G Shanmugasundaram, Trichy V. ACIT, Circle-1, Trichy

ITA 196/CHNY/2019

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 6979 (ITAT-CHENNAI)
• Duration Of Justice: 3 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-04-2019
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: A
• Assessment Year: 2011-2012
• Appeal Filed On: 28-01-2019
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Assessee Lawyers: S SRIDHAR
• Keywords: Unexplained cash credit; Opportunity of being heard; Additional evidence
• Section: 143(1)

Judgement Text

, , IN THE INCOME-TAX APPELLATE TRIBUNAL A BENCH, CHENNAI . , . , BEFORE SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER & SHRI DUVVURU RL REDDY, JUDICIAL MEMBER ./ I.T.A.NO.196/CHNY/2019 / ASSESSMENT YEAR: 2011-12 SHRI G. SHANMUGASUNDARAM, NO. 24A, FOURTH STREET, GANDHI STREET, KAILASH NAGAR, TRICHY. [PAN: AALPS5039G] VS. THE ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE 1, TRICHY. ( /APPELLANT) ( /RESPONDENT) / APPELLANT BY : SHRI S. SRIDHAR, ADVOCATE / RESPONDENT BY : SHRI AR.V. SREENIVASAN, JCIT / DATE OF HEARING : 23.04.2019 /DATE OF PRONOUNCEMENT : 29.04.2019 / O R D E R PER DUVVURU RL REDDY, JUDICIAL MEMBER: THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF THE LD. COMMISSIONER OF INCOME TAX (APPEALS) 1, TRICHY, DATED 26.12.2018 RELEVANT TO THE ASSESSMENT YEAR 2011-12. THE ONLY EFFECTIVE GROUND RAISED IN THE APPEAL OF THE ASSESSEE IS THAT THE LD. CIT(A) HAS ERRED IN CONFIRMING THE ADDITION OF .38,93,000/- BEING UNEXPLAINED CASH CREDIT. 2. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE FILED RETURNED OF INCOME FOR THE ASSESSMENT YEAR 2011-12 ON 29.06.2011 RETURNING AN INCOME OF .15,60,030/-. THE RETURN OF INCOME WAS PROCESSED UNDER SECTION 143(1) OF I.T.A. NO. 196/CHNY/19 2 THE INCOME TAX ACT, 1961 [ACT IN SHORT] ON 29.05.2012 AND THAT RESULTED IN NIL DEMAND. SUBSEQUENTLY, THE CASE WAS SELECTED FOR SCRUTINY AND NOTICE UNDER SECTION 143(2) OF THE ACT WAS ISSUED. AFTER CONSIDERING VARIOUS DETAILS FURNISHED BY THE ASSESSEE AGAINST THE STATUTORY NOTICES AND VERIFICATION OF BANK STATEMENTS, ETC., OUT OF THE CASH CREDIT OF .71,50,000/- FOUND IN THE BANK ACCOUNT OF THE ASSESSEE, THE ASSESSING OFFICER ACCEPTED VALID SOURCE FOR ONLY .32,56,148/- AND THE REMAINING AMOUNT OF .38,93,852/- WAS BROUGHT TO TAX AS UNEXPLAINED CASH CREDIT. ON APPEAL, THE LD. CIT(A) DISMISSED THE APPEAL PRIOR TO RECEIPT OF REMAND REPORT FROM THE ASSESSING OFFICER. 3. ON BEING AGGRIEVED, THE ASSESSEE IS IN APPEAL BEFORE THE TRIBUNAL. 4. WE HAVE HEARD BOTH THE SIDES, PERUSED THE MATERIALS AVAILABLE ON RECORD AND GONE THROUGH THE ORDERS OF AUTHORITIES BELOW. WE HAVE ALSO PERUSED THE DETAILED PAPER BOOK FILED BY THE ASSESSEE, WHEREIN, AN APPLICATION UNDER RULE 46A AS WELL AS LETTER FROM THE LD. CIT(A) TO THE ASSESSING OFFICER FOR FURNISHING REMAND REPORT AFTER ADMISSION OF ADDITIONAL EVIDENCES, INCLUDING VARIOUS ADDITIONAL EVIDENCES FILED BEFORE THE LD. CIT(A) WERE BROUGHT ON RECORD. AGAINST THE ADDITION OF .38,93,852/-, DURING THE COURSE OF APPELLATE PROCEEDINGS, THE ASSESSEE FILED AN APPLICATION DATED 11.12.2015 REQUESTING FOR ADMISSION OF VARIOUS ADDITIONAL EVIDENCES. AFTER I.T.A. NO. 196/CHNY/19 3 CONSIDERING THE APPLICATION OF THE ASSESSEE WITH ADDITIONAL EVIDENCES, THE LD. CIT(A) VIDE HIS LETTER DATED 12.04.2016 SOUGHT FOR REMAND REPORT FROM THE ASSESSING OFFICER. HOWEVER, ON PERUSAL OF THE APPELLATE ORDER, WE FIND THAT THE LD. CIT(A) HAS NOT MENTIONED ABOUT REMAND REPORT OBTAINED FROM THE ASSESSING OFFICER AND CONSIDERED THE SAME WHILE CONCLUDING HIS ORDER. IN VIEW OF THE ABOVE, WE DIRECT THE LD. CIT(A) TO CONSIDER THE REMAND REPORT OF THE ASSESSING OFFICER BY ADMITTING THE ADDITIONAL EVIDENCES AS MAY BE FORWARDED TO HIM AND DECIDE THE ISSUE IN ACCORDANCE WITH LAW AFTER ALLOWING AN OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. 5. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED ON THE 29 TH APRIL, 2019 IN CHENNAI. SD/ - SD/ - (A.MOHAN ALANKAMONY) ACCOUNTANT MEMBER (DUVVURU RL REDDY) JUDICIAL MEMBER CHENNAI, DATED, 29.04.2019 VM/- /COPY TO: 1. / APPELLANT, 2. / RESPONDENT, 3. ( ) /CIT(A), 4. /CIT, 5. /DR & 6. /GF.