Badley Singh, Ghaziabad V. ITO WARD - 1(5), Ghaziabad

ITA 9433/DEL/2019

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 3094 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 6 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-06-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2010-2011
• Appeal Filed On: 09-12-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Reassessment proceedings
• Section: 201; 147; 69; 148; 144

Judgement Text

IN TH E INCOME TAX APPELLATE TRIBUNAL DELHI BENCH : SMC - 1 : NEW DELHI (THROUGH VIRTUAL HEARING) BEFORE SHRI R. K. PANDA, ACCOUNTANT MEMBER ITA NO. 9433 / DEL / 2019 ASSESSMENT YEAR : 20 1 0 - 11 BADLEY SINGH, 5/11, GDA MARKET, SECTOR - 5, GHAZIABAD. PAN : A YGPS9473B VS ITO, WARD - 1 ( 5 ), GHAZIABAD. (APP ELL A NT ) (RESPONDENT) A SSESSEE BY : NONE RE VENUE BY : SHRI R.K. GUPTA, SR. DR DATE OF HEARING : 15 .0 6 . 20 2 1 DATE OF PRONOUNCEMENT : 15 . 0 6 . 2 0 2 1 ORDER PER R. K. PANDA, AM : THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAINST THE EX PARTE ORDER DATED 30 TH SEPTEMBER, 2019 OF THE CIT(A) , GHAZIABAD , RELATING TO THE ASSESSMENT YEAR 201 0 - 11 . 2. NONE APPE ARED ON BEHALF OF THE ASSESSEE DESPITE SERVICE OF NOTICE, THEREFORE, THIS APPEAL IS BEING DECIDED ON THE BASIS OF THE MATERIAL AVAILABLE ON RECORD AND AFT E R HEARING THE LD. DR. ITA NO. 9 433 / DEL /201 9 2 3. FACTS OF THE CASE, IN BRIEF, ARE THAT ON THE BASIS OF AIR INFORMATION THAT THE ASSESSEE HAS DEPO SITED CASH OF RS.16,18,000/ - IN HIS SAVINGS BANK ACCOUNT, THE CASE OF THE ASSE SSEE WAS REOPENED U/S 147 OF THE ACT AFTER RECORDING THE REASONS. NOTICE U/S 148 OF THE ACT DATED 30 TH MARCH, 2007 WAS ISSUED TO THE ASSESSEE. SUBSEQUENTLY, THE AO ISSU ED NOTICE U/S 1 4 2( 1 ) OF THE ACT . S INCE THERE WAS NON - COMPLIANCE FROM THE SIDE OF THE ASSESSEE , THE AO, INVOKING THE PROVISIONS OF SECTION 144 OF THE ACT, MADE ADDITION OF RS.16,18,000/ - TO THE TOTAL INCOME OF THE ASSESSEE U/S 69 OF THE ACT. IN APPEAL, THE LD. CIT(A) UPHELD THE VALIDITY OF THE REASSESSMENT PROCEEDINGS AS WELL AS THE ADDITION ON MERITS. 4. AGGRIEVED WITH SUCH ORDER OF THE CIT(A), THE ASSESSEE IS IN APPEAL BEFORE THE TRIBUNAL BY RAISING THE FOLLOWI NG GROUNDS: - 1. THAT THE SERVICE OF THE NOTICE ISSUED U/S. 147 OF THE INCOME TAX ACT 1961 SUFFERS FROM SEVERE DEFECTS AS SUCH THE INITIATING OF THE PROCEEDINGS OF THE CASE ARE VOID, ABINITIO AND ILLEGAL. 2. THE CIT(APPEALS) ERRED IN LAW BY UPHOLDING THE ACTION OF THE ASSESSING OFFICER U/S 147 AND FRAMING THE ASSESSMENT ORDER U/S 144 OF THE INCOME TAX ACT 1961. THE APPELLANT HAS NOT CONCEALED ANY INCOME CHARGEABLE TO TAX. 3. THE LEARNED CIT(APPEALS) WAS UNJ USTIFIED AND INCORRECT IN NOT ALLOWING SUFFICIENT OPPORTUNITY TO THE APPELLANT TO FILE REJOINDER IN RESPECT OF THE REMAND REPORT AS THE NOTICE FIXING THE DATE OF HEARING FOR 30.09.2019 WAS SERVED ON THE ASSESSEE ON 27.09.2019 AND AT THAT TIME COUNSEL OF TH E APPELLANT WAS BUSY IN COMPLETING TAX AUDIT REPORTS TO BE FILED BY 30.09.2019. 4. THAT THE LEARNED CIT(APPEALS) WAS UNJUSTIFIED AND INCORRECT IN UPHOLDING THE ADDITION OF RS 1618000/ - MADE BY THE ASSESSING OFFICER AS TAXABLE INCOME OF THE APPELLANT. 5. TH AT THE ACTION OF THE LEARNED CIT(APPEALS) MAY BE TREATED BAD IN LAW AS THE PROCEEDINGS INITIATED U/S 148 IS ILLEGAL AND ADDITION UPHELD BY CIT (APPEALS) MAY BE DELETED. ITA NO. 9 433 / DEL /201 9 3 6. THAT THE ASSEESSEE PRAYS FOR LEAVE TO ADD, AMEND OR VARY ANY GROUND EITHER BEFORE OR AT THE TIME OF HEARING OF APPEAL. 5. I HAVE HEARD TH E LD. DR AND PERUSED THE RECORD. I FIND, DUE TO NON - COMPLIANCE TO THE STATUTORY NOTICES, THE AO COMPLETED THE ASSESSMENT U/S 144/147 OF THE ACT DETERMINING THE T OTAL INCOME OF THE ASSESSEE AT RS.16,18,000/ - ON THE GROUND THAT THE ASSESSEE COULD NOT SUBSTANTIATE THE SOURCE OF CASH DEPOSIT OF RS.16,18,000/ - IN HIS SAVINGS BANK ACCOUNT. ALTHOUGH CERTAIN DETAILS WERE FILED BEFORE THE CIT(A) IN WRITING, HOWEVER, IN ABSENCE OF SUFFICIENT DETAILS FILED BEFORE HER TO SUBSTANTIATE THE ADVANCE OF RS.5.5. LAKH RECEIVED AGAINST SALE OF PROPER TY, RS.1.5 LAKH RECEIVED FROM BROTHER AND 30% OF THE TURNOVER OF CASH AMOUNTING TO RS.6.5 LAKH AND IN ABSENCE OF FILING OF COMPLETE COPY O F ITR - 4, THE LD.CIT(A) DISMISSED THE APPEAL FILED BY THE ASSESSEE. SINCE THE AUTHORIZED REPRESENTATIVE OF THE ASSESSEE COULD NOT APPEAR BEFORE THE CIT(A), THE LD.CIT(A), IN THE EX PARTE ORDER PASSED BY HER, UPHELD TH E VALIDITY OF THE REASSESSMENT PROCEEDIN GS AND SUSTAINED THE ADDITION ON MERIT. CONSID ERING THE TOTALITY OF THE FACTS OF THE CASE AND IN THE INTEREST OF JUSTICE, I DEEM IT PROPER TO RESTORE THE ISSUE BACK TO THE FI LE OF THE CIT(A) WITH A DIRECTION TO GRANT ONE FINAL OPPORTUNITY TO THE ASSESSEE TO SUBSTANTIATE HI S CASE AND DEC IDE THE ISSUE AS PER FACT AND LAW. THE ASSESSEE IS ALSO HE REBY DIRECTED TO APPEAR BEFORE THE LD. CIT(A) AND EXPLAIN HIS CASE WITHOUT SEEKING ANY A DJOURNMENT UNDER ANY PRETEXT FAILING WHICH , THE LD.CIT(A) IS AT LIBERTY TO PASS APPROPRIATE ORDER A S PER LAW. I HOLD AND DIRECT ACCORDINGLY. THE GROUNDS RAISED BY THE ASS ESSEE ARE ACCORDINGLY ALLOWED FOR STATISTICAL PURPOSES. ITA NO. 9 433 / DEL /201 9 4 6 . IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. THE ORDER WAS PRO NOUNCED IN THE OPEN COURT ON CONCLUSION OF THE HEARING ITSELF, I.E., ON 15 TH JUNE, 2021. SD/ - ( R. K. PAND A ) ACCOUNTANT MEMBER DATED: 15 TH JUNE, 2021. DK COPY FORWARDED TO : 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR ASSTT. REGISTRAR, ITAT, NEW DELHI