M/s Kenkere Infra Tech , Bangalore V. Income tax Officer Ward-5(2)(4), Bangalore

ITA 1470/BANG/2017

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 8574 (ITAT-BANGALORE)
• Duration Of Justice: 2 year(s) 6 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-01-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 16-01-2020
• Assessment Year: 2009-2010
• Appeal Filed On: 23-06-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: MANJEET SINGH
• Keywords: Unexplained cash credit; Set aside
• Section: 263; 144

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH : BANGALORE BEFORE SHRI B.R BASKARAN , ACCOUNTANT MEMBER AND SMT. BEENA PILLAI, JUDICIAL MEMBER ITA NO.1470/BANG/2017 ASSESSMENT YEAR : 2009-10 KENKERE INFRA TECH, NO.112C, 2 ND FLOOR, IBH PRAKASHANA, 5 TH MAIN, NEW JAYADEVA HOSTEL, COMMERCIAL COMPLEX, GANDHINAGAR, BENGALURU-560 009. PAN AAIFK 9825 H VS. THE INCOME-TAX OFFICER, WARD-5(2)(4), BENGALURU. APPELLANT RESPONDENT REVENUE BY : NONE ASSESSEE BY : SHRI MANJEET SINGH, ADDL. CIT (DR) DATE OF HEARING : 16.01.2020 DATE OF PRONOUNCEMENT : 17.01.2020 O R D E R PER B.R BASKARAN, ACCOUNTANT MEMBER : THE APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAIN ST THE ORDER DATED 24/3/2017 PASSED BY LD CIT(A)-5, BENGALURU AN D IT RELATES TO THE ASST. YEAR 2009-10. 2. IN THE GROUNDS URGED BY THE ASSESSEE, THE ADDITI ON OF RS.2,31,41,000/- RELATING TO UNEXPLAINED CREDIT IN BANK ACCOUNT IS BEING CONTESTED. ITA NO.1470 /BANG/2017 PAGE 2 OF 5 3. NONE APPEARED ON BEHALF OF THE ASSESSEE, EVEN TH OUGH THE ADJOURNMENT WAS GRANTED ON THE EARLIER OCCASION AT THE REQUEST OF THE ASSESSEE. HENCE WE PROCEED TO DISPOSE OF THE A PPEAL EX-PARTE, WITHOUT THE PRESENCE OF ASSESSEE. 4. WE HEARD LD DR AND PERUSED THE RECORD. THE ASSE SSEE IS ENGAGED IN THE BUSINESS OF TRADING IN IRON ORE. TH E PRESENT ASSESSMENT WAS COMPLETED BY THE AO U/S 144 R.W.S. 2 63 OF THE ACT IN PURSUANCE OF REVISION ORDER PASSED BY LD ADMINIS TRATIVE COMMISSIONER. IT WAS NOTICED THAT THE ASSESSEE HAS DEPOSITED A SUM OF RS.2,31,41,000/- INTO ITS BANK ACCOUNT AND T HE SAME CAME TO BE EXAMINED BY THE ASSESSING OFFICER AS PER THE DIRECTIONS GIVEN IN REVISION ORDER. THE AO ASKED THE ASSESSEE TO EX PLAIN THE SOURCES FOR MAKING DEPOSITS. SINCE NO EXPLANATION WAS FORT HCOMING FROM THE ASSESSEE, THE AO ADDED THE ABOVE SAID AMOUNT TO THE TOTAL INCOME OF THE ASSESSEE. BEFORE LD CIT(A), THE ASSE SSEE SUBMITTED THAT IT HAS FURNISHED CASH BOOK EXTRACTS TO THE AO AND HENCE DEPOSITS STAND FULLY EXPLAINED. THE ASSESSEE ALSO FURNISHED COPIES OF CASH BOOK EXTRACT BEFORE LD CIT(A). HOWEVER LD CIT(A) TOOK THE VIEW THAT THE ASSESSEE HAS NOT TAKEN A SPECIFIC GRO UND IN RESPECT OF THIS ADDITION AND FURTHER SINCE THE LD ADMINISTRATI VE CIT, IN THE PROCEEDINGS U/S 263 OF THE ACT, HAS CONSIDERED THE CASH BOOK,HE CONFIRMED THE ADDITION MADE BY THE AO. 6. FROM THE GROUNDS OF APPEAL FILED BY THE ASSESSEE BEFORE LD CIT(A), WE NOTICED THAT THE ASSESSEE HAS RAISED A S PECIFIC GROUND IN RESPECT OF THIS ADDITION IN PARA 2.1 OF GROUNDS OF APPEAL, WHICH READS AS UNDER:- ITA NO.1470 /BANG/2017 PAGE 3 OF 5 2.1 IN ANY CASE, THE LD AO HAS ERRED IN MAKING ON ADDITION OF RS.2,31,41,000/- AS UNEXPLAINED CREDIT IN BANK ACCOUNT AND THE LD CIT(A) HAS ERRED IN CONFIRMING THE SAME. 7. HENCE IT IS NOTICED THAT THE ASSESSEE HAS RAISED A SPECIFIC GROUND BEFORE LD CIT(A). FURTHER IN OUR VIEW, SUBM ISSION OF CASH BOOK EXTRACTS BEFORE ADMINISTRATIVE CIT IN THE REVI SION PROCEEDINGS DONE U/S 263 OF THE ACT WOULD NOT BAR THE LD CIT(A) TO EXAMINE THE SAME WHILE ADJUDICATING THE ISSUE RAISED BEFORE HIM . ACCORDINGLY WE ARE OF THE VIEW THAT THIS ISSUE REQUIRES FRESH E XAMINATION AT THE END OF LD CIT(A). ACCORDINGLY WE SET ASIDE THE ORD ER PASSED BY THE LD CIT(A) ON THIS ISSUE AND RESTORE THE SAME TO HIS FILE FOR ADJUDICATING IT AFRESH AFTER PROVIDING ADEQUATE OPP ORTUNITY OF BEING HEARD TO THE ASSESSEE. 8. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 17TH JANUARY, 2019. SD/ - (BEENA PILLAI) JUDICIAL MEMBER SD/ - (B.R BASKARAN) ACCOUNTANT MEMBER BANGALORE, DATED, 17 TH JANUARY, 2019. / VMS / ITA NO.1470 /BANG/2017 PAGE 4 OF 5 COPY TO: 1. THE APPLICANT 2. THE RESPONDENT 3. THE CIT 4. THE CIT(A) 5. THE DR, ITAT, BANGALORE. 6. GUARD FILE BY ORDER ASST. REGISTRAR, ITAT, BANGALORE.