Sh. Sanjay Aggarwal, New Delhi V. ACIT, Rewari

ITA 929/DEL/2014

• Counselvise Citation: [2018] 126 COUNSELVISE.COM (IT) 4204 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 10 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-01-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: G
• Next Hearing Date: 23-05-2017
• Assessment Year: 2008-2009
• Appeal Filed On: 18-02-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ASHIMA NEB
• Keywords: Opportunity of being heard; Principle of natural justice

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH SMC , NEW DELHI BEFORE SH. N. K. SAINI, A CCOUNTANT M EMBER ITA NO. 929 /DEL/2014 : ASSTT. YEAR : 2008 - 0 9 SANJAY AGGARWAL, C/O KAPIL GOEL, ADV. , A - 1/25, SECTOR - 15, ROHINI, NEW DELHI - 110085 VS ACIT, CIRCLE REWARI (APPELLANT) (RESPONDENT) PAN NO. A A TPA0785F ASSESSEE BY : SH. KAPIL GOEL, ADV. REVENUE BY : MS. ASHIMA NEB , SR. DR DATE OF HEARING : 13 .12 .201 7 DATE OF PRONOUNCEMENT : 03 .01 .201 8 ORDER THIS IS AN APPEAL BY THE ASSESSEE AGAINST THE ORDER DATED 13.12.2011 OF LD. CIT(A) , ROHTAK . 2. FOLLOWING GROUNDS HAVE BEEN RAISED IN THIS APPEAL: 1. THAT ON THE FACTS AND IN THE CIRCUMSTANCES O F THE CASE AND IN LAW THE LD CIT - A ERRED IN CONFIRMING THE ADDITION OF RS. 13,07,927 U/S 57 OF THE ACT IN PARA 5 OF IMPUGNED ORDER ON BASIS OF PERVERSE FINDING AND REASONING. 2. THAT ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW THE LD CIT - A ERRED IN CONFIRMING THE ADDITION OF RS. 58,899 U/S 57 OF THE ACT ON BASIS OF PERVERSE FINDING AND REASONING. 3. THAT ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW THE LD CIT - A ERRED IN CONFIRMING THE ITA NO . 929 /DEL /201 4 SANJAY AGGARWAL 2 ADDITION OF RS. 95,599 U/S 57 OF THE A CT ON BASIS OF PERVERSE FINDING AND REASONING. 4. THAT ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW THE LD CIT - A ERRED IN CONFIRMING THE ADDITION OF RS. 210,600 U/S 24 OF THE ACT DEHORS THE PROVISIONS OF THE STATUTE AND IGNORING THE MATERI AL FACTS ON RECORDS. 5. THAT ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW THE LD CIT - A ERRED IN DECIDING THE APPEAL EX - PARTE ON MERITS WHERE ASSESSE E WAS PREVENTED BY SUFFICIENT CAUSE FROM APPEARING BEFORE LD CIT - A PASSING THE ORDER ON 13. 12.2011 AFTER LAST DATE FIXED FOR 8/12/2011. RELIEF CLAIMED I) TO DELETE THE ADDITION OF RS 13,07,927/ - ; II) TO DELETE THE ADDITION OF RS. 58,899/ - ; III) TO DELETE THE ADDITION OF RS. 95,599/ - ; IV) TO DELETE THE ADDITION OF RS. 210,600/ - ; V) TO SET A SIDE THE PROCEEDINGS TO FILE OF LD CIT - A FOR DENOVO ADJUDICATION; VI) ANY OTHER RELIEF AS DEEMED FIT AND APPROPRIATE IN FACTS AND CIRCUMSTANCES OF THE CASE . THAT THE APPELLANT CRAVES LEAVE TO ADD, TO, AMEND, MODIFY, RESCIND, SUPPLEMENT OR ALTER ANY OF TH E GROUNDS STATED HEREIN ABOVE, EITHER BEFORE OR AT THE TIME OF HEARING OF THIS APPEAL. 3 . FACTS OF THE CASE IN BRIEF ARE THAT THE ASSESSEE FILED THE RETURN OF INCOME ON 25.03.2010 DECLARING AN INCOME OF RS.7,62,640/ - WHICH WAS PROCESSED U/S 143(1) OF TH E INCOME TAX ACT, 1961 (HEREINAFTER REFERRED ITA NO . 929 /DEL /201 4 SANJAY AGGARWAL 3 TO AS THE ACT). LATER ON, THE CASE WAS SELECTED FOR SCRUTINY. THE AO FRAMED THE ASSESSMENT AT AN INCOME OF RS.24,35,665/ - BY MAKING THE ADDITION OF RS.13, 07,927/ - ON ACCOUNT OF DISALLOWANCE OF INTEREST PAID ON T HE OVERDRAFT LIMIT, RS.58,899/ - ON ACCOUNT OF INTEREST PAID ON CAR LOAN, RS.95,599/ - ON ACCOUNT OF INTEREST PAID ON UNSECURED LOAN AND RS.2,10,600/ - BY DISALLOWING THE CLAIM OF DEDUCTION U/S 24 OF THE ACT. 4 . BEING AGGRIEVED THE ASSESSEE CARRIED THE MAT TER TO THE LD. CIT(A) WHO DISMISSED THE APPEAL EX - PARTE AND SUSTAINED THE ADDITION MADE BY THE AO. 5 . NOW THE ASSESSEE IS IN APPEAL. THE LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT NO OPPORTUNITY OF BEING HEARD WAS GIVEN BY THE LD. CIT(A). THEREFORE, THE MATTER MAY BE RESTORED TO THE LD. CIT(A) FOR ADJUDICATION ON MERIT AFTER PROVIDING DUE AND REASONABLE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. 6 . IN HIS RIVAL SUBMISSIONS, THE LD. DR STRONGLY SUPPORTED THE ORDERS PASSED BY THE AUTHORITIES BELOW. 7 . I HAVE CONSIDERED THE SUBMISSIONS OF BOTH THE PARTIES AND CAREFULLY GONE THROUGH THE MATERIAL AVAILABLE ON THE RECORD. IN THE PRESENT CASE, IT IS NOTICED THAT THE LD. CIT(A) WHILE DECIDING THE APPEAL OF THE ASSESSEE EX - PARTE OBSERVED THAT WHEN THE ASSESSE E REQUESTED FOR ADJOURNMENT ON THE GROUND OF ILLNESS OF THE COUNSEL VIDE LETTER DATED 01.11.2011, LAST ITA NO . 929 /DEL /201 4 SANJAY AGGARWAL 4 OPPORTUNITY / FINAL ADJOURNMENT WAS GRANTED VIDE OFFICE LETTER DATED 23.11.2011. IN THE PRESENT CASE, IT IS NOT BROUGHT ON RECORD AS TO WHETHER THE AFORESA ID LETTER MENTIONING DATE OF HEARING WAS SERVED UPON THE ASSESSEE OR NOT . IT IS ALSO NOTICED THAT THE LD. CIT(A) WHILE DISMISSING THE APPEAL OF THE ASSESSEE, SUSTAINED THE ADDITION MADE BY THE AO SIMPLY BY ACCEPTING THE OBSERVATION OF THE AO. IT IS WELL SE TTLED THAT NOBODY SHOULD BE CONDEMNED UNHEARD AS PER THE MAXIM AUDI ALTERAM PARTEM . I, THEREFORE, BY KEEPING IN VIEW THE PRINCIPLES OF NATURAL JUSTICE, DEEM IT APPROPRIATE TO SET ASIDE THE IMPUGNED ORDER AND REMAND THE ISSUE BACK TO THE FILE OF THE LD. C IT(A) TO BE ADJUDICATED AFRESH IN ACCORDANCE WITH LAW AFTER PROVIDING DUE AND REASONABLE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. 8 . IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES . (O RD E R P RON OUNCED IN THE COURT ON 03 /01 /201 8 ) SD/ - (N. K. SAINI) ACCOUNTANT MEMBER DAT ED: 03 /01/2018 *SUBODH* COPY FORWARDED TO: 1 . APPELLANT 2 . RESPONDENT 3 . CIT 4 . CIT(APPEALS) 5 . DR: ITAT ASSISTANT REGISTRAR