R.V.Ravikumar, Pondicherry V. ACIT, Pondicherry

ITA 1424/CHNY/2015

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 96489 (ITAT-CHENNAI)
• Duration Of Justice: 6 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-12-2015
• Appeal Filed By: Assessee
• Bench Allotted: D
• Next Hearing Date: 30-11-2015
• Assessment Year: 2011-2012
• Appeal Filed On: 11-06-2015
• Court: TRIBUNAL
• Department Lawyers: A B KOLI
• Keywords: Unexplained investment
• Section: 143(3); 142(1)

Judgement Text

, , IN THE INCOME - TAX APPELLATE TRIBUNAL D BENCH, CHENNAI , . , BEFORE SHRI CHANDRA POOJARI , ACCOUNTANT MEMBER & SHRI DUVVURU RL REDDY , JUDICIAL MEMBER ./ I.T.A.NO. 14 2 4/MDS/2015 / ASSESSMENT YEAR :20 11 - 12 SHRI R.V. RAVIKUMAR, VILLA BALAJI, 1 ST CROSS EXTENSION, RAINBOW NAGAR, PUDUCHERRY 605 011. [PAN: A CZPR4932K ] VS. THE ASSISTANT COMMISSIONER OF INCOME TAX , CI RCLE I , PONDICHERRY . ( / APPELLANT ) ( / RESPONDENT ) / APPELLANT BY : SHRI PHILIP GEORGE , ADVOCATE / RESPONDENT BY : SHRI A. B. KOLI, J CIT / DATE OF HEARING : 30 . 1 1 .2 01 5 / DATE OF P RONOUNCEMENT : 11 . 1 2 .201 5 / O R D E R PER DUVVURU RL REDDY , JUDICIAL MEMBER : TH IS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF THE LD. COMMISSIONER OF INCOME TAX ( APPEALS ) , PUDUCHERRY , DATED 27 . 0 3 .20 1 5 RELEVANT TO THE ASSESSMENT YEAR 20 11 - 12 . THE ONLY EFFECTIVE GROUND RAISED IN THE APPEAL OF THE ASSESSEE IS RELATING TO ADDITION OF UNEXPLAINED INVESTMENT UNDER SECTION 69A OF THE INCOME TAX ACT, 1961 [ ACT IN SHORT] OF .93,03,400/ - [CASH DEPOSIT IN STATE BANK OF INDIA .86,03,400/ - AND IN BANK OF BARODA .7,00,000/ - ]. I.T.A. NO . 1424 /M/ 15 2 2. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE IS THE MANAGING DIRECTOR OF M/S. RAVIKUMAR DISTILLERIES LIMITED AND DERIVING INCOME FROM HOUSE PROPERTY, CAPITAL GAINS AND O THER SOURCES. THE ASSESSEE HAS FILED HIS RETURN OF INCOME ADMITTING A TOTAL INCOME OF .28,52,470/ - AND AGRICULTURAL INCOME OF .23,00,000/ - . THE RETURN WAS PROCESSED UNDER SECTION 143(1) OF THE ACT AND THE CASE WAS SELECTED FOR SCRUTINY AND NOTICE UNDER S ECTION 143(2) OF THE ACT WAS SERVED ON THE ASSESSEE. FURTHER, A NOTICE UNDER SECTION 142(1) OF THE ACT ALONG WITH QUESTIONNAIRE WAS ALSO ISSUED TO THE ASSESSEE. IN RESPONSE TO THE ABOVE NOTICES, THE AR OF THE ASSESSEE FILED STATEMENT OF TOTAL INCOME, BANK ACCOUNT EXTRACTS, COPY OF SALE DEED AND OTHER DETAILS. AFTER EXAMINING THE DETAILS FILED BY THE AR OF THE ASSESSEE, THE ASSESSMENT UNDER SECTION 143(3) OF THE ACT WAS COMPLETED BY THE ASSESSING OFFICER BY MAKING VARIOUS ADDITIONS. 3. ON APPEAL, THE LD. CIT(A) ISSUED NOTICES ON 09.06.2014, 14.08.2014, 09.09.2014, 17.09.2014, 03.11.2014, 24.11.2014, 01.01.2015, 22.01.2015 AND 05.03.2015. HOWEVER, NONE APPEARED ON BEHALF OF THE ASSESSEE FOR EFFECTIVE HEARING. EACH TIME, A REQUEST WAS MADE FOR ADJOURNMENT E ITHER ON ACCOUNT OF SICKNESS IN HIS FAMILY OR ACCOUNTANT S FAMILY. SINCE THERE WAS NO PROPER REPRESENTATION FROM ASSESSEE S SIDE, THE LD. CIT(A) DECIDED THE APPEAL ON MERITS. THE ONLY EFFECTIVE GROUND RAISED BEFORE THE LD. CIT(A) WAS WITH REGARD ADDITION O N ACCOUNT OF UNEXPLAINED INVESTMENT UNDER SECTION I.T.A. NO . 1424 /M/ 15 3 69A OF THE ACT. AFTER CONSIDERING THE FACTS AND MATERIALS AVAILABLE ON RECORD, THE LD. CIT(A) CONFIRMED THE ADDITION MADE BY THE ASSESSING OFFICER. 4. ON BEING AGGRIEVED, THE ASSESSEE IS IN APPEAL BEFORE THE TRIBUNAL AND THE LD. COUNSEL FOR THE ASSESSEE HAS SUBMITTED THAT ONE MR. ANIL AGARWAL HAS CHEATED THE ASSESSEE IN THE FINANCIAL MATTERS IN ASSESSEE S COMPANY IN WHICH THE ASSESSEE IS THE MANAGING DIRECTOR AND DUE TO THE UNAVOIDABLE CIRCUMSTANCES, THER E WAS NO PROPER REPRESENTATION FROM ASSESSEE S SIDE. THEREFORE, HE PRAYED THAT ONE MORE OPPORTUNITY MAY BE GIVEN TO THE ASSESSEE TO REPRESENT HIS CASE BEFORE THE LD. CIT(A). 5. PER CONTRA, THE LD. DR HAS SUBMITTED THAT THE ASSESSEE WAS GIVEN MORE THAN S UFFICIENT OPPORTUNITIES TO REPRESENT HIS CASE BEFORE THE LD. CIT(A) AND THEREFORE, NO MORE OPPORTUNITY SHOULD BE GIVEN TO THE ASSESSEE. 6. WE HAVE HEARD BOTH SIDES, PERUSED THE MATERIALS ON RECORD AND GONE THROUGH THE ORDERS OF AUTHORITIES BELOW. DESPITE SUFFICIENT OPPORTUNITIES GIVEN TO THE ASSESSEE, THERE WAS NO REPRESENTATION FROM THE ASSESSEE BEFORE THE LD. CIT(A) AND THEREFORE, THE LD. CIT(A) DE CIDED THE APPEAL ON MERITS BASED ON THE MATERIALS AVAILABLE ON RECORD. BEFORE US, THE LD. COUNSEL FOR THE ASSESSEE HAS SUBMITTED THAT IF ONE MORE OPPORTUNITY IS GIVEN TO THE ASSESSEE, THE ASSESSEE CAN EXPLAIN THE SOURCE OF CASH DEPOSITED IN THE BANK BEFORE THE LD. CIT(A). TO MEET THE ENDS OF JUSTICE, WE ARE OF THE I.T.A. NO . 1424 /M/ 15 4 CONSIDERED OPINION THAT ONE MORE OPPORTUNITY OF HEARING TO THE ASSESSEE MAY BE GIVEN BY THE LD. CIT(A). ACCORDINGLY, WE SET ASIDE THE ORDER PASSED BY THE LD. CIT(A) AND REMIT THE MATTER BACK TO TH E LD. CIT(A) TO GIVE ONE MORE OPPORTUNITY OF HEARING TO THE ASSESSEE. THE ASSESSEE IS ALSO DIRECTED TO FURNISH ALL DETAILS WITH REGARD TO THE DEPOSITS IN THE BANK AND EXPLAIN THE SOURCE OF CASH DEPOSITS. ACCORDINGLY, THE GROUNDS RAISED BY THE ASSESSEE ARE ALLOWED FOR STATISTICAL PURPOSES. 7 . IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES . ORDER PRONOUNCED ON THE 11 TH DECEMBER , 2015 AT CHENNAI. SD/ - SD/ - ( CHANDRA POOJARI ) ACCOUNTANT MEMBER ( DUVVURU RL REDDY ) JUDI CIAL MEMBER CHENNAI, DATED, THE 11 .1 2 .201 5 VM/ - / COPY TO: 1. / APPELLANT , 2. / RESPONDENT , 3. ( ) / CIT(A) , 4. / CIT , 5. / DR & 6. / GF.