Indian Kanoon - Search engine for Indian Law

Income Tax Appellate Tribunal - Delhi

Manveer Singh, Ghaziabad vs Ito,Ward-1(4), Ghaziabad on 20 June, 2023

         THE INCOME TAX APPELLATE TRIBUNAL
            DELHI BENCH 'SMC', NEW DELHI
       Before Dr. B. R. R. Kumar, Accountant Member
       ITA No. 2976/Del/2022 : Asstt. Year: 2012-13

Manveer Singh,                      Vs   Income Tax Officer,
151, Vill.-Mahmoodpur Ristal,            Ward-1(4),
Ghaziabad, U.P.-201003                   Ghaziabad
(APPELLANT)                              (RESPONDENT)
PAN No. BZBPS7379P

                 Assessee by : None
                 Revenue by : Sh. Om Parkash, Sr. DR
Date of Hearing: 17.05.2023       Date of Pronouncement: 20.06.2023


                                ORDER

The present appeal has been filed by assessee against the order of National Face less Appeal Centre (NFAC ), Delhi dated 26.10.2022.

2. Following grounds have been raised by the assessee:

"1. That the Learned Commissioner of Income Tax (Appeals) ['Ld. CIT(A)'] erred on facts and in law in not appreciating that the initiation of reassess ment proceedings without having any valid reasons to believe and any fresh tangible reliable material, is witho ut jurisdiction and consequently, the re- assessment order dated 30 November 2019 ('impugned order') was illegal and bad in law.

2. That on the facts and in the circumstances of the case and in law impugned order passe d by Learned Asse ssing Officer ('Ld. AO') is illegal a nd bad in law since relevant reassessment proceedings have been initiated merely on the basis o f AIR information and witho ut any independent application of mind by the Ld. AO.

Manveer Singh 2.1. That on the facts and in the circumstances of the case and in law, the re-assessment proceedings are illega l and bad in law since the same have been initiated on surmises, conje ctures and suspicion witho ut any ta ngible ev idence.

2.2. In the facts and circumstances of the case, the Ld. AO has erred in relying only on the information of the Annual Information Report without making independent e nquiries and framing the best judgment assessment without verifying the complete bank account of the Appellant.

3. That on the facts and in the circumstances of the case, Ld. CIT (A) has erred in not holding that impugned order as vo id ab-initio on the ground that the same w as concluded without any service of jurisdictional notice u/s 148 of the Income Tax Act, 1961 ('the Act').

4. That on the facts and in the circumstances of the case and in law, the impugned assessment order needs to be set-aside as the satisfactio n recorde d by the Pr. CIT is mechanical and without judicious application of mind.

5. That on the facts and circumstances of the case, the reassessment proceedings is without jurisdiction, illega l and bad in law in as much as the - copy of complete reasons (alongwith details/ material/ annexures referred therein) were not provided to the appellant.

6. That the orders passed by the Ld. C IT(A) and Ld. AO are against the principle of natural justice.

Merits - Without Prejudice

7. That the addition of Rs. 10,90,380 made under Section 69 of the Act to the income of the Appellant is not tenable under the facts of the case s ince the same has been made in gross ignorance of the fact tha t the source of cash deposited in the bank account were either from the withdrawals made from the relevant 3 ITA No. 2976/Del/2022 Manveer Singh bank account or receipts generated during the course of agricultural business.

8. That on the facts and in the circumstances of the case and in law, the addition of Rs. 10,90,380/- in the hands of the Appellant is unwarranted in law since the entire cash de posited w ith the bank acco unt cannot be treated as income of the Appe llant and only a gross margin earned from the Appellant's business ca n be treated as income of the Appellant.

9. That the addition of Rs. 10,90,380/- made under Section 69 of the Act to the income of the Appellant is not tenable under the law because additions are made in gross ignorance and in vio lation of real income theor y of taxation which states that no income could be earned without incurring expenses for the same.

10. That on the facts and in the circumstances of the case and in law, the Ld. AO erred in making the addition upon ex-parte material, in gross violation of principles of natural justice."

3. The AO made addition of Rs.10,90,380/- o n the alleged cash deposits based on AIR information even without obtaining the bank statement and keeping in it o n record. The revenue authorities are expecte d at least to obtain the bank statement before issue o f notice u/s 148 of the Income Tax Act, 1961 and completion of the asse ssment proceedings u/s 1 44 of the Act. Since, the revenue co uld not bring anything on record with regar d to the alleged deposits (bank statement) the tenets of "Best judge assessment" are grossly flouted. The addition made by the AO is hereby de leted.

Manveer Singh

4. In the re sult, the appeal of the assessee is allowed. Order Pronounced in the Open Court on 20/06/202 3.

Sd/-

(Dr. B. R. R. Kumar) Accountant Member Dated:20/06/2023 *Subodh Kumar, Sr. PS* Copy forwarded to:

1. Appellant

2. Respondent

3. CIT

4. CIT(Appeals)

5. DR: ITAT ASSISTANT REGISTRAR