Pritam Raju Tungatkar L/h of Raju Narayan Tungatkar, Pune V. Income-tax Officer, Ward - 6 (5), Pune

ITA 1161/PUN/2019

• Counselvise Citation: [2019] 115 COUNSELVISE.COM (IT) 6130 (ITAT-PUNE)
• Duration Of Justice: 2 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-09-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2013-2014
• Appeal Filed On: 29-07-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: CHANDRA BHANU MANDAL
• Keywords: Unexplained cash credit; Principle of natural justice; Set aside
• Section: 143(3); 201; 148

Judgement Text

] IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH SMC , PUNE BEFORE SHRI ANIL CHATURVEDI, AM . / ITA NO. 11 6 1 / PUN/201 9 / ASSESSMENT YEAR : 201 3 - 14 PRITAM RAJU TUNGATKAR, L/H OF RAJU NARAYAN TUNGATKAR, 1360, SHUKRAWAR PETH, NEAR KALA HAUD, PUNE - 411002 PAN : ACBPT2831K . / APPELLANT V/S THE INCOME TAX OFFICER, WARD 6(5), PUNE . / RESPONDENT ASSESSEE BY : SHRI PRAMOD SHINGTE REVENUE BY : SHRI CHANDRA BHANU MANDAL / ORDER PER ANIL CHATURVEDI, AM : 1. TH IS APPEAL FILED BY ASSESSEE IS AGAINST THE ORDER OF COMMISSIONER OF INCOME TAX (APPEALS) 4, PUNE FOR THE ASSESSMENT YEAR 201 3 - 14 . 2 . THE RELEVANT FACTS AS CULLED OUT FROM THE MATERIAL ON RECORD ARE AS UNDER : - ASSESSEE IS AN INDIVIDUAL STAT ED TO BE HAVING INCOME FROM BUSINESS, RENT AND INTEREST INCOME. ASSESSEE FILED HIS RETURN OF INCOME FOR A.Y. 201 3 - 14 ON 29 - 0 3 - 2014 DECLARING TOTAL INCOME AT / DATE OF HEARING : 30.09. 2019 / DATE OF PRONOUNCEMENT: 30 .0 9 . 2019 2 RS. 8,56,120/ - AND AGRICULTURAL INCOME OF RS.85,000/ - . IN THIS CASE, ON THE BASIS OF INFORMATION RECEIVED BY THE AO FROM THE DY. DIRECTOR (INV.) - II, PUNE , NOTICE U/S. 148 WAS ISSUED ON 18 - 05 - 2015 AND SERVED ON THE ASSESSEE. THEREAFTER, THE CASE WAS TAKEN UP FOR SCRUTINY AND CONSEQUENTLY ASSESSMENT WAS FRAMED U/S 143(3) R.W.S. 147 OF THE ACT VIDE ORDER DATED 30 - 12 - 2016 AND THE TOTAL INCOME WAS DETERMINED AT RS. 40,33,532/ - . AGGRIEVED BY THE ORDER OF AO, ASSESSEE CARRIED THE MATTER BEFORE LD.CIT(A), WHO VIDE ORDER DATED 30 - 01 - 2019 (IN APPEAL NO. PN/CIT( A ) - 4 / WD - 6(5), PUNE/369/2016 - 17 ) DISMISSED THE APPEAL OF THE ASSESSEE. AGGRIEV ED BY THE ORDER OF LD.CIT(A), ASSESSEE IS NOW IN APPEAL AND HAS RAISED THE FOLLOWING GROUNDS : 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW LD. COMMISSIONER OF INCOME TAX (APPEALS) - 4, PUNE ERRED IN PASSING AN EX - PARTE ORDER WITHOUT APPR ECIATING THE FACT THAT DUE TO VALID AND SUFFICIENT REASONS YOUR APPELLANT COULD NOT ATTEND THE HEARING AND WITHOUT CONSIDERING THE MERIT OF THE CASE, YOUR APPELLANT PRAYS FOR SET ASIDE THE MATTER TO THE CIT (APPEALS) IN THE INTEREST OF PRINCIPAL OF NATUR AL JUSTICE. WITHOUT PREJUDICE TO THE ABOVE GROUND IT IS PRAY BEFORE YOUR HONORS TO CONSIDER FOLLOWING GROUNDS OF APPEAL. 2. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW LOWER AUTHORITIES HAS ERRED IN MAKING ADDITION OF RS.24,77,712/ - ON ACCOUNT OF ALLEGED UNEXPLAINED CREDIT IN BANK OF MAHARASHTRA AND COSMOS BANK BY DISREGARDING APPELLANTS CONTENTION, THE ENTIRE ADDITION NEEDS TO BE DELETED. 3. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW LD. AO ERRED IN MAKING ADDITION OF R S.7,00,000/ - ON ACCOUNT OF UNEXPLAINED LAND GUT N O. 29 KUTARWADI, BY DISREGARDING APPELLANT'S CONTENTION, SAME MAY KINDLY BE DELETED. THE APPELLANT CRAVES FOR TO LEAVE, ADD, ALTER, MODIFY, DELETE ABOVE GROUND OF APPEAL BEFORE OR AT THE TIME HEARING, IN THE INTEREST OF NATURAL JUSTICE. 3. BEFORE ME, AT THE OUTSET, LD. A.R. FILED AFFIDAVIT OF LEGAL HEIR OF ASSESSEE AND SUBMITTED THAT DUE TO PROLONGED ILLNESS OF ASSESSEE , THE 3 ASSESSEE COULD NOT APPEAR BEFORE THE CIT(A) AND HE EXPIRED ON 17 - 11 - 2018 WHICH HAS RESULTED INTO EX - PARTE ORDER BY CIT(A). HE FURTHER SUBMITTED THAT THE CIT(A) HAS PASSED AN EX - PARTE ORDER WITHOUT DECIDING THE ISSUE ON MERITS. HE THEREFORE SUBMITTED THAT ONE MORE OPPORTUNITY BE GRANTED TO THE ASSESSEE TO PRESENT HIS CASE BEFORE TH E LOWER AUTHORITIES AND FURTHER SUBMITTED THAT HE UNDERTAKES ON BEHALF OF THE ASSESSEE THAT THE ASSESSEE WILL FULLY CO - OPERATE AND APPEAR BEFORE THE LOWER AUTHORITIES. LD. D.R. ON THE OTHER HAND, SUBMITTED THAT THERE WAS TOTAL NON - COMPLIANCE BY THE ASSESS EE BEFORE LD. CIT(A) AND IN SUCH A SITUATION, THERE WAS NO OTHER OPTION LEFT TO THEM BUT TO PASS AN EX - PARTE ORDER. HE THUS SUPPORTED THE ORDER OF LOWER AUTHORITIES. 4. I HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL ON RECORD. I FIND THAT IN THE PRESENT CASE, THE ASSESSMENT ORDER WAS FRAMED BY THE AO U/S 143(3) R.W.S 147 OF THE ACT WHEREBY AGAINST THE DECLARED INCOME OF RS. 8,56,120/ - THE TOTAL INCOME WAS ASSESSED AT RS. 40,33,532/ - . EVEN THE ORDER PASSED BY LD.CIT(A) IS AN EX - PARTE ORDER W HEREIN HE HAS DISMISSED THE APPEAL OF THE ASSESSEE WITHOUT GOING INTO THE MERITS OF THE CASE. IT IS A SETTLED LAW THAT LD. CIT(A) HAS NO JURISDICTION TO DISMISS THE APPEAL OF THE A SSESSEE WITHOUT GOING INTO THE MERITS OF THE ISSUE BEFORE HIM. EVEN IN AN E X PARTE ORDER , THE LD. CIT(A) SHOULD HAVE DECIDED THE GROUNDS OF APPEAL OF THE A SSESSEE ON MERITS THEREOF. CONSIDERING THE AFORESAID FACTS, I AM OF THE VIEW THAT IN THE INTEREST OF JUSTICE AND FAIR PLAY, THE A SSESSEE BE GIVEN ONE MORE OPPORTUNITY TO PRESEN T HIS CASE BEFORE CIT(A). I THEREFORE REMIT THE ISSUE BACK TO THE FILE OF CIT(A) TO DECIDE THE ISSUE AFRESH ON MERITS AND IN ACCORDANCE WITH LAW. NEEDLESS TO STATE THAT CIT(A) SHALL 4 GRANT ADEQUATE OPPORTUNITY OF HEARING TO BOTH THE PARTIES. ASSESSEE IS A LSO DIRECTED TO PROMPTLY FURNISH THE DETAILS CALLED FOR BY THE AUTHORITIES. IN CASE, THE ASSESSEE FAILS TO FURNISH THE REQUIRED DETAILS, THE AUTHORITIES SHALL BE FREE TO DECIDE THE ISSUE BASED ON MATERIAL ON RECORD. IN VIEW OF MY DECISION TO RESTORE THE ISSUE BACK TO THE FILE OF CIT(A), I AM NOT ADJUDI CATING ON MERITS THE OTHER GROUNDS OF THE APPEAL RAISED BY THE A SSESSEE. THUS, THE GROUNDS OF ASSESSEE ARE ALLOWED FOR STATISTICAL PURPOSES. 5. IN THE RESULT, THE APPEAL OF ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED ON THE 30 TH DAY OF SEPTEMBER, 201 9. SD/ - ( ANIL CHATURVEDI ) / ACCOUNTANT MEMBER PUNE ; DATED : 30 TH SEPTEMBER, 2019. RK / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT 3. 4. 5 6. THE CIT (A ) - 4 , PUNE THE P R. CIT - 3 , PUNE , , / DR, ITAT, SMC PUNE; / GUARD FILE. / BY ORDER // TRUE COPY // / PRIVATE SECRETARY , / ITAT, PUNE.