SH. SUBASH CHANDER SEHGAL,MOGA vs. INCOME TAX OFFICER WARD -2, MOGA

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ITA 74/ASR/2019Status: DisposedITAT Amritsar17 August 2023AY 2008-094 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal held that the CIT(A) erred by rejecting additional evidence without justification and by not adhering to the principles of natural justice. The case was remanded for fresh consideration.

What were the facts?

The assessee challenged the CIT(A)'s rejection of appeals without considering submissions. The CIT(A) rejected additional evidence under Rule 46A without proper reasons and did not issue a show cause notice.

What were the issues?

Whether the CIT(A) properly considered the assessee's submissions and additional evidence, and whether natural justice was followed.

Which sections of the Income-tax Act were involved?

Section 68

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, AMRITSAR BENCH, AMRITSAR

Before: DR. M. L. MEENA & SH. ANIKESH BANERJEE

Hearing: 02.08.2023Pronounced: 17.08.2023

These appeals have been filed by the by the assessee against the order of the ld. Commissioner of Income Tax (Appeals)-3, Ludhiana even dated 05.11.2018 in respect of Assessment Years: 2008-09 to 2010-11 wherein the appellant has challenged that the ld. CIT(A) has summarily the written submissions filed by the appellant assessee.

2.

None appeared nor any adjournment application has been filed by the assessee. Considering written synopsis of 12 pages and the paper book comprising of 72 pages filed on record on 20th April, 2023, it noted that the grievance of the assessee has been overlooked by the CIT(A) by not taking cognizance of the submissions of the appellant assessee and rejected its appeal in summary manner by passing the order ex-parte qua the assessee. However, it is decided to hear the ld. DR and adjudicate the appeal on merits of the case.

3.

From the record, it is seen that the assessee has made investment in property on different dates out of the cash as claimed being available with the appellants on the date of investment in disputed properties. However, the appellant assessee contended that the AO and the ld. CIT(A) has rejected the submission and documentary evidences filed by the appellant on the availability of cash in hand as opening balance and investment in properties and cash credits in bank account u/s 68 of the I. T. Act without granting proper opportunity of being heard to the appellant and ignoring the facts available on record and the information and documentary evidences additional evidence under Rule 46A was rejected in violation of the provisions of law.

4.

Having heard the ld. DR and perusal of the impugned order, it is revealed that the ld. CIT(A) has rejected the assessee’s explanation and application filed under Rule 46A for admission of additional evidence merely stating as deserved to be rejected without giving any reason for rejection of the additional evidence in view of the provisions of Rule 46A of the ITAT Rule 1963. In our view, the ld. CIT(A) ought to have rebutted the admission of additional evidence being not covered under the four exceptions provided under Rule 46A of the ITAT Rule 1963 for non- admission of the additional evidence filed by the assessee.

5.

It is seen that the ld. CIT(A) has not issued a show cause notice to the appellant assessee regarding adverse inference/decision taken against the assessee in confirming the finding of the AO so as to enable the appellant to file its rebuttal in its defense in view of the principle of natural justice. In our view, it is a fit case to be remanded back to the ld. CIT(A) to examine the issue of admission of the additional evidence under Rule 46A afresh and consider the written submission filed on record and may be filed heard. The ld. CIT(A) is further directed to issue a show cause notice to the appellant assessee stating therein the proposed adverse action if any to enable it to file the rebuttal in view of the principle of natural justice. No doubt, the assessee shall co-operate in the fresh appellate proceedings before the ld. CIT(A). Accordingly, all the three appeals in to 76/Asr/2019 on identical facts are restored back to the file of the ld. CIT(A).

6.

In the result, the subject appeals filed by the assessees are allowed for statistical purpose.

Order pronounced in the open court on 17.08.2023

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