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Income Tax Appellate Tribunal, DELHI BENCH: ‘SMC’ NEW DELHI
Before: SHRI H. S. SIDHU
ORDER This appeal is filed by the assessee against the Order dated 17.09.2018 passed by the Ld. CIT(A)-11, New Delhi relating to Assessment Year 2010-11 on the following grounds.
That the AO/ITO, Ward 33(1), New Delhi, has erred in facts and law, in framing the orders of assessment dated 29.11.2017 u/s. 147/144 of the Income Tax Act, 1961 assessing the total income at Rs. 14,90,000/-.
That the orders of assessment are bad in law. No independent reasons have been recorded as required u/s. 148 of Income Tax Act, 1961. That no notice u/s. 148 of Income Tax Act, 1961 was served upon the assessee within the period of limitation. 3. That no legal and valid sanction as required u/s. 151 of Income Tax Act, 1961 has been obtained before framing the orders u/s. 147/148 of Income Tax Act, 1961. That the orders of assessment are against the principles of natural justice because no show cause notice was issued before
framing the exparte orders of assessment u/s. 144 of the Income Tax Act, 1961 as best assessment order. 4. That the Ld. CIT(A) has further erred in confirming such illegal orders and unwarranted addition, hence, this appeal. 5. On the facts and in the circumstances the orders of assessment may be cancelled, the addition made of Rs. 14,90,000/- in the income may kindly be deleted.
2. At the time of hearing, Ld. Counsel for the assessee stated that AO has completed the assessment u/s. 147/144 of the Income Tax Act, 1961 (in short “Act”) vide order dated 29.11.2017 without providing sufficient opportunity to the assessee and without adopting prescribed procedure under the law. Similarly, the Ld. CIT(A) has also dismissed the appeal filed by the Assessee without considering the averments made by the assessee and without appreciating the evidences filed by the assessee. In support of his contention, he filed 02 Paper Books, one is having the copy of various decisions in assesee’s favour and another is containing pages 1-14 in which the assessee has attached the copy of bank certificate from Punjab National Bank, confirming the maturity of FDRs and credited in the account of Savita Choudhary, mother of the appellant; sale deed for sale of property made by Shrimati Savita Choudhary mother of the assessee for Rs. 785000/- amount received in cash; copy of bank account with Punjab National Bank of Savita Choudhary, mother of the assessee wherein the cash amounts were deposited and withdrawn; copy of bank account with Punjab National Bank of Akanksha Choudhary, appellant/assessee and copy of banking transactions in Savita Choudhary’s A/c and banking transactions in Akanksha Choudhary’s A/c, which were not available before the AO while passing the exparte order and are very essential for determination of the issue. Hence, he requested that the issue in dispute may be set aside to the file of the Assessing Officer to decide the same afresh, as per law, after giving adequate opportunity of being heard to the assessee with the liberty to file the evidences before the AO.
Ld. DR has not raised any objection on the request of the Ld. Counsel for the assessee.
I have heard both the parties and perused the orders of the revenue authorities. I find that AO has passed the assessment order u/s. 147/144 of the Income Tax Act, 1961 vide order dated 29.11.2017 without providing sufficient opportunity to the assessee. Similarly, the Ld. CIT(A) has also dismissed the appeal filed by the Assessee without considering the averments made by the assessee and without appreciating the evidences filed by the assessee. I find that assessee has filed 02 Paper Books, one is having the copy of various decisions in assesee’s favour and another is containing pages 1-14 which were not available with the Assessing Officer at the time of framing of the exparte orders, in which the assessee has attached the copy of bank certificate from Punjab National Bank, confirming the maturity of FDRs and credited in the account of Savita Choudhary, mother of the appellant; sale deed for sale of property made by Shrimati Savita Choudhary mother of the assessee for Rs. 785000/- amount received in cash; copy of bank account with Punjab National Bank of Savita Choudhary, mother of the assessee wherein the cash amounts were deposited and withdrawn; copy of bank account with Punjab National Bank of Akanksha Choudhary, appellant/assessee and copy of banking transactions in Savita Choudhary’s A/c and banking transactions in Akanksha Choudhary’s A/c. I find Assessee has certified while filing this Paper Book that these papers were not available with the Assessing Officer at the time of framing of the exparte order, which are very essential to adjudicate the issue in dispute. I am not commenting upon the merits of the case, because it will prejudice to the mind of the AO, but I am of the view that the aforesaid documentary evidences require thorough investigation at the level of the Assessing Officer on the issue in dispute. Therefore, in the interest of justice, the issues in dispute are set aside to the file of the Assessing Officer to decide the same, as per law, after giving adequate opportunity of being heard to the assessee and after considering the documentary evidences to be filed by the Assessee. Assessee is also directed through her counsel to fully cooperate with the Assessing Officer in the proceedings and did not take any unnecessary adjournment. However, she is at liberty to file any evidence before the AO to substantiate her case.
In the result, the appeal filed by the assessee stands allowed for statistical purposes.
Order pronounced on 11/11/2019.