DR. NARENDRA M REGE, MUMBAI V. ITO 11(3)(1), MUMBAI

ITA 1408/MUM/2013

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 1407 (ITAT-MUMBAI)
• Duration Of Justice: 3 year(s) 10 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-12-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 20-05-2015
• Assessment Year: 2009-2010
• Appeal Filed On: 19-02-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Principle of natural justice
• Section: 68; 144

Judgement Text

, , , IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES, B MUMBAI , , BEFORE SHRI JOGINDER SINGH, JUDICIAL MEMBER, AND SHRI RAM IT KOCHAR, ACCOUNTANT MEMBER ITA NO.1408/MUM/2013 ASSESSMENT YEAR: 2009-10 DR. NARENDRA M. REGE, 201/202, PALM SPRING, P. TANDON ESTATE, LOKHANDWALA STREET, ANDHERI (WEST), MUMBAI-400053 / VS. INCOME TAX OFFICER- 11(3)(1), 4 TH FLOOR, AAYAKAR BHAVAN, MUMBAI-400020 ( /ASSESSEE) ( ' / REVENUE) PAN. NO.AACPR2710C ITA NO.1410/MUM/2013 ASSESSMENT YEAR: 2009-10 DR. MEERA NARENDRA REGE, 403/404, RICHMOND CHS, LOKHANDWALA STREET, ANDHERI (WEST), MUMBAI-400053 / VS. INCOME TAX OFFICER- 11(3)(1), 4 TH FLOOR, AAYAKAR BHAVAN, MUMBAI-400020 ( /ASSESSEE) ( ' / REVENUE) PAN. NO.AACPR2708J ITA NO. 1408 & 1410/MUM/2013 DR. NARENDRA M. REGE & DR. MEERA NARENDRA REGE 2 # '$ % & / DATE OF HEARING : 27/12/2016 % & / DATE OF ORDER: 27/12/2016 / O R D E R PER JOGINDER SINGH (JUDICIAL MEMBER) THESE TWO APPEALS ARE BY DIFFERENT ASSESSEES, CLOSE RELATIVES, ARE AGGRIEVED BY THE IMPUGNED ORDERS BOT H DATED 26/12/2012 OF THE LD. FIRST APPELLATE AUTHORITY, MU MBAI, UPHOLDING THE EX-PARTE ORDER PASSED U/S 144 OF THE INCOME TAX ACT, 1961 (HEREINAFTER THE ACT), IGNORING THE P RINCIPLE OF NATURAL JUSTICE. 2. DURING HEARING, MS. AARTI SATHE, LD. COUNSEL FO R THE ASSESSEE, ADVANCED ARGUMENTS, WHICH IS IDENTICA L TO THE GROUND RAISED, BY CONTENDING THAT THE ASSESSEE SUBMITTED THE DETAILS TO THEIR COUNSEL/AUTHORIZED REPRESENTATIVE ON 21/12/2012 AND REQUESTED FOR PERS ONAL HEARING, WHICH WAS DENIED. IT WAS REQUESTED THAT TH E ASSESSEE IS IN A POSITION TO EXPLAIN THE SOURCE OF THE ADDITION MADE U/S 68 OF THE ACT IN RESPECT OF CASH DEPOSIT IN THE AXIS BANK. 2.1. ON THE OTHER HAND, THE LD. DR, MS. RAMA PRIYA RAGHAVAN, STRONGLY DEFENDED THE ADDITION BY CONTEND ING THAT THE ASSESSEE NEITHER MADE EFFECTIVE REPRESENTA TION !' / ASSESSEE BY MS. AARTI SATHE ' !' / REVENUE BY MS. RAMAPRIYA RAGHAVAN-DR ITA NO. 1408 & 1410/MUM/2013 DR. NARENDRA M. REGE & DR. MEERA NARENDRA REGE 3 BEFORE THE ASSESSING OFFICER NOR BEFORE THE LD. COMMISSIONER OF INCOME TAX (APPEAL) AND EVEN NO DOCUMENTARY EVIDENCE, TO SUBSTANTIATE THEIR CLAIM, HAS BEEN FILED BEFORE THIS TRIBUNAL. IT WAS PLEADED THA T IN SPITE OF PROVIDING SUFFICIENT OPPORTUNITIES BY THE AUTHOR ITIES, THE ASSESSEE EVEN DID NOT BOTHER TO APPEAR, THEREFORE, THE ADDITION MAY BE SUSTAINED. 2.2. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. BEFORE GO ING INTO MERITS OF THE APPEAL, WE FIND THAT BOTH THE ASSESSE E ARE DOCTOR BY PROFESSION. DURING ASSESSMENT PROCEEDING S, THE AUTHORIZED REPRESENTATIVE OF THE ASSESSEE WAS ASKED BY THE LD. ASSESSING OFFICER TO FILE THE NECESSARY DETAILS , WHICH WERE NOT FILED. VARIOUS NOTICES INCLUDING SUMMONS WERE ISSUED TO THE ASSESSEE TO APPEAR IN PERSON AND FILE D THE DETAILS CALLED FOR THROUGH VARIOUS NOTICES. THERE I S A NON- COMPLIANCE BY THE ASSESSEE ON THESE NOTICES. THERE WAS AN INFORMATION WITH THE DEPARTMENT THAT THE ASSESSEE ( IN ITA NO.1408/MUM/2013) DEPOSITED CASH OF RS.75,62,000/- IN AXIS BANK, GOREGAON BRANCH, THE DETAILS OF WHICH HA VE BEEN REPRODUCED IN THE ASSESSMENT ORDER AS ANNEXURE -1. LIKEWISE, IN THE CASE OF DR. MEERA NARENDRA REGE (I N ITA NO.1410/MUM/2013) THERE WAS A CASH DEPOSIT AND UNSECURED LOANS. THE NECESSARY DETAILS WERE NOT FI LED BY THE ASSESSEE. IN THE ABSENCE OF NECESSARY DETAILS A ND NON- COOPERATION FROM THE ASSESSEE, ADDITIONS WERE MADE. ITA NO. 1408 & 1410/MUM/2013 DR. NARENDRA M. REGE & DR. MEERA NARENDRA REGE 4 2.3. ON APPEAL BEFORE THE LD. COMMISSIONER OF INCOME TAX (APPEAL) ALSO NOTICE OF HEARING WAS ISSU ED ON 21/09/2012 FOR 03/10/2012. THE ASSESSEE REQUESTED F OR ADJOURNMENT, WHICH WAS GRANTED. ON 30/10/2012, THE ASSESSEE AGAIN REQUESTED FOR ADJOURNMENT AND ALLOWE D FOR 20/11/2012. ON THAT DATE ALSO, THE ASSESSEE REQUEST ED FOR ADJOURNMENT AND THE APPEAL WAS ADJOURNED TO 29/11/2012. ON 13/12/2012, THE APPEAL WAS AGAIN ADJOURNED TO 21/12/2012 ON THAT NOBODY ATTENDED THE HEARING AND THUS AN EX-PARTE ORDER WAS PASSED UPHOL DING THE ADDITIONS MADE BY THE ASSESSING OFFICER. 2.4. BEFORE THIS TRIBUNAL ALSO, THESE APPEALS WERE FILED ON 29/02/2013. THE ASSESSEE SOUGHT ADJOURNMEN T ON 20/05/2015 AND 03/12/2015. TODAY ALSO, NO DETAILS W ERE FILED BY THE ASSESSEE AND THE LD. COUNSEL MERELY AS KED FOR ADJOURNMENT. IT SEEMS THAT THE ASSESSEES ARE NOT INTERESTED TO PURSUE THEIR APPEALS. HOWEVER, KEEPIN G IN VIEW, THE PRINCIPLE OF NATURAL JUSTICE AND CONSIDER ING THE NON-COOPERATIVE/CASUAL ATTITUDE OF BOTH THE ASSESSE ES, WE DIRECT THEM TO MAKE EFFECTIVE REPRESENTATION BEFORE THE LD. COMMISSIONER OF INCOME TAX (APPEAL) AND TO COOPERAT E IN EARLY DISPOSAL OF THE APPEALS. IT IS ALSO DIRECTED THAT IF THE ASSESSEES STILL CHOOSE NOT TO APPEAR BEFORE THE FIR ST APPELLATE AUTHORITY OR UNABLE TO FILE THE NECESSARY DETAILS, THE LD. COMMISSIONER OF INCOME TAX (APPEAL) IS FREE TO DECIDE THE APPEAL ON THE BASIS OF MATERIAL AVAILABL E ON RECORD. THE ASSESSEES ARE DIRECTED TO COLLECT THE N ECESSARY ITA NO. 1408 & 1410/MUM/2013 DR. NARENDRA M. REGE & DR. MEERA NARENDRA REGE 5 DETAILS, IF ANY, AT THE EARLIEST, AND APPROACH THE OFFICE OF THE LD. COMMISSIONER OF INCOME TAX (APPEAL) WITHIN ONE MONTH FROM THE RECEIPT OF THIS ORDER. THE LD. COMMISSIONE R OF INCOME TAX (APPEAL) IS FREE TO DECIDE THE APPEALS, AS AND WHEN THE ASSESSES APPROACHES HIS OFFICE, AS DIRECTE D ABOVE, OR ON A MUTUALLY PRE-DECIDED DATE, THUS, BOTH THES E APPEALS ARE ALLOWED FOR STATISTICAL PURPOSES ONLY. FINALLY, THE APPEALS OF THE ASSESSEES ARE ALLOWED F OR STATISTICAL PURPOSES ONLY. THIS ORDER WAS PRONOUNCED IN THE OPEN COURT IN THE PRESENCE OF LD. REPRESENTATIVES FROM BOTH SIDES AT THE CONCLUSION OF THE HEARING ON 27/12/2016. SD/- SD/- ( RAMIT KOCHA R ) (JOGINDER SINGH) #'$ / ACCOUNTANT MEMBER %'$ /JUDICIAL MEMBER # $ MUMBAI; ' DATED : 27/12/2016 F{X~{T? P.S / /. . . &%'()*)+' / COPY OF THE ORDER FORWARDED TO : 1. )*+, / THE APPELLANT (RESPECTIVE ASSESSEE) 2. -.+, / THE RESPONDENT. 3. / / # 0 ( )* ) / THE CIT, MUMBAI. 4. / / # 0 / CIT(A)- , MUMBAI, 5. 2'3 - , / )*& ) 4 , # $ / DR, ITAT, MUMBAI 6. 5 6$ / GUARD FILE. ' / BY ORDER, .2* - //TRUE COPY// /' (DY./ASSTT. REGISTRAR) , # $ / ITAT, MUMBAI