Suganya Dhanapal, CHENNAI V. ITO Non Corporate Ward 18(3), CHENNAI

ITA 2068/CHNY/2018

• Counselvise Citation: [2018] 118 COUNSELVISE.COM (IT) 9583 (ITAT-CHENNAI)
• Duration Of Justice: 4 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-11-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2013-2014
• Appeal Filed On: 02-07-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S BHARATH
• Assessee Lawyers: B RAMAKRISHNAN
• Keywords: Unexplained cash credit; Opportunity of being heard

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH, CHENNAI , , $ BEFORE SHRI GEORGE MATHAN, JUDICIAL MEMBER AND SHRI S. JAYARAMAN, ACCOUNTANT MEMBER /. I.T.A. NO. 2068/CHNY/2018 / ASSESSMENT YEAR : 2013-14 SMT. SUGANYA DHANAPAL, NO. 291, MOGANRAM NAGAR, MOGAPPAIR, CHENNAI 600 037. [PAN: AJHPG 4899H] VS. THE INCOME TAX OFFICER, NON CORPORATE WARD -18(3), CHENNAI 600 034. ( / APPELLANT) ( %&' /RESPONDENT ) ASSESSEE BY : SHRI. B. RAMAKRISHNAN, FCA REVENUE BY : SHRI. S. BHARATH, CIT 0 /DATE OF HEARING : 26.11.2018 0 /DATE OF PRONOUNCEMENT : 26.11.2018 / O R D E R PER S. JAYARAMAN, ACCOUNTANT MEMBER : THE ASSESSEE FILED THIS APPEAL AGAINST THE ORDER OF COMMISSIONER OF INCOME TAX (APPEALS)-15, CHENNAI IN ITA NO. 68/16-17/CIT(A)-15 DATED 28.05.2018 FOR ASSESSMENT YEAR 2013-14. 2. SMT. SUGANYA DHANAPAL, THE ASSESSEE, A SALARIED EMPLOYEE ADMITTED CAPITAL GAINS AND CLAIMED DEDUCTION U/S. 5 4F. FURTHER, SHE :-2-: ITA NO. 2068/CHNY/2018 SOLD VARIOUS PLOTS ALSO. ON THE BASIS OF AIR INFOR MATION, THE AO FOUND THAT CASH DEPOSITS OF RS. 2,20,50,000/- WERE IN THE ASSESSEES BANK ACCOUNT, HE CALLED FOR THE SOURCES OF DEPOSITS . UNSATISFIED WITH THE ASSESSEES EXPLANATION, HE MADE AN ADDITION OF RS. 88,50,000/- AS UNEXPLAINED CASH CREDITS U/S. 69. FURTHER, HE ADDE D THE INTEREST INCOME RECEIVED AT RS. 61,891/- AND ASSESSED BOTH O F THEM UNDER THE HEAD OTHER SOURCES. AGGRIEVED, THE ASSESSEE FILE D AN APPEAL BEFORE THE CIT(A). THE CIT(A) DISMISSED THE APPEAL. AGGR IEVED AGAINST THE ORDER OF THE CIT(A), THE ASSESSEE FILED THIS APPEAL . 3. THE LD. AR SUBMITTED THAT THE ASSESSEE EXPLAINED BEFORE THE CIT(A), INTER ALIA, THAT THE ASSESSEE HAD TOTAL CAS H SOURCES AVAILABLE AT RS. 2,53,75,160/- AS AGAINST THIS, THE TOTAL DEP OSITS MADE IN THE BANK ACCOUNT WAS RS. 2,48,60,481/- ONLY. SINCE, TH E AMOUNT DEPOSITED IN THE BANK ACCOUNT WAS LESS THAN THE AMO UNT AVAILABLE WITH THE ASSESSEE THERE WAS NOT SCOPE FOR MAKING AN Y UNEXPLAINED DEPOSITS ETC. HOWEVER, THE LD. CIT(A) DISPOSED THE APPEAL STATING THAT APART FROM FILING THE GROUNDS OF APPEAL AND ST ATEMENT OF FACTS, THE ASSESSEE NEVER ATTENDED ANY OF THE HEARING POST ED ON 15.03.2018, 17.04.2018 AND THE FINAL HEARING POSTED AS LAST OPPORTUNITY ON 10.05.2018. UNDER THESE CIRCUMSTANC ES, THE APPEAL IS ADJUDICATED ON THE BASIS OF THE AVERMENTS IN THE GR OUNDS OF APPEAL :-3-: ITA NO. 2068/CHNY/2018 AND STATEMENT OF FACTS, AND WITH REFERENCE TO THE R EASONS ASSIGNED BY THE ASSESSING OFFICER FOR MAKING THE ADDITION. THUS, THE LD. CIT(A) DISPOSED THE APPEAL WITHOUT EXAMINING THE AS SESSEES WRITTEN SUBMISSIONS, WHEREIN THE ASSESSEE EXPLAINED, INTER ALIA, THAT SHE HAD MORE CASH AVAILABILITY THAN THE IMPUGNED CASH DEPOS ITS IN HER BANK ACCOUNTS, ETC. FURTHER, LD. CIT(A) DID NOT GIVE EF FECTIVE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE FOR EXPLAINING THE I MPUGNED SOURCES TO HIS SATISFACTION. PER CONTRA, THE LD. DR SUPPOR TED THE ORDER OF THE LD. CIT(A) 4. WE HEARD THE RIVAL SUBMISSIONS. SINCE, THE ASSE SSEE IS PLEADING THAT THE SHE HAD MORE CASH AVAILABILITY TH AN THE IMPUGNED CASH DEPOSITS IN HER BANK ACCOUNTS, THE FACTS AND C IRCUMSTANCES OF THE CASE REQUIRED PROPER VERIFICATION. IN THE FACT S AND CIRCUMSTANCES, WE DEEM IT FIT TO REMIT THIS ISSUE BACK TO THE AO F OR A FRESH EXAMINATION. THE ASSESSEE SHALL LAY RELEVANT MAT ERIALS IN SUPPORT OF HER CONTENTION BEFORE THE AO AND COMPLY WITH THE R EQUIREMENTS OF THE AO IN ACCORDANCE WITH LAW. THE AO IS FREE TO CO NDUCT APPROPRIATE ENQUIRY AS DEEMED FIT, BUT HE SHALL FURNISH ADEQUA TE OPPORTUNITY TO THE ASSESSSEE ON THE MATERIAL ETC TO BE USED AGAIN ST IT AND DECIDE THE MATTER IN ACCORDANCE WITH LAW. :-4-: ITA NO. 2068/CHNY/2018 5. IN THE RESULT, THE ASSESSEES APPEAL IS TREATED AS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 26 TH NOVEMBER, 2018 AT CHENNAI. SD/- ( ) (GEORGE MATHAN) ! /JUDICIAL MEMBER SD/- ( ) (S. JAYARAMAN) ! /ACCOUNTANT MEMBER /CHENNAI, 5 /DATED: 26 TH NOVEMBER, 2018 JPV 0%7898 /COPY TO: 1. '/ APPELLANT 2. %&' /RESPONDENT 3. ; ) (/CIT(A) 4. ; /CIT 5. 8% /DR 6. /GF