Badal Sanjay Sethi, Pune V. Income-tax Officer, Ward - 7(3), Pune

ITA 1277/PUN/2018

• Counselvise Citation: [2019] 118 COUNSELVISE.COM (IT) 6748 (ITAT-PUNE)
• Duration Of Justice: 5 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-01-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2013-2014
• Appeal Filed On: 03-08-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Unexplained cash credit
• Section: 143(3); 68

Judgement Text

] IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH SMC, PUNE BEFORE SHRI ANIL CHATURVEDI, AM AND SHRI VIKAS AWASTHY, JM . / ITA NO.1277/PUN/2018 / ASSESSMENT YEAR : 2013-14 BADAL SANJAY SETHI, MAXLINK 904 PLATINUM SQUARE, NEAR HYATT REGENCY, VIMAN NAGAR, PUNE 411 014. PAN : BBDPS1216D. . / APPELLANT V/S THE INCOME TAX OFFICER, WARD 7(3), PUNE. . / RESPONDENT ASSESSEE BY : SHRI BHARAT SHAH. REVENUE BY : SHRI RAJESH GAWALI. / ORDER PER ANIL CHATURVEDI, AM : 1. THIS APPEAL FILED BY THE ASSESSEE IS EMANATING OUT OF THE O RDER OF THE COMMISSIONER OF INCOME TAX (APPEALS) PUNE - 5, PU NE DATED 20.04.2018 FOR THE ASSESSMENT YEAR 2013-14. 2. THE RELEVANT FACTS AS CULLED OUT FROM THE MATERIAL ON R ECORD ARE AS UNDER :- ASSESSEE IS AN INDIVIDUAL AND IS HAVING INCOME FROM BUSINESS ACTIVITIES OF TOLL TAX COMMISSION FROM CANTONMENT BOARD. ASS ESSEE FILED HIS RETURN OF INCOME FOR A.Y. 2013-14 ON 25.09.2013 DEC LARING / DATE OF HEARING : 21.01.2019 / DATE OF PRONOUNCEMENT: 21.01.2019 2 TOTAL INCOME OF RS.14,76,030/-. THEREAFTER, THE CASE WAS SELECTED FOR SCRUTINY UNDER CASS AND NOTICE U/S 143(2) OF THE ACT WAS ISSUED AND ON 02.09.2014 AND SERVED UPON THE ASSESSEE. THEREAFTER , ASSESSMENT WAS FRAMED U/S 143(3) OF THE ACT VIDE ORDER DT.25.02.2016 A ND THE TOTAL INCOME WAS DETERMINED AT RS.18,03,730/-. AGGRIEVE D BY THE ORDER OF AO, ASSESSEE CARRIED THE MATTER BEFORE LD.CIT(A), WHO VIDE ORDER DT.20.04.2018 (IN APPEAL NO.PN/CIT(A)-5/ITO WARD 7(3), PUNE/10544/2016-17) DISMISSED THE APPEAL OF ASSESSEE. A GGRIEVED BY THE ORDER OF LD.CIT(A), ASSESSEE IS NOW IN APPEAL AND HAS R AISED THE FOLLOWING GROUNDS : 1. THE ORDER PASSED BY THE HON. COMMISSIONER OF IN COME TAX (APPEALS) IS PASSED WITHOUT GIVING AN OPPORTUNITY OF BEING HE ARD AS THE NOTICE FOR HEARING WAS NEITHER RECEIVED OR ACCEPTED BY THE ASS ESSEE. JUST AND PROPER RELIEF BE GRANTED TO THE ASSESSEE IN THIS RE SPECT. 2. THE LEARNED ASSESSING OFFICER ERRED IN FACTS AND CIRCUMSTANCES OF THE CASE BY TREATING RS.327700/- AS UNEXPLAINED CREDIT U/S 68 OF THE INCOME TAX ACT AND MAKING ADDITION THEREOF WHILE CO NCLUDING THE ASSESSMENT. JUST AND PROPER RELIEF BE GRANTED TO T HE ASSESSEE IN THIS RESPECT. 3. BOTH THE GROUNDS BEING INTER-CONNECTED ARE CONSIDERED TOGE THER. 4. BEFORE US, AT THE OUTSET, LD.A.R. SUBMITTED THAT THE LD.C IT(A) HAS DISMISSED THE APPEAL OF ASSESSEE HOLDING THAT THE APP EAL IS DEFECTIVE AND INFRUCTUOUS ON THE REASON OF NON-FILING OF GROU NDS. HE SUBMITTED THAT ASSESSEE COULD NOT APPEAR BEFORE LD.CIT( A) AS HE DID NOT RECEIVE NOTICE. HE THEREFORE SUBMITTED THAT THE MAT TER MAY BE REMITTED BACK TO THE FILE OF LD.CIT(A). HE FURTHER UNDERTOO K THAT ASSESSEE WILL COOPERATE AND SHALL FURNISH THE REQUIRED DETA ILS AS CALLED FOR BY THE AUTHORITIES. LD.D.R. ON THE OTHER HAND, SUBMITTE D THAT NOTICE OF HEARING WAS SENT TO THE ASSESSEE BUT IT WAS R ETURNED UN- 3 SERVED BY THE POSTAL AUTHORITIES. HE THEREFORE SUBMITTE D THAT IN SUCH A SITUATION, LD.CIT(A) HAD NO OTHER OPTION BUT TO PASS DISMISSAL ORDER. 5. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE M ATERIAL ON RECORD. IN THE PRESENT CASE, THE ADDITION OF RS.3,27,70 0/- MADE BY AO IS ON ACCOUNT OF UNEXPLAINED CREDIT U/S 68 OF THE ACT . AGGRIEVED BY THE ORDER OF AO, ASSESSEE CARRIED THE MATTER BEFORE LD.CIT(A). WE FIND THAT LD.CIT(A) HAS DISMISSED THE APPEAL OF ASSESSEE HOLD ING THAT THE APPEAL IS DEFECTIVE AND INFRUCTUOUS ON THE REASON OF N ON-FILING OF GROUNDS. IT IS ASSESSEES SUBMISSION THAT NOTICE WAS N OT RECEIVED BY ASSESSEE FROM THE OFFICE OF LD.CIT(A) AND HAD AN OPPORTUNITY BEEN GIVEN, THE ASSESSEE WOULD HAVE REMOVED THE DEFECTS IN TH E APPEAL. BEFORE US, IT IS LD.A.R.S PRAYER THAT IN THE INTEREST OF JU STICE, ASSESSEE BE GRANTED ONE MORE OPPORTUNITY AND ASSESSEE WILL CO-OP ERATE AND FILE THE NECESSARY DETAILS. CONSIDERING THE AFORESAID FACTS, W E ARE OF THE VIEW THAT IN THE INTERESTS OF JUSTICE AND FAIR PLAY, THE AS SESSEE BE GIVEN ONE MORE OPPORTUNITY TO PRESENT HIS CASE BEFORE LD.CIT(A ). WE THEREFORE REMIT THE ISSUE BACK TO LD.CIT(A) TO DECIDE THE ISSUE ON MERITS IN ACCORDANCE WITH LAW. NEEDLESS TO STATE THAT LD .CIT(A) SHALL GRANT ADEQUATE OPPORTUNITY OF HEARING TO BOTH THE PART IES. ASSESSEE IS ALSO DIRECTED TO PROMPTLY FURNISH ALL THE DETAILS CALLED FOR BY THE AUTHORITIES. IN VIEW OF OUR DECISION TO RESTORE THE ISSUE TO LD.CIT(A), WE ARE NOT ADJUDICATING ON MERITS THE GROUNDS OF THE A PPEAL RAISED BY THE ASSESSEE. THUS, THE GROUNDS OF ASSESSEE ARE ALLOWED FOR STATISTICAL PURPOSES. 4 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOW ED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN OPEN COURT ON 21 ST DAY OF JANUARY, 2019. SD/- SD/- ( VIKAS AWASTHY ) ( ANIL CHATURVEDI ) / JUDICIAL MEMBER ' / ACCOUNTANT MEMBER PUNE; DATED : 21 ST JANUARY, 2019. YAMINI #$%&'(' % / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT 3. 4 5. THE PCIT-1, NASHIK. '#$ %%&',) &', *+ / DR, ITAT, SMC PUNE; $-.// GUARD FILE. / BY ORDER // TRUE COPY // 012%3&4 / SR. PRIVATE SECRETARY ) &', / ITAT, PUNE.