Sri K Mahesh Kumar , Hospet V. Deputy Commissioner of Income TAX Central Circle-2(1), Bangalore

ITA 1245/BANG/2018

• Counselvise Citation: [2018] 121 COUNSELVISE.COM (IT) 4708 (ITAT-BANGALORE)
• Duration Of Justice: 1 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-06-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2011-2012
• Appeal Filed On: 16-04-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Opportunity of being heard
• Section: 143(3); 153A; 132

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH : BANGALORE BEFORE SHRI N.V. VASUDEVAN, JUDICIAL MEMBER AND SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER ITA NO. 1245/BANG/2018 ASSESSMENT YEAR : 2011 - 12 SHRI K. MAHESH KUMAR, 21 ST WARD, BELLARY ROAD CIRCLE, HOSPET 583 201. PAN: AQPLM 9826H VS. THE DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE 2(1), BENGALURU. APP ELL ANT RESPONDENT A PP EL LANT BY : SHRI RAVI SHANKAR, ADVOCATE RE SPONDENT BY : SHRI DILIP, DR DATE OF HEARING : 2 3 . 0 5 .201 8 DATE OF PRONOUNCEMENT : 01.06.2018 O R D E R PER N.V. VASUDEVAN, JUDICIAL MEMBER THIS APPEAL BY THE ASSESSEE IS AGAINST THE ORDER DATED 15.03.2018 OF CIT(APPEALS)-11, BANGALORE RELATING TO ASSESSMEN T YEAR 2011-12. 2. THE ASSESSEE IS AN INDIVIDUAL ENGAGED IN THE BUS INESS OF TRADING AND TRANSPORT OF IRON ORE. AN ORDER OF ASSESSMENT U/S. 143(3) OF THE ACT FOR THE AY 2011-12 WAS PASSED BY THE AO ON 31.3.2013. FOR THE AY 2011-12 THE ASSESSEE FILED RETURN OF INCOME ON 04.10.12 DEC LARING TAXABLE INCOME OF RS.1,57,31,670. THE ASSESSMENT IN QUESTION WAS FRAMED U/S. 153A R.W.S. 143(3) OF THE INCOME-TAX ACT, 1961 [THE ACT ] CONSEQUENT TO SEARCH & SEIZURE OPERATION CARRIED OUT IN THE CASE OF ASSE SSEE U/S. 132 OF THE ACT ON 25.10.2010. THE AO DETERMINED THE TOTAL INCOME OF THE ASSESSEE AT A ITA NO. 1245/BANG/2018 PAGE 2 OF 3 SUM OF RS.136,30,53,886. AGAINST THE VARIOUS ADDITI ONS MADE IN THE ASSESSMENT, THE ASSESSEE PREFERRED AN APPEAL BEFORE THE CIT(APPEALS). 3. THE CIT(APPEALS) NOTICED THAT THE ASSESSEE HAD N OT PAID TAX ON THE INCOME DECLARED IN THE RETURN OF INCOME AND THEREFO RE APPEAL SHOULD NOT BE ADMITTED AS LAID DOWN IN CLAUSE (A) OF SUB-SECTION (4) OF SECTION 249. THE CIT(APPEALS) PASSED THE ORDER DATED 16.3.2015. AGA INST THE SAID ORDER, THE ASSESSEE FILED AN APPEAL BEFORE THE TRIBUNAL IN ITA NO.1206/BANG/2015. 4. BEFORE THE TRIBUNAL, THE ASSESSEE SUBMITTED THAT A SUM OF RS.5 CRORES WAS SEIZED BY THE INCOME TAX DEPARTMENT, OUT OF WHICH A SUM OF RS.2,92,16,090 WAS ADJUSTED AND THE BALANCE SUM OF RS.2,07,83,910 WAS AVAILABLE WITH THE DEPARTMENT AND THE SAME CAN BE A DJUSTED AGAINST THE ADMITTED TAX DUE ON THE INCOME DECLARED IN THE RETU RN OF INCOME BY THE ASSESSEE. THE TRIBUNAL VIDE ORDER DATED 15.02.2017 IN ITA NO.1206/BANG/2015 REMANDED THE MATTER TO THE CIT(AP PEALS) TO VERIFY THE CLAIM OF ASSESSEE AND HEAR THE APPEAL ON MERITS, SU BJECT TO VERIFICATION OF THE CLAIM OF ASSESSEE AS MADE BEFORE THE TRIBUNAL. 5. PURSUANT TO THE ORDER OF TRIBUNAL, THE CIT(APPEA LS) PASSED THE IMPUGNED ORDER WHEREIN HE HELD THAT THERE WAS NO AM OUNT AVAILABLE FOR ADJUSTMENT OF TAX LIABILITY U/S. 140A OF THE ACT AN D HE THEREFORE DISMISSED THE APPEAL OF THE ASSESSEE AS UNADMITTED FOR NON-PA YMENT OF TAX ON INCOME DECLARED IN THE RETURN OF INCOME. 6. AGGRIEVED BY THE ORDER OF CIT(APPEALS), THE ASS ESSEE HAS PREFERRED THE PRESENT APPEAL BEFORE THE TRIBUNAL. 7. AT THE TIME OF HEARING, THE LD. COUNSEL FOR THE ASSESSEE FILED BEFORE US CHALLANS EVIDENCING PAYMENT OF TAX ON THE TOTAL INCOME DECLARED BY THE ASSESSEE IN THE RETURN OF INCOME. COPY OF THE CHAL LANS WERE ALSO GIVEN TO ITA NO. 1245/BANG/2018 PAGE 3 OF 3 THE LD. DR, WHO ACCEPTED THE FACT THAT THE TAX DUE ON INCOME DECLARED IN THE RETURN OF INCOME HAS SINCE BEEN PAID BY THE ASS ESSEE. THE LD. COUNSEL FOR THE ASSESSEE PRAYED THAT THE IMPUGNED ORDER MAY BE SET ASIDE AND CIT(APPEALS) BE DIRECTED TO HEAR THE APPEAL OF ASSE SSEE ON MERITS. THE LD. DR HAD NO OBJECTION FOR ADOPTING SUCH A COURSE. AC CORDINGLY, THE ORDER OF CIT(APPEALS) IS SET ASIDE AND THE CIT(APPEALS) IS D IRECTED TO HEAR AND DECIDE THE APPEAL OF ASSESSEE ON MERITS, AFTER AFFO RDING OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. 8. IN THE RESULT, THE APPEAL IS TREATED AS ALLOWED FOR STATISTICAL PURPOSES. PRONOUNCED IN THE OPEN COURT ON THIS 1 ST DAY OF JUNE, 2018. SD/- SD/- ( INTURI RAMA RAO ) ( N.V. VASUDEVAN ) ACCOUNTANT MEMBER JUDICIAL MEMBER BANGALORE, DATED, THE 1 ST JUNE, 2018. / D ESAI S MURTHY / COPY TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR, ITAT, BANGALORE. 6. GUARD FILE BY ORDER SENIOR PRIVATE SECRETARY ITAT, BANGALORE.