M/s Shyam Sahakari Grah Nirman Sanstha, Ujjain V. The ITO, Ujjain

ITA 137/IND/2010

• Counselvise Citation: [2010] 135 COUNSELVISE.COM (IT) 5859 (ITAT-INDORE)
• Duration Of Justice: 8 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-11-2010
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 19-05-2011
• Assessment Year: 2004-2005
• Appeal Filed On: 19-03-2010
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: ARUN DEEWAN
• Assessee Lawyers: S K AGRAWAL
• Keywords: Unexplained expenditure; Opportunity of being heard; Principle of natural justice
• Section: 144

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL INDORE BENCH, INDORE BEFORE SHRI JOGINDER SINGH, JUDICIAL MEMBER AND SHRI R.C. SHARMA, ACCOUNTANT MEMBER ITA NO. 137/IND/2010 A.Y. 2004-05 M/S SHYAM SAHAKARI GRAH NIRMAN SANSTHA, UJJAIN PAN AACAS-3269C APPELLANT VS INCOME TAX OFFICER WARD 2(2), UJJAIN RESPONDENT APPELLANT BY : SHRI S.K. AGRAWAL, CA RESPONDENT BY : SHRI ARUN DEEWAN, SR. DR O R D E R PER JOGINDER SINGH, JUDICIAL MEMBER THE ASSESSEE HAS PREFERRED THE PRESENT APPEAL AGAIN ST THE ORDER OF THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) DATED 29 TH JANUARY, 2010 ON THE GROUND THAT THE 2 LEARNED COMMISSIONER OF INCOME TAX (APPEALS) HAS ER RED IN MAKING ADDITION OF UNVERIFIABLE PAYMENTS TREATED AS UNEXPLAINED EXPENDITURE IN THE HANDS OF THE ASSESSE E AT RS. 11,39,905/- ON THE FACTS AND CIRCUMSTANCES OF THE C ASE. 2. WE HAVE HEARD THE RIVAL SUBMISSIONS OF THE PARTI ES AND HAVE GONE THROUGH THE MATERIAL AVAILABLE ON THE FILE. THE CRUX OF ARGUMENTS ON BEHALF OF THE ASSESSEE IS THAT THE ON BEHALF OF THE ASSESSEE IS THAT THE LEARNED COMMISSI ONER OF INCOME TAX (APPEALS) ERRED IN CONFIRMING THE ADDITI ON OF PAYMENTS WHICH WERE TREATED AS UNEXPLAINED EXPENDIT URE IN THE HANDS OF THE ASSESSEE ESPECIALLY WHEN THE DETAI LS OF IMPUGNED AMOUNTS WERE DULY FURNISHED. HOWEVER, THE LEARNED SR. DR CONTENDED THAT THE ASSESSMENT WAS FRAMED U/S 144 OF THE ACT AS THE ASSESSEE COULD NOT FURNISH NECESSARY DETAILS. IT WAS FURTHER SUBMITTED THAT UNDER THE FACTS NOW NARR ATED THE APPEAL MAY BE REMANDED TO THE FILE OF THE ASSESSING OFFICER. 3. ON PERUSAL OF RECORD AND AFTER HEARING THE RIVAL SUBMISSIONS, THE BRIEF FACTS ARE THAT THE ASSESSEE IS A COOPERATIVE SOCIETY AND ITS MAIN BUSINESS IS TO PUR CHASE AND 3 DEVELOP THE LAND AND TO ALLOT THE SAME TO THE MEMBE RS OF THE SOCIETY ON NO PROFIT NO LOSS BASIS. EVEN THE REMAND REPORT WAS FURNISHED BEFORE THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) BUT THE CLAIM OF THE ASSESSEE IS THAT THE VOUCHERS WERE DULY SIGNED BY THE SECRETARY OF THE SOCIETY MR . GOVIND SINGH KUSHWAHA. THE VOUCHERS WERE ALSO CLAIMED TO BE AUDITED BY THE AUDITOR DULY APPOINTED BY THE GOVERN MENT. HOWEVER, WITHOUT GOING INTO MUCH DELIBERATION ESPEC IALLY WHEN THE ASSESSMENT WAS FRAMED U/S 144 OF THE ACT AND TH E ASSESSEE IS CLAIMING TO SUBSTANTIATE ITS CLAIM WITH DOCUMENTARY EVIDENCE, THEREFORE, KEEPING IN VIEW THE PRINCIPLE OF NATURAL JUSTICE, WE REMAND THIS APPEAL TO THE FILE OF THE A SSESSING OFFICER FOR FRESH ADJUDICATION IN ACCORDANCE WITH L AW FOR WHICH DUE OPPORTUNITY OF BEING HEARD BE PROVIDED TO THE A SSESSEE. THE ASSESSEE IS ALSO AT LIBERTY TO FURNISH EVIDENCE , IF ANY, IN SUPPORT OF ITS CLAIM. FINALLY, THE APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES ONLY. 4 ORDER PRONOUNCED IN THE OPEN COURT IN THE PRESENCE OF LEARNED REPRESENTATIVES OF BOTH THE SIDES AT THE CO NCLUSION OF HEARING ON 22 ND JUNE, 2011. (R.C.SHARMA) (JOGINDER SINGH) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 22 ND JUNE, 2011 COPY TO: APPELLANT, RESPONDENT, CIT, CIT(A), DR, GUARD FILE DN/-