M/S STROKES ADVERTISING PVT LTD , RANCHI V. DCIT CIR-3 , RANCHI

ITA 16/RAN/2018

• Counselvise Citation: [2018] 119 COUNSELVISE.COM (IT) 0480 (ITAT-RANCHI)
• Duration Of Justice: 10 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-11-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2013-2014
• Appeal Filed On: 11-01-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: A K MOHANTY
• Assessee Lawyers: VINAY KUMAR JALAN
• Keywords: Principle of natural justice
• Section: 144

Judgement Text

P A G E 1 | 5 IN THE INCOME TAX APPELLATE TRIBUNAL, RANCHI SMC BENCH, RANCHI BEFORE SHRI N.S SAINI, ACCOUNTANT MEMBER ITA NO. 18 / RAN /201 7 ASSESSMENT YEAR : 2012 - 2013 SHRI BALESHWAR RANA, C/O SRI VINAY KR JALAN, 48, CART SARAI ROAD, UPPER BAZAR, RANCHI. VS. ITO, WARD 1(2), HAZARIBAG. PAN/GIR NO. AIIPR 7020 H (APPELLANT ) .. ( RESPONDENT ) ASSESSEE BY : SHRI VINAY KUMAR JALAN, ADV REVENUE BY : SHRI A.K.MOHANTY, JCIT DATE OF HEARING : 20 / 11 / 2018 DATE OF PRONOUNCEMENT : 20 / 11 / 2018 O R D E R THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF THE CIT(A) , HAZARIBAG, D ATED 6.10.2016 FOR THE ASSESSMENT YEAR 2012 - 13. 2. THE ASSESSE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL: 1. FOR THAT, THE LD. CIT(A) UNDER THE FACTS AND CIRCUMSTANCES OF THE CASE, ERRED IN CONFIRMING THE ADDITION OF RS. 3,56,800/ - UNDER THE HEAD INCOME FROM HOUSE PROPERTY WHEREAS IT IS THE RENT RECEIVED FROM PLYING OF VEHICLES. 2. FOR THAT, THE LD. CIT(A) UND ER THE FACTS AND CIRCUMSTANCES OF THE CASE, ERRED IN CONFIRMING THE ADDITION OF RS. 45,23,979/ - CONSIDERING IT TO BE UNEXPLAINED CASH DEPOSITS, ITA NO.18 / RAN/ 2017 ASSESSMENT YEAR : 12 - 13 P A G E 2 | 5 WHEREAS IT IS THE RECEIPTS FROM PLYING OF VEHICLES OUT OF WHICH MAJOR PORTION HAS BEEN SPENT ON REPAYMENT OF LOA N, VEHICLE RUNNING EXPENSES AND STAFF EXPENSES. 3. FOR THAT, THE LD. CIT(A) UNDER THE FACTS AND CIRCUMSTANCES OF THE CASE, ERRED IN CONFIRMING THE ADDITION OF RS. 14,399/ - FOR INTEREST ON DEPOSITS. 4. FOR THAT, THE LD. CIT(A) UNDER THE FACTS AND CIRCUMSTANCES OF THE CASE, ERRED IN CONFIRMING THE ADDITION OF RS. 83,200/ - WHICH IS ON AN ESTIMATE BASIS @ 10% OF TOTAL OF CHEQUE DEPOSITS IN THE THREE BANK ACCOUNTS. 5. FOR THAT, THE OTHER GROUNDS SHALL BE URGED AT THE TIME OF HEARING. 3. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSING OFFICER MADE THE ASSESSMENT UNDER SECTION 144 OF THE ACT AS THE ASSESSE FAILED TO FILE THE BOOKS OF ACCOUNT AND DOCUMENTS CALLED FOR BY THE ASSESSING OFFICER. THEREFORE, HE ASSESSED THE INCOME AT RS.49,78,378 / - AS UNDER: INCOME FROM HOUSE PROPERTY : RS. 3,56,800/ - INCOME FROM OTHER SOURCES : RS.45,38,378/ - INCOME FROM BUSINESS : RS 83,200/ - : RS.49,78,378/ - 4. WHILE DO SO, HE MADE ADDITION OF RS.45,23,979/ - BEING THE CASH DEPOSIT IN THE BAN K MAINTAINED WITH ICICI BANK KODERMA BRANCH. 5. THE ASSESSE FILED APPEAL BEFORE THE CIT(A), WHO CONFIRMED THE ACTION OF THE ASSESSING OFFICER ON THE GROUND THAT THE ASSESSE ITA NO.18 / RAN/ 2017 ASSESSMENT YEAR : 12 - 13 P A G E 3 | 5 DID NOT FILE ANY MATERIAL BEFORE HIM TO CONTROVERT THE FINDINGS OF THE ASSESSING OF FICER. 6. BEFORE ME, LD A.R. OF THE ASSESSE SUBMITTED THAT DURING THE COURSE OF APPEAL PROCEEDINGS, THE CIT(A) HAS CALLED FOR A REMAND REPORT FROM THE ASSESSING OFFICER. THE COPY OF THE REMAND REPORT WAS NOT GIVEN TO THE ASSESSE AND THE ASSESSE WAS ALSO N OT ALLOWED TO MAKE ITS SUBMISSIONS THEREON. THUS, THERE WAS VIOLATION OF PRINCIPLES OF NATURAL JUSTICE. 7. ON THE OTHER HAND, LD D.R. RELIED ON THE ORDERS OF LOWER AUTHORITIES. 8. AFTER CONSIDERING THE RIVAL SUBMISSIONS AND PERUSING THE ORDERS OF LOWER AU THORITIES, I FIND THAT IN THE INSTANT CASE, THE ASSESSMENT ORDER WAS MADE U/S.144 OF THE ACT BY THE ASSESSING OFFICER AS THE ASSESSE DID NOT FILE THE DETAILS AND DOCUMENTS BEFORE HIM IN SUPPORT OF ITS CLAIM. FURTHER, BEFORE THE CIT(A), THE ASSESSE ALSO DI D NOT FILE THE REQUIRED DETAILS . 9. THE CONTENTION OF LD A.R. OF THE ASSESSE WAS THAT A REMAND REPORT WAS CALLED BY THE CIT(A) FROM THE ASSESSING OFFICER BEFORE ADJUDICATING THE APPEAL OF THE ASSESSE AND COPY OF THE REPORT WAS NOT MADE AVAILABLE TO THE ASS ESSE. THEREFORE, THERE IS VIOLATION OF PRINCIPLES OF NATURAL JUSTICE. IN THE CIRCUMSTANCES, I AM OF THE CONSIDERED VIEW THAT IN ORDER TO RENDER SUBSTANTIAL JUSTICE, THE ITA NO.18 / RAN/ 2017 ASSESSMENT YEAR : 12 - 13 P A G E 4 | 5 MATTER SHOULD BE RESTORED BACK TO THE FILE OF THE CIT(A) TO ADJUDICATE THE APPEAL OF THE ASSESSE AFRESH AFTER PROVIDING COPY OF THE REMAND REPORT TO THE ASSESSE AND ALLOWING REASONABLE OPPORTUNITY TO MAKE THE SUBMISSIONS ON THE REMAND REPORT OF THE ASSESSING OFFICER. 10. THE ASSESSE IS ALSO DIRECTED TO APPEAR SUO MOTO BEFORE THE CIT(A) WIT HIN 30 DAYS FROM THE DATE OF THIS ORDER TO FIX THE DATE OF HEARING OF THE APPEAL. THE ASSESSE IS FURTHER DIRECTED TO CO - OPERATE WITH THE CIT(A) IN DISPOSING OF THE APPEAL EXPEDITIOUSLY BY FILING DETAILS AND DOCUMENTS AS AND WHEN CALLED UPON TO DO SO. THE CIT(A) IS DIRECTED TO DISPOSE OF THE APPEAL OF THE ASSESSE EXPEDITIOUSLY. FURTHER, IT IS STATED THAT IF THE ASSESSE DOES NOT CO - OPERATE WITH THE CIT(A) BY FILING THE REQUIRED DETAILS AND DOCUMENTS, THEN THE CIT(A) WILL BE AT FULL LIBERTY TO PASS ANY ORDE R AS HE DEEMS FIT IN THE MATTER. WITH THESE DIRECTION S , THE APPEAL IS RESTORED BACK TO THE FILE OF THE CIT(A). 11. IN THE RESULT, APPEAL OF THE ASSESSE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED ON 20 / 11 /2018. SD/ - ( N.S SAINI) A CCOUNTANT MEMBER RANCHI ; DATED 20 / 11 /2018 B.K.PARIDA, SPS ITA NO.18 / RAN/ 2017 ASSESSMENT YEAR : 12 - 13 P A G E 5 | 5 COPY OF THE ORDER FORWARDED TO : BY ORDER SR. PVT.S ECRETARY, ITAT, RANCHI ON TOUR 1. THE APPELLANT: SHRI BALESHWAR RANA, C/O SRI VINAY KR JALAN, 48, CART SARAI ROAD, UPPER BAZAR, RANCHI. 2. THE RESPONDENT. ITO, WARD 1(2), HAZARIBAG 3. THE CIT(A) - HAZARIBAG 4. PR.CIT - HAZARIBAG 5. DR, ITAT, RANCHI 6. GUARD FILE. //TRUE COPY//