Case Number: ITA 662/DEL/2021
Appellant: Dharambir Singh, Bahadurgarh
Respondent: ITO Ward-1, Rohtak
Assessment Year: 2017-18
Case Filed On: 2021-06-07
Order Type: Final Tribunal Order
Date of Order: 2022-08-31
Pronounced On: 2022-08-31
This article provides a detailed analysis of the case ITA No. 662/DEL/2021, where Dharambir Singh from Bahadurgarh filed an appeal against ITO Ward-1, Rohtak, concerning the assessment year 2017-18. The appeal was allowed due to the ex-parte assessment and lack of inquiry into the source of cash deposits.
Dharambir Singh, residing at House No. 658, Johari Nagar, Line Paar, Bahadurgarh, Haryana, filed an appeal against the order of the learned Commissioner of Income-tax (Appeals), National Faceless Appeal Centre, Delhi, dated 06.04.2021. The assessment was conducted for the year 2017-18.
The appellant raised the following grounds of appeal:
The AO received System Generated Information (AIR) stating that Dharambir Singh had deposited cash of Rs. 12,00,000/- in his bank accounts at Syndicate Bank and Oriental Bank of Commerce during the demonetization period from 09.11.2016 to 30.12.2016. The case was taken up for scrutiny, and various notices were issued to the assessee, but no one attended the proceedings. Consequently, the AO proceeded to make an ex-parte assessment, adding Rs. 10,00,000/- and Rs. 1,92,140/- as pension received.
Aggrieved by the AO’s order, the assessee appealed to the CIT(A), who, after considering the submissions, dismissed the appeal. The assessee then appealed to the Income Tax Appellate Tribunal (ITAT).
At the time of the hearing, no one attended on behalf of the assessee. The tribunal noted that the assessee had not been attending the proceedings despite various opportunities. Notices sent through speed post were returned undelivered. The appeal was thus taken up for hearing in the absence of the assessee.
The learned Senior Departmental Representative (DR) supported the orders of the authorities below and submitted that the assessee had been thoroughly negligent and did not appear before the assessing authority.
The tribunal, presided over by Shri Kul Bharat, Judicial Member, reviewed the case and found that the AO had recorded that various opportunities were given to the assessee, but no one attended the proceedings. However, it was noted that the AO had mentioned the explanation offered by the assessee about the source of the deposit being the streedhan of his wife. The AO had not inquired further into this aspect.
Income Tax Appellate Tribunal, Delhi Bench “SMC”, New Delhi
Before: Shri Kul Bharat, Judicial Member
Order:
This appeal, filed by the assessee for the assessment year 2017-18, is directed against the order of the learned Commissioner of Income-tax (Appeals), National Faceless Appeal Centre, Delhi, dated 06.04.2021. The grounds raised by the assessee concern the addition of Rs. 10,00,000/- as unexplained cash deposits and the completion of the assessment ex-parte.
After hearing the arguments of the learned Senior Departmental Representative and perusing the material available on record, the tribunal found that the AO had given various opportunities to the assessee, but no one attended the proceedings. However, it was also noted that the AO had mentioned the assessee’s explanation regarding the source of the deposit being the streedhan of his wife. No inquiry was made on this aspect.
In the interest of natural justice and to give the assessee an opportunity of being heard, the tribunal set aside the impugned order and restored the assessment to the file of the AO for making a fresh assessment after giving the assessee an opportunity to be heard.
Order Pronounced and Signed in Open Court on 31st August 2022.
Signed:
Shri Kul Bharat, Judicial Member
Date: 31st August 2022
This case underscores the importance of ensuring the assessee’s opportunity to be heard and the need for thorough inquiries by the AO, especially when the source of deposits is explained by the assessee.
Dharambir Singh vs. ITO Ward-1, Rohtak: Appeal Allowed on Ex-Parte Assessment 2022
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