Shri Gaurang Bharatbhai Adhuria, Navsari V. The Income tax Officer,Ward-2, Navsari

ITA 2171/AHD/2010

• Counselvise Citation: [2010] 135 COUNSELVISE.COM (IT) 9936 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-09-2010
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 07-09-2010
• Assessment Year: 2006-2007
• Appeal Filed On: 25-06-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S K JHA SRDR
• Keywords: Opportunity of being heard; Set aside

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCH SMC AHMEDABAD BEFORE SHRI MAHAVIR SINGH, JUDICIAL MEMBER ITA NO.2171/AHD/2010 ASSESSMENT YEAR:2006-07 DATE OF HEARING:7.9.10 DRAFTED:7.9.10 SHRI GAURANG BHARATBHAI ADHURIA, C/O. SUPER CAR CARE, ZEVERI ROAD, NAVSARI, PAN NO.ABVPA6810C V/S . INCOME TAX OFFICER, WARD-2, NAVSARI (APPELLANT) .. (RESPONDENT) APPELLANT BY :- WRITTEN SUBMISSIONS RESPONDENT BY:- SHRI S.K.JHA, SR-DR O R D E R THIS APPEAL BY ASSESSEE IS ARISING OUT OF THE ORDE R OF COMMISSION OF INCOME-TAX (APPEALS)-VALSAD IN APPEAL NO. CIT(A)-/V LS/467/08-09 DATED 25- 02-2010. THE ASSESSMENT WAS FRAMED BY ITO, WARD-2, NAVSARI U/S.143(3) OF THE INCOME-TAX ACT, 1961 (HEREINAFTER REFERRED TO A S THE ACT) VIDE HIS ORDER DATED 22-12-2008 FOR ASSESSMENT YEAR 2006-07. 2. AT THE OUTSET, IT IS NOTICED THAT THE ORDER OF C IT(A) CONFIRMING THE ADDITION OF UNSECURED LOANS OF RS.90,000/- RECEIVED BY ASSESSEE FROM SIX PERSONS I.E. RS.15,000/- EACH, IS AN EX-PARTE ORDER . I FIND THAT CIT(A) HAS DECIDED THIS ISSUE ONLY ON FIRST HEARING BY RECORDI NG THE FOLLOWING FINDINGS:- I HAVE PERUSED THE ASSESSMENT ORDER. DURING THE YE AR THE APPELLANT RECEIVED UNSECURED LOANS FROM VARIOUS PERSONS TO TH E TUNE OF RS.90,000/-. IN SPITE OF GIVING SUFFICIENT TIME THE APPELLANT HAS FAILED TO FURNISH THE COPY OF RETURN OF INCOME AND BANK PASS BOOK OF THE LENDERS TO DISCHARGE THE ONUS OF IDENTITY, CREDITWORTHINESS OF THE SOURCE OF CAPITAL. THUS THE A.O CONCLUDED THAT SO CALLED LOAN BROUGHT INTO THE BUSINESS OF THE APPELLANT IS OUT OF UNACCOUNTED MON EY OF THE APPELLANT. ITA NO.2171/AHD/2010 A.Y. 2006-07 SH. GAURANG B ADHURIA V. ITO WD-2 VLS PAGE-2 THE A.O THEREFORE TREATED THE SAME AS UNEXPLAINED C ASH CREDIT U/S.68 OF THE ACT. 5.3 I HAVE PERUSED THE FACTS OF THE CASE. THE APPEL LANT FAILED TO EXPLAIN SATISFACTORILY THE CAPACITY, GENUINENESS AND CREDIT WORTHINESS OF THE TRANSACTION EITHER BEFORE THE A.O OR BEFORE ME. IN THE ABSENCE ANY SUCH SUPPORTING DOCUMENTS I AM CONSTRAINED TO UPHOLD THE ADDITION MADE BY THE A.O. THIS GROUND OF APPEAL IS ACCORDINGLY DISMI SSED. IN VIEW OF THE ABOVE, I AM OF THE OPINION THAT CIT( A) HAS NOT PASSED A SPEAKING ORDER AND EVEN THE PRINCIPLE OF NATURAL JU STICE HAVE NOT BEEN FOLLOWED. ACCORDINGLY, I SET ASIDE THIS APPEAL TO T HE FILE OF CIT(A), REMITTING THE MATTER BACK TO HIM FOR DECIDING THIS ISSUE AFRESH A FTER PROVIDING REASONABLE OPPORTUNITY OF BEING HEARD TO ASSESSEE. LD. SR-DR H AS NOT OBJECTED THE SETTING ASIDE THIS APPEAL TO THE FILE OF CIT(A) IS AN EXPARTE ORDER. IN VIEW OF THE ABOVE I SET ASIDE THIS APPEAL TO THE FILE OF CIT(A) AND THIS ISSUE OF ASSESSEES APPEAL IS ALLOWED FOR STATISTICAL PURPOSES. 3. IN THE RESULT, ASSESSEES APPEAL IS ALLOWED FOR STA TISTICAL PURPOSES. ORDER PRONOUNCED IN OPEN COURT ON 07/09/2010 SD/- (MAHAVIR SINGH) (JUDICIAL MEMBER) AHMEDABAD, DATED : 07/09/2010 *DKP COPY OF THE ORDER FORWARDED TO :- 1. THE APPELLANT. 2. THE RESPONDENT. 3. THE CIT(APPEALS)-VALSAD 4. THE CIT CONCERNS. 5. THE DR, ITAT, AHMEDABAD 6. GUARD FILE. BY ORDER, /TRUE COPY/ DEPUTY / ASSTT.REGISTRAR ITAT, AHMEDABAD