MANOJ SACHHAR,NEW DELHI vs. ITO WARD - 39(2), NEW DELHI

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ITA 7148/DEL/2019Status: DisposedITAT Delhi14 July 2021AY 2011-124 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal restored the issue to the file of the CIT(A) to grant one final opportunity to the assessee to present their case. The assessee is directed to appear without seeking adjournments.

What were the facts?

The assessee's case was reopened due to cash deposits in a savings bank account exceeding Rs. 10 lakhs without filing an Income Tax Return. The AO determined the total income at Rs. 1,80,000/-, which was sustained by the CIT(A) in an ex-parte order.

What were the issues?

Whether the CIT(A) order passed ex-parte should be set aside and the matter remanded for a fresh hearing to allow the assessee to present their case.

Which sections of the Income-tax Act were involved?

Section 148,Section 143(3)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH, ‘SMC-1’: NEW DELHI

Before: SHRI R.K. PANDA

Hearing: 14.07.2021Pronounced: 14.07.2021

ORDER This appeal filed by the assessee is directed against the order dated 21.06.2019 of the learned CIT(A)-13, New Delhi, relating to Assessment Year 2011-12.

2.

An adjournment application was filed by the assessee seeking adjournment of the case. However, considering the fact that the learned CIT(A) has passed the ex-parte order, the adjournment application was rejected and the appeal is being decided on the basis of material available on record after hearing the learned DR.

3.

Although a number of grounds have been raised by the assessee, these all relates to the ex-parte order of the learned CIT(A) in upholding the order of the AO determining the total income of the assessee at Rs.1,80,000/-.

4.

Facts of the case, in brief, are that the assessee is an individual and the case of the assessee was reopened u/s 148 of the Act on the ground that the assessee has entered into transaction of cash deposit in saving bank account more than Rs.10 lakhs during the year and has not filed his Income Tax Return. After considering the arguments of the assessee during the assessment proceedings, the AO completed the assessment u/s 143(3) of the Act determining the total income of the assessee at Rs.1,80,000/-.

5.

In appeal, the learned CIT(A) in her ex-parte order, sustained the addition made by the AO.

6.

Aggrieved with such order of the learned CIT(A), the assessee is in appeal, before the Tribunal.

7.

I have heard the learned DR and perused the record.

It is an admitted fact that due to non-appearance before the learned CIT(A) despite three statutory notices issued, the learned CIT(A) was constrained to pass ex-parte order and sustained the addition made by the AO. Considering the totality of the facts of the case and in the interest of justice, I deem it proper to restore the issue to the file of learned CIT(A) with a direction to grant one final opportunity to the assessee to substantiate his case and decide the issue as per fact and law. The assessee is also hereby directed to appear before the learned CIT(A) without seeking any adjournment under any pretext and explain his case, failing which the learned CIT(A) is at liberty to pass appropriate order as per law. I hold and direct accordingly. The grounds raised by the assessee are accordingly allowed for statistical purpose.

8.

In the result, appeal filed by the assessee is allowed for statistical purpose.

The order was pronounced in the open court at the time of hearing itself i.e. on 14.07.2021.

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