Sh. Jasbir Singh, Chandigarh V. ITO, Chandigarh

ITA 1377/CHANDI/2016

• Counselvise Citation: [2017] 130 COUNSELVISE.COM (IT) 8384 (ITAT-CHANDIGARH)
• Duration Of Justice: 1 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-01-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2011-2012
• Appeal Filed On: 14-12-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S K MITTAL
• Assessee Lawyers: ANIL BATRA ADITYA JAIN
• Keywords: Opportunity of being heard; Additional evidence
• Section: 144

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH, CHANDIGARH BEFORE SHRI N.K. SAINI, ACCOUNTANT MEMBER ITA NO.1377/CHD/2016 (ASSESSMENT YEAR : 2011-12) AND ITA NO.1378/CHD/2016 (ASSESSMENT YEAR : 2011-12) SH.JASBIR SINGH, VS. THE INCOME TAX OFFICER, H.NO.125, MILK COLONY, WARD 5(4), VILLAGE DHANAS, CHANDIGARH. CHANDIGARH. PAN: CJJPS3394B (APPELLANT) (RESPONDENT) APPELLANT BY : S/SHRI ANIL BATRA ADITYA JAIN RESPONDENT BY : SHRI S.K. MITTAL, DR DATE OF HEARING : 24.01.2017 DATE OF PRONOUNCEMENT : 24.01.2017 O R D E R THESE TWO APPEALS FILED BY THE SAME ASSESSEE ARE DIRECTED AGAINST THE SEPARATE ORDERS, EACH DATED 25.10.2016 OF LEARNED COMMISSIONER OF INCOME TAX (APPEALS)-2, CHANDIGARH RELATING TO ASSESSMENT YEAR 2011- 12. 2. THE APPEAL IN ITA NO.1377/CHD/2016 RELATES TO SUSTENANCE OF ADDITION OF RS.30,55,060/- MADE BY TH E ASSESSING OFFICER ON ACCOUNT OF CASH DEPOSITS IN TH E BANK AND THE APPEAL IN ITA NO.1378/CHD/2016 RELATES TO PENALTY LEVIED UNDER SECTION 271(1)(C) OF THE INCOM E TAX 2 ACT, 1961 (HEREINAFTER REFERRED TO AS THE ACT) ON THE SUSTAINED ADDITION. 3. THE FACTS OF THE CASE, IN BRIEF, ARE THAT THE ASSESSEE FILED RETURN OF INCOME ON 29.7.2011 DECLAR ING AN INCOME OF RS.1,60,000/-. HOWEVER, THE ASSESSING OF FICER FRAMED ASSESSMENT UNDER SECTION 144 OF THE ACT BY MAKING ADDITION OF RS.30,55,060/-, WHICH REPRESENTE D THE CASH DEPOSITS OF VARIOUS DATES IN THE BANK ACCOUNT NO.3689 OF THE ASSESSEE MAINTAINED WITH AXIS BANK, SECTOR 35, CHANDIGARH. 4. BEING AGGRIEVED, THE ASSESSEE CARRIED THE MATTE R TO THE LD. CIT (APPEALS) AND FURNISHED AN APPLICATI ON UNDER RULE 46A OF THE INCOME TAX RULES, 1962 FOR ADMITTING THE AFFIDAVIT, ACKNOWLEDGEMENT OF POLICE COMPLAINT AND ALSO STATED THAT HE WAS NOT AWARE OF THE DEPOSIT AND UTILIZATION IN HIS BANK ACCOUNT MADE BY HIS FRIEND SHRI SUMIT KUMAR, WHO IS NOT TRACEABLE. THE LD. CIT (APPEALS), HOWEVER, DID NOT ADMIT THE ADDITIONA L EVIDENCE BY HOLDING THAT THE ASSESSEE HAD NOT TAKEN SUCH STAND BEFORE THE ASSESSING OFFICER. 5. NOW THE ASSESSEE IS IN APPEAL. I HAVE CONSIDERED THE SUBMISSIONS OF BOTH THE PARTIES AND PERUSED THE MATERIAL AVAILABLE ON RECORD. IN THE P RESENT CASE, IT APPEARS THAT ONE OF THE FRIENDS OF THE ASS ESSEE SHRI SUMIT KUMAR USED BANK ACCOUNT OF THE ASSESSEE FOR THE PURCHASE OF DEMAND DRAFTS FOR ONWARD REMITTANCE AND ASSESSEE WAS NOT AWARE OF THIS FACT. HE, THEREFORE , LODGED 3 A POLICE COMPLAINT. IN MY OPINION, THE LD. CIT (AP PEALS) OUGHT TO HAVE ADMITTED THE ADDITIONAL EVIDENCES AND THEN DECIDED THE ISSUE IN ACCORDANCE WITH LAW AFTER PROV IDING DUE AND REASONABLE OPPORTUNITY OF BEING HERD TO THE ASSESSEE. IN THAT VIEW OF THE MATTER, THIS ISSUE I S REMANDED BACK TO THE FILE OF THE LD. CIT (APPEALS) TO BE ADJUDICATED AFRESH IN ACCORDANCE WITH LAW AFTER PRO VIDING DUE AND REASONABLE OPPORTUNITY OF BEING HEARD TO TH E ASSESSEE. 6. SINCE THE OTHER APPEAL IN ITA NO.1378/CHD/2016 RELATING TO LEVY OF PENALTY IS DIR ECTLY CORRELATED TO THE QUANTUM ADDITION, THEREFORE, THIS ISSUE IS ALSO SET ASIDE TO THE FILE OF THE LD. CIT (APPEA LS) TO BE DECIDED ALONGWITH THE APPEAL ON QUANTUM ADDITION. 7. IN THE RESULT, BOTH THE APPEALS OF THE ASSESSEE ARE ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 24.01.2017. SD/- (N.K. SAINI) ACCOUNTANT MEMBER DATED : 24 TH JANUARY, 2017 *RATI* COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT(A) 4. THE CIT 5. THE DR ASSISTANT REGISTRAR, ITAT, CHANDIGARH