Shri Naresh Kumar, Haryana vs ITO | ITAT Delhi 2017

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

Before: SHRI H. S. SIDHU

ORDER This appeal is filed by assessee against the Order dated 30.3.2015 passed by the Ld.CIT(A), Rohtak relating to Assessment Year 2007-08 on the following grounds:-

That the appellant humbly reiterates for your benign and worthy consideration all the facts and grounds of appeal

made before the Ld. First Appellate Authority.

2. That the assessment order is not just and fair under the circumstances. That there exists no adequate and valid justification for addition on account of cash deposits in bank account in the appellant’s income. That facts as apparent from documents submitted and submission have not been accorded due to weight as warranted under the law. That the AO has made addition is a haste manner. That CIT(A) has not given due weight to the assessee’s witnesses produced before AO. 3. That the Ld. CIT(A) should not have considered the finding of fact given by the AO blindly. That the CIT(A) should have gone through the appellant’s witnesses statements and documents supporting their version. That the AO has not assessed the real income of the appellant. 4. That the CIT(A) committed error in law and fact in disallowing the grounds of appeal in respect of the cash deposits. That the AO and Ld. CIT(A) has not allowed the credit of following cash receipts (duly supported) by the appellant witnesses statements.

5. That Ld. CIT(A) has only ground to reject to appellant’s explanation that no cohesive evidences to show that his witnesses has produced any receipts etc. That it is neither a convention nor a practice to issue receipts for financial transactions taken between persons in a rural area.

6. That the CIT(A) has committed a mistake by not considering ground on transfer of the proceedings from Rewari to Narnaul. That the assessment proceedings were transferred without an opportunity to the appellant. That transfer order dated 4.2.2013 had been with effect from 31st Jan 2013. No order can confer the jurisdiction upon a authority from earlier than order date. That even otherwise the transfer order is a invalid order. That it does not passed the test for valid assessment transfer order.

7. That it is well known and standard practice of Income Tax Department (supported by CBDT circulars) the Department officers are not supposed to act as Executive or Judicial Official only but to act as both. That they are supposed to help and inform the taxpayer about their rights and liabilities well within in advance. They should not take disadvantages of the assessee’s ignorance of the law.

That justice should not only be done but appears to have been done manifestly and undoubtedly. The Hon’ble S.C. says that the taxing authorities should not act in a manner indicate that the scales of justice are weighted against the assessee. The appellant craves for permission to add, delete or amend the grounds of appeal beore or at the time of hearing of appeal. Under the circumstances it is prayed that the appeal may be allowed and / or any other relief as Hon’ble Tribunal may think fit.

2. Facts narrated by the revenue authorities are not disputed by both the parties, hence, the same are not repeated here for the sake of brevity.

3. During the course of hearing, Ld. Counsel of the assessee has stated that Ld. CIT(A) in Appeal has not considered and adjudicated the ground no. 1 to 6 mentioned in Form No. 35 which was filed before him, which goes to the root of the matter and are very essential to adjudicate before going to merit of the case. In view of the above, he requested that the issues involved in the present appeal may be set aside to file of the Ld. CIT(A) to decide the same afresh, under the law, after adjudicating the following grounds which were earlier raised before the Ld. CIT(A) attached with the Form No. 35 and give adequate opportunity of being heard to the assessee to substantiate his case.

“1. That the Assessment Order is bad in law in view of the particular facts and circumstances of the case. That the order passed by the AO without jurisdiction. It is a null and void assessment under the Act.

2. That the transfer of the appellant income tax proceedings from ITO Ward No.2, Rewari to ITO Ward No. 1 Narnaul by JCIT, Rewari is void. That JCIT has no power to transfer case from AO Rewari to another AO, Narnaul under the Act .

3. That on the transfer of case from ITO Ward No.2, Rewari to ITO / Ward No 1, Narnaul, neither the successor ITO nor the JCIT Rewari office 1 never issued a communication regarding transfer of Assessment Proceedings. 4. That JCIT Rewari office never issued a communication to appellant affording him a opportunity to raise objection transfer of the case under the provisions of the Act. 5. That the appellant has object to the Jurisdiction of the ITO Ward No 1, Narnaul. That AO, Ward No 1, Narnaul instead of- referring the matter /1 to Senior Officers as per provisions of Income Tax Act, 1961, he sit over the matter and decided the matter in his own favour. 6. That AO has acted in a hurried manner. That it appeared from the acts and conduct of AO and JCIT that it was planned transfer of appellant assessment proceedings. That JCIT passed transfer orders of assessment proceedings on 4/2/2013 late hours. That AO issued notices on 6/2/2013 regarding assessment without mentioning how he has been vested with jurisdiction. That even otherwise AO has not transferred its assessment record till date to ITO Ward No 2 Rewari even when AO jurisdiction lapsed on 31/03/2013 over the assessee.” 4. On the contrary, Ld. DR opposed the request of the Ld. Counsel of the assessee and relied upon the orders of the authorities below.

I have heard both the parties and perused the records. I have gone through the order passed by the revenue authorities especially the impugned order as well the contention raised by the Ld. Counsel of the assessee. I find considerable cogency in the assessee’s counsel contention that Ld. CIT(A) has decided the appeal on merit without adjudicating the grounds no. 1 to 6 as attached with Form No. 35 while filing the Appeal before him, which goes to the root of the matter and are very essential to adjudicate.

6. Keeping in view of the facts and circumstances of the case, I am of the view that Ld.CIT(A) should decide the following Grounds No. 1 to 6 as filed before him. Accordingly, the matter is set aside and restored back to the file of the Ld.CIT(A) to consider the same afresh after giving adequate opportunity of being heard to the assessee to substantiate his case.

That the transfer of the appellant income tax proceedings from ITO Ward No.2, Rewari to ITO Ward No. 1 Narnaul by JCIT, Rewari is void. That JCIT has no power to transfer case from AO Rewari to another AO, Narnaul under the Act .

That on the transfer of case from ITO Ward No.2, Rewari to ITO / Ward No 1, Narnaul, neither the successor ITO nor the JCIT Rewari office 1 never issued a communication regarding transfer of Assessment Proceedings.

That JCIT Rewari office never issued a communication to appellant affording him a opportunity to raise objection transfer of the case under the provisions of the Act.

5. That the appellant has object to the Jurisdiction of the ITO Ward No 1, Narnaul. That AO, Ward No 1, Narnaul instead of- referring the matter /1 to Senior Officers as per provisions of Income Tax Act, 1961, he sit over the matter and decided the matter in his own favour.

That AO has acted in a hurried manner. That it appeared from the acts and conduct of AO and JCIT that it was planned transfer of appellant assessment proceedings. That JCIT passed transfer orders of assessment proceedings on 4/2/2013 late hours. That AO issued notices on 6/2/2013 regarding assessment without mentioning how he has been vested with jurisdiction. That even otherwise AO has not transferred its assessment record till date to ITO Ward No 2 Rewari even when AO jurisdiction lapsed on 31/03/2013 over the assessee.”

In the result, the appeal filed by the assessee stands allowed for statistical purposes.

SHRI NARESH KUMAR,HARYANA vs. ITO, REWARI