IN THE INCOME TAX APPELLATE TRIBUNAL
DELHI BENCHES "SMC": DELHI
BEFORE SHRI BHAVNESH SAINI, JUDICIAL MEMBER
ITA.No.4129/Del./2018
Assessment Year 2014-15
Vikas Kumar Income Tax Officer,
C/o Raheja & Co., CA, vs. Ward 4(5),
139, HUDA, Sector-11, Gurgaon
Panipat, Haryana
BAZPK9070L
(Appellant) (Respondent)
Shri Ramesh Raheja, CA
For Assessee :
For Revenue : Dr. Anjula Jain, Sr. DR
Date of Hearing : 17.10.2018
Date of Pronouncement : 24.10.2018
ORDER
This appeal by assessee has been directed against the
order of Ld.CIT(A)-1, Gurgaon dated 15.03.2018 for AY 2014-
15.
2. Briefly the facts of the case are that assessee filed return
of income declaring total income of Rs. 19,90,960/-. The
assessee also declared net agricultural income of Rs.
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28,20,828/- in his return of income. The assessee's
representative attended the assessment proceedings and filed
necessary information and details which were placed on record
by the AO. The assessee also filed written submission along
with necessary documents. The AO noted that assessee was
asked to provide details of agriculture income shown, copy of
proof of land holding, proof of agriculture produce in the form
of fird, Jamabandi, Form J etc. and details of expenditure
supported by the documentary evidence. No communication
was received from the side of the assessee. During the course
of assessment proceedings, the assessee filed reply stating
therein that he was in possession of approximately 20 acres of
land taken on lease from S/Sh. Atal Singh, Suresh Kumar,
Om Pal all sons of Shri Roop Chand of village Bahrampur,
District Panipat. The assessee also submitted copies of Form
J amounting to Rs. 28,20,828/- received from different
mandis for sale of crops. The AO issued notice u/s 133(6) of
the Act to the above three persons for verification but there
was no reply received. The assessee was asked to produce all
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the above persons along with their IDS and relevant
documents in support of the claim of assessee. The assessee
also explained that out of ignorance, assessee filed agriculture
income of Rs. 28,20,828/- instead of Rs. 8,04,226/-. The
assessee filed reply to the show cause notice in which it was
submitted that all confirmations from the relevant parties are
filed, net agriculture income is Rs. 8,04,226/- and revised
computation of income was also filed. The AO, however, noted
that no original documents have been produced. The copies
are not having back page, where date of stamp paper is
mentioned. There is no signature of the witness. The
signature appears only of Suresh Kumar. Form J have been
produced for the period prior to the execution of the
agreement. No reply has been received u/s 133(6) of the Act
for the above three persons and none of them have been
produced for examination. The AO, accordingly, rejected the
explanation of the assessee and treated the agriculture income
of Rs. 28,20,828/- as income from other sources and made
the addition.
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3. The assessee challenged the addition before Ld. CIT(A).
The Ld.CIT(A) recorded that twice counsel for assessee
appeared before him and requested for adjournment which
was granted. On 22.01.2018 again request was made for
adjournment which was granted and thereafter, on other dates
nobody attended the appellate proceedings. Therefore,
appeals of assessee was decided on merits on the basis of the
document on record. The findings of the Ld. CIT(A) in para 3.3
of the order is reproduced as under:
"3.3 I have carefully considered the facts
recorded in the assessment order. The Assessing
Officer in a detailed order has clearly established
that the claim of agricultural income was not genuine.
The appellant has not been able to controvert any of
the findings by the Assessing Officer as reproduced
above. The addition made by the Assessing Officer
is accordingly confirmed. This ground of appeal is
dismissed."
4. The assessee in the present appeal has challenged the
order of Ld. CIT(A) on two grounds that appellate order have
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ITA.No.4129/Del./2018
been passed without providing an adequate opportunity of
being heard and that addition of Rs. 28,20,828/- is
unjustified. The assessee also filed additional grounds of
appeal in which jurisdiction of the AO is challenged on the
ground that AO, Ward 54(4) Delhi has erred in transferring the
case to the ITO, Ward 4(4), Gurgaon without communicating
the reasons recorded to transfer the case u/s 127 of the Act.
The assessee also raised additional ground that assessment
had been framed without serving notice u/s 143(2) of the Act.
5. After considering the rival submission, I am of the view
that the matter requires reconsideration at the level of the Ld.
CIT(A). The AO records facts in the assessment order that
assessee filed required details and documents at assessment
stage. However, the explanation of assessee has not been
accepted on the finding therein many inconsistencies, that the
owner of the agricultural land were not produced for
examination, no reply to the notices u/s 133(6) of the Act have
been filed by the concerned parties. However, it is a fact that
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ITA.No.4129/Del./2018
assessee produced some documents before the AO in support
of claim of agricultural income. It was also explained before
AO that instead of showing net agricultural income in the
return of income assessee has shown gross agricultural
income. Revised computation income was also filed. Though
the assessee ultimately did not appear before Ld. CIT(A) and
Ld.CIT(A) decided the appeal of assessee ex-parte, the
Ld.CIT(A) recorded in his findings that appeal is decided on
merits on the basis of documents on record. However, the Ld.
CIT(A) without considering the documents on record passed
the order in summary manner dismissing the appeal of the
assessee without giving reasons for decision in the appellate
order as required by section 250(6) of the Act. The assessee in
the Paper Book has filed copies of the submissions and the
documents from pages 6 to 82, which were filed before the AO.
It would therefore, reveal that despite the documents were part
of the record, the Ld. CIT(A) without giving findings on the
same documents dismissed the appeal of the assessee without
giving reasons for decision on the same. The assessee also
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ITA.No.4129/Del./2018
filed affidavit in the Paper Book in which it is affirmed that for
the last date of hearing on 13.03.2018, no notice has been
served upon assessee or his Counsel. Therefore, it appears to
me that principle of natural justice have been violated in the
matter. No findings have also been given by the authorities
below as to whether the gross agricultural income is to be
taxed or the net agricultural income to be taxed for the
purpose of higher rate of tax. Therefore, order of the Ld.
CIT(A) cannot be sustained in law. The matter requires
reconsideration at the level of the Ld. CIT(A). In this view of
the matter, there is no need to adjudicate upon additional
grounds of appeal raised by the assessee and assessee would
be at liberty to raise such additional grounds before Ld. CIT(A),
if so, advised in accordance with law.
6. In this view of the matter, I set aside the impugned order
and restore the appeal of the assessee to the file of Ld.CIT(A)
with direction to re-decide appeal of the assessee strictly on
merits giving reasons for decision in the order by referring to
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ITA.No.4129/Del./2018
all documentary evidences on record of assessment. Ld.
CIT(A) shall give reasonable sufficient opportunity of being
heard to the assessee and the AO.
7. In the result, appeal of assessee is allowed for statistical
purposes.
Order pronounced in the open Court.
Sd/-
(BHAVNESH SAINI)
JUDICIAL MEMBER
Delhi.
Dated 24.10.2018
*Kavita Arora
Copy to
1. The appellant
2. The respondent
3. CIT(A) concerned
4. CIT concerned
5. D.R. ITAT `SMC' Bench, Delhi
6. Guard File.
// BY Order //
Assistant Registrar : ITAT Delhi Benches : Delhi.
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ITA.No.4129/Del./2018
Date of dictation 17.10.2018
Date on which the typed draft is placed before the dictating 24.10.2018
Member
Date on which the typed draft is placed before the Other Member
Date on which the approved draft comes to the Sr. PS/PS 24.10.18
Date on which the fair order is placed before the Dictating Member 24.10.18
for pronouncement
Date on which the fair order comes back to the Sr. PS/PS 24.10.18
Date on which the final order is uploaded on the website of ITAT 24.10.18
Date on which the file goes to the Bench Clerk 24.10.18
Date on which the file goes to the Head Clerk
The date on which the file goes to the Assistant Registrar for
signature on the order
Date of dispatch of the Order
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