Shri Bengali Prasad, V. DCIT,

ITA 156/RAN/2014

• Counselvise Citation: [2014] 120 COUNSELVISE.COM (IT) 8586 (ITAT-RANCHI)
• Duration Of Justice: 7 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-12-2014
• Appeal Filed By: Assessee
• Bench Allotted: DB
• Assessment Year: 2009-2010
• Appeal Filed On: 25-04-2014
• Court: TRIBUNAL
• Department Lawyers: DEEPAK ROSHAN SENIOR
• Assessee Lawyers: M K CHOUDHARY S LD ARS; SSH S K PODDAR
• Keywords: Unexplained investment; Principle of natural justice; Onus to prove

Judgement Text

INCOME TAX APPELLATE TRIBUNAL, CIRCUIT BENCH, RANCHI BEFORE HON'BLE SHRI H.L. KARWA, PRESIDENT , AND HON'BLE SHRI B.R. BASKARAN, ACCOUNTANT MEMBER ITA NO . 1 56 /RAN/2014 A.Y 200 9 - 10 SHRI BENGALI PRASAD VS. DY. COMMISSION ER OF INCOME - TAX PAN: AINPP3529J C.C - 1, RANCHI [ APPELLANT ] [ RESPONDENT ] FOR THE APPELLANT : S/SH. S. K PODDAR & M.K. CHOUDHARY, ADVOCATES, LD.ARS FOR THE RESPONDENT /ASSESSEE : SHRI DEEPAK ROSHAN, SENIOR S.C/LD.DR DATE OF HEARING : 0 4 - 12 - 2014 DATE OF PRONOUNCEMENT: 0 4 - 12 - 2014 ORDER SHRI B.R. BASKARAN, ACCOUNTANT MEMBER : THE ASSES SEE HAS FILED THIS APPEAL CHALLENGING THE ORDER DATED 25.02.2014 PASSED BY LD CIT(A), JAMSHEDPUR AND IT RELATES TO THE ASSESSMENT YEAR 2009 - 10. THE ASSESSEE IS AGGRIEVED BY THE DECISION OF LD CIT(A) IN CONFIRMING THE ADDITION OF RS.8,44,368/ - RELATING TO UNDISCLOSED INVESTMENT MADE IN PURCHASE OF FLAT . 2. CONSEQUENT TO THE SEARCH OPERATIONS CONDUCTED IN THE HANDS OF SHRI SACHIDANAND PRASADD AND SRI VIJAY PRASAD ON 16.02.2010, THE ASSESSEE WAS ISSUED WITH THE NOTICE U/S 153C OF THE ACT. IN THE STATE MENT TAKEN FROM SHRI SACHIDANAND PRASAD U/S 132(4) OF THE ACT, HE HAD SUBMITTED THAT THE ASSESSEE HEREIN HAS PURCHASED D CHOUDHARY FLAT LG - 6 FOR A CONSIDERATION OF RS.8,44,638/ - . WHEN ENQUIRED ABOUT THE SAME, THE ASSESSEE SUBMITTED THAT HE HAD MADE THE PAYMENTS IN THE IMMEDIATELY PRECEDING THREE YEARS. HOWEVER, THE AO NOTICED THAT THE ASSESSEE DID NOT MAINTAIN CASH BOOK AND ENTIRE PURCHASE CONSIDERATION WAS PAID BY WAY OF CASH. HE FURTHER NOTICED THAT THE ASSESSEE DID NOT HAVE BALANCE SHEET OF THE PREC EDING YEARS. HENCE, THE AO REJECTED THE SUBMISSION OF THE ASSESSEE AND ASSESSED THE PURCHASE VALUE OF FLAT AS UNEXPLAINED INVESTMENT. THE LD CIT(A) ALSO CONFIRMED THE SAID ADDITION. 3. BEFORE US, THE LD A.R REITERATED THE SAME SUBMISSIONS. HE SUBMI TTED THAT THE ASSESSEE HAD ALSO FURNISHED THE DATES OF PAYMENT OF THE ADVANCE AMOUNTS AND THE SAME WAS ALSO INCORPORATED BY LD CIT(A). HE FURTHER SUBMITTED THAT THE ASSESSEE HAS FURNISHED INCOME TAX RETURNS OF EARLIER YEARS AND HAS ALSO PREPARED THE BALAN CE SHEET OF THE IMMEDIATELY PRECEDING THREE YEARS. ON THE CONTRARY, THE LD D.R SUBMITTED THAT THE ASSESSEE DID NOT PRODUCE ANY EVIDENCE TO SUPPORT THE CLAIM OF PAYMENT OF ADVANCE IN THE PRECEDING YEARS. 4. WE ALSO NOTICE THAT THE ASSESSEE HAS ONLY SU BMITTED THE DETAILS OF PAYMENT WITHOUT SUBSTANTIATING THE SAID CLAIM WITH ANY CREDIBLE EVIDENCE. BEFORE US, THE ASSESSEE HAS ALSO NOT FILED COPY OF THE PURCHASE DEED PERTAINING TO THE FLAT OR ANY OTHER EVIDENCES. WE NOTICE THAT THE ASSESSEE ALSO DID NOT FURNISH THE COPY OF PURCHASE DEED AND OTHER EVIDENCES PERTAINING TO THE PAYMENT OF ADVANCE IN THE IMMEDIATELY PRECEDING THREE YEARS. THERE SHOULD NOT BE ANY DISPUTE THAT THE INITIAL BURDEN TO PROVE THE SOURCES FOR THE INVESTMENT MADE LIES UPON THE ASSESSE E. WHEN THESE ASPECTS WERE POINTED OUT, THE LD A.R SUBMITTED THAT THE ASSESSEE MAY BE GIVEN ONE MORE OPPORTUNITY TO FURNISH NECESSARY DETAILS. HENCE, IN THE INTEREST OF NATURAL JUSTICE, WE ARE OF THE VIEW THAT THE ASSESSEE MAY BE PROVIDED WITH ONE MORE O PPORTUNITY. ACCORDINGLY, WE SET ASIDE THE ORDER OF LD CIT(A) AND RESTORE THE MATTER TO THE FILE OF THE ASSESSING OFFICER WITH THE DIRECTION TO EXAMINE THIS ISSUE AFRESH AFTER CONSIDERING THE EXPLANATIONS/INFORMATION THAT MAY BE FURNISHED BY THE ASSESSEE A ND TAKE APPROPRIATE DECISION IN ACCORDANCE WITH THE LAW. 5. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS TREATED AS ALLOWED FOR STATISTICAL PURPOSES. PRONOUNCED ACCORDINGLY ON 0 4 - 12 - 2014 SD/ - SD/ - [ H.L. KARWA ] [ B.R. BASKARAN ] PRESIDENT ACCOUNTANT MEMBER DT. 0 4 - 12 - 2014 PLACE : RANCHI PP, SR. PS COPY OF THE ORDER FORWARDED TO: 1. THE APPELL ANT : 2 THE RESPONDENT: 3..THE CIT, 4.THE CIT(A), 5.DR, ITAT CIRCUIT BENCH, RANCHI 6. GUARD FILE. TRUE COPY, BY ORDER, ASSTT. REGISTRAR 1. DATE OF DICTATION ............. ORDER DRAFTED BY THE MEMBER IN HIS LAP TOP ..................... 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER ........................OTHER MEMBER ............................... 3. DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR. P.S./P.S. ..................... 4. DAT E ON WHICH THE FAIR ORDER IS PLACED BEFORE THE DICTATING MEMBER FOR PRONOUNCEMENT.................................. 0 4 - 12 - 2014 ................................................... 5. DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR. P.S./P.S ................ 6. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK ....................................... 7. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK ......................................... 8. THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT REGISTRAR FOR SIGNATUR E ON THE ORDER ................................................................................................. 9. DATE OF DESPATCH OF THE ORDER ..............................................................