Case Number: ITA 355/DEL/2019
Appellant: Chhitar Singh, Greater Noida
Respondent: DCIT, Central Circle, Noida
Assessment Year: 2010-11
Case Filed On: 2019-01-17
Order Type: Final Tribunal Order
Date of Order: 2023-03-29
Pronounced On: 2023-03-29
The case ITA 355/DEL/2019 involves the appellant Chhitar Singh from Greater Noida, contesting the assessment made by the Deputy Commissioner of Income Tax (DCIT), Central Circle, Noida for the assessment year 2010-11. This case was filed on January 17, 2019, and the final order was pronounced on March 29, 2023. The appeal revolves around the issues of unexplained income and violations of natural justice during the assessment proceedings.
The case was heard before the Delhi Bench ‘B’ of the Income Tax Appellate Tribunal (ITAT), New Delhi. The bench consisted of Shri C.M. Garg, Judicial Member, and Shri Pradip Kumar Kedia, Accountant Member.
The appeals filed by Chhitar Singh pertain to the orders of the Commissioner of Income Tax (Appeals) [CIT(A)] – IV, Kanpur, relating to the assessment years 2010-11, 2011-12, 2012-13, and 2015-16.
The appellant’s counsel argued that the Assessing Officer (AO) did not seek any further compliance after the initial details were provided by the appellant’s representative. The AO proceeded to pass the assessment order without giving the appellant an opportunity to submit additional documentary evidence, which was deemed a violation of natural justice. The CIT(A) also rejected the appellant’s plea for admitting additional evidence under Rule 46A of the Income-tax Rules, 1962.
The tribunal, upon careful consideration, found that the AO had not requested further documentary evidence from the appellant and had proceeded based on irrelevant facts. Similarly, the CIT(A) dismissed the plea for additional evidence without sufficient cause. Consequently, the tribunal set aside the orders of the authorities below and remanded the matter back to the AO for a fresh assessment, allowing the appellant to submit all relevant evidence and explanations.
For the assessment year 2012-13, the appellant contested the addition of Rs. 25,00,000 made by the AO under Section 69 of the Income Tax Act. The appellant argued that the loan was taken from Shri Rohit Gupta through a banking channel and repaid within the same financial year. The tribunal noted that the appellant had provided sufficient documentary evidence, including bank statements and income tax returns, to establish the creditworthiness of the lender.
The tribunal concluded that the authorities below had erred in confirming the addition without properly considering the evidence. Therefore, the tribunal directed the AO to delete the addition, allowing the appeal for the assessment year 2012-13.
In the final judgment, the tribunal allowed the appeals for the assessment years 2010-11, 2011-12, and 2015-16 for statistical purposes, remanding the cases back to the AO for fresh assessment. The appeal for the assessment year 2012-13 was partly allowed, directing the AO to delete the addition of Rs. 25,00,000.
This case highlights the importance of adhering to principles of natural justice and providing adequate opportunities for appellants to present their evidence during the assessment proceedings.
Order pronounced in the open court on 29th March, 2023.
Members:
Representatives:
Dated: 29th March, 2023.
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