JARNAIL SINGH,PANCHKULA V. INCOME TAX OFFICER, WARD 3(5), CHANDIGARH

ITA 831/CHANDI/2024

AI Insights

The case involves an appeal by Jarnail Singh against the order of the CIT(A) dated 4.6.2024 concerning the assessment year 2012-13. The primary grievances included the initiation and continuation of the assessment under sections 148 and 147/144, and the confirmation of an addition of Rs. 2,96,60,000 as unexplained investment under section 69 of the Income Tax Act, 1961. The assessee argued that the orders were passed without a reasonable opportunity of being heard, contravening the provisions of section 250 of the Act. The CIT(A) had noted the absence of any details from the appellant despite multiple opportunities to furnish submissions and supporting documents. The tribunal found that the principles of natural justice were not adhered to, leading to the decision to remand the case for a fresh hearing.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 397196 (ITAT-CHANDIGARH)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-05-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: Not Allotted
• Assessment Year: 2012-2013
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Matter Remanded
• Court: TRIBUNAL
• Department Lawyers: VED PARKASH KALIA
• Assessee Lawyers: PARIKSHIT AGGARWAL
• Keywords: Opportunity of being heard; Unexplained investment; Principle of natural justice
• Section: 147; 148; 144

Judgement Text

" BEFORE SHRI LALIET KUMAR, JUDICIAL MEMBER & SHRI KRINWANT SAHAY, ACCOUNTANT MEMBER आयकर अपील सं./ ITA No. 831/CHD/2024 Ǔनधा[रण वष[ / Assessment Year : 2012-13 Jarnail Singh, Village Puchalla, Near Sector 20, Panchkula 140201 बनाम Vs. ITO, Ward 3(5), Chandigarh èथायी लेखा सं./PAN NO: DOXPS6411F अपीलाथȸ/Appellant Ĥ×यथȸ/Respondent Ǔनधा[ǐरती कȧ ओर से/Assessee by : Shri Parikshit Aggarwal, CA राजèव कȧ ओर से/ Revenue by : Sh. Ved Parkash Kalia, Sr.DR सुनवाई कȧ तारȣख/Date of Hearing : 12.03.2025 उदघोषणा कȧ तारȣख/Date of Pronouncement : 28.05.2025 आदेश/Order Per Krinwant Sahay, AM : Appeal in this case has been filed by the assessee against the order dated 4.6.2024 of ld. CIT(A). National Faceless Appeal Centre (NFAC), Delhi, for A.Y. 2012-13. 2. Grounds of appeal are as under: - 1. That on the facts, circumstances and legal position of the case, Worthy CIT(A) National Faceless Appeal Centre in appeal No. CIT(A), Chandigarh-1/10383/2019-20 has erred in passing order dated 4.6.2024 in contravention of provisions of S. 250 of the 831-Chd-2024 Jarnail Singh, Panchkula 2 Income Tax Act, 1961 (herein referred to as “Act”). 2. That on facts, circumstances and legal position of the case, Worthy C1T(A) has erred in confirming the actions of Ld. AO in initiating, continuing and then concluding the impugned assessment u/s 148 r.w.s. 147/144 and hence the impugned assessment order deserves to be quashed. 3. That on facts, circumstances and legal position of the case, Worthy CIT(A) has erred in confirming addition of Rs. 2,96,60,000/- u/s 69 of the Act made by Ld. AO by erroneously holding the property purchased as unexplained investment. 4. That on facts, circumstances and legal position of the case, the impugned order passed by the Ld. AO u/s 147 r.w.s 144 and then by Worthy C1T(A) u/s 250 deserves to be quashed since the same have been passed without affording reasonable opportunity of being heard to the appellant. 5. That the appellant craves leave for any addition, deletion or amendment in the grounds of appeal on or before the disposal of the same. 3. At the very outset, the ld. Counsel for the Assessee submitted before the Bench that the order passed by the Assessing Officer in this case is an ex-parte order u/s 144 of the Income Tax Act, 1961 (in short 'the Act’) and the Ld. CIT(A) has also not decided the issues on merit. 831-Chd-2024 Jarnail Singh, Panchkula 3 4. On the other hand, the ld. CIT(A) also in his appellate order has given his findings as under:- “The appellant has not submitted any details in the appellate proceedings in spite of giving opportunities to furnish or cause to be furnished Ground wise written submissions, along with supporting documentary evidences(s) and / or documents as specified in the attached annexure. if any. However, the appellant has not furnished any details”. 5. We have considered the ex-parte order passed by the Assessing Officer and the appeal order passed by the ld. CIT(A) in which the ld. CIT(A) has not given any findings deciding any issue on merit. The ld. Counsel for the Assessee requested the Bench that the matter may be remanded back to the CIT(A) for fresh adjudication. 6. The ld. DR relied on the order of the CIT(A). 7. It is seen that both the authorities below i.e., the Assessing Officer and the Ld. CIT(A) have not given any findings on any issue on merit after considering the details. In fact, that the Assessee did not appear before the Assessing Officer and, therefore, the AO was constrained to pass an 831-Chd-2024 Jarnail Singh, Panchkula 4 order u/s 144 of the Income Tax Act,1961. Since the Assessee could not file any written submissions before the ld. CIT(A). The ld. CIT(A) also did not consider any issue on merit, we are of this opinion that keeping in view the element of natural justice, the Assessee should be given opportunity to present his case before the ld. CIT(A) on each and every issue. Therefore, in the fitness of things and keeping in view the element of natural justice, the case is remanded back to CIT(A) for adjudication afresh on merit, in accordance with law, on affording due and adequate opportunity of hearing to the Assessee. The Assessee, no doubt, shall cooperate in the fresh proceedings before the CIT(A). All pleas available under the law shall remain so available to the assessee. Ordered accordingly. The appeal of the Assessee is allowed for statistical purposes. 8. In the result, the appeal is allowed for statistical purposes. Order pronounced on 28.05.2025 Sd/- Sd/- ( LALIET KUMAR ) ( KRINWANT SAHAY) Judicial Member Accountant Member “आर.क े.” 831-Chd-2024 Jarnail Singh, Panchkula 5 आदेश कȧ ĤǓतͧलͪप अĒेͪषत / Copy of the order forwarded to : 1. अपीलाथȸ/ The Appellant 2. Ĥ×यथȸ/ The Respondent 3. आयकर आयुÈत/ CIT 4. ͪवभागीय ĤǓतǓनͬध, आयकर अपीलȣय आͬधकरण, चÖडीगढ़/ DR, ITAT, CHANDIGARH 5. गाड[ फाईल/ Guard File सहायक पंजीकार/ Assistant Registrar "