Case Number: ITA 858/DEL/2019
Appellant: Hari Ram Verma, New Delhi
Respondent: ITO, Ward-62(4), New Delhi
Assessment Year: 2010-11
Case Filed on: 2019-02-05
Order Type: Final Tribunal Order
Date of Order: 2021-12-27
Pronounced on: 2021-12-27
This appeal, filed by the assessee, Hari Ram Verma, is directed against the order of the CIT(A)-20, New Delhi, dated 22.11.2018, for the assessment year 2010-11. The key issues pertain to discrepancies related to multiple PAN numbers and the resulting ex-parte assessment order.
Hari Ram Verma, a registered government contractor, has been filing income tax returns for the past 15 years. The appellant did not receive any notice of assessment for the assessment year 2010-11 and claimed that an ex-parte order was passed without considering the filed income tax return, leading to an additional demand of Rs. 508,360.
The appellant raised several grounds of appeal, which are summarized below:
The appeal was taken up for hearing in the absence of the assessee, and the assessment order was passed ex-parte. The CIT(A) found that the appellant had not filed the ITR for the impugned year under PAN AATPV9486A, which showed gross receipts of Rs. 1,23,21,654.
The CIT(A) noted that the appellant had filed ITR under PAN ACAPV8292K, which included gross receipts of Rs. 1,32,27,729 and a net profit of Rs. 6,78,593. The appellant provided TDS certificates and other supporting documents. However, the Assessing Officer reported that there was no record of the request for cancellation of PAN ACAPV8292K.
The CIT(A) concluded that the appellant had received contract receipts under both PANs for the financial year in question. The return filed under PAN AATPV9486A did not include the gross contract receipts from PAN ACAPV8292K. Therefore, the AO was correct in estimating the income from the undisclosed receipts and taxing the same.
The CIT(A) directed the AO to verify the appellant’s turnover under both PANs in subsequent years and take steps to deactivate PAN ACAPV8292K.
The Tribunal, after considering the facts and circumstances of the case, set aside the impugned order and restored the issue of assessment to the file of the Assessing Officer for a fresh assessment. The AO is directed to provide adequate opportunity to the assessee to present his case. The grounds raised by the assessee were allowed for statistical purposes.
Order Pronounced: 27th December 2021
Member: Shri Kul Bharat, Judicial Member
This case highlights the importance of proper documentation and communication with tax authorities. It also underscores the necessity for taxpayers to ensure that all PAN-related issues are resolved to avoid complications in tax assessments. The decision to set aside the ex-parte order and provide an opportunity for a fresh assessment aligns with the principles of natural justice, ensuring that the assessee has a fair chance to present his case.
ITA 858/DEL/2019: Hari Ram Verma vs. ITO, Ward-62(4), New Delhi – Assessment Year 2010-11
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