Shri Rupesh Ashokkumar Raval, Ahmedabad V. The Income Tax Officer, Ward-9(1), Ahmedabad

ITA 1533/AHD/2013

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 8658 (ITAT-AHMEDABAD)
• Duration Of Justice: 4 year(s) 3 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-08-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 24-03-2017
• Assessment Year: 2009-2010
• Appeal Filed On: 24-05-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: S N DIVATIA
• Keywords: Unexplained cash credit; Additional evidence
• Section: 143(3); 68

Judgement Text

ITA NO. 1533 /AHD/ 201 3 ASSESSMENT YEAR : 20 0 9 - 10 PAGE 1 OF 4 IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD C BENCH, AHMEDABAD [CORAM: PRAMOD KUMAR , AM AND MAHAVIR PRASAD , JM] ITA NO. 1533 / AHD / 2 0 1 3 ASSESSMENT YEAR: 20 0 9 - 10 RUPESH ASHOKKUMAR RAVAL, ....... ...........APPELLANT PROP. OF RUPESH BUILDERS , 66, HARISIDH PARK SOCIETY, JANTA NAGAR ROAD, GHATLODIA, AHMEDABAD 380 061. [PA N : AATPR 8511 L ] VS. INCOME TAX OFFICER, WARD 9(1) , A HMEDABAD . ............................RESPONDENT APPEARANCES BY: S.N. DIVATIA FOR THE A PPELLANT ALOK KUMAR FOR THE RESPONDENT D ATE OF CONCLUDING THE HEARING : 2 4.07. 2017 DATE OF PRONOUNCING THE ORDER : 29 .08.2017 O R D E R PER PRAMOD KUMAR, AM: 1. BY WAY OF THIS APPEAL, THE ASSESSEE APPELLANT HAS CHALLENGED CORRECTN ESS OF THE ORDER DATED 2 1 ST FEBRUARY 2013, PASSED BY THE L EARNED CIT(A) , AHMEDABAD , IN THE MATTER OF ASSESSMENT UNDER SECTION 143(3) OF THE INCOME TAX ACT , 1961 ( THE ACT HEREINAFTER) FOR THE ASSESSMENT YEAR 2 0 0 9 - 10 . 2. THE SOLITARY SUBSTANTIAL GRIEVANCE OF THE ASSESSEE IS THAT THE LEARNED CIT(A) HAS ERRED IN CONFIRMING THE ADDITION OF RS.15,33,778/ - WHICH WAS ADDED BY THE ASSESSING OFFICER UNDER SECTION 68 OF THE I.T. ACT. ITA NO. 1533 /AHD/ 201 3 ASSESSMENT YEAR : 20 0 9 - 10 PAGE 2 OF 4 3. BRIEFLY STATED, THE FACTS OF THE CASE ARE THAT THE ASSESSEE HAS FIELD HIS RETUR N OF INCOME ON 08.03.2010 DECLARING TOTAL INCOME OF RS.2,92,070/ - . ON SCRUTINY OF THE ACCOUNTS IT REVEALED TO THE ASSESSING O FFICER THAT THE ASSESSEE HAS MADE INVESTMENT AS A CAPITAL INTRODUCTION OF R S.26,50,000/ - IN THE FIRM NAMELY M/S S HAKANT INFRASTRUC TURE. THE ASSESSING OFFICER HAS DIRECTED THE ASSESSEE T O FURNISH SOURCE O F CAPITAL INTRODUCTION IN THE FIRM. I N RESPONSE TO THE QUERY OF THE ASSESSEE, THE ASSESSING O FFICER HAS SUBMITTED THE DETAILS BUT THE ASSESSING OFFICER WAS NOT SATISFIED WITH THE EX PLANATION OF THE ASSESSEE. HE THUS MADE ADDITION OF RS.26,50,000/ - . 4. ON APPEAL, LEARNED CIT(A) HAS PARTLY CONFIRMED THE ADDITION. BEFORE US , LEARNED COUNSEL FOR THE ASSESSEE HAS SUBMITTED THAT LEARNED CIT(A) HAS CONFIRMED ADDITION WITH REGARD TO THE F UN D S OBTAINED FROM THE FOLLOWING PARTIES: - (A) RAMANBHAI OF VAPI RS.2,00,000/ - (B) KALA INFRASTRUCTURE RS.2,44,335/ - (C) BABUBHAI PAT E L & CO. RS.1,35,000/ - (D) B A BUBHAI PATEL & CO. RS.5,00,000/ - (E) OUT OF O/S. L OANS RS.4,54,443/ - 5. THE ASSESSEE HAS FILED AN APPLICATION UNDER RULE 29 OF ITAT RULES FOR PERMISSION TO PRODUCE ADDITIONAL EVIDENCE. IT IS PUT IN THE APPLICATION THAT ADDITION ON ACCOUNT OF UNEXPLAINED CASH CREDIT IN RESPECT OF DIFFERENT PARTIES WERE MADE BECAUSE THE ASSESSEE COULD NOT PRODU CE SEPARATE EVIDENCE. IT HAS BEEN FURTHER POINTED OUT THAT IN THE CASE OF RAMA NBHAI OF VAPI THE ASSESSEE COULD NOT COLLECT THE DETAILS BECAUSE HE WAS OUT OF INDIA A T THE RELEVANT TIME. SIMILARLY , IN THE CASE OF KALA I NFRA STRUCTURE , THE PARTY DID NOT CO - O PERATE AT THE TIME OF ASSESSMENT PROCEEDINGS. HOWEVER, W HEN THE PENALTY PROCEEDINGS WERE COMMENCED THE PARTY HAS GIVEN THE DETAILS AND CO - OPERATED WITH THE ASSESSEE. THESE DETAILS WERE SUBMITTED DURING THE PENALTY PROCEEDINGS. ASSESSEE SOUGHT TO PRODUCE PAGE 1 18 PLACED IN THE PAPER BOOK. ITA NO. 1533 /AHD/ 201 3 ASSESSMENT YEAR : 20 0 9 - 10 PAGE 3 OF 4 6. LEARNED DEPARTMENTAL REPRESENTATIVE, ON THE OTHER HAND , SUBMITTED THAT SUFFICIENT TIME WAS GRANTED TO THE ASSESSEE BY THE A SSESSING OFFICER AND THEREFORE HE SHOULD HAVE SUBMITTED THE DETAILS. 7. WE HAVE HEARD THE RIVAL SUBMISSIONS, PERUSED THE MATERIAL ON RECORD AND DULY CONSIDERED FACTS OF THE CASE IN THE LIGHT OF THE APPLICABLE LEGAL POSITION. A BARE PERUSAL OF R ULE 29 OF ITAT R ULES WOULD INDICATE T HAT PAR T IES TO THE APPEAL ARE NOT ENTITLED TO PRODUCE ADDITIONAL EVIDENCE EITHER ORAL OR DOCUMENTARY BEFORE THE TRIBUNAL, BUT IF THE TRIBUNAL REQUIRES ANY DOCUMENTS TO BE PRODUCED OR ANY WITNESS TO BE EXAMINED TO ENABLE IT TO PASS ORDERS, THEN THE PARTY SHOULD BE PERMITTED TO ADDUCE ADDITIONAL EVIDENCE. A PERUSAL OF T HE ASSESSMENT ORDER WOULD INDICATE THAT NOTICE UNDER SECTION 143(2) OF THE I . T . ACT WAS ISSUED ON 25.08.2010. T HEREAFTER ASSESSMENT PROCEEDINGS WERE DORMANT ALMOST ABOUT 8 MONTHS. THE ASSESSING OFFICER HAS STARTED EFFECTING INVESTIGATION OF THE FACTS VID E SHOW CAUSE NOTICE DATED 04.11.2011. H E PASSED THE ASSESSMENT ORDER ON 19.12.2011. LOOKING TO THESE CIRCUMSTANCES , IT EMERGES THAT ROUGHLY TWO TO THREE MONTHS WERE DEVOTED FOR CARRYING OUT THE INVESTIGATION. SOME TIME IT IS QUITE DIFFICULT FOR AN ASSES SEE TO COLLECT ALL THE DETAILS AND COMPILE THEM. THIS TIME LAPS OF TWO TO THREE MONTHS FOR SUBMITTING COMP L ETE DETAILS AFTER OBTAINING FROM VARIOUS PARTIES OR FINANCIAL INSTITUTIONS IS NOT SUFFICIENT. THEREFORE , WE ALLOW APPLICATION FOR ADMISSION OF ADDI TIONAL EVIDENCE AND SET ASIDE THE ORDERS OF REVENUE AUTHORITIES BELOW. WE RESTORE THE ISSUE REGARDING ADDI TION OF RS.15,33,778/ - REPRESENTING FIVE PARTIES (EXTRACTED SUPRA) TO THE FILE OF ASSESSING O FFICER. T HE ASSESSEE WILL BE AT LIBERTY TO SUBMIT ANY O THER DETAILS IN SUPPORT OF HIS EXPLANATION. THE OBSERVATIONS MADE BY US WILL NOT IMPAIR OR INJURE THE CASE OF THE ASSESSING OFFICER AND WILL NOT CAUSE ANY PREJUDICE TO THE DEFENSE OR EXPLANATIONS OF THE ASSESSEE. ITA NO. 1533 /AHD/ 201 3 ASSESSMENT YEAR : 20 0 9 - 10 PAGE 4 OF 4 8. IN THE RESULT, APPEAL OF THE ASSESSEE I S ALLOWED FOR STATISTICAL PURPOSES. PRONOUNCED IN THE OPEN COURT TODAY ON THE 29 TH DAY OF AUGUST, 2017. SD/ - SD/ - MAHAVIR PRASAD PRAMOD KUMAR (JUDICIAL MEMBER) (ACCOUNTANT MEMBER) AHMEDABAD, THE 29 TH DAY OF AUGUST, 2017 PBN/* COPIES TO: (1) THE APPELLANT (2) THE RESPONDENT (3) COMMISSIONER (4) CIT(A) (5) DEPARTMENTAL REPRESENTATIVE (6) GUARD FILE BY ORDER TRUE COPY ASSISTANT REGISTRAR INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCHES, AHMEDABAD