Shri Gopal YAdev Selva Kumar, Vellore V. ITO, Ward-2, Vellore

ITA 111/CHNY/2018

• Counselvise Citation: [2018] 121 COUNSELVISE.COM (IT) 5091 (ITAT-CHENNAI)
• Duration Of Justice: 5 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-06-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2011-2012
• Appeal Filed On: 08-01-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: K NIRAIMATHI AZHAGAN
• Keywords: Unexplained investment; Opportunity of being heard; Reassessment proceedings
• Section: 143(3); 147; 69

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH: CHENNAI . , . , BEFORE SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER & SHRI DUVVURU RL REDDY, JUDICIAL MEMBER ./ ITA NO. 111 / CHNY /20 18 / ASSESSMENT YEAR: 20 11 - 12 SHRI G OPAL YADAV SELVA K UMAR, 65, VELLORE MAIN ROAD, 1 ST STREET, ARCOT - 632 503. [PAN: BTSPS 5973E] VS. THE INCOME TAX OFFICER, WARD - 2, VELLORE. ( /APPELLANT) ( /RESPONDENT) / APPELLANT BY : SHRI K.NIRAIMATHI AZHAGAN, CA /RESPONDENT BY : SHRI AR.V.SREENIVASAN, JCIT / DATE OF HEARING : 13 . 0 6 .201 8 / DATE OF PRON OUNCEMENT : 22 . 0 6 .201 8 / O R D E R PER DUVVURU R.L.REDDY , JUDICIAL MEMBER : THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAINST THE O RDER OF THE LD. COMMI SSIONER OF INCOME TAX (APPEALS) 13 , CHENNAI, DATED 18.09.2017 RELEVANT TO THE ASSESSMENT Y EAR 2011 - 12. B ESIDES CHALLENGING THE RE - OPENING OF ASSESSMENT UNDER SECTION 147 OF THE INCOME TAX ACT, 1961 [ ACT IN SHORT] IN HIS APPEAL , T HE ASSESSEE ALSO DISPUTED THAT THE L D. CIT(A) HAS NOT ADJUDICATED THE APPEAL OF THE ASSESSEE ON MERITS. 2. BRIEF FACTS OF THE CASE ARE THAT T HE ASSESSEE IS ONE OF THE PARTNER S OF THE M/S. GOKULAM AUTO FINANCE & CONSULTANCY, ARCOT AND FILED THE RETURN FOR ASSESSMENT YEAR 2011 - 12 ON 17.07.2011 ADMITTING TOTAL INCOME AT : - 2 - : ITA NO.111/CHNY/2018 .2,49,000/ - . THE ASSESS MENT UNDER SECTION 143(3) OF THE ACT WAS COMPLETED ON 14.03.2013 ASSESSING THE INCOME AT .2,63,110/ - . AFTER RECORDING REASONS FOR REOPENING, THE ASSESSMENT WAS COMPLETED UNDER SECTION 143(3) R.W. SECTION 147 OF THE AT BY REASSESSIN G THE INCOME OF THE ASSESSEE AT .1,54,43,060/ - AFTER MAKING ADDITION OF UNEXPLAINED INVESTMENTS UNDER SECTION 69 OF THE ACT AT .1,51,79,950/ - . 3. THE ASSESSEE PREFERRED APPEAL BEFORE THE LD. CIT(A). AFTER CONSIDERING THE SUBMISSIONS OF THE ASSESSEE AND FACTS OF THE CASE, THE LD. CIT(A) SUSTAINED THE ASSESSMENT ORDER PASSED UNDER SECTION 143(3) R.W.S. 147 OF THE ACT. 4. ON BEING AGGRIEVED, THE ASSESSEE IS IN APPEAL BEFORE THE TRIBUNAL . T HE LD. COUNSEL FOR THE ASSESSEE MAINLY ARGUED THAT THE LD. CIT(A) HAS NOT ADJUDICATED THE ISSUE ON MERITS WITH REGARD TO THE ADDITION UNDER SECTION 69 OF THE ACT OF .1,49,85,094/ - MADE DURING THE ASSESSMENT UNDER SECTION 143(3) R.W.S. SECTION 147 OF THE ACT AND PRAYED THAT SUITABLE DIRECTIONS MAY BE GIVEN TO THE LD. CIT(A) TO ADJUDICATE THE ISSUE ON MERITS. 5. ON THE OTHER HAND, THE LD. DR FAIRLY CONCEDED THE SUBMI SSIONS OF THE LD. COUNSEL FOR THE ASSESSEE. 6. WE HAVE HEARD BOTH SIDES, PERUSED THE MATERIALS AVAILABLE ON RECORD AND GONE THROUGH THE ORDERS OF AUTHORITIES BELOW. DURING THE COURSE OF : - 3 - : ITA NO.111/CHNY/2018 REASSESSMENT PROCEEDINGS, AFTER RECORDING REASONS AND CONSIDERING T HE SUBMISSIONS OF THE ASSESSEE, THE ASSESSMENT UNDER SECTION 143(3) R.W. SECTION 147 OF THE ACT WAS COMPLETED BY MAKING ADDITION AT .1,51,79,950/ - . AGAINST THE REOPENING ASSESSMENT AS WELL AS ADDITION MADE UNDER SECTION 69 OF THE ACT, THE ASSESSEE PREFERRED FURTHER APPEAL BEFORE THE LD. CIT(A). AFTER CONSIDERING THE ENTIRE FACTS AND SUBMISSIONS OF THE ASSESSEE, THE LD. CIT(A) HELD THA T THE ASSESSING OFFICER VALIDLY COMPLETED THE ASSESSMENT UNDER SECTION 143(3) R.W.S. 147 OF THE ACT. WHILE CONCLUDING THE APPELLATE ORDER, THE LD. CIT(A) HELD AS UNDER: ON MERIT THE APPELLANT HAS NOT RAISED ANY GROUND O APPEAL THAT IS TO PRESUME THAT THE APPELLANT HAS NOT PRESSED THE GROUND OF ADDITION MADE BY THE AO ON THE ISSUE OF ADDITION OF .1,51,79,950/ - , THEREFORE, THE ADDITION MADE BY THE AO U/S 69 OF THE ACT FOR .1,51,79,950/ - IS HEREBY CONFIRMED. HOWEVER, IN THE GROUNDS OF APPEAL RAISED BEFORE THE LD. CIT(A), WHICH WAS REPRODUCED IN THE APPELLATE ORDER, THE ASSESSEE HAS RAISED A SPECIFIC GROUND AND THE SAME READS AS UNDER: 7. THEREFORE, IT IS PRAYED THAT, ON THESE GROUNDS AND ON SUCH OTHER GROUNDS AS MAY BE SUBMITTED DURING THE COURSE OF HEAR ING OF THIS APPEAL, THE ADDITION MADE IN THE REASSESSMENT .15179950/ - MAY BE DELETED AND JUSTICE BE RENDERED. IN VIEW OF THE ABOVE FACTS AN D CIRCUMSTANCES, WE DIRECT THE L D. CIT(A) TO ADJUDICATE THE ISSUE ON MERITS WITH REGARD TO THE ADDITION MADE UNDER SECTION 69 OF THE ACT IN ACCORDANCE WITH LAW BY ALLOWING AN OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. : - 4 - : ITA NO.111/CHNY/2018 7. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED ON 22 ND JUNE , 2018 AT CHENNAI. SD/ - SD/ - ( . ) ( A. MOHAN ALANKAMONY ) /ACCOUNTANT MEMBER ( . . ) ( DUVVURU R.L.REDDY ) /JUDICIAL MEMBER / CHENNAI , / DATED: 22 .06. 2018 . VM / COPY TO: 1. / APPELLANT 4. / CIT 2. / RESPONDENT 5. / DR 3. ( ) / CIT(A) 6. / GF