GURJEET SINGH,U.S. NAGAR vs. ITO, NEW DELHI

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ITA 4723/DEL/2015Status: DisposedITAT Delhi23 September 2016AY 2008-093 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal held that the assessee should not suffer due to the fault of his counsel and set aside the impugned order. The issue was restored to the file of the CIT(A) with a direction to grant reasonable time to the assessee to appear.

What were the facts?

The assessee's income was subjected to scrutiny, and cash deposits of Rs. 22,21,100/- were added to his income under Section 144 due to non-appearance. The assessee argued he was deprived of an opportunity to be heard due to his counsel's non-appearance and the assessment being conducted in Delhi instead of Uttarakhand.

What were the issues?

Whether the assessment order passed under Section 144 is vitiated due to denial of proper opportunity of being heard to the assessee, and whether the assessee should be prejudiced by the non-appearance of his counsel.

Which sections of the Income-tax Act were involved?

Section 144

AI-generated summary — verify with the full judgment below

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

Before: SMT DIVA SINGH

For Respondent: Ms. Anima Baranwal, Sr.DR
Hearing: 03.08.2016Pronounced: 23.09.2016

ORDER The present appeal has been filed by the assessee assailing the correctness of the order dated 26.02.2015 of CIT(A)-12, New Delhi pertaining to 2008-09 assessment year. Although various grounds have been raised by the assessee in the present appeal however the assessee appearing in person only addressed Ground No. 2. The same reads as under:-

2. “That the Ld.CIT(A) has erred both in law and on facts in confirming the impugned assessment without granting any valid and proper opportunity of being heard to the appellant and therefore, the same is contrary to the principles of natural justice and so as such even otherwise order so made is entirely vitiated.”

2.

Addressing the order passed u/s 144 by the AO which was assailed before the CIT(A). It was submitted that the assessee had submitted that he is residing in Uttarakhand and though had engaged a counsel despite that he remained

I.T.A .No.-4723/Del/2015 unrepresented and deprived of opportunity to place evidences in support of the additions assailed. It was submitted that by the time the notice was received the time available to contact the counsel was not there. The assessment made in Delhi as opposed in Uttarakhand it was argued by the Ld. Sr. DR was a result of PAN application by the assessee in Delhi and if he wants to be assessed at in Uttarakhand then it is for the assessee to carry out the a necessary steps. Reference was made to para 8.5 of the impugned order. As far as the lack of proper representation before the CIT(A) is concerned the Ld.Sr.DR did not oppose the request of lack of opportunity in the face of the arguments advanced.

3.

A perusal of the record shows that that the assessee returned an income of Rs.1,13,020/-. The said return was subjected to scrutiny. The assessee’s source of income was shown as Rs.60,000/- under the head business and profession from M/s Khinda Tractors on account of remuneration interest and Rs.1,25,000/- under the head income from other sources. Considering the deposits which were picked up by the AIR details, the assessee was required to explain the cash deposits of Rs.22,21,100/-.

Considering that despite issuance of notice, no one was present, the said amount was added to the income of the assessee by an order u/s 144. Before the CIT(A), the assessee was represented by a counsel Sh. S.K.Anand, CA who initially sought time on health reasons etc. thereafter he did not appear. Various notices were sent to the assessee which remained uncomplied with. In the said background, considering the submission of the parties before the Bench and being of the view that an assessee should not suffer on account of the fault of the counsel, it is considered appropriate to set aside the impugned order and restore the issue back to the file of the CIT(A)

I.T.A .No.-4723/Del/2015 directing the said Authority to give a reasonable time to the assessee to appear or cause an appearance in response to the date of hearing being fixed. It is hoped that the opportunity so provided is not abused by the assessee as failing which the CIT(A) would be at liberty to pass a speaking order in accordance with law after giving the assessee a reasonable opportunity of being heard.

4.

In the result, the appeal of the assessee is allowed for statistical purposes. The order is pronounced in the open court on 23rd September, 2016.

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