Loading judgment…
No AI summary yet for this case.
Income Tax Appellate Tribunal, DELHI
Before: SH. G.S.PANNU, HON’BLE & SH. ANUBHAV SHARMA
The appeal has come in appeal challenging the final assessment order dated 25.07.2022 passed by ACIT, Circle Int. Tax 1(1)(2), New Delhi (hereinafter referred to as the Ld. AO) u/s 143(3) r.w.s. 144C(13) of the Income Tax Act, 1961 (hereinafter referred to as the ‘Act’) for A.Y. 2019-20.
Heard and perused the record.
At the outset, Ld. AR submitted that apart from the grounds on merits assessee/ appellant has raised the ground no 1 to 3, that the Tax Authorities have failed to give due opportunity of hearing and on the contrary mentioned incorrect facts qua the conducted of the assessee.
It comes up from the matter on record and the submissions of ld. AR that assessee as the individual had filed return of income from house property and from other sources on 21.11.2019. The record shows initial notice u/s 143(2) was issued on 31.03.2021 however it was in September, 2021 the Ld. AO has taken up the proceedings. The draft order of ld. AO u/s 144C dated 28.09.2021 mentions that after notice u/s 143(2) on 31.03.2021, the reminder was issued on 03.09.2021 for which no reply was received. Thereafter notice was issued u/s 142(1) of the Act on 18.09.2021 for which also no reply was received. Thereafter, show cause notice was issued on 23.09.2021 and request was received for grant of extension till December, however no reply was submitted in response to the queries.
Ld. AR has specifically pointed out that in this final order dated 25.07.2022 Ld. AO mentions that till the date of that order no reply was received from the assessee and this is factually incorrect as he pointed out that the assessee had made specific request uploaded on 29.09.2021 available at page no. 49 of the paper book and with the same all evidences clarifying the issues was also submitted.
Ld. DR could not dispute the filing of submissions dated 29/09/21 of which acknowledgement no. 608192861300921 is on record. Same shows that assessee had given a complete account of the queries along with relevant attachments as evidences. In spite of this 29th November, 2021 material before the Ld. AO while passing the final order dated 25.07.2022 he mentions that no reply has been received from the assessee till the date of this order.
Then final assessment order dated 25.07.2022 has in its body reproduced the decision and directions of the DRP and when same are considered it becomes apparent that dealing with ground no. 2, 3 and 6, the DRP has made observations that there was no evidence before it. To which Ld. AR has pointed out that on PB 236 there is synopsis for each ground of appeal which was tabulated in application before DRP, duly marking annexures of Home Loan Interest Certificate & Home Loan Statement. Further finding as to non- filing of interest certificate is incorrect as certificate at PB 237 duly lists both principal & interest amounts. Given that interest amount is Rs. 4,30,520/- in joint names of Assessee and her husband, both were entitled to 50% claim each.
7.1 He further pointed that at PB 252, Contrary to DRP's finding, there is application dated 08.04.2022 (duly stamped as received) which was filed before DRP, for the specific purpose of admission of additional evidence. Reasons for filing additional evidence are given in detail, and the evidence itself is tabulated.
7.2 He next submitted that at PB 51 there are reason for difference in Income from Other Sources in return of income (Rs.7,71,699/) and Schedule TDS-2 of the said return (Rs. 1,60,65,410/-) by which assessee had been explained to AO himself vide submission dated 30.09.2021 (PB 51). Reconciliation of these amounts vis-à-vis Form 26-AS was also been given (PB.218). These were also filed before DRP (PB 236).
After taking into consideration the aforesaid the Bench is of firm view the Ld. Tax Authorities below have fallen in error in not appreciating the fact that due to certain Covid-19 protocols assessee was unable to participate and at the same time there was sufficient material on record to give a finding on the issues. Accordingly, the ground no. 1, 2 and 3 are allowed and appeal of assessee is allowed for statistical purposes. The issue on merits is restored to the files of ld. AO with direction to give afresh and reasonable opportunity of hearing to the assessee and thereupon decides the issue afresh.