Sri Muniyappa Narayana Reddy , Bangalore V. The Income Tax Officer Ward-4(2)(4), Bangalore , Bangalore

ITA 186/BANG/2018

• Counselvise Citation: [2021] 107 COUNSELVISE.COM (IT) 3196 (ITAT-BANGALORE)
• Duration Of Justice: 3 year(s) 9 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-10-2021
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: C
• Next Hearing Date: 20-10-2021
• Assessment Year: 2011-2012
• Appeal Filed On: 18-01-2018
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Assessee Lawyers: N O N E
• Keywords: Capital asset; Opportunity of being heard
• Section: 271(1)(c); 143(2); 144; 2

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH : BANGALORE BEFORE SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER AND SMT. BEENA PILLAI , JUDICIAL MEMBER IT A NO S . 186 & 187/BANG/201 8 ASSESSMENT YEAR : 2011 - 12 SHRI MUNIYAPPA NARAYANA REDDY, # 501, S V MANSION, PLOT NOS.4 & 5, VSR LAYOUT, NEAR VARTHUR POLICE STATION, VARTHUR, BENGALURU 560 087. PAN: ADLPR 2476D VS. THE INCOME TAX OFFICER, WARD 4(2)(4), BANGALORE. APPELLANT RESPONDENT APPELLANT BY : NON E RESPONDENT BY : SHRI SHANKAR GANE SH, JT. J T . C I T ( D R ) ( I T A T ) , B E N G A L U R U . DATE OF HEARING : 20 . 1 0 .202 1 DATE OF PRONOUNCEMENT : 20 . 1 0 .202 1 O R D E R PER CHANDRA POOJARI, ACCOUNTANT MEMBER THESE TWO APPEALS BY THE ASSESSEE ARE DIRECTED AGA INST THE SEPARATE ORDERS OF THE CIT(APPEALS)-4, BANGALORE BO TH DATED 30.10.2017 FOR THE ASSESSMENT YEAR 2011-12, ONE AGAINST THE QU ANTUM ADDITION AND ANOTHER AGAINST THE LEVY OF PENALTY U/S. 271(1)(C) OF THE INCOME-TAX ACT, 1961 [THE ACT]. 2. THE FACTS ARE THAT THE ASSESSEE FILED RETURN OF INCOME WHICH WAS PROCESSED U/S. 143(1). LATER NOTICE U/S. 143(2) WA S ISSUED. NONE WAS PRESENT FOR THE ASSESSEE BEFORE THE AO AND THEREFOR E THE AO PASSED ORDER ITA NOS. 186 & 187/BANG/2018 PAGE 2 OF 3 U/S. 144 OF THE ACT AND HE MADE AN ADDITION OF RS.2 0 LAKHS ON THE REASON THAT ASSESSEE MADE A DEPOSIT OF RS.20 LAKHS INTO HI S BANK ACCOUNT FOR WHICH THE ASSESSEE HAS NOT FURISHED THE SOURCE OF S UCH DEPOSITS. CONSEQUENTLY, HE INVOKED THE PROVISIONS OF SECTION 271(1)(C) AND LEVIED PENALTY OF RS.4,67,620 FOR WILLFULLY SUPPRESSING TR UE AND CORRECT PARTICULARS OF INCOME. THE CIT(APPEALS) CONFIRMED THE ADDITION AND PENALTY. AGAINST THIS, THE ASSESSEE IS IN APPEAL BEFORE US. 3. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE M ATERIAL ON RECORD. AS SEEN FROM THE ORDERS OF LOWER AUTHORITIES, THE A SSESSMENT ORDER WAS PASSED EX PARTE . NO NOTICE OF HEARING WAS SERVED ON THE ASSESSEE SINCE THE ASSESSEE ON THE REASON THAT ASSESSEE SHIFTED HI S RESIDENCE FROM 203, 2 ND FLOOR, ASISH APTS., INNER CIRCLE, WHITEFIELD, BANG ALORE TO # 501, S V MANSION, PLOT NOS.4 & 5, VSR LAYOUT, NEAR VARTHUR P OLICE STATION, VARTHUR, BENGALURU. AS SUCH, ASSESSEE WAS UNABLE TO PARTICI PATE IN THE ASSESSMENT PROCEEDINGS AND EXPLAIN THE SOURCE OF RS.20 LAKHS D EPOSITED INTO HIS BANK ACCOUNT. BEFORE THE CIT(APPEALS) ALSO, THE ASSESSE E WAS NOT GRANTED SUFFICIENT OPPORTUNITY TO PRESENT HIS CASE. THE AD DITION OF RS.20 LAKHS WAS BASED ON THE AIR INFORMATION AVAILABLE WITH THE AO. HAD THE ASSESSEE GOT SUFFICIENT OPPORTUNITY OF HEARING, ASSESSEE COULD H AVE EXPLAINED AND PRODUCED THE NECESSARY DETAILS. IN OUR OPINION, TH E ASSESSEE HAS TO BE GIVEN ONE MORE OPPORTUNITY TO PRESENT HIS CASE. AC CORDINGLY, WE REMIT THE ISSUE IN DISPUTE OF THE QUANTUM ADDITION TO THE FIL E OF THE AO FOR FRESH CONSIDERATION AFTER PROVIDING OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. THE LEVY OF PENALTY IS CONSEQUENTIAL AND THE SAME I S KEPT OPEN AFTER DECIDING THE QUANTUM ADDITION, HENCE ADJUDICATION O F LEVY OF PENALTY AT THIS STAGE DOES NOT ARISE. ITA NOS. 186 & 187/BANG/2018 PAGE 3 OF 3 4. IN THE RESULT, THE APPEALS OF ASSESSEE IN ITA NO .187/BANG/2018 IS PARTLY ALLOWED FOR STATISTICAL PURPOSES AND ITA NO. 186/BANG/2018 IS DISMISSED AS INFRUCTUOUS. PRONOUNCED IN THE OPEN COURT ON THIS 20 TH DAY OF OCTOBER, 2021. SD/- SD/- ( BEENA PILLAI ) ( CHANDRA POOJARI ) JUDICIAL MEMBER ACCOUNTANT MEMBER BANGALORE, DATED, THE 20 TH OCTOBER, 2021. / DESAI S MURTHY / COPY TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR, ITAT, BANGALORE. BY ORDER ASSISTANT REGISTRAR ITAT, BANGALORE.