Rahoolkumar Mishra, Surat V. I.I.O.Ward 1(2)(5), Surat

ITA 110/SRT/2019

• Counselvise Citation: [2021] 107 COUNSELVISE.COM (IT) 7783 (ITAT-SURAT)
• Duration Of Justice: 2 year(s) 6 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-08-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2014-2015
• Appeal Filed On: 21-02-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ANUPAMA SINGLA
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, SURAT BENCH, SURAT BEFORE SHRI PAWAN SINGH, JUDICIAL MEMBER AND DRR. ARJUN LAL SAINI, ACCOUNTANT MEMBER ITA NO.110/SRT/2019 (AY 2014-15) (H EARING IN VIRTUAL COURT) SHRI RAHOOLKUMAR MISHRA, C/O.CA LOKESH KHADARIA, 607, AJANTA SHOPPING CENTRE, RING ROAD, SURAT 395002. EMAIL: [e-mail] PAN : BAZPM 9054 J VS. THE INCOME TAX OFFICER, WARD-1(2)(5), SURAT. APPLICANT RESPONDENT ASSESSEE BY SHRI BIPIN JARIWALA ADVOCATE REVENUE BY MS. ANUPAMA SINGLA SR.DR DATE OF HEARING 23.08.2021 DATE OF PRONOUNCEMENT 23.08.2021 ORDER UNDER SECTION 254(1) OF INCOME TAX ACT PER PAWAN SINGH, JUDICIAL MEMBER : 1. THIS APPEAL BY ASSESSEE IS DIRECTED AGAINST THE ORDERS OF LD. COMMISSIONER OF INCOME TAX (APPEALS)-1, SURAT DATED 28.05.2018 FOR THE ASSESSMENT YEAR (AY) 2014-15. THE ASSESSEE RAISED THE FOLLOWING GROUNDS OF APPEAL: 1. THE LEARNED CIT(A) HAS ERRED IN CONFIRMING ADDITION MADE BY ASSESSING OFFICER FOR RS.1608000/- U/S 68 OF THE ACT FOR ENTIRE CASH DEPOSITED IN BANK ACCOUNT, WITHOUT GIVING OPPORTUNITY OF HEARING. 2. BRIEF FACTS OF THE CASE ARE THAT ASSESSEE IS ENGAGED IN PROVIDING SECURITY SUPERVISION SERVICE. THE ASSESSEE FILED HIS RETURN OF INCOME FOR THE ASSESSMENT YEAR (AY) 2014-15 ON 02.09.2015 DECLARING TOTAL INCOME AT RS. 2,14,535/-. THE CASE WAS SELECTED FOR SCRUTINY. THE ASSESSMENT WAS COMPLETED UNDER SECTION 143(3) ON 09.08.2016. DURING THE COURSE OF ASSESSMENT PROCEEDINGS, THE ASSESSING OFFICER NOTED THAT THE ASSESSEE MADE ITA NO.110/SRT/2019 SHRI RAHOOLKUMAR MISHRA (AY 2014-15) 2 CASH DEPOSIT OF RS.16,08,000/- IN HIS BANK ACCOUNT NO.SB/952 WITH THE KAPOL COOPERATIVE BANK LTD. THE ASSESSING OFFICER(AO) ISSUED SHOW CAUSE NOTICE TO EXPLAIN THE SOURCE AND EVIDENCES OF CASH DEPOSITS INTO THE BANK ACCOUNT. THE ASSESSEE FILED HIS REPLY AND CONTENDED THAT HE IS ALSO ENGAGED IN SALE AND PURCHASE OF GOODS FROM MARKET AND USED TO SALE THE GOODS FROM HOME . THE AO HELD THAT THE REPLY OF THE ASSESSEE IS AFTER THOUGHT. THE ASSESSING OFFICER MADE ADDITION OF RS. 1608,000/- OF UNEXPLAINED UNDISCLOSED INCOME. 3. ON APPEAL BEFORE LD. CIT(A) THE ACTION OF THE ASSESSING OFFICER WAS AFFIRMED. THE LD CIT(A) CONFIRMED THE ORDER OF ASSESSING OFFICER IN EX- PARTE ORDER BY TAKING VIEW THAT DESPITE GRANTING A NUMBER OF OPPORTUNITIES TO THE ASSESSEE FAILED TO COMPLY THE NOTICES. FURTHER AGGRIEVED, THE ASSESSEE HAS FILED PRESENT APPEAL BEFORE THIS TRIBUNAL. 4. WE HAVE HEARD THE SUBMISSION OF LD. AUTHORISED REPRESENTATIVE (AR) OF THE ASSESSEE AND LD. SENIOR DEPARTMENTAL REPRESENTATIVE (SR. DR) FOR THE REVENUE. THE LD AR FOR THE ASSESSEE SUBMITS THAT THE LD .CIT(A) PASSED THE ORDER EX-PARTY , WITHOUT PROVIDING FAIR AND PROPER OPPORTUNITY TO THE ASSESSEE. THE LD. AR FOR THE ASSESSEE SUBMITS THAT NOTICE OF HEARING OF APPEAL BEFORE THE LD.CIT(A) WAS NOT SERVED UPON THE ASSESSEE AS THE ASSESSEE HAS GONE TO HIS NATIVE PLACE AT KUSHINAGAR, UTTAR PRADESH TO LOOK AFTER HIS FATHER. THE ASSESSEE HAS GOOD CASE ON MERIT AND IS LIKELY TO SUCCEED IF ONE MORE OPPORTUNITY OF HEARING IS GRANTED TO HIM TO EXPLAIN THE FACTS BEFORE LD CIT(A). THE LD.AR FOR THE ASSESSEE PRAYED THAT THE ASSESSEE MAY BE GIVEN ONE MORE OPPORTUNITY TO REPRESENT HIS CASE BEFORE THE ITA NO.110/SRT/2019 SHRI RAHOOLKUMAR MISHRA (AY 2014-15) 3 LD.CIT(A). THE LD.AR FURTHER SUBMITS THAT THE LD.CIT(A) PASSED THE EX- PARTE ORDER WITHOUT DISCUSSING THE MERITS OF THE CASE. THE LD.AR FOR THE ASSESSEE AGAIN RETREATED THAT NO OPPORTUNITY OF HEARING WAS GIVEN TO THE ASSESSEE. THE ASSESSEE HAS GOOD CASE ON MERIT AND IS LIKELY TO SUCCEED IF HE IS GIVEN OPPORTUNITY. THE LD AR FOR THE ASSESSEE UNDERTOOK TO BE VIGILANT IN ATTENDING THE HEARING BEFORE FIRST APPELLATE AUTHORITY. 5. ON THE OTHER HAND, THE SR.DR FOR THE REVENUE SUBMITS THAT THE ASSESSEE WAS GIVEN AMPLE OPPORTUNITY AS RECORDED IN PAGE 2 OF PARA 5.1.1 OF THE ORDER PASSED BY THE LD.CIT(A). THE ASSESSEE FAILED TO COMPLY WITH THE NOTICE ISSUED BY THE LD.CIT(A). THE LD.CIT(A) LEFT WITH NO OPTION, EXCEPT TO PROCEED TO DECIDE THE ISSUE AND IN ABSENCE OF ANY EVIDENCE OR EXPLANATION AFFIRM THE ACTION OF AO. IN ALTERNATIVE SUBMISSION, THE LD.SR.DR FOR THE REVENUE SUBMITS THAT IN CASE THE HONBLE TRIBUNAL IS DEEM APPROPRIATE, THE ASSESSEE BE DIRECTED TO BE VIGILANT AND NOT TO DEFAULT IN ATTENDING THE PROCEEDINGS AND TO WASTE THE TIME OF PUBLIC AUTHORITIES/LD.CIT(A). 6. WE HAVE CONSIDERED THE RIVAL SUBMISSION OF BOTH THE PARTIES AND HAVE GONE THROUGH THE ORDERS OF LOWER AUTHORITIES. WE FIND THAT THE ASSESSING OFFICER WHILE PASSING THE ASSESSMENT ORDER MADE VARIOUS ADDITION. THE LD.CIT(A) CONFIRMED THE ACTION OF AO BY TAKING VIEW THAT THERE IS NON-COMPLIANCE ON THE PART OF THE ASSESSEE. BEFORE, US THE LD. AR FOR THE ASSESSEE UNDERTOOK TO BE VIGILANT AND TO APPEAL BEFORE THE LD. CIT(A). WE, INSTEAD OF GOING INTO CONTROVERSY, WHETHER THE ASSESSEE DEFAULTED IN ATTENDING THE PROCEEDINGS BEFORE THE LD.CIT(A). WE FIND THAT THE ORDER OF THE LD.CIT(A) IS NOT IN ACCORDANCE WITH MANDATE OF SECTION 250(6) OF THE INCOME TAX ACT. SECTION ITA NO.110/SRT/2019 SHRI RAHOOLKUMAR MISHRA (AY 2014-15) 4 250(6) OF THE ACT MANDATES THAT THE LD. CIT(A) WHILE DECIDING THE APPEAL IS REQUIRED TO PASS ORDER ON POINTS OF DETERMINATION (GROUNDS OF APPEALS), DECISION THEREIN ON AND REASONS FOR SUCH DECISION. THEREFORE, CONSIDERING THE FACTS AND CIRCUMSTANCES OF THE CASE, THE APPEAL OF THE ASSESSEE IS RESTORED BACK TO THE FILE OF THE LD.CIT(A) TO DECIDE ALL THE GROUNDS OF APPEAL ON MERIT IN ACCORDANCE WITH LAW. THE ASSESSEE IS DIRECTED TO APPEAR BEFORE THE LD.CIT(A) AS AND WHEN THE DATE OF HEARING IS FIXED AND TO PROVIDE ALL NECESSARY EVIDENCE AND INFORMATION WITHOUT ANY FURTHER DELAY AND NOT TO SEEK THE ADJOURNMENT WITHOUT ANY VALID REASONS. ACCORDINGLY THE GROUND OF APPEAL BY ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSE. 7. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSE. ORDER ANNOUNCED ON 23 RD AUGUST, 2021 AT THE TIME OF HEARING IN VIRTUAL COURT HEARING. SD/- SD/- (DR ARJUN LAL SAINI) (PAWAN SINGH) ACCOUNTANT MEMBER JUDICIAL MEMBER SURAT, DATED: 23/08/2021 / SGR COPY TO: 1. APPELLANT 2. RESPONDENT 3. CIT(A) 4. CIT 5. DR 6. GUARD FILE BY ORDER / / TRUE COPY / / ASSISTANT REGISTRAR, ITAT, SURAT