Smt. Pushpalata D. Waghere, Pune V. Income-tax Officer, Ward - 8(4), Pune

ITA 166/PUN/2018

• Counselvise Citation: [2019] 118 COUNSELVISE.COM (IT) 5061 (ITAT-PUNE)
• Duration Of Justice: 1 year(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-02-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 03-01-2019
• Assessment Year: 2014-2015
• Appeal Filed On: 17-01-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Unexplained cash credit; Principle of natural justice
• Section: 143(3); 68

Judgement Text

] IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH SMC, PUNE BEFORE SHRI ANIL CHATURVEDI, AM . / ITA NO.166/PUN/2018 / ASSESSMENT YEAR : 2014-15 SMT. PUSHPALATA D. WAGHERE, S.NO.299A, NEAR POWER HOUSE, PIMPRIGAON, PUNE 411 017. PAN : ABXPW3151A. . / APPELLANT V/S THE INCOME TAX OFFICER, WARD 8(4), PUNE. . / RESPONDENT ASSESSEE BY : SHRI P.S. SHINGTE. (ADJOURNMENT REFUSED.) REVENUE BY : SHRI RAJESH GAWALI. / ORDER PER ANIL CHATURVEDI, AM : 1. THIS APPEAL FILED BY THE ASSESSEE IS EMANATING OUT OF THE ORDER OF COMMISSIONER OF INCOME TAX (A) 8, PUNE DT.30.1 1.2017 FOR THE ASSESSMENT YEAR 2014-15. 2. THE RELEVANT FACTS AS CULLED OUT FROM THE MATERIAL ON R ECORD ARE AS UNDER :- ASSESSEE IS AN INDIVIDUAL WHO ELECTRONICALLY FILED HIS RETURN OF INCOME FOR A.Y. 2014-15 ON 11.02.2016 DECLARING TOTAL INCOM E OF RS.1,68,000/-. THE CASE WAS SELECTED FOR SCRUTINY AND TH EREAFTER, / DATE OF HEARING : 03.01.2019 / DATE OF PRONOUNCEMENT: 06.02.2019 2 ITA NO.166/PUN/2018 ASSESSMENT WAS FRAMED U/S 143(3) OF THE ACT VIDE ORDER DT.13.12.2016 AND THE TOTAL INCOME WAS DETERMINED AT RS.9,99,000/-. AGGRIEVED BY THE ORDER OF AO, ASSESSEE CAR RIED THE MATTER BEFORE LD.CIT(A), WHO VIDE ORDER DT.30.11.2017 (IN APPE AL NO.PN/CIT(A)-8/ITO, WD.8(4)/ 703/2017-18) DISMISSED THE APPE AL OF ASSESSEE. AGGRIEVED BY THE ORDER OF LD.CIT(A), ASSESSEE IS NOW IN APPEAL AND HAS RAISED THE FOLLOWING GROUNDS : 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CA SE AND IN LAW, THE LEARNED ASSESSING OFFICER ERRED IN MAKING ADDITION OF RS.8,31,000/- BY TREATING THE CASH DEPOSITED IN BANK ACCOUNTS AS AN UNEXPLAINED CASH CREDIT WITHOUT ASSIGNING ANY REASON WHATSOEVER . 2. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CAS E AND IN LAW, THE LEARNED LD.CIT(A) ERRED IN PASSING THE ORDER WITHOU T GIVING SUFFICIENT OPPORTUNITY OF HEARING, APPEAL MAY KINDLY BE RESTOR ED TO THE FILE OF LD.CIT(A) IN THE INTEREST OF NATURAL JUSTICE. 3. THE CASE FILE REVEALS THAT ON THE DATE OF HEARING, ADJOURNMENT APPLICATION WAS FILED BY THE LD.A.R. SEEKING ADJOURNMENT IN THE CASE. THE ADJOURNMENT WAS REFUSED IN VIEW OF THE FACT THAT THE ISSUE IN THE PRESENT CASE IS COVERED BY VARIOUS DECISIONS OF PUNE TRIBUNAL. I THEREFORE PROCEED TO DECIDE THE APPEAL EX-PARTE QUA THE ASSESSEE. 4. DURING THE COURSE OF ASSESSMENT PROCEEDINGS, AO NOTICE D THAT IN THE BANK ACCOUNT NO.SB/16 MAINTAINED WITH PAVNA SAHKARI BANK LTD., CHINCHWAD, ASSESSEE HAS DEPOSITED CAS H OF RS.10,71,400/- AS AGAINST WHICH ASSESSEE HAS STATED TO HAVE RENT AL INCOME OF RS.2,40,000/-. AO NOTED THAT ASSESSEE HAS NOT OFFERED ANY EXPLANATION FOR THE CASH DEPOSITS. HE ACCORDINGLY CO NSIDERED THE CASH DEPOSITS OF RS.8,31,400/- AND AFTER CONSIDERING TH E RENTAL 3 ITA NO.166/PUN/2018 INCOME OF RS.2,40,000/- MADE BY THE ASSESSEE MADE ADDITIO N OF RS.8,31,400/- AS UNEXPLAINED DEPOSITS. AGGRIEVED BY THE ORDER OF AO, ASSESSEE CARRIED THE MATTER BEFORE LD.CIT(A), WHO DISMIS SED THE APPEAL OF ASSESSEE BY OBSERVING AS UNDER : 9. I ALSO FIND THAT APPEAL IN THIS CASE WAS FILED ON 19.01 . 20 17 AND TH E CASE WAS SCHEDULED FOR HEARING ON 08 . 11 . 2017, I.E. ALMOST AFTER 10 MON T HS, BUT STI L L THE APPELLANT WAS NOT FOUND TO BE PREPARED W ITH THE DETAILS. THE CASE WAS FI XE D T H RICE FOR HEARIN G I.E. ON 08.11.2017 , 20.11.201 7 AND 28.11.2017 , BUT NOTHING HAS C O ME FORTH - FROM THE APPELLANT. IN FACT ON THE LAST DATE OF HEARING I.E. 28.11 . 2017 , NON E AP P EARED AND N E ITHER ' AN Y APPLICATION FOR ADJOURNMENT WAS FILED . THIS C L E ARL Y SHO WS THAT THE A PPELL A NT HAS NOTHING TO SA Y IN THE MATTER, AND NEITHER IS SHE INTERE S TED IN P U RSU I NG HER CASE. IN T HE ABSENCE OF SATISFACTORY EXPLANATION ON RECORD, TO EXPLAIN THE BAL A NCE CASH CREDITS OF RS. 8,31 , 000/-, EITHER BEFORE THE AO, OR DU R ING TH E C O U RSE OF A PPELLATE PROCEEDINGS , THE PROVISIONS OF SEC . 68 WILL CLEARLY BECOM E APPLICABLE IN T HIS . CA S E . A C C ORD I NGL Y, IT IS HELD THAT THE AO HAS RIGHTL Y TREATED T H E CA S H DEPO S IT S OF RS. 8 ,3 1 , 000/ -, AS UNEXPLAINED CASH CREDITS , AND BROUGHT THEM TO TAX . THE ACTION OF T HE A O IS THEREFORE UPHELD . GROUND NO.1 IS DISMISSED. AGGRIEVED BY THE ORDER OF LD.CIT(A), ASSESSEE IS NOW IN APPEAL BEFORE ME. 5. BEFORE ME LD.D.R. SUPPORTED THE ORDER OF AO AND LD.CIT(A). 6. I HAVE HEARD THE LD.D.R. AND PERUSED THE MATERIAL ON RECORD. THE ISSUE IN THE PRESENT CASE IS WITH RESPECT TO THE AD DITION OF RS.8,31,000/- ON ACCOUNT OF UNEXPLAINED DEPOSITS. THE PER USAL OF ORDER OF LD.CIT(A) REVEALS THAT LD.CIT(A) HAS PASSED AN EX -PARTE ORDER WITHOUT DECIDING THE ISSUE ON MERITS. I N VIEW OF THE WELL SETTLED PRINCIPLE OF NATURAL JUSTICE THAT SUFFICIENT OPPORTUNIT Y OF HEARING SHOULD BE AFFORDED TO THE PARTIES AND NO PARTY S HOULD BE CONDEMNED UNHEARD, I AM OF THE VIEW THAT ONE MORE OPPO RTUNITY 4 ITA NO.166/PUN/2018 BE GRANTED TO ASSESSEE TO PRESENT HER CASE. I THERE FORE RESTORE THE MATTER BACK TO THE FILE OF LD.CIT(A) TO DECIDE THE ISSUE ON MERITS IN ACCORDANCE WITH LAW. NEEDLESS TO STATE THAT LD.CIT(A) SHA LL GRANT ADEQUATE OPPORTUNITY OF HEARING TO BOTH THE PARTIES. ASS ESSEE IS ALSO DIRECTED TO PROMPTLY FURNISH ALL THE DETAILS CALLED FOR BY THE LOWER AUTHORITIES. IN VIEW OF MY DECISION TO RESTORE THE ISSUE TO LD.CIT(A), I AM NOT ADJUDICATING ON MERITS THE GROUNDS OF T HE APPEAL RAISED BY THE ASSESSEE. THUS, THE GROUNDS OF ASSESSEE ARE ALLOWED FOR STATISTICAL PURPOSES. 7. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOWE D FOR STATISTICAL PURPOSES. ORDER PRONOUNCED ON THE 6 TH DAY OF FEBRUARY, 2019. S SD/- ( ANIL CHATURVEDI ) ' / ACCOUNTANT MEMBER PUNE; DATED : 6 TH FEBRUARY, 2019. YAMINI #$%&'(' % / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT 3. 4. 5 6. CIT(A)-8, PUNE. PR. CIT-5, PUNE. '#$ %%&',) &', *+ / DR, ITAT, SMC PUNE; $-.// GUARD FILE. / BY ORDER // TRUE COPY // // 012%3&4 / SR. PRIVATE SECRETARY ) &' , / ITAT, PUNE.