ANIL SETH,DELHI vs. DCIT, CIRCLE-70(1), NEW DELHI

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ITA 1626/DEL/2022Status: DisposedITAT Delhi23 March 2023AY 2018-193 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal decided to remit the issue back to the file of the CIT(A) for a fresh decision. This includes considering the legal grounds raised for the first time and the merits of the case.

What were the facts?

The assessee's appeal challenges an assessment order, citing violations of the E-assessment Scheme and improper consideration of objections. The assessee also contested the confirmation of an addition by the CIT(A) on different grounds and the classification of a severance payment.

What were the issues?

Whether the assessment order was passed in violation of the E-assessment Scheme and whether the CIT(A) erred in confirming additions without proper notice and on grounds different from the AO.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 17(3)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH ‘A’ : NEW DELHI

For Appellant: Shri J.S. Kochar, CA
For Respondent: Shri Kanv Bali, Sr. DR
Hearing: 20.03.2023

(PAN : AHJPS6329L) (APPELLANT) (RESPONDENT) ASSESSEE BY : Shri J.S. Kochar, CA REVENUE BY : Shri Kanv Bali, Sr. DR Date of Hearing : 20.03.2023 Date of Order : 23.03.2023 ORDER

PER SHAMIM YAHYA, ACCOUNTANT MEMBER :

1.

This appeal by the assessee is directed against the order of National Faceless Appeal Centre (NFAC), Delhi dated 20.05.2022 pertaining to the Assessment Year 2018-19.

2. The grounds of appeal taken by the assessee read as under :-

“1. The assessment order is null and void and legally unsustainable, having been passed in gross violation of the provisions of E-assessment Scheme, 2019, as notified vide S.O. 3264(E) dated 12/09/2019 as: ./2022 (a) No oral hearing through video conferencing was afforded after the Assessee objected to proposed variations to the returned income in response to the second draft assessment order dated 10/03/2021, despite the specific request of the Assessee made for the same on 13/03/2021 and repeated on 15/03/202l.

(b) Assessee's objections to the second draft assessment order conveyed vide notice dated 10/03/2021, which were filed on 13/03/2021, were not even adverted to, much less considered, in the final assessment order dated 15/03/202l.

(c) Assessment order was passed even before the time of objecting to the draft assessment order had expired.

2.

The assessment order is bad in law as it does not even make a determination of the Total Income of the Assessee as required u/s 143(3) of the Income Tax Act, 1961.

3. The ld. CIT(A) erred in confirming the addition made by the AO on a ground different from the ground on which it was made by the AO, without putting the Assessee on notice and without affording an opportunity to him to make its submissions on the ground taken by CIT(A) to confirm the addition.

4.

The ld. CIT(A) erred in holding that an ex-gratia payment of Rs.94,26,110 received as 'Severance payment' by the Assessee from his employer, without there being any obligation on its part to pay the same, was covered under the provisions of Section 17(3) of the Income Tax Act, 1961, without specifying the specific clause of the sub section under which it was covered and contrary to the law laid down by the jurisdictional and other High Courts.

3.

At the outset, in this case, ld. Counsel of the assessee prayed that the first two grounds are legal grounds which were not taken before the authorities below. He further prayed that on merits also, assessee has the issue may be remitted back to the file of ld. CIT (A) to decide afresh including the legal grounds.

4. Having heard both the parties and perusing the records, we are inclined to remit the issue to the file of ld. CIT (A). Ld. CIT (A) is directed to decide the issue afresh including the legal grounds taken for the first time.

5.

In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the open court on this 23rd day of March, 2023.

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