VINITA CHAUDHARY,GURGAON vs. ITO, WARD -4(5), GURGAON

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ITA 418/DEL/2022Status: DisposedITAT Delhi08 February 2023AY 2011-124 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal found that there was no effective representation from the assessee before the Assessing Officer. Therefore, in the interest of natural justice, the case was restored to the Assessing Officer for fresh assessment after verifying the assessee's claim of gift.

What were the facts?

The Assessing Officer reopened the assessee's case based on information about cash deposits in her bank account. An ex-parte assessment order was passed, confirming additions for cash deposits and interest income, while providing partial relief on salary income.

What were the issues?

Whether the assessment order was passed without adequate opportunity to the assessee and without proper verification of the explanation for cash deposits.

Which sections of the Income-tax Act were involved?

Section 144,Section 147,Section 143(2),Section 148,Section 142(1)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH “SMC”: NEW DELHI

Before: SHRI KUL BHARAT

For Respondent: Ms. Maimun Alam, Sr. DR
Pronounced: 08.02.2023

O R D E R PER KUL BHARAT, JM:

This appeal, by the assessee, is directed against the order of the learned Commissioner of Income-tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi, dated 30.12.2021, pertaining to the assessment year 2011-12. The assessee has raised following grounds of appeal:

“1. That having regard to the facts and circumstances of the case, National Faceless Appeal Centre has erred in law and on facts in confirming to passing an ex-parte assessment order u/s 144/147 and that too without giving show cause notices as per law and without giving adequate opportunity to the assessee. 2. That having regard to the facts and circumstances of the case, National Faceless Appeal Centre has erred in law and on facts in confirming in framing impugned assessment order and that too without assuming jurisdiction as per law and without serving the mandatory notices u/s 143(2), 148 and 142(1) of the Income Tax Act, 1961.

3. That having regard to the facts and circumstances of the case, National Faceless Appeal Centre has erred in law and on facts in confirming addition of Rs. 10,85,000/- on account of cash deposits in bank account of assessee by treating it as alleged income without giving adequate opportunity of hearing and without granting the opportunity of cross examination of the entire material used against the assessee and without observing the principles of natural justice.

4. That in any case and in any view of the matter, action of National Faceless Appeal Centre in confirming Assessment Order under section 144 of income tax act by adding income of Rs. 8,582/-, on account of Interest Income , is bad in law and against the facts and circumstances of the case.

5. That having regard to the facts and circumstances of the case, National Faceless Appeal Centre has erred in law and on facts in confirming addition without specifying the Section or subsection under which addition is made in Assessment Order.

6. That the appellant craves the leave to add, modify, amend or delete any of the grounds of appeal at the time of hearing and all the above grounds are without prejudice to each other.”

2.

Facts giving rise to the present appeal are that the Assessing Officer was having information regarding cash deposit of Rs. 10,85,000/- in the assessee’s bank account maintained with Indian Overseas Bank. Therefore, the case of the assessee was reopened and the assessment u/s 147 read with Section 144 of the Income Tax Act, 1961, hereinafter referred to as the “Act” was framed vide order dated 18.12.2018. Thereby the Assessing Officer made addition of Rs. 10,85,000/- being cash deposited in the bank account; salary income of Rs. 4,15,897/-; and Rs. 8,582/-. Thus, assessed income at Rs.

15,09,479/-.

3.

Aggrieved against this, the assessee preferred appeal before the learned CIT(Appeals), who partly allowed the appeal. The learned CIT(Appeals) affirmed the addition regarding bank deposit and interest income. In respect of salary income part relief was given to the assessee. Aggrieved, the assessee is now in appeal before this Tribunal.

4.

Apropos to the grounds of appeal, learned counsel for the assessee submitted that the authorities below failed to appreciate the fact that the assessee had given a valid explanation regarding cash deposit in the bank account. The assessee has also filed affidavit in support of the claim of gift. He drew my attention to the evidence filed in the form of paper book.

5.

On the contrary, learned DR supported the orders of the authorities below.

6.

I have heard rival submissions and perused the material available on record.

It is seen that before the Assessing officer there was no effective representation on behalf of the assessee. Therefore, in the interest of natural justice, I deem it proper to set aside the orders of the authorities below and restore the assessment to the file of the Assessing Officer, who would verify the correctness of the claim of the assessee regarding gift received from her father and thereafter frame the assessment afresh. Grounds raised in this appeal are allowed for statistical purposes. 7. Appeal of the assessee is allowed for statistical purposes.

Order pronounced in open court on 08th February, 2023.

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