ACIT NON CORPORATE CIRCLE 20 (1), CHENNAI V. SHRI. S SREENIVASAN, CHENNAI

ITA 1604/CHNY/2018

• Counselvise Citation: [2018] 118 COUNSELVISE.COM (IT) 8755 (ITAT-CHENNAI)
• Duration Of Justice: 7 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-12-2018
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2010-2011
• Appeal Filed On: 11-05-2018
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: D KUMUDHA
• Keywords: Unexplained cash credit; Assessment record
• Section: 143(3)

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL , B BENCH, CHENNAI . . . , . , BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI A.MOHAN ALANKAMONY, ACCOUNTANT MEMBER ./ I.T.A.NO.1604/CHNY/2018 ( / ASSESSMENT YEAR: 2010-11) THE INCOME TAX OFFICER, BUSINESS WARD XIV(4), CHENNAI. VS SHRI S. SEENIVASAN, NO.17/60, IV STREET, F BLOCK, ANNA NAGAR, CHENNAI 600 040. PAN: BLYPS5662L ( /APPELLANT) ( /RESPONDENT) / APPELLANT BY : MS.D. KUMUDHA, JCIT / RESPONDENT BY : NONE /DATE OF HEARING : 30.10.2018 /DATE OF PRONOUNCEMENT : 17.12.2018 / O R D E R PER A. MOHAN ALANKAMONY, AM:- THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER PASSED BY THE LD. COMMISSIONER OF INCOME TAX (APPEALS)-14, CHENNAI, DATED 28.02.2018 IN NEW ITA NO.413/CIT(A)-14/2016-17 FOR THE ASSESSMENT YEAR 2010-11 PASSED U/S. 250(6) R.W.S. 143(3) & 147 OF THE ACT. 2 ITA NO.1604/CHNY /2018 2. THE REVENUE HAS RAISED FOUR ELABORATE GROUNDS IN ITS APPEAL HOWEVER THE CRUXES OF THE ISSUES THAT ARE THAT (I) THE LD.CIT(A) HAS ERRED IN DELETING THE ADDITION MADE ON ACCOUNT OF UNEXPLAINED CASH CREDIT U/S.68 OF THE ACT, FOR RS.30,50,000/-. (II) THE LD.CIT(A) HAS ERRED IN DELETING THE ADDITION MADE ON ACCOUNT OF SERVICE CHARGES EARNED FROM M/S. FINE FAB PVT. LTD., AMOUNTING TO RS.7 CRORES. 3. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE IS AN INDIVIDUAL ENGAGED IN BUSINESS/PROFESSION UNDER THE NAME M/S.BABA CLINIC, FILED HIS RETURN OF INCOME FOR THE ASSESSMENT YEAR 2010-11 ON 02.08.2010 ADMITTING TOTAL INCOME OF RS.3,01,097/-. THEREAFTER SURVEY U/S.133A OF THE ACT WAS ALSO CONDUCTED IN THE PREMISES OF THE ASSESSEE. FINALLY ASSESSMENT WAS COMPLETED U/S.143(3) R.W.S. 147 OF THE ACT ON 28.03.2013 WHEREIN THE LD.AO MADE SEVERAL ADDITIONS AMONGST WHICH ADDITIONS WERE ALSO MADE ON ACCOUNT OF UNEXPLAINED CASH CREDIT U/S.68 OF THE ACT FOR RS.46,11,50,000/- AND RS.41,30,00,000/- TOWARDS SERVICE CHARGES EARNED BY THE ASSESSEE. 3 ITA NO.1604/CHNY /2018 4. ON APPEAL, THE LD.CIT(A) PASSED AN EX-PARTE ORDER SINCE THE ASSESSEE FAILED TO BE PRESENT BEFORE HIM AND PARTICIPATE IN THE APPELLATE PROCEEDINGS. HOWEVER THE LD.CIT(A) VIDE ORDER DATED 28.02.2018 DELETED THE ADDITION TO THE EXTENT OF RS.30,50,000/- WITH RESPECT TO ADDITION MADE ON ACCOUNT OF UNEXPLAINED CASH CREDIT U/S.68 OF THE ACT AND TO THE EXTENT OF RS.7 CRORES TOWARDS SERVICE CHARGES RECEIVED FROM M/S. FINE FAB PVT. LTD., BASED ON CERTAIN MATERIALS FOUND IN THE ASSESSMENT RECORDS. 5. BEFORE US ALSO NONE APPEARED ON BEHALF OF THE ASSESSEE IN ORDER TO PURSUE THE APPEAL. FURTHER FROM PERUSING THE ORDER OF THE LD.CIT(A) AND HEARING THE LD.DR, WE FIND THAT THE OBSERVATION MADE BY THE LD.CIT(A) FOR GRANTING RELIEF TO THE ASSESSEE DO NOT CORROBORATE WITH THE FINDING OF THE LD.AO. THEREFORE WE ARE OF THE CONSIDERED VIEW THAT IN SUCH CIRCUMSTANCES THE LD.CIT(A) OUGHT TO HAVE PASSED ORDERS AFTER OBTAINING REMAND REPORT FROM THE LD.AO, THEREBY PROVIDING AN OPPORTUNITY TO THE LD.AO TO APPRECIATE THE FACTS. HENCE, IN THE INTEREST OF JUSTICE, WE HEREBY SET ASIDE THE ORDER OF THE LD.CIT(A) AND REMIT THE MATTER BACK TO HIS FILE WITH DIRECTION TO OBTAIN REMAND REPORT FROM LD.AO AND THEREAFTER PASS APPROPRIATE ORDER IN 4 ITA NO.1604/CHNY /2018 ACCORDANCE WITH LAW AND MERIT AFTER PROVIDING DUE OPPORTUNITY TO THE ASSESSEE OF BEING HEARD. HOWEVER WE ALSO MAKE IT CLEAR THAT IF THE ASSESSEE DO NOT CO-OPERATE PROMPTLY WITH THE LD.REVENUE AUTHORITIES IN THEIR PROCEEDINGS, THEY SHALL BE AT LIBERTY TO PASS APPROPRIATE ORDER IN ACCORDANCE WITH LAW AND MERIT BASED ON THE MATERIALS ON RECORD. 6. IN THE RESULT, THE APPEAL FILED BY THE REVENUE IS ALLOWED FOR STATISTICAL PURPOSES AS INDICATED HEREIN ABOVE. ORDER PRONOUNCED ON THE 17 TH DECEMBER, 2018 AT CHENNAI . SD/- SD/- /CHENNAI, /DATED 17 TH DECEMBER, 2018 RSR /COPY TO: 1. /APPELLANT 2. /RESPONDENT 3. ( ) /CIT(A) 4. /CIT 5. /DR 6. /GF ( . . . ) (N.R.S. GANESAN) /JUDICIAL MEMBER ( . ) (A. MOHAN ALANKAMONY) / ACCOUNTANT MEMBER