S.Mayilvaganan, Ariyalur V. ITO, Trichy

ITA 1160/CHNY/2015

• Counselvise Citation: [2015] 120 COUNSELVISE.COM (IT) 9928 (ITAT-CHENNAI)
• Duration Of Justice: 1 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-07-2015
• Appeal Filed By: Assessee
• Bench Allotted: A
• Assessment Year: 2010-2011
• Appeal Filed On: 15-05-2015
• Court: TRIBUNAL
• Department Lawyers: P RADHAKRISHNAN
• Assessee Lawyers: K MEENAKSHISUNDHARAM ITP
• Keywords: Deemed to accrue or arise in india
• Section: 69; 144

Judgement Text

, , IN THE INCOME-TAX APPELLATE TRIBUNAL A BENCH, CHE NNAI , . ! ! ! ! , ' ' ' ' #$ #$ #$ #$ BEFORE SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER & SHRI V. DURGA RAO, JUDICIAL MEMBER I.T.A. NO. 1160/MDS/2015 ASSESSMENT YEAR : 2010-11 SHRI S. MAYILVAGANAN, 1/38, NORTH STREET, PUDHUKUDI, ELAIYUR P.O., UDAYARPALAYAM TALUK, ARIYALUR DIST 621 806. [PAN: AZAPM9257E] VS. THE INCOME TAX OFFICER, WARD IV(2), TIRUCHIRAPALLI. ( %& %& %& %& /APPELLANT ) ( '(%& '(%& '(%& '(%& / RESPONDENT ) %& ) * / APPELLANT BY : SHRI K. MEENAKSHISUNDHARAM, ITP '(%& ) * / RESPONDENT BY : SHRI P. RADHAKRISHNAN, JCIT ) + / DATE OF HEARING : 30.06.2015 ,-. ) + /DATE OF PRONOUNCEMENT : 09.07.2015 / / / / / O R D E R PER V. DURGA RAO, JUDICIAL MEMBER : THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAI NST THE ORDER OF THE LD. COMMISSIONER OF INCOME TAX (APPEALS) I, TIRUC HIRAPALLI DATED 05.02.2015 RELEVANT TO THE ASSESSMENT YEAR 2010-11. 2. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESS EE IS AN INDIVIDUAL, ENGAGED IN THE BUSINESS OF COMMISSION AGENT, BROKER AGE AND REAL ESTATE. THE ASSESSEE FILED HIS RETURN OF INCOME BY DECLARIN G TOTAL INCOME OF .1,82,750/- WITH OPENING CAPITAL BALANCE OF .57,43,393/-. NO FUND FLOW STATEMENT HAS BEEN ENCLOSED WITH THE RETURN OF INCO ME. THE ASSESSEE DID I.T.A. I.T.A. I.T.A. I.T.A. NO NONO NO. .. .11 1111 116 66 60 00 0/M/1 /M/1 /M/1 /M/15 55 5 2 NOT FILE ANY RETURN OF INCOME IN THE PAST. THE RETU RN FILED BY THE ASSESSEE WAS PROCESSED UNDER SECTION 143(1) OF THE INCOME TA X ACT AND AFTER FOLLOWING DUE PROCESS, THE ASSESSMENT WAS COMPLETED UNDER SECTION 144 OF THE ACT. DURING THE COURSE OF ASSESSMENT PROCEEDING S THE ASSESSEE FILED COPY OF BANK ACCOUNTS MAINTAINED BY HIM AND COPIES OF PURCHASE DOCUMENTS FOR THE IMMOVABLE PROPERTIES ACQUIRED BY HIM DURING THE FINANCIAL YEAR 2009-10. VERIFICATION OF THE BANK ACCOUNT AND PURCHASE DOCUMENTS REVEALS THAT THE FOLLOWING CASH DEPOSITS AND INVEST MENTS IN IMMOVABLE PROPERTIES HAVE BEEN MADE DURING THE F. Y. 2009-10. CANARA BANK A/C NO. 14569 S.NO. DATE AMOUNT S.NO. DATE AMOUNT 1. 03.04.2009 1,06,643 5. 25.05.2009 5,000 2. 03.04.2009 1,05,345 6. 12.08.2009 1,500 3. 25.05.2009 4,410 7. 03.10.2009 25,000 4. 25.05.2009 4,410 TOTAL 2,52,308 INDIAN BANK A/C NO. 821638053 S.NO. DATE AMOUNT S.NO. DATE AMOUNT 1 04.04.2009 1,00,000 6. 05.02.2010 1,10,000 2. 17.04.2009 16,000 7. 26.02.2010 10,000 3. 20.04.2009 21,000 8. 01.03.2010 38,000 4. 09.12.2009 1,66,477 9. 20.03.2010 50,000 5. 02.02.2010 80,000 10. 08.03.2010 2,00,000 TOTAL 7,91,477 CANARA BANK A/C NO. 15083 S.NO. DATE AMOUNT 1. 25.03.2010 3,00,000 INVESTMENT IN IMMOVABLE PROPERTIES S.NO. DATE DETAILS OF PROPERTY AMOUNT INVESTED DOC. NO. /S.R.O 1. 24.09.2009 VACANT PLOT 1,97,650 1500/JAYANKONDAM 2. 21.10.2009 DO 2,19,570 1644/ DO 3. 14.10.2009 DO 2,77,300 1606/ DO 4. 14.10.2009 DO 2,77,200 1604/ DO 5. 04.06.2009 DO 8,63,450 835/ DO 6. 15.03.2010 HOUSE BUILDING 4,89,650 440/ DO TOTAL 23,24,820 I.T.A. I.T.A. I.T.A. I.T.A. NO NONO NO. .. .11 1111 116 66 60 00 0/M/1 /M/1 /M/1 /M/15 55 5 3 3. THE ASSESSING OFFICER HAS ASKED THE ASSESSEE TO EXPLAIN THE SOURCE FOR THE INVESTMENTS MADE ABOVE. THE ASSESSEE HAS NO T FILED ANY DETAILS BEFORE THE ASSESSING OFFICER AND NO EXPLANATION WAS ALSO GIVEN BEFORE THE ASSESSING OFFICER. MOREOVER, THE ASSESSEE HAS NOT M AINTAINED ANY REGULAR BOOKS OF ACCOUNTS. FURTHER, THE ASSESSEE HAS NOT GI VEN ANY EXPLANATION FOR THE OPENING CAPITAL. IN VIEW OF THE ABOVE, THE ASSE SSING OFFICER, BY TAKING THE UNEXPLAINED OPENING CAPITAL OF .57,43,393/- AS DEEMED INCOME OF THE ASSESSEE UNDER SECTION 69 OF THE ACT, COMPLETED THE ASSESSMENT UNDER SECTION 144 OF THE ACT. 4. THE ASSESSEE CARRIED THE MATTER IN APPEAL BEFOR E THE LD. CIT(A). AFTER CONSIDERING THE SUBMISSIONS OF THE ASSESSEE, THE LD . CIT(A) HAS OBSERVED THAT THE ASSESSEE HAS NOT FILED ANY DETAILS BEFORE THE ASSESSING OFFICER AND EVEN DURING APPELLATE PROCEEDINGS, THE ASSESSEE HA S NOT FILED ANY DETAILS. HE HAS ALSO NOTICED THAT THE ASSESSEE HAS NEITHER M AINTAINED REGULAR BOOKS OF ACCOUNTS NOR FILE RETURNS OF INCOME FOR EARLIER YEARS, THEREFORE, THE LD. CIT(A) CONFIRMED THE ADDITION MADE BY THE ASSESSING OFFICER. 5. ON BEING AGGRIEVED, THE ASSESSEE CARRIED THE MA TTER IN APPEAL BEFORE THE TRIBUNAL AND THE LD. COUNSEL FOR THE ASSESSEE H AS PLEADED THAT THE ASSESSEE IS READY TO FILE ALL THE DETAILS BEFORE TH E ASSESSING OFFICER AND PRAYED THAT ONE MORE OPPORTUNITY MAY BE GIVEN. I.T.A. I.T.A. I.T.A. I.T.A. NO NONO NO. .. .11 1111 116 66 60 00 0/M/1 /M/1 /M/1 /M/15 55 5 4 6. THE LD. DR HAS NOT STRONGLY OBJECTED TO THE SUB MISSIONS OF THE ASSESSEE. 7. AFTER HEARING BOTH SIDES AND AFTER CONSIDERING THE SUBMISSIONS OF THE LD. COUNSEL FOR THE ASSESSEE, WE SET ASIDE THE ORDE R PASSED BY THE LD. CIT(A) AND REMIT THE MATTER BACK TO THE ASSESSING O FFICER WITH A DIRECTION TO DECIDE THE ISSUE AFRESH AFTER CONSIDERING ALL THE R ELEVANT DOCUMENTS FILED BY THE ASSESSEE. WE ALSO DIRECT THE ASSESSEE TO FILE A LL THE DETAILS AND DOCUMENTS BEFORE THE ASSESSING OFFICER WITHOUT FAIL . ACCORDINGLY, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PU RPOSES. 8. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED ON THURSDAY, THE 9 TH OF JULY, 2015 AT CHENNAI. SD/- SD/- (CHANDRA POOJARI) ACCOUNTANT MEMBER (V. DURGA RAO) JUDICIAL MEMBER CHENNAI, DATED, THE 09.07.2015 VM/- / ) ''+01 21.+ /COPY TO: 1. %& / APPELLANT, 2. '(%& / RESPONDENT, 3. 3 ( ) /CIT(A), 4. 3 /CIT, 5. 14 ''+' /DR & 6. 5! 6 /GF.