Income Tax Officer Ward-6(2)(1), Bangalore V. Smt Rekha D N , Bangalore

ITA 1570/BANG/2017

• Counselvise Citation: [2018] 121 COUNSELVISE.COM (IT) 4697 (ITAT-BANGALORE)
• Duration Of Justice: 10 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-06-2018
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2012-2013
• Appeal Filed On: 18-07-2017
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: B R RAMESH JT BENGALURU
• Keywords: Opportunity of being heard; Additional evidence
• Section: 143(3); 68; 2

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH : BANGALORE BEFORE SHRI N.V. VASUDEVAN, JUDICIAL MEMBER AND SHRI INTURI RAMA RAO , ACCOUNTANT MEMBER ITA NO. 1570/BANG/2017 ASSESSMENT YEAR : 2012 - 13 THE INCOME TAX OFFICER, WARD 6(2)(1), BENGALURU. VS. SMT. REKHA D.N., NO.7/A, SRINIDHI MANSION, 1 ST MAIN, 2 ND BLOCK, 3 RD STAGE, BASAVESHWARANAGAR, BENGALURU 560 079. PAN: AFZPN 8172J APP ELLANT RESPONDENT A PPELLANT BY : SHRI B.R. RAMESH, JT.CIT(DR)(ITAT), BENGALURU. RE SPONDENT BY : NONE DAT E OF HEARING : 17. 0 5 .201 8 DATE OF PRONOUNCEMENT : 01.06 .201 8 O R D E R PER N.V. VASUDEVAN, JUDICIAL MEMBER THIS APPEAL BY THE REVENUE IS AGAINST THE ORDER DA TED 15.03.2017 OF THE CIT(APPEALS), BENGALURU-VI, BENGALURU RELATING TO ASSESSMENT YEAR 2012-13. 2. THE GROUNDS OF APPEAL READS AS FOLLOWS:- 1. THE ORDER OF THE CIT (APPEALS) IS OPPOSED TO L AW AND THE FACTS AND CIRCUMSTANCES OF THE CASE. 2. ON THE FACTS AND IN CIRCUMSTANCES OF THE CASE, T HE CIT(A) ERRED IN DECIDING THE MATTER BASED ON THE FRESH EVIDENCES SU BMITTED BY THE ASSESSEE WITHOUT GIVING AN OPPORTUNITY TO THE ASSES SING OFFICER TO ITA NO. 1570/BANG/2017 PAGE 2 OF 3 EXAMINE SUCH EVIDENCES WHICH IS CONTRAVENED TO THE PROVISION OF RULE 46A(3). 3. FOR THESE AND SUCH OTHER GROUNDS THAT MAY BE UR GED AT THE TIME OF HEARING, IT IS HUMBLY PRAYED THAT THE ORDER OF THE CIT(A) IN SO FAR AS IT RELATES TO THE ABOVE GROUNDS MAY BE REVERSED AND THAT OF THE ASSESSING OFFICER BE RESTORED. 4. THE APPELLANT CRAVES LEAVE TO ADD, ALTER, AMEND OR DELETE ANY OF THE GROUNDS THAT MAY BE URGED AT THE TIME OF HEARIN G OF THE APPEAL. 3. THE ASSESSEE IS AN INDIVIDUAL. IN THE COURSE OF ASSESSMENT PROCEEDINGS U/S. 143(3) OF THE ACT, THE AO FOUND TH AT THERE WERE CREDITS IN THE NAME OF 27 PERSONS TOTALING RS.20,42,988. THE A SSESSEE FILED CONFIRMATIONS FROM 2 CREDITORS, BUT DID NOT FILE AN Y CONFIRMATION IN RESPECT OF 25 CREDITORS. THE AO THEREFORE ADDED A SUM OF RS.1 9,13,257 WHICH WAS THE CREDITS IN THE NAME OF 25 CREDITORS FOR WHOM CO NFIRMATION WAS NOT FILED BY THE ASSESSEE BEFORE THE AO. 4. IT APPEARS THAT DURING THE APPELLATE PROCEEDING S, THE ASSESSEE FILED CONFIRMATIONS FROM SOME OF THE CREDITORS, 16 IN NUM BER. THE CIT(APPEALS) DELETED THE ADDITION MADE IN RESPECT OF CREDITS IN THE NAME OF 16 CREDITORS IN RESPECT OF WHOM, CONFIRMATIONS WERE FILED BEFORE HIM. THUS, ADDITION TO THE EXTENT OF RS.6,03,241 IN RESPECT OF 9 CREDITORS FOR WHICH CONFIRMATION WAS NOT FILED BY THE ASSESSEE WAS CONFIRMED. THE R EMAINING ADDITIONS WERE DELETED BY THE CIT(APPEALS). 5. AGGRIEVED BY THE ORDER OF THE CIT(APPEALS), THE REVENUE HAS PREFERRED THE PRESENT APPEAL BEFORE THE TRIBUNAL. NONE APPEARED ON BEHALF OF THE ASSESSEE. IT IS CLEAR FROM THE READING OF T HE ORDER OF THE CIT(APPEALS) THAT THE CIT(APPEALS) ADMITTED ADDITIO NAL EVIDENCE IN VIOLATION OF RULE 46A(3) OF THE INCOME-TAX RULES. THE ADDITIONAL EVIDENCE WAS NOT CONFRONTED TO THE AO AND NO REMAND REPORT W AS OBTAINED FROM THE ITA NO. 1570/BANG/2017 PAGE 3 OF 3 AO ON THE ADDITIONAL EVIDENCE FILED BY THE ASSESSEE BEFORE THE CIT(APPEALS). IN THESE CIRCUMSTANCES, WE SET ASIDE THE ORDER OF THE CIT(APPEALS) AND REMAND THE ISSUE BACK TO HIM WITH REGARD TO THE GENUINENESS OF THE CREDITS IN RESPECT OF THE CREDIT ORS FOR WHOM, RELIEF WAS ALLOWED BY THE CIT(APPEALS). THE CIT(APPEALS) IS D IRECTED TO CONFRONT THE CONFIRMATION FILED BEFORE HIM FOR THE FIRST TIME TO THE AO FOR ITS ADMISSIBILITY AND VERACITY AND OBTAIN A REMAND REPORT ON THE REQU IREMENTS OF SATISFACTION OF THE CONDITIONS REQUIRED U/S. 68 OF THE ACT. THE CIT(APPEALS), THEREAFTER, IS DIRECTED TO DECIDE THE ISSUE IN ACCORDANCE WITH THE LAW, AFTER AFFORDING OPPORTUNITY OF BEING HEARD TO THE PARTIES. 6. IN THE RESULT, THE APPEAL BY THE REVENUE IS TREA TED AS ALLOWED FOR STATISTICAL PURPOSES. PRONOUNCED IN THE OPEN COURT ON THIS 1 ST DAY OF JUNE, 2018. SD/- SD/- ( INTURI RAMA RAO ) ( N.V. VASUDEVAN ) ACCOUNTANT MEMBER JUDICIAL MEMBER BANGALORE, DATED, THE 1 ST JUNE, 2018. / D ESAI S MURTHY / COPY TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR, ITAT, BANGALORE. 6. G UARD FILE BY ORDER SENIOR PRIVATE SECRETARY ITAT, BANGALORE.