Smt.Rekha Ramamurthi Achyutuni, Bangalore V. The Income TAx Officer Ward-6(3)(1), Bangalore

ITA 1513/BANG/2018

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 3345 (ITAT-BANGALORE)
• Duration Of Justice: 1 year(s) 9 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-03-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Next Hearing Date: 27-02-2020
• Assessment Year: 2013-2014
• Appeal Filed On: 09-05-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R PREMI
• Assessee Lawyers: KAVITHA
• Keywords: Principle of natural justice; Set aside; Capital Gains
• Section: 143(3); 142(1); 250; 201; 143(2); 13

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL BANGALORE BENCHES C BENCH: BANGALORE BEFORE SHRI A.K. GARODIA , ACCOUNTANT MEMBER AND SHRI PAVAN KUMAR GADALE, JUDICIAL MEMBER ITA NO. 1 5 13 /BANG/2018 (ASSESSMENT YEAR: 201 3 - 14 ) MS. REKHA RAMAMURTHI ACHYUTUNI, NO.370, 11 TH CROSS, 2 ND BLOCK, RT NAGAR, BANGALORE - 560 032 .APPELLANT PAN AKBPR 2611M VS. INCOME TAX OFFICER , WARD 6(3)(1), BANGALORE. RESPONDENT. ASSESSEE BY: S MT. KAVITHA, C.A. REVENUE BY: S MT. R. PREMI, JCIT (D.R) DATE OF HEARING : 27.02 .20 20 DATE OF PRONOUNCEMENT : 06 .03 .20 20 O R D E R PER SHRI PAVAN KUMAR GADALE, JM : THE ASSESSEE HAS FILED AN APPEAL AGAINST THE ORDER OF COMMISSIONER OF INCOME TAX (APPEALS) - 6, BANGALORE PASSED UNDER SECTION 143(3) AND 250 OF THE INCOME TAX ACT, 1961 ('THE ACT'). 2. THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL : 2 ITA NO. 1513/BANG/2018 3 ITA NO. 1513/BANG/2018 4 ITA NO. 1513/BANG/2018 3. THE BRIEF FACTS OF TH E CASE ARE THAT THE ASSESSEE IS A CITIZEN OF USA AND WORKING IN USA ALONG WITH HER SPOUSE AND OFFERING THE INCOME EAR NED IN USA FOR TAXATION. THE ASSESSEE HAS MADE INVESTMENT S IN USA ALONG WITH HER HUSBAND IN FINANCIAL INSTRUMENTS AND CONTINUES TO HOLD SUCH INVESTMENTS . ALL THE INVESTMENTS ARE OUT OF THE INCOME EARNED IN USA AND AFTER RETURNING TO INDIA, THE ASSESSEE HAS FILED INCOME TAX RETURN IN RESPECT OF INCOME EARNED IN IN DIA . THE RETURN OF 5 ITA NO. 1513/BANG/2018 INCOME WAS FILED ON 30.07.2013 WITH TOTAL INCOME OF RS.6,61,840 / - . THE CASE WAS SELECTED FOR SCRUTINY UNDER CASS TO VERIFY THE BALANCES IN FOREIGN BANK ACCOUNTS. ACCORDINGLY NOTICE UNDER SECTION 143(2) AND 142(1) OF THE ACT WERE ISSUED . IN COMPLIANCE, THE LEARNED AUTHORIZED REPRESENTATIVE APPEARED FROM TIME TO TIME AND SUBMITTED THE DETAILS. ON VERIFICATION, THE ASSESSING OFFICER FOUND THAT THE ASSESSEE HAS MAINTAINED VARIOUS BANK ACCOUNTS IN FOREIGN COUNTRIES AND USA. THE ASSESSING OFF ICER FOUND THAT THERE ARE DIFFERENCE S IN FOREIGN ASSETS/ACCOUNTS/BROKERAGE AS COMPARED TO PREVIOUS YEAR AND CALLED FOR EXPLANATION S . THE ASSE SSING OFFICER DEALT ON FOREIGN BANK ACCOUNTS AND WAS NOT SATISFIED WITH THE EXPLANATIONS IN RESPECT OF DIFFERENCE OF RS.52 , 54,672 / - IN ACCOUNTS , WHICH COULD NOT BE RECONCILED . FURTHER TAXED THE DIVIDEND, INTEREST INCOME AND SHORT TERM CAPITAL GAINS EARNED OUTSIDE INDIA AGGREGATING TO RS10,08,076/ - AND ALSO CASH DEPOSITS IN HDFC BANK TO THE EXTENT RS3 LAKH S COULD NOT BE SUPPORTED WITH EVIDENCES ON NATURE AND SOURCE. THE AO FINALLY ASSESSED THE TOTAL INCOME OF RS.72,37,130 / - AND PASSED THE ORDER UNDER SECTION 14 3(3) OF THE ACT DT.30.03.2016. AGGRIEVED BY THE ORDER, THE ASSESSEE HAS FILED AN APPEAL WITH THE C IT(APPEALS). THE CIT(APPEALS) CONSIDERING THE GROUNDS OF APPEAL, FINDINGS OF THE ASSESSING OFFICER HAS CONCURRED WITH THE ACTION OF THE ASSESSING OFFICER AND DI SMISSED THE ASSESSEE'S APPEAL. AGGRIEVED BY THE ORDER OF CIT(APPEALS), THE ASSESSEE HAS FILED AN APPEAL WITH THE TRIBUNAL. 6 ITA NO. 1513/BANG/2018 4. AT THE TIME OF HEARING, THE LEARNED AUTHORIZED REPRESENTATIVE SUBMITTED THAT THE CIT ( APPEALS) HAS NOT CONSIDERED THE SUBMISSIONS IN RESPECT OF DIFFERENCE IN FOREIGN ACCOUNTS AND EXPLANATIONS ON OTHER ADDITIONS FIL ED IN THE APPELLATE PROCEEDINGS . FURTHER, THE LDAR SUBSTANTIATED HER ARGUMENTS WITH THE SUBMISSIONS AND DOCUMENTARY EVIDENCES IN SUPPORT OF CLAIM IN PAPER BOOK FROM PAGES 10 TO 379 INCLUDING THE STATEMENT OF FOREIGN INVESTMENT S , HDFC BANK ACCOUNTS , U S TAX RETURNS AND SUBMISSIONS IN ASSESSMENT PROCEEDINGS AND PRAYED FOR ALLOWING THE APPEAL . CONTRA, THE LD. DR RELIED ON THE ORDERS OF THE CIT(APPEALS). 5. WE HEARD THE RIVAL CONTENTIONS AND PE RUSED THE MATERIAL ON RECORD. THE SOLE MATRIX OF THE DIS PUTED ISSUE ENVISAGED BY THE LD.AR THAT THE CIT ( APPEALS) HAS NOT CONSIDERED THE ASSESSEE SUBMISSIONS IN RESPECT OF FOREIGN INVESTMENT S, HDFC BANK ACCOUNTS AND DETAILS OF SOURCES FILED BEFORE THE LOWER AUTHORITIES, WHICH ARE VITAL IN DE CISION MAKING. THE LD.AR REFERRED TO THE PAGE 8 TO PAGE 379 OF THE PAPER BOOK TO SUBSTANTIATE HER STAND WITH EVIDENCE OF STATEMENTS OF FOREIGN INVESTMENT, BANK STATEMENTS, FOREIGN INVESTMENT ACC O UNTS, US TAX RETURNS AND IT RETURNS FOR EARLIER ASSESSMENT YEARS AND SUBMISSION O N MOVEMENT OF FOREIGN INVESTMENT AND SUBMISSIONS MADE BEFORE THE ASSESSING AUTHORITY . WE, FOUND THE CIT(APPEALS) IN HIS ORDER HAS CONSIDERED THE GROUNDS OF APPEAL BUT THER E ARE NO OBSERVATIONS OR FINDINGS IN RESPECT OF THE DETAILS FILED BY THE ASSES SEE . WE ARE OF THE OPINION THAT THE CIT(APPEALS) ORDER IS CRYPTIC , ACCORDINGLY, C ONSIDERING THE PRINCIPLES OF 7 ITA NO. 1513/BANG/2018 NATURAL JUSTICE, WE SET ASIDE THE ORDER OF THE CIT(APPEALS) AND RESTORE T HE ENTIRE DISPUTED ISSUE ALONG WITH EVIDENCES TO THE FILE OF CIT(APPEALS) TO ADJUDICATE AFRESH ON MERITS AND PASS A SPEAKING AND REASONED ORDER. FURTHER THE ASSESSEE SHOULD BE PROVIDED WITH ADEQUATE OPPORTUNITY OF HEARING AND SHALL CO - OPERATE IN SUBMITTING THE INFORMATION FOR EARLY DISPOSAL OF THE APPEAL AND ALLOW THE GROUNDS O F APPEAL OF THE ASSESSEE FOR STATISTICAL PURPOSES. 6. IN THE RESULT, THE ASSESSEE'S APPEAL IS ALLOWED FOR STATISTICAL PURPOSES. PRONOUNCED IN THE OPEN COURT ON THE DATE MENTIONED ON THE CAPTION PAGE. S D / - S D / - ( A.K. GARODIA ) (PAVAN KUMAR GADALE) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 0 6 .03 . 20 20 . *REDDY GP COPY TO 1. THE APPELLANT 2. THE RESPONDENT 3. CIT (A) 4. PR. CIT 5. DR, ITAT, BANGALORE. 6. GUARD FILE BY ORDER ASSISTANT REGISTRAR INCOME - TAX APPELLATE TRIBUNAL BANGALORE