT THE AMOUNT DEPOSITED IN HER BANK ACCOUN T WERE RECEIVED FROM PURCHASER SHRI KULDIP SINGH AND THE A MOUNTS HAVE BEEN SPENT BY HER FOR SETTLING HER CHILDREN AN D IN THEIR MARRIAGE ETC. AND SINCE SHE COULD NOT PRODUCE SHRI KULDIP SINGH OR FURNISH HIS STATEMENT, THE ADDITIONS STOOD CONFIRMED. IT IS SEEN THAT IN THE SUBSEQUENT ASSESS MENT YEARS, SOURCE OF DEPOSITS IS STATED TO BE BY WAY OF SALE OF PROPERTIES ETC. ACCORDINGLY, IN ORDER TO TAKE A WH OLISTIC VIEW ON THE ISSUES WHICH MAY HAVE A COMMONALITY ON FACTS , THE RESTORE BACK TO THE AO IS WE4LL FOUNDED. ACCORDINGL Y, ON CONSIDERING THE ENTIRE MATERIAL AVAILABLE ON RECORD , IT IS DEEMED APPROPRIATE TO SET ASIDE THE IMPUGNED ORDER BACK TO THE FILE OF THE AO WITH DIRECTION TO PASS A SPEAKIN G ORDER IN ITA 913/CHD/2019 A.Y. 2009-10 PAGE 5 OF 5 ACCORDANCE WITH LAW. THE ASSESSEE IN ITS OWN INTER ESTS IS DIRECTED TO ENSURE FULL AND PROPER PARTICIPATION BE FORE THE SAID AUTHORITY AS FAILING WHICH IT IS MADE CLEAR TH E AO WOULD BE AT LIBERTY TO PASS AN ORDER IN ACCORDANCE WITH L AW. SAID ORDER WAS PRONOUNCED AT THE TIME OF VIRTUAL HEARING ITSELF IN THE PRESENCE OF THE PARTIES VIA WEBEX. 6. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED ON 9 TH JULY,2021. SD/- ( !' ) (DIVA SINGH) # / JUDICIAL MEMBER ' ( / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT 3. / CIT 4. ( )/ THE CIT(A) 5. , , / DR, ITAT, CHANDIGARH 6. / GUARD FILE / BY ORDER, / ASSISTANT REGISTRAR