Shri Hemantkumar V. Nagar, Ahmedabad V. The ACIT, Circle-3, Ahmedabad

ITA 1280/AHD/2014

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 8499 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 4 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-09-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2009-2010
• Appeal Filed On: 01-05-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: GRISHMA SONI
• Keywords: Unexplained investment
• Section: 143(3); 69

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD A BENCH AHMEDABAD BEFORE, SHRI N. K. BILLAIYA , ACCOUNTANT MEMBER AND SHRI S. S. GODARA, JUDICIAL MEMBER ITA NO. 1280/AHD/2014 (ASSESSMENT YEAR: 2009-10) HEMANTKUMAR V. NAGAR 1420/8, HARIBHAI MARKET, REVDI BAZAR, KALUPUR, AHMEDABAD APPELLANT VS. THE ASSISTANT COMMISSIONER OF INCOME-TAX, CIRCLE-3, AHMEDABAD RESPONDENT PAN: ADQPN0743A /BY ASSESSEE : GRISHMA SONI, A.R. /BY REVENUE : K. MADHUSUDAN, SR. D.R. /DATE OF HEARING : 18.09.2017 /DATE OF PRONOUNCEMENT : 26.09.2017 ORDER PER S. S. GODARA, JUDICIAL MEMBER THIS REVENUES APPEAL FOR ASSESSMENT YEAR 2009-10 A RISES AGAINST THE CIT(A)-6, AHMEDABADS EX PARTE ORDER DATED 04.03.20 14, IN CASE NO. CIT(A)- VI/ACIT CIR-3/215/11-12, CONFIRMING ASSESSING OFFIC ERS ACTION MAKING SECTION 69 ADDITION OF UNEXPLAINED INVESTMENT AMOUNTING TO RS.17,81,340/- IN ASSESSMENT ORDER DATED 26.11.2011, IN PROCEEDINGS U/S. 143(3) OF THE INCOME TAX ACT, 1961; IN SHORT THE ACT. HEARD BOTH SIDES. CASE FILE PERUSED. ITA NO. 1280/AHD/14 (HEMANTKUMAR V. NAGAR VS. ACIT) A.Y. 2009-10 - 2 - 2. THE ASSESSEES CHALLENGE IN THE INSTANT APPEAL I S DIRECTED TOWARDS BOTH THE LOWER AUTHORITIES ACTION ADDING HIS CASH DEPOSITS OF RS.17,81,340/- IN QUESTION BEING TREATED AS UNEXPLAINED INVESTMENTS. THERE IS NO DISPUTE THAT THE ASSESSEE HAD IN FACT DEPOSITED THE ABOVE CASH SUM IN HIS KOTAK M AHINDRA BANK ACCOUNT. THE ASSESSING OFFICER SOUGHT TO KNOW THE SOURCE THEREOF IN THE COURSE OF SCRUTINY. THE ASSESSEE ATTRIBUTED HIS CASH DEPOSITS TO CASH SALES AS WELL AS WITHDRAWALS TO HAVE BEEN RE-DEPOSITED IN THE BANK. HE FURTHER CLARIFIE D THAT THE NET DEPOSIT AMOUNT WAS MUCH LESS THAN THAT COMING TO RS.15,45,590/-. THE ASSESSING OFFICER FRAMED THE ABOVE ASSESSMENT REJECTING ASSESSEES ABOVE PLEADIN GS FOR WANT OF SUPPORTIVE EVIDENCE INCLUDING CASH TURNOVER CLAIMED OF RS.18,2 4,376/-. HE THEREFORE MADE THE IMPUGNED ADDITION OF RS.70,81,346/-. 3. THE ASSESSEE PREFERRED THE APPEAL. WE NOTICE FR OM THE LOWER APPELLATE ORDER THAT THE CIT(A) FIRST OF ALL ISSUED NOTICE DATED 31 .10.2013 FIXING DATE OF HEARING ON 25.11.2013. HE NOTED ASSESSEES NONE APPEARANCE TH EREIN. HE THEN POSTPONED ASSESSEES APPEAL HEREIN VIDE NOTICE DATED 27.11.20 13 TO 11.12.2013. THE ASSESSEE FILED ADJOURNMENT THEREIN. THE CIT(A) THEREAFTER I SSUED LAST NOTICE DATED 31.10.2014 FOR 21.02.2014. THE ASSESSEE DID NOT AP PEAR. THIS MADE THE CIT(A) TO PASS HIS EX PARTE LOWER APPELLATE ORDER UPHOLDING T HE IMPUGNED ADDITION OF RS.17,81,340/-. 4. WE HAVE HEARD RIVAL SUBMISSIONS. LEARNED COUNSEL REPRESENTING ASSESSEE SUBMITS THAT THERE IS NO INDICATION IN THE CASE FIL E SUGGESTING ACTUAL SERVICE OF NOTICE DATED 31.01.2014. SHE FURTHER STATES THAT T HE ASSESSEE IS VERY MUCH READY AND WILLING TO PURSUE HIS INSTANT LIS. THE REVENUE ON THE OTHER HAND CLAIMS THAT THE CIT(A) HAS RIGHTLY PASSED THE EX PARTE ORDER SINCE THE ASSESSEE DID NOT APPEAR DESPITE SERVICE OF NOTICE. IT IS EVIDENT FROM THE CASE FILE THAT THE CIT(A) HAS MERELY EXTRACTED ASSESSEES STATEMENT OF FACTS WITHOUT DISCUSSING AN YTHING ON MERITS AT ALL. WE OBSERVE IN THIS BACKDROP OF FACTS THAT IT IS NOT ASSESSEES NON APPEARANCE BUT THE CIT(A)S ACTION IN NOT ADJUDICATING THE ISSUE ON MERITS AS P ER CASE RECORDS WHICH FORMS A VERY STRONG REASON FOR US TO REMIT THE INSTANT APPEAL BA CK TO THE LOWER APPELLATE ITA NO. 1280/AHD/14 (HEMANTKUMAR V. NAGAR VS. ACIT) A.Y. 2009-10 - 3 - AUTHORITY/CIT(A) FOR A FRESH ADJUDICATION. WE ORDE R ACCORDINGLY. THE ASSESSEE SHALL RENDER ALL COOPERATION IN FINALIZING THE LOWE R APPEAL. THE CIT(A) SHALL ADJUDICATE THE ISSUE AFTER AFFORDING ADEQUATE OPPOR TUNITY OF HEARING TO ASSESSEE. 5. THIS ASSESSEES APPEAL IS ACCEPTED FOR STATISTIC AL PURPOSES. [PRONOUNCED IN THE OPEN COURT ON THIS THE 26 TH DAY OF SEPTEMBER, 2017.] SD/- SD/- (N. K. BILLAIYA) (S. S. GODARA) ACCOUNTANT MEMBER JUDIC IAL MEMBER AHMEDABAD: DATED 26/09/2017 TRUE COPY S.K.SINHA / COPY OF ORDER FORWARDED TO:- / REVENUE 2 / ASSESSEE ! / CONCERNED CIT 4 !- / CIT (A) ( )*+ ,--. . /0 / DR, ITAT, AHMEDABAD 1 +23 / GUARD FILE. BY ORDER / . // . /0