Anuradha Vasant Datar, Pune V. Income-tax Officer,

ITA 1551/PUN/2015

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 9467 (ITAT-PUNE)
• Duration Of Justice: 1 year(s) 5 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-05-2017
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Next Hearing Date: 22-05-2017
• Assessment Year: 2005-2006
• Appeal Filed On: 30-11-2015
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: ANIL KUMAR CHAWARE
• Keywords: Source of fund
• Section: 234B; 144

Judgement Text

- IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH SMC, PUNE , BEFORE MS. SUSHMA CHOWLA, JM . / I TA NO. 1551/PUN/2015 / ASSESSMENT YEAR : 2005 - 06 ANURADHA VASANT DATAR, B - 002, SPRINGFIELDS, OFF. GANDHI BHAVAN ROAD, KOTHRUD, PUNE - 411029 PAN : AMIPD3119K ....... / APPELLANT / V/S. INCOME TAX OFFICER, CIB - 3 PUNE. PUNE. / RESPONDENT A PPELLANT BY : SHRI M.K KULKARNI RE SPONDENT BY : SHRI ANIL KUMAR CHAW A RE / DATE OF HEARING : 22.05.2017 / DATE OF PRONOUNCEMENT : 26. 05.2017 / ORDER PER SUSHMA CHOWLA , JM THIS APPEAL FILED BY THE ASSESSEE IS AGAINST THE ORDER OF THE CIT(A) - 13 , PUNE , DATED 17.09.2015 RELATING TO ASSESSMENT YEAR 2005 - 06 AGAINST THE ORDER PASSED UNDER SECTION 144 OF THE INCOME TAX ACT, 1961 ( IN SHORT THE ACT). 2 ITA NO. 1551/PUN/2015 A.Y. 2005 - 06 2. THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL: - 1) ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW THE LD. CIT(A) WAS NOT JUSTIFIED IN DISMISSING THE APPEAL OF THE ASSESSEE CONFIRMING THE ORDER OF THE A.O PASSED UNDER SECTION 144 OF THE ACT AND IT BE HELD THAT THE ASSESSMENT ORDER HAVING NOT COMPLETED WITHIN THE LIMITATION WAS BARRED BY LIMITATION. 2) ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW THE LD. CIT(A) WAS NOT JUSTIFIE D IN CONFIRMING THE ORDER OF THE A.O WHICH ORDER ITSELF WAS ILLEGAL AND WITHOUT JURISDICTION. THE ORDER OF THE A.O BE CANCELLED BY SETTING ASIDE THE ORDER OF LD. CIT(A). 3) ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW THE ADDITION MADE BY A.O OF R S. 6,00,000/ - AND CONFIRMED BY LD. CIT(A) IS ILLEGAL AND WITHOUT JURISDICTION. IT BE QUASHED. 4) ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW THE LEVY OF INTEREST U/S 234B AND 234C IS NOT JUSTIFIED. 5) THE APPELLANT CRAVES TO LEAVE, ADD/ AMEND OR ALTER ANY OF THE ABOVE GROUNDS OF APPEAL. 3. THE GROUND OF APPEAL NO S . 1 AND 2 RAISED BY THE ASSESSEE ARE NOT PRESSED. HENCE, THE SAME ARE DISMISSED AS NOT PRESSED. 4. THE ONLY ISSUE RAISED IN THE GROUND OF APPEAL NO. 3 IS AGAINST THE ADDITION OF RS. 6,00,000/ - . 5 . THE LD. AR FOR THE ASSESSEE POINTED OUT THAT THE SAID INVESTMENT IS MADE IN THE JOINT NAMES OF THE ASSESSEE AND MR. MILIND VASANT DATAR. HE FAIRLY CONCEDED THAT THE ASSESSEE HAD NOT APPEARED BEFORE THE ASSESSING OFFICER AND HENCE, NO EXPLANA TION WA S FILED. HE FURTHER STATED THAT WHERE THE INVESTMENT WAS MADE IN JOINT NAMES THEN TOTAL INVESTMENT CANNOT BE ADDED IN THE HANDS OF THE ASSESSEE. 6 . THE LD. DR FOR THE REVENUE PLACED RELIANCE ON THE ORDER S OF THE AUTHORITIES BELOW. 7 . ON PERUSAL OF THE RECORD AND AFTER HEARING BOTH THE AUTHORIZED REPRESENTATIVE S, THE ISSUE WHICH ARISES AS PER GROUND NO. 3 IS AGAINST ADDITION 3 ITA NO. 1551/PUN/2015 A.Y. 2005 - 06 OF RS. 6,00,000/ - . THE ASSESSING OFFICER HAD RECEIVED INFORMATION THAT ASSESSEE HAD MADE INVESTMENT WITH UTI BANK LTD. TO THE EXTENT OF RS. 6,00,000/ - . THE ASSESSING OFFICER HAD ISSUED NOTICE TO THE ASSESSEE. HOWEVER, IN ABSENCE OF ANY EXPLANATION FILED BY THE ASSESSEE REGARDING SOURCES OF INCOME FOR INVESTMENT IN BOND/DEBENTURES, THE TOTAL INVESTMENT OF RS. 6,00,0 00/ - WAS TREATED AS UNEXPLAINED AND ADDED AS INCOME OF THE ASSESSEE. THE ASSESSEE HAS FILED ON RECORD THE PROOF OF THE SAID INVESTMENT WHICH IS IN THE JOINT NAMES OF THE ASSESSEE AND MR. MILIND VASANT DATAR. THE TOTAL INVESTMENT OF RS. 6,00,000/ - MADE ON 1 5.09.2004. THE PLEA OF THE ASSESSEE HAS MERITS BECAUSE IT IS A JOINT INVESTMENT HELD BY THE ASSESSEE WITH ANOTHER PERSON. ACCORDINGLY, THE TOTAL INVESTMENT CANNOT BE ATTRIBUTED TO THE ASSESSEE WITHOUT SUFFICIENT PROOF AGAINST THE ASSESSEE. 8 . IN THE TOTA LITY OF THE FACTS AND CIRCUMSTANCES, IT IS DEEM ED FIT TO RESTORE THE ISSUE BACK TO THE FILE OF THE ASSESSING OFFICER WHO SHALL DECIDE THE SAME IN ACCORDANCE WITH THE FACTS AND LAW. THE ASSESSEE IS DIRECTED TO FURNISH ACCORDANCE WITH THE FACTS AND LAW. THE ASSESSEE IS DIRECTED TO FURNISH NECESSARY EVIDENCE OF SOURCES OF INCOME FOR INVESTMENT AND ALSO JOINT OWNERSHIP OF THE SECURITY BEFORE THE ASSESSING OFFICER. THE ASSESSING OFFICER SHALL AFFORD REASONABLE OPPORTUNITY OF HEARING TO THE ASSESSEE. T HE GROUND OF APPEAL NO. 3 RAISED BY THE ASSESSEE IS THUS ALLOWED FOR STATISTICAL P URPOSES . 9 . IN THE RESULT, THE APPEAL OF THE ASSESSEE IS PARTLY ALLOWED . ORDER PRO NOUNCED ON 26 TH DAY OF MAY , 201 7 . SD/ - ( SUSHMA CHOWLA) / JUDICIAL MEMBER / PUNE; / DATED : 26 TH MAY , 2017 . SB 4 ITA NO. 1551/PUN/2015 A.Y. 2005 - 06 / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT. 2. / THE RESPONDENT. 3. THE CIT (APPEALS) - 13 , PUNE 4. THE PR. CIT - 2, PUNE. 5 . , , - , / DR, ITAT, SMC BENCH, PUNE. 6. / GUARD FILE. // TRUE COPY // / BY ORDER, /ASSISTANT REGISTRAR , / ITAT, PUNE 5 ITA NO. 1551/PUN/2015 A.Y. 2005 - 06