Smt Meetha Dhariwall, Bangalore V. The Income Tax Officer Ward-7(2)(1), Bangalore

ITA 1467/BANG/2018

• Counselvise Citation: [2018] 121 COUNSELVISE.COM (IT) 4640 (ITAT-BANGALORE)
• Duration Of Justice: 1 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-06-2018
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: A
• Assessment Year: 2007-2008
• Appeal Filed On: 07-05-2018
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: DR G MANOJ KUMAR
• Assessee Lawyers: VIMAL DHARIWAL
• Keywords: Opportunity of cross examination; Assessment record

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH, B ENGALURU BEFORE S HRI SUNIL KUMAR YADAV, JUDICIAL MEMBER AND SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER I TA NO. 1467 / BANG/2 0 1 8 (ASSESSMENT YEAR: 2007 - 08 ) SMT.MEETHA DHARIWALL, D/O. LATE SRI UTTAMCHANDJI DUGAR, NO.2502, 8 TH F MAIN ROAD, 3 RD BLOCK, JAYANAGAR, BENGALURU - 560011. PAN: AJNPM 9657 R VS. APPELLANT INCOME - TAX OFFICER, WARD 7(2)(1), BENGALURU. RESPONDENT APPELLANT BY : SHRI VIMAL DHARIWAL, CA. RESPONDENT BY : DR. G. MA NOJ KUMAR, ADDL.CIT(DR) DATE OF HEARING : 04/06/2018 DATE OF PRONOUNCEMENT : 08 /06/2018 O R D E R PER I NTURI RAMA RAO, AM : THIS IS AN APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF THE LD. COMMISIONER OF INCOME - TAX (APPEALS ) - 10, [CIT(A)] BANGALORE , DATED 22 / 02 / 2018 FOR THE ASSESSMENT YEAR 2007 - 08. 2. THE ASSESSEE RAISED T HE FOLLOWING GROUNDS OF APPEAL: ITA NO . 1467 /BANG/20 18 PAGE 2 OF 3 3. BRIEFLY FACTS OF THE CASE ARE THAT THE ASSESSEE IS AN INDIVIDUAL AND FILED RETURN OF INCOME FOR THE ASSESSMENT YEAR 2007 - 08 ON 28/03/2018 DECLARING INCOME OF RS. 1 , 83 ,018/ - . A GAINST SAID RETURN OF INCOME , THE ASSESSMENT WAS COMPLETED BY THE INCOME - TAX O FFICER , W ARD - 7(2)(1), BANGALORE , VIDE ORDER DATED 30/01/2015 PASSED UNDER SECTION 143 ( 3 ) OF THE INC OME - TAX ACT, 1961 [HEREINAFTER REFERRED TO AS 'THE ACT' FOR SHORT] AT TOTAL INCOME OF RS. 19 ,50, 623 / - . W HILE DOING SO , THE A SSESSING O FFICER HAD MADE ADDITION OF RS. 17 , 67 , 605 / - ON THE GROUND THAT THE ASSESSEE HAD FAILED TO SUBSTANTIATE SOURCE OF INVESTMENT IN ACQUISITION OF SHARES IN RESPECT OF WHICH THE APPELLANT HAD SHOWN THE PROFIT ON ACCOUNT OF SALE . IN THE ABSENCE OF PLAUSIBLE EXPLANATION BY THE APPELLANT , THE A SSESSING O FFICER CONCLUDED THAT THE APPELLANT WAS INDULGING IN TRANSACTIONS OF BOGUS PURC HASE AND SALE OF SHARES BUT ARE ONLY IN THE NATURE OF ACCOMMODA TIVE ENTRIES WITH M/S. MAHASAGAR GROUP . 4. BEING AGGRIEVED, AN APPEAL WAS PREFERRED BEFORE THE LD.CIT(A) WHO , VIDE IMPUGNED ORDER , CONFIRMED THE ACTION OF THE ASSESSING O FFICER. 5. BEING AGGRIEVED, ASSESSEE IS BEFORE US IN THE PRESENT APPEAL. ITA NO . 1467 /BANG/20 18 PAGE 3 OF 3 6. WE HEARD RIVAL SUBMISSIONS AND PERUSED MATERIAL ON RECORD. W E FIND THAT THE ENTIRE ASSESSMENT IS BASED ON THE STATMENT OF ONE M R. MUKESH CHOKSI WHO , APPEA RS TO HAVE STATED THAT HE IS IN DULGING IN THE BUSINESS OF PROVIDING ACCOMMODAT IVE ENTRIES. FROM THE PERUSAL OF THE ASSESSMENT RECORDS , IT IS CLEAR THAT THE IMPUGNED TRANSACTION IS ALSO STATED TO BE WITH SAID MR. CHOKSI. WE FIND THAT THE STATEMENT OF MR. CHOKSI HAS NEVER BEEN PROVIDED TO THE APPELLANT AND NO T EVEN OPPORTUNITY OF CROSS EXAMINATION WAS GIVEN TO THE APPELLANT. T HEREFORE , WE DEEM IT FIT TO REMAND THE MATTER BACK TO THE FILE OF THE A SSESSING O FFICER FOR DE NOVO ASSESSMENT AFTER GIVING AN OPP ORTUNITY OF BEING HEARD TO THE APPELLANT. 7. IN THE RESULT THE APPEAL FILE D BY THE ASSESSEE IS PARTLY ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 8 TH JUNE, 2018 SD/ - SD/ - (SUNIL KUMAR YADAV) (INTURI RAMA RAO) JUDICIAL MEMBER ACCOUNTANT MEMBER PLACE : BENGALURU. D A T E D : 08/06/2018 SRINIVASULU, SPS COPY TO : 1 APPELLANT 2 RESPONDENT 3 CIT(A) 4 CIT 5 DR, ITAT, BANGALORE. 6 GUARD FILE BY ORDER SENIOR PRIVATE SECRETARY INCOME - TAX APPELLATE TRIBUNAL BANGALORE