SH. HAZURA SINGH,MOHALI vs. ITO, W-6(4), MOHALI
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आदेश/Order
PER A.D.JAIN, VICE PRESIDENT
The present appeal has been preferred by the assessee
against the order passed by the ld. Commissioner of
Income Tax (Appeals)-2, Chandigarh dated 04.11.2016
pertaining to 2010-11 assessment year.
The assessee has raised the following grounds of
appeal :
That the Impugned order is bad in law and contrary to the facts of the case. The Ld. Commissioner of Income Tax (Appeals) has not
ITA No.691/CHD/2018 A.Y. 2010-11 2 appreciated the facts and law in the correct manner and in accordance with the statute. 2. That the Ld. Commissioner of Income Tax (Appeals) gravely erred both, in law and facts in not giving sufficient opportunity of being heard to the assessee to contest and passed the order in hurry without considering the facts and papers available on records. 3. That the Ld. CIT (A) is not justified in upholding the addition made by the Ld. Assessing Officer of Rs. 1,03,69,102/- representing the alleged unexplained cash deposits/amount credited in the assessee's bank account.
None has put in appearance on behalf of the
assessee nor any written submissions etc. have been
filed. It is noticed that the matter can be decided on the
basis of the material on record, therefore, the appeal is
being decided on merits on the basis of the record
available after hearing ld. Sr.DR.
The assessee in this appeal has contested the action
of the ld.CIT(Appeals) in dismissing the appeal of the
assessee without affording sufficient opportunity of being
heard to the assessee to contest his case and passing the
order in a hurry without considering the facts and
documents available on record.
It is noticed by the Bench that the assessee went in
appeal before the ld. CIT(A) against the addition made by
the Assessing Officer amounting to Rs.1,03,69,102/- on
ITA No.691/CHD/2018 A.Y. 2010-11 3
account of the alleged unexplained cash
deposits/amount credited in his bank account with
Punjab National Bank, Kharar. The CIT(A) confirmed the
addition made by the Assessing Officer of
Rs.1,03,69,102/- as income of the assessee from
undisclosed sources stating that the assessee did not put
in appearance before the ld. CIT(A) inspite of several
notices issued to the assessee.
We have gone through the record. It is noticed that
notices issued by the ld. CIT(A) to the assessee on
04.08.2016 and 19.08.2016 were returned unserved by
postal authorities as the assessee was not found at the
given address. Notice dated 13.10.2016 fixing hearing for
26.10.2016 was sent through A.O., which was served on
the assessee, but there was no compliance.
It is seen that in the impugned order, the ld. CIT(A),
interalia, observed that from the assessment order, it
had been seen that the AO had given sufficient
opportunity to the assessee to explain the source of the
deposits in the bank account of the assessee; that the
AO had issued detailed Show Cause Notices on
13.01.2015 and 16.02.2015; that the assessee had
ITA No.691/CHD/2018 A.Y. 2010-11 4
submitted that cash deposits in the account with Punjab
National Bank, amounting to Rs.89,90,000/-, was out of
sale proceeds of land, received during the relevant
Financial Year; that however, on enquiries made by the
AO from the purchasers, it had been found that the
payment for the purchase of land had been made in the
next Financial Year and, it was, therefore, that the
claim of the assessee was found to be false; that this fact
was confronted to the assessee and the assessee was
called upon to explain the source of the other deposits in
the bank account, which the assessee had failed to
explain. It was on these observations that the ld. CIT(A)
held the AO to have rightly treated the entire deposits,
by cash and cheque, amounting to Rs.1,03,69,102/-, in
the bank account, as the assessee's income from
undisclosed sources.
In juxta-position with the above observations of the
ld. CIT(A), a perusal of the assessment order reveals that
therein, it has been mentioned, interalia, that
opportunity letter was written to the assessee on
16.02.2015; that information u/s 133(6) of the Income
Tax Act was also called for on 16.02.2015 from Shri
ITA No.691/CHD/2018 A.Y. 2010-11 5
Jernail Singh Bajwa (Director, M/s Bajwa Developers
Ltd., Sunny Enclave, Kharar to furnish the detail and
mode of payment to Shri Hazura Singh, assessee and his
sons, on account of sale consideration of land, as
mentioned in the Power of Attorney as well as in the
Registered Deed; that in compliance thereof, information
had been received from M/s Bajwa Developers Ltd.,
Sunny Enclave, Kharar, which revealed that all the
payments made to the assessee had been made in
Financial Year 2010-11 relevant to assessment year
2011-12; that last opportunity letter dated 20.03.2015
had been issued to the assessee for 25.03.2015, but on
25.03.2015, nobody attended the proceedings before the
AO; and that as such, the assessment was being
completed on the basis of the replies furnished by the
assessee during from the assessment proceedings.
From the above, we gather that the ld. CIT(A) has
observed that the response of the purchaser of the land
regarding payment for the purchase of land having been
made in the next Financial Year, falsifying the claim of
the assessee that the deposits were out of the sale
proceeds of the land, received during the year, was
ITA No.691/CHD/2018 A.Y. 2010-11 6
confronted to the assessee, but the assessee failed to
explain the same.
9.1 In contradistinction to the above observation of the
ld. CIT(A), from the assessment order, it is evincible that
the final letter had been issued to the assessee to
explain the stand taken by the purchaser of the land, but
none had attended the proceedings before the AO on
25.03.2015 in response to the letter issued to the
assessee. The assessment was completed on the basis of
the material available.
9.2 Thus, we do not subscribe to the view of the ld.
CIT(A) that the response of the purchaser of the land was
confronted to the assessee but the assessee failed to
explain the same. The assessment order makes mention
of the last opportunity letter dated 20.03.2015 having
been ‘issued’ to the assessee. There is, however, no
reference to the said letter having been served on the
assessee. Remarkably, the letter was issued for
25.03.2015 and the assessment order was passed on
26.03.2015.
The stand of the assessee has remained that he
ITA No.691/CHD/2018 A.Y. 2010-11 7
has been deprived of opportunity of hearing before the
authorities below. Ironically, even before us, the
assessee has not come present. However, we are of the
considered opinion that in the interest of justice, it is
appropriate that the assessee should be given due
opportunity to present his case. Accordingly, the matter is
sent back to the ld. CIT(A) to decide the appeal of the
assessee afresh expeditiously, on affording due and adequate
opportunity of hearing to the assessee. The assessee, no
doubt, shall cooperate in the fresh proceedings before the ld.
CIT(A).
In the result, the appeal of the assessee is treated as
allowed for statistical purposes.
Order pronounced on 16.02.2024.
Sd/- Sd/-
(VIKRAM SINGH YADAV) (A.D.JAIN ) ACCOUNTANT MEMBER VICE PRESIDENT “Poonam” आदेश क� ��त�ल�प अ�े�षत/ Copy of the order forwarded to : अपीलाथ�/ The Appellant 1. ��यथ�/ The Respondent 2. आयकरआयु�त/ CIT 3. �वभागीय ��त�न�ध, आयकर अपील�य आ�धकरण, च�डीगढ़/ DR, ITAT, CHANDIGARH 4. गाड�फाईल/ Guard File 5.
आदेशानुसार/ By order, सहायक पंजीकार/ Assistant Registrar
