Shri M.Rajendran, Kumbakonam V. ITO, Kumbakonam

ITA 1986/CHNY/2010

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 8237 (ITAT-CHENNAI)
• Duration Of Justice: 5 year(s) 1 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-01-2016
• Appeal Filed By: Assessee
• Bench Allotted: A
• Next Hearing Date: 31-12-2015
• Assessment Year: 2002-2003
• Appeal Filed On: 22-11-2010
• Court: TRIBUNAL
• Department Lawyers: DR MILIND BHUSARICIT D R
• Assessee Lawyers: S SRIDHAR
• Keywords: Income from undisclosed sources; Difference of opinion; Change of opinion
• Section: 147

Judgement Text

, / / / , IN THE INCOME TAX APPELLATE TRIBUNAL BENCH, CHENNAI . .. , . , , ! BEFORE SHRI N.R.S.GANESAN, JUDICIAL MEMBER AND SHRI A.MOHAN ALANKAMONY, ACCOUNTANT MEMBER ' ./ I.T.A.NO.1986 /MDS./2010 ( #$ %$ / ASSESSMENT YEAR :2002-03) SHRI M.RAJENDRAN , 41,PERIYATHAMBI NAGAR, KUMBAKONAM, VS. THE ITO, WARD I(1), KUMBAKONAM, PAN AAIPR 7441 Q ( / APPELLANT ) ( / RESPONDENT ) '&' ( ) / APPELLANT BY : MR.S.SRIDHAR,ADVOCATE *+&' ( ) / RESPONDENT BY : DR.MILIND BHUSARI,CIT, D.R , - ( . / / DATE OF HEARING : 31.12.2015 0% ( . / /DATE OF PRONOUNCEMENT : 06.01.2016 / O R D E R PER A.MOHAN ALANKAMONY , ACCOUNTANT MEMBER: THIS APPEAL IS FILED BY THE ASSESSEE, AGGRIEVED B Y THE ORDER OF THE LEARNED COMMISSIONER OF INCOME TAX(A), TIRUCHIR APALLI DATED 02.09.2010 IN ITA NO.193/06-07 & 570 TO 572/06-07 P ASSED UNDER SEC.143(3) READ WITH SECTION 147 & SEC. 250 OF THE ACT. ITA NO. 1986/MDS/2010 2 2. THE ASSESSEE HAS RAISED FOUR ELABORATE GROUNDS IN HIS APPEAL AND THEY ARE REPRODUCED HEREIN BELOW FOR REFERENCE: - 1 . THE ORDER OF THE LEARNED COMMISSIONER OF INCOM E TAX (APPEALS) IS CONTRARY TO THE FACTS AND CIRCUMSTANCES AS ALSO THE LEGAL PO SITION OBTAINING IN THE CASE OF THE APPELLANT. 2. THE ORDER OF THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) IS CONTRARY TO THE FACTS AND CIRCUMSTANCES AS ALSO THE LEGAL POSIT ION OBTAINING IN THE CASE OF THE APPELLANT. THE LEARNED COMMISSIONER OF INCOME TAX(APPEALS) IS ESTIMATED THE CHIT KASAR INCOME APPROXIMATELY RS.500000/-. ORIGINALLY THE ASSESSING OFFICER HAS ALSO ESTIMATED THE CHIT INCOME APPROXIMATELY RS .1600000/-. BOTH ARE ONLY AN ESTIMATE. AT THAT TIME OF SURVEY THERE IS N O EVIDENCE FOR CONDUCTING CHIT AMONG THE MEMBERS. HE ASSUMED THE CHIT CONDUCT ED AND ESTIMATING HIS OWN PRESUMPTION OF INCOME. ASSUMED IT THE CHIT IS CONDUCTED THEN ONLY CHIT KASAR IS OFFERED AS INCOME. HOW CONTRIBUTION T OWARDS CHIT IS OFFERED AS UNACCOUNTED INCOME. THE ADDITIONS MADE ONLY ON ESTI MATED BASIS. 1) EARLIER ON THE SAME SET OF FACTS AND MATERIALS A VAILABLE ON RECORD, THE TEAMED ASSESSING OFFICER WHILE COMPLETING THE ASSES SMENT FOR THE A.Y.03- 04 IN THE ASSESSESS OWN CASE ARID IN THE FOLLOWING OTHER CASES ASSESSED R.S.50000/- ONLY IN RESPECT OF THAT ASSESSMENT YEAR ONLY. ITA NO. 1986/MDS/2010 3 1) P.THENGAVEL 2) P. RAMASAMY 3) K.KARUPPUSAMY 4) S.P.MUTHURAMAN 5) K.PALANISAMY THE ASSESSMENTS WERE COMPLETED WITH THE APPROVAL OF THE ADDITIONAL COMMISSIONER OF INCOME TAX ONLY IN ALL THE CASES. T HOUGH THE ISSUE WAS AGITATED IN APPEAL IN ALL THE CASES, IN THE CASE OF MR.K.KARUPPASAMY IN WHOSE CASE APPEAL WAS DISPOSED OFF, THE APPELLANT SOUGHT TO WITH DRAW THE GROUNDS OF APPEAL RELATING TO THIS ADDITION. THE LEARNED COMMI SSIONER OF INCOME TAX (APPEALS) WHILE DISPOSING OF THE APPEAL IN THE SAID CASE FOR THE A.Y.03-04 VIDE ORDER IR ITA NO.195 / CIT(A) / 2006-2007 / 375 DATE D 11.10.2007 ALLOWED THE ASSESSEE TO WITHDRAW THE GROUNDS OF APPEAL ON THIS ISSUE. 2) THIS ITSELF SHOWS THAT THE ISSUE, THOUGH NOT DEA LT WITH BY THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) WAS PART OF TH E APPELLATE PROCEEDINGS AND THE LEARNED COMMISSIONER OF INCOME TAX (A) DID NOT THINK IT NECESSARY TO ENHANCE THE ASSESSMENT ON THE SAME LINES AS HAS BEE N DONE BY THE LEARNED ASSESSING OFFICER FOR OTHER ASSESSMENT YEARS OTHER THAN A.Y.2003-04 NOW. 3) FURTHER ON THE SAME SET OF FACTS AND MATERIALS T HE LEARNED ASSESSING OFFICER WHO FRAMED THE ASSESSMENT ORDER FOR THE A.Y 03-04 H AS TAKEN A PARTICULAR VIEW ON THIS ISSUE. SO THE STAND OF THE SUBSEQUENT ASSES SING OFFICER WHO FRAMED THE ASSESSMENT FOR OTHER YEARS (OTHER THAN THE A.Y 03-0 4) ON THE SAME SET OF FACTS AND MATERIALS IS ONLY CHANGE OF OPINION. HENCE ASSE SSMENTS SHOULD NOT HAVE BEEN REOPENED FOR THE SAID CHANGE OF OPINION. THERE ARE VARIOUS DECISIONS TO ITA NO. 1986/MDS/2010 4 NOTE THAT ASSESSMENTS ONCE COMPLETED CANNOT BE REOP ENED FOR THAT CHANGE OF OPINION UNLESS THERE ARE FRESH MATERIALS SUBSEQUENT TO THE ASSESSMENT WARRANTING REOPENING. 4) HENCE IT IS REQUESTED THAT THE ADDITION MADE TOW ARDS CHIT BUSINESS BE EXCLUDED 5. THE LEARNED ASSESSING OFFICER HAS ESTIMATED THE CHIT INCOME AND THERE IS NO SPECIFIC FINDINGS AT THAT TIME OF SURVEY FOR THESE AND OTHER REASONS THAT MAY BE ADDUCED AT THE TIME OF HEARING THE APPELLANT PRAYS BE PLEASED TO DIRECT THE COMMISSIONER OF INCOME TAX (APPEALS) TO ACCEPT THE INCOME RETURNED AND JUSTICE RENDERED. 3. AT THE OUTSET, THE LD. A.R. SUBMITTED BEFORE US THAT THE REVENUES APPEAL IN THE CASE OF THE ASSESSEE FOR TH E RELEVANT ASSESSMENT YEAR 2002-03 IN ITA NO.2026/MDS./2010 HA S BEEN REMITTED BACK BY THE CHENNAI BENCH OF THE TRIBUNAL TO THE FILE OF LD. ASSESSING OFFICER FOR DENOVO CONSIDERATION VIDE ORD ER DATED 28/04/2011 AND THEREFORE, THE ASSESSEES APPEAL MAY ALSO BE REMITTED BACK TO THE FILE OF THE LD. ASSESSING OFFI CER WITH SIMILAR DIRECTIONS. THE LD. D.R DID NOT SERIOUSLY EXPRESS ANY OBJECTIONS FOR THE SAME. SINCE THE ISSUES IN BOTH THE REVENUES AP PEAL AND THE ASSESSEES APPEAL ARE INTERLINKED AND CONSIDERING T HE PRAYER OF THE ITA NO. 1986/MDS/2010 5 LD. A.R., WE HEREBY REMIT BACK THIS APPEAL ALSO TO THE FILE OF LD. ASSESSING OFFICER FOR DENOVO CONSIDERATION. 4. IN THE RESULT, THE APPEAL OF ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES ORDER PRONOUNCED ON THE 06 TH JANAUARY,2016 AT CHENNAI. SD/- SD/- ( . . . ) ( N.R.S.GANESAN ) ( . '#$ %' ) (A.MOHAN ALANKAMONY) JUDICIAL MEMBER ACCOUNTANT MEMBER CHENNAI, DATED 06 TH JANAUARY,2016. K S SUNDARAM. ( *.12' 32%. /COPY TO: 1. '&' /APPELLANT 2. *+&' /RESPONDENT 3. , 4. (') /CIT(A) 4. , 4. /CIT 5. 27 *.8# /DR 6. $ 9- /GF