SHYAMSUNDAR MAHESWARI SUBHAM MAHESWARI, GUNTUR V. COMMISSIONER OF INCOME TAX (APPEALS), NFAC, DELHI

ITA 180/VIZ/2024

• Counselvise Citation: [2024] 130 COUNSELVISE.COM (IT) 5127 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 4 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-09-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 02-09-2024
• Assessment Year: 2013-2014
• Appeal Filed On: 25-04-2024
• Result in Favour of: Assessee
• Court: TRIBUNAL

Judgement Text

आयकरअपीलीयअधिकरण,धिशाखापटणमपीठ,धिशाखापटणम INTHEINCOMETAXAPPELLATETRIBUNAL VISAKHAPATNAMBENCH,VISAKHAPATNAM श्द ु व्वआरएलरेडी,नाधयकसदस BEFORESHRIDUVVURURLREDDY,HON’BLEJUDICIALMEMBER आयकरअपीलसं./I.T.A.No.180/VIZ/2024 (धििाधरणिरध/AssessmentYear:2013-14) ShyamSunderMaheshwari SubhamMaheshwari 4-4-141,7 th Line ChandramouliNagar Guntur–522007,AndhraPradesh [PAN:AVDPS7940P] v. IncomeTaxOfficer–Ward–2(1) Guntur-522007 (अपीलार्/Appellant)(प्र्/Respondent) करदाताकाप्त्ि्िध /AssesseeRepresentedby: None राजसकाप्त्ि्िध/DepartmentRepresentedby: Dr.AparnaVilluri,Sr.AR सुिवाईसमापहोिेक््त्ि / DateofConclusionofHearing : 03.09.2024 घोषणाक्तार्ख /DateofPronouncement : 05.09.2024 आदेश/ORDER PERSHRIDUVVURURLREDDY,JUDICIALMEMBER: 1.ThisappealisfiledbytheassesseeagainsttheorderofLearned CommissionerofIncomeTax(Appeals),[hereinafterinshort “Ld.CIT(A)”],NationalFacelessAppealCentre(NFAC),DelhiinDIN& OrderNo.ITBA/NFAC/S/250/2023-24/1061812956(1)dated01.03.2024 I.T.A.No.180/VIZ/2024 ShyamSunderMaheshwariSubhamMaheshwari PageNo.2 arisingoutoforderpassedUndersection147r.w.s.144oftheIncome TaxAct,1961(inshort‘Act’)dated21.09.2021fortheA.Y.2013-14. 2.Brieflystatedfactsofthecasearethat,assesseeisanindividual derivesincomefromsalary,businessandothersources.Noticeunder section148oftheActwasissued,furtheranoticeundersection142was alsoissued.However,theapplicantcouldnotfileanyreplyforthenotices issuedbytheRevenueAuthoritiesduetoCovid-19Pandemic.Thereafter theassessmentundersection144/147wascompletedbytheAssessing OfficerandmadeanadditionofRs.27,00,000/-onaccountofundisclosed incomefromthehead“incomefromothersources”.Duringtheyear underconsiderationassesseehadreceivedloanamountofRs.20,00,000/- fromM/s.EmkayConsultanton20.07.2012andM/s.KaranMercantilePvt LtdofRs.7,00,000/-ontheevendate.Thismoneywasurgentlyneeded bytheassesseeformatrimonialsettlementwithAditiSharma.Asthe amountwaspaidtoAditiSharmaasapartofappellantmatrimonial settlement.Therefore,theassesseeisnotabeneficiaryofthetransaction inquestion.Hencethefundsarenotatalltaxableinthehandsofthe assessee.Therefore,theAssessingOfficerisnotatallcorrecttomade additionofRs.27,00,000/-. I.T.A.No.180/VIZ/2024 ShyamSunderMaheshwariSubhamMaheshwari PageNo.3 3.Onbeingaggrieved,assesseepreferredanappealbeforeLd.CIT(A) buttheappellantevenafterreceiptofthehearingnoticesonvariousdates buthedidnotfileanysupportingdocumentsonhiscontentionsasper thegroundsofappealraisebyhim.Therefore,theLd.CIT(A)disposed offthisappealbasedonthemeritsavailableonrecord. 4.Onbeingaggrieved,assesseepreferredanappealbeforemeand raisedfollowinggroundsofappeal:- “1.FORTHATtheorderoftheAuthoritiesbelowisbadinLaw anddevoidofanymeritandliabletobestruckdowninAppeal. 2.FORTHATLd.CIT(A)inanyevent,didnotadjudicatethe groundsofappealanddidnotgothroughassessmentrecordsand theothermaterialsavailableonrecordandhehascapriciouslyand arbitrarilydismissedtheappealwithoutapplyinghismindin appellant'scase. 3.FORTHATtheCIT(A)erredinlawininvokingprovisionsof Section68inyourappellant’scasealthoughthepetitioner maintainednoBooksOfAccountsandaccordingly,Section68hasno applicationinthiscase 4.FORTHATtheLd.AppellateAuthoritytotallydisregardedthe materialavailableonrecordandmerelyreliedupontheinvestigation reportthattheassesseeisabeneficiaryofRs.27,00,000/-of accommodationloan. 5.FORTHATtheassessmentwasframedduringthehighest Covid-19waveandwhentheentirecountrywasunderlockdown andtheassesseecouldnotrespondintheassessmentstagebefore theAssessingofficerduetopandemicconditionprevailedatthat time. 6.FORTHATattheAppellateStagetheassessmentwasframed withoutgivingtheappellantanopportunityofbeingheardasthe hearingnoticeswassentthroughe-mailwhichremainunnoticedas I.T.A.No.180/VIZ/2024 ShyamSunderMaheshwariSubhamMaheshwari PageNo.4 theappellantwasnotconversantaboutthenewsystemofe- proceedingandthee-appeal, 7.FORTHATthereopeningofthecaseisbadinLawontheface oftheorderofassessmentasnoreasonsforreopeningwassupplied totheappellantforrebuttalandtheAuthoritycompletelyreliedupon theinvestigationwin$reportwithoutapplicationofindependent mind. 8.FORTHATfromtheorderframedbytheAuthoritybelowitis clearthattheassesseehasreceivedloanfundfromdifferent corporateentitywhoareassessedtotaxregularlyandadditionsif anyistobemadeinthehandsoftheentitiesprovidedloansi.e. EmkayConsultants. 9.FORTHATtheappellantiscertainlynotthebeneficiaryof thesaidfundasthefundwasimmediatelytransferredtohiswifefor matrimonialsettlement. 10.FORTHATinviewofdecisionsoftheHon'bleITATKolkatain thecaseofITOWard-12(2)vs.M/S.HappyStructurePvt.Ltd,the appellantisnotliabletobeassessedforthedisputedfundas M/S.EmkayConsultantsareregularlyassessedtotaxandcashwas notdepositedintheA/coftheLoanprovider.Astheloancreditors hasbeenassessedtotaxu/s143(3)oftheITActt hereisno doubt aboutthesourceofthefundinquestionunderthehandsofthe Appellant.” 5.Inspiteofissueofnoticenoneappearedonbehalfofassesseenor anyadjournmentwassought.Therefore,Iproceedtodisposeofthis appealonhearingtheLd.DR. 6.Attheoutset,Ld.DepartmentalRepresentative[hereinafterinshort “Ld.DR”]hasbroughttomynoticethattheassesseehasnotparticipated theproceedingsbeforetheAssessingOfficerorbeforetheLd.CIT(A)and shepleadedtoconfirmtheorderspassedbytherevenueAuthorities. I.T.A.No.180/VIZ/2024 ShyamSunderMaheshwariSubhamMaheshwari PageNo.5 7.HeardLd.DRandperusedthematerialavailableonrecord.Asper therecordnoticesundersection142and148oftheActwereissuedand duetoCovid-19pandemicassesseenotabletoparticipatethe proceedingsbeforetheRevenueAuthorities.Therefore,consideringthe factsandcircumstancesofthecaseandinordertomeettheprinciplesof naturaljustice,Iamoftheviewthatitisafitcasetoremitthematter backtothefileoftheLd.CIT(A)forfreshconsiderationandtheassessee isdirectedtocooperatewiththeproceedingsbeforetheLd.CIT(A)and inturnLd.CIT(A)callforremandreport,ifnecessary,anddisposeoff thecaseonmerits.Therefore,thegroundsraisedbytheassesseeareallowed forstatisticalpurposes. 8.Intheresult,appealoftheassesseeisallowedforstatistical purposes. Orderpronouncedintheopencourton05 th September,2024. Sd/- ( द ु व्व आर.एलरेडी) (DUVVURURLREDDY) नाधयकसदस/JUDICIALMEMBER Dated:.05.09.2024 Giridhar,Sr.PS I.T.A.No.180/VIZ/2024 ShyamSunderMaheshwariSubhamMaheshwari PageNo.6 आदेशक्प्त्ि्िअगे्षत /Copyoftheorderforwardedto:- 1. ्ििाधारत्/TheAssessee : ShyamSunderMaheshwariSubham Maheshwari 4-4-141,7 th Line ChandramouliNagar Guntur–522007,AndhraPradesh 2. राजस/TheRevenue : IncomeTaxOfficer–Ward–2(1) Guntur-522007 3.ThePrincipalCommissionerofIncomeTax 4. ्वभाग्यप्त्ि्ि,आयकरअपीलीयअधिकरण,धिशाखापटणम/DR,ITAT,Visakhapatnam 5.TheCommissionerofIncomeTax 6. गारधफ़ाईि/Guardfile //TrueCopy// आदेशािुसार/BYORDER Sr.PrivateSecretary ITAT,Visakhapatnam