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Income Tax Appellate Tribunal, DELHI BENCH ‘A’ : NEW DELHI
PER SHAMIM YAHYA, ACCOUNTANT MEMBER :
This appeal by the assessee is directed against the order of the ld.
CIT (Appeals), Ghaziabad dated 30.04.2019 for the assessment year 2010-11.
The grounds of appeal taken by the assessee read as under :-
“1. The order passed by the A.O. is in bad in law and against the cannon of taxation. 2. The A.O. has ignored of law and interpreted wrongly.
The AO has not provided the opportunity to being heard.
That having regard to the facts and circumstances of the case, Ld. AO has erred in framing the impugned assessment since no notice u/s 143(2) was properly issued or served on the appellant.
That having regard to the facts and circumstances of the case, Ld. AO has erred in order u/s 143(3) r.w.s. 144 dt.12.12.2017 and is illegal since the alleged reasons recorded for issue of notice under section 148 of the Income Tax Act were never being served upon the assessee.
That having regard to the facts and circumstances of the case, Ld. AO has while making the assessment in hurry without applying the mind, erred in framing the impugned assessment and without looking to the matter and acknowledgement that the Captioned properly purchased is Agriculture Land and the investment in the said property was made out of the sale proceeds of another agriculture land in the name of the Assessee/ Gift Received from the Real Brother.
That having regard to the facts and circumstances of the case, Ld. CIT(A) has erred in law and on facts as CIT(A) has not passed the order on merits also and repeated due to non prosecution of appeal. Thus we were deprived from the opportunity of being heard.
That having regard to the facts and circumstances of the case, Ld. CIT(A) has erred in law by issuing ex-parte order without considering the facts of the case. Moreover the notice on email & speed post was sent to appellant's counsel. The Counsel had not attended the appellant proceedings. There is no fault of assessee. So Assessee should not be penalized due to negligency of counsel. The reliance is placed in the case of
That in any case and any view of the matter, action of Ld. and without giving adequate opportunity of hearing, by recording incorrect facts and findings and the same is not sustainable on various legal and factual grounds.”
under section 144 read with section 147 of the Income-tax Act, 1961 (for short 'the Act'), on the information that assessee has purchased immovable property of Rs.37,02,500/-. Since there was no response to the notice assessment was framed u/s 144 of the Act making the addition of a sum of Rs.37,02,500/- as unexplained income.
4. Upon assessee’s appeal, firstly ld. CIT (A) held that assessee was not interested in prosecuting the appeal. Thereafter, he held as under :-
“6.1 Ground nos. 1 to 3: The appellant has challenged the addition of Rs.37,02,500/- made by the AO being unexplained investment contending that the investment has been made by selling another agricultural land in the name of appellant/gift received from real brother. Further appellant has challenged the proceedings contending that no notice u/s 143(2) has been served upon the appellant making the order erroneous. Examination of facts reveal that based on AIR information proceedings u/s 148 were initiated as appellant has invested the property for a consideration much above the minimum taxable limit. During the course of appellate proceedings no evidence to substantiate the appellant's claim has been given. No ITR has been filed by the appellant in response to notice u/s 148 or 142(1) issued by the AO. Thus, there is no aberration in the action of the AO completing the assessment u/s 144 making the above said addition u/s 69. Accordingly these grounds of appeal are dismissed.”
5. Against this order, assessee is in appeal before us. We have heard ld. DR for the Revenue and perused the records. None appeared on behalf of the assessee despite several notices. dealt with this aspect. In our considered opinion, interest of justice could be served if this appeal is remanded to the file of ld. CIT (A). Ld. CIT(A) shall dispose of the same by a speaking order. Needless to add, assessee should be provided an opportunity of being heard. 7. In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the open court on this 21st day of November, 2022.