Sri Chanchal Garg, Jamshedpur V. DCIT, Jamshedpur

ITA 105/RAN/2016

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 0013 (ITAT-RANCHI)
• Duration Of Justice: 8 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-12-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2010-2011
• Appeal Filed On: 07-04-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: CHAUDHURY ORAM
• Assessee Lawyers: M K CHOWDHARY
• Keywords: Principle of natural justice

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, RANCHI SMC BENCH, RANCHI BEFORE SHRI N.S SAINI, ACCOUNTANT MEMBER ITA NO.145/RAN/2015 ASSESSMENT YEAR : 2004 - 05 SRI UDAY PRATAP SINGH SUDNA, NEAR GAYATRI MANDIR ROAD, DALTONGANJ VS. ITO, WARD - 3(4), DALTONGANJ PAN/GIR NO. APOPS 6127 D (APPELLANT ) .. ( RESPONDENT ) ASSESSEE BY : SHRI M.K.CHOWDHARY , AR REVENUE BY : SHRI CHAUDHURY ORAM , DR DATE OF HEARING : 13 /12/ 2016 DATE OF PRONOUNCEMENT : 13 /12/ 2016 O R D E R THIS IS AN APPEAL FILED BY THE ASSESSEE AGA INST THE ORDER OF CIT(A) - RANCHI , DATED 24.2.2015 , FOR THE ASSESSMENT YEAR 2004 - 05 . 2. THE ASSESSEE HAS TAKEN THE FOLLOWING GROUNDS OF APPEAL: 1.FOR THAT THE EXPARTE ORDER PASSED BY LD CIT(A) WAS NOT JUSTIFIED. NO REASONABLE OPPORTUNITY WAS GIVEN TO THE APPELLANT FOR HEARING WHICH WAS AGAINST THE NATURAL JUSTICE. AS SUCH THE ORDER PASSED BY LD CIT(A) IS AB - INITIO VOID. 2. FOR THAT THE LD CIT(A) WAS NOT JUSTIFIED FOR NOT ALLOWING STANDARD DEDUCTION OF RS.25,446/ - ON SALARY. THE APPELLANT WAS EMPLOYEE OF BIHAR STATE CO - OPERATIVE HOUSING SOCIETY, WHICH 2 ITA NO.145/RAN/2015 ASSESSMENT YEAR :2004 - 05 WAS STATE GOVERNMENT OWNED CO - OPERATIVE SOCIETY. FURTHER, LD CIT(A) WAS NOT APPRECIATED THAT THE FACT SINCE THERE WAS NO TDS DEDUCTED, AS SUCH TAN NO. MENTIONED IN TDS CERTIFICATE HAVING NO SI GNATURE. 3. FOR THAT THE LD CIT(A) WAS NOT JUSTIFIED IN CONFIRMING THE ADDITION OF RS.1,00,000/ - AS AGRICULTURAL INCOME TREATED AS INCOME FROM OTHER SOURCES. THE LD CIT(A) NOT APPRECIATED THE FACT THAT APPELLANT IS AGRICULTURIST SINCE LONG BACK AND HAVING SUFFICIENT LAND FOR PRODUCING AGRICULTURAL INCOME. THE DISALLOWANCE IS THEREFORE ARBITRARY, UNJUSTIFIED AND ILLEGAL. 4. FOR THAT THE LD CIT(A) WAS NOT JUSTIFIED FOR CONFIRMING THE ADDITION MADE U/S.69C OF RS.1,96,000/ - AS EXPENDITURE INCURRED ON AGRICULTU RE TREATED AS INCOME FROM OTHER SOURCES. THE APPELLANT IS A SMALL FARMER AND NO BOOKS OF ACCOUNT MAINTAINED FOR AGRICULTURAL INCOME. ALMOST ALL THE INCOME RECEIVED AND EXPENDITURE MADE ON CASH BASIS. THE DISALLOWANCE IS THEREFORE ARBITRARY, UNJUSTIFIED A ND ILLEGAL. 5. FOR THAT THE LD CIT(A) WAS NOT JUSTIFIED FOR CONFIRMING THE ADDITION OF RS.70,000/ - BEING DEPOSIT MADE IN SB A/C NO.7668 OF THE CENTRAL BANK OF INDIA, DALTONGANJ BRANCH. THE ASSESSING OFFICER NOT JUSTIFIED FOR NOT APPRECIATING THE FACT THAT D EPOSIT MADE OUT OF WITHDRAWAL FROM THE BANK, AS SUCH ADDITION MADE IS BASELESS, ARBITRARY AND ILLEGAL. 6. FOR THAT DISALLOWANCE WAS MADE IN ADHOC MANNER WITHOUT APPRECIATING FATS AND DETAILS. DISALLOWANCES WERE MADE FOR THE SAKE OF MAKING THE DISALLOWANC ES SINCE THE ORDER WAS PASSED U/S.143(3)/263. 7. FOR THAT THE ASSESSING OFFICER WAS NOT JUSTIFIED TO CHARGE INTEREST U/S.234B ON ASSESSED INCOME. FOLLOWING THE DECISION OF HON'BLE JHARKHAND HIGH COURT, INTEREST U/S.234B CAN ONLY BE CHARGED ON RETURNED IN COME NOT ON ASSESSED INCOME. 3. AT THE OUTSET, LD A.R. OF THE ASSESSEE SUBMITTED THAT AS WILL BE OBSERVED FROM PARA 4 OF THE ORDER OF THE LD CIT (A) THAT THE CASE WAS FIXED FOR HEARING ON 5.9.2013,10.11.2014, 12.1.2015 AND 12.2.2015 AND NONE APPEARED ON THE DATES FIXED FOR HEARING. THEREFORE, THE APPEAL WAS DISPOSED OF BY THE LD CIT(A) BY DISMISSING THE APPEAL OF THE ASSESSEE. IT 3 ITA NO.145/RAN/2015 ASSESSMENT YEAR :2004 - 05 WAS HIS SUBMISSION THAT NON - COMPLIANCE BEFORE THE CIT(A) WAS NOT DELIBERATE AND MALAFIDE. THE ASSESSEE WAS SERIOUSLY ILL AND , THEREFORE, COULD NOT APPEAR BEFORE THE LD CIT(A). HE SUBMITTED THAT ONE MORE OPPORTUNITY SHOULD BE ALLOWED TO THE ASSESSEE TO PRESENT ITS APPEAL BEFORE THE LD CIT(A). 4. ON THE OTHER HAND, LD D.R. SUPPORTED THE ORDER OF LD CIT(A). 5. AFTER GOING THROUGH THE ORDERS OF LOWER AUTHORITIES AND MATERIALS ON RECORD, I FIND THAT THE APPEAL OF THE ASSESSEE WAS DISMISSED BY THE LD CIT(A) AS THE ASSESSEE FAILED TO COMPLY WITH THE NOTICE OF HEARING ON 5 .9.2013, 10.11.2014, 12.1.2015 AND 12.2.2015. BEFORE ME, LD A.R. PRAYED THAT IF ONE OPPORTUNITY IS GIVEN TO THE ASSESSEE, THE ASSESSEE WILL PRESENT ITS CASE BEFORE THE LD CIT(A). HENCE, I AM OF THE CONSIDERED OPINION THAT NO HARM WILL BE CAUSED TO THE REVENUE IF ONE MORE OPPORTUNITY IS GRANTED TO T HE ASSESSEE BY RESTORING THE MATTER BACK TO THE FILE OF THE LD CIT(A) FOR ADJUDICATING THE APPEAL OF THE ASSESSEE AFRESH AFTER ALLOWING REASONABLE AND PROPER OPPORTUNITY OF HEARING TO BOTH THE PARTIES. I, THEREFORE, SET ASIDE THE ORDER OF LD CIT(A) AND RE MAND THE MATTER BACK TO HIS FILE TO ADJUDICATE THE APPEAL OF THE ASSESSEE AFRESH AFTER ALLOWING REASONABLE AND PROPER OPPORTUNITY OF HEARING TO BOTH THE PARTIES. 4 ITA NO.145/RAN/2015 ASSESSMENT YEAR :2004 - 05 6. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. . ORDER PRO NOUNCED IN THE OPEN COURT ON 13 /12/2016 IN THE PRESENCE OF PARTIES. S D / - (N.S SAINI) A CCOUNTANT MEMBER RANCHI ; DATED 13 /12 /2016 B.K.PARIDA, SPS COPY OF THE ORDER FORWARDED TO : BY ORDER, SR.PS, ITAT, CAMP AT RANCHI 1. THE APPELLANT : SRI UDAY PRATAP SINGH SUDNA, NEAR GAYATRI MANDIR ROAD, DALTONGANJ 2. THE RESPONDENT. ITO, WARD - 3(4), DALTONGANJ 3. THE CIT(A) RANCHI 4. CIT , RANCHI 5. DR, ITAT, RANCHI 6. GUARD FILE. //TRUE COPY//