Shri Jitendrakumar Prabhudas Patel, Mehsana V. The Income Tax Officer, Ward-2, Patan

ITA 11/AHD/2015

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 8403 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 8 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-09-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2006-2007
• Appeal Filed On: 01-01-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PRAJNU PARAMITA
• Assessee Lawyers: S V AGRAWAL
• Keywords: Unexplained cash credit; Additional evidence
• Section: 234B

Judgement Text

27 , *,LK *,LK *,LK *,LK- -- -,E ,E,E ,E- -- -LH* LH*LH* LH* IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH, AHMEDABAD LOZJH EGKOHJ IZLKN] U;KF;D LNL; ,OA VEJTHR FLAG] LOZJH EGKOHJ IZLKN] U;KF;D LNL; ,OA VEJTHR FLAG] LOZJH EGKOHJ IZLKN] U;KF;D LNL; ,OA VEJTHR FLAG] LOZJH EGKOHJ IZLKN] U;KF;D LNL; ,OA VEJTHR FLAG] YS[KK LNL; DS LE{KA YS[KK LNL; DS LE{KA YS[KK LNL; DS LE{KA YS[KK LNL; DS LE{KA (BEFORE SHRI MAHAVIR PRASAD, JUDICIAL MEMBER & SHRI AMARJIT SINGH, ACCOUNTANT MEMBER ) ./ I.T.A. NO. 11/AHD/2015 ( / ASSESSMENT YEAR :2006-07) JITENDRAKUMAR PRABHUDAS PATEL, BAJIPURA, OPP. HIGH SCHOOL, UNJHA, DIST - MEHSANA-384001 / VS. INCOME TAX OFFICER WARD 2 PATAN - 384265 ./ ./ PAN/GIR NO. : APFPP 9623 Q ( / APPELLANT ) .. ( / RESPONDENT ) / APPELLANT BY : SHRI S. V. AGRAWAL, C.A. / RESPONDENT BY : SHRI PRAJNU PARAMITA, SR.D.R. / DATE OF HEARING 21/09/2017 !'# / DATE OF PRONOUNCEMENT 27/09/2017 $% / O R D E R PER SHRI MAHAVIR PRASAD, JUDICIAL MEMBER : THIS IS AN APPEAL BY THE ASSESSEE AGAINST THE OR DER OF THE COMMISSIONER OF INCOME TAX(APPEALS)-GANDHINAGAR, AH MEDABAD, DATED 22/08/2014 FOR THE ASSESSMENT YEAR (AY) 2006-07, ON THE FOLLOWING GROUNDS: THE ORDER OF LEARNED COMMISSIONER OF INCOME TAX (AP PEALS) GANDHINAGAR [CIT(A)] IS BAD IN LAW AS WELL ON FACTS ON THE FOLLOWING GROUNDS; (I) LEARNED CIT(A) HAS ERRED IN NOT ADJUDICATING GROUND S OF APPEAL NO.1 & 2 AGAINST REOPEN OF ASSESSMENT U/S.147 AND A SSESSMENT U/S.144 OF THE ACT. ITA NO.11/AHD/2 015 JITENDRAKUMAR PRABHUDAS PATEL VS. ITO ASST.YEAR 2006-07 - 2 - A. LEARNED A.O. HAS ERRED IN REOPENING ASSESSMENT U /S.147 OF THE ACT. B. ORDER OF A.O. U/S.144 IS WITHOUT DETAIL INQUIRY AND VERIFICATION OF FACTS. (II) THE LEARNED CIT(A)HAS ERRED IN CONFIRMING THE ADDITION MADE BY A.O. OF RS.7,56,000/- AS UNEXPLAINED CASH DEPOSITED IN SAVING BANK ACCOUNT WITH MAHINDRA BANK LTD., UNJHA, IN AS MUCH AS, A. THE A.O. HAS NOT DECIDED THE CASE ON MERITS AND FAC TS OF THE CASE. B. THE A.O. HAS PASSED THE ORDER WITHOUT DETAIL INQUIR Y OF THE CASE THOUGH A.O. HAD SUFFICIENT TIME UP TO 31/03/20 14. C. THE BANK A/C. IS NAME OF 3 JOINT HOLDERS AND OTHER JOINT HOLDERS TRANSACTIONS ARE ALSO ADDED. (II) THE LEARNED CIT(A) HAS ERRED IN CONFIRMING THE INTE REST CHARGED U/S. 234A, 234B & 234C BY A.O. OF I.T. ACT,1961. (III) THE ASSESSEE CRAVES FOR LIBERTY TO AMEND, MODIFY AN D ADD ANY GROUNDS OF APPEAL OR FURNISH ADDITIONAL EVIDENCES. 2. THE RELEVANT FACTS AS CULLED OUT FROM THE MATERI ALS ON RECORD ARE AS UNDER:- IN THIS CASE, AO THROUGH THE ANNUAL INFORMATION RE TURN, (AIR) NOTICED THAT APPELLANT HAS MADE CASH DEPOSITS OF RS .10,06,000/- IN HIS BANK ACCOUNT WITH KOTAL MAHINDRA BANK LTD, UNJHA. T HE CASE WAS, THEREFORE, RE-OPENED ON THE BASED OF ABOVE INFORMAT ION. THE AO ISSUED VARIOUS NOTICES AND QUESTIONNAIRES TO THE APPELLANT WHICH THE APPELLANT FAILED TO RESPOND. THEREFORE, THE ASSESSMENT IS FIN ALIZED U/S.144 OF THE ACT. ITA NO.11/AHD/2 015 JITENDRAKUMAR PRABHUDAS PATEL VS. ITO ASST.YEAR 2006-07 - 3 - 2.2 WITH REGARD TO THE ADDITION MADE ON ACCOUNT OF UNEXPLAINED CASH CREDITS, BANK STATEMENT OF ACCOUNT NO.0816014000769 4 HELD WITH KOTAL MAHINDRA BANK LTD., UNJHA WAS OBTAINED BY THE AO BY ISSUING LETTER U/S.133(6) OF THE ACT. FROM THE STATEMENT, THE AO P ERUSED THAT THERE WAS TOTAL DEPOSIT OF RS.10,06,000/- AND WITHDRAWALS TOT ALED TO RS.2,50,000/-. 2.3 THE AO HAS HELD THAT THE APPELLANT IS NOT ELIGI BLE FOR RELIEF OF PEAK AMOUNT AS THERE WAS CONTINUOUS DEPOSIT IN THE BANK ACCOUNT UPTO 05/10/2005 AND THEREAFTER, CASH WITHDRAWALS OF RS.2 ,35,000/- IS ADJUSTED AGAINST THE CASH DEPOSITS OF RS,10,06,000/-. HE THE REFORE, WORKED OUT THE UNEXPLAINED CASH DEPOSITS AT RS.7,56,000/-, CONSIDE RING THE WITHDRAWALS OF RS.2,50,000/-. THE AMOUNT OF RS.7,56,000/- AND I NTEREST INCOME OF RS.402/- TOTALING TO RS.7,56,400/- IS ADDED IT TO T HE TOTAL INCOME AS UNEXPLAINED CASH DEPOSITS. 3. THEREAFTER, ASSESSEE PREFERRED FIRST STATUTORY A PPEAL BEFORE THE LD. CIT(A) WHO DISMISSED THE APPEAL OF THE ASSESSEE. 4. NOW APPELLANTS APPEAL IS BEFORE US. 5. WE HAVE HEARD THE RIVAL SUBMISSIONS AND GONE THR OUGH THE RELEVANT RECORD. ASSESSEE FILED AN APPLICATION FOR CONDONE O F DELAY SUPPORTED BY AFFIDAVIT. WE ARE CONVINCED THAT ASSESSEE HAS GIVEN THE VALID AND REASONABLE GROUNDS TO CONDONE THE DELAY. HENCE, WE CONDONE THE DELAY OF 150 DAYS. ITA NO.11/AHD/2 015 JITENDRAKUMAR PRABHUDAS PATEL VS. ITO ASST.YEAR 2006-07 - 4 - 5.2 ASSESSEES MAIN GRIEVANCE APPEARS TO BE THAT AS SESSING OFFICER HAS PASSED EX-PARTE ORDER AND HE HAS NOT BEEN HEARD PROPERLY BY THE CIT(A) AS WELL AND HIS GRIEVANCE ALSO THAT HE FILED ADDITIONAL EVIDENCES BEFORE THE LD. CIT(A), WHICH WERE NOT CONSIDERED. 6. WE ARE OF THE CONSIDERED OPINION THAT IN THE INT EREST OF THE JUSTICE, ASSESSEE SHOULD BE GIVEN ONE MORE CHANCE TO DEFEND HIS CASE. 7. THEREFORE, IN THE INTEREST OF THE JUSTICE, WE S ET ASIDE THE ORDER OF THE LEARNED CIT(A) AND REMIT BACK THIS MATTER TO TH E FILE OF THE AO WHO WILL DECIDE THIS MATTER AFRESH AFTER PROVIDING OPPO RTUNITY TO THE ASSESSEE AND APPELLANT IS ALSO DIRECTED TO FILE ALL THE PAPE RS IN SUPPORT OF HIS CONTENTION BEFORE THE LEARNED AO. 8. IN THE RESULT, APPEAL FILED BY THE ASSESSEE IS A LLOWED FOR STATISTICAL PURPOSE. THIS ORDER PRONOUNCED IN OPEN COURT ON 27/09/2017 SD/- SD/- VEJTHR FLAG VEJTHR FLAG VEJTHR FLAG VEJTHR FLAG &' $ ( $ ) ()* $ ) ( AMARJIT SINGH ) ( MAHAVIR PR ASAD ) ACCOUNTANT MEMBER JUDICIAL MEMBER AHMEDABAD; DATED 27/09/2017 PRITI YADAV, SR.PS ITA NO.11/AHD/2 015 JITENDRAKUMAR PRABHUDAS PATEL VS. ITO ASST.YEAR 2006-07 - 5 - !'# $#! / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. , -. / / CONCERNED CIT 4. / () / THE CIT(A)-GANDHINAGAR, AHMEDABAD. 5. 012 **-. , -.# , '&$,$ / DR, ITAT, AHMEDABAD 6. 245 6 / GUARD FILE. % & / BY ORDER, 0 * //TRUE COPY// '/& () ( DY./ASSTT.REGISTRAR) , / ITAT, AHMEDABAD TRUE COPY 1. DATE OF DICTATION 22/09/2017 (DICTATION-PAD 4 PAGES ATTACHED AT THE END OF THIS APPEAL-FILE) 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER 26/09/2017 3. OTHER MEMBER 4. DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR.P. S./P.S.. 5. DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE D ICTATING MEMBER FOR PRONOUNCEMENT 6. DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR.P .S./P.S. 7. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 8. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK ... 9. THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT RE GISTRAR FOR SIGNATURE ON THE ORDER.. 10. DATE OF DESPATCH OF THE ORDER