Shri Shrikant Anjane, Harda V. THE ITO -1, Itarsi

ITA 1319/IND/2016

• Counselvise Citation: [2017] 130 COUNSELVISE.COM (IT) 5756 (ITAT-INDORE)
• Duration Of Justice: 4 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-03-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 30-03-2017
• Assessment Year: 2006-2007
• Appeal Filed On: 25-11-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MOHD JAVED
• Assessee Lawyers: YASHWANT SHARMA
• Section: 69; 148

Judgement Text

SHRIKANT ANJANE - ITA NO.1319/IND/2016 A.Y. 2006-07 PAGE 1 OF 5 , , IN THE INCOME TAX APPELLATE TRIBUNAL, INDORE BENCH, INDORE .. , . . , # BEFORE SHRI C. M. GARG, JUDICIAL MEMBER AND SHRI O.P. MEENA, ACCOUNTANT MEMBER . . /. I.T.A. NO. 1319/IND/2016 / ASSESSMENT YEAR: 2006-07 SHRIKANT ANJANE VILLAGE GONDAGAON TEH. TIMARNI DISTT. HARDA VS. INCOME TAX OFFICER 1 ITARSI / / / / APPELLANT / / / / RESPONDENT .../ PAN: AIYPA 2432N / / / / APPELLANT BY SHRI YASHWANT SHARMA / / / / RESPONDENT BY SHRI MOHD. JAVED SR. DR / / / / DATE OF HEARING 30.03.2017 / / / / DATE OF PRONOUNCEMENT 30.03.2017 / / / / O R D E R PER O.P. MEENA, ACCOUTANT MEMEBR. THIS APPEAL IS FILED BY THE ASSESSEE AGAINST THE OR DER OF LD. COMMISSIONER OF INCOME TAX (APPEALS)-2, BHOPAL [HER EINAFTER REFERRED TO AS THE CIT (A)] DATED 22.6.2016. THIS A PPEAL PERTAINS TO ASSESSMENT YEAR 2006-07 AS AGAINST APPEAL DECIDED I N RESPECT OF ASSESSMENT ORDER DATED 30.8.2011 PASSED U/S. 144/14 7 OF THE SHRIKANT ANJANE - ITA NO.1319/IND/2016 A.Y. 2006-07 PAGE 2 OF 5 INCOME TAX ACT, 1961 (HEREIN AFTER REFERRED TO AS ' THE ACT) BY THE ITO WARD 3(1) INDORE [HEREINAFTER REFERRED TO AS TH E AO']. 1. THE ONLY GROUND TAKEN BY THE ASSESSEE IS THAT THE L EARNED CIT(A) WAS NOT JUSTIFIED IN CONFIRMING THE ADDITION OF RS. 4,40,000/- MADE BY THE ASSESSING OFFICER BY TREATING THE SAME AS UNDISCLOSED INCOME OF THE ASSESSEE U/S 69 OF THE ACT. 1.1 SUCCINCTLY, FACTS AS CULLED OUT FROM THE ORDER S OF LOWER AUTHORITIES ARE THAT ON THE BASIS OF AIR INFORMATIO N THE ASSESSING OFFICER FOUND THAT THE ASSESSEE HAD MADE INVESTMENT OF RS. 7,30,000/- IN STANDARD CHARTERED/HDFC MUTUAL FUND. AS THE ASSESSEE DID NOT FILE ANY RETURN OF INCOME, THE ASS ESSING OFFICER ISSUED NOTICE U/S 148 OF THE ACT TO FILE THE SAME. HOWEVER, THE ASSESSEE DID NOT FILE ANY RETURN OF INCOME TILL THE COMPLETION OF ASSESSMENT. DURING THE COURSE OF ASSESSMENT PROCEE DINGS IT WAS PLEADED BY THE ASSESSEE THAT THE ASSESSEE IS AN AGR ICULTURIST AND OWNER OF 18 ACRES OF LAND. HE ALSO SUBMITTED THAT HE HAS NO OTHER SOURCE OF INCOME. IT WAS ALSO SUBMITTED THAT THE INV ESTMENT OF RS.2,90,000/- WAS MADE BY HIM OUT OF HIS OWN AGRICULT URAL INCOME AND FURTHER INVESTMENT OF RS.4,40,000/- WAS MADE FRO M THE SUMS SHRIKANT ANJANE - ITA NO.1319/IND/2016 A.Y. 2006-07 PAGE 3 OF 5 RECEIVED FROM HIS NEPHEW, SHRI ARUN ANJANE. THE ASS ESSEE ALSO PRODUCED BEFORE THE ASSESSING OFFICER RECEIPTS FROM KRISHI UPAJ MANDI SAMITI IN SUPPORT OF THE AGRICULTURAL INCOME. IN VIEW OF THIS, THE ASSESSING OFFICER TREATED THE INVESTMENT OF RS. 2,90,000/- AS EXPLAINED. SINCE THE ASSESSEE FAILED TO GIVE ANY SA TISFACTORY EXPLANATION REGARDING THE SUM OF RS. 4,40,000/- AS ALSO FAILED TO PRODUCE SHRI ARUN ANJANE, THE ASSESSING OFFICER REJ ECTED THE EXPLANATION OF THE ASSESSEE. ACCORDINGLY, THE INVE STMENT IN MUTUAL FUND TO THE TUNE OF RS.4,40,000/- WAS HELD TO BE UNE XPLAINED INVESTMENT U/S 69 OF THE ACT. 1.2 HAVING FELT WITH THE ABOVE ADDITION MADE BY THE ASSESSING OFFICER, THE ASSESSEE WENT IN APPEAL BEFORE THE LEA RNED CIT(A). ON CONSIDERATION OF THE FACTS OF THE CASE AND THE SUBM ISSIONS OF THE ASSESSEE, THE LEARNED CIT(A) DID NOT FIND ANY FORCE IN THE APPEAL AND DISMISSED THE SAME. 1.3 AGAINST DISMISSAL OF APPEAL BY THE LEARNED C IT(A), THE ASSESSEE HAS APPROACHED THE TRIBUNAL BY FILING THE PRESENT A PPEAL. 1.4 BEFORE US, THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE ASSESSEE RECEIVED THE AMOUNT OF RS.4,40,000/- B Y ACCOUNT PAYEE CHEQUES FROM HIS NEPHEW, SHRI ARUN ANJANE. IN SUPPORT OF SHRIKANT ANJANE - ITA NO.1319/IND/2016 A.Y. 2006-07 PAGE 4 OF 5 THIS, THE ASSESSEE HAS FILED A COPY OF CERTIFICATE FROM SHRI ARUN ANJANE (PAPER BOOK PAGE 10) STATING THAT HE GAVE AN AMOUNT OF RS.2,50,000/- AND RS.1,90,418/- BY CHEQUE NO. 00143 96 AND 0014397 DATED 19.7.2005 AND 3.11.2005 TO THE ASSESS EE. THEREFORE, THE AUTHORITIES BELOW WERE NOT JUSTIFIED IN MAKING T HE CONFIRMING THE ADDITION IN QUESTION. ON THE OTHER HAND, THE LE ARNED DR SUPPORTED THE ORDERS OF THE AUTHORITIES BELOW. 1.5 AFTER HEARING BOTH THE SIDES, WE FIND THAT THE O NLY GRIEVANCE OF THE ASSESSING OFFICER IS THAT THE ASSESSEE HAS FAIL ED TO PROVE AS TO IN WHICH FORM THE ASSESSEE HAS RECEIVED THE SUM, IN QUE STION, FROM SHRI ARUN ANJANE. THE ASSESSING OFFICER HAS ALSO O BSERVED THAT THE ASSESSEE DID NOT PRODUCE SHRI ARUN ANJANE BEFORE TH E ASSESSING OFFICER TO PROVE HIS CREDITWORTHINESS. FURTHER, THE COPY OF CERTIFICATE AS FILED BEFORE US WAS NOT FILED BEFORE THE ASSESSIN G OFFICER. FURTHER THE CASH FLOW STATEMENT WAS ALSO NOT FILED BEFORE THE ASSESSING OFFICER. WE ARE, THEREFORE, OF THE VIEW THAT IT WOULD BE JUST AND PROPER TO SET ASIDE THE ORDERS OF THE AUTHORITIES B ELOW AND RESTORE THE ISSUE TO THE FILE OF THE ASSESSING OFFICER. WE, THEREFORE, REMAND THE MATTER BACK TO THE FILE OF THE ASSESSING OFFICE R WITH THE DIRECTION TO FRAME THE ASSESSMENT DE NOVO AFTER PROVIDING DUE OPPORTUNITY OF SHRIKANT ANJANE - ITA NO.1319/IND/2016 A.Y. 2006-07 PAGE 5 OF 5 HEARING TO THE ASSESSEE. AT THE SAME TIME, WE ALSO DIRECT THE ASSESSEE TO PRODUCE SHRI ARUN ANJANE BEFORE THE ASS ESSING OFFICER AS AND WHEN REQUIRED TO PROVE HIS CASE AND ALSO NECE SSARY EVIDENCE IN SUPPORT OF HIS CLAIM. 2. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOW ED FOR STATISTICAL PURPOSES. 3. ORDER PRONOUNCED IN THE OPEN COURT ON 30 TH MARCH, 2017. SD/- SD/- (..) (C.M.GARG) JUDICIAL MEMBER (..) (O.P.MEENA) ACCOUNTANT MEMBER MARCH 30, 2017 DN/-