ACIT, CHENNAI V. K.N.Rahmmatulla, Tirunelveli

ITA 1075/CHNY/2013

• Counselvise Citation: [2019] 115 COUNSELVISE.COM (IT) 9504 (ITAT-CHENNAI)
• Duration Of Justice: 6 year(s) 4 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-09-2019
• Appeal Filed By: Department
• Order Result: Partly Allowed
• Bench Allotted: D
• Assessment Year: 2004-2005
• Appeal Filed On: 21-05-2013
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: A SASI KUMAR
• Assessee Lawyers: A S SRIRAMAN
• Keywords: Unexplained investment; Opportunity of being heard
• Section: 143(3); 153A; 132

Judgement Text

, , IN THE INCOME-TAX APPELLATE TRIBUNAL D BENCH, CHENNAI . , , BEFORE SHRI DUVVURU RL REDDY, JUDICIAL MEMBER & SHRI S. JAYARAMAN, ACCOUNTANT MEMBER ./ I.T.A.NO.1075/CHNY/2013 / ASSESSMENT YEAR :2004-05 THE ASSISTANT COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE II(3), 46, NUNGAMBAKKAM HIGH ROAD, CHENNAI. VS. SHRI K.N. RAHAMMATULLA, 133, MOOLAN AHMED PILLAI STREET, MELAPALAYAM, TIRUNELVELLI 627 005. [PAN:AAOPR6769J] ( /APPELLANT ) ( / RESPONDENT ) / APPELLANT BY : SHRI A. SASIKUMAR, JCIT / RESPONDENT BY : SHRI A.S. SRIRAMAN, ADVOCATE / DATE OF HEARING : 01.08.2019 /DATE OF PRONOUNCEMENT : 24.09.2019 / O R D E R PER DUVVURU RL REDDY, JUDICIAL MEMBER: THIS APPEAL FILED BY THE REVENUE IS DIRECTED AGAINST THE ORDER OF THE LD. COMMISSIONER OF INCOME TAX (APPEALS) I, CHENNAI DATED 08.01.2013 RELEVANT TO THE ASSESSMENT YEAR 2004-05. THE GROUNDS RAISED BY THE REVENUE ARE THAT THE LD. CIT(A) HAS ERRED IN DELETING THE ADDITION OF .50 LAKHS AS WELL AS DELETING THE ADDITION OF .20,00,000/- RELATING TO THE JEWELLERY. 2. THE ASSESSEE IS AN INDIVIDUAL ENGAGED IN THE BUSINESS OF RUNNING A I.T.A. NO.1075/CHNY/13 2 JEWELLERY SHOP BY NAME RAHMAT JEWELLERS. HE WAS ALSO A PARTNER IN M/S. JEWEL PALACE AS ALSO NACHYAR SUPERMARKET. A SEARCH UNDER SECTION 132 OF THE INCOME TAX ACT, 1961 [ACT IN SHORT] WAS CONDUCTED IN THE RESIDENCE OF THE ASSESSEE AS A CONNECTED CASE OF SHRI MAYA VENKATESAN, WHO WAS ALSO A DIRECTOR IN NELLAI CEMENTS AS WAS THE ASSESSEE. PROCEEDINGS UNDER SECTION 153A OF THE ACT WERE INITIATED IN RESPONSE TO WHICH, THE ASSESSEE FILED THE RETURN OF INCOME FOR THE ASSESSMENT YEAR 2004-05 DECLARING AN INCOME OF .3,48,390/- AND THE ASSESSMENT WAS COMPLETED UNDER SECTION 143(3) R.W.S. 153A OF THE ACT BY MAKING AN ADDITION OF .50.00 LAKHS ON PROTECTIVE BASIS AND .20.00 LAKHS BY WAY OF INVESTMENT IN JEWELLERY. 3. THE ASSESSEE CARRIED THE MATTER IN APPEAL BEFORE THE LD. CIT(A). AFTER CONSIDERING THE SUBMISSIONS OF THE ASSESSEE AND FACTS OF THE CASE, THE LD. CIT(A) DELETED BOTH THE ADDITIONS. 4. AGGRIEVED, THE REVENUE IS IN APPEAL BEFORE THE TRIBUNAL. THE LD. DR HAS SUBMITTED WITH REGARD TO ADDITION MADE ON PROTECTIVE BASIS THAT THE SUBSTANTIVE ADDITION MADE IS UNDER APPEAL IS PENDING BEFORE THE LD. CIT(A) AND THE ISSUE HAS NOT BECOME FINAL. THUS, THE DELETION OF ADDITION BY THE LD. CIT(A) IS PREMATURE. ON THE OTHER HAND, THE LD. COUNSEL PRAYED THAT THE ISSUE MAY BE REMITTED BACK TO THE FILE OF THE LD. CIT(A) FOR I.T.A. NO.1075/CHNY/13 3 READJUDICATION ALONG WITH THE CASE OF SHRI MAYA VENKATESAN IN WHOSE HANDS SUBSTANTIVE ADDITION OF .50 LAKHS HAS BEEN MADE AND PENDING FOR ADJUDICATION. 5. WE HAVE HEARD BOTH THE SIDES, PERUSED THE MATERIALS AVAILABLE ON RECORD AND GONE THROUGH THE ORDERS OF AUTHORITIES BELOW. IN THIS CASE, DURING THE COURSE OF ASSESSMENT IN THE CASE OF SHRI MAYA VENKATESAN, AGAINST THE LOAN CREDIT OF .50.00 LAKHS, THE ASSESSING OFFICER HAS MADE SUBSTANTIVE ADDITION AS WELL AS IN ASSESSEES CASE, THE ADDITION TOWARDS INVESTMENT WAS MADE ON PROTECTIVE BASIS. SINCE THE ADDITION ON SUBSTANTIVE BASIS IN THE CASE OF SHRI MAYA VENKATESAN IS PENDING FOR ADJUDICATION BEFORE THE LD. CIT(A), SIMILAR ADDITION IN THE HANDS OF THE ASSESSEE ON PROTECTIVE BASIS IS REMITTED BACK TO THE FILE OF THE LD. CIT(A) FOR FRESH ADJUDICATION ALONG WITH THE CASE OF SHRI MAYA VENKATESAN AND DECIDE ISSUE IN ACCORDANCE WITH LAW AFTER ALLOWING AN OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. 6. WITH REGARD TO THE ADDITION OF .20.00 LAKHS WORTH OF JEWELLERY BEING TREATED AS UNEXPLAINED INVESTMENT, THIS ISSUE IS INTERCONNECTED WITH THE ADDITION OF .50.00 LAKHS MADE PROTECTIVELY. ACCORDINGLY, WE REMIT THIS ISSUE ALSO TO THE FILE OF THE LD. CIT(A) FOR FRESH ADJUDICATION ALONG WITH MAIN ADDITION BY AFFORDING AN OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. I.T.A. NO.1075/CHNY/13 4 7. IN THE RESULT, THE APPEAL FILED BY THE REVENUE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED ON THE 24 TH SEPTEMBER, 2019 AT CHENNAI. SD/ - SD/ - (S. JAYARAMAN) ACCOUNTANT MEMBER (DUVVURU RL REDDY) JUDICIAL MEMBER CHENNAI, DATED, THE 24.09.2019 VM/- /COPY TO: 1. / APPELLANT, 2. / RESPONDENT, 3. ( ) /CIT(A), 4. /CIT, 5. /DR & 6. /GF.