RAMESH ARORA HUF ,LUDHIANA V. ITO WARD 2(1), , LUDHIANA

ITA 702/CHANDI/2024

AI Insights

This case involves an appeal by Ramesh Arora HUF against the order of the Ld. CIT(A)/ NFAC, Delhi, which sustained an ex-parte assessment order by the AO. The AO had taxed a sum of Rs. 83,95,000 as unexplained income under section 69A of the Income Tax Act, due to the assessee's failure to disclose income from the sale of shares. The CIT(A) upheld the AO's decision due to non-prosecution by the assessee. The Tribunal, noting the absence of any findings on the merits and the non-cooperative conduct of the assessee, decided to set aside the matter to the CIT(A) for a fresh decision, emphasizing the need for the assessee to cooperate in the proceedings.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 107736 (ITAT-CHANDIGARH)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-01-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2013-2014
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AMANPREET KAUR
• Keywords: Set aside
• Section: 147; 69A

Judgement Text

"आयकर अपीलीय अिधकरण,चǷीगढ़ Ɋायपीठ “बी” , चǷीगढ़ IN THE INCOME TAX APPELLATE TRIBUNAL, CHANDIGARH BENCH “B”, 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. 702/Chd/2024 िनधाŊरण वषŊ / Assessment Year : 2013-14 Ramesh Arora HUF House No. 162-E, Kitchlu Nagar Ludhiana बनाम The ITO Ward 2(1), Ludhiana ˕ायी लेखा सं./PAN NO: AAIFR9873J अपीलाथŎ/Appellant ŮȑथŎ/Respondent िनधाŊįरती की ओर से/Assessee by : None(Adj. Application) राजˢ की ओर से/ Revenue by : Smt. Amanpreet Kaur, Addl. CIT, DR सुनवाई की तारीख/Date of Hearing : 20/01/2025 उदघोषणा की तारीख/Date of Pronouncement : 21/01/2025 आदेश/Order PER VIKRAM SINGH YADAV, A.M. : This is an appeal filed by the Assessee against the order of the Ld. CIT(A)/ NFAC, Delhi dt. 22/02/2024 pertaining to Assessment Year 2013-14. 2. Briefly the facts of the case are that the assessment was completed u/s 147 r.w.s 144 vide order dated 31/03/2022 wherein the AO brought to tax a sum of Rs. 83,95,000/- as unexplained income u/s 69A on account of failure of the assessee to disclose the income from sale of shares. Against the order of the AO, the assessee carried the matter in appeal before the Ld. CIT(A) who has since sustained the order of the AO on account of non-prosecution. 3. Against the said order, the assessee is in appeal before us. None has appeared on behalf of the assessee, however, an adjournment application has been filed by the ld Counsel, Mr Rajesh Mehru through email stating that he cannot attend to the proceedings due to some unavoidable reasons, however, no specifics in terms of circumstances which has prevented him from attending to the proceedings have been specified and therefore, we are constrained to reject such adjournment application as 2 lacking the necessary explanation for non-appearance. Further, given that the present appeal was filed way back in June 2024 against an ex-parte order passed by the Ld. CIT(A) and no finding has been recorded on merits of the case and even before the AO, no explanation has been furnished by the assessee resulting in passing of ex-parte assessment order, it was decided that no useful purpose would be served in adjourning the matter any further and after hearing the Ld. Sr DR who has not raised any specific objection where the matter is set aside to the file of the Ld. CIT(A) and keeping in view the principle of substantial justice, we believe that the assessee deserve one more opportunity to come forward and furnish necessary explanation and documentation, if any in support thereof. The matter is hereby set-aside to the file of the ld CIT(A) to decide the same afresh on merits as per law after providing reasonable opportunity to the assessee. 4. Needless to say, the assessee is hereby directed to attend to the appellate proceedings and to file requisite information/documentation as so directed and/or as advised, and in an event, where the conduct of the assessee remain non- cooperative/non-compliant, the ld CIT(A0 is at liberty to decide the matter as per law. 5. In the result, appeal of the Assessee is allowed for statistical purposes. Order pronounced in the open Court on 21/01/2025 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 "