Ku. Pa. Krishnan, Trichy V. ACIT, CHENNAI

ITA 1915/CHNY/2014

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 90596 (ITAT-CHENNAI)
• Duration Of Justice: 11 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-06-2015
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: B
• Next Hearing Date: 24-06-2015
• Assessment Year: 2004-2005
• Appeal Filed On: 08-07-2014
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Assessee Lawyers: G BASKAR
• Keywords: Additional evidence; Block assessment

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, CHENNAI , ! ' , # $% BEFORE SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER & SHRI CHALLA NAGENDRA PRASAD, JUDICIAL MEMBER ./ I.T.A. NOS.1914, 1915 &1916/MDS/2014 ( / ASSESSMENT YEARS : 2003-04, 2004-05 & 2005-06) SHRI. KU.PA. KRISHNAN, TAMILPANNAI HOUSE, MAIN ROAD, KULUMANI, TRICHY [PAN: ADJPK 2197A] ( &' /APPELLANT) VS THE ASSISTANT COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE II(3), CHENNAI 600 034 ( '(&' /RESPONDENT) / APPELLANT BY : SHRI. G. BASKAR, ADVOCATE / RESPONDENT BY : SHRI. K. RAMASAMY, SR. SPECIAL PUBLIC PROSECUTOR /DATE OF HEARING : 24.06.2015 ! /DATE OF PRONOUNCEMENT : 30.06.2015 ) / O R D E R PER CHANDRA POOJARI, ACCOUNTANT MEMBER THESE THREE APPEALS BY ASSESSEE ARE D IRECTED AGAINST DIFFERENT ORDERS OF THE COMMISSIONER OF INCOME TAX (APPEALS)-I, CHENNAI FOR THE ASSESSMENT YEARS 2003-04, 2004-05 A ND 2005-06. I.T.A.NOS.1914 TO 1916/MDS/2014 :- 2 -: SINCE THE ISSUE INVOLVED IN THESE APPEALS ARE COMMO N IN NATURE, THESE APPEALS ARE COMBINED, HEARD TOGETHER, AND DISPOSED OF BY THIS ORDER FOR THE SAKE OF CONVENIENCE. 2. THE GROUNDS ARE COMMON IN ALL THESE APPEALS, WE REP RODUCE THE GROUNDS HEREIN ITA NO.1914/MDS/2014. 1.1 THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS) IS NOT SUSTAINABLE IN LAW AS THE SAME HA D BEEN MADE WITHOUT APPLICATION OF MIND AND WITHOUT APPRECIATING THE SUBMISSIONS OF THE ASSESSEE. 1.2 THE COMMISSIONER OF INCOME TAX (APPEALS) OUGHT TO HAVE SEEN THAT THE ASSESSING OFFICER HAS FAILED TO CONSIDER THE ADDITIONAL EVIDENCES SUBMITTED IN THE COURSE OF THE HEARING OF THE APPEAL AGAINST THE ORD ER OF BLOCK ASSESSMENT. 1.3 THE COMMISSIONER OF INCOME TAX (APPEALS) OUGHT TO HAVE HELD THAT THE ASSESSING OFFICER WENT WRONG IN INCLUDING OTHERS INVESTMENTS AND INCOME IN THE HAND S OF THE ASSESSEE DESPITE THEIR EXPLANATIONS, OBJECTI ONS AND PROTEST BEFORE THE DEPARTMENT, DESPITE THE FACT THAT IMMOVABLE PROPERTIES HAVE BEEN ACQUIRED BY THOSE PARTIES IN THEIR NAME BY REGISTERED DOCUMENTS IN TH EIR FAVOUR. 2.1 THE COMMISSIONER OF INCOME TAX (APPEALS) ERRED IN CONFIRMING THE ACTION OF THE ASSESSING OFFICER IN BRINING TO TAX INCOME FROM THE FOLLOWING PROPERTIES AS THAT OF THE ASSESSEE. PROPERTY INCOME ESTIMATED FLAT NO.9/3, NEHRU NAGAR, ADAYAR 42,000/- FLAT NO.9/4, NEHRU NAGAR, ADAYAR 42,000/- MARINER, FERN HILL, KODAIKANAL 46,200/- NO.2, BANKERS COLONY, KUMARAN NAGAR, TRICHY 92,400/- I.T.A.NOS.1914 TO 1916/MDS/2014 :- 3 -: 2.2. IN ANY EVENT, EVEN ASSUMING FOR THE SAKE OF AR GUMENT THAT THE FUNDS HAVE BEEN PROVIDED BY THE ASSESSEE T O OTHERS FOR ACQUIRING THE AFORESAID PROPERTIES, THE INCOME FROM THEM CANT BE CONSIDERED IN THE HANDS O F THE APPELLANT. 3.1 SIMILARLY, THE COMMISSIONER OF INCOME TAX (APPE ALS) ERRED IN CONFIRMING THE ACTION OF THE ASSESSING OFFICER IN BRINGING TO TAX INCOME FROM OPERATION OF THE FOLLOWING BUSES PROPERTIES AS THAT OF THE ASSES SEE; BUS NO. INCOME ESTIMATED TN-45-D-3505 7,11,406 TN-45-E-1582 6,03,980 TN-45-D 0525 6,32,400 TN-45-D 7000 3,66,901 TN-45-D 7857 6,96,480 3.2 THE COMMISSIONER OF INCOME TAX (APPEALS) FAILED TO NOTE THAT THE OWNERS OF THE BUSES HAVE SOLD THE BUS ES AFTER TAKING PERMISSION FROM THE COMMISSIONER OF INCOME-TAX, SHORTLY AFTER THE SEARCH; AND HENCE NO INCOME ACCRUED FROM BUSES. 3.3 THE COMMISSIONER OF INCOME TAX (APPEALS) OUGHT TO HAVE SEEN THAT THE ORDER OF BLOCK ASSESSMENT HAS NO T BECOME FINAL. 3. AT THE TIME OF HEARING, THE LD. AUTHORISED REPRESEN TATIVE FOR ASSESSEE SUBMITTED THAT THE MAIN ISSUE IN THESE APP EALS IS WITH REGARD TO CONSIDER THE ADDITIONAL EVIDENCE FILED BEFORE TH E COMMISSIONER OF INCOME TAX (APPEALS) IN ORDER TO ARRIVE OWNERSHIP O F THE IMPUGNED PROPERTY AND BUSES SO AS TO DECIDE THE INCOME EARN ED FROM THESE PROPERTIES. FURTHER, HE SUBMITTED THAT SIMILAR ISS UE CAME UP FOR CONSIDERATION BEFORE THIS TRIBUNAL IN ASSESSEES OW N CASE RELATING TO BLOCK PERIOD COVERING 1986-87 TO 1996-97 UPTO 17.07 .1996 AND THE I.T.A.NOS.1914 TO 1916/MDS/2014 :- 4 -: TRIBUNAL REMITTED THE ENTIRE ISSUE BACK TO THE FILE OF THE ASSESSING OFFICER TO CONSIDER THE ADDITIONAL EVIDENCE FILED BY THE ASSESSEE AND THEREBY THE ORDER OF ASSESSING OFFICER IN THE BLOCK PERIOD WAS SET ASIDE. ACCORDING TO HIM, ONCE THE ADDITIONAL EVIDE NCE IS CONSIDERED AND DECIDED OWNERSHIP OF PROPERTY AND BUSES, THEN T HE QUESTION TO DETERMINE INCOME COULD BE DECIDED. 4. ON THE OTHER HAND, THE SENIOR SPECIAL PUBLIC PROSEC UTOR OBJECTED TO THE CONTENTION OF THE LD. AUTHORISED REPRESENTAT IVE FOR ASSESSEE. 5. IN OUR OPINION, THE PLEA OF THE LD. AUTHORISED REP RESENTATIVE IS TO BE ACCEPTED BEFORE DETERMINING INCOME FROM PROPE RTY AND BUSES, ONE HAS TO SEE THE OWNERSHIP OF THE PROPERTY AND BU SES ON THE BASIS OF THE EVIDENCES FILED BY THE ASSESSEE BEFORE THE A SSESSING OFFICER. THE ASSESSING OFFICER HAS TO CONSIDER THESE EVIDENC ES DURING THE ASSESSMENT IN THE BLOCK PERIOD AS DIRECTED BY THE T RIBUNAL VIDE ORDER DATED 19.06.2015 IN IT (SS)A. NO.12/MDS/2013. ACCOR DINGLY, WE ARE INCLINED TO REMIT THESE CASES BACK TO THE FILE OF T HE ASSESSING OFFICER AND DECIDE THE SAME AFTER DETERMINING THE OWNERSHIP OF THE PROPERTY AND BUSES IN BLOCK PERIOD AS DIRECTED BY THE TRIBUN AL IN ITS ORDER. ACCORDINGLY, THE ENTIRE ISSUE IS REMITTED BACK TO T HE FILE OF THE ASSESSING OFFICER FOR FRESH CONSIDERATION. I.T.A.NOS.1914 TO 1916/MDS/2014 :- 5 -: 6. ACCORDINGLY, THESE APPEALS OF THE ASSESSEE IN ITA N OS.1914 TO 1916/MDS/2014 ARE ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED ON TUESDAY, THE 30TH DAY OF JUNE, 2015, AT CHENNAI. SD/- SD/- ( ! ' ) (CHALLA NAGENDRA PRASAD) # / JUDICIAL MEMBER ( ) (CHANDRA POOJARI) / ACCOUNTANT MEMBER '# /CHENNAI. $% /DATED:30.06.2015. KV %& '( )( /COPY TO: 1. * APPELLANT 2. / RESPONDENT 3. + ( )/CIT(A) 4. + /CIT 5. (,- . /DR 6. -/ 0 /GF.