SH. KARTIK BUDHIRAJA,FAZILKA vs. DCIT, CC-3, LUDHIANA

With the consent of both the parties, we shall take up appeal in ITA No. 526/Chd/2023 for the A.Y. 2015-16 as a lead case wherein the assessee has raised the following grounds:

That assessment framed by the Learned Assessing Officer is without juri iction and thus, null and void.

Briefly the facts of the case are that the assessee is an individual and belongs to M/s Vera Group of Muktsar. The assessee has not filed his original return of income for A.Y. 2015-16. A search and seizure operation u/s 132(1) was carried out at the residential / business premises of the assessee on 25/10/2018. During the course of search & seizure operation, various incriminating documents were found and seized. Thereafter, the case was centralized with DCIT, Central Circle-2, Ludhiana. Accordingly, notice under section 153A of the Act was issued to the assessee on 27/01/2020. Again, the case was transferred to DCIT, Central Circle-3, Ludhiana vide order u/s 127 of the Act bearing No. Pr. CIT(C)/Ldh/JB-II/Cent.52/2019-20/5971 dt. 27/01/2020. In response to the notice, the assessee filed its return of income on 06/03/2021 and declaring net taxable income of Rs. 2,16,780/-. Subsequently, notice under section 142 (1) dt. 09/02/2021 alongwith detailed questionnaire was issued and served upon the assessee electronically and also notice under section 1432(2) was issued and served upon the assessee on 09/03/2021. 4.1 During the course of search proceedings certain documents has been seized from the residence of the assessee at B-311, St. No.1, Basti Hazoor Singh, Fazilka which contains the details of investment made in immovable properties. From the perusal of the seized document, the AO found that the assessee has advanced cash loan amounting to Rs. 1,95,000/- to Shri Surinder Kumar and the assessee has not filed his return of income under section 139(1) of the Income Tax Act, 1961 for the A.Y. 2015-16. The show cause notice under section 142(1) was issued to the assessee asking why the amount of cash loan advanced amounting to Rs. 1,95,000/- should not be considered as his unexplained income

Against the said order, the assessee moved in appeal before the Ld. CIT(A) who has since sustained the said additions. During the course of hearing, the ld AR submitted that the order has been passed ex-parte qua the assessee and even on merits, no finding has been recorded by the ld CIT(A). It was submitted that during the course of appellate proceedings, the assessee did move adjournment application but the ld CIT(A) went ahead and decided the matter and dismissed the appeal on account of non-prosecution. It was submitted by the ld AR that the assessee may be provided one more opportunity of being heard and to file necessary submissions and the matter may accordingly be set-aside to the file of the ld CIT(A).

Per contra, the Ld. DR submitted that the assessee was issued several notices however there was neither any appearance nor any written submissions were filed and in view of the same, the matter has been decided by the ld CIT(A). It was submitted that where the Bench so decide, the Revenue has no objection where the matter is set-aside to the file of the ld CIT(A).

Heard the rival contentions and perused the material available on the record. Considering the facts and circumstances of the present case and the limited prayer for setting aside the impugned order to the file of the ld CIT(A) for deciding the same on merits, we deem it appropriate to set aside the matter to the file of the Ld. CIT(A) to decide the same afresh as per law after providing reasonable opportunity to the assessee.

Further, in respect of other two matters, as submitted by both the parties, the facts and circumstances of the case are identical to facts and circumstances of the case in ITA No. 526/CHD/2023 and the same are also set-aside to the file of the ld CIT(A) to decide the same afresh as per law after providing reasonable opportunity to the assessee.

In the result, all the appeals of the assessee are allowed for statistical purposes. Order pronounced in the open Court on 23/02/2024. आकाश दीप जैन िव"म "सह यादव (AAKASH DEEP JAIN) ( VIKRAM SINGH YADAV) उपा"य" / VICE PRESIDENT लेखा सद"य/ ACCOUNTANT MEMBER AG Date: 23/02/2024

""यथ"/ The Respondent 3. आयकर आयु"/ CIT 4. आयकर आयु" (अपील)/ The CIT(A) 5. िवभागीय "ितिनिध, आयकर अपीलीय आिधकरण, च"डीगढ़/ DR, ITAT, CHANDIGARH 6. गाड" फाईल/ Guard File