Raghunath Bhiku Kand, Pune V. Income-tax Officer, Ward - 12 (4), Pune

ITA 1171/PUN/2019

• Counselvise Citation: [2019] 112 COUNSELVISE.COM (IT) 0984 (ITAT-PUNE)
• Duration Of Justice: 4 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-12-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2013-2014
• Appeal Filed On: 02-08-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S P WALIMBE
• Keywords: Unexplained cash credit; Opportunity of being heard; Principle of natural justice
• Section: 68

Judgement Text

, - IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH SMC, PUNE . , BEFORE SHRI D. KARUNAKARA RAO, AM . / ITA NO.1171/PUN/2019 / ASSESSMENT YEAR : 2013-14 RAGHUNATH BHIKU KAND, PROP. JAI CHETAN WAREHOUSING, RAMNAGAR, A/P LONIKAND, TALUKA HAVELI, PUNE-412207. PAN : BMVPK4626A . /APPELLANT VS. ITO, WARD-12(4), PUNE. . / RESPONDENT / APPELLANT BY : SHRI PRAMOD SHINGATE / RESPONDENT BY : SHRI S. P. WALIMBE / DATE OF HEARING : 16.12.2019 / DATE OF PRONOUNCEMENT: 16.12.2019 / ORDER PER D. KARUNAKARA RAO, AM : THIS APPEAL IS FILED BY THE ASSESSEE AGAINST THE ORDER OF CIT(A)-5, PUNE DATED 20.05.2019 FOR THE ASSESSMENT YEAR 2013-14. 2. THE EFFECTIVE GROUND RAISED BY THE ASSESSEE IS AS UNDER :- 1. ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW LD. A.O. ERRED IN MAKING THE ADDITION OF RS.4,60,000/- BEING CASH DEPOSITED IN BANK ACCOUNT AS UNEXPLAINED CASH CREDIT U/S.68. IT IS YOUR APPELLANTS CONTENTION THAT APPELLANT IS IN POSSESSION OF ALL THE EVIDENCES IN SUPPORT OF THIS CASH CREDITS AND SAME SHALL BE CONSIDERED, HOWEVER LOWER AUTHORITIES HAVE REJECTED THE SAME. 3. BRIEFLY EXPLAINING THE BACKGROUND FACTS, LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE ASSESSEE IS ENGAGED IN THE BUSINESS OF RENTING OF PROPERTY AND EARNED INCOME AGAINST THE RENTS. DURING THE ASSESSMENT ITA NO.1171/PUN/2019 - 2 - PROCEEDINGS, THE ASSESSEE IS FOUND DEPOSITING CASH OF RS.3 LAKHS ON 12.05.2012 IN TWO INSTALMENTS AND DEPOSITING ANOTHER CASH OF RS.1.60 LAKHS ON 17.07.2012 AGGREGATED TO RS.4.60 LAKHS IN THE BANK ACCOUNT OF MAHANAGAR CO-OP. BANK LTD. THE SOURCES OF THIS CASH DEPOSITS OF RS.4.60 LAKHS IS AN ISSUE DURING THE ASSESSMENT PROCEEDINGS. ON FINDINGS, THE FAILURE TO FURNISH THE DETAILS REGARDING THE SOURCES OF CASH DEPOSITS AND ASSESSEES FAILURE TO DISCHARGE THE ONUS, THE ASSESSING OFFICER INVOKED THE PROVISIONS OF SECTION 68 OF THE ACT AND MADE ADDITION ACCORDINGLY. 4. ON THIS ISSUE, THE ASSESSEE FILED AN APPEAL BEFORE THE CIT(A). THE ASSESSEE MADE VARIOUS SUBMISSIONS AND THE SUBMISSIONS REVOLVED AROUND THE AGRICULTURAL INCOME, 7/12 EXTRACTS AND ASSESSEES FAILURE TO DISCLOSE THE TRANSACTION OF SALE OF SUGARCANE AND RELATED AGRICULTURAL PRODUCT TO ONE SHRI PRAMOD PANDEY. THERE WAS OCCASION FOR REVENUE TO RECORD THE STATEMENT FROM SHRI PANDEY REGARDING THE PAYMENT OF RS.4.60 LAKHS. CONSIDERING THE SAME, THE CIT(A) CONFIRMED THE ADDITION MADE BY THE ASSESSING OFFICER AS PER DISCUSSION GIVEN IN PARA 10 AND ITS SUBPARAGRAPHS OF HIS ORDER. 5. AGGRIEVED WITH THE SAME, THE ASSESSEE IS IN APPEAL BEFORE THE TRIBUNAL WITH THE ABOVE EXTRACTED GROUND. 6. BEFORE ME, AT THE OUTSET, LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE ASSESSMENT WAS MADE HURRIEDLY WITHOUT CONSIDERING THE PROPER FACTS OF THE TRANSACTIONS OF SALE OF AGRICULTURAL PRODUCE TO SHRI PANDEY. THE LD. COUNSEL FOR THE ASSESSEE WAS READY TO PRODUCE SHRI PANDEY BUT ASSESSING ITA NO.1171/PUN/2019 - 3 - OFFICER WAS NOT EXAMINED HIM. THE LD. COUNSEL MADE A STATEMENT AT BAR IN FAVOUR OF PRODUCING SHRI PANDEY BEFORE THE ASSESSING OFFICER/CIT(A) IF AN OPPORTUNITY GRANTED TO THE ASSESSEE. 7. REFERRING TO THE REMAND REPORT, LD. COUNSEL SUBMITTED THAT REQUISITE ENQUIRY WAS NOT CONDUCTED BY THE ASSESSING OFFICER. CONSIDERING THE ABOVE AND PROCEDURAL DEFICIENCY, LD. COUNSEL FOR THE ASSESSEE PLEADED FOR REMANDING THE ISSUE ONCE AGAIN TO THE FILE OF THE ASSESSING OFFICER FOR FRESH ADJUDICATION. 8. ON THE OTHER HAND, LD. DR FOR THE REVENUE HEAVILY RELIED ON THE ORDERS OF THE ASSESSING OFFICER AND THE CIT(A). THE LD. DR SUBMITTED THAT THE ASSESSEE IS OPINION FOR DELAYING THE PROCEEDINGS AND WAITING TILL THE END OF THE DUE DATES. 9. HEARD BOTH THE SIDES ON THIS LIMITED ISSUE OF REMANDING THE MATTER TO THE FILE OF THE ASSESSING OFFICER FOR FRESH ADJUDICATION. IT IS THE LIMITED PRAYER OF THE ASSESSEE THAT THE SAID SUM OF RS.4.60 LAKHS WAS RECEIVED BY SHRI PRAMOD PANDEY AND SHRI PANDEY IS REQUIRED TO BE EXAMINED IF THERE IS ANY DOUBT ABOUT THE TRANSACTIONS. REFERRING TO PAGE 16 AND ITS ANNEXURES OF THE PAPER BOOK, LD. COUNSEL SUBMITTED THAT SHRI PANDEY HAS ALREADY CONFIRMED THE TRANSACTION OF PAYMENT OF THE SAID CASH WHICH IS DEPOSITED IN THE BANK ACCOUNT. FURTHER, I HAVE NOTICED FROM THE PAPER BOOK THAT THERE IS NO CLARITY ON THE FURNISHING OF ALL THE 22 PAGES OF THE PAPER BOOK AND OTHERS BEFORE THE ASSESSING OFFICER AND THE CIT(A). ITA NO.1171/PUN/2019 - 4 - 10. CONSIDERING THE ABOVE DISCREPANCIES, I FIND IT IS APPROPRIATE TO REMAND THE ISSUE TO THE FILE OF THE ASSESSING OFFICER FOR FRESH ADJUDICATION IN ACCORDANCE WITH INTEREST OF ADMINISTRATION OF JUSTICE. THUS, ENTIRE ISSUE IS REMANDED TO THE FILE OF THE ASSESSING OFFICER FOR FRESH ADJUDICATION. THE ASSESSING OFFICER SHALL GRANT REASONABLE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE IN ACCORDANCE WITH SET PRINCIPLES OF NATURAL JUSTICE. ACCORDINGLY, THE GROUND RAISED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. 11. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED ON THIS 16 TH DAY OF DECEMBER, 2019. SD/- (D. KARUNAKARA RAO) / ACCOUNTANT MEMBER / PUNE; DATED : 16 TH DECEMBER, 2019. SUJEET / COPY OF THE ORDER IS FORWARDED TO : 1. / THE APPELLANT; 2. / THE RESPONDENT; 3. THE CIT(A)-5, PUNE; 4. THE PR. CIT-4, PUNE; 5. , , - / DR SMC, ITAT, PUNE; 6. / GUARD FILE. / BY ORDER, //TRUE COPY// SENIOR PRIVATE SECRETARY , / ITAT, PUNE