AJAY BAIDYANATH VERMA, MUMBAI V. ITO WD 19(2)(1), MUMBAI

ITA 1463/MUM/2014

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 2316 (ITAT-MUMBAI)
• Duration Of Justice: 2 year(s) 7 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-10-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 04-07-2017
• Assessment Year: 2009-2010
• Appeal Filed On: 03-03-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R P MEENA
• Keywords: Opportunity of being heard; Additional evidence
• Section: 69C; 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH, MUMBAI BEFORE SHRI MAHAVIR SINGH , JM AND SHRI N . K . PRADHAN , AM ./ I.T.A. NO. 1463/MUM/2014 ( / ASSESSMENT YEAR: 2009 - 10 ) AJAY BAIDYANATH VERMA 8, GRD., D - 1, JEEVAN SHANTI COLONY, S. V. ROAD, SANTACRUZ (W), MUMBAI - 400 054 / VS. ITO WARD 19(2)(1), MUMBAI ./ ./ PAN/GIR NO. ACZPV 6009 M ( / APPELLANT ) : ( / RESPONDENT ) / APPELLANT BY : NONE / RESPONDENT BY : SHRI R. P. MEENA / DATE OF HEARING : 13.10.2016 / DATE OF PRONOUNCEMENT : 26 .10.2016 / O R D E R PER N. K. PRADHAN, A. M.: THIS IS AN APPEAL FILED BY THE ASSESSEE. THE RELEVANT ASSESSMENT YEAR IS 2009 - 10. IT IS DIRECTED AGAINST THE ORDER OF COMMISSIONER OF INCOME TAX (APPEALS) - 30, MUMBAI AND ARISES OUT OF THE ORDER U/S. 143(3) OF THE INCOME TAX ACT, 1961 (THE ACT). 2. THE G ROUNDS OF APPEAL FILED BY THE ASSESSEE READ AS UNDER: 1. THE LEARNED CIT(A) ERRED IN NOT ADMITTING ADDITIONAL EVIDENCE UNDER RULE 46A. 2. THE LEARNED CIT(A) ERRED IN CONFIRMING ADDITION OF RS.26,27,988/ - U/S. 69C OF THE INCOME TAX ACT, 1961. 3. THE LEARNE D CIT(A) ERRED IN CONFIRMING DISALLOWANCE OF RS.4,61,946/ - AS INTEREST ON BORROWED CAPITAL U/S. 24(B) OF THE INCOME TAX ACT, 1961. 2 ITA NO. 1463/MUM/2014 (A.Y. 2009 - 10) AJAY BAIDYANATH VERMA VS. ITO 3. AFTER PERUSING THE RELEVANT MATERIAL ON RECORD , WE FIND THAT THE ASSESSEE HAS FILED A WRITTEN SUBMISSION DATED 5.3.2013 BEFORE THE LD. CIT(A) REQUESTING TO ADMIT ADDITIONAL EVIDENCE UNDER RULE 46A OF THE I. T. RULES, 1962. IT RELATES TO THE ADDITION OF RS.26,27,988/ - MADE BY THE AO U/S 69C OF THE ACT. WE FIND THAT IN THE WRITTEN SUBMISSION DATED 13.9.2012, THE ASSESSEE HAS ENCLOSED COPIES OF CREDIT CARD STATEMENT AND BANK STATEMENT OF HIS ACCOUNT AND THAT OF M/S. ADVAIT TECH SERVICE (I) P. LTD. , REFLECTING THE PAYMENT MADE FOR CREDIT CARD EXPENSES. A COPY OF THE CERTIFICATE ISSUED BY THE ABOVE COMPANY CONFIRMING THE PAYMENT MADE BY THEM AGAINST SUCH CREDIT CARD EXPENDITURE HAS ALSO BEEN ENCLOSED. THE ASSESSEE HAS, THUS , REQUESTED THE LD. CIT(A) TO ADMIT THE ABOVE DOCUMENTS AS ADDITIONAL EVIDENCE UNDER RULE 46A OF THE I. T. RULES, 1962 AND FURTHER STATED THAT FROM THE ABOVE DE TAILS, IT WOULD BE AMPLY CLEAR THAT THE EXPENDITURE INCURRED BY THE ASSESSEE HAS BEEN INCURRED ON BEHALF OF THE COMPANY. 4. WE ALSO FIND THAT IN THE WRITTEN SUBMISSION DATED 5.3.2013, THE ASSESSEE HAS STATED THAT THE DETAILS CALLED FOR BY THE AO W ERE VOL UMINOUS, THEREFORE, HE SOUGHT SOME MORE TIME, BUT THE AO PROCEEDED TO COMPLETE THE ASSESSMENT BY MAKING ADDITIONS OF THE ENTIRE CREDIT CARD PAYMENTS AND DISALLOWED INTEREST IN HOUSING LOANS. HE HAS, THEREFORE, STATED THAT HE WAS PREVENTED BY CIRCUMSTANCES BEYOND HIS CONTROL TO SUBMIT THE EVIDENCE BEFORE THE AO AND REQUESTED TO ADMIT THE ADDITIONAL EVIDENCE UNDER RULE 46A. 5. ALSO THE LD. CIT(A) HAS CONFIRMED THE DISALLOWANCE OF LOSS OF RS.4,61,946/ - UNDER THE HEAD INCOME FROM HOUSE PROPERTY BY NOT ADMIT TING THE ADDITIONAL EVIDENCE. 6. HAVING REGARD TO THE FACTS AND CIRCUMSTANCES OF THE CASE AS WELL AS IN THE INTEREST OF JUSTICE, WE ARE OF THE CONSIDERED VIEW THAT THE ADDITIONAL EVIDENCE FILED BY THE ASSESSEE HAS TO BE CONSIDERED AND EXAMINED BY THE LD CIT(A) . WE, THEREFORE, SET ASIDE THE ORDER OF THE LD CIT(A) AND RESTORE THE MATTER TO HIS FILE FOR DECIDING THE ABOVE ISSUES AFRESH AS PER THE PROVISIONS OF THE ACT AFTER ALLOWING A 3 ITA NO. 1463/MUM/2014 (A.Y. 2009 - 10) AJAY BAIDYANATH VERMA VS. ITO REASONABLE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. IT IS MADE CLEAR THAT THE ASSESSEE SHALL BE AT LIBERTY TO LEAD ANY EVIDENCE IN SUPPORT OF HIS CASE DURING THE FRESH PROCEEDINGS. 7 . IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSE. ORDER PRONOUNCED IN THE OPEN COURT ON OCTOBER 26 , 2016 SD/ - SD/ - ( MAHAVIR SINGH ) (N. K. PRADHAN) / JUDICIAL MEMBER / ACCOUNTANT MEMBER MUMBAI ; DATED : 26 .10.2016 . . ./ ROSHANI , SR. PS / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT 3. ( ) / THE CIT(A) 4. / CIT - CONCERNED 5. , , / DR, ITAT, MUMBAI 6. / GUARD FILE / BY ORDER, / (DY./ASSTT. REGISTRAR) , / ITAT, MUMBAI