Digambar Dnyandeo Patil, Pune V. Deputy Commissioner of Income-tax,

ITA 1607/PUN/2015

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 9495 (ITAT-PUNE)
• Duration Of Justice: 2 year(s) 1 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-01-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 10-01-2018
• Assessment Year: 2009-2010
• Appeal Filed On: 08-12-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 143(3); 153A; 15

Judgement Text

] IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH A, PUNE BEFORE MS. SUSHMA CHOWLA, JM AND SHRI ANIL CHATURVEDI, AM . / ITA NO.1607/PUN/2015 / ASSESSMENT YEAR : 2009-10 DIGAMBAR DNYANDEO PATIL, FLAT NO.1, PLOT NO.15, SDC, SECTOR NO.25, KRISHNA PARK APARTMENT, OPP. VASUS RESTAURANT, NIGIDI, PUNE 411044. PAN : ABNPP0059N. . / APPELLANT V/S THE DY. COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE 2(1), PUNE. . / RESPONDENT / APPELLANT BY : NONE / RESPONDENT BY : SHRI AJAY MODI, JCIT. / ORDER PER ANIL CHATURVEDI, AM : THIS APPEAL FILED BY THE ASSESSEE IS EMANATING OUT OF TH E ORDER OF COMMISSIONER OF INCOME TAX (A) 12, PUNE DT.18.09.2015 FOR THE ASSESSMENT YEAR 2009-10. 2. THE RELEVANT FACTS AS CULLED OUT FROM THE MATERIAL ON RECORD ARE AS UNDER :- 2.1 ASSESSEE IS AN INDIVIDUAL AND IS STATED TO BE DEVELOPE R, BUILDER AND CONTRACTOR. ASSESSEE FILED HIS RETURN OF INCOME FOR / DATE OF HEARING : 10.01.2018 / DATE OF PRONOUNCEMENT: 17.01.2018 2 A.Y. 2009-10 ON 20.06.2011 DISCLOSING INCOME OF RS.3,58,770/-. ON 20.06.2011 ASSESSEE WAS INTERCEPTED AT PUNE AIRPORT FOR HAVING UNEXPLAINED CASH OF RS.25,00,000/-. THEREAFTER, A REQUISITION WAS ISSUED AND THE CASH WAS SEIZED. THEREAFTE R A NOTICE U/S 153A WAS ISSUED ON 22.05.2012 AND IN RESPONSE TO WHICH, ASSESSEE FILED HIS RETURN OF INCOME ON 29.08.2012 DISCLOSING INCOME OF RS.3,58,770/-. THEREAFTER, THE CASE W AS TAKEN UP FOR SCRUTINY AND ASSESSMENT WAS FRAMED U/S 15 3(A) R.W.S. 143(3) OF THE ACT VIDE ORDER DT.27.03.2014 AND THE TO TAL INCOME WAS DETERMINED AT RS.3,36,19,918/-. AGGRIEVED BY THE ORDER OF AO, ASSESSEE CARRIED THE MATTER BEFORE LD.CIT(A) , WHO VIDE ORDER DT.18.09.2015 (IN APPEAL NO.PN/CIT(A)-12/DCIT, C ENT CIR-2(1) PUNE/39,43/2014-15) DISMISSED THE APPEAL OF THE ASSESSEE. AGGRIEVED BY THE ORDER OF LD.CIT(A), ASSESSEE IS NOW IN APPEAL BEFORE US AND HAS RAISED THE FOLLOWING GROUND :- ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW THE HONOURABLE CIT (APPEALS) 12, PUNE ERRED IN CONFIR MING THE DISALLOWANCE OF EXPENSES OF RS.18,79,928/- INCURRED BY THE APPELLANT FOR CLEARING THE TITLE IN THE PLOT OF LAN D SITUATED AT S.NO.180/1, AKURDI WITHOUT APPRECIATING THE FACTS O F THE CASE IN PROPER PERSPECTIVE. THE APPELLANT HEREBY PRAYS THA T THE ADDITIONS MAY PLEASE BE DELETED. 3. THE CASE FILE REVEALS THAT ON EARLIER OCCASION ALSO THE CASE WAS ADJOURNED AS NONE APPEARED ON BEHALF OF THE ASSESS EE AND THE NOTICE FOR THE PRESENT HEARING WAS ISSUED TO THE AS SESSEE ON 01.11.2017. ON THE DATE OF PRESENT HEARING ALSO SINCE NON E APPEARED, WE PROCEED TO DISPOSE OF THE APPEAL EX-PARTE QUA THE ASSESSEE ON THE BASIS OF MATERIAL ON RECORD AND AFTER H EARING THE LD.D.R. 3 4. DURING THE COURSE OF ASSESSMENT PROCEEDINGS AO NOTIC ED THAT ASSESSEE HAD CLAIMED RECEIPT OF RS.4,01,00,000/- ON ACCOUNT OF SALE OF LAND AGAINST WHICH ASSESSEE HAS CLAIMED EXPENDITURE OF RS.73,44,928/-. THE ASSESSEE WAS ASKED TO IDENTIFY THE BENEFICIARIES AND PROVE THE EXPENDITURE OF RS.73,44,928/-. AO NOTED THAT ASSESSEE COULD IDENTIFY BENEFICIARIES FOR ONLY RS.54,65,000/- AND COULD NOT IDENTIFY THE BENEFICIARY FOR EXPENSES TO THE TUNE OF RS.18,79,928/-. AO THEREFORE HELD THAT SINCE ASSESSEE COULD NOT IDENTIFY THE BENEFICIARIES AND SERVICES RENDERED BY THEM, THE CLAIM OF EXPENDITURE OF RS.18,79,928/- CANNOT BE ALLOWED. HE ACCORDINGLY DISALLOWED THE EXPENSES. AGGRIEVED BY THE OR DER OF AO, ASSESSEE CARRIED THE MATTER BEFORE LD.CIT(A). THE PER USAL OF THE LD.CIT(A) ORDER REVEALS THAT SINCE ASSESSEE HAD FAILED TO FURNISH THE DETAILS, THE ORDER OF AO WAS UPHELD. AGGRIEVED BY THE ORDER OF LD.CIT(A), ASSESSEE IS NOW IN APPEAL BEFORE US. 5. BEFORE US, LD.D.R. SUBMITTED THAT SINCE THE ASSESSEE HA S NOT PRODUCED ANY EVIDENCE ABOUT THE EXPENSES, THE AO WAS FULLY JUSTIFIED IN MAKING THE ADDITION. 6. WE HAVE HEARD THE LD.D.R. AND PERUSED THE MATERIAL ON RECORD. THE CLAIM OF ASSESSEE FOR EXPENSES WAS DISMISSED BY AO AS ASSESSEE COULD NOT PRODUCE THE DETAILS OF BENEFICIARIES AND EXPENSES AND THE ORDER OF AO WAS ALSO UPHELD BY LD.CIT(A ). BEFORE US IN THE GROUNDS IT IS ASSESSEES CONTENTION THA T THE EXPENSES HAVE BEEN INCURRED FOR CLEARING THE TITLE OF THE PLOT SITUATED IN SY.NO.180/1, AKUDI. IT IS A FACT THAT BEFORE LOW ER 4 AUTHORITIES, ASSESSEE HAS NOT FILED THE NECESSARY DETAILS. AT THE SAME TIME, IT IS ALSO NOT DISPUTED BY REVENUE THAT ASSES SEE IS ENGAGED AS DEVELOPER, BUILDER AND CONTRACTOR AND OUT OF THE TOTAL EXPENSES OF RS.73,44,928/- THAT WAS INCURRED BY ASS ESSEE, AO HAD ALLOWED EXPENSES OF RS.54,65,000/-. CONSIDERING THE AFORESAID FACTS AND IN THE INTERESTS OF JUSTICE, WE FEEL THAT THE ASSESSEE BE GRANTED ONE MORE OPPORTUNITY TO PRODUCE THE NECESSARY EVIDENCE BEFORE THE AO TO PROVE HIS CONTENTIO NS. WE THEREFORE RESTORE THE ISSUE BACK TO THE FILE OF AO TO DEC IDE THE ISSUE AFRESH WITH RESPECT TO DISALLOWANCE OF RS.18,79,928/-. WE ALSO DIRECT THE ASSESSEE TO PRODUCE THE NECESSARY DET AILS TO THE SATISFACTION OF THE AO. IN CASE ASSESSEE FAILS TO FURNISH THE NECESSARY EVIDENCE, AO SHALL BE FREE TO PROCEED ON THE B ASIS OF MATERIAL ON RECORD. THUS, THE GROUND OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. 7. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOW ED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED ON 17 TH DAY OF JANUARY, 2018. SD/- SD/- ( SUSHMA CHOWLA ) ( ANIL CHATURVEDI ) ! / JUDICIAL MEMBER '! / ACCOUNTANT MEMBER PUNE; ! DATED : 17 TH JANUARY, 2018. YAMINI 5 #$%&'('% / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT 3. 4. 5. 6. CIT(A)-12, PUNE. PR.CIT, CENTRAL, PUNE. #$% &&'(, '(, / DR, ITAT, A PUNE; %-.// GUARD FILE. / BY ORDER , // / TRUE COPY / / // // TRUE COPY // 012&3'4 / SR. PRIVATE SECRETARY '(, / ITAT, PUNE.