P.Arunkumar, Tirunelveli V. ITO, CHENNAI

ITA 2079/CHNY/2015

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 8113 (ITAT-CHENNAI)
• Duration Of Justice: 3 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-02-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 11-12-2015
• Assessment Year: 2009-2010
• Appeal Filed On: 27-10-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: P RADHAKRISHNAN
• Assessee Lawyers: K BALASUBR AMANIAN
• Keywords: Unexplained expenditure
• Section: 143(3)

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL , A B ENCH, CHENNAI . . . , . , % BEFORE SHRI N.R.S.GANESAN, JUDICIAL MEMBER AND SHRI A.MOHAN ALANKAMONY, ACCOUNTANT MEMBER ./ I.T.A.NO.2079/MDS/2015 ( / ASSESSMENT YEAR: 2009-10) MR.P.ARUNKUMAR, 2 D C COLONY,PERUMALPURAM, TIRUNELVELI-627 007. VS THE INCOME TAX OFFICER, SALARY WARD IV(1), NOW ITO NON-CORPORATE WARD 16(1), CHENNAI. PAN: AHGPA0406P ( /APPELLANT) ( /RESPONDENT) / APPELLANT BY : MR. K.BALASUBRAMANIAN, ADVOCATE /RESPONDENT BY : MR. P.RADHAKRISHNAN, JCIT /DATE OF HEARING : 11 TH DECEMBER, 2015 /DATE OF PRONOUNCEMENT : 9 TH FEBRUARY, 2016 / O R D E R PER A. MOHAN ALANKAMONY, AM:- THIS APPEAL IS FILED BY THE ASSESSEE AGGRIEVED BY T HE ORDER OF THE LEARNED COMMISSIONER OF INCOME TAX (AP PEALS)- 4 (I/C), CHENNAI DATED 27.03.2015 IN ITA NO. 304/CI T(A)- 4/2013-14 PASSED UNDER SECTION 143(3) READ WITH S ECTION 250(6) OF THE ACT. 2. THE ASSESSEE HAS CHALLENGED THE ORDER OF THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) ON TWO COUNTS: - I) THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) HAS ERRED IN SUSTAINING THE ADDITION MADE BY THE 2 ITA NO.2079 /MDS/2015 ASSESSING OFFICER IN DISALLOWING THE UNEXPLAINED EXPENDITURE TOWARDS CREDIT CARD PAYMENT TO THE TUNE OF ` 7,74,520/-. II) THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS ) HAS ERRED IN PASSING EX-PARTE ORDER WITHOUT PROVIDI NG SUFFICIENT OPPORTUNITY OF HEARING TO THE ASSESSEE. 3. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSE E IS AN INDIVIDUAL FILED HIS RETURN OF INCOME FOR THE ASSE SSMENT YEAR 2007-08 ON 28.07.2007 ADMITTING TOTAL INCOME AS ` 1,37,837/-. THE CASE WAS SELECTED FOR SCRUTINY AND THE ASSESS MENT WAS COMPLETED UNDER SECTION 143(3) OF THE ACT ON 31.12. 2009. DURING THE COURSE OF ASSESSMENT PROCEEDINGS, THE LE ARNED ASSESSING OFFICER DIRECTED THE ASSESSEE TO EXPLAIN THE SOURCE OF REPAYMENT OF ICICI CREDIT CARD PAYMENTS A MOUNTING TO ` 7,74,520/-. THE ASSESSEE FILED A LETTER FROM MR. J.PRINCE, PROPRIETOR OF PRINCE TRAVEL AGENCY, TIRUNELVELI STA TING THAT HE HAS USED THE CREDIT CARD OF THE ASSESSEE FOR HIS TR AVEL AGENCY TRANSACTIONS AND ALL THE DUES OF CREDIT CARD PAYMEN TS WERE MADE BY HIM THROUGH HIS SAVINGS BANK ACCOUNT. HOWE VER, NO DOCUMENTS IN SUPPORT OF THE CLAIM OF THE ASSESSEE WAS 3 ITA NO.2079 /MDS/2015 PRODUCED BEFORE THE LEARNED ASSESSING OFFICER FOR VERIFICATION. THEREFORE, THE LEARNED ASSESSING OF FICER TREATED THE AMOUNT OF ` 7,74,520/- AS UNEXPLAINED EXPENDITURE AS THE SOURCE FOR THE SAME WAS NOT EXPLAINED BY THE AS SESSEE. ON APPEAL, THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) CONFIRMED THE ORDER OF THE ASSESSING OFFI CER AGAINST WHICH THE ASSESSEE IS IN APPEAL BEFORE US. 4. AT THE OUTSET, THE LEARNED COUNSEL FOR THE ASSES SEE SUBMITTED THAT THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) HAS PASSED AN EX-PARTE ORDER WITHOUT PROV IDING SUFFICIENT OPPORTUNITY TO THE ASSESSEE OF BEING HEA RD. IT WAS FURTHER SUBMITTED THAT THE ASSESSEE WENT ABROAD FR OM 23.03.2008 ONWARDS ON EMPLOYMENT AND DURING HIS RET URN IN THE MONTH OF AUGUST, 2015 HE CAME TO KNOW THAT THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) HAS PASSED AN EX- PARTE ORDER. THEREFORE, THE LEARNED AUTHORIZED REPRESENTATIVE PLEADED THAT ONE MORE OPPORTUNITY M AY BE PROVIDED TO THE ASSESSEE SO THAT HE CAN PRODUCE TH E RELEVANT DOCUMENTS IN SUPPORT OF HIS CLAIM BEFORE T HE LEARNED 4 ITA NO.2079 /MDS/2015 COMMISSIONER OF INCOME TAX (APPEALS) AS HE HAS A FA IR CASE TO SUCCEED. 5. THE LEARNED DEPARTMENTAL REPRESENTATIVE ARGUED I N SUPPORT OF THE ORDERS OF THE REVENUE AUTHORITIES AN D PRAYED THAT ORDERS OF THE REVENUE MAY BE CONFIRMED. 6. WE HAVE HEARD THE RIVAL SUBMISSIONS AND CAREFULL Y PERUSED THE MATERIALS PLACED BEFORE US. THE ASSESS EE HAS SUBMITTED AN AFFIDAVIT BEFORE US STATING THE REASON S AS EXPLAINED BY THE LEARNED AUTHORIZED REPRESENTATIVE HEREINABOVE FOR HIS INABILITY TO APPEAR BEFORE THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) ON THE EARLIER OCCASION. CONSIDERING THE PRAYER OF THE ASSESSEE, I N THE INTEREST OF JUSTICE, WE HEREBY REMIT THE MATTER BA CK TO THE FILE OF THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) IN ORDER TO HEAR THE CASE AFRESH AND PASS APPROPRIAT E ORDER ON MERITS AND IN ACCORDANCE WITH LAW, AFTER AFFORDING SUFFICIENT OPPORTUNITY TO THE ASSESSEE OF BEING HEARD. WE ALSO HEREBY DIRECT THE ASSESSEE TO CO-OPERATE WITH THE REVENUE IN ITS PROCEEDINGS, FAILING WHICH THE LEARNED COMMISSIONER OF 5 ITA NO.2079 /MDS/2015 INCOME TAX (APPEALS) SHALL BE AT LIBERTY TO PASS AP PROPRIATE ORDER ON MERITS AND AS PER LAW. 7. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS AL LOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON THE 9 TH FEBRUARY, 2016 SD/- SD/- ( . . . ) ( . ) (N.R.S.GANESAN) ( A.M OHAN ALANKAMONY ) # % / JUDICIAL MEMBER % / ACCOUNTANT MEMBER # /CHENNAI, ( /DATED 9 TH FEBRUARY, 2016 SOMU *+ ,+ /COPY TO: 1. APPELLANT 2. RESPONDENT 3. - () /CIT(A) 4. - /CIT 5. + 1 /DR 6. /GF