SH. PRITPAL SINGH AHLUWALIA,PHAGWARA vs. ITO, W-6(2), LUDHIANA

ITA 1584/CHANDI/2018Status: DisposedITAT Chandigarh10 June 2019AY 2010-114 pages

AI SummaryRemanded

What did the Tribunal hold?

The Tribunal found that the assessee had sufficient reason for not appearing before the Assessing Officer due to shifting to the USA. Therefore, the matter was restored to the Assessing Officer for a fresh decision to provide the assessee an opportunity to present their case.

What were the facts?

The assessee did not file a return of income, leading to an ex-parte assessment by the Assessing Officer. The assessee claimed to have shifted to the USA and not received notices, and sought to submit additional evidence. The CIT(A) rejected these contentions.

What were the issues?

Whether the assessee had sufficient reason for non-appearance before the AO and if additional evidence should be admitted.

Which sections of the Income-tax Act were involved?

Section 144

AI-generated summary — verify with the full judgment below

आदेश/Order

The present appeal has been preferred by the assessee against the order dated 14.09.2018 of the Commissioner of Income Tax (Appeals)- 3, Ludhiana [hereinafter referred to as ‘CIT(A)’].

The assessee in this case has taken following grounds of appeal:- That the Ld. CIT(A) has erred in law and facts of the 1. case, while upholding that there was valid service of notice by A.O. under the provisions of Income Tax Act, 1961 & Income Tax, Rules 1962, and thus, providing sufficient opportunity to substantiate his case.

That the Ld. CIT(A) has erred in law and facts of the case, while upholding the additions made by the A.O.,

ITA No. 1584-Chd-2018- Sh. Pritplal Singh Ahluwalia, Ludhiana 2 amounting to Rs. 6,85,026/- without admitting the additional evidence under Rule 46A of the Income Tax Rules, 1962.

That the appellant craves the right to add, amend or delete any grounds of appeal before it is finally disposed off.

No one has come present despite service of notice in this case,

hence, I proceed to decide the appeal ex-parte of the assessee after

hearing the Ld. DR.

In this case the assessee did not file the return of income. The

Assessing Officer noted from the TDS Certificate that the total income

of the assessee exceeded the limits prescribed for taxation of income.

Hence, he issued notice at the last known address of the assessee. No

one appeared on behalf of the assessee. The Assessing Officer,

therefore, framed the ex-parte assessment u/s 144 of the Act and made

the impugned additions into the income of the assessee.

Being aggrieved by the above additions, the assessee preferred

appeal before the Ld. CIT(A). It was pleaded before the Ld. CIT (A)

that in fact the assessee had shifted to a foreign country i.e USA on

permanent basis and because of that the assessee did not receive any

notice sent by the Assessing Officer. It was further pleaded that the total

income received by the assessee during the year was less than the

prescribed limit of Rs. 5 lacs and, therefore, the assessee was not

ITA No. 1584-Chd-2018- Sh. Pritplal Singh Ahluwalia, Ludhiana 3 exigible to the Income Tax for the year under consideration. The

assessee also sought to furnish certain additional evidences under Rule

46A of the I.T. Rules, 1962 in this respect. However, the Ld. CIT(A)

rejected the above contention of the assessee and held that since the

assessee had not filed the return of income, hence, the additional

evidences of the assessee could not be admitted. He, accordingly

sustained the additions made by the Assessing Officer.

I have also gone through the record. It has been categorically

written by the Ld. CIT(A) in the impugned order that the assessee had

shifted his base to USA and that is why he could not appear before the

Assessing Officer. Since the above contention has not been denied or

rebutted by the Revenue, in my view, there was sufficient reason with

the assessee for not appearing before the Assessing Officer as the

assessee did not receive any notice of hearing issued by the Assessing

Officer. In my view, the interest of justice will be well served if the

assessee is given an opportunity to present his case before the Assessing

Officer.

In view of this, the impugned order of the CIT(A) is hereby set

aside and the matter is restored to the file of the Assessing Officer for

decision afresh in accordance with law. Needless to say that the

Assessing Officer will give proper opportunity to the assessee to present

his case. At the same time, I also direct that the assessee will either

himself or through his Authorized Representative will promptly appear

ITA No. 1584-Chd-2018- Sh. Pritplal Singh Ahluwalia, Ludhiana 4 and furnish necessary details before the Assessing Officer as and when called for.

In the result, the appeal of the assessee is treated as allowed for statistical purposes. Order dictated and pronounced in the Open Court immediately on completion of hearing

Sd/- (संजय गग� / SANJAY GARG) �या�यक सद�य/ Judicial Member Dated : 10 .06.2019 “आर.के.” आदेश क� ��त�ल�प अ�े�षत/ Copy of the order forwarded to : 1. अपीलाथ�/ The Appellant 2. ��यथ�/ The Respondent 3. आयकर आयु�त/ CIT 4. आयकर आयु�त (अपील)/ The CIT(A) 5. �वभागीय ��त�न�ध, आयकर अपील�य आ�धकरण, च�डीगढ़/ DR, ITAT, CHANDIGARH 6. गाड� फाईल/ Guard File

आदेशानुसार/ By order, सहायक पंजीकार/ Assistant Registrar

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