Sri. Vinod N Patil, Dharwad V. ITO, Hubli

ITA 1064/BANG/2016

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 9410 (ITAT-BANGALORE)
• Duration Of Justice: 3 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-08-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2009-2010
• Appeal Filed On: 25-05-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DR K SHANKAR PRA SAD
• Assessee Lawyers: MALLAH A RAO K
• Keywords: Additional evidence; Corroborative evidences
• Section: 80C

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL BANGALORE BENCH A BEFORE SHRI VIJAY PAL RAO , JUDICIAL MEMBER I.T.A. NO. 1064 /BANG/201 6 (ASSESSMENT YEAR : 200 9 - 10 ) SHRI VINOD N PATIL, CHAITRA KUSUMA BUILDING, 2 ND CROSS, RANI CHENNAMMA NAGAR, DHARWAD. VS. INC OME TAX OFFICER, WARD 2(1), HUBLI. APPELLANT RESPONDENT. APPELLANT BY : SHRI MALLAH A RAO K , ADVOCATE. RESPONDENT BY : DR. K. SHANKAR PRASAD, JCIT (D.R) DATE OF H EARING : 18.08.2016. DATE OF P RONOUNCEMENT : 31. 8. 201 6 . O R D E R PER SHRI VIJAY P AL RAO, J. M. : THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER DT.16.3.2016 OF COMMISSIONER OF INCOME TAX (APPEALS) , HUBLI FOR THE ASSESSMENT YEAR 2009 - 10. 2. THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS: 1. THE ORDER OF THE HON'BLE CIT (APPEALS), HUBLI IS OPPOSED TO LAW AND FACTS OF THE CASE. 2. THE HON'BLE CIT (APPEALS) ERRED IN UPHOL DING THE ADDITIONS MADE IN A SUM OF RS.6,71,844. 2 ITA NO. 1064 /BANG/ 16 3. THE HON'BLE CIT (APPEALS) OUGHT TO HAVE DELETED THE ENTIRE ADDITION OF RS.6,71,844 MADE BY THE ASSESSING OFFICER. 4. ALTERNATIVELY AND WITHOUT PREJUDICE THE HON'BLE CIT (APPEALS) OUGHT TO HAVE DIRECTED THE ADDITION OF ONLY THE GROSS PROFIT AND NOT THE WHOLE OF THE AMOUNT OF RS.6,71,844. 5. THE HON'BLE CIT (APPEALS) OUGHT TO HAVE GRANTED THE STATUTORY DEDUCTIONS CLAIMED UNDER SECTION 24 AND UNDER SECTION 80C OF THE ACT. 6. THE APPELLANT CRAVES FOR LEAV E TO ADD TO, DELETE FROM OR AMEND THE GROUNDS OF APPEAL. 3. THE ASSESSEE IS A DEALER IN ELECTRONIC GOODS. THE ASSESSEE FILED HIS RETURN OF INCOME ON 31.7.2009 SHOWING AN INCOME OF RS.1,63,650. IN THE COURSE OF SCRUTINY ASSESSMENT PROCEEDINGS THE ASSESSING OFFICER FOUND THAT THE ASSESSEE HAS NOT MAINTAINED ANY BOOKS. THE ASSESSING OFFICER FOUND THAT THE ASSESSEE HAS MADE SEVERAL DEPOSITS ON VARIOUS D ATES AND ALSO MADE PAYMENT BY CHEQUE / CASH. THE ASSESSEE EXPLAINED THAT THEY ARE OUT OF SALE PRO CEEDS CREDITED IN BANK ACCOUNT AND ALSO INCOME FROM AGRICULTURE. THE ASSESSING OFFICER DID NOT ACCEPT THE EXPLANATION OF THE ASSESSEE AND MAKE THE ADDITION OF PEAK CASH BALANCE OF RS.6,71,344 FOR WHICH NO EXPLANATION WAS FURNISHED BY THE ASSESSEE. THE AS SESSEE CHALLENGED THE ACTION OF THE ASSESSING OFFICER BEFORE THE CIT (APPEALS) BUT COULD NOT SUCCEED. 3 ITA NO. 1064 /BANG/ 16 4. BEFORE THE TRIBUNAL, THE LEARNED AUTHORISED REPRESENTATIVE OF THE ASSESSEE HAS SUBMITTED THAT THE CIT (APPEALS) HAS CONFIRMED THE ADDITION MADE BY THE ASSESSING OFFICER ON THE GROUND THAT THE ASSESSEE HAS FAILED TO PRODUCE THE RELEVANT DETAILS AND DOCUMENTS COMPRISING PROFIT AND LOSS ACCOUNT, LEDGER ACCOUNT OF PURCHASES & SALES AND BANK ACCOUNT COPY. THE LEARNED AUTHORISED REPRESENTATIVE HAS FURTHE R SUBMITTED THAT DUE TO THE CLOSURE OF THE BUSINESS THE ASSESSEE WAS NOT IN A POSITION TO PRODUCE THE RELEVANT RECORD AS REQUIRED BY THE CIT (APPEALS). HOWEVER THE ASSESSEE HAS NOW PRODUCED THE RELEVANT RECORD AND IS SEEKING THE PERMISSION OF THE TRIBUNAL TO PRODUCE THE ADDITIONAL EVIDENCE VIDE APPLICATION UNDER RULE 29 OF THE ITAT RULES, 1963. THUS THE LEARNED AUTHORISED REPRESENTATIVE OF THE ASSESSEE HAS PLEADED THAT THE ADDITIONAL EVIDENCE FILED BY THE ASSESSEE MAY BE ADMITTED IN SUPPORT OF THE CLAIM A ND THE MATTER MAY BE REMANDED FOR VERIFICATION OF THE SAME. 5. ON THE OTHER HAND, THE LD. DR HAS VEHEMENTLY OPPOSED THE ADMISSION OF THE ADDITIONAL EVIDENCE AND SUBMITTED THAT WHEN THE ASSESSING OFFICER AS WELL AS CIT (APPEALS) GRANTED SUFFICIENT OPPO RTUNITY TO THE ASSESSEE TO PRODUCE THE EVIDENCE IN SUPPORT OF THE CLAIM AND THE ASSESSEE FAILED TO SUBMIT AN Y SUPPORTING EVIDENCE THEN THE ADDITIONAL EVIDENCE SOUGHT TO BE PRODUCED AT THIS 4 ITA NO. 1064 /BANG/ 16 STAGE SHALL NOT BE ALLOWED. HE HAS RELIED UPON THE ORDERS OF THE A UTHORITIES BELOW. 6. HAVING CONSIDERED THE RIVAL SUBMISSIONS AS WELL AS THE RELEVANT MATERIAL ON RECORD, IT IS NOTED THAT THE CIT (APPEALS) HAS ASKED THE ASSESSEE TO PRODUCE THE RELEVANT RECORD BUT THE ASSESSEE FAILED TO PRODUCE THE SAME AND ACCORDINGL Y THE ADDITION MADE BY THE ASSESSING OFFICER WAS CONFIRMED. THE RELEVANT PART OF THE CIT (APPEALS) IS AS UNDER : IT IS FOUND FROM THE GROUNDS OF APPEAL THAT THE ASSESSEE HAS CONTESTED THE ADDITIONS MADE OF RS.6,77,844 ONLY AND HAS ACCEPTED THE OTHER AD DITIONS MADE OF RS.1,36,204 PLUS RS.62,165 AND RS.50. THE CASE WAS POSTED FOR HEARING ON 19.1.2016 WHEN SRI K. PRABHAKAR RAO, A.R. OF THE ASSESSEE APPEARED. HE WAS ASKED TO FILE P&L ACCOUNT, LEDGER ACCOUNT OF PURCHASES AND SALES AND BANK ACCOUNTS COPIES. THE CASE WAS ADJOURNED TO 25.1.2016. SINCE NO ONE ATTENDED ON THIS DAY OF THE CASE WAS REPOSTED ON 8.3.16, WHEN SRI K. PRABHAKAR RAO, AR OF THE ASSESSEE, ATTENDED. HE EXPRESSED HIS INABILITY TO FILE THE DETAILS CALLED FOR ON 19.1.2016 AS THEY ARE NOT A VAILABLE. AS IT IS CLEAR FROM THE IMPUGNED ORDER THAT THE CIT (APPEALS) ASKED THE ASSESSEE TO FILE PROFIT AND LOSS ACCOUNT, LEDGER ACCOUNT OF PURCHASES AND S ALES & BANK ACCOUNT COPIES BUT ASSESSEE DID NOT PRODUCE. NOW THE ASSESSEE HAS FILED AN APPLICAT ION UNDER RULE 29 OF ITAT RULES AND ALSO FILED THE ADDITIONAL EVIDENCE COMPRISING THE PROFIT AND LOSS ACCOUNT, BANK ACCOUNT, ETC. THE ASSESSEE HAS 5 ITA NO. 1064 /BANG/ 16 EXPLAINED THE REASON FOR NON - PRODUCTION OF THE DOCUMENT BEFORE THE AUTHORITIES BELOW DUE TO THE CLOSURE OF T HE BUSINESS. IN VIEW OF THE ABOVE FACTS AND CIRCUMSTANCES AS WELL AS IN THE INTEREST OF JUSTICE THE MATTER IS SET ASIDE TO THE RECORD OF THE CIT (APPEALS) TO DECIDE THE SAME AFRESH AFTER CONSIDERING THE ADDITIONAL EVIDENCE FILED BY THE ASSESSEE. 7. I N THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSE. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 31 ST DAY OF AUG., 201 6 . S D / - (VIJAY PAL RAO) JUDICIAL MEMBER *REDDY GP COPY TO : 1. APPELLANT 2. RESPONDENT 3. C.I.T. 4. CIT(A) 5. DR, ITAT, BANGALORE. 6. GUARD FILE. BY ORDER ASST. REGISTRAR, ITAT, BANGALORE