SANDEEP KHERA,LUDHIANA V. ITO WARD 2(3), LUDHIANA

ITA 752/CHANDI/2023

AI Insights

This case involves an appeal by the assessee, Sandeep Khera, against the order of the Ld. CIT(A)/NFAC, Delhi, which sustained an addition of Rs. 16,00,000 as income from unexplained sources under section 69/69A of the Income Tax Act, 1961. The addition was based on the purchase of 800 shares of M/s P.L. Khera Yarns Pvt. Ltd. at Rs. 200 per share during the Financial Year 2011-12. The Assessing Officer (AO) made this addition after the assessee failed to provide an explanation regarding the nature and source of the share purchase. The CIT(A) upheld this addition through an ex-parte order. The Tribunal, noting the absence of the assessee and any adjournment application, decided to set aside the matter to the CIT(A) for a fresh decision, emphasizing the need to provide a reasonable opportunity to the assessee.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 107805 (ITAT-CHANDIGARH)
• Duration Of Justice: 11 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-11-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: Not Allotted
• Next Hearing Date: 08-10-2024
• Assessment Year: 2011-2012
• Appeal Filed On: 02-12-2023
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RANJIT KAUR
• Keywords: Set aside
• Section: 148; 144; 69A

Judgement Text

"आयकर अपीलीय अिधकरण,च᭛डीगढ़ ᭠यायपीठ “एस.एम.सी” , च᭛डीगढ़ IN THE INCOME TAX APPELLATE TRIBUNAL, CHANDIGARH BENCHES, “SMC” CHANDIGARH ᮰ी िवᮓम ᳲसह यादव, लेखा सद᭭य BEFORE: SHRI. VIKRAM SINGH YADAV, AM आयकर अपील सं./ ITA No. 752/Chd/2023 िनधाᭅरण वषᭅ / Assessment Year : 2011-12 Sandeep Khera 41-Kckitchlu Nagar Ludhiana- 141001, Punjab बनाम The ITO Ward-2(3), Ludhiana ˕ायी लेखा सं./PAN NO: AKDPK5223C अपीलाथᱮ/Appellant ᮧ᭜यथᱮ/Respondent िनधाᭅᳯरती कᳱ ओर से/Assessee by : None राज᭭व कᳱ ओर से/ Revenue by : Shri Ranjit Kaur, Addl. CIT सुनवाई कᳱ तारीख/Date of Hearing : 08/10/2024 उदघोषणा कᳱ तारीख/Date of Pronouncement : 21/11/2024 आदेश/Order PER VIKRAM SINGH YADAV, AM: This is an appeal filed by the Assessee against the order of the Ld. CIT(A)/NFAC, Delhi dt. 06/10/2023 pertaining to Assessment Year 2011-12 wherein the sole ground relates to sustenance of addition of Rs. 16,00,000/- under section 69/ 69A of the Income Tax Act, 1961. 2. In this regard, briefly the facts of the case are that the AO was in receipt of the information that the assessee has purchased 800 shares of M/s P.L. Khera Yarns Pvt. Ltd. at the rate of Rs. 200/- per share and paid a consideration of Rs. 16,00,000/- during the Financial Year 2011-12 relevant to impugned Assessment Year. Thereafter, the reasons were recorded and notice under section 148 were issued to the assessee on 30/03/2018. Thereafter after issue of show cause under section 144 and in absence of any explanation submitted by the assessee explaining the nature and the source of purchase of shares, the AO went ahead and made the addition to the tune of Rs. 16,00,000/- as income from unexplained sources. 2 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. 4. During the course of hearing, none appeared on behalf of the assessee nor was any adjournment application filed and considering the fact of the case, it was decided that no useful purpose would be served in adjourning the matter any further. 5. 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, I believe that the assessee deserve one more opportunity to represent its case before the Ld. CIT(A) and accordingly, I hereby 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/- िवᮓम ᳲसह यादव (VIKRAM SINGH YADAV) लेखा सद᭭य / 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 "