TaxTMI 
TaxTMI 
2023 (9) TMI 1219
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....sment order dated 21/12/2016 was passed by the Assessing Officer u/s 143(3) of the Income Tax Act, 1961 ("IT Act" for short) whereby the assessee's total income was determined at Rs. 39,95,777/- (rounded off to Rs. 39,95,780/-). The office note recorded by the Assessing Officer at page 6 of the assessment order is as under: "The case was selected for scrutiny to examine the mismatch in sales turnover reported in audit report and ITR. During the course of assessment proceedings the issue was examined and no discrepancy was noticed." (C) The dispute in this appeal pertains to an addition of Rs. 13,50,000/-. The assessee's claim of having received this amount as gifts from relatives was not accepted by the Assessing Officer and aforesaid amount of Rs. 13,50,000/- was added to the assessee's income. Relevant portion of the order of the Assessing Officer is reproduced below: "6. Fact relating to introduction of cash in Cash Book On examination of ledger accounts it has been noticed that a ledger account in the name of Smt. Guddo Devi, proprietor, Imprest account has been formed wherein total sum of Rs 23,50,000/- has been introduced in the cash boo....
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....he assessee which she has tried to bring it in the main stream without paying proper taxes by giving it a colour of gifts. As such total amount is treated to be income of the assessee u/s 68 of the IT Act, 1961." (C.1) Aggrieved, the assessee filed appeal in the office of learned CIT(A). Vide aforesaid impugned appellate order dated 12/09/2019, the learned CIT(A) sustained the aforesaid addition of Rs. 13,50,000/-. The relevant portion of the order of learned CIT(A) from paragraphs (9.1) and (9.2) of his impugned order, is reproduced below: "(9.1) The written submissions filed were examined. The written submissions and additional evidences filed by the appellant were forwarded to AO vide letter dated 16.05.2018. The AO filed a remand report vide letter dated 14.01.2019 which is reproduced as under: As directed by the ibid letter, the assessee was requested vide this office dated 21.05.2018 to attend this office to examine the following:- (i) Complete name and address of the persons from whom you have received gifts during the F.Y. 2013-14 relevant to the A.Y. 2014-15. (ii) During the course of assessment proceedings, vide para 1 & para 2 of no....
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..... Therefore, the addition made by the AO u/s 68 of the Act to tune of Rs. 13,50,000/- is confirmed. Ground of appeal no. 2 is dismissed." (C.1.1) At the time of hearing, the assessee was represented by none, and a letter was filed seeking adjournment on the ground that the assessee was in the process of preparing this appeal and that it would take some more time to complete the preparation of appeal since certain important documents were still awaited. After hearing learned Sr. Departmental Representative for Revenue ("Sr. D.R." for short), it was decided to dispose off this appeal as adequate opportunity has already been provided to the appellant assessee. It may be added here that on earlier occasions, hearings fixed in ITAT on 19/02/2020, 11/06/2020, 22/06/2021, 13/07/2021, 17/08/2021, 20/09/2021, 28/12/2021, 20/01/2022, 14/02/2022, 27/04/2022, 30/05/2022, 22/06/2022, 12/07/2022, 01/08/2022, 25/08/2022, 03/10/2022, 17/10/2022, 17/04/2023, 02/05/2023, 30/05/2023, 14/07/2023 were adjourned either from the request from assessee's side or because the assessee was not represented on the aforesaid dates of hearing. The request for adjournment made from the assessee's side was rejec....
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....8 or that this information was already available on record. Further, while there is mention of summons having been issued to the relatives of the assessee, there is no mention as to whether sufficient opportunity was provided to the persons to whom summons were issued. There is no mention of date of issue of summons, date of service of summons and date of compliance prescribed in the summons. Further, on perusal of the impugned order of learned CIT(A), there is no mention that contents of the remand report vide letter dated 14/01/2019 of the Assessing Officer were communicated to the appellant assessee. The learned CIT(A), thus used material adverse to the assessee (remand report of the Assessing Officer) without confronting assessee with the same and without providing reasonable opportunity to the assessee. This was in complete violation of principles of natural justice. In view of all these facts and circumstances, the learned Sr. D.R. for Revenue submitted that the impugned order dated 12/09/2019 of learned CIT(A) may be set aside and the Assessing Officer may be directed to pass fresh assessment order in accordance with law after providing reasonable opportunity to the assessee....