RAJ KUMAR YADAV,DELHI vs. ITO WARD-34(2), DELHI

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ITA 8107/DEL/2019Status: DisposedITAT Delhi14 July 2022AY 2016-173 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal held that the CIT(A) was not justified in disposing of the appeal ex-parte without granting reasonable time for adjournment. The impugned order was set aside, and the matter was restored to the CIT(A) for fresh adjudication.

What were the facts?

The assessee's appeal before the CIT(A) was disposed of ex-parte. The CIT(A) rejected the assessee's request for adjournment on the second date of hearing, despite the assessee needing time to gather documents to explain bank deposits added back by the AO.

What were the issues?

Whether the CIT(A) erred in disposing of the appeal ex-parte without granting a reasonable adjournment to the assessee to produce necessary documents.

AI-generated summary — verify with the full judgment below

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

Before: SHRI SAKTIJIT DEY & DR. B.R.R. KUMAR

For Appellant: CA &
For Respondent: Ms. Indu Sen, Sr. DR
Hearing: 29.06.2022Pronounced: 14.07.2022

Appellant by Sh. Naman Gupta, CA & Sh. Ravi Gupta, CA Respondent by Ms. Indu Sen, Sr. DR Date of hearing 29.06.2022 Date of pronouncement 14.07.2022 ORDER PER SAKTIJIT DEY, JM:

This is an appeal by the assessee against order dated 30.08.2019 of learned Commissioner of Income Tax (Appeals)-12, Delhi, for the assessment year 2016-17.

2.

We have heard Sh. Naman Gupta, learned counsel for the assessee and Ms. Indu Sen, learned Departmental Representative.

3.

The primary grievance of the assessee is against ex-parte disposal of his appeal by learned first appellate authority. On perusal of impugned order of learned Commissioner (Appeals), it is observed, learned Commissioner (Appeals) disposed of assessee’s appeal ex-parte alleging that the assessee is either seeking adjournment or not appearing. However, a careful reading of the order of learned Commissioner (Appeals) reveals that for the first time the appeal was fixed for hearing on 16.07.2019, on which date, as alleged by learned Commission (Appeals), there was no compliance by the assessee. Thereafter, the case was again fixed on 27.08.2019. On the said date of hearing, the assessee sought adjournment due to want of certain documents. However, learned Commission (Appeals), rejecting assessee’s request, proceeded to dispose of the appeal ex-parte.

4.

Thus, from the aforesaid facts, it is evident, only on the second date of hearing the appeal was disposed of by learned Commissioner (Appeals) rejecting request for adjournment. As could be seen from the facts on record, while completing the assessment, the Assessing Officer has added back an amount of Rs.52,52,000/- representing deposits made in some bank accounts. Therefore, the assessee is required to explain the source of the deposits made in the bank account through supporting evidence. For doing so, if the assessee required reasonable time, it should have been granted by the first appellate authority.

Therefore, in our view, learned Commissioner (Appeals) was not justified in proceeding to dispose of the appeal ex-parte.

Accordingly, we set aside the impugned order of learned Commissioner (Appeals) and restore the matter back to him for de novo adjudication. Grounds are allowed for statistical purposes.

5.

In the result, the appeal is allowed for statistical purposes.

Order pronounced in the open court on 14th July, 2022

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