M/s. Krishana Eng. Co., Ahmedabad V. The Income Tax Officer, Ward-1(2)(2),

ITA 1080/AHD/2017

• Counselvise Citation: [2018] 126 COUNSELVISE.COM (IT) 6124 (ITAT-AHMEDABAD)
• Duration Of Justice: 9 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-02-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Assessment Year: 2012-2013
• Appeal Filed On: 04-05-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Unexplained cash credit; Principle of natural justice

Judgement Text

ITA NO.1080/AHD/2017) ASSESSMENT YEAR: 2012-13 PAGE 1 OF 3 IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD D BENCH, AHMEDABAD [CORAM: PRAMOD KUMAR AM AND MAHAVIR PRASAD JM] ITA NO.1080/AHD/2017 ASSESSMENT YEAR: 2012-13 KRISHNA ENGINEERING CO., ..................APPELLANT 15, JAY YOGESHWER SOCIETY, NEAR GAYATRI TEMPLE, RANIP, AHMEDABAD 382 480. [PAN : AAHPK 6725 B] VS. INCOME TAX OFFICER, WARD 1(2)(2), BARODA. ............................RESPONDENT APPEARANCES BY S.N. DIVETIA FOR THE APPLICANT V.K. SINGH FOR THE RESPONDENT HEARING CONCLUDED ON: 14.11.2017 ORDER PRONOUNCED ON : 12.02.2018 O R D E R PER PRAMOD KUMAR, AM: 1. BY WAY OF THIS APPEAL, THE ASSESSEE APPELLANT HA S CHALLENGED CORRECTNESS OF LEARNED CIT(A)S ORDER DATED 30 TH MARCH, 2017. 2. GRIEVANCES RAISED BY THE APPELLANT ARE AS FOLLOW S :- 1.1 THE ORDER PASSED U/S.250 ON 30-3-2017 FOR A.Y. 2012-13 BY CIT(A)-10, A'BAD, UPHOLDING ADDITION OF RS.1,58,24,925/- AS UN EXPLAINED CASH CREDIT AND DISALLOWANCE OF INTEREST OF RS.7,09,460/-IS WHOLLY ILLEGAL, UNLAWFUL AND AGAINST THE PRINCIPLES OF NATURAL JUSTICE. 1.2 THE LD. CIT(A) HAS GRIEVOUSLY ERRED IN LAW AND OR ON FACTS IN NOT CONSIDERING FULLY AND PROPERLY THE EXPLANATIONS FUR NISHED AND THE EVIDENCE PRODUCED BY THE APPELLANT. THE LD. CIT(A) HAS COMPL ETELY IGNORED THE MATERIAL PRODUCED BEFORE HIM WITH REGARD TO THE IMPUGNED UNE XPLAINED CASH CREDIT AND MADE OBSERVATIONS/FINDINGS CONTRARY TO THE SAID EVI DENCE SO THAT THE APPELLANT DOES NOT ADMIT IT. ITA NO.1080/AHD/2017) ASSESSMENT YEAR: 2012-13 PAGE 2 OF 3 2.1 THE LD. CIT(A) HAS GRIEVOUSLY ERRED IN LAW AND OR ON FACTS IN CONFIRMING THE ADDITION TOWARDS CASH CREDITS IN THE ACCOUNT OF 23 PARTIES OF RS.1,58,24,925/- (RS.19,50,000 + 1,38,74,925) AS UNEXPLAINED THOUGH THE APPELLANT HAD FULLY DISCHARGED THE BURDEN CAST UPON IT AND NO FURTHER I NQUIRY WAS MADE DIRECTLY WITH THE DEPOSITORS BY AO. 3.2 THAT IN THE FACTS AND CIRCUMSTANCES OF THE CASE AS WELL AS IN LAW, THE ID. CIT(A) HAS GRIEVOUSLY ERRED IN UPHOLDING THE ADDITI ON TOWARDS CASH CREDITS IN THE ACCOUNT OF 23 PARTIES OF RS.1,58,24,925/- (RS.19,50 ,000 + 1,38,74,925) AS UNEXPLAINED CASH CREDIT U/S 68. 3.3 WITHOUT PREJUDICE TO THE ABOVE AND IN THE ALTER NATIVE, THE ID. CIT(A) OUGHT TO HAVE CALLED FOR A REMAND REPORT FROM AO IN CASE HE WAS OF THE OPINION THAT THE AO HAD NOT ADEQUATE OPPORTUNITY TO MAKE INQUIRIES. 4.1 THE ID. CIT(A) HAS GRIEVOUSLY ERRED IN CONFIRMI NG THE DISALLOWANCE OF INTEREST EXPENSES OF RS.7,09,460/- (RS.1,31,640 + 5 ,77,820). 4.2 THE ID. CIT(A) HAS GRIEVOUSLY ERRED IN HOLDING THAT THE APPELLANT AGREED TO THE DISALLOWANCE OF INTEREST EXP OF RS.1,31,64 0/-. THE APPELLANT HAD AGREED UNDER MISUNDERSTANDING OF FACTS AND LAW. 5.1 THE OBSERVATIONS MADE AND CONCLUSIONS REAC HED BY CIT(A) FOR CONFIRMING THE ADDITIONS/DISALLOWANCES IN SO FAR AS THE SAME ARE CONTRARY TO THE FACTS OF THE CASE AND EVIDENCE ARE NOT ADMITTED BY THE APPELLANT. 3. WHEN THIS APPEAL WAS CALLED OUT FOR HEARING, LEA RNED COUNSEL FOR THE ASSESSEE INVITED OUR ATTENTION TO SPECIFIC OBSERVATIONS BY T HE LEARNED CIT(A), AT MORE PLACES THAN ONE, TO THE EFFECT THAT INFORMATION WAS FURNISHED B Y THE ASSESSEE AT THE FAG END OF THE PROCEEDINGS AND, THEREFORE, IT WAS NOT POSSIBLE FOR THE ASSESSING OFFICER TO EXAMINE AND EVALUATE THE INFORMATION SO FURNISHED. THESE OBSER VATIONS ARE MADE, INTER ALIA, IN PARAGRAPHS 10, 15, 20, 22, 23, 25 & 29 OF THE IMPUG NED ORDER. LEARNED COUNSEL SUBMITS THAT IN THESE CIRCUMSTANCES THE LEARNED CIT (A) SHOULD HAVE CALLED FOR A REMAND REPORT ON THE DETAILED SUBMISSIONS MADE BY THE ASSE SSEE RATHER THAN DISMISSING THE SAME. SUMMARILY WITHOUT ANY FURTHER DISCUSSIONS LE ARNED COUNSEL FOR THE ASSESSEE HAS ALSO INVITED OUR ATTENTION TO THE VOLUMINOUS SUBMIS SIONS - COPIES OF WHICH WERE FILED BEFORE US AS WELL. HE PRAYS THAT SINCE THE MATTER HAS NOT BEEN EXAMINED ON MERITS BY ANY OF THE AUTHORITIES BELOW, IT MAY BE REMITTED TO THE FILE OF THE LEARNED CIT(A), OR IDEALLY TO THE FILE OF THE ASSESSING OFFICER FOR AD JUDICATION DE NOVO . 4. LEARNED DEPARTMENTAL REPRESENTATIVE DOES NOT SER IOUSLY OPPOSE THE PAYER OF THE LEARNED COUNSEL BUT SUBMITS THAT IF AT ALL IT I S TO BE REMITTED TO THE FILE OF ONE OF THE ITA NO.1080/AHD/2017) ASSESSMENT YEAR: 2012-13 PAGE 3 OF 3 AUTHORITIES BELOW, IT SHOULD BE REMITTED TO THE FIL E OF THE LEARNED CIT(A) WITH A DIRECTION TO CONSIDER THE SUBMISSIONS, IN THE LIGHT OF THE RE MAND REPORT BY THE ASSESSING OFFICER, ON MERITS. 5. HAVING HEARD THE RIVAL SUBMISSIONS, AS ABOVE, AN D HAVING PERUSED THE MATERIAL ON RECORD, WE ARE OF THE CONSIDERED VIEW THAT THE M ATTER SHOULD BE REMITTED TO THE FILE OF THE LEARNED CIT(A) FOR ADJUDICATION DE NOVO , AFTER CALLING FOR A REMAND REPORT ON THE SUBMISSIONS OF THE ASSESSEE, AFTER GIVING YET ANOTH ER OPPORTUNITY OF HEARING TO THE ASSESSEE, BY WAY OF A SPEAKING ORDER AND IN ACCORDA NCE WITH THE LAW. WITH A VIEW TO ENSURE AN EXPEDITIOUS DISPOSAL OF REMANDED PROCEEDI NGS, WE DIRECT THE ASSESSEE TO FILE ALL SUCH SUBMISSIONS TO THE LEARNED CIT(A) AFRESH, AS HE MAY SEEK TO RELY UPON, WITHIN ONE MONTH OF RECEIVING THIS ORDER, AND EXTEND FULL CO-OPERATION IN EXPEDITIOUS FINALIZATION OF REMANDED PROCEEDINGS. ORDERED, ACCORDINGLY. 6. WITH THE ABOVE OBSERVATIONS, THE GRIEVANCES OF T HE ASSESSEE ARE RESTORED TO THE FILE OF THE LEARNED CIT(A). AS SUCH, OUR ADJUDICAT ION ON MERITS, ON OTHER ISSUES, ARE NOT REQUIRED AT THIS STAGE. THESE ASPECTS OF THE MATTE R ARE INFRUCTUOUS AND ACADEMIC AS ON NOW. 7. IN THE RESULT, APPEAL IS ALLOWED FOR STATISTICAL PURPOSES IN THE TERMS INDICATED ABOVE. PRONOUNCED IN THE OPEN COURT ON THIS 12 TH DAY OF FEBRUARY, 2018. SD/- SD/- MAHAVIR PRASAD PRAMOD KUMAR (JUDICIAL MEMBER) (ACCOUNTANT MEM BER) DATED: 12 TH FEBRUARY, 2018. PBN/* COPIES TO: (1) THE APPELLANT (2) THE RESPONDENT (3) CIT (4) CIT(A) (5) DR (6) GUARD FILE BY ORDER ASSISTANT REGISTRAR INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCHES, AHMEDABAD