MR. C. ANAND, TIRUCHIRAPPALLI V. ITO, WARD - 3 (2), TIRUCHIRAPPALLI

ITA 2192/CHNY/2019

AI Insights

This case involves cross appeals by the Revenue and the assessee, Shri C. Anand, arising from the order of the Commissioner of Income Tax (Appeals)-1, Trichy. The appeals pertain to the assessment year 2013-14, where the Income Tax Officer, Ward 3(2), Trichy, had made several additions to the assessee's income under sections 144 and 147 of the Income Tax Act, 1961. The additions included unexplained cash credits, income from money lending, unexplained gifts, and unexplained cash deposits, significantly increasing the assessed income. The CIT(A) confirmed some of these additions while deleting others, leading to the current appeals. Both parties agreed that the initial assessment was conducted ex-parte without proper opportunity for the assessee to present his case, prompting the Tribunal to order a de novo assessment.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 134832 (ITAT-CHENNAI)
• Duration Of Justice: 4 year(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-08-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 02-08-2023
• Assessment Year: 2013-2014
• Appeal Filed On: 24-07-2019
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Gift; Opportunity of being heard; Additional evidence; Set aside

Judgement Text

आयकर अपीलीय अिधकरण, ‘ए’ ᭠यायपीठ, चे᳖ई IN THE INCOME TAX APPELLATE TRIBUNAL ‘A’ BENCH, CHENNAI ᮰ीमहावीर ᳲसह, उपा᭟यᭃ एवं ᮰ी मनोज कुमार अᮕवाल, लेखा सद᭭यके समᭃ BEFORE SHRI MAHAVIR SINGH, VICE PRESIDENTAND SHRI MANOJ KUMAR AGGARWAL, ACCOUNTANT MEMBER आयकरअपीलसं./ITA No.: 2189/CHNY/2019 िनधाᭅरण वषᭅ/Assessment Year: 2013 - 14 The Income Tax Officer, Ward 3(2), Trichy. vs. Shri C. Anand, C-54, Fort Station Road, North East Extension, Thillai Nagar, Trichy – 620 018. PAN: AAHPA 1959R (अपीलाथᱮ/Appellant) (ᮧ᭜यथᱮ/Respondent) & आयकरअपीलसं./ITA No.: 2192/CHNY/2019 िनधाᭅरण वषᭅ/Assessment Year: 2013 - 14 Shri C. Anand, C-54, Fort Station Road, North East Extension, Thillai Nagar, Trichy – 620 018. PAN: AAHPA 1959R vs. The Income Tax Officer, Ward 3(2), Trichy. (अपीलाथᱮ/Appellant) (ᮧ᭜यथᱮ/Respondent) िनधाᭅᳯरतीकᳱ ओर से/Assessee by : Shri S. Sridhar, Advocate राजˢकीओरसे /Revenue by : Shri AR.V.Sreenivasan, Addl.CIT सुनवाई कᳱ तारीख/Date of Hearing : 03.08.2023 घोषणा कᳱ तारीख/Date of Pronouncement : 03.08.2023 2 ITA Nos. 2189 & 2192/Chny/2019 आदेश /O R D E R PER MAHAVIR SINGH, VICE PRESIDENT: These cross appeals by the Revenue and assessee, are arising out of order of the Commissioner of Income Tax (Appeals)-1, Trichy in ITA No.190/2018-19/CIT(A)-1/TRY dated 03.05.2019. The assessment was framed by the Income Tax Officer, Ward 3(2), Trichy, for the assessment year 2013-14 u/s.144 r.w.s.147 of the Income Tax Act, 1961 (hereinafter the ‘Act’) vide order dated 31.12.2018. 2. At the outset, the ld.counsel for the assessee as well as ld. Senior DR both agreed that the assessment framed by the AO is ex- parte and no opportunity was provided to the assessee before framing of assessment in the case of the assessee. The following are the additions made by the AO:- Returned Income Rs.4,79,610/- Addition 1 Unexplained cash credit in the current account of the Firm “M/s. Hotel Sona’s”, as discussed above. Rs.39,57,340/- Addition 2 Income from money lending business as discussed above Rs.4,66,767/- Addition 3 Unexplained gift, as discussed above Rs.18,00,000/- Addition 4 Unexplained cash deposits in the bank accounts, as discussed above Rs.51,15,100/- Assessed income Rs.1,18,18,817/- The assessee challenged these additions and the CIT(A) confirmed the additions of unexplained cash credit in the current 3 ITA Nos. 2189 & 2192/Chny/2019 account of the firm M/s. Hotel Sona’s amounting to Rs.39,57,340/- and interest income from money lending business to the extent of Rs.72,042/- as against addition made by AO of Rs.4,66,767/-. The assessee came in appeal on these two additions and Revenue has challenged the deletion of addition on account of interest income i.e., balance interest income after reducing Rs.72,042/- and also unexplained gift of Rs.18 lakhs and unexplained cash deposit in the bank account at Rs.51,15,100/-. The ld.Senior DR took us through the order of CIT(A) and stated that the CIT(A) has admitted the additional evidences in violation of Rule 46(A) of the Income Tax Rules, 1962 without providing opportunity to the AO to examine the additional evidences furnished by assessee. Hence, he requested for in entirety, the matter has to go back to the file of the AO i.e., additions sustained by CIT(A) as well as additions deleted by CIT(A). Hence, according to him, assessment has to be set aside denovo for providing opportunity of being heard to the assessee and for reframing the assessment. He also mentioned that the assessee been directed to appear before AO and file all evidences as required by the AO. 4. On the other hand, the ld. Counsel for the assessee agreed for the above proposal and he undertook before the Bench that the 4 ITA Nos. 2189 & 2192/Chny/2019 assessee will co-operate with the assessment proceedings before the AO and will file all the necessary details as required by him as per law. 5. After hearing both the sides and going through the entirety of facts, we are inclined to restore these issues raised by Revenue and assessee in their cross appeals back to the file of the AO, who will reframe the assessment denovo after allowing reasonable opportunity of being heard to the assessee. The assessee is directed to provide all the necessary details for completion of assessment as early as possible. In term of the above, both the appeals are allowed for statistical purposes. 6. In the result, the appeals filed by the Revenue and assessee are allowed for statistical purposes. Order pronounced in the open court on 3 rd August, 2023 at Chennai. Sd/- Sd/- (मनोज कुमार अᮕवाल) (MANOJ KUMAR AGGARWAL) लेखा सद᭭य/ACCOUNTANT MEMBER (महावीर ᳲसह ) (MAHAVIR SINGH) उपा᭟यᭃ /VICE PRESIDENT चे᳖ई/Chennai, ᳰदनांक/Dated, the 3 rd August, 2023 RSR आदेश कᳱ ᮧितिलिप अᮕेिषत/Copy to: 1. िनधाŊįरती/Assessee 2. राजˢ/Revenue 3. आयकरआयुƅ /CIT 4. िवभागीय Ůितिनिध/DR 5. गाडŊ फाईल/GF.