SH. SANJEET S/O SHRI DHARMBEER,REWADI vs. ITO, WARD 2(2), ALWAR

आयकर अपीलीय अधिकरण] जयपुर न्यायपीठ] जयपुर IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES,”SMC” JAIPUR Jh lanhi xkslkbZ] U;kf;d lnL; ,oa Jh jkBkSM+ deys'k t;arHkkbZ] ys[kk lnL; ds le{k BEFORE: HON’BLE SHRI SANDEEP GOSAIN, JM & HON’BLE SHRI RATHOD KAMLESH JAYANTBHAI, AM vk;dj vihy la-@ITA No. 483/JP/2023 fu/kZkj.k o"kZ@Assessment Year : 2010-11. cuke Shri Sanjeet Income Tax Officer, Vs. S/o Shri Dharambeer, Ward 2(2), H.No. 322, Babra Bakipur, Alwar. Tehsil – Farrukh Nagar, Gurugram (Haryana). LFkk;h ys[kk la-@thvkbZvkj la-@PAN/GIR No. CMFPS 3922 L vihykFkhZ@Appellant izR;FkhZ@Respondent fu/kZkfjrh dh vksj ls@ Assessee by : None jktLo dh vksj ls@ Revenue by : Shri A.S. Nehra, Addl. CIT lquokbZ dh rkjh[k@ Date of Hearing : 18/10/2023 mn?kks"k.kk dh rkjh[k@Date of Pronouncement: 30/10/2023 vkns'k@ ORDER PER: SANDEEP GOSAIN, J.M. This appeal by the assessee is directed against the order dated 23.05.2023 of ld. CIT (A), National Faceless Appeal Centre, Delhi passed under section 250 of the IT Act for the assessment year 2010-11. The assessee has raised the following grounds :-

1. The ld. CIT (A) has erred on facts and in law in deciding appeal on the basis of documents produced.

2. The ld. CIT (A) has erred on facts and in law in deciding the ground appeal on merits and thereby upholding the order of A.O.

3. The appellant craves to alter, amend and modify any ground of appeal.

The assessee has filed his return of income declaring total income of Rs. 1,83,000/- for the year under consideration. The AO issued letter dated 04.01.2017 to the assessee but no reply was filed by the assessee regarding the escapement of income of Rs. 3,00,000/- for the year under consideration. In view of this information proceedings under section 147 of the IT Act were initiated after recording reasons and taking approval of the ld. PCIT, Alwar. The assessee was issued notice under section 148 on 30.03.2017 which was duly served on the assessee. In response the assessee attended and submitted copy of ITR, copy of savings bank account, copy of registry of sale of agricultural land and also furnished written reply in support of his case which were examined by the AO. With reference to cash deposit of Rs. 10,00,000/-, the assessee submitted that this amount was deposited out of the amount of Rs. 15,00,000/- returned by Shri Joginder Singh to whom this amount was advanced for purchase of a land on 09.03.2009 but he returned the amount as the deal was not materialized and out of the returned amount, Rs. 10,00,000/- was deposited by the assessee in his bank account on 08.02.2010. For verification of this fact, the assessee has produced various documentary evidences. The AO considered the documents but found it not acceptable and accordingly made the addition of Rs. 15,00,000/- to the total income of the assessee as unexplained income of the assessee. On appeal, the ld. CIT (A) confirmed the assessment order by passing the ex-parte order. Aggrieved by the order of the ld. CIT (A), the assessee came in appeal before the Tribunal Jaipur. The Tribunal, after considering the circumstances of the case, set aside the ex-parte order of the ld. CIT (A) and restored the matter to the file of ld. CIT (A) for deciding afresh after affording opportunity to the assessee.

3.1 In second round of appellate proceedings, the ld. CIT (A) issued notices on 22.02.2021, 15.12.2021 and 12.03.2022 which were replied on 03.03.2021, 05.01.2022 and 21.03.2022. On the basis of submissions, further specific details were sought vide notice dated 20.07.2022 which was reminded on 29.07.2022 requiring the assessee to furnish copy of AO’s order, copy of Form No. 35, submissions of Mr. Joginder Singh provided during the assessment proceedings, Sale Deed copy of agricultural land sold by your grandfather and Will of grandfather. In response, the assessee submitted his reply on 05.08.2022 but the relevant documents sought by the ld. CIT (A) were not furnished. The ld. CIT (A) giving a final opportunity to the assessee, again issued notice dated 16.11.2022 requiring the assessee to furnish the documents as mentioned in notice dated 20.07.2022.

Reminders dated 30.11.2022, 21.12.2022 and 10.04.2023 were issued but not responded by the assessee. Notice dated 10.04.2023 issued by the ld.CIT (A) reads as under :-

“ In your case, multiple opportunities have been provided to submit the documents called vide notice dated 16.11.2022 with reminders dated 30.11.2022 & 21.12.2022. However, no reply has been submitted by you till date. Please note that any explanation without documentary evidences wherever required or sought is liable to be rejected. In view of the above, one final opportunity is being provided to make submissions vide notice dated 16.11.2022 on or before 25.04.2023, failure to which appeal proceedings may be completed based on verified documents available on record.”

Since the assessee could not produce the required documents in support of his explanation, the ld. CIT (A) dismissed the appeal of the assessee.

Aggrieved, now the assessee is again in appeal before us.

4. Before us none appeared on behalf of the assessee when the case was called for hearing. We have heard the ld. D/R, perused the material on record and gone through the orders of the lower authorities. On perusal of the records, we find that at the appellate proceedings the assessee was issued various notices/reminders dated 22.02.2021, 15.12.2021, 12.03.2022, 20.07.2022, 29.07.2022, 16.11.2022, 10.04.2023 requiring the assessee to submit the relevant documents in support of his submissions made, but the assessee has failed to comply with the said notices/reminders issued by ld. CIT (A). Accordingly, the ld. CIT (A) confirming the assessment order, dismissed the appeal of the assessee by observing in last para as under :-

“ As seen above, the assessee could not produce the relevant documents in support of his explanation to the ground of appeal and stopped replying to the noticed of the appeal proceedings. Hence, the explanation provided by assessee is not sustainable and the Ground is noted as dismissed.”

5. Since the impugned order of the ld. CIT (A) was passed ex parte by dismissing the appeal of the assessee on the ground of non submission of the relevant documents, therefore, in the totality of facts and circumstances of the case and in the interest of justice, we set aside the ex-parte order of the ld. CIT (A) and restore the matter back to the file of the AO for fresh adjudication after providing a reasonable opportunity of being heard to the assessee. The assessee is granted one more opportunity to represent his case before the A.O. and directed to file necessary documents/evidences as required by the AO. In case the assessee fails to appear before the AO, the AO may decide the appeal on the basis of the material available on record.

6. Before parting, we may make it clear that our decision to restore the matter back to the file of the AO shall in no way be construed as having any reflection or expression on the merits of the dispute, which shall be decided by the AO independently in accordance with law.

Order pronounced in the open court on 30/10/2023.

Sd/- Sd/- ¼lanhi xkslkbZ½ ¼ jkBkSM+ deys'k t;arHkkbZ ½ (RATHOD KAMLESH JAYANTBHAI) (SANDEEP GOSAIN) ys[kk lnL;@Accountant Member U;kf;d lnL;@Judicial Member Tk;iqj@Jaipur fnukad@Dated:- 30/10/2023. Das/ आदेश की प्रतिलिपि अग्रेf’ात@ब्वचल वf जीम वतकमत वितूंतकमक जवरू 1. vihykFkhZ@The Appellant- Shri Sanjeet, Gurugram. 2. izR;FkhZ@ The Respondent- The ITO Ward 2(2), Alwar. 3. vk;dj vk;qDr@ CIT 4. vk;dj vk;qDr@ CIT(A) 5. विभागीय प्रतिनिधि] आयकर अपीलीय अधिकरण] जयपुर@क्त्ए प्ज्Aज्ए Jंपचनत. 6. xkMZ QkbZy@ Guard File {ITA No. 483/JP/2023}