RUJAY H.P. COMPLEX ,PANCHKULA SAHA MARG SHEHZADPUR V. INCOME TAX OFFICER WARD 3, ITO WARD AMBALA

ITA 803/CHANDI/2023

AI Insights

This case involves an appeal by the assessee, Rujay H.P. Complex, against the order of the Ld. CIT(A)/NFAC, Delhi, which pertained to the Assessment Year 2017-18. The primary issue in the appeal was the addition of Rs. 17,74,323 to the assessee's income, which was classified as income from undisclosed sources under Section 69A of the Income Tax Act. The addition was initially made following scrutiny of the assessee's return, which revealed large cash deposits during the demonetization period and significant square-up loans. The assessee's submissions were not accepted, leading to the addition. The CIT(A) sustained this addition through an ex-parte order, prompting the appeal to the Tribunal. The Tribunal noted the absence of representation for the assessee during the hearing and decided to remand the case back to the CIT(A) for a fresh decision, providing the assessee another opportunity to present their case.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 107738 (ITAT-CHANDIGARH)
• Duration Of Justice: 11 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-11-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 01-10-2024
• Assessment Year: 2017-2018
• Appeal Filed On: 18-12-2023
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RANJIT KAUR
• Keywords: Set aside; Income from undisclosed sources
• Section: 142(1); 143(2); 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. 803/Chd/2023 िनधाŊरण वषŊ / Assessment Year : 2017-18 Rujay H.P. Complex Village Bhapoli, Ambala-134003 Haryana बनाम The ITO Ward-3, Ambala ˕ायी लेखा सं./PAN NO: AATFR4366F अपीलाथŎ/Appellant ŮȑथŎ/Respondent िनधाŊįरती की ओर से/Assessee by : None (Adjournment Application) राजˢ की ओर से/ Revenue by : Dr. Ranjit Kaur, Addl. CIT, Sr. DR सुनवाई की तारीख/Date of Hearing : 01/10/2024 उदघोषणा की तारीख/Date of Pronouncement : 21/11/2024 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. 03/11/2023 pertaining to Assessment Year 2017-18, wherein sole ground of appeal relates to addition of Rs. 17,74,323/- by invoking the provisions of Section 69A of the Act. 2. Briefly the facts of the case are that the return of income was filed by the Assessee on 31/10/2017 thereafter the case of the assessee was selected for scrutiny to verify large value of cash deposited during the Demonetization period and large square up loans during the year. Thereafter notice under section 143(2) and 142(1) were issued calling for the information / explanation from the assessee. However, not finding the submissions so made by the assessee as acceptable, amount of Rs. 17,74,323/- was brought to tax as income from undisclosed sources under section 69A of the Act. 3. Being aggrieved, the assessee carried the matter in appeal before the Ld. CIT(A) who has since sustained the said addition by passing an ex-parte order and against the said order, the assessee is in appeal before us. 2 4. During the course of hearing, none appeared on behalf of the assessee nor was any adjournment application filed and considering the facts of the case, it was decided that no useful purpose would be served in adjourning the matter any further. 5. We have heard the ld DR and purused the material available on record. Considering the facts and circumstances of the case, where the impugned order has been passed ex-parte qua the assessee and there is no finding on the merits of the case, we believe that the assessee deserve one more opportunity to represent its case before the Ld. CIT(A) and accordingly, we set aside the matter to the file of the Ld. CIT(A) to decide the same afresh as per law after providing reasonable opportunity to the assessee. 6. In the result, appeal of the assessee is allowed for statistical purposes. Order pronounced in the open Court on 21/11/2024. 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. िवभागीय ᮧितिनिध, आयकर अपीलीय आिधकरण, च᭛डीगढ़/ DR, ITAT, CHANDIGARH 5. गाडᭅ फाईल/ Guard File आदेशानुसार/ By order, सहायक पंजीकार/ Assistant Registrar "