Case Number: ITA 6550/DEL/2019
Assessment Year: 2011-12
Filed Date: 2019-08-06
Order Date: 2021-06-29
Pronounced On: 2021-06-29
The case revolves around an appeal by Narender Singh, a resident of New Delhi, against the Income Tax Officer (ITO) Ward 43(2), New Delhi, for the assessment year 2011-12. The appellant challenged an ex-parte order passed by the Commissioner of Income Tax (Appeals) [CIT(A)], New Delhi, on 7th June 2019, which confirmed an addition of Rs. 10,40,000 as unexplained cash deposits under Section 68 of the Income Tax Act, 1961. The appeal was filed on 6th August 2019, and the Income Tax Appellate Tribunal (ITAT), Delhi Bench ‘SMC-1’, passed the final order on 29th June 2021.
The tribunal critically examined the circumstances leading to the ex-parte order passed by CIT(A). It was found that the hearing date was adjourned to a public holiday, and no fresh notice was provided to the appellant. The ITAT held that this constituted a denial of a fair opportunity to the appellant, thereby violating the principles of natural justice. The tribunal deemed it reasonable to restore the case to the file of the CIT(A) for fresh adjudication, ensuring that the appellant is given a proper opportunity to present his case.
The appellant challenged the addition of Rs. 10,40,000 as unexplained cash deposits under Section 68. The tribunal noted that the CIT(A) confirmed the addition without considering the appellant’s claim that the cash deposits were made from cash withdrawals during the same period. The ITAT found merit in the appellant’s contention and directed the CIT(A) to re-examine the issue, considering the withdrawals and other relevant details provided by the appellant.
The appellant contested the reopening of the assessment, arguing that the reasons recorded were vague and did not establish a nexus between the reasons and the belief formed by the AO. The ITAT acknowledged the appellant’s concerns but chose not to give a definitive ruling on this issue at this stage. Instead, the tribunal directed the CIT(A) to re-evaluate the grounds for reopening during the fresh adjudication, ensuring a detailed and reasoned order is passed.
The ITAT’s order provided relief to Narender Singh by setting aside the ex-parte order passed by the CIT(A) and directing a fresh adjudication. The tribunal emphasized the importance of providing a fair opportunity to the appellant and ensuring that all relevant facts, including cash withdrawals, are considered while deciding on the addition under Section 68. The case was restored to the CIT(A) with clear instructions to re-examine the issues and pass a speaking order after giving due consideration to the appellant’s submissions.
Order Pronounced in Open Court: 29th June 2021
Bench: Ms. Suchitra Kamble, Judicial Member, and Dr. B. R. R. Kumar, Accountant Member
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