SURESH KUMAR,HARYANA V. ITO, GURGAON

ITA 855/DEL/2024

AI Insights

The case involves an appeal by Suresh Kumar against the orders of the A.O. and the Commissioner of Income Tax Appeal/National Faceless Appeal Centre (NFAC), which were passed ex-parte. The A.O. had added Rs. 98,77,380 to the Assessee's income, considering it unexplained income under section 69A of the Income Tax Act, 1961, due to cash deposits from agricultural income. The Assessee contended that the orders were passed in violation of the principles of natural justice as the notices were not sent to the correct registered address, leading to a lack of opportunity to present clarifications or documents. The Departmental Representative argued that the Assessee failed to appear before the lower authorities. The ITAT found merit in the Assessee's claim of incorrect address leading to ex-parte orders and thus remanded the case for a fresh assessment.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 474863 (ITAT-DELHI)
• Duration Of Justice: 9 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-11-2024
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: G
• Next Hearing Date: 21-11-2024
• Assessment Year: 2017-2018
• Appeal Filed On: 23-02-2024
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: RAMESH CHAND
• Assessee Lawyers: SUMIT KHANNA
• Keywords: Opportunity of being heard; Principle of natural justice; Recovery proceedings
• Section: 69A

Judgement Text

" 1 ITA No. 855/Del/2024 Suresh Kumar Vs. ITO IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘G’: NEW DELHI BEFORE BEFORE SHRI YOGESH KUMAR U.S., JUDICIAL MEMBER AND SHRI AVDHESH KUMAR MISHRA, ACCOUNTANT MEMBER ITA No. 855/Del/2024, (A.Y.2017-18) Suresh Kumar Chhuchhakwas, Jhajjar, Matan Hail D, Haryana, Jhajjar, Haryana PAN No: CLHPK7908P Vs ITO Ward-4(3), Gurgaon, Haryana (Appellant) (Respondent) Appellant by Sh. Sumit Khanna, CA Respondent by Sh. Ramesh Chand, Sr. DR Date of Hearing 21/11/2024 Date of Pronouncement 26/11/2024 ORDER PER YOGESH KUMAR U.S., JM : This appeal is filed by the Assessee against the order of Ld. Commissioner of Income Tax Appeal/National Faceless Appeal Centre (’NFAC’ for short], dated 28/12/2023 for the Assessment Year 2017-18. 2. The grounds of appeal are as under:- “1. That the assessing officer has completed the assessment proceedings by making the addition of Rs. 98.77,380/- considering cash deposit from Agriculture 2 ITA No. 855/Del/2024 Suresh Kumar Vs. ITO Income as unexplained income under section 69A of the Income Tax Act. 1961. 2. That the assessing officer has completed the assessment proceedings against the principle of natural justice by not giving us reasonable opportunity to submit clarifications or documents and details required to clarify our contention.” 3. The Ld. Counsel for the Assessee submitted that both the order of the A.O. as well as the order of the Ld. CIT(A) are ex-parte, the authorities below not sent the notice to the registered address, which ultimately resulted in passing the orders impugned in violation of the principles of natural justice and the Assessee came to know about the passing of the impugned order only after the Department initiated recovery proceedings, therefore, sought for allowing the Appeal. 4. Per contra, the Ld. Departmental Representative submitted that the Assessee failed to appear before the A.O. as well as Ld. CIT(A), thus, relying on the order of the Lower Authorities sought for dismissal of the Appeal. 3 ITA No. 855/Del/2024 Suresh Kumar Vs. ITO 5. Heard. Both the Lower Authorities have passed ex-parte orders wherein the address of the Assessee has been mentioned as ‘To, Suresh Kumar 222 EWS Ridge Wood Estate DLF Phase 4, Near Orchid Squer, Gurgaon, 122002, Haryana, India” On the other hand, the Assessee contended that the proper address of the Assessee are as under:- “Chhuchhakwas, Jhajjar, Matan Hail D, Haryana Haryana 124106, 9810108931” 6. Considering the fact that both the authorities have passed ex- parte order and the Ld. CIT(A) has also not decided the issue involved in the Appeal on its merit we deem it fit to restore the matter to the file of the A.O. Accordingly, the matter is Remanded to the file of the A.O. with a direction to frame de-novo assessment after providing opportunity of being heard to the Assessee by serving the notice to the proper address of the Assessee. The 4 ITA No. 855/Del/2024 Suresh Kumar Vs. ITO Assessee is also directed to cooperate with the assessment proceedings, accordingly, the appeal of the Assessee is partly allowed for statistical purpose. Order pronounced in open Court on 26th November, 2024 Sd/- Sd/- (AVDHESH KUMAR MISHRA) (YOGESH KUMAR U.S.) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated: 26/11/2024 R.N, Sr. PS Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT, NEW DELHI 5 ITA No. 855/Del/2024 Suresh Kumar Vs. ITO "