M/s Konark Rajhans Pvt. Ltd., Panchkula V. DCIT, Circle, Panchkula

ITA 1186/CHANDI/2017

• Counselvise Citation: [2018] 126 COUNSELVISE.COM (IT) 5199 (ITAT-CHANDIGARH)
• Duration Of Justice: 6 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-02-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2012-2013
• Appeal Filed On: 01-08-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Reasonable cause
• Section: 40A(3)

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL CHANDIGARH BENCHES A, CHANDIGARH BEFORE SHRI SANJAY GARG, JUDICIAL MEMBER & DR. B.R.R. KUMAR, ACCOUNTANT MEMBER ITA NO. 1186/CHD/2017 ASSESSMENT YEAR: 2012-13 M/S KONARK RAJHANS PVT.LTD, VS. THE DCIT, #55. SECTOR 25, PANCHKULA PANCHKULA NOW AT - FIRST FLOOR, SCO-406, SECTOR 20, PANCHKULA PAN NO.AAECK2405Q (APPELLANT) (RESPONDENT) APPELLANT BY : SH. AMITOZ SINGH KAMBOJ, CA RESPONDENT BY : SMT. CHANDERKANTA, ADDL. CIT DATE OF HEARING : 21.02.2018 DATE OF PRONOUNCEMENT : 21.02.2018 ORDER PER SANJAY GARG, JUDICIAL MEMBER: THE PRESENT APPEAL HAS BEEN PREFERRED BY THE ASSESS EE AGAINST THE ORDER DATED 31.08.2016 OF THE COMMISSIONER OF INCOM E TAX (APPEALS), [HEREINAFTER REFERRED TO AS CIT(A)], PANCHKULA. 2. THE ASSESSEE IS AGGRIEVED BY THE DISALLOWANCE MA DE BY ASSESSING OFFICER US 40A(3) OF THE INCOME-TAX ACT, 1961 READ WITH RULE 6DD ON ACCOUNT OF CASH PAYMENTS MADE FOR PURCHASE OF LAND. 3. THE ASSESSEE IS A BUILDER AND DEVELOPER AND FOR ITS BUSINESS ACTIVITY IT PURCHASED CERTAIN LAND FROM VILLAGERS. THE ASSES SEE MADE TOTAL PAYMENT 2 OF ABOUT RS. 16 CRORES AS CONSIDERATION FOR THE PUR CHASE OF LAND FROM DIFFERENT SELLERS OUT OF WHICH AN AMOUNT OF RS. 3.3 4 CRORES WAS MADE IN CASH. HOWEVER, CONSIDERING THE SUBMISSIONS OF THE ASSESSEE, THE LD. ASSESSING OFFICER RESTRICTED THE ADDITION U/S 40A(3 ) TO THE EXTENT OF RS. 1.70 CORES. BEING AGGRIEVED BY THE ABOVE, THE ASSES SEE PREFERRED APPEAL BEFORE THE CIT(A). 4. THE LD. COUNSEL FOR THE ASSESSEE HAS SUBMITTED T HAT THE ASSESSEE COULD NOT APPEAR BEFORE THE CIT(A) AS THE ADDRESS O F THE ASSESSEE WAS CHANGED AND HENCE, THE NOTICES OF HEARING COULD NO T BE RECEIVED BY THE ASSESSEE. THAT THERE WAS CHANGE IN THE MANAGEMENT A LSO. DUE TO THESE CIRCUMSTANCES, THE CASE REMAINED UNREPRESENTED BEFO RE THE CIT(A). THE LD. CIT(A), THEREFORE, PASSED AN EX-PARTE ORDER. T HE LD. COUNSEL HAS FURTHER SUBMITTED THAT THE ASSESSEE HAS A GOOD CASE ON MERITS AND THAT THERE WAS A REASONABLE CAUSE FOR MAKING THE SAID PAYMENTS IN CASH. LD. COUNSEL, THEREFORE, HAS SUBMITTED THAT ASSESSEE MAY BE GIVEN AN OPPORTUNITY TO PRESENT ITS CASE BEFORE THE CIT(A) SO THAT IT MAY D EMONSTRATE THE REASONS AND JUSTIFICATION FOR MAKING A SMALL PORTION OF T HE TOTAL CONSIDERATION IN CASH. 5. THE LD. DR, ON THE OTHER HAND, HAS RELIED ON THE FINDINGS OF THE LOWER AUTHORITIES. 6. CONSIDERING THE OVERALL FACTS AND CIRCUMSTANCES, IN OUR VIEW, THE INTEREST OF JUSTICE WILL BE WELL SERVED IF THE ASSE SSEE IS GIVEN AN OPPORTUNITY TO PRESENT ITS CASE BEFORE CIT(A). IN VIEW OF THIS, WE SET ASIDE THE ORDER OF CIT(A) AND RESTORE THE SAME TO THE FIL E OF THE CIT(A) FOR DECISION AFRESH. NEEDLESS TO SAY THAT CIT(A) WILL G IVE PROPER OPPORTUNITY 3 TO THE ASSESSEE TO PRESENT ITS CASE AND ASSESSEE W ILL PRESENT ITSELF BEFORE THE LD. CIT(A) AS AND WHEN CALLED FOR AND WOULD NOT DELIBERATELY CONTRIBUTE IN DELAYING THE CONCLUSION OF THE APPEAL. 7. THE APPEAL OF THE ASSESSEE IS ALLOWED FOR STATIS TICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT. SD/- SD/- (DR. B.R.R. KUMAR) (SANJAY GARG) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 21.02.2018 RKK COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT 4. THE CIT(A) 5. THE DR