REWARD IMPEX PVT. LTD.,NEW DELHI vs. ACIT, CIRCLE-19(1), NEW DELHI

IN THE INCOME TAX APPELLATE TRIBUNAL, DELHI BENCH: ‘F’ NEW DELHI

BEFORE SHRI G.S. PANNU, PRESIDENT AND SHRI SAKTIJIT DEY, JUDICIAL MEMBER

ITA No.3679/Del/2018 Assessment Year: 2011-12 ITA No.6800/Del/2018 Assessment Year: 2014-15

Reward Impex Pvt. Ltd., Vs. ACIT, Circle 19(1), G-29A, Single Storey, New Delhi. Vijay Nagar, New Delhi-1100 09

PAN :AAECR3939C (Appellant) (Respondent)

Appellant by Shri Goverdhan Das, Assessee in person Respondent by Shri Atiq Ahmed, Sr. DR Date of hearing 01.04.2022 Date of pronouncement 22.04.2022

ORDER PER SAKTIJIT DEY, JUDICIAL MEMBER: Captioned appeals have been filed by the assessee against two

separate orders of learned Commissioner of Income-Tax (Appeals),

New Delhi for the assessment years 2011-12 and 2014-15.

assessee company appeared and submitted that due to advanced

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age, he was unable to keep himself acquainted with the affairs of

the company. He submitted, the persons who were in charge,

including some family members, neglected the tax proceedings

conducted before the departmental authorities. He submitted, no

timely and proper representation was made before the

departmental authorities in course of these proceedings and he

was kept in dark. He submitted, as a result, not only the business

of the company has suffered but he himself is in a precarious

financial condition which does not even permit him to engage a

professional to appear before the Tribunal. Thus, he submitted,

proper opportunity may be granted to him to contest the

disallowances/additions made by the Assessing Officer, which are

subject matter of dispute in these appeals.

arising in appeals may be restored back to the Assessing Officer

for de novo adjudication so that the assessee gets proper

opportunity of hearing.

material available on record. On examining the record, we have

found that in assessment year 2011-12 in course of proceedings

before the Assessing Officer, proper compliance was not made to

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the queries raised by the Assessing Officer with regard to the cash

deposits of Rs.1,03,27,250 in the bank account. As a result, he

added back the amount by treating it as unexplained cash credit

under Section 68 of the Income-Tax Act, 1961. Similarly, in

absence of proper compliance, number of other

additions/disallowances were made, including, some

disallowance on purely ad hoc basis, which enhanced the income

to Rs.8,47,59,900 as against Rs.2,58,940 declared by the

assessee. Pertinently, there was no improvement in the status of

compliance even before learned Commissioner (Appeals), as, it is

very much clear from the impugned order of the learned

Commissioner (Appeals) that in absence of requisite details and

proper explanation, the additions made by the Assessing Officer

were confirmed.

loss of Rs.1,71,95,930 declared by the assessee a positive income

of Rs.82,25,512 was determined by the Assessing Officer. In this

assessment year also, Assessing Officer made couple of additions

amounting to Rs.85,88,758 and Rs.1,68,34,684 in absence of

proper compliance by the assessee. The position was worse before

learned Commissioner (Appeals), as, the appeal was decided ex

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parte due to non-compliance with the hearing notices. Thus, the

aforesaid facts, to certain extent, make the contention of the

assessee believable that proper steps were not taken before the

departmental authorities in course of tax proceedings. Since, on

perusal of record, we are convinced that the additions which are

subject matter of dispute in the present appeals were made

purely due to lack of proper compliance by the assessee and

considering the submissions of the representative appearing for

the assessee that he was kept in dark about the tax proceedings,

in the interest of fair play and justice, we deem it appropriate to

restore the issues arising in these appeals to the file of the

Assessing Officer for de novo adjudication after due and proper

opportunity of being heard to the assessee. The assessee is

directed to comply with the notices/queries to be issued by the

Assessing Officer and cooperate in finalizing the proceedings. Grounds are allowed for statistical purposes.

Order pronounced in the open court on 22nd April, 2022.

Sd/- Sd/- ( G.S. PANNU ) (SAKTIJIT DEY) PRESIDENT JUDICIAL MEMBER Dated: 22nd April, 2022. Mohan Lal

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