Mrs. Hardeep Kaur, Mohali V. ITO, W-6(2), Mohali

ITA 1283/CHANDI/2018

• Counselvise Citation: [2019] 115 COUNSELVISE.COM (IT) 5600 (ITAT-CHANDIGARH)
• Duration Of Justice: 11 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-09-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2010-2011
• Appeal Filed On: 09-10-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MANJIT SINGH
• Keywords: Opportunity of being heard; Additional evidence
• Section: 143(3)

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL, CHANDIGARH BENCH SMC CHANDIGARH !', # BEFORE: SMT. DIVA SINGH, JM ./ ITA NO. 1283/CHD/2018 / ASSESSMENT YEAR : 2010-11 MRS. HARDEEP KAUR, HOUSE NO. 688, FF, PHASE-6, MOHALI. VS THE ITO, WARD 6(2), MOHALI. ./ PAN NO: AXSPK4596N / APPELLANT / RESPONDENT ! ' / ASSESSEE BY : NONE # ! ' / REVENUE BY : SHRI MANJIT SINGH, CIT-DR $ % ! &/ DATE OF HEARING : 02.09.2019 '()* ! &/ D ATE OF PRONOUNCEMENT : 13.09.2019 $%/ ORDER THE PRESENT APPEAL HAS BEEN FILED BY THE ASSESSEE WHEREIN THE CORRECTNESS OF THE ORDER DATED 27.07.20 18 OF CIT(A)-4, LUDHIANA PERTAINING TO 2010-11 ASSESSMENT YEAR IS ASSAILED ON THE FOLLOWING GROUNDS : 1. THE IMPUGNED ORDER IS BOTH AGAINST FACTS AND ERR ONEOUS IN LAW. 2. ON THE FACTS AND CIRCUMSTANCES OF THE CASE THE L D. CIT(APPEALS) HAS ERRED IN HAVING SUSTAINED AN ADDITION OF RS.2,70,285/- OU T OF THE TOTAL ADDITION MADE BY THE LD.AO AT RS.5,20,285/- U/S 69 OF THE INCOME TAX ACT. 3. ON THE FACTS AND CIRCUMSTANCES OF THE CASE THE LD . CIT(APPEALS) HAS ERRED IN HAVING NOT DELETED THE ADDITION OF RS.5,20,285/- WHOLLY, IGNORING THE EVIDENCE PLACED ON RECORD. THE ASSESSEE CRAVES LEAVE TO ADD TO ALTER OR AMEND THE ABOVE GROUNDS OF APPEAL BEFORE THE SAME IS HEARD OR DISPOSED OF. ITA 1283/CHD/2018 A.Y. 2010-11 PAGE 2 OF 5 2. AT THE TIME OF HEARING, NO ONE WAS PRESENT ON BE HALF OF THE ASSESSEE. HOWEVER, ON A PERUSAL OF THE RECORD I T WAS SEEN THAT THE APPEAL COULD BE DECIDED ON THE BASIS OF TH E SUBMISSIONS AVAILABLE ON RECORD AFTER HEARING THE L D. CIT-DR. 3. THE LD. CIT-DR MR. MANJIT SINGH WAS HEARD. 4. ON A PERUSAL OF THE IMPUGNED ORDER IT IS SEEN TH AT THE ASSESSEE FILED FRESH EVIDENCES BEFORE CIT(A) ASSAIL ING THE ADDITION OF RS. 5,20,285/- MADE BY THE AO. THESE E VIDENCES HAVE BEEN TABULATED AT PAGE 3-4 OF THE IMPUGNED ORD ER. FOR THE SAKE OF COMPLETENESS, IT IS REPRODUCED HEREUNDE R : 4.1 DURING THE APPEAL PROCEEDINGS, THE REPORT OF A SSESSING OFFICER VIDE DATED 05.07.2018 WAS RECEIVED AS UNDER, KINDLY REFER TO YOUR OFFICE LETTER NO. CLT(A)-4/LDH /2018-19/484 DATED 07.06.2018 SEEKING REPORT UNDER RULE-46A(3) OR THE INCOME TAX RULES, 1962 FROM THIS OFFICE ON THE ADMISSIBILITY OF ADDITIONAL EVIDENCE I.E. LOAN STATEMENT, PURCHASE BILL AND INCOME TAX RETURN. 2. THE ASSESSEE VIDE THIS APPLICATION 07.06.2018 TO THE LD. CLT(A)-4, LUDHIANA HAS MADE SUBMISSION AS UNDER AND SUBMITTED ADDITIONAL EVIDEN CE ON THE FOLLOWING ISSUES:- ADDITIONAL EVIDENCE SUBMITTED IN THE O/O LD. CIT(A)-4, LDH. OF ACTION OF THE AO DURING THE ASSESSMENT PROCEEDING. RE REPORT OF THE AO REGARDING ADDITIONAL EVIDENCE LOAN STATEMENT FOR THE PERIOD 09.03.2010 TO 03.01.2018 ISSUED BY SUNDARAM FINACE COMPANY WHICH SHOWS MS HARDEEP KAUR FINANCE HER MARUTI CAR SWIFT - 2010 FOR LOAN AMOUNTING TO RS. 2.5 LAC DURING THE ASSESSMENT PROCEEDING THE COUNSEL OF THE ASSESSEE ATTENDING THE PROCEEDINGS AND STATED THAT THE A SSESSEE HAD PURCHASED A CAR FOR RS. 6,75,700/- IN THE MONTH OF MARCH 2010 AND A LOAN RAISED FOR RS 5,80,000- . BUT THE LOAN STATEMENT SUBMITTED FOR THE PERIOD 07.01.2011 TO 31.08.2017 WHICH IS NOT RELATE THE ASSESSMENT PERIOD UNDER CONSIDERATION. THE ASSESSEE HAS TAKEN LOAN FROM SUNDARAM FINANCE CO. TWICE ONCE DURING THE FINANCIAL PERIOD 2009- 10 AND OTHER ONE DURING THE FINANCIAL PERIOD 2010- 11. THE ASSESSEE HAS SUBMITTED THE STATEMENT FOR THE FINANCIAL PERIOD 2100- 11 INSTEAD OF 2009-10. NOW THE ASSESSEE HAS SUBMITTED THE STATEMENT FOR THE F.Y. 2009- 10 BEFORE THE LD.CIT/A).THE CIRCUMSTANCES EXPLAINED BY THE ASSESSEE VIDE ITS LETTER DATED 7.6.2018 THAT DUE TO DEATH IN THE FAMILY COULD NOT AVAILED TO SUBMIT THE DESIRED INFOR MATION. THE INTENTION OF THE ASSESSEE APPEARS TO BE GENUINE, THEREFORE THE ISSUE MAY BE DECIDED ON MERIT. PUPUR CHASE BILL ISSUED BY THE MODERN AUTOMOBILES, THE DOCUMENTARY EVIDENCE SUBMITT ED BY THE COUNSEL OF THE THERE IS NO DOUBT THAT THE ASSESSEE COULD NOT SUBMIT THE DESIRED EVIDENCE DURING ITA 1283/CHD/2018 A.Y. 2010-11 PAGE 3 OF 5 INDUSTRIALAREA, CHANDIGARH OF RS 5,20,285/- DATED 08/02/2010. ASSESSEE COULD NOT BE EXPLAINED, THUS THE INVESTMENT MADE BY THE ASSESSEE FOR RS 5,20,285/-, WAS REMAINED UNEXPLAINED AND THE SAME ADDED TO THE INCOME OF THE ASSESSEE. THE COURSE OF ASSESSMENT PROCEEDINGS, AS THE A.O. VIDE ORDER SHEET ENTRY DATED 5.12.2017 REQUISITIONED THE PURCHASE BILL OF VEHICLE. THE A.O. BEFORE PASSING THE ORDER U/S 143(3) DATED 18.11 .2011,ADDED BACK THE INVESTMENT MADE IN THE PURCHASE OF VEHICLE. NOW THE ASSESSEE HAS SUBMITTED A COPY OF SALE CERTIFICATE ISSUED BY MODERN AUTOMOBILES DATED 15.3.2019 ALONGWITH A COPY OF ACCOUNT FROM WHERE THE AMOUNT OF RS.2,00,000/- HAVE BEEN WITHDRAWN T HE CIRCUMSTANCES EXPLAINED BY THE ASSESSEE VIDE ITS LETTER DATED 7.6.2018 THAT DUE TO DEATH IN THE FAMILY COULD NOT AVAILED TO SUBMIT THE DESIRED INFORMATION. THE INTENTION OF THE ASSESSEE APPEARS TO BE GENUINE, THEREFORE THE ISSUE MAY BE DECIDED ON MERIT. ITR ITR FOR THE ASSESSMENT YEAR 2010-11. THE COUNSEL OF THE ASSESSEE HAD ALREADY BEEN SUBMITTED THE ITR FOR THE A.Y. 2010- 11 DURING THE ASSESSMENT PROCEEDINGS. THE CASE MAY BE DECIDED ON MERIT. 5. ON PERUSAL OF THE RECORD, IT IS SEEN THAT THE A SSESSING OFFICER REQUIRED THE ASSESSEE TO EXPLAIN THE AVAILA BILITY OF RS. 5,20,285/- USED FOR PURCHASING A VEHICLE. FRESH EV IDENCES AS NOTED WERE FILED ON BEHALF OF THE ASSESSEE. IT IS S EEN THAT THE CIT(A) HAS GRANTED RELIEF TO THE EXTENT OF RS. 2,50 ,000/- IN PARA 4.2 OF HIS ORDER NOTING THAT THE PURCHASE OF T HE VEHICLE WAS FINANCED BY SUNDARAM FINANCE COMPANY BY ADVANCI NG LOAN OF RS. 2.50 LACS. 5.1 HOWEVER, ON THE CLAIM OF AVAILABILITY OF RS. 2 LACS THE CIT(A) HAS FAILED TO GIVE A FINDING. THE SAID CLAI M, IT IS SEEN AS PER THE TABLE EXTRACTED, WAS SUPPORTED BY SALES CERTIFICATE ISSUED BY MODERN AUTOMOBILES. IT IS EVIDENT THAT T HE AO HAS GIVEN POSITIVE COMMENT NAMELY THAT A COPY OF SALE C ERTIFICATE ISSUED BY MODERN AUTOMOBILES DATED 15.3.2019 ALONGW ITH A ITA 1283/CHD/2018 A.Y. 2010-11 PAGE 4 OF 5 COPY OF ACCOUNT FROM WHERE THE AMOUNT OF RS.2,00,00 0/- HAVE BEEN WITHDRAWN AND THAT THE CIRCUMSTANCES EXPLAINED BY THE ASSESSEE VIDE ITS LETTER DATED 7.6.2018 THAT DUE TO DEATH IN THE FAMILY COULD NOT AVAILED TO SUBMIT THE DESIRED INFORMATION. CONSEQUENTLY, IT IS NOTED THAT AS PER THE REPORT AV AILABLE, THE AO STATES THAT THE INTENTION OF THE ASSESSEE APPEARS TO BE GENUINE. IT IS SEEN FROM THE ORDER PASSED THAT WHILE ARRIV ING AT A CONCLUSION, THE CIT(A) HAS FAILED TO ADDRESS T HESE SUBMISSIONS. 5.2 THE LD. CIT-DR IN THE CIRCUMSTANCES SUBMITTED T HAT THE MATTER MAY BE REMANDED BACK INSTEAD OF GRANTING REL IEF AT THIS STAGE AS THESE EVIDENCES ARE NOT AVAILABLE BEFORE U S. 6. I HAVE SEEN THE FACTS AS AVAILABLE ON RECORD AND CONSIDERED THE SUBMISSIONS. I FIND THAT IN THE PEC ULIAR FACTS AND CIRCUMSTANCES OF THE PRESENT CASE THE ADDITION SUSTAINED INADVERTENTLY CANNOT BE UPHELD. IN VIEW THEREOF TH E ISSUE IS REMANDED BACK TO THE FILE OF THE LD. CIT(A) WITH TH E DIRECTION TO PASS A SPEAKING ORDER IN ACCORDANCE WITH LAW. I N CASE, ON THE BASIS OF THE REMAND REPORT AVAILABLE, THE RELIE F AS PRAYED FOR IS CONSIDERED TO BE NOT MAINTAINABLE, THE CIT(A ) SHALL THEN BEFORE PASSING AN ADVERSE ORDER NECESSARILY GR ANT THE ASSESSEE A REASONABLE OPPORTUNITY OF BEING HEARD. SAID ORDER ITA 1283/CHD/2018 A.Y. 2010-11 PAGE 5 OF 5 WAS PRONOUNCED IN THE OPEN COURT AT THE TIME OF HEA RING ITSELF. 7. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWE D FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 13 TH SEPT.,2019. SD/- ( !' ) (DIVA SINGH) # / JUDICIAL MEMBER POONAM (+ ! ,- .- / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT 3. $ / / CIT 4. $ / ( )/ THE CIT(A) 5. -01 2 , & 2 , 34516 / DR, ITAT, CHANDIGARH 6. 15 7% / GUARD FILE (+ $ / BY ORDER, 8 # / ASSISTANT REGISTRAR