Ritu Mehra, Kolkata V. DCIT,Cir-28,Kolkata, Kolkata

ITA 1274/KOL/2012

• Counselvise Citation: [2013] 140 COUNSELVISE.COM (IT) 70452 (ITAT-KOLKATA)
• Duration Of Justice: 1 year(s) 3 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-12-2013
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2006-2007
• Appeal Filed On: 05-09-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: S L KOCHAR
• Keywords: Opportunity of being heard; Peak credit
• Section: 80C; 143(3); 133(6)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH: KOL KATA [BEFORE SHRI SHAMIM YAHYA, A.M. & SHRI GEORGE MATHA N, J.M. ] I.T.A. NO.1274/KOL/2012 ASSESSMENT YEAR : 2006-07 RITU MEHRA .. ( APPELLANT ) (PAN:AEUPM 7639 H) -VS- DCIT, CIRCLE-28, KOLKATA .. ( RESPONDENT ) DATE OF CONCLUDING THE HEARING : 16.12.2013 DATE OF PRONOUNCING THE ORDER : 20.12.2013 APPEARANCES : FOR THE APPELLANTS :SHRI S.L.K OCHAR : FOR THE RESPONDENT :SHRI SANJAY MUKHERJ EE, JDIT, SR.DR O R D E R PER SHRI SHAMIM YAHYA, A.M. THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST TH E ORDER OF THE CIT(A) DATED 20.07.2012 AND PERTAINS TO ASSESSMENT YEAR 2006-07. 2. GROUNDS RAISED READ AS UNDER: 1. FOR THAT THE LD. CIT(A) ERRED IN DISMISSING THE APPEAL OF THE APPELLANT WITHOUT PROPERLY CONSIDERING THE ISSUES I NVOLVED AND THE CONTENTIONS RAISED BEFORE HIM. 2. FOR THAT THE LD. CIT(A) ERRED IN CONFIRMING ADDI TION OF RS.2,20,000/- MADE BY THE ASSESSING OFFICER ON THE ALLEGED GROUNDS. 3. FOR THAT THE LD. CIT(A) OUGHT TO HAVE ACCEPTED THE EXPLANATION OF THE APPELLANT IN RESPECT OF THE ENTRIES IN THE BANK ACCOUNT AND OUGHT TO HAVE RESTRICTED THE ADDITION TO RS.53,600/- AS T HE BALANCE OF THE ENTRIES RELATED TO MATURITY AMOUNTS OF INVESTMENTS. 4. FOR THAT THE LD. CIT(A) OUGHT TO HAVE TAKEN NOT E OF THE STATEMENT OF ACCOUNTS AND THE RETURN OF INCOME REGARDING PAYM ENTS OF RS.1,00,000/- WHEREBY DEDUCTION WAS CLAIMED U/S 80C AND NECESSARY DIRECTIONS OUGHT TO HAVE BEEN ISSUED BY THE LD. CIT (A) TO THE A.O. TO ALLOW DEDUCTION. 2 ITA NO.1274/KOL/2012 RITU MEHRA /ASSESSMENT YEAR: 2006-07 5. FOR THAT THE APPELLANT CRAVES LEAVE TO SUBMIT R ELEVANT EVIDENCES IN SUPPORT OF HER CLAIM FOR DEDUCTION U/S 80C WITH PRA YER FOR ITS ADMISSION. 6. FOR THAT FURTHER GROUNDS OF APPEAL MAY KINDLY B E TAKEN TO BE ALLOWED AT THE TIME OF HEARING OF THE APPEAL. 3. IN THIS CASE, ASSESSMENT WAS FRAMED UNDER SECTIO N 143(3) OF THE I.T. ACT. DURING THE COURSE OF ASSESSMENT, THE AO NOTED THAT ASSESSEES COUNSEL FILED EVIDENCES OF SOURCES OF INVESTMENT MADE AS PER AIS INFORMATION EXCEPT THE INVESTMENT OF RS.2,20,000/- MADE IN DSP MERRILL LYN CH MUTUAL FUND IN SPITE OF AMPLE OPPORTUNITY. NOTICE UNDER SECTION 133(6) OF T HE ACT WAS SENT TO DSP MERRILL LYNCH MUTUAL FUND. FROM THEIR REPLY, IT WAS FOUND T HAT THE ASSESSEE INVESTED RS.2,20,000/- FROM ICICI BANK ACCOUNT, BALLYGUNGE B RANCH, KOLKATA. THE AO NOTED THAT THIS ACCOUNT NUMBER WAS NOT DISCLOSED BY THE ASSESSEE. DESPITE QUERY, NO EXPLANATION WAS FILED FROM THE ASSESSEE. HENCE, THE AO ADDED PEAK BALANCE OF RS.2,26,000/- AS ON 07.01.2006 AND THIS WAS ADDED B ACK AS UNEXPLAINED INCOME. 4. THE ASSESSEE APPEALED AGAINST THE ABOVE ADDITION BEFORE THE LD. CIT(A). BEFORE THE LD. CIT(A), ASSESSEES COUNSEL SUBMITTED THAT THE ADDITION MADE BE RESTRICTED TO RS.53,600/-, WHICH IS ACCUMULATED SUM OF FIRST THREE CASH DEPOSITS. THE LD. CIT(A) DID NOT FIND ANY MERIT IN THE SUBMIS SIONS OF THE ASSESSEE. THE CIT(A) CONFIRMED THE ACTION OF THE AO. 5. THE LD. CIT(A) FURTHER NOTED THAT IN GROUND NO.5 RAISED BEFORE HIM, THE ASSESSEE HAS CONTENDED THAT THE AO OUGHT TO HAVE AL LOWED DEDUCTION AS CLAIMED. THIS RELATED TO DEDUCTION UNDER SECTION 80C OF RS.1 ,00,000/-. HOWEVER, THE LD. CIT(A) NOTED THAT NO EVIDENCE WAS PRODUCED IN THIS REGARD. HENCE, THE LD. CIT(A) DISMISSED THIS GROUND. 6. AGAINST THE ABOVE ORDER, THE ASSESSEE IS IN APPE AL BEFORE US. 7. WE HAVE HEARD BOTH THE COUNSELS AND PERUSED THE RECORDS. THE LD. COUNSEL OF THE ASSESSEE SUBMITTED THAT THE ASSESSEE HAS NOT BEEN GIVEN PROPER OPPORTUNITY 3 ITA NO.1274/KOL/2012 RITU MEHRA /ASSESSMENT YEAR: 2006-07 TO SUBMIT NECESSARY EXPLANATION. HE PRAYED THAT ONE MORE OPPORTUNITY SHOULD BE GRANTED TO THE ASSESSEE AND SUBMITTED THAT THE ASSE SSEE SHALL BE COOPERATING AND SUBMITTING THE NECESSARY DETAILS. 8. THE LD. DR, ON THE OTHER HAND, RELIED UPON THE O RDERS OF THE AUTHORITIES BELOW. 9. WE HAVE CAREFULLY CONSIDERED THE SUBMISSIONS AND PERUSED RECORDS. WE FIND THAT DURING THE COURSE OF ASSESSMENT, IT WAS OBSERV ED THAT THE ASSESSEE HAS A BANK ACCOUNT, WHICH WAS NOT DISCLOSED TO THE AUTHORITIES . THE AO HAD ADDED PEAK BALANCE IN THIS A/C. AMOUNTING TO RS.2,26,000/- AS UNEXPLAINED INCOME OF THE ASSESSEE. IN THIS REGARD, THE LD. COUNSEL OF THE AS SESSEE HAS SUBMITTED THAT THE ASSESSEE SHOULD BE GRANTED ONE MORE OPPORTUNITY SO THAT THE ASSESSEE IS IN A POSITION TO GIVE NECESSARY EXPLANATION REGARDING TH E NATURE OF ENTRIES IN THIS BANK A/C. AFTER CAREFUL CONSIDERATION, WE FIND THAT THE INTEREST OF JUSTICE WILL BE SERVED IF THE ASSESSEE IS GIVEN ONE MORE OPPORTUNITY TO CANVA SS HER CASE PROPERLY. ACCORDINGLY, WE SET ASIDE THIS ISSUE TO THE FILES O F THE AO. THE AO SHALL CONSIDER THE ISSUE AFRESH, AFTER GIVING THE ASSESSEE PROPER OPPORTUNITY OF BEING HEARD. 10. AS REGARDS THE ASSESSEES GROUND FOR CLAIM OF DEDUCTION UNDER SECTION 80C AMOUNTING TO RS.1,00,000/-, WE FIND THAT THE LD. CI T(A) HAS DISALLOWED THE CLAIM IN ABSENCE OF NECESSARY EVIDENCE. WE FIND THAT ON T HE FIRST ISSUE, WE HAVE ALREADY REMITTED THE ISSUE TO THE FILE OF THE AO. WE DEEM I T APPROPRIATE TO REMIT THIS ISSUE ALSO TO THE FILE OF THE AO. 10. IN THE RESULT, THIS APPEAL FILED BY THE ASSESSE E STANDS ALLOWED FOR STATISTICAL PURPOSES. THIS ORDER IS PRONOUNCED IN THE COURT ON 20 TH DECEMBER, 2013. SD/- SD/- (GEORGE MATHAN) (SHAMIM YAHYA) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED : 20 TH DECEMBER, 2013 4 ITA NO.1274/KOL/2012 RITU MEHRA /ASSESSMENT YEAR: 2006-07 COPY OF THE ORDER FORWARDED TO: 1. RITU MEHRA, C/O- S.L. KOCHAR, ADVOCATE, 86, CANNING STREET, KOLKATA 700 001. 2 DCIT, CIRCLE-28, KOLKATA 3. THE CIT(A), 4. CIT, 5. DR, TRUE COPY, BY ORDER, ASSTT. REGISTRAR , ITAT, KOLKATA TALUKDAR(SR.P.S.)