What did the Tribunal hold?

The Tribunal held that the appeal was dismissed for non-representation and the order was not in line with the statutory spirit. In the interest of substantial justice, the issue was remanded back to the CIT(A) for a fresh decision after providing the assessee an opportunity to be heard.

The assessee received Rs 43,00,000 in her bank account from her husband. The Assessing Officer added this amount to her income, stating the withdrawals were not reflected in the husband's bank statement. The assessee claims she did not receive notices for the CIT(A) proceedings and remained unrepresented.

What were the issues?

Whether the assessee was denied a reasonable opportunity of being heard before the CIT(A) due to non-receipt of notices, and if so, whether the matter should be remanded for fresh adjudication.

Vandana Bhagat, Gurugram vs ITO | ITAT Delhi 2020

Income Tax Appellate Tribunal, DELHI BENCH ‘SMC’, NEW DLEHI

Before: SMT. DIVA SINGH

For Appellant: Mr. Vipul Gupta, Advocate

For Respondent: Ms. Rinku Singh, Sr. DR

Hearing: 05.02.2020Pronounced: 06.02.2020

ORDER The present appeal has been filed by the assessee, wherein correctness of the order dated 17.01.2018 of CIT(A)-4, New Delhi pertaining to 2013-14 assessment year is assailed on the following grounds:

“During the assessment year 2013-14, assessee received a sum of Rs 43,00,000/- in her bank account from her husband i.e. shri Hemant bhagat

2 The bank statement of her husband i.e. Indian overseas bank statement account number 143602000010253 was furnished during the scrutiny proceedings. But it was not taken into consideration.

It was mentioned by the Ld. lTO in her order on page no 4 that "It is also evident that credit entries in the bank account of Smt.Vandana Bhagat at the following dates are not appearing in the Bank account of Sh. Hemant Bhagat as withdrawals:-

DATE PARTICULARS AMOUNT(RS) 14.05.12 BANK 500000 26.05.12 BANK 300000 30.05.12 ADVANCE RECEIVED FOR 40 JCM (SUDESH DUA) 500000 12.10.12 BANK 30,00,000 TOTAL 43,00,000

This rs 43,00,000 had been added to the returned income.

However this amount was received from her husband , Shri Hemant bhagat vide his Indian overseas Bank account number- 143602000010253

During the First appellate proceedings at CIT (APPEALS), the bank account, ledger balance confirmation, pan card copy, copy of the ITR of her husband i.e. Shri Hemant bhagat were furnished However our case was made ex-parte because we could not appear before the HON'BLE CIT (Appeals) because we did not receive any notices.

PRAYER: It is most respect fully prayed that our case be remanded back to the Assessing officer so that the amount received by the 3 assessee from her husband to the tune of Rs 43,00,000/- gets verified or any other benefit which the TRIBUNAL deems fit.

The ld. AR, inviting attention to the impugned order, made statement that the assessee did not receive notice and consequently remained unrepresented before the ld. CIT(A). In the circumstances, it was his limited prayer that an opportunity of being heard to the assessee be given by remanding the issue to the file of ld. CIT(A). The ld. Sr. DR, on considering the material available on record, did not oppose the said prayer.

I have heard the submissions of both the parties and perused the material available on record. In the facts of the present case, admittedly, the appeal of the assessee is dismissed for non-representation. It is also seen that the order passed is not in terms of the statutory spirit as set out in sub-section (6) of section 250 of the Act. Accordingly, accepting the oral undertaking given by the ld. AR, it is considered appropriate in the interest of substantial justice that the issue should be remanded back to the file of ld. CIT(A) for deciding the same in accordance with law by way of speaking order after giving the assessee a reasonable opportunity of being heard. The assessee in its own interest is advised to make full and 4 proper representation and not to abuse the trust reposed. In the eventuality to abuse the trust reposed, the CIT(A) shall be at liberty to decide the issue on the basis of material available on record.

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

The order was pronounced in the open court.

VANDANA BHAGAT,GURUGRAM vs. ITO WARD- 11(4), NEW DELHI

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