HAR PARKASH,NEW DELHI vs. ITO, WARD- 33(1), NEW DELHI

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ITA 7886/DEL/2018Status: DisposedITAT Delhi13 May 2019AY 2010-113 pages

In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal restored the issue to the Assessing Officer, directing him to grant one final opportunity to the assessee to substantiate their case. The assessee was also directed to appear before the AO to explain the cash deposits.

What were the facts?

The assessee's case was reopened under Section 147 due to AIR information, and an ex parte assessment was made under Section 144. The CIT(A) dismissed the assessee's appeal for non-prosecution.

What were the issues?

Whether the CIT(A) was justified in dismissing the appeal for non-prosecution without deciding on merits, and whether the assessee should be given a final opportunity to present their case.

Which sections of the Income-tax Act were involved?

Section 147,Section 148,Section 144

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH : SMC : NEW DELHI

Before: SHRI R.K. PANDA

For Appellant: Shri Pratap Gupta, CA
For Respondent: Shri S.L. Anuragi, Sr. DR
Hearing: 07.05.2019Pronounced: 13.05.2019

Assessment Year: 2010-11 Har Parkash, Vs. ITO, HP Travels Fuel Depot, Ward-33(1), Sector-6, RK Puram, New Delhi. New Delhi. PAN: AJDPP7308L (Appellant) (Respondent) Assessee by : Shri Pratap Gupta, CA Revenue by : Shri S.L. Anuragi, Sr. DR Date of Hearing : 07.05.2019 Date of Pronouncement : 13.05.2019 ORDER This appeal by the assessee is directed against the ex parte order dated 27th December, 2017 passed by the CIT(A)-11, New Delhi, relating to Assessment Year 2010-11.

2.

The assessee, in its various grounds, has challenged the ex parte order of the CIT(A) dismissing the appeal filed by the assessee and sustaining the various additions made by the Assessing Officer.

3.

Facts of the case, in brief, are that on the basis of AIR information, the case of the assessee was reopened u/s 147 of the Act and notice u/s 148 was issued. Since there was no compliance from the side of the assessee, the Assessing Officer completed the assessment u/s 144 of the Act determining the total income at Rs.13,36,040/- wherein he made addition of Rs.12,98,500/- being cash deposited by the assessee in his savings bank account maintained with Syndicate Bank and estimating the profit @ 8% of the contract receipt of Rs.4,69,226/-. Since none appeared on behalf of the assessee despite sufficient opportunities granted, the ld. CIT(A) in the ex parte order passed by her, dismissed the appeal for non-prosecution.

4.

Aggrieved with such order of the CIT(A), the assessee is in appeal before the Tribunal by raising various grounds.

5.

I have heard the rival arguments made by both the sides and perused the orders of the authorities below. It is the submission of the ld. counsel for the assessee that due to duplicate PAN Number the Assessing Officer has made addition which has been upheld by the CIT(A) in the ex parte order passed by her. It is an admitted fact that there was non-compliance before the Assessing Officer and CIT(A) for which both the authorities below have passed ex parte orders. However, it is also an admitted fact that the ld.CIT(A), instead of deciding the issue on merit, has dismissed the appeal for want of prosecution. 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 the Assessing Officer 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 Assessing Officer and substantiate the cash deposits in the bank account, failing which the Assessing Officer is at liberty to pass appropriate order as per law. I hold and direct accordingly. The grounds raised by the assessee are allowed for statistical purposes.

6.

In the result, the appeal filed by the assessee is allowed for statistical purposes. The decision was pronounced in the open court on 13.05.2019.

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