ITO, CHENNAI V. Sri P.Ravikumar, CHENNAI

ITA 2126/CHNY/2010

• Counselvise Citation: [2011] 134 COUNSELVISE.COM (IT) 5161 (ITAT-CHENNAI)
• Duration Of Justice: 4 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-05-2011
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 03-05-2011
• Assessment Year: 2007-2008
• Appeal Filed On: 14-12-2010
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Assessee Lawyers: P B NANDAKISHORE
• Section: 68

Judgement Text

IN THE INCOME-TAX APPELLATE TRIBUNAL CHENNAI A BENCH, CHENNAI. BEFORE SHRI.U.B.S. BEDI J.M. & SHRI. N.S. SAINI A.M . I.T.A. NO. 2126/MDS/2010 ASSESSMENT YEAR: 2007-08 THE INCOME TAX OFFICER, WARD IX(2), CHENNAI. VS. SRI P. RAVIKUMAR, NEW NO. 183, OLD NO. 242, THAMBU CHETTY STREET, CHENNAI 1. [PAN:ADNPR0059A] (APPELLANT) (RESPONDENT) REVENUE BY : SHRI SHAJI P. JACOB ASSESSEE BY : SHRI P.B. NANDAKISHORE ORDER PER U.B.S. BEDI, J.M . THIS APPEAL OF THE DEPARTMENT IS DIRECTED AGAINST THE ORDER PASSED BY THE LD. CIT(A) IX, CHENNAI DATED 17.09.2010 RELEVAN T TO THE ASSESSMENT YEAR 2007-08, WHEREBY ACTION OF THE LD. CIT(A) IN DELETI ON OF ADDITION OF ` .18,10,525/- OUT OF ADDITION OF ` .19,76,557/- MADE BY THE ASSESSING OFFICER UNDER SE CTION 68 HAS BEEN CHALLENGED. 2. AT THE VERY OUTSET, THE LD. DR SUBMITTED THAT T HE ADDITION OF ` .19,76,557/- WAS MADE BY ADDING THE ENTIRE CREDITS APPEARING IN ONE SAVING BANK ACCOUNT OF THE ASSESSEE IN AXIS BANK UNDER SECTION 68 OF THE I NCOME TAX ACT AS THE CREDITS WERE NOT REFLECTED IN HIS ACCOUNT. MOREOVER , THE ASSESSEE VIDE HIS LETTER DATED 28.12.2009 ALSO DENIED THE MAINTENANCE OF ANY SUCH ACCOUNT WITH ANY OF THE BANK OTHER THAN ONE C.C. ACCOUNT WITH INDIAN OV ERSEAS BANK, CHENNAI AND IN APPEAL, THE LD. CIT(A) HAS TAKEN ON RECORD CERTA IN ADDITIONAL DOCUMENTS, BUT I.T.A. NO I.T.A. NO I.T.A. NO I.T.A. NO. .. .2126 2126 2126 2126/MDS/1 /MDS/1 /MDS/1 /MDS/10 00 0 2 ALSO CONSIDERED THE SAME TO GIVE RELIEF OF ` .18,10,525/- OUT OF TOTAL AMOUNT CREDITED IN THE AXIS BANK. SINCE THE ASSESSING OFFI CER HAS NOT BEEN ASSOCIATED EITHER WITH THE APPEAL PROCEEDINGS OR ANY REMAND RE PORT WAS CALLED FOR, THEREFORE, THERE IS A CLEAR VIOLATION OF RULE 46A O F THE INCOME TAX RULES ON THE PART OF THE LD. CIT(A) TO ENTERTAIN ADDITIONAL EVID ENCE AND AFTER CONSIDERING THE SAME TO GIVE RELIEF TO THE ASSESSEE. THEREFORE, IN ALL FAIRNESS, THE ORDER OF THE LD. CIT(A) IN THIS REGARD REQUIRES TO BE SET ASIDE AND THE MATTER SHOULD PREFERABLY BE RESTORED BACK ON THE FILE OF THE ASSESSING OFFIC ER FOR RECONSIDERATION OF THE ISSUE AFRESH AND THIS REQUEST OF THE LD. DR, THE LD . COUNSEL FOR THE ASSESSEE DID NOT OBJECT AND RATHER SUBMITTED THAT THE MATTER CAN GO BACK TO THE ASSESSING OFFICER FOR RECONSIDERATION. 3. WE HAVE HEARD BOTH THE SIDES, CONSIDERED THE MA TERIAL ON RECORD AND FIND THAT THE CREDIT DEPOSITS IN THE AXIS BANK ACCO UNT OF THE ASSESSEE WERE ADDED BY THE ASSESSING OFFICER WHEN THE ASSESSEE CA TEGORICALLY DENIED TO HAVE ANY OTHER BANK ACCOUNT THAN CC ACCOUNT WITH INDIAN OVERSEAS BANK, CHENNAI AND THE LD. CIT(A) HAS CONSIDERED ADDITIONAL EVIDEN CE FILED BY THE ASSESSEE BEFORE HIM AND GRANTED HIM RELIEF TO THE EXTENT OF ` .18,10,525/- OUT OF ADDITION OF ` .19,76,557/- MADE BY THE ASSESSEE UNDER SECTION 68 OF THE INCOME TAX ACT WHEN NEITHER THE ASSESSING OFFICER HAS BEEN ASSOCIA TED WITH THE APPEAL PROCEEDINGS NOR THE REQUIREMENT OF PROVISION OF RUL E 46A OF THE INCOME TAX RULES HAVE BEEN COMPLIED WITH. SINCE THERE IS A CLE AR VIOLATION OF RULE 46A, THEREFORE, IN THE INTEREST OF JUSTICE AND TO HAVE F AIR PLAY IN THE MATTER, WE FIND IT JUST AND APPROPRIATE TO SET ASIDE THE ORDERS OF AUT HORITIES BELOW ON THIS ISSUE I.T.A. NO I.T.A. NO I.T.A. NO I.T.A. NO. .. .2126 2126 2126 2126/MDS/1 /MDS/1 /MDS/1 /MDS/10 00 0 3 AND RESTORE THE MATTER BACK ON THE FILE OF THE ASSE SSING OFFICER WITH THE DIRECTION TO RE-DECIDE THE ISSUE AFRESH AFTER GIVIN G DUE OPPORTUNITY TO THE ASSESSEE. WE HOLD AND DIRECT ACCORDINGLY. 4. IN THE RESULT, THE APPEAL OF THE DEPARTMENT IS ALLOWED FOR STATISTICAL PURPOSE. ORDER PRONOUNCED SOON AFTER THE CONCLUSION OF HEAR ING ON 03.05.2011. SD/- SD/- (N.S. SAINI) ACCOUNTANT MEMBER (U.B.S. BEDI) JUDICIAL MEMBER CHENNAI, DATED, THE. 03.05.2011 VM/- TO:THE ASSESSEE/A.O./CIT(A)/CIT/D.R.