ITO, Dharmapuri V. Dr.G.Ramasamy, Dharmapuri

ITA 1473/CHNY/2015

• Counselvise Citation: 147321714 RSA 2015
• Duration Of Justice: 2 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-09-2015
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2011-2012
• Appeal Filed On: 16-06-2015
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: A V SREEKANTH
• Assessee Lawyers: T S LAKSHMIVENKATARAMAN

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, CHENNAI . . . , . !' , $ % BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER ./ ITA NO.1473/MDS/2015 ' (' / ASSESSMENT YEAR : 2011-12 THE INCOME TAX OFFICER, WARD 1, DHARMAPURI, 2 ND FLOOR, KRN COMPLED, K-THEATRE ROAD, KRISHNAGIRI 635 001. V. DR. G. RAMASAMY, NO.5/186-D, SOODAMANI STREET, DHARMAPURI 636 701. PAN : AASPR 2613 N (*+/ APPELLANT) (,-*+/ RESPONDENT) *+ . / / APPELLANT BY : SH. A.V. SREEKANTH, JCIT ,-*+ . / / RESPONDENT BY : SH.T.S.LAKSHMIVENKATARAMAN FCA 0 . 1$ / DATE OF HEARING : 18.08.2015 2!( . 1$ / DATE OF PRONOUNCEMENT : 04.09.2015 / O R D E R PER N.R.S. GANESAN, JUDICIAL MEMBER: THIS APPEAL OF THE REVENUE IS DIRECTED AGAINST T HE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS)-18, CHENNA I, DATED 25.02.2015 AND PERTAINS TO ASSESSMENT YEAR 2011-12. 2 I.T.A. NO.1473/MDS/15 2. SHRI A.V. SREEKANTH, THE LD. DEPARTMENTAL REPRES ENTATIVE, SUBMITTED THAT DURING THE COURSE OF APPELLATE PROCE EDINGS, THE ASSESSEE FILED CASH FLOW STATEMENT OF THE GROUP CON CERN WHICH WAS NOT AVAILABLE BEFORE THE ASSESSING OFFICER. ACCORD ING TO THE LD. D.R., THE CIT(APPEALS) WITHOUT GIVING OPPORTUNITY T O THE ASSESSING OFFICER TO EXAMINE THE CASH AVAILABILITY OF THE GRO UP CONCERN, ALLOWED THE CLAIM OF THE ASSESSEE. THE CIT(APPEALS ) ALSO HAS NOT VERIFIED THE AVAILABILITY OF CASH BY HIMSELF. THE CASH FLOW STATEMENT, WHICH THE ASSESSEE FILED BEFORE THE ASSESSING OFFIC ER SHOWS ADDITIONAL INCOME WITH AN INTENTION TO COVER THE DE FICIT. HOWEVER, THE INCOME OF THE GROUP CONCERN WAS DISCLOSED BY WA Y OF CASH FLOW STATEMENT BEFORE THE CIT(APPEALS). THEREFORE, AN O PPORTUNITY SHOULD BE GIVEN TO THE ASSESSING OFFICER TO EXAMINE THE AVAILABILITY OF FUNDS. 3. ON THE CONTRARY, SHRI T.S. LAKSHMIVENKATARAMAN, THE LD. REPRESENTATIVE FOR THE ASSESSEE, SUBMITTED THAT THE CASH FLOW STATEMENT WAS VERY MUCH AVAILABLE WITH THE ASSESSIN G OFFICER. THE ASSESSING OFFICER HAS MADE AN ADDITION OF ` 20,97,100/- BEING THE CASH SEIZED AT THE TIME OF SEARCH ON 22.09.2010. T HE GROUP OF THE ASSESSEES FAMILY CONSISTED OF THREE PARTNERSHIP FI RMS AND FIVE INDIVIDUAL ASSESSEES. ALL OF THEM WERE BROUGHT WIT HIN THE AMBIT OF 3 I.T.A. NO.1473/MDS/15 SEARCH PROCEEDINGS. ACCORDING TO THE LD. REPRESENT ATIVE, ALL THE FAMILY MEMBERS, THREE PARTNERSHIP FIRMS AND FIVE IN DIVIDUAL CASES ARE ASSESSED TO TAX AND THE CASH FLOW STATEMENT FIL ED BY THE ASSESSEE DISCLOSES THE AVAILABILITY OF CASH TO THE EXTENT OF ` 47,07,600/-. THE ASSESSEE, BEING THE ELDEST MEMBER OF FAMILY, WAS IN-CHARGE OF THE ACTIVITIES OF THE GROUP. REFE RRING TO THE PAPER- BOOK, THE LD. REPRESENTATIVE SUBMITTED THAT THE CAS H AVAILABLE IN THE PARTNERSHIP FIRMS AND INDIVIDUAL ASSESSMENTS OF THE FAMILY MEMBERS WAS TO THE EXTENT OF ` 47,07,600/-. 4. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS ON EITH ER SIDE AND PERUSED THE RELEVANT MATERIAL ON RECORD. THE ASSES SEES CLAIM WAS THAT THERE ARE THREE PARTNERSHIP FIRMS AND FIVE IND IVIDUAL ASSESSEES IN THEIR GROUP. THE ASSESSEE, BEING THE ELDEST MEM BER OF THE FAMILY, WAS MANAGING THE AFFAIRS OF THE ENTIRE GROU P. THE CASH FLOW STATEMENT AS ON 22.09.2010, FILED BEFORE THE CIT(AP PEALS), SHOWS THE AVAILABILITY OF CASH AS ` 47,07,600/-. THE GENUINENESS AND OTHERWISE OF THE AVAILABILITY OF CASH AS ON 22.09.2 010 WAS NOT EXAMINED EITHER BY THE ASSESSING OFFICER OR BY THE CIT(APPEALS). THE CIT(APPEALS), SIMPLY RELYING UPON THE CASH FLOW STATEMENT FILED BY THE ASSESSEE IN RESPECT OF THEIR GROUP, ALLOWED THE CLAIM OF THE ASSESSEE TO THE EXTENT OF ` 20,97,100/-. THIS TRIBUNAL IS OF THE 4 I.T.A. NO.1473/MDS/15 CONSIDERED OPINION THAT THE GENUINENESS OF THE AVAI LABILITY OF FUNDS AS CLAIMED BY THE ASSESSEE HAS TO BE EXAMINED BY TH E ASSESSING OFFICER. THEREFORE, THE ORDERS OF THE LOWER AUTHOR ITIES ARE SET ASIDE AND THE ISSUE OF ADDITION OF ` 20,97,100/- IS REMITTED BACK TO THE FILE OF THE ASSESSING OFFICER. THE ASSESSING OFFICER SH ALL RE-EXAMINE THE ISSUE AFRESH IN THE LIGHT OF THE CASH FLOW STAT EMENT FILED BY THE ASSESSEE AS ON 22.09.2010 AND THEREAFTER, DECIDE TH E ISSUE IN ACCORDANCE WITH LAW AFTER GIVING REASONABLE OPPORTU NITY TO THE ASSESSEE. 5. IN THE RESULT, THE APPEAL OF THE REVENUE IS ALLO WED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED ON 4 TH SEPTEMBER, 2015 AT CHENNAI. SD/- SD/- (. !' ) ( . . . ) (A. MOHAN ALANKAMONY) (N.R.S. GANESAN) $ / ACCOUNTANT MEMBER /JUDICIAL MEMBER /CHENNAI, 4 /DATED, THE 4 TH SEPTEMBER, 2015. KRI. . ,156 76(1 /COPY TO: 1. *+ /APPELLANT 2. ,-*+ /RESPONDENT 3. 0 81 () /CIT(A)-18, CHENNAI 4. 0 81 /CIT, CENTRAL-II, CHENNAI 5. 69 ,1 /DR 6. :' ; /GF.