Income Tax Appellate Tribunal - Indore
Shri Naved Khan, Bhopal vs The Ito 1(1), Bhopal on 27 March, 2017
Naved Khan - ITA No. 1540/Ind/2016 -A.Y.2006-07 Page 1 of 4 आयकरअपील यअ धकरण ,इ दौर यायपीठ ,इ दौर IN THE INCOME TAX APPELLATE TRIBUNAL, INDORE BENCH, INDORE ी सी.एम.गग , या यकसद य तथा ीओ.पी.मीना ,लेखासद यकेसम# BEFORE SHRI C. M. GARG, JUDICIAL MEMBER AND SHRI O.P. MEENA, ACCOUNTANT MEMBER आ.अ.सं /.I.T.A. No.1540/Ind/2016 नधा रणवष / Assessment Year:2006-07 Shri Naved Khan vs. Income Tax Officer 1(1) Bhopal Bhopal अपीलाथ /Appellant यथ /Respondent था.ले.सं./PAN: BHQPK - 2308P अपीलाथ क ओर से/Appellant by None यथ क ओर से/Respondent by Shri Mohd. Javed सुनवाई क तारीख/ तारीख/Date of hearing 21.03.2017 उ ोषणा क तारीख/ तारीख/Date of pronouncement 27.03.2017 (27.3.17) आदेश /O R D E R PER BENCH This appeal is filed by the assessee against the order of ld. Commissioner of Income tax (Appeals),Bhopal, [hereinafter referred to as the CIT (A)] dated 17.12.2013. This appeal pertains to Assessment Year 2005-06 as against appeal decided in respect of assessment order dated 17.12.2013 passed u/s. 144/147 of the Income Tax Act, 1961 (herein after referred to as "the Act) by the ITO 1(1) Bhopal [hereinafter referred to as the AO].
1 Naved Khan - ITA No. 1540/Ind/2016 -A.Y.2006-07 Page 2 of 4
1. At the time of hearing, none attended on behalf of the assessee at the time of hearing inspite of notice. The learned DR was heard.
2. The sum and substance of the grounds of appeal is that the learned CIT(A) was not justified in confirming the action of the Assessing Officer in treating credit card payment amounting to Rs.2,08,529/- as income from undisclosed sources.
2.1 Succinctly, facts as culled out from the orders of lower authorities are that the Assessing Officer received information regarding payment against bills raised in respect of a credit card exceeding Rs. 2 lacs by the assessee. The Assessing Officer, therefore, issued a query letter dated 9.11.2012 to the assessee requiring details of filing of income tax return for the assessment year 2006-07 but the assessee did not furnish any reply thereto. Thereafter, the Assessing Officer issued notice u/s 148 of the Act but the assessee did not file any return of income in response thereto. Again, a notice u/s 142(1) along with questionnaire was issued but no compliance was made by the assessee nor any return of income of income was filed. A reminder letter was also issued but to no avail. Finally, a notice u/s 144(1) of the Act was issued proposed assessment on the basis of material available on record but it received the same fate. The Assessing Officer, therefore, proceeded to make the assessment on the basis of material available on record.
2 Naved Khan - ITA No. 1540/Ind/2016 -A.Y.2006-07 Page 3 of 4 2.2 As per the information, a payment of Rs.2,08,529/- for bills raised in respect of a credit card of ICICI Bank has been made by the assessee during the year under consideration. The Assessing Officer specifically asked the assessee to explain the source of the same. However, the assessee did not file any reply to the query raised. The Assessing Officer, therefore, inferred that the assessee has failed to offer any explanation regarding the source of payment of credit card amounting to Rs.2,08,529/-. The Assessing Officer, therefore, treaded the same payment as unexplained and added the same to the total income of the assessee. On appeal that before the learned CIT(A) also, the assessee did not remain present. However, the learned CIT(A) confirmed the action of the Assessing Officer.
2.3 Now the assessee is in appeal before the Tribunal. 2.4 The learned DR supported the orders of the authorities below. 2.5 We have considered the submissions of the learned DR in the light of the facts of the case. In our opinion, it would be just and proper to afford one more opportunity to the assessee to explain his case. It is a well settled principle of natural justice that no-body should be condemned unheard. Principle of natural requires that sufficient opportunity of being heard should be provided to the assessee before deciding the issue against him. We are of the view that since the 3 Naved Khan - ITA No. 1540/Ind/2016 -A.Y.2006-07 Page 4 of 4 Assessing Officer and the learned CIT(A) have decided the matter without hearing the assessees in violation of the principles of natural justice and fair play, this appeal needs to be restored to the file of the Assessing Officer for deciding the same after providing due opportunity of being heard to the assessees. We, therefore, following the principle of natural justice, restore this appeal to the file of the Assessing Officer with the direction to frame fresh assessment after providing the assessees due opportunity of being heard. Needless to mention that the assessee is at liberty to file evidence, if any, in support of its claim before the Assessing Officer.
2. In the result, the appeal of the assessee is allowed for statistical purposes.
3. Order pronounced in the open Court on 27th March, 2017.
Sd Sd/-
(सी.एम.गग ) (ओ.पी.मीना)
याियक सद य लेखा सद य
(C.M.GARG) (O.P.MEENA)
JUDICIAL MEMBER ACCOUNTANT MEMBER
March 27 , 2017
Dn/-
4