NAVIN CHAHAL ,GURUGRAM V. INCOME TAX OFFICER, WARD 3(1), GURUGRAM

ITA 1079/DEL/2024

AI Insights

This case involves an appeal by Navin Chahal against the order of the National Faceless Appeal Centre (NFAC), Delhi, concerning the Assessment Year 2012-13. The primary grievances included the lack of proper opportunity to present submissions, the validity of proceedings under section 147 of the Income Tax Act, 1961, and the upholding of an addition of Rs. 68,17,200 as unexplained investment. The assessee's counsel argued that the CIT(A) had ignored their adjournment request and passed the order hastily. The Tribunal noted the assessee's decision to withdraw the appeal following the exercise of the Vivad Se Vishwas Scheme option, which aims to resolve tax disputes.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 471785 (ITAT-DELHI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-02-2025
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: E
• Assessment Year: 2012-2013
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: AMIT KATOCH
• Assessee Lawyers: CHANDRESH GUPTA
• Keywords: Set aside; Opportunity of being heard; Competent authority
• Section: 147; 143(2)

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH: ‘E’: NEW DELHI) BEFORE SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER AND SHRI SUDHIR PAREEK, JUDICIAL MEMBER ITA No:- 1079/Del/2024 (Assessment Year- 2012-13) Navin Chahal, Gurugram. Vs. Income Tax Officer, Ward 3(1), Gurugram. PAN No: AMTPC8620K APPELLANT RESPONDENT Assessee by : Shri Chandresh Gupta, Adv. Revenue by : Shri Amit Katoch, Sr. DR Date of Hearing : 25.02.2025 Date of Pronouncement : 25.02.2025 ORDER PER SUDHIR PAREEK, JM: This appeal by the assessee is against the order of National Faceless Appeal Centre (NFAC), Delhi, [hereinafter referred to as ‘the Ld. CIT(A)] order dated 15.01.2024 pertaining to Assessment Year 2012-13. 1.1 The assessee has raised the following grounds of appeal: ITA No.-1079/Del/2024 Navin Chahal 2 “1. That the Commissioner of Income Tax (Appeals) Thereinafter referred as ld. CIT(A); has erred in law and facts of the case while passing an order dated 15.01.2024 without providing an proper opportunity to captioned appellant for filing an submission since captioned appellant made a request vide filing an application for adjournment dated 08.01.2024 for seeking time for collection and collating the all necessary documents, evidences for filing an submission before Ld. CIT(A) but Ld. CTT(A) ignored the same and passed an order in haste. As such, the order passed deserve to be set aside. 2 That Ld. CIT(A) has erred in law and facts of the case while upholding initiation of proceedings under section 147 of the Income Tax Act, 1961 (the act) and ignore that the belief entertained by the Assessing Officer must be reasonable and based on reasons which are relevant and material, which is not so in the present case. That neither the copy of sanction u/s 151 of the Act. has been provided nor the approval/ satisfaction of the Hon'ble PCIT is recorded in the summary of reasons to believe provided to the appellant. Hence, the reopening of this case is not valid and tenable as per law. As such, the assessment order may please be set aside. 3 That Ld. CIT(A) has erred in law and facts of the case while upholding the completed assessment proceedings by the Ld. AO under section 147 of the act without first disposing the objections filed by the appellant by separately passing the speaking order but a combined order passed by the Ld. AO for disposing of objections raised by the appellant without providing opportunity to appellant to clarify misconception of Ld. AO. Hence, the proper course of action is not followed by the Ld. AO while completing the assessment proceedings and the Ld. CIT(A) ignored the same. As such, the assessment order may please be set aside. 4 That the Ld. (TT(A) has erred in law and facts of the case while upholding addition of Rs. 68,17,200/-on account of unexplained investment under the act without appreciating the facts and submissions of the appellant. Further, the Ld. AO has not clarified the appropriate section of the Act under which the said addition was made and Ld. CTT(A) also ignored the same and sustain the additions of Rs. 68,17,200/- As Such, the addition of Rs. 68,17,200/- is bad in law and may please be deleted. 5. That the Ld. CIT(A) has erred in law and facts of the case while upholding the addition of Rs. 68,17,200/- without providing adequate opportunity of being heard to the appellant. That the Ld. AΟ issued notice u/s 143(2) of the Act at the far end on 30/11/2019 and consequently passed the assessment order on 13/12/2019. However, ITA No.-1079/Del/2024 Navin Chahal 3 the Ld. AO passed the order without affording appropriate opportunity to appellant and also the Ld. CTT(A) without giving the appropriate opportunity to the captioned appellant before the disposing the appeal. As such, the addition of Rs. 68,17,200/- is bad in law and may please be deleted. 6. That the appellant craves leave to add, alter or delete any ground of appeal during the course of hearing.” 2. We have heard the Ld. Representative of both the parties and perused the material available on record. 3. When the matter was called for hearing, the Ld. Counsel for the assessee stated that the assessee does not wish to pursue the present appeal due to the exercise of the option for availing of the VSV Scheme and, consequently, requested that the withdrawal of the appeal be granted. 4. The Ld. Sr. DR for the Revenue stated that he has no objection to withdraw the appeal as sought on behalf of the assessee. 5. In view of above fact, since the assessee has availed the benefit under Vivad Se Vishwas Scheme, 2024 to settle the matters, therefore, the appeal of the assessee stands disposed of in terms thereof, subject to approval of the same by the competent authority. If at any stage the assessee finds that its declarations are not ITA No.-1079/Del/2024 Navin Chahal 4 accepted by Department, the assessee is given liberty to recall this order. Appeal of the assessee is accordingly disposed of. 6. In the result, appeal of the assessee is dismissed. Order pronounced in the Open Court on 25.02.2025 Sd/- Sd/- (PRADIP KUMAR KEDIA) (SUDHIR PAREEK) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated: 25/02/2025. Pooja/- Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI ITA No.-1079/Del/2024 Navin Chahal 5 1. Date of dictation of Tribunal order 25.02.2025 2. Date on which the typed draft Tribunal Order is placed before the Dictating Member 25.02.2025 3. Date on which the typed draft Tribunal order is placed before the other Member 4. Date on which the approved draft Tribunal order comes to the Sr. PS/PS 5. Date on which the fair Tribunal order is placed before the Dictating Member for pronouncement 6. Date on which the signed order comes back to the Sr.PS/PS 7. Date on which the final Tribunal order is uploaded by the Sr.PS/PS on official website 8. Date on which the file goes to the Bench Clerk alongwith Tribunal order 9 Date of killing off the disposed of files on the judisis Portal of ITAT by the Bench Clerks 10. Date on which the file goes to the Supervisor (Judicial) 11. The date on which the file goes to the Assistant Registrar for endorsement of the order 12. Date of Despatch of the order "