M/s. The Spares & Equipments, Durgapur V. ITO, Ward - 1(3), Durgapur, Durgapur

ITA 1437/KOL/2011

• Counselvise Citation: [2013] 119 COUNSELVISE.COM (IT) 2949 (ITAT-KOLKATA)
• Duration Of Justice: 1 year(s) 4 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-03-2013
• Appeal Filed By: Assessee
• Bench Allotted: B
• Assessment Year: 2005-2006
• Appeal Filed On: 24-10-2011
• Court: TRIBUNAL
• Department Lawyers: SHR K N JANA
• Keywords: Unexplained investment; Opportunity of being heard; Revised return
• Section: 143(3)

Judgement Text

, B , IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH: KOL KATA () BEFORE . . . . . . . . , ! /AND ' #!' , ) [BEFORE SHRI P. K. BANSAL, AM & SHRI MAHAVIR SINGH, JM] !$ !$ !$ !$ / I.T.A NO. 1437/KOL/2011 #% &' #% &' #% &' #% &'/ // / ASSESSMENT YEAR: 2005-06 M/S. THE SPARES & EQUIPMENTS VS. INCOME-TAX OFFIC ER, WARD-1(3), DURGAPUR (PAN: AABHT5953L) ()* /APPELLANT ) (+,)*/ RESPONDENT ) DATE OF HEARING: 14.02.2013 DATE OF PRONOUNCEMENT: 15.03.2013 FOR THE APPELLANT: SHRI RAVI TULSIYAN, FCA FOR THE RESPONDENT: SHR K. N. JANA, JCIT, SR. (DR) - / ORDER PER BENCH: THIS APPEAL BY ASSESSEE IS ARISING OUT OF ORDER OF CIT(A), DURGAPUR IN APPEAL NO.76/CIT(A)/DGP/2010-11 DATED 26.08.2011. ASSESSME NT WAS FRAMED BY ITO, WARD-1(3), DURGAPUR U/S. 143(3) R.W.S. 147 OF THE INCOME-TAX A CT, 1961 (HEREINAFTER REFERRED TO AS THE ACT) FOR ASSESSMENT YEAR 2005-06 VIDE HIS ORDER DA TED 24.12.2010. 2. THE ONLY ISSUE IN THIS APPEAL OF ASSESSEE IS AGA INST THE ADDITION MADE BY AO ON ACCOUNT OF UNEXPLAINED INCOME AMOUNTING TO RS.25.65 LACS FO R THE REASON THAT THE ASSESSEE FAILED TO EXPLAIN THE SOURCE OF DEPOSIT IN CANARA BANK, DURGA PUR BRANCH. 3. AT THE OUTSET, LD. COUNSEL FOR THE ASSESSEE STAT ED THAT PRACTICALLY THE ASSESSMENT WAS FRAMED EX PARTE AND THIS FACT CAN BE GATHERED FROM LAST PARA PAGE 3 OF THE ASSESSMENT ORDER, WHICH READS AS UNDER: HOWEVER, HEARING OPPORTUNITY WAS GIVEN TO THE ASSES SEE ON 13.12.21 BY ISSUING THE HEARING NOTICE ON 06.12.2010 BUT NO COMPLIANCE WAS OBSERVED ON THAT DATE ALSO. AGAIN ANOTHER HEARING OPPORTUNITY WAS GIVEN ON 23.12.2010 . BUT ON THAT DAY ALSO NOBODY TURNED UP. NOW, AS THE ASSESSEE DIDNT APPEARED EV EN AFTER GETTING SO MANY OPPORTUNITIES TO CLARIFY THE MATTER, SO THE NATURAL REFERENCE IS DRAWN IN THIS REGARD THAT THE ASSESSEE HAS NOTHING TO EXPLAIN. NOW THE DIFFERENCE OF THE CLOSING BALANCE OF RS.25,65,000/- (RS.26,27,110.39 AS STANDING IN THE BANK ACCOUNT RS.62,110.39 AS SHOWN IN THE BALANCE SHEET) IS TREATED AS UNEXPLAINED INVESTMENT AND A CCORDINGLY IT IS BEING ADDED TO THE 2 ITA NO.1437/K/2011 M/S. THE SPARES & EQUIPMENTS 2005-06 TOTAL INCOME OF THE ASSESSEE. PENALTY U/S. 271(1)( C) HAS BEEN INITIATED SEPARATELY FOR CONCEALMENT. LD. COUNSEL FOR THE ASSESSEE STATED THAT EVEN BEFOR E CIT(A) THE ASSESSEE HAS FILED REVISED BALANCE SHEET ALONG WITH OTHER MATERIALS, WHICH WER E FORWARDED BY CIT(A) TO AO AS THIS WAS FRESH EVIDENCE. ACCORDING TO CIT(A), THE AO AFTER VERIFYING THE NEW MATERIAL FOUND THAT ONLY PART OF THE ASSESSEES CLAIM COULD BE VERIFIED AND AO NOTED THAT THE FIGURES IN THE ORIGINAL BALANCE SHEET WERE NOT SHOWN CORRECTLY AND AS SUCH, THE BALANCE SHEET IS FULL OF MISTAKES. THE CIT(A) FOUND THAT NO REVISED RETURN IS FILED BY THE ASSESSEE AND UNDER THESE CIRCUMSTANCES, HE DECLINED TO ENTERTAIN ADDITIONAL CLAIMS MADE BEFORE HIM. BEFORE US, LD. COUNSEL FOR ASSESSEE STATED THAT HE ONLY PRAYED FOR SETTING ASIDE THE IS SUE TO THE FILE OF AO FOR FRESH ADJUDICATION AS HE HAS COMPLETE DETAILS WITH HIM. HE FILED A PAPER BOOK BEFORE US, WHICH WAS ALREADY FILED BEFORE CIT(A) BY THE ASSESSEE. WE FIND THAT THESE DOCUMENTS WERE NEVER EXAMINED EITHER BY AO OR CIT(A). IN SUCH CIRCUMSTANCES, WE FEEL THAT LET THIS ISSUE BE EXAMINED BY AO AFRESH AFTER GIVING REASONABLE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. IN SUCH CIRCUMSTANCES, WE SET ASIDE THIS APPEAL TO THE FILE OF THE AO AND ASS ESSEES APPEAL IS ALLOWED FOR STATISTICAL PURPOSES. 4. IN THE RESULT, APPEAL OF ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. 5. ORDER PRONOUNCED IN THE OPEN COURT ON 15.03.2013 . SD/- SD/- . . . . . . . . , ' ' ' ' #!' #!' #!' #!' , (P. K. BANSAL) (MAHAVIR SINGH) ACCOUNTANT MEMBER JUDICIAL MEMBER ( . . . .) )) ) DATED : 15 TH MARCH, 2013 /0 #12 #3 JD.(SR.P.S.) 3 ITA NO.1437/K/2011 M/S. THE SPARES & EQUIPMENTS 2005-06 - 4 +##5 65&7- COPY OF THE ORDER FORWARDED TO: 1 . )* / APPELLANT M/S. THE SPARES & EQUIPMENTS, JADABENDR A PANJA AVENUE, DURGAPUR-11, DIST. BURDWAN, WEST BENGAL. 2 +,)* / RESPONDENT ITO, WARD-1(3), DURGAPUR 3 . #- ( )/ THE CIT(A), DURGAPUR 4. 5. #- / CIT DURGAPUR 5 <#= +# / DR, KOLKATA BENCHES, KOLKATA ,5 +#/ TRUE COPY, ->/ BY ORDER, ' !2 /ASSTT. REGISTRAR .