Case Number: ITA 860/DEL/2019
Appellant: Prabhakar Jha, Delhi
Respondent: ITO Ward 37(3), New Delhi
Assessment Year: 2014-15
Case Filed on: 2019-02-05
Order Type: Final Tribunal Order
Date of Order: 2022-10-11
Pronounced on: 2022-10-11
This appeal, filed by the assessee, Prabhakar Jha, is directed against the order of the CIT(A)-13, New Delhi, for the assessment year 2014-15. The case revolves around the additions made under sections 41 and 68 of the Income Tax Act, as well as the adhoc disallowance of expenses.
Prabhakar Jha, the appellant, faced additions to his income during the assessment year 2014-15. The additions were made under sections 41 (regarding remission or cessation of liabilities) and 68 (regarding unexplained cash credits) of the Income Tax Act. Additionally, there was an adhoc disallowance of expenses. The appellant challenged these additions before the CIT(A)-13, New Delhi, but the order was confirmed. Subsequently, the appellant filed an appeal with the ITAT.
The appellant raised the following grounds in the appeal:
The assessee filed the return of income on 17th March 2015, declaring an income of Rs.6,64,590/-. The assessment was completed with additions totaling Rs.1,53,13,062/- under the head of income from business and profession, and Rs.1,94,53,365/- under the head of income from other sources.
The proceedings before the CIT(A) were as follows:
No one appeared on behalf of the assessee on the dates of hearing before the CIT(A), and no adjournment letters were filed. The CIT(A) confirmed the order of the Assessing Officer ex-parte.
The assessee filed an appeal before the Tribunal on 5th February 2019, contesting the ex-parte order of the CIT(A). It was observed that the assessee had not appeared even before the Assessing Officer.
The Tribunal acknowledged the right of the assessee to appeal against any addition or disallowance made to the returned income. However, it also emphasized the importance of complying with notices issued by the authorities. The conduct of the assessee, in this case, was found to be clogging the already burdened justice delivery system.
As a result, the Tribunal directed the assessee to pay an amount of Rs.10,000/- to the Prime Minister’s National Relief Fund. Additionally, the Tribunal ordered a fresh hearing de novo before the CIT(A), directing the CIT(A) to afford an opportunity of being heard to the assessee before concluding the proceedings. The demand against the assessee would continue to exist until the fresh hearing.
In conclusion, the appeal filed by Prabhakar Jha was allowed for statistical purposes. The case was remanded back to the CIT(A) for a fresh hearing, with instructions to provide the assessee an adequate opportunity to present his case. The Tribunal’s decision highlights the importance of adhering to procedural requirements while also ensuring that justice is served fairly.
Order Pronounced: 11th October 2022
Members: Dr. B. R. R. Kumar (Accountant Member) and Sh. Yogesh Kumar US (Judicial Member)
ITA 860/DEL/2019: Prabhakar Jha vs. ITO Ward 37(3), New Delhi – Assessment Year 2014-15
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