M/s. Radha Exports (India) Pvt. Ltd., CHENNAI V. DCIT, CHENNAI

ITA 2019/CHNY/2012

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 64635 (ITAT-CHENNAI)
• Duration Of Justice: 1 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-12-2012
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 14-12-2012
• Assessment Year: 2005-2006
• Appeal Filed On: 06-11-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: GURU BASHYAM IRS
• Assessee Lawyers: J PRABHAKAR
• Section: 147; 68; 2

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, CHENNAI BEFORE DR. O.K.NARAYANAN, VICE-PRESIDENT AND SHRI S.S.GODARA, JUDICIAL MEMBER ITA NO.2019(MDS)/2012 ASSESSMENT YEAR : 2005-06 & S.P. NO.120(MDS)/2012 IN ITA NO.2019(MDS)/2012 M/S.RADHA EXPORTS(INDIA) PVT. LTD., 12-STATE BANK ST., MOUNT RD.,CHENNAI-600 002 PAN AACCR7698L. VS. THE DEPUTY COMMISSIONER OF INCOME-TAX, COMPANY CIRCLE V(3), CHENNAI. (APPELLANT/PETITIONER) (RESPONDENT) APPELLANT BY : SHRI J.PRABHAKAR, FCA RESPONDENT BY : SHRI GURU BASHYAM, IRS, JC IT DATE OF HEARING : 14 TH DECEMBER, 2012 DATE OF PRONOUNCEMENT : 14 TH DECEMBER, 2012 O R D E R PER S.S.GODARA, JUDICIAL MEMBER THIS APPEAL IS FILED BY THE ASSESSEE. THE RELEVA NT ASSESSMENT YEAR IS 2005-06. THE APPEAL IS DIRECTED AGAINST THE ORDER OF THE COMMISSIONER OF INCOME-TAX(APPEALS)-V AT CHENNAI, DATED 31-8-2012 AND ARISES OUT OF THE ASSESSMENT CO MPLETED - - ITA 2019 & SP 120 OF 2012 2 UNDER SECTION 143(3), READ WITH SECTION 147 OF THE INCOME-TAX ACT, 1961. 2. THE ISSUE RAISED IN THE PRESENT APPEAL IS AGAIN ST THE ADDITION SUSTAINED BY THE COMMISSIONER OF INCOME-TA X(APPEALS) AGAINST SHARE APPLICATION MONEY REFLECTED IN THE NA ME OF SMT. SHOBA JAYARAMAN. THE ADDITION HAS BEEN MADE UNDER SECTION 68 OF THE INCOME-TAX ACT, 1961. IT IS THE CASE OF THE ASSESSEE THAT THE LOWER AUTHORITIES HAVE EXAMINED THE SOURCE AVAILABLE IN THE HANDS OF SMT. SHOBA JAYARAMAN IN A PIECEMEAL MA NNER AFTER IGNORING THE CRUCIAL FACT THAT SHE HAD RECEIV ED ` 2.20 CRORES FROM MR. JAYARAMAN AS REMITTANCES FROM ABROAD. IT IS THE CASE OF THE ASSESSEE-COMPANY THAT AFTER APPROPRIATING TH E SHARE APPLICATION MONEY IN THE NAME OF SMT. SHOBA JAYARAM AN, THE REMAINDER IS SHOWN AS THE OPENING BALANCE FOR THE I MPUGNED ASSESSMENT YEAR. IT IS THE CASE OF THE ASSESSEE TH AT THEREFORE THERE IS NO JUSTIFICATION IN MAKING ANY ADDITION UN DER SECTION 68 OF THE ACT. 3. WE HEARD BOTH SIDES IN DETAIL. THE COMMISSIONE R OF INCOME-TAX(APPEALS) HAS REPEATEDLY STATED IN HIS ORDER THAT THE ASSESSEE HAD NOT PRODUCED ANY RELEVANT MATERIAL S OR - - ITA 2019 & SP 120 OF 2012 3 EVIDENCE BEFORE HIM. AT THE SAME TIME IT IS TO BE SEEN THAT IN THE REMAND REPORT CALLED BY THE COMMISSIONER OF INCOME- TAX(APPEALS) THE ASSESSING OFFICER HAS NOT MENTIONE D ANYTHING ABOUT THIS PARTICULAR ISSUE. THIS ISSUE HAS BEEN I GNORED BY THE ASSESSING OFFICER ALTOGETHER. IT IS IN THE LIGHT O F THE INCOMPLETE REMAND REPORT THAT THE COMMISSIONER OF INCOME-TAX(A PPEALS) HAS DECIDED THE ISSUE. ON THE ONE HAND WE FIND THA T THE REMAND REPORT IS INCOMPLETE AND ON THE OTHER HAND WE FIND THAT THE COMMISSIONER OF INCOME-TAX(APPEALS) IS ALWAYS STATI NG THAT MATERIALS WERE NOT PLACED BEFORE HIM. THE FACTS CA N BE BROUGHT OUT ONLY AFTER EXAMINING THE EVIDENCES AND DETAILS AVAILABLE WITH THE ASSESSEE IN AN OBJECTIVE MANNER. 4. THEREFORE, IN THE INTERESTS OF JUSTICE WE SET A SIDE THE ORDER OF THE COMMISSIONER OF INCOME-TAX(APPEALS) AN D REMAND BACK THE CASE TO THE ASSESSING OFFICER FOR DE NOVO DISPOSAL OF THE ISSUE IN ACCORDANCE WITH LAW. THE ASSESSEE MUS T BE GIVEN OPPORTUNITY BY THE ASSESSING OFFICER TO PRODUCE EVI DENCES, IF ANY, AND ALSO OF BEING HEARD. - - ITA 2019 & SP 120 OF 2012 4 5. AS SUCH, THIS APPEAL FILED BY THE ASSESSEE IS T REATED AS PARTLY ALLOWED FOR STATISTICAL PURPOSES. THE FI LE IS REMANDED BACK TO THE ASSESSING OFFICER. 6. AS THE APPEAL ITSELF IS DISPOSED OFF, THE STAY PETITION FILED BY THE ASSESSEE HAS BECOME INFRUCTUOUS. IT I S DISPOSES OFF ACCORDINGLY. 7. IN RESULT, THE APPEAL FILED BY THE ASSESSEE IS PARTLY ALLOWED FOR STATISTICAL PURPOSES AND THE STAY PETIT ION IS DISMISSED AS INFRUCTUOUS. ORDERS PRONOUNCED IN THE OPEN COURT AT THE TIME O F HEARING ON FRIDAY, THE 14 TH OF DECEMBER, 2012 AT CHENNAI. SD/- SD/- (DR. O.K.NARAYANAN) (S.S.GODARA) VICE-PRESIDENT JUDICIAL MEMBER CHENNAI, DATED, THE 14 TH DECEMBER, 2012. V.A.P. COPY TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR 6. GF.