Nazia K.K., Palakkad V. DCIT, Thrissur

ITA 18/COCH/2011

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 64734 (ITAT-COCHIN)
• Duration Of Justice: 1 year(s) 6 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-08-2012
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 07-08-2012
• Assessment Year: 2002-2003
• Appeal Filed On: 14-01-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: A S BINDHU
• Assessee Lawyers: T M SREEDHARANSR
• Keywords: Gift; Reasonable cause

Judgement Text

1 ITA NOS.18TO21/COCH/2011 IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH, COCHIN BEFORE SHRI N.R.S. GANESAN (JM) AND SHRI B.R. BASKARA N(AM) I.T.A NO. 18/COCH/2011 - A.Y. 2002-03 I.T.A NO. 19/COCH/2011 - A.Y. 2003-04 I.T.A NO. 20/COCH/2011 - A.Y. 2004-05 I.T.A NO. 21/COCH/2011 - A.Y. 2006-07 NAZIA K.K. VS THE DY.CIT, CENT.CIR. PROP M/S STEEL INDIA THRISSUR KALLADIPATTA PATTAMBI PAN : AAMPU7141C (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI T.M. SREEDHARAN, SR.COUNSEL RESPONDENT BY : MS. A.S. BINDHU DATE OF HEARING : 07-08-2012 DATE OF PRONOUNCEMENT : 10-08-2012 O R D E R PER N.R.S. GANESAN (JM) ALL THE FOUR APPEALS OF THE ASSESSEE ARE DIRECTED AGAINST THE COMMON ORDER PASSED BY THE COMMISSIONER OF INCOME-TAX(A)-I, KOCHI DATED 29-09-2010 FOR THE ASSESSMENT YEARS 2002-03, 2003-04, 2004-05 & 2 006-07. SINCE COMMON ISSUE ARISES FOR CONSIDERATION IN ALL THE APPEALS W E HEARD THEM TOGETHER AND DISPOSE OF THE SAME BY THIS COMMON ORDER. 2 ITA NOS.18TO21/COCH/2011 2. THERE WAS A DELAY OF 20 DAYS IN FILING THESE APP EALS. THE ASSESSEE FILED AN AFFIDAVIT TOGETHER WITH AN APPLICATION FOR CONDONAT ION OF DELAY. SHRI T.M. SREEDHARAN, THE LD.SENIOR COUNSEL SUBMITTED THAT TH E ASSESSEE WAS UNDERGOING TREATMENT AND SURGERY IN SEVANA HOSPITAL, PATTAMBI. THE ASSESSEE HAS ALSO FILED A CERTIFICATE FROM THE CONCERNED SURGEON TO SHOW THAT HE WAS ADMITTED IN THE HOSPITAL ON 20-12-2010 AND DISCHARGED ON 04-01-2011. T HEREFORE, ACCORDING TO THE LD.SENIOR COUNSEL THERE WAS A REASONABLE CAUSE FOR NOT FILING THE APPEALS WITHIN THE PRESCRIBED TIME LIMIT. WE HEARD, MS. A. S. BINDU, THE LD.DR ALSO. THE LD.DR SUBMITTED THAT THERE IS NO REASONABLE CAUSE F OR CONDONING THE DELAY. 3. WE HAVE CONSIDERED THE SUBMISSIONS ON EITHER SID E AND ALSO PERUSED THE MATERIAL AVAILABLE ON RECORD. THE ASSESSEE HAS FIL ED CERTIFICATE FROM THE SURGEON TO SHOW THAT SHE UNDERWENT SURGERY IN SEVANA HOSPIT AL, PATTAMBI. THIS FACT IS NOT DISPUTED BY THE REVENUE. THEREFORE, WE FIND THAT T HERE IS REASONABLE CAUSE WHICH PREVENTED THE ASSESSEE FROM FILING THE APPEAL S WITHIN THE PRESCRIBED PERIOD. THEREFORE, THE DELAY IN FILING THE APPEALS IS CONDONED AND ALL THE FOUR APPEALS OF THE ASSESSEE ARE ADMITTED. 4. NOW COMING TO THE MERIT OF THE CASE, SHRI T.M. S REEDHARAN, THE LD.SENIOR COUNSEL SUBMITTED THAT THE ONLY ISSUE ARISES FOR CO NSIDERATION IS GIFTS / LOANS RECEIVED FROM THE FRIENDS AND RELATIVES. THE LD.SE NIOR COUNSEL SUIBMITTED THAT THE ASSESSEE HAS FILED CONFIRMATION LETTERS FROM SHRI K. K. ALI, SHRI FIROZ KHAN, SHRI MOHD ABDUL JALEEL AND SHRI K.K. ABDUL RAHIMAN. HOWE VER, THE SAME WAS NOT ADMITTED BY THE COMMISSIONER OF INCOME-TAX(A). THE LD.REPRESENTATIVE FURTHER SUBMITTED THAT IN RESPECT OF OTHER PERSONS, THE ASS ESSEE HAS FILED CONFIRMATION LETTERS BEFORE THIS TRIBUNAL. ACCORDING TO THE LD. SENIOR COUNSEL, THE ASSESSEE HAD NO OCCASION TO PRODUCE THE CONFIRMATION LETTERS BEF ORE THE LOWER AUTHORITIES. 3 ITA NOS.18TO21/COCH/2011 THEREFORE, THE LD.SENIOR COUNSEL SUBMITTED THAT AN OPPORTUNITY MAY BE GIVEN TO THE ASSESSEE TO PROVE THE CREDITS BEFORE THE ASSESS ING OFFICER. 5. ON THE CONTRARY, MS. A.S. BINDHU, THE LD.DR SUBM ITTED THAT THE ASSESSING OFFICER HAS GIVEN SUFFICIENT OPPORTUNITY TO THE ASS ESSEE. HOWEVER, THE ASSESSEE COULD NOT PRODUCE ANY CONFIRMATION LETTER BEFORE TH E ASSESSING OFFICER. THEREFORE, THE FOUR CONFIRMATION LETTERS SAID TO BE FILED BY THE ASSESSEE BEFORE THE COMMISSIONER OF INCOME-TAX(A) WERE RIGHTLY REJEC TED. THE REMAINING CREDITORS / DONORS COULD NOT GIVE THE CONFIRMATION LETTERS WHEN THE PROCEEDINGS WERE PENDING BEFORE THE ASSESSING OFFICER. THEREFO RE, ACCORDING TO THE LD.REPRESENTATIVE, AT THIS STAGE, THE ADDITIONAL EV IDENCE FILED BY THE ASSESSEE IN THE FORM OF CONFIRMATION LETTERS CANNOT BE ACCEPTED . 6. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS AND ALS O PERUSED THE MATERIAL AVAILABLE ON RECORD. ADMITTEDLY THERE WAS A SEARCH AT THE PREMISES OF THE ASSESSEE ON 06-09-2007. THE STATEMENT WAS RECORDED U /S 132(4) AND THE INCRIMINATING MATERIALS WERE ALSO FOUND. THE ASSES SEE ADMITTEDLY FILED CONFIRMATION LETTERS BEFORE COMMISSIONER OF INCOME-T AX(A) FROM FOUR CREDITORS / DONORS. IN RESPECT OF OTHER CREDITORS / DONORS THE ASSESSEE COULD NOT FILE THE SAME BEFORE THE LOWER AUTHORITIES. HOWEVER, THE SA ME ARE FILED BEFORE THIS TRIBUNAL. THE FACT REMAINS IS THAT THE ASSESSEE GO T THE CONFIRMATION LETTERS FROM THE DONORS / CREDITORS. THEREFORE, THIS TRIBUNAL I S OF THE OPINION THAT THE CONFIRMATION LETTERS FILED BY THE ASSESSEE BEFORE T HE COMMISSIONER OF INCOME- TAX(A) AND THIS TRIBUNAL HAVE TO BE EXAMINED BY THE ASSESSING OFFICER. GIVING ONE MORE OPPORTUNITY TO THE ASSESSEE TO PRODUCE THE CON FIRMATION LETTERS BEFORE THE LOWER AUTHORITY WOULD NOT PREJUDICE THE INTEREST OF THE REVENUE IN ANY WAY. THIS TRIBUNAL IS OF THE OPINION THAT THE INTENTION OF TH E LEGISLATURE IN ENACTING THE 4 ITA NOS.18TO21/COCH/2011 INCOME-TAX ACT IS TO COMPUTE THE CORRECT TAXABLE INC OME. BY GIVING ONE MORE OPPORTUNITY TO THE ASSESSEE TO PRODUCE THE CONFIRMA TION LETTERS BEFORE THE LOWER AUTHORITY WOULD DEFINITELY PROMOTE THE CAUSE OF JUS TICE AND THE ADMINISTRATION OF INCOME-TAX ACT IN THE RIGHT PERSPECTIVE. THEREFORE, THIS TRIBUNAL IS OF THE OPINION THAT THE CONFIRMATION LETTERS FILED BY THE ASSESSEE BEFORE THE COMMISSIONER OF INCOME-TAX(A) AND THIS TRIBUNAL NEED TO BE EXAMINED BY THE ASSESSING OFFICER. ACCORDINGLY THE ORDERS OF THE LOWER AUTHORITIES ARE SET ASIDE AND THE ENTIRE ISSUE OF GIFTS / LOANS IS REMITTED BACK TO THE FILE OF THE ASSESSING OFFICER. THE ASSESSING OFFICER SHALL EXAMINE THE ISSUE OF LOANS / GIFTS IN ACCORDANCE WITH LAW AFTER CONSIDERING THE CONFIRMATION LETTERS FILED BY THE A SSESSEE BEFORE THE CIT(A) AND THIS TRIBUNAL AND THEREAFTER DECIDE THE ISSUE IN AC CORDANCE WITH LAW AFTER GIVING A REASONABLE OPPORTUNITY TO THE ASSESSEE. 7. IN THE RESULT, ALL THE FOUR APPEALS OF THE ASSES SEE ARE ALLOWED FOR STATISTICAL PURPOSE. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 10 TH AUGUST, 2012. SD/- SD/- (B.R. BASKARAN) (N.R.S. GANESAN) ACCOUNTANT MEMBER JUDICIAL MEMBER COCHIN, DT : 10 TH AUGUST, 2012 PK/- COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE COMMISSIONER OF INCOME-TAX 4. THE COMMISSIONER OF INCOME-TAX(A) 5. THE DR (TRUE COPY) BY ORDER ASSTT. REGISTRAR, INCOME-TAX APPELLATE TRIBUNAL, COCHIN BENCH