KRISHNA RAI,NEW DELHI V. ITO, WARD 53(4), NEW DELHI, NEW DELHI

ITA 4798/DEL/2024

AI Insights

The case involves Krishna Rai, the appellant, who appealed against the orders of the Ld. NFAC, Delhi, which were related to the assessment year 2011-12. The primary contention was that both the ex-parte assessment order and the subsequent appeal order were illegal and did not consider the facts of the case adequately. The appellant argued that they were not given sufficient opportunity to be heard, and the assessment was based on a non-speaking order. Additionally, the appellant sought permission to file additional evidence, which was not granted. The case was initially reopened due to an investment of Rs. 15,00,000 in mutual funds by the assessee, for which no return of income was filed. The AO completed the assessment under section 144, assessing the total income at Rs. 15,00,000 due to non-compliance with notices. The CIT(A) dismissed the appeal, noting the absence of response from the assessee. The Tribunal, considering the circumstances, decided to remit the case back to the AO for a fresh assessment after providing a fair hearing to the assessee.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 31684 (ITAT-DELHI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-02-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2011-2012
• Result in Favour of: Matter Remanded
• Court: TRIBUNAL
• Department Lawyers: SANJAY KUMAR
• Keywords: Opportunity of being heard; Additional evidence
• Section: 144

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “SMC”, NEW DELHI BEFORE SHRI SHAMIM YAHYA, ACCOUNTANT MEMBER, ITA NO. 4798/Del/2024 A.YR. : 2011-12 KRISHNA RAI, H.NO. 804, TOP FLOOR, BHAGWATI NIWAS, SUKHDEV MARKET, KOTLA MUMABRAK PUR, NEW DELHI – 3 (PAN: AFJPR2180Q) VS. ITO, WARD 53(4), NEW DELHI ROOM NO. 1509, 15TH FLOOR, TOWER-E-2, DR. S.P. MUKHERJEE CIVIC CENTRE, NEW DELHI – 2 (APPELLANT) (RESPONDENT) Appellant by : None Respondent by : Shri Sanjay Kumar, Sr. DR. Date of hearing : 20.02.2025 Date of pronouncement : 20.02.2025 ORDER The Assessee has filed the instant Appeal against the Order of the Ld. NFAC, Delhi dated 23.08.2024, relating to assessment year 2011-12 on the following grounds:- 1. Ex-parte Assessment order and subsequent Ex-parte appeal order passed are illegal and against the facts of the case. 2. As mentioned in facts no. 2 and 3 the assessee was not afforded by sufficient opportunity of being heard and non-speaking assessment order was passed which is illegal and required to be quashed. 3. Ld. Appellate Authority grossly erred in law in not affording the permission to file additional evidence in spite of ex-parte orders were 2 | P a g e passed. 4. As per the facts at no. 5 the Assessing Authority did not check the bank statement in which opening balance was reflecting and the assessee purchased Mutual fund out of the major part of his past savings. 5. The Assessee craves the indulgence the right to add any additional grounds at later stage. 6. Prayer: Keeping in view the above facts and ground, your good self is requested to quash the impugned assessment and appeal order and delete the additional demand accordingly. 2. Brief facts of the case are assessee is an individual. No return of income was filed for the AY 2011-12. Based on the information that the assessee during the year under consideration had made investment of Rs. 15,00,000/- in Units of Mutual Funds, the case was reopened. The assessee failed to comply with the notices issued and the AO completed the assessment u/s. 144 assessing the total income at Rs. 15,00,000/-. 3. Upon assessee’s appeal, Ld. CIT(A) noted that several opportunities were given, but no response from the assessee. Hence, the AO proceeded to dismiss the appeal. 4. Against the aforesaid order, Assessee is in appeal before me 5. I have heard the Ld. DR and perused the records. None appeared on behalf of the assessee, despite issue of notice, therefore, I am proceeding exaparte qua the assessee. I note that it was the contention of the Assessee that due to genuine reasons, assessee could not represent before the authorities below. He pleaded that an opportunity may kindly be granted to canvass the appeal properly before the authorities below. Therefore, in the interest of justice, the issues in dispute are remitted back to the file of the AO for fresh 3 | P a g e consideration, after giving adequate opportunity of being heard to the assessee for which the Ld. DR has no objection. Assessee is directed to fully cooperate with the AO during the proceedings. 6. In the result, the Assessee’s appeal is allowed for statistical purposes. Order pronounced in Open Court on 20/02/2025. Sd/- (SHAMIM YAHYA) ACCOUNTANT MEMBER SR Bhatnagar Copy forwarded to:- 1. Appellant 2. Respondent 3. CIT 4. CIT(A) 5. DR, ITAT Assistant Registrar "