Arunachalam Anbuvanan, CHENNAI V. ITO Non Corporate Ward 15(1), CHENNAI

ITA 1013/CHNY/2019

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 6687 (ITAT-CHENNAI)
• Duration Of Justice: 3 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-07-2019
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: C
• Assessment Year: 2014-2015
• Appeal Filed On: 11-04-2019
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: R CLEMENT RAMESH KUMAR
• Keywords: Unexplained cash credit; Opportunity of being heard

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH: CHENNAI , , ' BEFORE SHRI GEORGE MATHAN , JUDICIAL MEMBER AND SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER ./ ITA NO.1013/CHNY/2019 /ASSESSMENT YEAR: 2014-15 SHRI ARUNACHALAM ANBUVANAN , NO.7,13 TH CROSS STREET, SHASTRI NAGAR,ADYAR,CHENNAI.600020. VS. INCOME TAX OFFICER, NON-CORPORATE WARD 15(1), CHENNAI. [ PAN: AEQPA 5355 N ] ( ) /APPELLANT) ( *+) /RESPONDENT) ) , / APPELLANT BY : MR. SAROJ KUMAR PARIDA, ADVOCATE *+) , /RESPONDENT BY : MR.R.CLEMENT RAMESH KUMAR, ADDL. C.I.T D.R , /DATE OF HEARING : 29.07.2019 , /DATE OF PRONOUNCEMENT : 31.07.2019 / O R D E R PER INTURI RAMA RAO, ACCOUNTANT MEMBER : THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST TH E ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS)-15, CHENNAI, D ATED 29.01.2019 FOR THE ASSESSMENT YEAR 2014-15. 2. THE ASSESSEE RAISED THE FOLLOWING GROUNDS OF APPE AL: ITA NO.1013/CHNY/2019 :- 2 -: 1. THE ORDER OF THE COMMISSIONER OF INCOME-TAX (APP EALS) IS CONTRARY TO LAW, FACTS AND CIRCUMSTANCES OF THE CASE. 2. THE COMMISSIONER OF INCOME TAX (APPEALS) ERRED I N DISMISSING THE APPEAL WITHOUT GIVING SUFFICIENT OPPORTUNITY OF BEING HEAR D TO THE APPELLANT. 3. THE COMMISSIONER OF INCOME TAX (APPEALS) ERRED I N CONFIRMING THE ADDITION OF RS.8,15,8581 - TO THE TOTAL INCOME BEING THE AMO UNT SHOWN AS SUNDRY CREDITOR IN THE BALANCE SHEET. 3.1 THE COMMISSIONER OF INCOMETAX (APPEALS) OUGHT T O HAVE APPRECIATED THAT THE ASSESSEE WAS A PARTNER IN A FIRM CALLED MATHIVA NAN AGENCY AND THE BALANCE OF RS.8, 15,8581 - REPRESENT THE AMOUNT DUE TO THE FIRM BY THE ASSESSEE. THE FIRM WAS DISSOLVED AND THE ASSESSEE T OOK OVER THE FIRM WITH IT'S ASSETS AND LIABILITIES. THE BALANCE OF RS.8,15,8581 - IS ONLY A CAPITAL TO HIM AND NOT A LOAN. 4. THE COMMISSIONER OF INCOME TAX (APPEALS) ERRED I N CONFIRMING A SUM OF RS.90,66,543/- AS UNEXPLAINED CASH CREDITS U/S.68 O F THE ACT. 4.1 THE COMMISSIONER OF INCOME TAX (APPEALS) OUGHT TO HAVE APPRECIATED THAT ASSESSEE VIDE LETTER DT 15.12.2016 FURNISHED T HE LEDGER ACCOUNTS OF THE LOAN PARTIES; NAME, ADDRESS AND PAN AND RECONCILIAT ION OF LOANS RECEIVED WITH BANK STATEMENT. 4.2 THE COMMISSIONER OF INCOME TAX (APPEALS) OUGHT TO HAVE APPRECIATED THAT ASSESSEE HAS EXPLAINED THE NATURE AND SOURCE OF CRE DITS FOUND IN THE BOOKS. MERELY BECAUSE SOME OF THE CREDITORS DID NOT RESPON D TO THE NOTICE U/S.133(6) THE SAME CANNOT BE TREATED AS UNEXPLAINE D CREDITS IN THE HANDS OF ASSESSEE. 4.3 THE COMMISSIONER OF INCOME-TAX (APPEALS) OUGHT TO HAVE APPRECIATED THAT THE ASSESSEE HAS OBTAINED THE LOAN THROUGH A MEDIATOR WHO HAD TAKEN COMMISSION FROM THE ASSESSEE. ALL THE LOANS CARRY I NTEREST WHICH WAS PAID BY ACCOUNT PAYEE CHEQUE. 4.4 THE COMMISSIONER OF INCOME TAX (APPEALS) OUGHT TO HAVE GRANTED FURTHER TIME FOR GETTING THE CONFIRMATION FROM THE CREDITOR S. ITA NO.1013/CHNY/2019 :- 3 -: 3. THE BRIEF FACTS OF THE CASE ARE THAT THE APPELLANT-ASSESSEE NAMELY SHRI ARUNACHALAM ANBUVANAN, IS AN INDIVIDUAL, A DEALER OF INDIAN OIL CORPORATIO N AND IS IN THE BUSINESS OF CONSTRUCTION OF RESIDENTI AL PROJECTS. THE RETURN OF INCOME FOR THE ASSESSMENT YEAR 2014-15 WAS FILED ON 30.11.2014 DECLARING TOTAL INCOME OF RS.17,69,950/-. AGAINST THE SAID RETURN OF INCOME, THE ASSESSMENT WAS COMPLETED BY THE INCOME TAX OFFICER, NON CORPORATE WARD 15(1),CHENNAI (HEREINAFTER REFERRED AS AO') VID E ORDER DATED 28.12.2016 PASSED U/S.143(3) OF THE INCOME TAX ACT, 1961 (IN SHORT THE ACT) AT TOTAL INCOME OF RS.1,16,89,280/- AFTER MAKING CERTAIN ADD ITIONS OF RS.90,50,000/- AS UNEXPLAINED CASH CREDITS U/S.68 OF THE ACT, AND OF RS.8,15,8581/- TO THE TOTAL INCOME BEING THE AMOUNT SHOWN AS SUNDRY CREDITOR I N THE BALANCE SHEET. BEING AGGRIEVED BY ADDITIONS MADE BY ASSESSING OFFI CER, THE ASSESSEE PREFERRED AN APPEAL BEFORE THE LD.CIT(A), WHO VIDE HIS ORDER DISMISSED THE APPEAL EXPARTE. BEING AGGRIEVED WITH THE ORDER OF THE LD.CIT(A), THE ASSESSEE IS BEFORE US IN THE PRESENT APPEAL. 4. IT IS SUBMITTED BY LD.AR BEFORE US THAT WHEN TH E APPEAL WAS POSTED FOR 21.01.2019 FOR DISPOSAL, AN ADJOURNMENT PETITIO N WAS FILED BEFORE LD.CIT(A) AND DESPITE THE ADJOURNMENT PETITION, THE LD.CIT(A) PROCEEDED WITH THE DISPOSAL OF THE MATTER WITHOUT GIVING SUF FICIENT OPPORTUNITIES. IT IS SUBMITTED THAT THE MATTER MAY BE RESTORED TO THE FILE OF LD.CIT(A) FOR FRESH CONSIDERATION IN ACCORDANCE WITH LAW. ITA NO.1013/CHNY/2019 :- 4 -: 5. ON THE OTHER HAND, SENIOR LD.DR HAS NO SERIOUS OBJECTIONS. 6. WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. CONSIDERING THE SUBMISSIONS OF BOTH THE PARTIES, WE ARE OF THE CONSIDERED OPINION THAT THE MATTER REMIS SION BACK TO THE FILE OF LD.CIT(A) FOR DENOVO ADJUDICATION IN ACCORDANCE WIT H LAW AFTER GIVING IN REASONABLE OPPORTUNITY OF BEING HEARD TO THE ASSESS EE. 6. IN THE RESULT, APPEAL OF ASSESSEE IS PARTLY ALL OWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED ON THE 31 ST JULY, 2019 IN CHENNAI. SD/- SD/- ( ) (GEORGE MATHAN) /JUDICIAL MEMBER ( ) ( INTURI RAMA RAO ) /ACCOUNTANT MEMBER /CHENNAI, 3 /DATED: 31 ST JULY, 2019. K S SUNDARAM , *45 65 /COPY TO: 1. ) /APPELLANT 4. 7 /CIT 2. *+) /RESPONDENT 5. 5 * /DR 3. 7 ( ) /CIT(A) 6. /GF