Sri. Noor Ahmed, Bangalore V. Income Tax Officer, Ward - 4(3)(3), Bangalore

ITA 1346/BANG/2019

• Counselvise Citation: [2021] 107 COUNSELVISE.COM (IT) 7807 (ITAT-BANGALORE)
• Duration Of Justice: 2 year(s) 3 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-09-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 30-08-2021
• Assessment Year: 2013-2014
• Appeal Filed On: 30-05-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PRIYADARSHI MISHRA
• Assessee Lawyers: N O N E
• Keywords: Principle of natural justice; Set aside

Judgement Text

ITA NO.1346/BANG/2019 SRI NOOR AHMED, BANGALORE IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH: BANGALORE BEFORE SHRI B. R. BASKARAN, ACCOUNTANT MEMBER AND SMT. BEENA PILLAI, JUDICIAL MEMBER ITA NO.1346/BANG/2019 ASSESSMENT YEAR: 2013-14 SRI NOOR AHMED NO.19, 100 FEET ROAD ILYAS NAGAR, J.P. NAGAR POST BENGALURU PAN NO : ADZPA6519Q VS. ITO WARD 4(3)(3) & CIT(A)-4 BENGALURU APPELLANT RESPONDENT APPELLANT BY : N O N E RESPONDENT BY : SHRI PRIYADARSHI MISHRA, D.R. DATE OF H EARING : 30.08.2021 DATE OF PRONOUNCEMENT : 01.09.2021 O R D E R PER B.R. BASKARAN, ACCOUNTANT MEMBER: THE ASSESSEE HAS FILED THIS APPEAL CHALLENGING THE ORDER DATED 19.3.2019 PASSED BY LD. CIT(A)-4, BENGALURU AND IT RELATES TO THE ASSESSMENT YEAR 2013-14. 2. NONE APPEARED ON BEHALF OF THE ASSESSEE EVEN THO UGH THE ADJOURNMENT WAS GRANTED TO THE ASSESSEE ON EARLIER OCCASIONS AT THE REQUEST OF THE ASSESSEES COUNSEL AND ALSO NOTICE O F HEARING WAS SENT TO THE ASSESSEES COUNSEL BY REGISTERED POST ON ANO THER OCCASION. HENCE, WE PROCEED TO DISPOSE OF THE APPEAL EX-PARTE , WITHOUT THE PRESENCE OF THE ASSESSEE. ITA NO.1346/BANG/2019 SRI NOOR AHMED, BANGALORE PAGE 2 OF 4 3. WE HEARD LD. D.R. AND PERUSED THE RECORD. THE A SSESSEE IS CHALLENGING THE ADDITIONS MADE BY THE A.O., WHICH H AVE BEEN CONFIRMED BY LD. CIT(A). 4. WE HEARD LD. D.R. AND PERUSED THE RECORD. THE A SSESSEE FILED HIS RETURN OF INCOME FOR THE YEAR UNDER CONSIDERATI ON ON 23.12.2013 DECLARING TOTAL INCOME OF RS.21,53,750/-. DURING T HE COURSE OF ASSESSMENT PROCEEDINGS, THE A.O. NOTICED THAT THE C LOSING BALANCE OF CAPITAL ACCOUNT SHOWN IN THE EARLIER YEARS BALANCE SHEET, I.E., AS ON 31.3.2012 FILED FOR ASSESSMENT YEAR 2012-13 WAS RS. 87,06,417/-. HOWEVER, IN THE BALANCE SHEET FILED FOR THE ASSESSM ENT YEAR 2013-14, THE OPENING CAPITAL WAS SHOWN AT RS.3,57,88,935/-. HENCE, THE A.O. ASSESSED THE DIFFERENCE OF RS.2,70,82,518/- AS INCO ME OF THE ASSESSEE. THE A.O. ALSO NOTICED THAT THE ASSESSEE HAS PURCHASED PLANT & MACHINERY AND CARS FOR A SUM OF RS.20 LAKHS DURING THE YEAR UNDER CONSIDERATION. THE A.O. ASKED THE ASSESSEE T O FURNISH THE COPIES OF BILLS/INVOICES RELATING TO THE ABOVE SAID PURCHASES. SINCE THE ASSESSEE DID NOT FURNISH THE DETAILS, THE A.O. ASSESSED THE ABOVE CITED SUM OF RS.20 LAKHS ALSO AS INCOME OF THE ASSE SSEE. 5. BEFORE LD. CIT(A), THE ASSESSEE DID NOT APPEAR, EVEN THOUGH SEVERAL OPPORTUNITIES WERE GIVEN. HENCE, THE LD. C IT(A) CONFIRMED BOTH THE ADDITIONS MADE BY THE A.O. 6. WE NOTICE THAT THE ASSESSEE HAS FURNISHED BEFORE US COPIES OF RETURNS OF INCOME FILED FOR ASSESSMENT YEAR 2012-13 AND 2013-14 ALONG WITH RELEVANT BALANCE SHEETS. A PERUSAL OF B ALANCE SHEET AS ON 31.3.2013 SHOWS THAT THE ASSESSEE HAS TAKEN OPENING BALANCE AS RS.87,06,417/-, WHICH WAS REFLECTED AS CLOSING BALA NCE AS ON 31.3.2012 IN 2012-13. DURING THE YEAR UNDER CONSID ERATION, THE ASSESSEE HAS INTRODUCED ADDITIONAL CAPITAL OF RS.2, 70,82,518/-. ACCORDINGLY, IT IS STATED IN THE GROUNDS OF APPEAL FILED BEFORE THE ITA NO.1346/BANG/2019 SRI NOOR AHMED, BANGALORE PAGE 3 OF 4 TRIBUNAL THAT THE ASSESSEE HAS BROUGHT FORWARD CORR ECT AMOUNT OF CAPITAL BALANCE ONLY FROM THE EARLIER YEAR. IT IS NOT CLEAR AS TO WHETHER THE VERY SAME BALANCE SHEET WAS FILED BEFORE THE AO DURING THE COURSE OF ASSESSMENT PROCEEDINGS. IN ANY CASE, THE DIFFERENCE OF RS.2,70,82,518/- HAS BEEN SHOWN AS ADDITIONAL CAPIT AL INTRODUCED DURING THE CURRENT YEAR. HENCE, THE POINT WHICH REQ UIRES TO BE EXPLAINED BY THE ASSESSEE IS THE SOURCES FOR INTROD UCTION OF ADDITIONAL CAPITAL OF RS.2,70,82,518/-. ACCORDINGLY, THE ISSU E OF DIFFERENCE IN CAPITAL, IN OUR VIEW, REQUIRES FRESH EXAMINATION. THE NEXT ADDITION OF RS.20.00 LAKHS WAS MADE ONLY FOR THE REASON THAT TH E ASSESSEE HAS NOT FURNISHED RELEVANT INVOICES. IN THE INTEREST O F NATURAL JUSTICE, WE ARE OF THE VIEW THAT THE ASSESSEE MAY BE PROVIDED W ITH AN OPPORTUNITY TO FURNISH THE SAME. 7. WE NOTICE THAT THE ASSESSEE HAS ALSO NOT APPE ARED BEFORE LD. CIT(A). ACCORDINGLY, WE DEEM IT FIT TO RESTORE BOT H THE ISSUES TO THE FILE OF LD. CIT(A). ACCORDINGLY, WE SET ASIDE THE ORDER PASSED BY LD. CIT(A) ON BOTH THE ISSUES AND RESTORE THEM TO HIS F ILE FOR ADJUDICATING THEM AFRESH. WE ALSO DIRECT THE ASSESSEE TO FURNIS H NECESSARY INFORMATION AND EXPLANATIONS BEFORE THE LD. CIT(A) IN SUPPORT OF HIS CONTENTIONS TO ENABLE EXPEDITIOUS DISPOSAL OF THE A PPEAL. 8. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS TREATED AS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 1 ST SEPT, 2021 SD/- (BEENA PILLAI) JUDICIAL MEMBER SD/- (B.R. BASKARAN) ACCOUNTANT MEMBER BANGALORE, DATED 1 ST SEPT, 2021. VG/SPS ITA NO.1346/BANG/2019 SRI NOOR AHMED, BANGALORE PAGE 4 OF 4 COPY TO: 1. THE APPLICANT 2. THE RESPONDENT 3. THE CIT 4. THE CIT(A) 5. THE DR, ITAT, BANGALORE. 6. GUARD FILE BY ORDER ASST. REGISTRAR, ITAT, BANGALORE.