Shri Ashokkumar V.Patel, Baroda V. The Income tax Office,Ward-2(3), Baroda

ITA 1827/AHD/2012

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 0589 (ITAT-AHMEDABAD)
• Duration Of Justice: 4 year(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-09-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2007-2008
• Appeal Filed On: 21-08-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Unexplained cash credit; Opportunity of being heard; Principle of natural justice; Reasonable cause
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD SMC BENCH AHMEDABAD BEFORE SHRI S.S. GODARA, JM, & SHRI MANISH BORAD , AM. ITA NO. 1827/AHD/2012 ASST. YEAR: 2007-08 SHRI ASHOKKUMAR V. PATEL, 516, RAG DUPLEX, NR. GIDC WORK SHOP, GORWA ROAD, VADODARA. VS. ITO, WD-2(3), BARODA. APPELLANT RESPONDENT PAN ALGPP 4759E APPELLANT BY SHRI MANISH J. SHAH, AR RESPONDENT BY SHRI PRASOON KABRA, SR.DR DATE OF HEARING: 15/9/2016 DATE OF PRONOUNCEMENT: 16/9/2016 O R D E R PER MANISH BORAD, ACCOUNTANT MEMBER . THIS APPEAL OF ASSESSEE FOR ASST. YEAR 2007-08 IS DIRECTED AGAINST THE ORDER OF LD. CIT(A)-II, BARODA, DATED 0 1.02.2012 VIDE APPEAL NO.CAB/II-385/09-10 PASSED AGAINST ORDER U/S 143(3) OF THE IT ACT, 1961 (IN SHORT THE ACT) FRAMED ON 31.12.2009 B Y ITO, WD-2(3), BARODA. ASSESSEE HAS RAISED FOLLOWING GROUNDS OF AP PEAL:- 1. THE LD. COMMISSIONER OF INCOME-TAX (APPEALS) -II, B ARODA HAS ERRED IN FACTS AND IN LAW IN CONFIRMING THE ACTION OF THE LD. A.O. IN MAK ING AN ADDITION TO THE EXTENT OF RS. 41,826/- HOLDING THE SAME AS UNEXPLAINED AGRICU LTURAL INCOME. THE IMPUGNED ADDITION BEING COMPLETELY IN DISREGARD TO AVAILABLE FACTS AND BEING BAD IN LAW IS PRAYED TO BE DELETED. ITA NO. 1827/AHD/2012 ASST. YEAR 2007-08 2 2. THE LD. COMMISSIONER OF INCOME-TAX (APPEALS) -II , BARODA HAS ERRED IN FACTS AND IN LAW IN CONFIRMING THE ACTION OF THE ID. A.O. IN MAK ING AN ADDITION OF RS. 10,08,000/- AS UNEXPLAINED CASH CREDIT BEING THE AMOUNT O CASH DEPOSITED IN THE BANK ACCOUNT DISREGARDING THE EVIDENCES AND EXPLANATION OF THE A PPELLANT. THE IMPUGNED ADDITION BEING COMPLETELY IN DISREGARD TO AVAILABLE FACTS AN D BEING BAD IN LAW IS PRAYED TO BE DELETED. 3. YOUR APPELLANT CRAVES THE LIBERTY TO ADD, ALTER , AMEND OR DELETE ANY OR ALL OF THE ABOVE GROUNDS OF APPEAL. 2. THIS APPEAL IS TIME BARRED BY 74 DAYS. ON BEING ASKED ABOUT THE REASON FOR DELAY IN FILING THE APPEAL LD. AR TO OK US THROUGH THE AFFIDAVIT FILED BY MR. ASHOKKUMAR V. PATEL, DATED 2 7 TH JUNE, 2016. ON GOING THROUGH THE AFFIDAVIT WE OBSERVE THAT ASSESSE E IS A FARMER AND MAINLY INVOLVED IN THE WORK AS AGRICULTURIST AND UN DERTAKING AGRICULTURAL ACTIVITIES. MAY AND JUNE ARE THE MONTH S IN WHICH AGRICULTURAL ACTIVITIES ARE AT ITS PEAK AND ASSESSE E HAS TO RESIDE DURING THIS PERIOD AT HIS NATIVE PLACE AT VILLAGE K INKHLOD. DURING THIS PERIOD WHEN ASSESSEE WAS STAYING AT HIS NATIVE PLAC E AT VILLAGE KINKHLOD NONE WAS THERE TO RECEIVE THE COMMUNICATIO N AT BARODA ADDRESS WHERE THE ORDER OF LD. CIT(A) DATED 1.2.201 2 WAS RECEIVED. WE FIND THAT IN THE GIVEN FACTS AND CIRCUMSTANCES A S REFERRED IN THE AFFIDAVIT ASSESSEE HAD REASONABLE CAUSE DUE TO WHIC H HE COULD NOT FILE THE APPEAL IN TIME. WE THEREFORE, CONDONE THE DELAY IN FILING THE APPEAL AND PROCEED TO ADJUDICATE THE APPEAL. 3. BRIEFLY STATED FACTS OF THE CASE ARE THAT THE AS SESSEE IS AN INDIVIDUAL. HIS MAIN SOURCE OF INCOME IS FROM HOUSE PROPERTY. HE FILED THE RETURN OF INCOME ON 29.11.2007 DECLARING TOTAL INCOME AT RS.1,15,230/-. THE CASE WAS SELECTED FOR SCRUTINY A SSESSMENT AND ITA NO. 1827/AHD/2012 ASST. YEAR 2007-08 3 INCOME WAS ASSESSED AT RS.12,48,230/- AFTER MAKING ADDITION OF RS.11,33,000/- ON ACCOUNT OF UNEXPLAINED AGRICULTUR AL INCOME AT RS.1,25,000/- AND UNEXPLAINED CASH DEPOSIT IN BANK ACCOUNT AT RS.10,08,000/-. 4. AGGRIEVED, ASSESSEE WENT IN APPEAL BEFORE LD. CI T(A) BUT NONE APPEARED BEFORE THE FIRST APPELLATE AUTHORITY. ORDE R WAS PASSED EX PARTE PARTLY ALLOWING THE APPEAL OF THE ASSESSEE. 5. NOW THE ASSESSEE IS IN APPEAL BEFORE THE TRIBUNA L. 6. AT THE OUTSET THE LD. AR SUBMITTED THAT DUE TO S OME UNAVOIDABLE CIRCUMSTANCES ASSESSEES LD. AR WAS NOT ABLE TO MAKE SUBMISSION BEFORE LD. CIT(A) IN SUPPORT OF THE GROU NDS RAISED AS A RESULT OF WHICH EX PARTE ORDER WAS PASSED BY THE FI RST APPELLATE AUTHORITY. LD. AR MADE A REQUEST FOR SETTING ASIDE THIS APPEAL AND THE ISSUE THEREIN TO THE FILE OF LD. CIT(A) FOR FRESH A DJUDICATION AND THE LD. AR ALSO MADE A POSITIVE NOTE THAT ON THE OPPORTUNIT Y BEING GRANTED BY LD. CIT(A) HE WILL FILE SUBMISSIONS. 7. ON THE OTHER HAND, LD. DR HAD NO OBJECTION IN CA SE THE MATTER IS SET ASIDE TO THE FILE OF LD. CIT(A). 8. WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE MATERIAL ON RECORD. IN THE GIVEN FACTS AND CIRCUMSTANCES WHE REIN THE EX PARTE ORDER HAS BEEN PASSED BY LD. CIT(A), WE ARE OF THE VIEW THAT IN THE INTEREST OF NATURAL JUSTICE, ASSESSEE DESERVES ONE MORE OPPORTUNITY OF ITA NO. 1827/AHD/2012 ASST. YEAR 2007-08 4 BEING HEARD. WE ACCORDINGLY SET ASIDE THE APPEAL AN D ALL THE ISSUES TO THE FILE OF LD. CIT(A) FOR DECIDING AFRESH. NEED LESS TO MENTION THAT SUFFICIENT OPPORTUNITY OF BEING HEARD WOULD BE GIVE N TO THE ASSESSEE. APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL P URPOSES. 9. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 16 TH SEPTEMBER, 2016 SD/- SD/- (S. S. GODARA) JUDICIAL MEMBER (MANISH BORAD) ACCOUNTANT MEMBER DATED 16/9/2016 MAHATA/- COPY OF THE ORDER FORWARDED TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT CONCERNED 4. THE CIT(A) CONCERNED 5. THE DR, ITAT, AHMEDABAD 6. GUARD FILE BY ORDER ASST. REGISTRAR, ITAT, AHMEDABAD ITA NO. 1827/AHD/2012 ASST. YEAR 2007-08 5 1. DATE OF DICTATION: 15/09/2016 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE T HE DICTATING MEMBER: 16/09/2016 OTHER MEMBER: 3. DATE ON WHICH APPROVED DRAFT COMES TO THE SR. P. S./P.S.: 4. DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE TH E DICTATING MEMBER FOR PRONOUNCEMENT: __________ 5. DATE ON WHICH THE FAIR ORDER COMES BACK TO THE S R. P.S./P.S.: 6. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK: 16/9/16 7. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK: 8. THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT REGISTRAR FOR SIGNATURE ON THE ORDER: 9. DATE OF DESPATCH OF THE ORDER: