M Duraivelu, Vellore V. ITO, Ward-2, Vellore

ITA 181/CHNY/2018

• Counselvise Citation: [2018] 118 COUNSELVISE.COM (IT) 9590 (ITAT-CHENNAI)
• Duration Of Justice: 10 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-11-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2013-2014
• Appeal Filed On: 12-01-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: NIRAIMATHI AZHAGAN
• Keywords: Unexplained investment

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH, CHENNAI . . . , , ! BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI S. JAYARAMAN, ACCOUNTANT MEMBER /. I.T.A. NO. 181/CHNY/2018 / ASSESSMENT YEAR : 2013-14 SHRI M. DURAIVELU, 36A/50, KOMUTTY STREET, WALAJAPET, VELLORE DIST 632513. [PAN: AESPD 9682H] VS. THE INCOME TAX OFFICER, WARD -2, VELLORE. ( / APPELLANT) ( '#% /RESPONDENT ) ASSESSEE BY : SHRI. NIRAIMATHI AZHAGAN, CA REVENUE BY : SHRI. AR. V. SREENIVASAN, JCIT / /DATE OF HEARING : 20.11.2018 / /DATE OF PRONOUNCEMENT : 27.11.2018 / O R D E R PER S. JAYARAMAN, ACCOUNTANT MEMBER: THE ASSESSEE FILED THIS APPEAL AGAINST THE ORDER OF COMMISSIONER OF INCOME TAX (APPEALS)-13, CHENNAI IN ITA NO. 121/CIT (A)-13/13-14 DATED 19.09.2017 FOR ASSESSMENT YEAR 2013-14. 2. SHRI. M. DURAIVELU, THE ASSESSEE, AS AN INDIVIDU AL AS WELL AS IN HUF STATUS ALSO ENGAGED IN THE BUSINESS OF TRANSPORTATI ON OWNING VEHICLES, :-2-: ITA NO. 181/CHNY/2018 ADMITTED INCOME U/S. 44AE. SINCE, THE CASH DEPOSIT S IN SAVINGS BANK ACCOUNTS WHICH WERE MORE THAN THE TURNOVER, THE ASS ESSEES CASE WAS SELECTED FOR SCRUTINY. DURING THE ASSESSMENT PROCE EDINGS, THE AO GATHERED INFORMATION FROM REGIONAL TRANSPORT OFFICE . BASED UPON SUCH INFORMATION AND AFTER CONSIDERING ASSESSEES REPLY ETC COMPLETED THE ASSESSMENT DETERMINING 20% OF CREDITS IN HDFC BANK ACCOUNT AS INCOME FROM LORRY BUSINESS AND RS. 1,73,79,690/- FROM CERT AIN BANK ACCOUNTS AS AN UNEXPLAINED INVESTMENT FROM MONEY LENDING BUSINE SS. AGGRIEVED AGAINST THAT ORDER, THE ASSESSEE FILED AN APPEAL BE FORE THE CIT(A) AND THE LD. CIT(A) CONFIRMED THE ADDITIONS. AGGRIEVED AGAI NST THAT ORDER, THE ASSESSEE FILED THIS APPEAL. 3. AT THE OUTSET, THE LD. AR SUBMITTED BEFORE US T HAT THE ASSESSMENT ORDER WAS PASSED BASED ON CERTAIN INFORMATION GATHE RED FROM THE REGIONAL TRANSPORT OFFICE AND COPY OF THE SAME WAS NOT FURNI SHED TO THE ASSESSEE IN ORDER TO DEFEND HIS CASE. THEREFORE, THE ORDER O F THE LD.AO WAS PASSED BEHIND THE BACK OF THE ASSESSEE WITHOUT GIVING AN O PPORTUNITY TO DEFEND HIS CASE. HENCE, IT WAS PLEADED THAT THE MATTER MAY BE REMITTED BACK TO THE FILE OF LD. AO FOR DE-NOVA CONSIDERATION AND AL SO TO DIRECT THE LD. AO TO FURNISH A COPY OF THE INFORMATION GATHERED FROM THE REGIONAL TRANSPORT AUTHORITY ETC TO THE ASSESSEE IN ORDER TO DEFEND HI S CASE. THE LD. DR COULD NOT CONTROVERT TO THE SUBMISSION OF THE LD. A R. :-3-: ITA NO. 181/CHNY/2018 4. IN THIS REGARD, THE LD. AR INVITED OUR ATTENTION TO THE ORDERS PASSED BY THIS TRIBUNAL IN THE ASSESSEES CASE IN ITA NOS. 263 & 264/CHNY/2018 FOR ASSESSMENT YEARS 2011-12 & 2012-13 AND IN THE H UF CASE IN ITA NOS. 265 & 266/CHNY/2018FOR ASSESSMENT YEARS 2011-12 & 2 012-13, BOTH DATED 09.07.2018. 5. WE HEARD THE RIVAL SUBMISSIONS AND GONE THROUGH THE RELEVANT MATERIAL. THE RELEVANT PORTION OF THE ORDER OF THI S TRIBUNAL, SUPRA, IS EXTRACTED AS UNDER: 6. WE HAVE HEARD THE RIVAL SUBMISSIONS AND CAREFUL LY PERUSED THE MATERIALS ON RECORD. FROM THE FACTS OF THE CASE IT APPEARS THAT THE ASSESSEE WAS NOT PROVIDED WITH THE INFORMATION GATH ERED BY THE LD.REVENUE AUTHORITIES FROM THE REGIONAL TRANSPORT AUTHORITIES BASED ON WHICH THE LD.AO HAD MADE ADDITION IN THE HANDS OF T HE ASSESSEES WHICH WAS FURTHER CONFIRMED BY THE LD.CIT(A). THIS ACTION OF THE LD.REVENUE AUTHORITIES IS NOT JUSTIFIABLE. WHEN THE LD.REVENUE AUTHORITIES HAD MADE ADDITIONS ON THE BASIS OF THE INFORMATION GATHERED FROM THE REGIONAL TRANSPORT OFFICE A COPY OF THE SAME OUGHT TO HAVE B EEN PROVIDED TO THE ASSESSEES IN ORDER TO DEFEND THEIR CASE. IN THIS SI TUATION, WE DO NOT HAVE ANY OPTION BUT TO REMIT BACK THE MATTER TO THE FILE OF LD.AO FOR FRESH CONSIDERATION. ACCORDINGLY WE HEREBY REMIT ALL THE APPEALS OF THE ASSESSEES BACK TO THE FILE OF LD.AO FOR FRESH CONSI DERATION AND FURTHER DIRECT THE LD.AO TO FURNISH A COPY OF THE INFORMATI ON GATHERED FROM THE REGIONAL TRANSPORT OFFICE TO THE ASSESSEES AND THER EAFTER PASS APPROPRIATE ORDER IN ACCORDANCE WITH MERIT AND LAW AFFORDING ENOUGH OPPORTUNITY TO THE ASSESSES OF BEING HEARD. THE ASS ESSEES ARE ALSO HEREBY DIRECTED TO CO-OPERATE WITH THE PROCEEDINGS BEFORE THE LD.REVENUE AUTHORITIES FAILING WHICH THE LD.REVENUE AUTHORITIES SHALL BE AT LIBERTY TO PASS APPROPRIATE ORDERS IN ACCORDANCE WITH MERIT AND LAW BASED ON THE MATERIALS ON RECORD. :-4-: ITA NO. 181/CHNY/2018 7. IN THE RESULT ALL THE APPEALS OF THE ASSESSEES A RE ALLOWED FOR STATISTICAL PURPOSES. FOLLOWING THE CO-ORDINATE BENCH DECISION, SUPRA, WE REMIT THE ISSUE BACK TO THE AO FOR A FRESH EXAMINATION ON THE SAME LINES IN WHICH THE CO-ORDINATE BENCH HAS DIRECTED TO DO, SUPRA. 6. IN THE RESULT, THE ASSESSEES APPEAL IS TREATED AS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED ON TUESDAY, THE 27 TH DAY OF NOVEMBER, 2018 AT CHENNAI. SD/- ( . . . ) (N.R.S. GANESAN) /JUDICIAL MEMBER SD/- ( ) (S. JAYARAMAN) /ACCOUNTANT MEMBER /CHENNAI, 4 /DATED: 27 TH NOVEMBER, 2018 JPV /'5676 /COPY TO: 1. % / APPELLANT 2. '#% /RESPONDENT 3. 9 ) ( /CIT(A) 4. 9 /CIT 5. 6' /DR 6. < /GF