Smt. Vinoda S Kotagunshi, Hubli V. Income Tax Officer, Ward- 1(4), Hubli

ITA 1402/BANG/2019

• Counselvise Citation: [2019] 112 COUNSELVISE.COM (IT) 0395 (ITAT-BANGALORE)
• Duration Of Justice: 6 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-12-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2013-2014
• Appeal Filed On: 11-06-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: GANESH G R
• Keywords: Opportunity of being heard; Principle of natural justice; Capital receipt
• Section: 250

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL SMC - C BENCH : BANGALORE BEFORE SHRI A. K. GARODIA, ACCOUNTANT MEMBER ITA NO. 1 4 0 2 / BANG /201 9 ASSESSMENT YEAR : 20 1 3 - 1 4 SMT. VINODA S. KOTAGUNSHI, NARAYAN NILAYA, M. S. REVANKAR, MAGAJIKONDI LAYOUT, HUBLI 580 024. PAN : B RH P K 9711 M VS. THE INCOME TAX OFFICER, WARD 1(4), HUBLI. APPELLANT RESPONDENT ASSESSEE BY : SHRI. RAVISHANKAR, ADVOCATE REVENUE BY : SHRI. GANESH G. R, STANDING COUNSEL DATE OF HEARING : 19 . 11 .201 9 DATE OF PRONOUNCEMENT : 26 . 1 2 .201 9 O R D E R THIS IS AN APPEAL FILED BY THE ASSESSEE AND THE SAME IS DIRECTED AGAINST THE ORDER OF LEARNED CIT(A), HUBBALLI, DATED 15.03.2019, FOR THE ASSESSMENT YEAR 2013-14. THE GROUND RAISED BY THE ASSESSEE IN THIS APPEAL ARE AS UNDER:- 1. THE ORDER OF THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS), HUBLI, PASSED UNDER SECTION 250 OF THE ACT IN SO FAR AS IT IS AGAINST THE APPELLANT IS OPPOSED TO LAW, WEIGHT OF EVIDENCE, NATURAL JUSTICE, PROBABILITIES, FACTS AND CIRCUMSTANCES OF THE APPELLANT'S CASE. 2. THE APPELLANT DENIES HERSELF TO BE LIABLE TO BE ASSESSED TO TOTAL INCOME OF RS.17,1O,360/- AS AGAINST THE RETURNED INCOME OF RS. 78,870/- ON THE FACTS AND CIRCUMSTANCES OF THE CASE. 3. THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) WAS NOT JUSTIFIED IN NOT AFFORDING SUFFICIENT OPPORTUNITY OF HEARING AND CONSEQUENTLY PASSED THE ORDER IN VIOLATION OF PRINCIPLES OF NATURAL JUSTICE ON THE FACTS AND CIRCUMSTANCES OF THE CASE. 4. THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) ERRED IN LAW IN NOT ADJUDICATING ON THE GROUNDS OF APPEAL AND SUMMARILY DISMISSED THE APPEAL, ON THE FACTS AND CIRCUMSTANCES OF THE CASE. ITA NO. 1402/BANG/2019 PAGE 2 OF 4 5. THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) ERRED IN LAW IN NOT ANNULLING THE REASSESSMENT SINCE THE REASONS RECORDED FOR REOPENING WERE NOT FURNISHED, THUS VITIATING THE PROCEEDINGS, ON THE FACTS AND CIRCUMSTANCES OF THE CASE. 6. THE LEARNED CIT(A) ERRED IN LAW AND ON FACT IN HOLDING THAT THE APPELLANT HAD FAILED TO ESTABLISH THE SOURCE OF CASH DEPOSITED IN THE BANK ACCOUNTS, WHEN THE SAME WAS EXPLAINED SATISFACTORILY BEFORE THE LOWER AUTHORITIES, ON THE FACTS AND CIRCUMSTANCES OF THE CASE. 7. THE LEARNED CIT(A) WAS NOT JUSTIFIED ON FACTS IN CONFIRMING THE ADDITIONS TO THE EXTENT OF RS. 10,07,000/- BEING SALE PROCEEDS OF HOUSE PROPERTY OF THE SPOUSE AND DEPOSITED INTO THE JOINT ACCOUNT AND HENCE THE SOURCE OF THE DEPOSIT WAS EXPLAINED, ON THE FACTS AND CIRCUMSTANCES OF THE CASE. 8. THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) FAILED TO APPRECIATE THAT THE APPELLANT HAD SUBSTANTIATED BEFORE THE ASSESSING OFFICER THAT THE REMAINING AMOUNTS RECEIVED WERE OUT OF INHERITANCE/PAST SAVINGS AND THUS WAS A CAPITAL RECEIPT/CAPITAL AND THUS THE ADDITIONS MADE OUGHT TO HAVE BEEN DELETED ON THE FACTS AND CIRCUMSTANCES OF THE CASE. 9. THE APPELLANT CRAVES LEAVE TO ADD, ALTER, AMEND, SUBSTITUTE, CHANGE AND DELETE ANY OF THE GROUNDS OF APPEAL. 10. FOR THE ABOVE AND OTHER GROUNDS THAT MAY BE URGED AT THE TIME OF HEARING OF THE APPEAL, THE APPELLANT PRAYS THAT THE APPEAL MAY BE ALLOWED AND JUSTICE RENDERED. 2. IT WAS SUBMITTED BY LEARNED AR OF THE ASSESSEE IN THE COURSE OF HEARING THAT IT IS NOTED BY LEARNED CIT(A) IN PARA NO.4 OF HIS ORDER THAT THE ASSESSEE WAS GIVEN AN OPPORTUNITY OF BEING HEARD AND MAKING SUBMISSIONS IN SUPPORT OF THE ASSESSEES CLAIMS ON THE VARIOUS DATES THAT WERE FIXED FROM 09.05.2018 TO 10.09.2018. HE SUBMITTED THAT IT IS ALSO NOTED BY THE LEARNED CIT(A) IN THE SAME PARA OF HIS ORDER THAT FINAL OPPORTUNITY WAS PROVIDED TO THE ASSESSEE ON 10.09.2018 AND THE LEARNED AR FOR THE ASSESSEE APPEARED ON 08.08.2018 AND REQUESTED FOR FURTHER TIME TILL 27.08.2018. HE POINTED OUT THAT ON THE FIRST PAGE OF HIS ORDER, IT IS NOTED BY THE LEARNED CIT(A) THAT THE LAST DATE OF HEARING WAS 08.08.2018. HE SUBMITTED THAT IT GOES TO SHOW THAT FURTHER OPPORTUNITY OF HEARING ON 27.08.2018 WAS NOT PROVIDED BY THE LEARNED CIT(A) TO THE ASSESSEE ALTHOUGH THE IMPUGNED ORDER WAS PASSED BY HIM ON 15.03.2019. HE SUBMITTED THAT UNDER THESE FACTS AND IN THE INTEREST OF JUSTICE, THE MATTER MAY ITA NO. 1402/BANG/2019 PAGE 3 OF 4 BE RESTORED BACK TO THE FILE OF THE CIT(A) FOR A FRESH DECISION AFTER PROVIDING REASONABLE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. HE ALSO SUBMITTED THAT IF THE MATTER IS RESTORED BACK TO THE FILE OF THE CIT(A), HE UNDERTAKES THAT PROPER COMPLIANCE WILL BE MADE BY THE ASSESSEE BEFORE CIT (A). THE LEARNED DR OF THE REVENUE SUPPORTED THE ORDER OF THE CIT(A) AND HE SUBMITTED THAT SINCE VARIOUS OPPORTUNITIES WERE GIVEN, NO FURTHER OPPORTUNITY SHOULD BE PROVIDED. 3. I HAVE CONSIDERED THE RIVAL SUBMISSIONS. I FIND THAT IT IS NOTED BY LEARNED CIT(A) IN PAGE 1 OF HIS ORDER THAT THE LAST DATE OF HEARING WAS 08.08.2018. IN PARA 4 OF HIS ORDER, IT IS NOTED BY THE LEARNED CIT(A) THAT THE LEARNED AR OF THE ASSESSEE APPEARED ON 08.08.2018 AND REQUESTED FOR FURTHER TIME TILL 27.08.2018 TO MAKE SUBMISSIONS IN SUPPORT OF THE ASSESSEES GROUNDS OF APPEAL. LEARNED AR OF THE ASSESSEE SUBMITTED THAT SINCE AS PER LEARNED CIT(A) HIMSELF, THE LAST DATE OF HEARING WAS 08.08.2018, IT IS APPARENT THAT FURTHER OPPORTUNITY WAS NOT PROVIDED BY THE CIT(A) ALTHOUGH THE IMPUGNED ORDER WAS PASSED BY HIM ON 15.03.2019. UNDER THESE FACTS, I FEEL IT PROPER TO RESTORE BACK THE MATTER TO THE FILE OF CIT(A) FOR A FRESH DECISION AFTER PROVIDING REASONABLE OPPORTUNITY OF BEING HEARD TO BOTH SIDES AND I ORDER ACCORDINGLY. IN VIEW OF THIS DECISION, NO ADJUDICATION ON MERIT IS CALLED FOR AT THE PRESENT STAGE AND I MAKE NO COMMENT ON MERIT. 4. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. PRONOUNCED IN THE OPEN COURT ON THE DATE MENTIONED ON THE CAPTION PAGE. SD/- SD/- (PAVAN KUMAR GADALE) (A. K. GARODIA) JUDICIAL MEMBER ACCOUNTANT MEMBER BANGALORE. DATED: 26 TH DECEMBER, 2019. /NS/* ITA NO. 1402/BANG/2019 PAGE 4 OF 4 COPY TO: 1. APPELLANT S 2. RESPON DENT 3. CIT 4. CIT(A) 5. DR, ITAT, BANGALORE. 6. GUARD FILE BY ORDER ASSISTANT REGISTRAR, ITAT, BANGALORE.