C.Lavanya, Salem V. ITO Ward 2(1), Salem

ITA 1183/CHNY/2018

• Counselvise Citation: [2019] 118 COUNSELVISE.COM (IT) 2689 (ITAT-CHENNAI)
• Duration Of Justice: 10 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-02-2019
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2013-2014
• Appeal Filed On: 06-04-2018
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: SANAT KUMAR RAHA
• Keywords: Unexplained cash credit
• Section: 143(3); 68; 263

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH: CHENNAI . . . , ! ' # , $ #% BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER ./ ITA NO.1183/CHNY/2018 & '& /ASSESSMENT YEAR: 2013-14 SMT. C. LAVANYA, NO.54, BRINDAVAN ROAD, ALAGAPURAM, SALEM 636 016. VS. INCOME TAX OFFICER, WARD-2(1) SALEM. [PAN: ADIPL 7532P] ( () /APPELLANT) ( *+() /RESPONDENT) () , - / APPELLANT BY : NONE *+() , - /RESPONDENT BY : SHRI SANAT KUMAR RAHA, JCIT . , /$ /DATE OF HEARING : 16.01.2019 01' , /$ / DATE OF PRONOUNCEMENT : 18.02.2019 / O R D E R PER INTURI RAMA RAO, ACCOUNTANT MEMBER : THIS IS AN APPEAL FILED BY THE ASSESSEE DIRECTED A GAINST THE ORDER OF THE LEARNED PRINCIPAL COMMISSIONER OF INCOME TAX , SALEM (HEREINAFTER CALLED AS PCIT) DATED 01.03.2018 PAS SED U/S. 263 OF THE INCOME TAX ACT, 1961 (IN SHORT THE ACT) FOR THE A SSESSMENT YEAR (AY) 2013-14. ITA NO.1183/CHNY/2018 (AY: 2013-14) :- 2 -: 2. THE APPELLANT RAISED THE FOLLOWING GROUNDS OF AP PEAL: (1) THE PRINCIPAL COMMISSIONER OF INCOME-TAX IS NO T JUSTIFIED IN SETTING ASIDE THE ASSESSMENT IN THE CIRCUMSTANCES O F THE CASE. (2) THE VERY BASIS FOR THE PROPOSAL MADE BY NOTICE DATED 07-02-2018 THAT THERE IS AN UNEXPLAINED CREDIT OF RS 9,99,337 /- WHICH SHOULD BE BROUGHT TO TAX UNDER SECTION 68 OF THE INCOME TAX A CT, 1961S INCORRECT, THERE HAVING BEEN ONLY AN ADDITIONAL AMO UNT OF DEBIT IN ASSESSEES BALANCE SHEET AND NOT CREDIT. (3) THE PCIT OUGHT TO HAVE ACCEPTED THAT PROVISIONS OF SECTION WHICH APPLY ONLY TO UNEXPLAINED CREDIT ARE NOT APPL ICABLE TO ASSESSEES CASE. (4) ASSESSEE HAVING ADMITTED HER CAPITAL IN M/S S K S AUTOMOBILES AT AN AMOUNT, LARGER THAN THE CORRECT BALANCE, NO P REJUDICE CAUSED TO REVENUE, THUS MAKING IT INCORRECT, TO INVOKE SECTIO N 263. (5) THERE HAVING BEEN NO OCCASION OR SCOPE TO MAKE INQUIRY OR VERIFICATION, IN THE ABSENCE OF ADMISSION OF INCOME AT A LESSER AMOUNT RELIANCE ON AMENDMENT MADE TO SECTION 263 IS INCORRECT. FOR THESE AND OTHER REASONS, WHICH MAY BE STATED AT THE TIME OF HEARING OF THE APPEAL, IT IS PRAYED THAT THE ORD ER PASSED UNDER SECTION 263 MAY PLEASE BE CANCELLED. 3. THE BRIEF FACTS OF THE CASE ARE AS UNDER: THE APPELLANT IS AN INDIVIDUAL AND THE RETURN OF IN COME FOR THE AY 2013-14 WAS FILED ON 31.03.2015 DISCLOSING TOTAL IN COME OF RS. 11,67,190/-. AGAINST THE SAID RETURN OF INCOME, TH E ASSESSMENT WAS COMPLETED U/S. 143(3) OF THE ACT VIDE ORDER DATED 2 2.02.2016 ACCEPTING THE RETURNED INCOME. ON PERUSAL OF THE ASSESSMENT O RDER, THE LD. PCIT FOUND THAT THE AO HAD NOT EXAMINED THE GENUINENESS OF THE CREDIT OF RS. 38,05,225/- APPEARING IN THE NAME OF M/S. S.KS. AUT OMOBILES IN THE BOOKS OF THE APPELLANT. THEREFORE, HE ISSUED A SHO W-CAUSE NOTICE DATED 07.02.2018 U/S. 263 OF THE ACT PROPOSING TO REVISE THE ASSESSMENT U/S. ITA NO.1183/CHNY/2018 (AY: 2013-14) :- 3 -: 263 OF THE ACT. IN RESPONSE TO THE SAID SHOW CAUSE NOTICE, THE APPELLANT HAD FILED AN EXPLANATION VIDE HIS LETTER DATED 22.0 2.2018 REJECTING THE EXPLANATION THE LD. PCIT VIDE ORDER DATED 01.03.201 8 SET ASIDE THE ASSESSMENT WITH THE DIRECTION TO PASS FRESH ASSESSM ENT ORDER AFTER GIVING AN OPPORTUNITY OF HEARD TO THE APPELLANT. 4. BEING AGGRIEVED, THE APPELLANT IS IN APPEAL BEFO RE US IN THE PRESENT APPEAL. 5. THE SOLITARY ISSUE IS WHETHER THE LD. PCIT WAS J USTIFIED IN EXERCISING THE POWER OF REVISION U/S. 263 OF THE ACT. THE LD. PCIT HAD SET ASIDE THE ASSESSMENT ONLY ON THE GROUND THAT THE AO HAD NOT E XAMINED THE GENUINENESS OF THE CREDIT APPEARED IN THE NAME OF M /S. SKS AUTOMOBILES, IN THE BOOKS OF APPELLANT. NOTHING WA S SHOWN BEFORE US TO SHOW THAT THE AO HAD CAUSED A NECESSARY ENQUIRIES O N THE CREDITS APPEARED IN THE NAME OF M/S. SKS AUTOMOBILES. NEEDL ESS TO SAY THAT SUBSEQUENT TO INSERTION OF EXPLANATION TO S. 263 OF THE ACT W.E.F. 01.06.2015 FAILURE TO CAUSE NECESSARY ENQUIRIES OR EXAMINE AN ISSUE RENDERS THE ASSESSMENT ORDER ERRONEOUS AND PREJUDIC IAL TO THE INTEREST OF REVENUE. THEREFORE, WE UPHOLD THE ORDER OF REVISIO N U/S. 263 OF THE ACT. ITA NO.1183/CHNY/2018 (AY: 2013-14) :- 4 -: 6. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS DISMISSED. ORDER PRONOUNCED ON THE 18 TH DAY OF FEBRUARY, 2019 IN CHENNAI. SD/- SD/- ( . . . ) (N.R.S. GANESAN) /JUDICIAL MEMBER ( ! ' # ) (INTURI RAMA RAO) $ /ACCOUNTANT MEMBER /CHENNAI, 2 /DATED: 18 TH FEBRUARY, 2019. EDN, SR. P.S , */34 54'/ /COPY TO: 1. () /APPELLANT 4. . 6/ /CIT 2. *+() /RESPONDENT 5. 47 */ /DR 3. . 6/ ( )/CIT(A) 6. 8& 9 /GF