Avtar Singh, New Delhi vs Assessee

CO No. 341/Del/2011 : Asstt. Year : 2008-09 Shri Avtar Singh, Vs Income Tax Officer, BF-119, Shalimar Bagh, Ward 43(4), New Delhi New Delhi (APPELLANT) (RESPONDENT) PAN No. AIJPS3484N Assessee by : Sh. K. P. Ganguli, Adv. Revenue by : Smt. Parwinder Kaur, Sr. DR Date of Hearing : 12.01.2015 Date of Pronouncement : 12.01.2015

ORDER

Per Bench:

The appeal by the department and the Cross Objection by the assessee are directed against the order dated 30.06.2011 of ld. CIT(A)-XXX, New Delhi.

2. Firstly we will deal with the Cross Objection i.e. CO No. 341/Del/2011 filed by the assessee. In the Cross Objection the only ground raised read as under:

"That, on the facts and in the circumstances of the case CIT (Appeals)-XXX was not justified in not 2 ITA No. 4092 & CO 341/Del/2011 Avtar Singh

adjudicating on the third ground of appeal and declaring the order passed by the Appellant dt. 30.12.2010 u/s 143(3) of the Income Tax Act, 1961 as invalid."

3. During the course of hearing the ld. Counsel for the assessee submitted that the assessee raised specific ground before the ld. CIT(A) stating therein that the addition was made by the AO without confronting the assessee with the documents relied upon and thereby violating the principle of natural justice. It was contended that a proper opportunity of being heard was not provided to the assessee by the AO and the ld. CIT(A) had not adjudicated the issue.

4. In his rival submissions the ld. DR supported the order of the AO but could not controvert the aforesaid contention of the ld. Counsel for the assessee.

5. After considering the submissions of both the parties and the material on record, it is noticed that the assessee raised the following grounds before the ld. CIT(A):

"That, on the facts and in the circumstances of the case, ITO Ward 43(4) was not justified in making addition of Rs. 2.54 crore on protective basis relying on the letter dated 23.01.2009 received by the CIT-XIII, New Delhi from Secretary to REIC, Delhi Zone and Addl. Commissioner of Custom. That, on the facts and in the circumstances of the case, ITO Ward 43(4) was not justified in making the above said addition without confronting the appellant with the documents relied 3 ITA No. 4092 & CO 341/Del/2011 Avtar Singh

upon and thereby violating the principles of natural justice and rendering the impugned order invalid."

6. However, the ld. CIT(A) had not adjudicated the second ground vide which the assessee had stated that there was violation of principle of natural justice, since, the documents relied upon were not confronted to the assessee. We, therefore, set aside this issue back to the file of the ld. CIT(A) for adjudication. Since the issue is remanded back to the ld. CIT(A), the ground raised by the department in its appeal being co- related to the issue agitated by the assessee, is also remanded back to the ld. CIT(A) to be adjudicated afresh in accordance with law after providing due and reasonable opportunity of being heard.

7. In the result, the appeal of the department and the Cross Objection of the assessee are allowed for statistical purposes. (Order Pronounced in the Court on 12/01/2015)

Sd/- Sd/-

(George George K.) (N. K. Saini) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated: 12/01/2015 *Subodh* Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5.DR: ITAT ASSISTANT REGISTRAR