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 Attachment on Cash Credit of Assessee under GST Act: Delhi HC directs Bank to Comply Instructions to Vacate

Sarvjeet Singh C/o Bal Bharti Sr. Secondary School, Aggarwal Colony Fatehabad, Haryana vs. ITO Ward-2 Fatehabad haryana
May, 31st 2019
                                        1                     ITA No. 2302/Del/2019

                        DELHI BENCH: `G' NEW DELHI


                      ITA No. 2302/DEL/2019 ( A.Y 2009-10)

       Sarvjeet Singh               Vs         ITO
       C/o Bal Bharti Sr. Secondary            Ward-2
       School,                                 Fatehabad
       Aggarwal Colony                         haryana
       Fatehabad, Haryana
       AJWPS4790A                               (RESPONDENT)

                   Appellant by     Sh. Piyush Kamal, Adv. Sh.
                                    Lalit Mohan, Adv
                   Respondent by    Sh. S. S. Rana, CIT(DR)

                     Date of Hearing            07.05.2019
                     Date of Pronouncement      31.05.2019


        This appeal is filed by the assessee against the order dated 28.01.2019
passed by CIT(A), Hisar for Assessment Year 2009-10.

2.      The grounds of appeal are as under:-

     "1.      That the order of the Learned Assessing Authority is bad in law
     against facts and equity.

     2. That Learned Assessing Authority made assessment u/s 144 without
     considering the facts, erred in calculating the income and without giving
     opportunity of being heard
                                         2                      ITA No. 2302/Del/2019

     3. That learned Assessing Authority was erred in making addition of Rs.
     5911400/- on account of deposit in bank

     4. That Learned Assessing Authority was erred in making addition of Rs.
     3829480/- on account of deposit of bank."

     3. The assessee and his wife Smt. Veerpal Kaur were maintaining a joint
account No. 06041930001326 with HDFC bank, Fatehabad. during the F.Y.
2008-09 relevant to A.Y. 2009-10, huge cash deposits of Rs. 59,11,400/- were
found made in his joint account on different dates and different amount. The
case of the assessee has selected through CASS and statutory notices were
issued. During the assessment proceeding Smt. Veerpal Kaur Submitted that
all the cash deposits entries in the said joint account pertain to her husband
Sh. Sarvjeet Singh. The fact was confirmed by Sh. Sarvjeet Singh and stated
vide affidavit that the transactions were related to him. Taking cognizance of
the statement of Sh. Sarvjeet Singh, the case of Smt. Verpal Kaur for the A.Y.
2009-10 was assessed at the returned income and no action with regard to the
source of said cash deposits entries were taken in her hands. Since, Sh.
Sarvjeet Singh has admitted the fact of operating the said joint account and
making the cash deposit in the said bank account the proceeding u/s 147, of
the Act were initiated and notice u/s 148 was issued on 28.03.2014 which was
served upon him on 29.03.2014 requiring the assessee to deliver the return of
income for the A.Y. 2009-10 within 30 days from the date of service of notice.
But the assessee failed to do so. Under these circumstances the Assessing
Officer was left with no alternative but to complete the time barring
assessment to the best of judgment u/s 144 of the Act. And made addition of
Rs. 59,11,400/- and Rs. 38,29,480/- u/s 68 of the Act in joint bank account
No. 06041930001326 and account No. 11117547994 respectively.

4.      Being aggrieved by the above, the assessee filed appeal before the CIT(A).
The CIT(A) dismissed the appeal of the assessee on account of non prosecution.
                                         3                      ITA No. 2302/Del/2019

5.    The Ld. AR submitted that the assessee has filed detailed reply before
the Assessing Officer as well as before the CIT(A) which was never considered
by both the Revenue Authorities. Therefore, both the orders are ex-parte and
principle of natural justice has not been properly followed.

6.    The Ld. DR submitted that ample opportunities were given by the
Assessing Officer as well as by the CIT(A). Therefore, the Assessing Officer has
rightly made additions and CIT(A) has rightly dismissed the appeal of the

7.    We have heard both the parties and perused the material available on
record.    The CIT(A) has dismissed the appeal of the assessee solely on the
ground that the assessee's representative has not appeared before the
authorities but on merit, the CIT(A) has not at all discussed and decided in
light of the reply filed by the assessee before the Assessing Officer as well as
before the CIT(A). Therefore, in the interest of justice, it will be appropriate to
remand back this matter to the file of the CIT(A) for fresh adjudication on
merits. Needless to say, the assessee be given proper opportunity of hearing
by following principles of natural justice and it will be an obligatory on part of
the assessee to cooperate the adjudicating/appellate authority by remaining
present at the time of hearing.

8.    In result, the appeal of the assessee is partly allowed for statistical
Order pronounced in the Open Court on 31st MAY, 2019.

     Sd/-                                                           Sd/-
(R. K. PANDA)                                             (SUCHITRA KAMBLE)
ACCOUNTANT MEMBER                                           JUDICIAL MEMBER

Dated: 31/05/2019
R. Naheed
                                            4                           ITA No. 2302/Del/2019

Copy forwarded to:

1.                          Appellant
2.                          Respondent
3.                          CIT
4.                          CIT(Appeals)
5.                          DR: ITAT

                                                         ASSISTANT REGISTRAR
                                                            ITAT NEW DELHI

                Date of dictation                                    06.05.2019

                Date on which the typed draft is placed before the 07.05.2019
                dictating Member

                Date on which the typed draft is placed before the
                Other Member

                Date on which the approved draft comes to the Sr.

                Date on which the fair order is placed before the
                Dictating Member for pronouncement

                Date on which the fair order comes back to the Sr.    .05.2019

                Date on which the final order is uploaded on the      .05.2019
                website of ITAT

                Date on which the file goes to the Bench Clerk        .05.2019

                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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