SH. BABU RAM ARORA , JALANDHAR v. INCOME TAX OFFICER, WARD III(1), JALANDHAR

ITA 298/ASR/2017 | 2005-2006
Pronouncement Date: 30-11-2017 | Result: Allowed

Appeal Details

RSA Number 29820914 RSA 2017
Bench Amritsar
Appeal Number ITA 298/ASR/2017
Duration Of Justice 6 month(s) 8 day(s)
Appellant SH. BABU RAM ARORA , JALANDHAR
Respondent INCOME TAX OFFICER, WARD III(1), JALANDHAR
Appeal Type Income Tax Appeal
Pronouncement Date 30-11-2017
Appeal Filed By Assessee
Tags No record found
Order Result Allowed
Bench Allotted DB
Tribunal Order Date 30-11-2017
Last Hearing Date 02-11-2017
First Hearing Date 02-11-2017
Assessment Year 2005-2006
Appeal Filed On 22-05-2017
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL AMRITSAR BENCH; AMRITSAR BEFORE SH. T.S. KAPOOR ACCOUNTANT MEMBER AND SH. N.K.CHOUDHRY JUDICIAL MEMBER I.T.A NO.298(ASR)/2017 ASSESSMENT YEAR:200 5-06 SH. BABU RAM ARORA 52 SHANKAR GARDEN COLONY JALANDHAR. PAN:AASPA-6089R VS. INCOME TAX OFFICER WARD III(1) JALANDHAR. (APPELLANT) (RESPONDENT) APPELLANT BY: SH. J.S. BHASIN (LD. ADV.) RESPONDENT BY: SH. S.S.KANWAL (LD. D.R) DATE OF HEARING: 2.11.2017 DATE OF PRONOUNCEMENT:30.11.2017 ORDER PER N.K.CHOUDHRY: THE INSTANT APPEAL HAS BEEN PREFERRED BY THE ASSESSEE ON FEELING AGGRIEVED AGAINST THE ORDER DATED 21.08.201 5 PASSED BY THE LD. CIT(A)-2 JALANDHAR IN APPEAL NO.444/12-13/CIT (A)/JALANDHAR FOR THE ASST. YEAR:2005-06. 2. THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS OF APP EAL. 1. THAT THE IMPUGNED ORDER OF LD. CIT(A) DISMISSI NG THE ASSESSEES APPEAL FOR NON APPEARANCE IS NOT SUSTAINABLE INASM UCH AS THE ASSESSEE HAVING BEEN IMPLICATED IN SOME CRIMINAL CA SES FOLLOWED BY HIS IMPRISONMENT WAS NOT IN A POSITION TO MAKE APPEARANCE OR EVEN INSTRUCT HIS COUNSEL TO REPRESENT THE CASE. 2. THAT THE ORDER OF LD. CIT(A) BEING IN VIOLATION OF THE PRINCIPLES OF NATURAL JUSTICE DESERVES TO BE SET ASIDE FOR A DEN OVO CONSIDERATION OF THE CASE ON MERITS. 3. THAT THE ORDER OF THE LD. CIT(A) IS AGAINST LAW AND FATS OF THE CASE. 3. THE BRIEF FACTS OF THE CASE ARE AS UNDER: THE ASSESSEE HAD FILED HIS RETURN OF INCOME DECLARI NG AT RS.2 33 340/- FOR THE ASST. YEAR:2005-06 ON 30.0 6.2006 ITA NO.298 (ASR)/2017 ASST. YEAR:200 5-06 2 WHICH WAS PROCESSED U/S 143(1) OF THE I.T. ACT. DUR ING THE COURSE OF ASSESSMENT PROCEEDING IT WAS REVEALED BY THE REVENUE DEPARTMENT THAT THE ASSESSEE HAD MADE INVESTMENT IN THE FOLLOWING PROPERTIES. S. NO. DESCRIPTION OF THE PROPERTY DATE OF PURCHASE AMOUNT OF INVESTMENT 1. FLAT AT SOLAN 20.09.2004 18 60 160/- 2. 428 MIG FLAT URBAN ESTATE PHASE-II JALANDHAR. 19.11.2004 7 59 700 3. H.NO.4 SABOWAL 03.02.2005 13 77 500 TOTAL 39 97 360 ON THE BASIS OF THE AFORESAID INFORMATION THE CASE OF THE ASSESSEE WAS REOPENED U/S 147/148 WHILE ISSUING A NOTICE U/S 148 ON DATED 23.03.2012 THEREAFTER DET AIL QUESTIONNAIRE AND NOTICE U/S 142(1) OF THE I.T. ACT WAS ALSO ISSUED FOR FILING OF RETURN OF INCOME OR OTHER INFO RMATION ON 2 ND JULY 2017 HOWEVER NONE ATTENDED ON BEHALF OF THE ASSESSEE THEREAFTER THE ASSESSEE APPEARED ON 27 TH AUGUST 2012 BEFORE THE ASSESSING OFFICER AND STATED THAT R ETURN FILED BY HIM ON 30 TH JUNE 2006 MAY BE TREATED TO HAVE BEEN FILED IN RESPONSE TO NOTICE U/S 148 AND ON THE REQUEST OF THE ASSESSEE THE CASE WAS ADJOURNED FOR 31 ST OCTOBER 2012 BUT ON THAT DATE NEITHER ASSESSEE NOR HIS REPRESENTATIVES ON BEHALF OF THE ASSESSEE NOR ANY INFORMATION WAS FILED THEREAFTER ANOTHER NOTICE D ATED 12.10.2012 WAS ISSUED AND SERVED ON THE ASSESSEE HOWEVER DID NOT YIELD ANY RESULT. THEREAFTER IN T HE COMPELLING CIRCUMSTANCES THE ASSESSING OFFICER FIN DING NO ALTERNATIVE COMPLETED THE ASSESSMENT ON MERITS ON THE BASIS OF MATERIAL AVAILABLE ON RECORD AND ADDED RS.10 89 236/- IN THE CAPITAL ACCOUNT OF THE ASSESS EE AND ITA NO.298 (ASR)/2017 ASST. YEAR:200 5-06 3 RS.39 97 360/- AS UNEXPLAINED INVESTMENT IN VARIOUS IMMOVABLE PROPERTIES. 4. ON FEELING AGGRIEVED AGAINST THE ASSESSMENT ORDER PASSED BY THE ASSESSING OFFICER THE ASSESSEE PREFERRED THE FIRST APPE AL BEFORE THE LD. CIT(A). THE LD. CIT(A) SENT NOTICES ON NINE OCCA SIONS WHICH HAVE BEEN DULY SERVED UPON THE ASSESSEE AND ON 25 TH JULY 2013 THE LD. ADVOCATE SH. J.S. BHASIN ATTENDED THE PROCEEDING AND SOUGHT ADJOURNMENT FOR 9.9.2013 AND THEREAFTER ON THE SAID DATE SH. HITESH KUMAR (ADVOCATE) ATTENDED THE PROCEEDING ON BEHALF OF THE ASSESSEE AND HE SOUGHT ADJOURNMENT FOR 10.10.2013 AND THEREAF TER NO ONE ATTENDED ON BEHALF OF THE ASSESSEE AND EVEN NO REQUEST F OR ADJOURNMENT WAS RECEIVED BY THE LD. CIT(A) AND SUBSEQU ENTLY IN ORDER TO GIVE FAIR OPPORTUNITIES OF BEING HEARD THE CASE SEV EN NOTICES HAVE BEEN ISSUED TO THE ASSESSEE BUT YIELDED NO RESULT. THEREF ORE ON THE BASIS OF FACTS AND CIRCUMSTANCES IT WAS CONSTRUED BY THE LD. C IT(A) THAT THE ASSESSEE HAS DELIBERATELY AVOIDING APPELLATE P ROCEEDINGS AND FINDING NO ALTERNATIVE THE LD. CIT(A) DISMISSED THE A PPEAL OF THE ASSESSEE BY CONFIRMING THE ADDITION MADE BY THE ASSESSING OF FICER. 5. ON FEELING AGGRIEVED AGAINST THE ORDER PASSED BY THE LD. CIT(A) THE ASSESSEE PREFERRED THE INSTANT APPEAL AND IN SUPPOR T OF HIS CASE SUBMITTED THAT THE IMPUGNED ORDER OF THE LD. CIT(A) DISMISSING THE ASSESSEES APPEAL FOR NONE APPEARANCE IS NOT SUSTAINABLE IN AS MUCH AS THE ASSESSEE HAVING BEEN IMPLICATED IN SOME CRIMINAL CASES FOLLOWED BY HIS IMPRISONMENT DUE TO WHICH HE WAS NOT IN POSSESSION TO MAKE APPEARANCE OR EVEN INSTRUCT HIS COUNSEL TO REPRESENT HIS CASE. FURTHER SUBMITTED THAT THE ORDER OF THE LD. CIT(A) BEING IN VIOLATION OF THE PRINCIPLE OF NATURAL JUSTICE DESERVE S TO BE SET ASIDE FOR DE NOVE CONSIDERATION OF THE CASE ON MERITS. THE LD. AR ALSO SUB MITTED A CUSTODY CERTIFICATE DATED 13.04.2017 OF THE ASSESSEE. ITA NO.298 (ASR)/2017 ASST. YEAR:200 5-06 4 6. ON THE CONTRARY THE LD. DR SUBMITTED THAT THE ASSESSEE DOES NOT DESERVE ANY LENIENCY FROM THIS COURT AS HE IS WILLFU L AND REGULAR DEFAULTER AND ALLEGEDLY TO BE CRIMINAL HAVING INVOL VED IN MANY CASES OF FRAUD CHEATING AND FORGERY ETC. WHICH IS APPAREN T FROM THE CUSTODY CERTIFICATE ITSELF. 7. WE HAVE GONE THROUGH WITH THE FACTS AND CIRCUMSTANCES AND HAVING HEARD THE RIVAL SUBMISSIONS OF THE PARTIES WE R EALIZED THAT MANY CASES HAVE BEEN REGISTERED AGAINST THE APPELLANT HE REIN IN THE YEAR 2012 2013 2014 & 2016. ALTHOUGH MANY NOTICES HAVE BEEN ISSUED BY THE LD. CIT(A) AND EVEN IN ONE OCCASION THE A SSESSEE WAS REPRESENTED BY HIS COUNSELS HOWEVER NO FRUITFUL PURPO SES HAVE BEEN SERVED AND THEREFORE IN THE CONSTRAINED CIRCUMSTANCES T HE LD. CIT(A) HAS PASSED THE ORDER WHICH IS IMPUGNED HEREIN. FROM THE CUSTODY CERTIFICATE IT IS REVEALED THAT EIGHT CRIMINAL CASES HAVE BEEN REGISTERED AGAINST THE ASSESSEE AND THE ASSESSEE REMAINED IN JUDICIAL CUSTODY FROM 17 TH DEC.2015 TO 30 TH MARCH 2017. THE LD. AR SUBMITTED THAT THE ASSESSEE ALSO REMAINED ABSCONDED FROM 2012-2015 IN ORD ER TO AVOID CRIMINAL CASES AND THEREFORE WAS UNABLE TO PARTIC IPATE IN THE ASSESSMENT AS WELL AS APPELLATE PROCEEDING. THE LD. AR SH . J.S. BHASIN MADE STATEMENT THAT IF THE OPPORTUNITY IS GRANT ED TO THE ASSESSEE TO PARTICIPATE IN THE APPELLATE PROCEEDING BEFOR E THE LD. CIT(A) AFRESH THEN ON EACH AND EVERY DATE OF HEARING THE ASSESSEE SHALL APPEAR AND FULLY CO-OPERATE WITH THE PROCEEDINGS. WE WHILE CONSIDERING THE STATEMENTS OF SH. J. S. BHASIN (ADVOCATE) OF THE ASSESSEE PERUSED THE ORDER DATED 25.07. 2013 PASSED BY THE LD. CIT(A) FROM WHICH IT APPEARS THAT S H. J.S. BHASIN LD. ADVOCATE ATTENDED THE PROCEEDING ON BEHALF OF THE ASSESSEE AND TOOK ADJOURNMENT FOR 9.9.2013 WHICH GOES TO SUPPORT TH AT THE LD. COUNSEL SH. J.S. BHASIN IS REGULARLY FOLLOWING THE CASE OF THE ASSESSEE AND THE ASSESSEE REMAINED ABSENT DURING THE ASSESSMENT AS WEL L AS ITA NO.298 (ASR)/2017 ASST. YEAR:200 5-06 5 APPELLATE PROCEEDING BEFORE THE LD. CIT(A) THEREFOR E IN THE CONSTRAINED CIRCUMSTANCES THE LD. CIT(A) WAS HAVING NO OPTION EXCEPT TO PASS THE ORDER ON THE ORDER ON THE BASIS OF MATERIAL AVAILABLE ON RECORD. WE REALIZED THAT IN THE ABSENCE OF THE ASSESSEE AS WELL AS SUPPORTING MATERIAL ON HIS BEHALF THE LD. CIT(A) CONF IRMED THE ASSESSMENT ORDER WHICH ACCORDING TO OUR MIND REQUIRES TO BE ADJUDICATED AFRESH HENCE IN THE PECULIAR FACTS AND CI RCUMSTANCES OF THE CASE WE SET ASIDE THE ORDER PASSED BY THE LD. CIT(A) AND REMAND THE CASE TO HIS FILE FOR DECISION AFRESH ON MERITS AFTER GIVING PROPER OPPORTUNITIES OF BEING HEARD TO THE ASSESSEE. THE ASSESSEE IS ALSO WARNED TO JOIN THE PROCEEDINGS IMMEDIATELY AND FURTHE R TO CO-OPERATE WITH THE APPELLATE PROCEEDING BEFORE THE LD. CIT(A) IN ITS TRUE SENSE. WE FURTHER CLARIFIES THAT IN CASE OF DEFAULT OF THE A SSESSEE THE LD. CIT(A) SHALL BE AT LIBERTY TO PASS APPROPRIATE ORD ER IN ACCORDANCE WITH LAW AND THE ASSESSEE SHALL NOT BE ENTITLED FOR ANY KIND OF LENIENCY IN SUBSEQUENT PROCEEDINGS IF ANY CARRIED ON. 8. IN THE RESULT THE APPEAL FILED BY THE ASSESSEE IS ALLOW ED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 30.11.2017. SD/- SD/- (T. S. KAPOOR) (N.K.CHOUDHRY) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED:30.11.2017. /PK/ PS. COPY OF THE ORDER FORWARDED TO: (1) THE ASSESSEE: (2) THE (3) THE CIT(A) (4) THE CIT (5) THE SR DR I.T.A.T. TRUE COPY BY ORDER