Smt. Pushpa Devi, Bangalore V. The Income Tax Officer, Ward - 5(2)(2), Bangalore

ITA 1436/BANG/2019

• Counselvise Citation: [2019] 115 COUNSELVISE.COM (IT) 6501 (ITAT-BANGALORE)
• Duration Of Justice: 4 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-10-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2006-2007
• Appeal Filed On: 14-06-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Principle of natural justice; Set aside

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL BANGALORE BENCH SMC-C, BANGALORE BEFORE SHRI A.K.GARODIA, ACCOUNANT MEMBER ITA NO.1436 (BANG) 2019 (ASSESSMENT YEAR : 2006 07) SMT. PUSHPA DEVI, APPELLANT NO. 1, M. M. LANE, NAGRATHPET CROSS, BANGALORE 560002. PAN. AARPP0186B VS THE ITO, WARD 5 (2)(2), BANGALORE. RESPONDENT ASSESSEE BY : SMT. SUMAN LUNKAR, C. A. REVENUE BY : SHRI GANESH R. GHALE, STANDING COUNSEL DATE OF HEARING : 23-10-2019 DATE OF PRONOUNCEMENT : 25-10-2019 O R D E R PER A. K. GARODIA, A.M.: THIS APPEAL IS FILED BY THE ASSESSEE AND IT IS DIRECTED AGAINST THE ORDER OF CIT (A) 12 BANGALORE DATED 09.05.2019 FOR A. Y. 2006 07. 2. IT WAS SUBMITTED BY THE LEARNED AR OF THE ASSESSEE THAT GROUND NO. 1 IS GENERAL GROUND NO. 2.1 & 2.2 IN RESPECT OF VALIDITY OF REOPENING ARE NOT PRESSED. ACCORDINGLY, THESE GROUNDS ARE REJECTED AS NOT PRESSED. SHE SUBMITTED THAT ONLY GROUND NO. 3.1 IS TO BE DECIDED. THIS GROUND NO. 3.1 READS AS UNDER:- 3.1 IN ANY CASE, THE ORDER PASSED IN GROSS VIOLATION OF THE PRINCIPLES OF NATURAL JUSTICE AND FAIR PLAY, ESPECIALLY IN THE ABSENCE OF THE CROSS EXAMINATION OF THE PERSONS WHOSE AVERMENTS ARE SOUGHT TO BE RELIED UPON BY THE AO WHILE PASSING THE ORDER, MAKE THE ORDER TOTALLY BAD IN LAW AND LIABLE TO BE CANCELLED. 3. LEARNED AR OF THE ASSESSEE SUBMITTED THAT SIMILAR ISSUE WAS DECIDED BY THE TRIBUNAL IN THE CASE OF SHRI MUKESH KUMAR SOLANKI VS. ITO IN ITA NO. 2168/BANG/2016 DATED 17.03.2017. A COPY OF THIS TRIBUNAL ORDER WAS SUBMITTED ITA NO. 1436 (BANG)2019 2 AND IT WAS POINTED OUT THAT THE TRIBUNAL HAS FOLLOWED THE JUDGMENT OF HONBLE KARNATAKA HIGH COURT RENDERED IN THE CASE OF CHANDRA DEVI KOTHARI IN WRIT PETITION NO. 39370/2014 DATED 02.02.2015AND REPRODUCED THE RELEVANT PARA 8 OF THAT JUDGMENT IN PARA 5 OF THIS TRIBUNAL ORDER AND AS PER PARA 6 OF THAT TRIBUNAL ORDER, THE MATTER WAS RESTORED TO THE FILE OF THE AO FOR FRESH DECISION WITH THE SAME DIRECTIONS AS WERE GIVEN BY THE HONBLE KARNATAKA HIGH COURT IN THAT CASE AS PER PARA 8 OF THAT JUDGMENT. HE SUBMITTED THAT IN THE PRESENT CASE ALSO, THE MATTER SHOULD BE RESTORED TO THE FILE OF THE AO FOR FRESH DECISION WITH THE SAME DIRECTIONS AS WERE GIVEN BY THE HONBLE KARNATAKA HIGH COURT IN THAT CASE AS PER PARA 8 OF THAT JUDGMENT. LEARNED DR OF THE REVENUE SUPPORTED THE ORDER OF CIT (A). HE COULD NOT POINT OUT ANY DIFFERENCE IN FACTS. 4. I HAVE CONSIDERED THE RIVAL SUBMISSIONS. I FIND THAT THERE IS NO DIFFERENCE IN FACTS IN THE PRESENT CASE AND IN THE CASE OF SHRI MUKESH KUMAR SOLANKI VS. ITO (SUPRA). IN THAT CASE, THE ISSUE WAS DECIDED AS PER PARA 5 & 6 OF THAT TRIBUNAL ORDER. PARA NO. 8 OF THE JUDGMENT OF HONBLE KARNATAKA HIGH COURT RENDERED IN THE CASE OF CHANDRA DEVI KOTHARI (SUPRA) WAS REPRODUCED AND IT IS SEEN THAT AS PER THIS PARA OF THIS JUDGMENT OF HONBLE KARNATAKA HIGH COURT, IT WAS HELD THAT THE ASSESSEE WAS DENIED AN OPPORTUNITY OF FAIR HEARING BY PROVIDING COPY OF THE STATEMENT AND RELATED DETAILS REGARDING THE ALLEGED SHARE AMOUNT AND BASES ON THESE OBSERVATIONS, HONBLE HIGH COURT RESTORED THE MATTER TO THE AO FOR FRESH DECISION AFTER PROVIDING OPPORTUNITY OF FAIR HEARING BY PROVIDING COPY OF THE STATEMENT AND RELATED DETAILS REGARDING THE ALLEGED SHARE AMOUNT. THE TRIBUNAL IN THE CASE OF SHRI MUKESH KUMAR SOLANKI VS. ITO (SUPRA) RESTORED THE MATTER BACK TO AO FOR FRESH DECISION WITH SAME DIRECTIONS AS WERE GIVEN BY HONBLE HIGH COURT. 5. RESPECTFULLY FOLLOWING THIS TRIBUNAL ORDER AND IN TURN FOLLOWING THE JUDGMENT OF HONBLE KARNATAKA HIGH COURT RENDERED IN THE CASE OF CHANDRA DEVI KOTHARI (SUPRA), I SET ASIDE THE ORDERS OF CIT (A) IN THE PRESENT CASE ALSO ITA NO. 1436 (BANG)2019 3 AND RESTORE THE MATTER BACK TO AO FOR A FRESH DECISION WITH SAME DIRECTIONS AS WERE GIVEN BY HONBLE KARNATAKA HIGH COURT IN THAT CASE AS PER PARA NO. 8 OF THAT JUDGMENT AS NOTED ABOVE. IN VIEW OF THIS DECISION, NO ADJUDICATION IS CALLED FOR AT THIS STAGE REGARDING THE MERIT OF THE ADDITION RAISED BEFORE ME AS PER REMAINING GROUNDS. 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON THE DATE MENTIONED ON THE CAPTION PAGE. SD/- (A.K. GARODIA) ACCOUNTANT MEMBER BANGALORE D A T E D : 25.10.2019 /MS/ COPY TO : 1 APPELLANT 2 RESPONDENT 3 CIT(A) , BANGALORE 4 CIT 5 DR, ITAT, BANGA LORE . 6 GUARD FIL E BY ORDER, AR, ITAT, BANGALORE