M.V.Vasantharaju, CHENNAI V. DCIT, Coimbatore

ITA 1337/CHNY/2017

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 5946 (ITAT-CHENNAI)
• Duration Of Justice: 4 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-10-2017
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: A
• Assessment Year: 2012-2013
• Appeal Filed On: 25-05-2017
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: MRS RU GEORGE
• Assessee Lawyers: S SRIDHAR
• Keywords: Unexplained investment; Principle of natural justice
• Section: 2

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH: CHENNAI . , ! , $ % BEFORE SHRI ABRAHAM P.GEORGE, ACCOUNTANT MEMBER AND SHRI GEORGE MATHAN, JUDICIAL MEMBER ./ ITA NOS.1335 & 1336/MDS/2017 $! ! /ASSESSMENT YEARS: 2012-13 & 2013-14 SHRI N.MUTHUSAMY, NO.75, SYRIAN CHURCH ROAD NO.1, COIMBATORE-641 001. VS. THE DY. COMMISSIONER OF- INCOME TAX, CENTRAL CIRCLE-1, COIMBATORE. [PAN: AHHPM 7025 M ] ( ' /APPELLANT) ( ()' /RESPONDENT) ./ ITA NOS.1337/MDS/2017 $! ! /ASSESSMENT YEAR: 2012-13 SHRI M.VASANTHARAJU, NO.75, SYRIAN CHURCH ROAD NO.1, COIMBATORE-641 001. VS. THE DY. COMMISSIONER OF- INCOME TAX, CENTRAL CIRCLE-1, COIMBATORE. [PAN: ADGPV 6450 L ] ( ' /APPELLANT) ( ()' /RESPONDENT) ' * / APPELLANT BY : MR.S.SRIDHAR, ADV. ()' * /RESPONDENT BY : MRS.RUBY GEORGE, JCIT * /DATE OF HEARING : 19.10.2017 * /DATE OF PRONOUNCEMENT : 19.10.2017 / O R D E R PER BENCH : ITA NO.1335/MDS/2017 IS AN APPEAL FILED BY THE ASS ESSEE AGAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX, CENTRA L-2, CHENNAI, PASSED ITA NOS.1335 & 1336/MDS/2017 ITA NO.1337/MDS/2017 :- 2 -: U/S.263 IN C.NO.2744/C-2/2015-16/5 DATED 29.03.2017 FOR THE AY 2012- 13. ITA NO.1336/MDS/2017 IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX, CENTRAL-2, CHENNAI, PASSED U/S.263 IN C.NO.2744/C-2/2015-16/4 DATED 29.03.2017 FOR THE AY 2013- 14. ITA NO.1337/MDS/2017 IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX, CENTRAL-2, CHENNAI, PASSED U/S.263 IN C.NO.2744/C-2/2015-16/3 DATED 29.03.2017 FOR THE AY 2012- 13. 2. MRS.RUBY GEORGE, CIT REPRESENTED ON BEHALF OF TH E REVENUE AND MR.S.SRIDHAR, ADV., REPRESENTED ON BEHALF OF THE AS SESSEE. 3. AS THE THREE APPEALS ARE INTER-CONNECTED, COMMON AND THE SAME ARE DISPOSED OF BY THIS COMMON ORDER. ITA NOS.1335 & 1337/MDS/2017 FOR THE AY 2012-13: 4. IT WAS SUBMITTED BY THE LD.AR THAT THERE WAS A S EARCH CONDUCTED ON THE PREMISES OF ASSESSEE ON 19.03.2013. AS A CONSE QUENCE OF SEARCH, THE AO HAS COMPLETED THE ASSESSMENT U/S.153A R.W.S.143( 3). IT WAS A SUBMISSION THAT IN THE COURSE OF THE SEARCH, STATEM ENTS HAD BEEN RECORDED U/S.132(4) WHEREIN THE ASSESSEE HAD ADMITT ED ON-MONEY PAYMENT TO AN EXTENT OF RS.4.70 CRS. IN RESPECT OF THE PURCHASE OF TWO ITA NOS.1335 & 1336/MDS/2017 ITA NO.1337/MDS/2017 :- 3 -: PROPERTIES ONE MEASURING 9 CENTS OF LAND AT 100 FEE T ROAD BELONGING TO CSI CHURCH, COIMBATORE AND THE SECOND ONE MEASURING 6 CENTS OF LAND PURCHASED FROM SHRI ALBERT DSILVA AT 100 FEET ROAD , COIMBATORE. IT WAS A SUBMISSION THAT THE ON-MONEY TRANSACTION REPRESENTE D RS.4.10 CRS. PAID IN RESPECT OF 9 CENTS OF LAND AND RS.60.00 LAKHS PA ID IN RESPECT OF 6 CENTS OF LAND. IT WAS A SUBMISSION THAT ON-MONEY PAYMENT S WERE RELATING TO TWO ASSESSMENT YEARS BEING 2012-13 & 2013-14. HOWE VER, IN THE COURSE OF STATEMENT RECORDED, THE ASSESSEE HAD AGREED TO O FFER THE ON-MONEY PAYMENT AS HIS INCOME AND PAID TAXES FOR THE AY 201 3-14. IT WAS A SUBMISSION THAT THE ASSESSEES HAD CONSEQUENTLY FILE D THEIR RETURN OF INCOME FOR THE AY 2013-14 DISCLOSING THE SAID ON-MO NEY PAYMENTS SHOWING RS.2.60 CRS. EACH UNDER THE HEAD INCOME FRO M OTHER SOURCES WHEN FILING THEIR RETURN FOR THE AY 2013-14. THE L D.AR DREW OUR ATTENTION TO THE STATEMENT OF TOTAL INCOME FILED FOR THE AY 2 013-14 ALONG WITH THE SCHEDULE-7 THERE UNDER WHEREIN RS.2.05 LAKHS HAS BE EN SHOWN IN RESPECT OF THE PROPERTY AT 10 TH STREET, COIMBATORE AND RS.30.00 LAKHS EACH IN RESPECT OF THE PROPERTY AT 100 FEET ROAD, COIMBATOR E AND AN ADDITIONAL RS.25.00 LAKHS. IT WAS A SUBMISSION THAT THOUGH TH IS WAS BROUGHT TO THE ATTENTION OF THE LD.CIT IN RESPONSE TO THE SHOW CAU SE NOTICE U/S.263, THE LD.CIT DID NOT CONSIDER THE SAME AND DIRECTED THE A O TO RE-DO THE ASSESSMENT FOR THE AY 2012-13 IN RESPECT OF THE TWO INVESTMENTS IN THE SAID TWO PROPERTIES. IT WAS A SUBMISSION THAT THE ASSESSEE HAD NO OBJECTION IF THE ISSUE IS RESTORED TO THE FILE OF T HE CIT FOR RE-VERIFICATION. ITA NOS.1335 & 1336/MDS/2017 ITA NO.1337/MDS/2017 :- 4 -: 4.1 IN REPLY, THE LD.DR VEHEMENTLY SUPPORTED THE OR DER OF THE LD.CIT PASSED U/S.263. 4.2 WE HAVE CONSIDERED THE RIVAL SUBMISSIONS. A PE RUSAL OF THE RETURN OF INCOME FOR THE AY 2013-14 CLEARLY SHOWS THAT BOT H THE ASSESSEES HAVE DISCLOSED RS.2.60 CRS. UNDER THE HEAD INCOME FROM O THER SOURCES AND THE SAME HAS ALSO BEEN TALLIED WITH SCHEDULE-7 IDENTIFY ING THE UNEXPLAINED INVESTMENT IN RESPECT OF THE TWO SPECIFIC PROPERTIE S. HOWEVER, A PERUSAL OF THE ORDER OF THE LD.CIT PASSED U/S.263 SHOWS THA T THE LD.CIT HAS STATED THAT THERE IS AN ABSENCE OF SATISFACTORY EXP LANATION FROM THE ASSESSEE REGARDING THE SOURCE OF INVESTMENT OF SUCH AMOUNT. THIS BEING SO, IN THE INTEREST OF NATURAL JUSTICE, THE ISSUES IN THESE APPEALS ARE RESTORED TO THE FILE OF THE LD.CIT FOR RE-ADJUDICAT ION AFTER GRANTING THE ASSESSEE ADEQUATE OPPORTUNITY TO SUBSTANTIATE THEIR CASE. THE ASSESSEE SHALL PRODUCE ALL SUCH EVIDENCES TO SHOW THAT THE I NVESTMENTS IN THE SAID TWO PROPERTIES REPRESENT THE ON-MONEY TRANSACTIONS HAVE BEEN OFFERED TO TAX AS ADMITTED IN THE STATEMENT RECORDED U/S.132(4 ). IN THE RESULT, THE APPEALS FILED BY THE ASSESSEES ARE PARTLY ALLOWED F OR STATISTICAL PURPOSES. ITA NO.1336/MDS/2017 FOR THE AY 2013-14: 5. IT WAS SUBMITTED BY THE LD.AR THAT THE ISSUE IN THIS APPEAL RELATED TO THE ACTION OF THE LD.CIT IN RESPECT OF THE CLAIM OF EXEMPTION U/S.54 IN ITA NOS.1335 & 1336/MDS/2017 ITA NO.1337/MDS/2017 :- 5 -: RESPECT OF SALE OF PROPERTY AT MANIAM KALIAPPA STRE ET AND THE PROPERTY AT FLOWER MARKET AND THE PURCHASE OF THE PROPERTIES AT 100 FEET ROAD, COIMBATORE AND 6 CENTS OF LAND FROM SHRI ALBERT DS ILVA. IT WAS A SUBMISSION THAT THE SAME HAD ALREADY BEEN CONSIDERE D BY THE AO WHILE COMPUTING THE ASSESSMENT FOR THE AY 2013-14. IT WA S A SUBMISSION THAT HOWEVER, THE ASSESSEE HAD NO OBJECTION IF THE ISSUE S ARE RESTORED TO THE FILE OF THE LD.CIT FOR RE-ADJUDICATION. IT WAS A S UBMISSION THAT THE PURCHASED DOCUMENTS AS WELL AS THE SALE DOCUMENTS H AD ALREADY BEEN PRODUCED BEFORE THE LD.CIT. 5.1 IN REPLY, THE LD.DR VEHEMENTLY SUPPORTED THE OR DER OF THE LD.CIT. 5.2 WE HAVE CONSIDERED THE RIVAL SUBMISSIONS. THOU GH, IT HAS BEEN SUBMITTED BY THE LD.AR THAT ALL THE DETAILS IN RESP ECT OF THE PURCHASE AND THE SALE OF PROPERTIES AND ALSO THE CLAIM OF EXEMPT ION U/S.54 HAD BEEN PRODUCED BEFORE THE LD.CIT, IT IS NOTICED THAT THE LD.CIT HAS RECORDED THAT THE ASSESSEE HAS NOT BEEN ABLE TO FURNISH THE DETAI LS OF SUCH PURCHASE AND SALE OF THE SAID PROPERTIES. THIS BEING SO, IN THE INTEREST OF NATURAL JUSTICE, THE ISSUES IN THIS APPEAL ARE RESTORED TO THE FILE OF THE LD.CIT FOR RE- ADJUDICATION AFTER GRANTING THE ASSESSEE ADEQUATE O PPORTUNITY TO SUBSTANTIATE HIS CASE. ITA NOS.1335 & 1336/MDS/2017 ITA NO.1337/MDS/2017 :- 6 -: 5.3 IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS PARTLY ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON OCTOBER 19, 2017, AT CHENNAI. SD/- SD/- ( . ) ( ABRAHAM P GEORGE ) /ACCOUNTANT MEMBER ( ! ) (GEORGE MATHAN) $ /JUDICIAL MEMBER /CHENNAI, 1 /DATED: OCTOBER 19, 2017. TLN * ($23 43 /COPY TO: 1. ' /APPELLANT 4. 5 /CIT 2. ()' /RESPONDENT 5. 3 ($$ /DR 3. 5 ( ) /CIT(A) 6. ! /GF