SHRI ADITYA ACHARYA, AJMER V. ITO, WARD-2(2), AJMER

ITA 1208/JPR/2019

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 7114 (ITAT-JAIPUR)
• Duration Of Justice: 10 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-08-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2011-2012
• Appeal Filed On: 21-10-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: CHANCHAL MEENA CIT DHK
• Keywords: Transactions in derivatives; Revised return; Set aside
• Section: 143(3); 147; 148

Judgement Text

VK;DJ VIHYH; VF/KDJ.K] T;IQJ U;K;IHB] T;IQJ IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCH VC, JAIPUR JH FOT; IKY JKWO] U;KF;D LNL; ,O A JH FOE FLAG ;KNO] YS[KK LNL; DS LE{K BEFORE: SHRI VIJAY PAL RAO, JM & SHRI VIKRAM SINGH YADAV, AM VK;DJ VIHY LA-@ ITA NO. 1208/JP/2019 FU/KZKJ.K O'K Z@ ASSESSMENT YEAR : 2011-12. SHRI ADITYA ACHARYA 15/548, NEAR HOTEL DATA INN, SHRINAGAR ROAD, AJMER. CUKE VS. THE INCOME TAX OFFICER, WARD 2(2), AJMER. LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN NO. AGHPA 3088 P VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT FU/KZKFJRH DH VKSJ LS@ ASSESSEE BY : NONE JKTLO DH VKSJ LS@ REVENUE BY : MS CHANCHAL MEENA (ADDL.CIT) LQUOKBZ DH RKJH[K@ DATE OF HEARING : 25.08.2020. ?KKS'K .KK DH RKJH[K@ DATE OF PRONOUNCEMENT : 26/08/2020. VKNS'K@ ORDER PER VIJAY PAL RAO, JM : THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST TH E ORDER DATED 19 TH AUGUST, 2019 OF LD. CIT (A), AJMER FOR THE ASSESSMENT YEAR 2011-12. THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS :- 1. INITIATION OF PROCEEDING UNDER SECTION 147 AND ISSUE OF NOTICE UNDER SECTION 148 IS BAD IN LAW. 2. ADDITION OF RS. 1054969 (RS. 1044524 FOR BOGUS L OSS AND RS. 10445 COMMISSION ON SUCH LOSS AT 1 PERCENT IS ALSO BAD IN LAW. 3. ADDITION OF RS. 660000 FOR BANK DEPOSITS. NON GRANTING COGNIZANCE TO REVISED RETURN FILED AN D MAKING ADDITION OF RS. 54960/- AND DISALLOWING CLAIM OF CH APTER VI A OF RS. 100000. 4. ANY OTHER MATTER WITH PRIOR PERMISSION OF THE CH AIR. 2 ITA NO. 1208/JP/2019 SHRI ADITYA ACHARYA, AJMER. 2. NONE HAS APPEARED ON BEHALF OF THE ASSESSEE DESP ITE THE NOTICES AND INTIMATION WAS SENT TO THE ASSESSEE AND HIS A/R. EV EN THE INVITE FOR VIDEO CONFERENCE HEARING WAS ALSO SENT TO THE LD. A/R OF THE ASSESEE BUT THERE WAS NO RESPONSE TO THE SAME ON BEHALF OF THE ASSESSEE. AC CORDINGLY, WE PROPOSED TO HEAR AND DISPOSE OFF THIS APPEAL EX PARTE. 3. THE HEARING OF THE APPEAL IS CONCLUDED THROUGH V IDEO CONFERENCE DUE TO PREVAILING CONDITION OF COVID 19 PANDEMIC. 4. THE ASSESSEE FILED HIS RETURN OF INCOME ON 07.11 .2012 DECLARING TOTAL INCOME OF RS. 1,52,360/-. SUBSEQUENTLY ON THE BASIS OF INF ORMATION RECEIVED FROM DIT INVESTIGATION KOLKATA REGARDING TAKING ACCOMMODATIO N ENTRIES OF BOGUS LOSSES IN THE DERIVATIVE COMMODITY TRANSACTIONS, THE AO ISSUED NO TICE UNDER SECTION 148 ON 28.03.2018. IN RESPONSE TO THE NOTICE THE ASSESSEE FILED REVISED RETURN OF INCOME DECLARING TOTAL INCOME OF RS. 97,400/- ON 08.09.201 8. THE AO COMPLETED THE ASSESSMENT UNDER SECTION 143(3) READ WITH SECTION 1 47 OF THE ACT WHEREBY AN ADDITION OF RS. 10,54,969/- WAS MADE ON ACCOUNT OF BOGUS LOSSES BOOKED BY THE ASSESSEE INCLUDING 1% BROKERAGE TREATING THE SAME A S UNDISCLOSED INCOME OF THE ASSESSEE FROM OTHER SOURCES AS WELL AS OTHER ADDITI ON ON ACCOUNT OF CASH DEPOSIT IN THE BANK ACCOUNT OF RS. 6,60,000/-. THE ASSESSEE C HALLENGED THE ACTION OF THE AO BEFORE THE LD. CIT (A) AND ALSO RAISED THE GROUND A GAINST THE VALIDITY OF REOPENING OF THE ASSESSMENT. 4.1. THE LD. D/R HAS SUBMITTED THAT NONE HAS APPEAR ED ON BEHALF OF THE ASSESSEE BEFORE THE LD. CIT (A) AND, THEREFORE, THE LD. CIT (A) AFTER CONSIDERING THE REASONS RECORDED BY THE AO HAS DECIDED THIS ISSUE AGAINST T HE ASSESSEE. SIMILARLY, WHEN THE ASSESSEE HAS NOT FURNISHED ANY EXPLANATION OR DOCUM ENTARY EVIDENCE TO COUNTER THE 3 ITA NO. 1208/JP/2019 SHRI ADITYA ACHARYA, AJMER. FACTUAL FINDING OF THE AO, THE LD. CIT (A) HAS CONF IRMED THE ADDITION MADE BY THE AO ON ACCOUNT OF BOGUS LOSSES BOOKED BY THE ASSESSEE I N RESPECT OF THE DERIVATIVE TRANSACTIONS IN COMMODITY AS WELL AS UNEXPLAINED CA SH DEPOSIT IN THE BANK ACCOUNT. THE LD. D/R HAS RELIED UPON THE ORDERS OF THE AUTHO RITIES. 5. HAVING CONSIDERED THE CONTENTION OF THE LD. D/R AS WELL AS THE IMPUGNED ORDER OF THE LD. CIT (A) WE NOTE THAT AFTER FILING THE APPEAL BEFORE THE LD. CIT (A), THE ASSESSEE HAS NOT APPEARED BEFORE THE LD. CIT (A ) DESPITE 7 (SEVEN) OPPORTUNITIES GIVEN BY THE LD. CIT (A). SINCE THE ASSESSEE IS ALS O NOT APPEARING BEFORE THE TRIBUNAL, THEREFORE, IN THE ABSENCE OF ANY ARGUMENT S ON BEHALF OF THE ASSESSEE OR ANY MATERIAL TO BE RELIED UPON BY THE ASSESSEE, IT IS NOT POSSIBLE TO GIVE A CONCLUSIVE FINDING ON THIS ISSUE. HENCE IN THE FACTS AND CIRCU MSTANCES OF THE CASE AND IN THE INTEREST OF JUSTICE, WE TAKE A LENIENT VIEW AND GRA NT ONE MORE OPPORTUNITY TO THE ASSESSEE TO PRESENT HIS CASE BEFORE THE LD. CIT (A) . ACCORDINGLY THE ORDER OF THE LD. CIT (A) IS SET ASIDE AND THE MATTER IS REMITTED TO THE RECORD OF THE LD. CIT (A) FOR DECIDING THE SAME AFRESH AFTER GIVING ONE MORE OPPO RTUNITY OF HEARING TO THE ASSESSEE. 6. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER IS PRONOUNCED IN THE OPEN COURT ON 26/08/2 020. SD/- SD/- ( FOE FLAG ;KNO ) ( FOT; IKY JKWO (VIKRAM SINGH YADAV ) (VIJAY PAL RAO) YS[KK LNL;@ ACCOUNTANT MEMBER U;KF;D LNL;@ JUDICIAL MEMBER JAIPUR DATED:- 26/08/2020. 4 ITA NO. 1208/JP/2019 SHRI ADITYA ACHARYA, AJMER. DAS/ VKNS'K DH IZFRFYFI VXZSF'KR@ COPY OF THE ORDER FORWARDED TO: 1. THE APPELLANT- SHRI ADITYA ACHARYA, AJMER. 2. THE RESPONDENT THE ITO WARD 2(2), AJMER. 3. THE CIT(A). 4. THE CIT, 5. THE DR, ITAT, JAIPUR 6. GUARD FILE (ITA NO. 1208/JP/2019) VKNS'KKUQLKJ@ BY ORDER, LGK;D IATHDKJ@ ASSISTANT. REGISTRAR