Shri Kripalsingh C.Vaswani, Ahmedabad V. The Dy.CIT.,Circled-15, Ahmedabad

ITA 1578/AHD/2009

• Counselvise Citation: [2009] 115 COUNSELVISE.COM (IT) 0205 (ITAT-AHMEDABAD)
• Duration Of Justice: 5 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-10-2009
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 15-09-2009
• Assessment Year: 2006-2007
• Appeal Filed On: 18-05-2009
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: NEETA SHAH
• Keywords: Principle of natural justice
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCH B AHMEDABAD BEFORE SHRI P.K.BANSAL, ACCOUNTANT MEMBER AND SHRI MAHAVIR SINGH, JUDICIAL MEMBER ITA NO.1578/AHD/2009 ASSESSMENT YEAR: 2003-04 DATE OF HEARING:15.9.09 DRAFTED:15.10.09 SHRI KRIPALSINGH C VASWANI, E-101, KIRIT SAGAR APARTMENT, JODHPUR GAM ROAD, SATELLITE, AHMEDABAD-9 PAN NO. AAKPV4993R V/S . DCIT CIR-15, AHMEDABAD (APPELLANT) .. (RESPONDENT) APPELLANT BY :- SHRI TUSHAR P HEMANI, AR RESPONDENT BY:- SMT. NEETA SHAH, SR. DR O R D E R PER MAHAVIR SINGH JUDICIAL MEMBER:- THIS APPEAL BY THE ASSESSEE IS ARISING OUT OF THE ORDER OF COMMISSIONER OF INCOME-TAX (APPEALS)-XXI AHMEDABAD IN APPEAL NO. CI T(A)-XXI/165/CIR.15/08-09 DATED 03-11-2009. THE ASSESSMENT WAS FRAMED BY THE DCIT, CIRCLE-15, AHMEDABAD U/S. 143(3) OF THE INCOME-TAX ACT, 1961 (HEREINAFTE R REFERRED TO AS THE ACT) VIDE HIS ORDER DATED 19-12-2008 FOR ASSESSMENT YEAR 2006-07. 2. THE FIRST ISSUE IN THIS APPEAL OF THE ASSESSEE I S AGAINST THE ORDER OF CIT(A) IN CONFIRMING THE ADDITION OF AMOUNT RECEIVED FROM VOL UNTARY RETIREMENT SCHEME (VRS IN SHORT), FRAMED BY THE STEEL AUTHORITY OF INDIA A ND APPROVED BY THE CENTRAL GOVT., BY DISALLOWING DEDUCTION OF RS.5 LAKHS U/S.10(10C) OF THE ACT. FOR THIS, THE ASSESSEE HAS RAISED THE FOLLOWING GROUND NO.2 :- 2. THE LEARNED CIT(A) HAS GROSSLY ERRED IN LAW AND ON FACTS IN CONFIRMING THE ACTION OF LD. AO IN HOLDING THAT THE APPELLANT HAS NOT RECEIVED AMOUNT FROM VOLUNTARY RETIREMENT SCHEME FRAMED BY STEEL AUTHORI TY OF INDIA LTD. APPROVED BY THE CENTRAL GOVERNMENT AND BY DISALLOWI NG DEDUCTION OF RS.5,00,000/- U/S.10(10C) OF THE ACT. ITA NO.1578/AHD/2009 A.Y. 2006-07 SH. KRIPALSINGH C VASWANI V. DCIT CIR-15 ABD PAGE 2 3. WE HAVE HEARD THE RIVAL CONTENTIONS AND GONE THR OUGH THE FACTS AND CIRCUMSTANCES OF THE CASE. WE FIND THAT THE ISSUE IS SQUARELY COVERED IN FAVOUR OF THE ASSESSEE AND AGAINST THE REVENUE. THE ASSESSEE , NOW BEFORE US FILED COPY OF VRS, 2005 FRAMED BY STEEL AUTHORITY OF INDIA AT PAG E-10 TO 15 OF THE ASSESSEES PAPER BOOK, BY VIRTUE OF WHICH THE ASSESSEE WAS PAI D A SUM OF RS.5 LAKHS AND WHICH HAS BEEN CLAIMED EXEMPT U/S.10(10C) OF THE ACT. WE FIND NO INFIRMITY IN THE CLAIM OF THE ASSESSEE AND THE LOWER AUTHORITIES HAVE WRONGLY DISALLOWED THIS CLAIM. ACCORDINGLY, WE REVERSE THE ORDERS OF THE LOWER AUT HORITIES AND ALLOW THE CLAIM OF THE ASSESSEE AND THIS ISSUE OF THE ASSESSEES APPEAL IS ALLOWED. 4. THE NEXT ISSUE IN THIS APPEAL OF THE ASSESSEE IS AGAINST THE ORDER OF CIT(A) IN CONFIRMING THE ADDITION MADE BY THE ASSESSING OFFIC ER ON ACCOUNT OF INVESTMENT OF RS.14.80 LAKHS IN MUTUAL FUND OUT OF UNEXPLAINED IN VESTMENT. FOR THIS, THE ASSESSEE HAS RAISED THE FOLLOWING GROUND NO.3 :- 3. THE LEARNED CIT(A) HAS GROSSLY ERRED IN LAW AND ON FACTS IN CONFIRMING THE ACTION OF LD. AO IN HOLDING THAT APPELLANT HAS MADE INVESTMENT OF RS.14,80,000/- IN MUTUAL FUNDS OUT OF UNEXPLAINED I NVESTMENT AND ACCORDINGLY ADDED RS.14,80,000/- TO THE TOTAL INCOM E OF THE APPELLANT. THE LD. CIT(A) OUGHT TO HAVE APPRECIATED THE FACTS SUBMITTE D BY THE APPELLANT THAT THE SAID INVESTMENT HAS BEEN MADE OUT OF RECEIPT FROM V OLUNTARY RETIREMENT SCHEME FRAMED BY STEEL AUTHORITY OF INDIA LTD. 5. WE HAVE HEARD THE RIVAL CONTENTIONS AND GONE THR OUGH THE FACTS AND CIRCUMSTANCES OF THE CASE. WE HAVE ALSO PERUSED THE CASE RECORDS INCLUDING THE ASSESSMENT ORDER AS WELL AS THE ORDER OF CIT(A). B EFORE US LD. COUNSEL FOR THE ASSESSEE FAIRLY STATED THAT THE CIT(A) HAS ERRED IN GROSSLY IGNORING VARIOUS SUBMISSIONS, EXPLANATIONS AND INFORMATION SUBMITTED BY THE ASSESSEE FROM TIME TO TIME, WHICH OUGHT TO HAVE BEEN CONSIDERED BEFORE PA SSING THE IMPUGNED ORDER AND ACTION OF BOTH THE AUTHORITIES IS CLEAR IN BREACH O F LAW AND PRINCIPLE OF NATURAL JUSTICE AND THEREFORE DESERVES TO BE QUASHED. BEFORE US LD. COUNSEL FOR THE ASSESSEE FURTHER STATED THAT THE AS HAS MADE THE FOLLOWING I NVESTMENT:- SR. NO. DESCRIPTION DATE AMOUNT 1. PRUDENCIAL ICICI MUTUAL FUND 25/03/2006 RS. 2,0 0,000/- 2. PRUDENTIAL ICICI MUTUAL FUND 1/12/2005 RS. 6,00 ,000/- 3. PRUDENTIAL ICICI MUTUAL FUND 4/1/2006 RS. 2,00, 000/- 4. HDFC MUTUAL FUND 18/11/2005 RS. 4,80,000/- TOTAL RS.14,80,000/- ITA NO.1578/AHD/2009 A.Y. 2006-07 SH. KRIPALSINGH C VASWANI V. DCIT CIR-15 ABD PAGE 3 THE ASSESSEE EXPLAINED BEFORE US BY FILING DOCUMENT ARY EVIDENCE THAT THESE INVESTMENTS ARE MADE OUT OF VRS FUND RECEIVED BY CH EQUES AND FOR WHICH THE ASSESSEE HAS RECEIVED THE AMOUNTS BY CHEQUES. THE ASSESSEE CO-RELATED THESE PAYMENTS WITH THE INVESTMENTS AS WELL AS FROM RECEI PTS FROM SAIL. THIS BEING PAYMENTS ON ACCOUNT OF VRS BENEFITS AS PER FULL AND FINAL SETTLEMENT OF VRS OF SAIL. THE ASSESSEE ALSO CO-RELATED THIS AMOUNT WITH THE B ANKS STATEMENT OF HDFC BANK, WHERE THE ACCOUNT NO.00491000006632 AND IT IS SEEN FROM THE ACCOUNT THAT THAT THE ENTIRE VRS MONEY WAS DEPOSITED IN THIS ACCOUNT AND MADE INVESTMENT OUT OF THE SAME. WE FIND THAT INVESTMENTS ARE EXPLAINED IN VIEW OF THE DOCUMENTS AND SUBMISSIONS FILED BEFORE US AND WE DELETE THE ADDIT ION AND REVERSE THE ORDERS OF THE LOWER AUTHORITIES AND THIS ISSUE OF THE ASSESSEES APPEAL IS ALLOWED. 6. IN THE RESULT, ASSESSEES APPEAL IS ALLOWED. ORDER PRONOUNCED IN OPEN COURT ON 30/10/2009 SD/- SD/- (P.K.BANSAL) (MAHAVIR SINGH) ACCOUNTANT MEMBER JUDICIAL MEMBER AHMEDABAD, DATED : 30/10/2009 *DKP COPY OF THE ORDER FORWARDED TO : 1. THE APPELLANT. 2. THE RESPONDENT. 3. THE CIT(APPEALS)-XXI, AHMEDABAD 4. THE CIT CONCERNS. 5. THE DR, ITAT, AHMEDABAD 6. GUARD FILE. BY ORDER, /TRUE COPY/ DEPUTY / ASSTT.REGISTRAR ITAT, AHMEDABAD