Shri Gautamkumar Jain, Surat V. The Income tax Officer,Ward-5(1), Surat

ITA 1739/AHD/2010

• Counselvise Citation: [2011] 134 COUNSELVISE.COM (IT) 6845 (ITAT-AHMEDABAD)
• Duration Of Justice: 10 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-04-2011
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Next Hearing Date: 15-04-2011
• Assessment Year: 2006-2007
• Appeal Filed On: 24-05-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: M K PATEL
• Keywords: Gift; Opportunity of being heard; Set aside
• Section: 143(3); 68

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AT AHMEDABAD, C BENCH (BEFORE S/SHRI G.D. AGARWAL, VICE-PRESIDENT AND D.K. TYAGI, JUDICIAL MEMBER) ITA NO.1739/AHD/2010 [ASSTT. YEAR : 2006-2007] SHRI GAUTAMKUMAR JAIN PROP. OF M/S.VIMAL SILK MILLS S-1032, HARI OM TEXTILE MARKET RING ROAD, SURAT. PAN : ACBPJ 6238 Q VS. ITO, WARD-5(1) SURAT. (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI M.K. PATEL REVENUE BY : SHRI RAJESH OJHA O R D E R PER BENCH: THIS IS ASSESSEES APPEAL AGAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX(APPEALS)-IV, SURAT OUT O F THE ORDER OF THE ASSESSING OFFICER PASSED UNDER SECTION 143(3) THE I NCOME TAX ACT, 1961. 2. THE ONLY GROUND RAISED IN THIS APPEAL IS AGAINST THE ADDITION OF RS.7,00,000/- FOR UNEXPLAINED GIFT ADDED UNDER SECT ION 68 OF THE INCOME TAX ACT. 3. AT THE TIME OF HEARING BEFORE US, IT IS SUBMITTE D BY THE LEARNED COUNSEL THAT DURING THE ACCOUNTING YEAR RELEVANT TO THE ASSESSMENT YEAR UNDER CONSIDERATION, THE ASSESSEE HAD RECEIVED THE GIFT OF RS.7,00,000/- FROM TWO RELATIVES VIZ. SHRI MOOLCHAND MERATWAL OF RS.3,00,000/- AND FROM SHRI MAHAVIR JAIN GIFT OF RS.4,00,000/-. THAT BOTH THE DONORS WERE NEAR RELATIVES OF THE ASSESSEE. THAT DURING THE AS SESSMENT PROCEEDINGS, THE AO ASKED CERTAIN DETAILS WHICH IN TURN THE ASSE SSEE ASKED FROM THE ITA NO.1739/AHD/2010 -2- DONORS. IT TOOK SOME TIME TO RECEIVE THESE DETAILS AND EVEN THE DONORS SUPPLIED THESE DETAILS DIRECTLY TO THE AO BY FAX ON 26-12-2008. THESE FACTS WERE DULY RECORDED AT PAGE NO.4 OF THE CIT(A) ORDER. HOWEVER, BEFORE THE RECEIPT OF THE ABOVE DETAILS, THE AO HAD ALREADY COMPLETED THE ASSESSMENT ON 24-12-2008 THEREFORE HE COULD CONSIDE R THE ABOVE DETAILS. HE THEREFORE SUBMITTED THAT THE MATTER MAY BE SET A SIDE TO THE FILE OF THE AO TO CONSIDER THESE DETAILS. HE ALSO STATED THAT THE ASSESSEE IS READY TO SUBMIT ANY OTHER DETAILS OR INFORMATION IN THIS REG ARD AS MAY BE REQUIRED BY THE AO. THE LEARNED DR ON THE OTHER HAND, RELIE D UPON THE ORDERS OF THE AUTHORITIES BELOW AND HE HAS STATED THAT ADEQUA TE OPPORTUNITIES WERE ALREADY ALLOWED BY THE AO DURING THE ASSESSMENT PRO CEEDINGS. 4. WE HAVE CAREFULLY CONSIDERED ARGUMENTS OF BOTH T HE SIDES AND PERUSED THE MATERIAL PLACED BEFORE US. IN OUR OPIN ION, IT WOULD MEET ENDS OF JUSTICE IF THE ORDERS OF THE AUTHORITIES BELOW O N THIS POINT IS SET ASIDE AND MATTER IS RESTORED BACK TO THE FILE OF THE AO F OR RE-EXAMINATION. WE THEREFORE SET AIDE THE MATTER BACK TO THE FILE OF T HE AO AND DIRECT HIM TO ALLOW ADEQUATE OPPORTUNITY OF BEING HEARD TO THE AS SESSEE. WE ALSO DIRECT THE ASSESSEE TO PRODUCE ALL THE EVIDENCES IN SUPPOR T OF THE GIFTS CLAIMED TO HAVE BEEN RECEIVED BY HIM. THE AO WILL RE-ADJUDICA TE THE MATTER IN ACCORDANCE WITH LAW. 5. IN RESULT, ASSESSEES APPEAL IS DEEMED TO BE ALL OWED FOR STATISTICAL PURPOSE. ORDER PRONOUNCED IN OPEN COURT ON 15 TH APRIL, 2011 SD/- SD/- (D.K. TYAGI) JUDICIAL MEMBER (G.D. AGARWAL) VICE-PRESIDENT ITA NO.1739/AHD/2010 -3- PLACE : AHMEDABAD DATE : 15-04-2011 C OPY OF THE ORDER FORWARDED TO: 1) : APPELLANT 2) : RESPONDENT 3) : CIT(A) 4) : CIT CONCERNED 5) : DR, ITAT. BY ORDER DR/AR, ITAT, AHMEDABAD