This article discusses ITA No. 1901/DEL/2020, involving Charandass Juneja, New Delhi, and the Income Tax Officer (ITO) Ward 31(1), New Delhi. The case pertains to the Assessment Year (AY) 2011-12 and was filed on November 26, 2020, with the final order pronounced on November 24, 2021. The main issue in this case revolves around the assessment made without proper notice and the disallowance of certain investments claimed by the appellant.
Charandass Juneja, the appellant, contested the assessment made by ITO Ward 31(1), New Delhi. The appellant claimed that he did not receive proper notices under Sections 147/148 and 142(1) due to a change of address and that the assessment was conducted without his knowledge. The appellant also argued that the disallowance of investments made from the sale proceeds of his house property was arbitrary and not based on factual evidence.
The appellant’s main contention was that he was denied an opportunity to explain the facts before the Assessing Officer (AO). The appellant had sold a house property and invested a portion of the sale proceeds in equity shares. However, due to a change in his residential address, he did not receive the notices and the assessment order physically. He only came to know about the assessment order via email. The appellant argued that the investment in shares amounting to Rs. 5,50,000 was made from the sale proceeds of the house property and was fully explained.
The Senior Departmental Representative (DR), Shri Om Prakash, opposed the appellant’s submissions and argued that there was no reasonable cause for the condonation of delay in filing the appeal. The DR also contended that the appellant failed to provide sufficient evidence to support his claims and did not file the relevant documents before the AO.
The Income Tax Appellate Tribunal (ITAT) reviewed the case, led by Shri Kul Bharat, Judicial Member. The tribunal considered the appellant’s health issues and the widespread pandemic situation during the relevant period. Taking a liberal view, the tribunal condoned the delay in filing the appeal and admitted it for hearing.
The tribunal referred to the principle that the CIT(A) cannot summarily dismiss an appeal in case of non-appearance of the appellant. The tribunal emphasized that the AO and CIT(A) should have considered the appellant’s claim that the investment in shares was made from the sale proceeds of the house property.
The ITAT set aside the impugned order and remitted the issue back to the AO to frame the assessment afresh after giving a reasonable opportunity to the appellant. The tribunal instructed that the appellant should not seek adjournment without a reasonable cause and that the relevant details should be filed before the AO.
The ITAT’s decision underscores the importance of providing appellants with a fair opportunity to present their case and ensuring that assessments are based on factual evidence. This case highlights the necessity for tax authorities to adhere to procedural fairness and consider all relevant documents submitted by appellants.
The final order, pronounced on November 24, 2021, reads:
In the light of aforesaid, this Bench is of the considered view that the authorities below failed to advert to the contention of the assessee that investment in share was made out of sale consideration of house property. I therefore, set aside the impugned order and restore the issue to the file of Assessing Officer to frame the assessment afresh after giving reasonable opportunity to the assessee. Needless to say that the assessee would not seek adjournment without any reasonable cause. Thus, grounds raised by the assessee are allowed for statistical purposes.
Above decision was pronounced on conclusion of Virtual Hearing in the presence of both the parties on 24th November, 2021.
Signed by:
(KUL BHARAT) Judicial Member
Dated: 24th November, 2021
This judgment reinforces the principle that appeals must be decided on their merits, ensuring transparency and fairness in tax administration.
ITA No. 1901/DEL/2020 – Charandass Juneja vs. ITO Ward 31(1), New Delhi: Appeal for AY 2011-12
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