ACIT Circle 1, Kumbakonam V. S.Mahadevan, Mayiladuthurai

ITA 2207/CHNY/2018

• Counselvise Citation: [2019] 118 COUNSELVISE.COM (IT) 8337 (ITAT-CHENNAI)
• Duration Of Justice: 5 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-01-2019
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: D
• Assessment Year: 2011-2012
• Appeal Filed On: 23-07-2018
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: DR D KUMUDHA
• Keywords: Unexplained cash credit
• Section: 143(3)

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL , D BENCH, CHENNAI . , . , BEFORE SHRI A.MOHAN ALANKAMONY, ACCOUNTANT MEMBER AND SHRI DUVVURU RL REDDY, JUDICIAL MEMBER ./ I.T.A.NO.2207/CHNY/2018 ( / ASSESSMENT YEAR: 2011-12) THE ASST. COMMISSIONER OF INCOME TAX, CIRCLE-1, KUMBAKONAM VS SHRI S. MAHADEVAN, PROP. SRI SRINIVAS TIMBERS, NO.164-A, ULUTHUKUPPAI, SIRKALI MAIN ROAD, MAYILADUTHURAI 629 001. PAN: AJFPM0087K ( /APPELLANT) ( /RESPONDENT) / APPELLANT BY : DR.D. KUMUDHA, JCIT / RESPONDENT BY : NONE /DATE OF HEARING : 01.01.2019 /DATE OF PRONOUNCEMENT : 02.01.2019 / O R D E R PER A. MOHAN ALANKAMONY, AM:- THE APPEAL OF THE REVENUE IS DIRECTED AGAINST THE ORDER PASSED BY THE LEARNED COMMISSIONER OF INCOME TAX(APPEALS)-1, TIRUCHIRAPPALLI, DATED 16.05.2018 IN ITA NO.343/2014-15/CIT(A- 1)/TRICHY FOR THE ASSESSMENT YEAR 2011-12 PASSED U/S. 250(6) R.W.S. 143(3) OF THE ACT. AT THE TIME OF HEARING THE LD.AR WAS NOT PRESENT BEFORE THE BENCH, HOWEVER ON PERUSING THE FILE AND THE 2 ITA NO.2207/CHNY /2018 SUBMISSION OF THE LD.DR THE BENCH DECIDED TO HEAR THE APPEAL EX- PARTE. 2. THE REVENUE HAS RAISED SEVERAL GROUNDS IN ITS APPEAL HOWEVER THE CRUXES OF THE ISSUES ARE THAT (I) THE LD.CIT(A) HAS ERRED IN RESTRICTING THE ADDITION @ 2% OF EXPENSES INSTEAD OF 5% OF EXPENSES MADE BY THE LD.AO. (II) THE LD.CIT(A) HAS ERRED IN DELETING THE ADDITION MADE BY THE LD.AO AMOUNTING TO RS.20,26,200/- AS UNEXPLAINED CREDIT U/S.68 OF THE ACT TOWARDS DIFFERENCE IN SUNDRY CREDITORS. (III) THE LD.CIT(A) HAS ERRED IN DELETING THE ADDITION MADE BY THE LD.AO TOWARDS UNEXPLAINED CASH CREDIT U/S.68 OF THE ACT. (IV) THE LD.CIT(A) HAS ERRED BY DELETING THE ADDITIONS MADE BY THE LD.AO BASED ON THE FRESH EVIDENCE PRODUCED WHICH WAS NOT PRODUCED BEFORE THE LD.AO THEREBY VIOLATING RULE 46A(3) OF THE IT RULES. 3. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE IS AN INDIVIDUAL, ENGAGED IN TIMBER BUSINESS UNDER THE NAME AND STYLE OF M/S. SRI SRINIVAS TIMBER, E-FILED HIS RETURN OF INCOME FOR THE ASSESSMENT YEAR 2011-12 ON 04.08.2011 ADMITTING TOTAL INCOME OF 3 ITA NO.2207/CHNY /2018 RS.10,76,140/-. THE CASE WAS SELECTED FOR SCRUTINY UNDER CASS AND NOTICE U/S.143(2) OF THE ACT WAS ISSUED ON 13.08.2012. FINALLY ASSESSMENT ORDER WAS PASSED U/S.143(3) OF THE ACT ON 27.03.2014 WHEREIN THE LD.AO MADE ADDITIONS TOWARDS UNEXPLAINED CASH CREDIT U/S.68 OF THE ACT, DIFFERENCE IN CREDIT AND DISALLOWANCE OF EXPENDITURE INCURRED TOWARDS PURCHASE. 4. AT THE OUTSET THE LD.DR SUBMITTED BEFORE US THAT THE LD.CIT(A) HAS GRANTED SUBSTANTIAL RELIEF TO THE ASSESSEE BASED ON FRESH EVIDENCE PRODUCED BEFORE HIM THEREBY DEPRIVING THE LD.AO WITH AN OPPORTUNITY TO VERIFY THE SAME. HENCE HE PLEADED THAT THE APPEAL OF THE REVENUE MAY BE REMITTED BACK TO THE FILE OF LD.CIT(A) WITH DIRECTION TO OBTAIN REMAND REPORT FROM THE LD.AO WITH RESPECT TO THE FRESH EVIDENCE AND THEREAFTER DECIDE THE ENTIRE MATTER IN ACCORDANCE WITH LAW AND MERIT. ON PERUSING THE FILE, WE FIND MERIT IN THE SUBMISSION OF THE LD.DR. FROM THE ORDER OF THE LD.CIT(A), IT APPEARS THAT THE LD.CIT(A) HAS ADMITTED CERTAIN FRESH EVIDENCE AND DECIDED THE MATTER WITHOUT OBTAINING THE REMAND REPORT FROM THE LD.AO. THEREFORE IN THE INTEREST OF JUSTICE WE HEREBY REMIT THE APPEAL BACK TO THE FILE OF LD.CIT(A) WITH DIRECTIONS TO OBTAIN THE REMAND REPORT FROM LD.AO REGARDING THE FRESH 4 ITA NO.2207/CHNY /2018 EVIDENCE PRODUCED BEFORE HIM FOR THE FIRST TIME AND THEREAFTER DECIDE THE MATTER AFRESH IN ACCORDANCE WITH LAW AND MERIT WITH RESPECT TO ALL THE ISSUES RAISED IN THE APPEAL. 6. IN THE RESULT, THE APPEAL OF THE REVENUE IS ALLOWED FOR STATISTICAL PURPOSE AS INDICATED HEREIN ABOVE. ORDER PRONOUNCED ON THE 2 ND JANUARY, 2019 AT CHENNAI. SD/- SD/- ( . ) ( . ) ( DUVVURU RL REDDY ) ( A. MOHAN ALANKAMONY ) /JUDICIAL MEMBER / ACCOUNTANT MEMBER /CHENNAI, /DATED 2 ND JANUARY, 2019 RSR /COPY TO: 1. /APPELLANT 2. /RESPONDENT 3. ( )/CIT(A) 4. /CIT 5. /DR 6. /GF