S.Anjaneyulu, CHENNAI V. DDIT, CHENNAI

ITA 1568/CHNY/2016

• Counselvise Citation: [2017] 130 COUNSELVISE.COM (IT) 8193 (ITAT-CHENNAI)
• Duration Of Justice: 7 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-01-2017
• Appeal Filed By: Assessee
• Bench Allotted: C
• Next Hearing Date: 30-11-2016
• Assessment Year: 2007-2008
• Appeal Filed On: 30-05-2016
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: SHIVA SRINIVAS
• Keywords: Search and seizure
• Section: 32; 147; 131; 68; 246; 69; 145; 27; 148; 54; 37; 6; 56; 263; 63; 132; 12; 28; 144; 10; 90; 154; 2; 11; 15; 271(1)(b); 139; 92

Judgement Text

, C/ SMC , IN THE INCOME TAX APPELLATE TRIBUNAL C/SMC BENCH, CHENNAI . , BEFORE SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER ./ I.T.A.NO.1568 /MDS./2016 ( / ASSESSMENT YEAR :2007-08) SHRI S.ANJANEYULU, BUILDING A, FLAT NO.6,ABHILASHA APARTMENTS, PLOT NO.180, 2 ND MAIN ROAD, AVM AVENUE, VIRUGAMBAKKAM, CHENNAI 600 092. VS. THE DEPUTY DIRECTOR OF INCOME TAX, INTERNATIONAL TAXATION-I, CHENNAI. PAN ADVPA 2612 C ( / APPELLANT ) ( / RESPONDENT ) ! ' # / APPELLANT BY : MR.T.BANUSEKAR, C.A $% ! ' # / RESPONDENT BY : MR.SHIVA SRINIVAS,JCIT, D.R & ' ' ( ) / DATE OF HEARING : 30.11.2016 *+ ' ( ) /DATE OF PRONOUNCEMENT : 09.01.2017 / O R D E R PER CHANDRA POOJARI, ACCOUNTANT MEMBER: THIS APPEAL IS FILED BY THE ASSESSEE, AGGRIEVED B Y THE ORDER OF THE LEARNED COMMISSIONER OF INCOME TAX(A)-16, CHENN AI DATED 29.02.2016 PERTAINING TO ASSESSMENT YEAR 2007-08. ITA NO. /MDS/2016 2 2. THE GRIEVANCE OF THE ASSESSEE IS THAT THE LD.CI T(A) ERRED IN NOT CONSIDERING THE SUBMISSIONS AND EXPLANATION MA DE TOWARDS SOURCE FOR THE INVESTMENT MADE BY MR.A.R.CHOWDARY ON BEHALF OF THE ASSESSEE. 2.1. AT THE TIME OF HEARING, THE ASSESSEE FILED AD DITIONAL GROUNDS AS FOLLOWS:- GROUND NO.4 : FOR THAT THE ASSESSMENT IS VOID, SINCE NO NOTICE U/S.148 AND NO ASSESSMENT U/S.143(3) R.W.S. 147 OF THE I.T.ACT CAN BE ISSUED OR PASSED IN THE FACTS AND CIRCUMSTANCES OF THE CASE. 2.2. THE ASSESSEE FILED A PETITION FOR ADMISSION O F ADDITIONAL GROUND WHEREIN SUBMITTED THAT FAILURE TO RAISE THE ABOVE G ROUND WAS DUE TO INADVERTENCE AND THE OMISSION IS NOT INTENTIONAL AN D PRAYED TO ADMIT THE ADDITIONAL GROUND. 3. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE MATERIAL ON RECORD AND ALSO GONE THROUGH THE ADDITIONAL GROUND. IN OUR OPINION, THE REASON ADVANCED BY THE ASSESSEE FOR NOT RAISING THIS GROUND AT THE EARLIER STAGE IS BONA FIDE AND ACCORDINGLY, PLA CING RELIANCE ON THE JUDGMENT OF SUPREME COURT IN THE CASE OF NATIONAL THERMAL POWER ITA NO. /MDS/2016 3 CO. LTD. V. CIT (229 ITR 283), WHEREIN IT WAS HELD THAT A LEGAL GROUND CAN BE RAISED AT ANY STAGE OF APPEAL. HENCE, WE ADM IT THE ADDITIONAL GROUND FOR ADJUDICATION. 4. THE FACTS OF THE CASE ARE THAT THE ASSESSEE IS A SALARIED EMPLOYEE WORKING ABROAD. THE ASSESSEE HAD INVESTED AN AMOUNT OF ` 80,67,840/- FROM ASSESSMENT YEAR 2008-09 TO 2011-12 TOWARDS PURCHASE OF LAND AND CONSTRUCTION OF APARTMENT AT M ADINAGUDA. A SEARCH AND SEIZURE OPERATIONS WERE CONDUCTED IN THE RESIDENTIAL PREMISES OF G.R.RAVINDRA REDDY HYDERABAD ON 20.10.2 010 AS A PART OF SEARCH OPERATION IN THE CASE OF SR HATCHERIES GR OUP. THE PAPERS RELATING TO INVESTMENT MADE AT MADINAGUDA WERE FOUN D WHERE ASSESSEE ALONG WITH 20 OTHER PARTIES HAD INVESTED I N THIS LAND AND ALSO CONSTRUCTED A RESIDENTIAL APARTMENT ON THAT LA ND. SUBSEQUENTLY, THE CASE OF THE ASSESSEE FOR ASSESSMENT YEAR 2007-0 8 WAS REOPENED BY ISUSE OF NOTICE U/S.148 OF THE AC AS ASSESSEE BI NG ONE OF THE INVESTORS IN THE LAND AT MADINAGUDA. FURHTER NOTICE U/S.143(2) WAS ISUSED AND ASKED TO FURNISH THE DETAILS OF INVESTME NT IN THE LAND AT MADINAGUDA AT 20.10.2010. IN RESPONSE, THE ASSESSE E SUBMITTED ITA NO. /MDS/2016 4 THAT THE TOTAL INVESTMENT WAS MADE IN THE SPAN OF T HEE YEARS AMOUNTING TO ` 80,67,840/-. YEAR WISE INVESTMENT MADE FROM ASSESSEES OWN FUNDS AND INVESTMENT MADE ON BEHALF OF ASSESSEE IS MENTIONED IN THE BELOW TABLE: INVESTMENT MADE FROM ASSESSEES OWN FUND/ON BEHALF OF ASSESSEE F.Y TOWARDS LAND TOWARDS CONSTRUCTION G R RAVINDER REDDY 2007-08 26,67,840 7,00,000 ASSESSEES OWN SAVINGS 2007-08 7,00,000 -- A R CHOWDARY (HUF) 2008-09 -- 10,00,000 G.R RAVINDER REDDY 2009-10 -- 20,00,000 ASSESSEE S OWN SAVINGS 2009-10 -- 5,00,000 ASSESSEE S OWN SAVINGS 2010-11 -- 5,00,000 TOTAL 33,67,840 47,00,000 4.1 CONFIRMATION LETTERS FROM G R RAVINDER REDDY AN D A R CHOWDARY (HUF) TOWARDS INVESTMENT MADE ON BEHALF OF ASSESSEE WERE SUBMITTED ALONG WITH DOCUMENTARY EVIDENCES DURING T HE ASSESSMENT PROCEEDINGS. SUBSEQUENTLY, THE ASSESSMENT ORDER U/S .143(3) R.W.S.147 OF THE ACT WAS PASSED ON 28 TH MARCH, 2013 AND SERVED ON ITA NO. /MDS/2016 5 THE ASSESSEE WITH A DEMAND NOTICE OF ` 6,10,309/-. THE SAID DEMAND HAS RAISED ONLY ON ACCOUNT OF ADDITION MADE BY THE LD. ASSESSING OFFICER AMOUNTING TO ` 10/- LAKHS TOWARDS NON-ACCEPTANCE OF INVESTMENT MADE BY A R CHOWDARY ON BEHALF OF ASSESS EE WHICH WAS TREATED AS UNDISCLOSED INCOME IN THE HANDS OF THE A SSESSEE WHICH WAS TREATED AS UNDISCLOSED INCOME IN THE HANDS OF T HE ASSESSEE. 4.2 AGGRIEVED, THE ASSESSEE CARRIED THE APPEAL TO THE LD.CIT(A), WHO CONFIRMED THE ADDITION MADE BY THE LD. ASSESSIN G OFFICER. SINCE THE ADDITIONAL GROUND WAS FIRST TIME RAISED BEFORE THE LD.CIT(A), THE LD.CIT(A) HAS NOT GONE THROUGH THE ADDITIONAL GROUN D, THEREFORE, THE ASSESSEE FILED THIS APPEAL AGAINST THE ORDER OF LD. CIT(A) BEFORE TRIBUNAL. 5. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE MATERIAL ON RECORD. IN OUR OPINION, IT IS APPROPRIATE TO REMIT THE ADDITIONAL GROUND RAISED BY THE ASSESSEE TO THE FILE OF LD.CIT(A) FOR ADJUDICATION. SINCE WE REMIT THE ADDITIONAL GROUND RAISED BY THE ASSESS EE TO THE FILE OF ITA NO. /MDS/2016 6 LD.CIT(A) FOR HIS CONSIDERATION, WE AT THIS STAGE R EFRAIN FROM GOING INTO MERITS OF OTHER GROUNDS RAISED BY THE ASSESSE E. 6. IN THE RESULT, THE APPEAL OF ASSESSEE IS PARTLY ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED ON 09 TH JANUARY, 2017 AT CHENNAI. SD/- ( ) ( CHANDRA POOJARI ) /ACCOUNTANT MEMBER CHENNAI, DATED THE 09 TH JANUARY, 2017 . K S SUNDARAM. , ' $(-. /.( / COPY TO: 1 . ! / APPELLANT 3. & 0( () / CIT(A) 5. .3 4 $(5 / DR 2. $% ! / RESPONDENT 4. & 0( / CIT 6. 4 6 7 ' / GF