M/S BAJRANG FURNITURE,KAITHAL V. ACIT, CIRCLE, KURUKSHETRA

ITA 273/CHANDI/2023

AI Insights

This case involves an appeal by Bajrang Furniture against the order of the Ld. CIT(A), Karnal, which pertained to the Assessment Year 2016-17. The primary issue arose from a survey action under section 133A of the Income Tax Act, where the assessee surrendered a sum of Rs 3,00,00,000, which was subsequently assessed under 'Income from other sources' as per section 115BBE. The assessee's appeal to the CIT(A) was dismissed due to non-prosecution, leading to the current appeal. The tribunal found that the assessee was not given adequate opportunity to present their case at the CIT(A) level, as the notices were allegedly not served, and thus decided to remit the case back to the CIT(A) for a fresh decision.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 107643 (ITAT-CHANDIGARH)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-01-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2016-2017
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: VIVEK VARDHAN
• Assessee Lawyers: VAGISH SHARMA
• Section: 143(3); 133A

Judgement Text

"आयकर अपीलीय अिधकरण,चǷीगढ़ Ɋायपीठ “ए” , चǷीगढ़ IN THE INCOME TAX APPELLATE TRIBUNAL, CHANDIGARH BENCH “A”, CHANDIGARH HEARING THROUGH: PHYSICAL MODE ŵी िवŢम िसंह यादव, लेखा सद˟ एवं ŵी परेश म. जोशी, Ɋाियक सद˟ BEFORE: SHRI. VIKRAM SINGH YADAV, AM & SHRI. PARESH M. JOSHI, JM आयकर अपील सं./ ITA NO. 273/Chd/2023 िनधाŊरण वषŊ / Assessment Year : 2016-17 Bajrang Furniture Pundri, Karnal Road, Dist: Kaithal Haryana बनाम The ACIT Circle, Kurukshetra ˕ायी लेखा सं./PAN NO: AANFB2372H अपीलाथŎ/Appellant ŮȑथŎ/Respondent िनधाŊįरती की ओर से/Assessee by : Shri Vagish Sharma, CA and Shri Harshit Chawla, Advocate राजˢ की ओर से/ Revenue by : Shri Vivek Vardhan, Addl. CIT, Sr. DR सुनवाई की तारीख/Date of Hearing : 16/01/2025 उदघोषणा की तारीख/Date of Pronouncement : 20/01/2025 आदेश/Order PER VIKRAM SINGH YADAV, A.M. : This is an appeal filed by the Assessee against the order of the Ld. CIT(A), Karnal dt. 26/02/2020 pertaining to Assessment Year 2016-17. 2. At the outset, it is noted that there is a delay in filing the present appeal. After considering the material available on the record, the delay is hereby condoned and the appeal of the assessee is admitted for adjudication. 3. Briefly the facts of the case are that survey action under 133A was carried out at the premises of the assessee wherein the assessee surrendered a sum of Rs 3,00,00,000/- and subsequently, the same was offered in the return of income filed on 16/10/2016 declaring an income of Rs 3,02,87,420/-. During the course of assessment proceedings, the AO 2 held that the income so surrendered is liable to be brought to tax under the head “Income from other sources” in view of the provisions of section 115BBE of the Act and the assessment was accordingly completed under section 143(3) vide order dt. 31/12/2018. Thereafter, the assessee carried the matter in appeal before the Ld. CIT(A) where as part of its ground of appeal, the assessee challenged the order so passed by the AO on an invalid return of income as well as on merits of the case. The ld CIT(A) however, dismissed the appeal of the assessee on account of non- prosecution, and being aggrieved, the assessee is in appeal before us. 4. During the course of hearing, the Ld. AR submitted that the Ld. CIT(A) has passed an ex-parte order without providing adequate opportunity to the assessee. It was submitted that the notices so issued by him were not served on the assessee and therefore, the assessee was prevented by sufficient cause for not attending to the proceedings before CIT(A). It was submitted that assessee be allowed one last opportunity and the matter may be remitted to the file of the Ld. CIT(A) to decide the same afresh and it was submitted that the assessee shall attend to the proceedings before the Ld. CIT(A) and file the necessary information/documentation. 5. Per contra, the Ld. DR relied on the order of the lower authorities. 6. After hearing both the parties and perusing the material available on the record, we find that the assessee deserves one last opportunity and cannot be condemned unheard and therefore, keeping in view 3 principles of substantial justice, the matter is remitted to the file of the Ld. CIT(A) to decide the same afresh after providing reasonable opportunity to the assessee. 7. In the result, appeal of the Assessee is allowed for statistical purposes. Order pronounced in the open Court on 20/01/2025 Sd/- Sd/- परेश म. जोशी िवŢम िसंह यादव (PARESH M. JOSHI) ( VIKRAM SINGH YADAV) Ɋाियक सद˟ / JUDICIAL MEMBER लेखा सद˟/ ACCOUNTANT MEMBER AG आदेश कᳱ ᮧितिलिप अᮕेिषत/ Copy of the order forwarded to : 1. अपीलाथᱮ/ The Appellant 2. ᮧ᭜यथᱮ/ The Respondent 3. आयकर आयुᲦ/ CIT 4. आयकर आयुᲦ (अपील)/ The CIT(A) 5. िवभागीय ᮧितिनिध, आयकर अपीलीय आिधकरण, च᭛डीगढ़/ DR, ITAT, CHANDIGARH 6. गाडᭅ फाईल/ Guard File आदेशानुसार/ By order, सहायक पंजीकार/ Assistant Registrar "