RAJBIR SINGH SANGWAN,LUCKNOW V. ITO-6(1), LUCKNOW

ITA 376/LKW/2024

AI Insights

The case involves an appeal by Rajbir Singh Sangwan, represented through his legal heir Rohit Singh Sangwan, against the order of the Commissioner of Income Tax (Appeals) [CIT(A)] dated 19/04/2024. The original assessment was made by the Income Tax Officer under section 143(3) read with sections 143(3A) & 143(3B) of the Income Tax Act, which significantly increased the assessee's declared income. The CIT(A) upheld this assessment, leading to the current appeal. The appellant contested the CIT(A)'s decision on several grounds, including the lack of proper jurisdiction and failure to provide a reasonable opportunity of being heard, particularly noting the assessee's severe health condition during the COVID-19 pandemic and subsequent death. The Tribunal found merit in the appellant's arguments regarding the procedural inadequacies in the CIT(A)'s decision-making process and directed a re-evaluation of the case.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 43578 (ITAT-LUCKNOW)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-01-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: B
• Assessment Year: 2018-2019
• Laws Referred To: Income Tax Act
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: SANJEEV KRISHNA SHARMA
• Assessee Lawyers: SAMRAT CHANDRA
• Keywords: Set aside; Opportunity of being heard; Reason to believe
• Section: 143(3)

Judgement Text

"I.T.A. No.376/Lkw/2024 Assessment Year:2018-19 1 IN THE INCOME TAX APPELLATE TRIBUNAL LUCKNOW BENCH ‘B’, LUCKNOW BEFORE SHRI SUDHANSHU SRIVASTAVA, JUDICIAL MEMBER AND SHRI ANADEE NATH MISSHRA, ACCOUNTANT MEMBER I.T.A. No.376/Lkw/2024 Assessment Year: 2018-19 Rajbir Singh Sangwan, Through L/H Rohit Singh Sangwan, H.No.A1462, Sector-I, LDA Colony, Kanpur Road, Lucknow. PAN:AIAPS4396K Vs. Income Tax Officer-6(1), Lucknow. (Appellant) (Respondent) O R D E R PER ANADEE NATH MISSHRA:A.M. (A) The present appeal vide I.T.A. No.376/Lkw/2024 has been filed by the assessee against impugned order dated 19/04/2024 (DIN & Order No.ITBA/NFAC/S/250/2024-25/1064233400(1) of Commissioner of Income Tax (Appeals) [“CIT(A)” for short]. Grounds of appeal are as under: “1. Because on the facts and in the circumstances of the case the order of Ld. CIT(A) is bad in law and deserves to be quashed being illegal. Appellant by Shri Samrat Chandra, C.A. Respondent by Shri Sanjeev Krishna Sharma, Addl. CIT, (D.R.) Date of hearing 15/01/2025 Date of pronouncement 23/01/2025 I.T.A. No.376/Lkw/2024 Assessment Year:2018-19 2 2. Because on the facts and in the circumstances of the case the order of the Ld. CIT(A) is bad in law and being passed by the Ld. AO without assuming proper jurisdiction. 3. Because on the facts and in the circumstances of the case the order of the Ld. CIT(A) is bad in law and being passed by the Ld. AO without assuming proper jurisdiction. 4. Because on the facts and in the circumstances of the case the order of the Ld. CIT(A) as well as assessment order is bad in law being any finding that forms reason to believe that income has escaped assessment. 5. Because on the facts and in the circumstances of the case, the assessee was not well due to sever Covid conditions in the month of April, 2021 and subsequently expired on 06/05/2021. The Assessment Order was passed without providing adequate opportunity of being heard. 6. Because on the facts and in the circumstances of the case the Ld. CIT (A) has not considered that the assessment for A.Y. 2017-18 had already been completed u/s 143(3) of the Act passed by the Ld. Income Tax Officer, Lucknow wherein first time the claim of deduction u/s 80JJA was allowed to the assessee. Further during relevant Assessment Year no new claim u/s 80JJA was claimed by the assessee.” (B) In this case, assessment order dated 15/04/2021 was passed by the Assessing Officer under section 143(3) read with sections 143(3A) & 143(3B) of the I. T. Act whereby the income of the assessee was determined at Rs.1,09,89,981/- against the returned income of Rs.4,96,610/-. The assessee filed appeal in the office of learned CIT(A). Vide impugned appellate order dated 19/04/2024, the learned CIT(A) dismissed the assessee’s appeal. Aggrieved, the assessee has filed the present appeal in the Income Tax Appellate Tribunal. (C) At the time of hearing, the learned Authorized Representative for the assessee submitted that the learned CIT(A) has passed the ex-parte order qua the assessee without providing reasonable opportunity of being heard I.T.A. No.376/Lkw/2024 Assessment Year:2018-19 3 to the appellant assessee. He further submitted that the learned CIT(A) did not pass speaking order on merits on the various grounds of appeal. He further submitted that the issues in dispute should be restored back to the file of the learned CIT(A) with the direction to pass speaking order on merits on all the grounds of appeal after providing reasonable opportunity to the assessee. Learned D.R. for Revenue expressed no objection to this. We have heard the rival parties and have gone through the materials placed on record. We are of the considered view, in view of section 250(6) of the I. T. Act, that the learned CIT(A) has statutory duty to pass a speaking order on merits on the various grounds of appeal filed by the assessee. Having regard to the same, and in view of the submissions made by the Learned A. R. for the assessee, we set aside the impugned appellate order dated 19/04/2024 to the file of learned CIT(A) and we direct the learned CIT(A) to pass de novo order on merits in accordance with law after providing reasonable opportunity of being heard to the assessee. (E) In the result, the appeal of the assessee is partly allowed for statistical purposes. (Order pronounced in the open court on 23/01/2025) Sd/. Sd/. (SUDHANSHU SRIVASTAVA) (ANADEE NATH MISSHRA) Judicial Member Accountant Member Dated:23/01/2025 *Singh Copy of the order forwarded to : 1. Appellant 2. Respondent 3. Concerned CIT 4. CIT(A) 5. D.R. (ITAT) Assistant Registrar "