Shri. Bhaskaarrao Raosaheb Shinde, Pune V. Income-tax Officer, Ward - 8(4), Pune

ITA 1815/PUN/2018

• Counselvise Citation: [2019] 118 COUNSELVISE.COM (IT) 2451 (ITAT-PUNE)
• Duration Of Justice: 3 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-03-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 06-03-2019
• Assessment Year: 2013-2014
• Appeal Filed On: 27-11-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: M K VERMA
• Keywords: Principle of natural justice
• Section: 148; 143(3)

Judgement Text

] IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH SMC, PUNE BEFORE MS. SUSHMA CHOWLA, JM AND SHRI ANIL CHATURVEDI, AM . / ITA NO.1815/PUN/2018 / ASSESSMENT YEAR : 2013-14 SHRI BHASKAARRAO RAOSAHEB SHINDE, OPP. AJMERA BUS STOP, AJMERA HOUSING COMPLEX, PIMPIRI, PUNE 411018. PAN : AKNPS5302A. . / APPELLANT V/S THE INCOME TAX OFFICER, WARD 8(4), PUNE. . / RESPONDENT ASSESSEE BY : NONE. REVENUE BY : SHRI M.K. VERMA. / 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 DATED 28.09.2018 FOR THE ASSESSMENT YEAR 2013-14. 2. THE RELEVANT FACTS AS CULLED OUT FROM THE MATERIAL ON R ECORD ARE AS UNDER :- ASSESSEE IS AN INDIVIDUAL AND STATED TO BE ENGAGED IN TH E BUSINESS OF MILK UNDER THE NAME AND STYLE OF M/S. SACHIN D UDH KENDRA. ON THE BASIS OF INFORMATION RECEIVED THAT ASSESS EE HAD DEPOSITED CASH IN THE BANK MAINTAINED WITH COSMOS BANK, NOTICE / DATE OF HEARING : 06.03.2019 / DATE OF PRONOUNCEMENT: 12.03.2019 2 ITA NO.1815/PUN/2019 U/S 148 OF THE ACT WAS ISSUED ON 21.01.2016 AND SERVED ON THE ASSESSEE. IN RESPONSE TO NOTICE U/S 148 OF THE ACT, AS SESSEE FILED RETURN OF INCOME FOR A.Y. 2013-14 ON 08.12.2016 DECLARING TO TAL INCOME OF RS.6,52,690/-. THE CASE WAS SELECTED FOR SCRUTIN Y AND THEREAFTER, ASSESSMENT WAS FRAMED U/S 143(3) R.W.S. 147 O F THE ACT VIDE ORDER DT.16.12.2016 AND THE TOTAL INCOME WAS DETERM INED AT RS.22,70,076/-. AGGRIEVED BY THE ORDER OF AO, ASSESSEE C ARRIED THE MATTER BEFORE LD.CIT(A), WHO VIDE ORDER DT.28.09.2018 (IN A PPEAL NO.PN/CIT(A)-8/ITO, WARD 8(4)/623/2018-19) DISMISSED THE APPEAL OF ASSESSEE. AGGRIEVED BY THE ORDER OF LD.CIT(A), AS SESSEE IS NOW IN APPEAL BEFORE US AND HAS RAISED THE FOLLOWING GROUNDS : 1. ON FACTS AND CIRCUMSTANCES PREVAILING IN THE CA SE AND AS PER PROVISIONS & SCHEME OF THE ACT IT BE HELD THAT THE FINAL NOTICE OF HEARING, FIXING THE COMPLIANCE ON 19.09.2018. APPA RENTLY THIS NOTICE WAS NOT RECEIVED BY THE ASSESSEE. IT IS THE REFORE PRAYED THAT ONE MORE OPPORTUNITY BE GIVEN TO THE APPELLANT. JU ST AND PROPER RELIEF MAY BE GRANTED ON THIS SCORE. 2. ASSUMING WITHOUT ADMITTING THE FINAL NOTICE OF H EARING WAS PROPERLY SERVED ON THE ASSESSEE AND NO FURTHER OPPO RTUNITY OF HEARING CAN BE GRANTED ON MERIT, ON FACTS AND CIRCU MSTANCES ETC & AS PER THE PROVISIONS OF THE ACT IT BE HELD THAT TH E ADDITIONS MADE OF RS.16,17,388/- ON ACCOUNT OF UNEXPLAINED CASH DEPOS ITED IN BANK ARE NOT IN ACCORDANCE WITH THE PROVISIONS OF THE AC T AND ADDITIONS SO MADE BE DELETED. 3. BOTH THE GROUNDS BEING INTER-CONNECTED ARE CONSIDER ED TOGETHER. 4. ON THE DATE OF HEARING, NONE APPEARED ON BEHALF OF THE ASSESSEE NOR ANY ADJOURNMENT APPLICATION WAS FILED. WE T HEREFORE PROCEED TO DISPOSE OF THE APPEAL EX-PARTE QUA THE ASSE SSEE BASED ON THE MATERIAL AVAILABLE ON RECORD AND AFTER HEARING THE LD.D.R. 3 ITA NO.1815/PUN/2019 5. DURING THE COURSE OF ASSESSMENT PROCEEDINGS, AO NOTICE D THAT THERE ARE TOTAL CASH DEPOSITS OF RS.26,60,000/- IN THE BANK ACCOUNT OF ASSESSEE MAINTAINED WITH COSMOS BANK AND HE FURTHER NOTICED THAT ASSESSEE HAD DEPOSITED THE CASH ONLY TO TRANSFER THE SAME TO THE ACCOUNT OF HIS SON FOR HIS OWN BUSINESS AND NOT FOR THE BUSINESS ACTIVITIES OF ASSESSEE AND THE DETAILS OF THE SAME WER E MENTIONED IN PARA 4.1. OF THE ASSESSMENT ORDER. ACCORDING LY, AO OPINED THAT NO CASH WAS WITHDRAWN BY THE ASSESSEE TO INCUR EXPENSES FOR HIS BUSINESS ACTIVITIES. HENCE, THE AO TREATED THE CASH DEPOSITS TO THE EXTENT OF RS.16,17,388/- AS UNEXP LAINED AND ADDED IT TO THE INCOME OF THE ASSESSEE. AGGRIEVED BY THE ORDER OF AO, ASSESSEE CARRIED THE MATTER BEFORE LD.CIT(A), WHO VIDE EX-PARTE ORDER DISMISSED THE APPEAL OF ASSESSEE. AGGRIEVED BY THE ORDER OF LD.CIT(A), ASSESSEE IS NOW IN APPEAL BEFORE US. 6. BEFORE US, LD.D.R. SUPPORTED THE ORDER OF AO AND LD.CIT(A). 7. WE HAVE HEARD THE LD.D.R. AND PERUSED THE MATERIAL ON RECORD. THE ISSUE IN THE PRESENT GROUND IS WITH RESPECT TO ADDITION OF RS.16,17,388/- BEING UNEXPLAINED CASH DEPOSITS IN THE BANK ACCOUNT OF THE ASSESSEE. THE PERUSAL 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 OPPORTUNITY OF HEARING SHOULD BE AFFOR DED TO THE PARTIES AND NO PARTY SHOULD BE CONDEMNED UNHEARD, WE ARE OF THE VIEW THAT ONE MORE OPPORTUNITY BE GRANTED TO ASSE SSEE TO PRESENT HIS CASE. WE THEREFORE RESTORE THE MATTER BAC K TO THE FILE OF LD.CIT(A) TO DECIDE THE ISSUE ON MERITS IN ACCORDANCE WITH LAW. 4 ITA NO.1815/PUN/2019 NEEDLESS TO STATE THAT LD.CIT(A) SHALL GRANT ADEQUATE OPP ORTUNITY OF HEARING TO BOTH THE PARTIES. ASSESSEE IS ALSO DIRECTED TO PROMPTLY FURNISH ALL THE DETAILS CALLED FOR BY THE LOWER AUTHORITIES. IN VIEW OF OUR DECISION TO RESTORE THE ISSUE TO LD.CIT(A), WE ARE NO T ADJUDICATING ON MERITS THE GROUNDS OF THE APPEAL RAISED BY THE ASSESSEE. THUS, THE GROUNDS OF ASSESSEE ARE ALLOWED FOR STATISTICAL PURPOSES. 8. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOWE D FOR STATISTICAL PURPOSES. ORDER PRONOUNCED ON THE 12 TH DAY OF MARCH, 2019. SD/- SD/- ( SUSHMA CHOWLA ) ( ANIL CHATURVEDI ) / JUDICIAL MEMBER ' / ACCOUNTANT MEMBER PUNE; DATED : 12 TH MARCH, 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.