P. Rajaram, Hosur V. DCIT, Salem

ITA 184/CHNY/2014

• Counselvise Citation: 18421714 RSA 2014
• Duration Of Justice: 1 year(s) 9 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-11-2015
• Appeal Filed By: Assessee
• Bench Allotted: D
• Next Hearing Date: 09-09-2015
• Assessment Year: 2008-2009
• Appeal Filed On: 20-01-2014
• Court: TRIBUNAL
• Department Lawyers: P RADHAKRISHNAN
• Assessee Lawyers: G BASKAR

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH : CHENNAI . . . , . !' , # $ % [ BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER ] ./ I.T.A.NO.184/MDS/2014 / ASSESSMENT YEAR : 2008-09 SHRI P. R A JARAM 3D 4, KRISHNA NAGAR NEAR DHARGA HOSUR 635 109 VS. THE DY. COMMISSIONER OF INCOME-TAX CIRCLE III SALEM [PAN ADLPR 5270 K ] ( &' / APPELLANT) ( ()&' /RESPONDENT) / APPELLANT BY : SHRI G. BASKAR, ADVOCATE /RESPONDENT BY : SHRI P. RADHAKRISHNAN, JCIT / DATE OF HEARING : 09 - 09 - 2015 ! / DATE OF PRONOUNCEMENT : 13 - 11 - 2015 / O R D E R PER N.R.S.GANESAN, JUDICIAL MEMBER THIS APPEAL OF THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF THE COMMISSIONER OF INCOME-TAX (APPEALS), SALEM, D ATED 31.10.2013 AND PERTAINS TO ASSESSMENT YEAR 2008-09. 2. SHRI G. BASKAR, LD. COUNSEL FOR THE ASSESSEE SUBMIT TED THAT THE APPEAL OF THE ASSESSEE WAS EARLIER DISMISSED F OR NON-PROSECUTION BY AN ORDER DATED 20.3.2014. HOWEVER, ON THE APPLI CATION MADE BY THE ASSESSEE IN M.P.NO.121/MDS/2014, THIS TRIBUNAL BY AN ORDER DATED ITA NO.184/14 :- 2 -: 8.8.2014 RECALLED THE ORDER DATED 20.3.2014 AND RES TORED THE APPEAL ON FILE. ACCORDINGLY, THE SAME IS POSTED FOR HEARI NG. 3. THE LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE ASSESSING OFFICER MADE AN ADDITION OF ` 40,98,865/- TOWARDS SIX UNSECURED LOAN CREDITORS. ACCORDING TO THE LD. COU NSEL, THE ASSESSING OFFICER CALLED FOR EVIDENCE ONLY IN RESPECT OF UNSE CURED LOANS EXCEEDING ` 4 LAKHS TO THE EXTENT OF ` 36,98,865/-. THE LD. COUNSEL SUBMITTED THAT THE ASSESSEE HAS FILED ALL THE DETA ILS. INSPITE OF THAT, THE ASSESSING OFFICER MADE THE ADDITION. ON APPEAL BY THE ASSESSEE, THE CIT(A) CONFIRMED THE ORDER OF THE ASSESSING OFF ICER WITHOUT ANY DISCUSSION OR APPRECIATION OF MATERIAL AVAILABLE ON RECORD. THEREFORE, THE LD. COUNSEL SUBMITTED THAT THE MATTER MAY BE R EMANDED BACK TO THE FILE OF THE CIT(A) FOR RECONSIDERATION. 4. WE HEARD SHRI P. RADHAKRISHNAN, LD. DEPARTMENTAL REPRESENTATIVE. ACCORDING TO THE LD. DR, INSPITE O F ISSUE OF NOTICE, THE ASSESSEE HAS NOT APPEARED BEFORE THE CIT(A) , THERE FORE, THE CIT(A), AFTER CONSIDERING THE REMAND REPORT FILED BY THE AS SESSING OFFICER, CONFIRMED THE ADDITION. 5. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS ON EITHER SIDE AND ALSO PERUSED THE MATERIAL AVAILABLE ON RECORD. WE HAVE ALSO CAREFULLY GONE THROUGH THE ORDER OF THE LOWER AUTHORITY. TH E CIT(A) EXTRACTED ITA NO.184/14 :- 3 -: THE GROUNDS OF APPEAL RAISED BY THE ASSESSEE, ASSE SSMENT ORDER, THE WRITTEN SUBMISSION FILED BY THE ASSESSEE AND THE R EPORT SAID TO BE FILED BY THE ASSESSING OFFICER AND THEREAFTER CONFIRMED T HE ADDITION MADE BY THE ASSESSING OFFICER ON THE GROUND THAT HE FIND S FORCE IN THE ARGUMENTS OF THE ASSESSING OFFICER. THE CIT(A) HAS NOT INDEPENDENTLY EXAMINED THE MATERIAL AVAILABLE ON RECORD AND WHY T HE ADDITION SHOULD BE MADE IN THE HANDS OF THE ASSESSEE. THE CIT(A) BEING A STATUTORY FIRST APPELLATE AUTHORITY UNDER THE PROVISIONS OF T HE INCOME-TAX ACT, IS EMPOWERED TO ENHANCE THE ASSESSMENT IN THE COURSE O F APPELLATE PROCEEDINGS. UNDER THE SCHEME OF THE INCOME-TAX AC T, THE CIT(A) IS CONFERRED WITH POWERS CO-TERMINUS WITH THAT OF THE ASSESSING OFFICER. IN OTHER WORDS, WHAT THE ASSESSING OFFICER COULD DO , THE SAME COULD ALSO BE DONE BY THE CIT(A). IF ANY SOURCE OF INCOM E OR ANY PART OF THE INCOME WAS LEFT OUT BY THE ASSESSING OFFICER, THE S AME CAN ALSO BE BROUGHT TO TAXATION BY THE CIT(A) BY GIVING NOTICE TO THE ASSESSEE FOR ENHANCEMENT. SINCE SUCH A STATUTORY POWER WAS CONF ERRED ON THE CIT(A), THIS TRIBUNAL IS OF THE CONSIDERED OPINION THAT IRRESPECTIVE OF THE FACT WHETHER THE ASSESSEE HAS APPEARED BEFORE HIM OR NOT, HE IS EXPECTED TO CALL FOR THE RECORDS OF THE ASSESSING O FFICER AND RE- APPRECIATE THE MATERIAL AND THEREAFTER DECIDE THE I SSUE AFRESH. IN THIS CASE, THE ASSESSEE HAS NOT APPEARED BEFORE THE CIT (A). THE CIT(A), WITHOUT RE-APPRECIATING THE MATERIAL AVAILABLE ON R ECORD, HAS SIMPLY ITA NO.184/14 :- 4 -: REPRODUCED THE GROUNDS OF APPEAL, WRITTEN SUBMISSIO N MADE BY THE ASSESSEE AND THE REMAND REPORT AND THEREAFTER IN TW O LINES HE SAYS THAT HE FINDS FORCE IN THE ARGUMENT OF THE ASSESSIN G OFFICER. THIS TRIBUNAL IS OF THE CONSIDERED OPINION THAT THIS KIN D OF ORDER CANNOT BE APPRECIATED BY THIS TRIBUNAL IN APPELLATE PROCEEDIN GS. THE CIT(A) BEING A SENIOR MOST OFFICER OF THE DEPARTMENT, IS E XPECTED TO APPLY HIS MIND TO THE MATERIAL AVAILABLE ON RECORD AND THEREA FTER DISPOSE OF THE GROUNDS RAISED BY THE ASSESSEE BY HIS OWN REASONIN G. IN THE FIRST APPELLATE ORDER, NO SUCH EXERCISE HAS BEEN DONE BY THE CIT(A). ACCORDINGLY, THE ORDER OF THE CIT(A) IS SET ASIDE A ND THE ENTIRE ISSUE RAISED BY THE ASSESSEE IS REMITTED BACK TO THE FIL E OF THE CIT(A). THE CIT(A) SHALL RECONSIDER THE ISSUE AFRESH IN THE LIG HT OF THE MATERIAL AVAILABLE ON RECORD AND THEREAFTER DECIDE THE SAME IN ACCORDANCE WITH LAW AFTER GIVING A REASONABLE OPPORTUNITY TO THE A SSESSEE. IT IS MADE CLEAR THAT AFTER GIVING A REASONABLE OPPORTUNITY TO THE ASSESSEE IF THE ASSESSEE FAILS TO APPEAR BEFORE THE CIT(A), HE CAN VERY WELL DISPOSE OF THE APPEAL ON MERIT AFTER RE-APPRECIATING THE MATER IAL AVAILABLE ON RECORD BY A SPEAKING ORDER. WITH THE ABOVE OBSERV ATION, THE APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSE S. 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED FOR STATISTICAL PURPOSES. ITA NO.184/14 :- 5 -: ORDER PRONOUNCED IN THE OPEN COURT ON 13 TH NOVEMBER, 2015, AT CHENNAI. SD/- SD/- ( . !' ) (A. MOHAN ALANKAMONY) # / ACCOUNTANT MEMBER ( . . . ' ) (N.R.S. GANESAN) / JUDICIAL MEMBER #$ / CHENNAI %& / DATED: 13 TH NOVEMBER, 2015 RD &' ()*) / COPY TO: 1 . / APPELLANT 4. + / CIT 2. / RESPONDENT 5. ),- . / DR 3. +/' / CIT(A) 6. -01 / GF