Income Tax Officer Ward-4, Shimoga V. Shri D M Rangahath R/o Sharanya , Shimoga

ITA 1106/BANG/2017

• Counselvise Citation: [2018] 121 COUNSELVISE.COM (IT) 4825 (ITAT-BANGALORE)
• Duration Of Justice: 10 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-04-2018
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2010-2011
• Appeal Filed On: 19-05-2017
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: B R RAMESH
• Assessee Lawyers: V SRINIVASAN

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH : BANGALORE BEFORE SHRI N.V. VASUDEVAN, JUDICIAL MEMBER AND SHRI ARUN KUMAR GARODIA, ACCOUNTANT MEMBER ITA NO. 1106 / BANG/201 7 ASSESSMENT YEAR : 20 10 - 11 THE INCOME TAX OFFICER, WARD 4, SHIMOGA. VS. SHRI D.M. RANGANATH, R/O SHARANYA, 2 ND CROSS, NEAR GOODLUCK CIRCLE, SWAMY VIVEKANANDA BADAVANE, SHIMOGA- 577 204. PAN: AKQPR8662R APPELLANT RESPONDENT APPELLANT BY : SHRI B.R. RAMESH, JCIT (DR) RESPONDENT BY : SHRI V. SRINIVASAN, ADVOCATE DATE OF HEARING : 0 4 . 0 4 .2018 DATE OF PRONOUNCEMENT : 11 . 0 4 .201 8 O R D E R PER SHRI A.K. GARODIA, ACCOUNTANT MEMBER THIS APPEAL IS FILED BY THE REVENUE WHICH IS DIRECT ED AGAINST THE ORDER OF LD. CIT(A), DAVANGEREDATED12.01.2017 FOR ASSESSMENT YEA R 2010-11. 2. THE GROUNDS RAISED BY THE REVENUE ARE AS UNDER. 1. THE ORDER OF THE COMMISSIONER OF INCOME TAX(APPE ALS), DAVANGERE, IS OPPOSED TO THE LAW AND NOT ON THE FAC TS AND CIRCUMSTANCES OF THE CASE. 2. THE CIT (A) IS NOT RIGHT IN GRANTING RELIEF TO T HE ASSESSEE ON THE ADDITION MADE BY THE AO BY ADMITTING FRESH EVIDENCE , WITHOUT GIVING THE OPPORTUNITY TO THE AO FOR VERIFICATION OF THE S AME UNDER RULE 46A. 3. THE CIT(A) ERRED IN GIVING RELIEF OF RS.1,00,00, 000/- WITHOUT EXAMINING THE NATURE OF TRANSACTION, CONFIRMATION F ROM CREDITOR. 4. FOR THESE AND OTHER GROUNDS THAT MAY BE URGED UP ON, THE ORDER OF THE CIT(A) MAY BE REVERSED AND THAT ASSESSMENT ORDE R BE RESTORED. ITA NO.1106/BANG/2017 PAGE 2 OF 3 5. THE APPELLANT CRAVES LEAVE TO ADD, ALTER, AMEND OR DELETE ANY OTHER GROUNDS ON OR BEFORE HEARING OF THE APPEAL. 3. IT WAS SUBMITTED BY LD. DR OF REVENUE THAT IT IS NOTED BY CIT(A) IN PARA 5 OF HIS ORDER THAT THE AO ASKED THE ASSESSEE TO FURNISH CON FIRMATION LETTER IN RESPECT OF RECEIPT OF RS. 1 CRORE FROM OBULAPURAM MINING CO. P VT. LTD. AS A LOAN BUT THE ASSESSEE COULD NOT FILE THE SAME AND THEREFORE, THE ADDITION WAS MADE BY THE AO. HE FURTHER POINTED OUT THAT IN THE SAME PARA, IT IS NOTED BY CIT(A) THAT BEFORE HIM, THE ASSESSEE HAS FILED COPY OF BANK ACC OUNT EVIDENCING BORROWAL OF RS. 1 CRORE FROM OBULAPURAM MINING CO. LTD. THROUGH CHEQUE AND HE HAS FILED PROPER CONFIRMATION FROM THE BANK MANAGER ALSO. HE HAS GIVEN CLEAR FINDING THAT THESE ARE FRESH EVIDENCES AND CONSIDERING THE CIRCUMSTANCES AT THE TIME OF ASSESSMENT PROCEEDINGS, THE SAME IS ACCEPTED. BUT THE MATTER WAS DECIDED BY HIM WITHOUT OBTAINING ANY REMAND REPORT FROM THE AO AND THEREFORE, THERE IS VIOLATION OF RULE 46A AND HENCE, THE MATTER MAY BE RESTORED BACK TO THE FILE OF CIT(A) FOR FRESH DECISION AFTER OBTAINING REMAND RE PORT FROM THE AO. THE LD. AR OF ASSESSEE SUPPORTED THE ORDER OF CIT(A). 4. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS. IN VI EW OF THESE FACTS THAT FRESH EVIDENCE WAS PRODUCED BY THE ASSESSEE BEFORE CIT(A) AND THE ISSUE WAS DECIDED BY CIT(A) ON THE BASIS OF THAT WITHOUT OBTA INING REMAND REPORT FROM THE AO IN RESPECT OF THOSE EVIDENCES, WE FEEL IT PROPER TO RESTORE THE MATTER BACK TO THE FILE OF CIT(A) FOR FRESH DECISION AFTER OBTAINI NG REMAND REPORT FROM THE AO. WE ORDER ACCORDINGLY. 5. IN THE RESULT, THE APPEAL FILED BY THE REVENUE I S ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON THE DATE MENT IONED ON THE CAPTION PAGE. SD/- SD/- (N.V. VASUDEVAN) (ARUN KUMAR GARO DIA) JUDICIAL MEMBER ACCOUNTANT MEMBER BANGALORE, DATED, THE 11 TH APRIL, 2018. /MS/ ITA NO.1106/BANG/2017 PAGE 3 OF 3 COPY TO: 1. APPELLANT 4. CIT(A) 2. RESPONDENT 5. DR, ITAT, BANGALORE 3. CIT 6. GUARD FILE BY ORDER SENIOR PRIVATE SECRETARY, INCOME TAX APPELLATE TRIBUNAL, BANGALORE.