Shaik Dawood, Tiruchendur V. ITO International Taxation, Tuticorin

ITA 2242/CHNY/2018

• Counselvise Citation: [2019] 118 COUNSELVISE.COM (IT) 6428 (ITAT-CHENNAI)
• Duration Of Justice: 5 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-01-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Assessment Year: 2015-2016
• Appeal Filed On: 27-07-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S. VIJAYAPRABHA
• Keywords: Unexplained cash credit; Principle of natural justice; Peak credit; Source of fund

Judgement Text

, ( ) , IN THE INCOME TAX APPELLATE TRIBUNAL , D (SMC) BENCH, CHENNAI . , . , BEFORE SHRI A.MOHAN ALANKAMONY, ACCOUNTANT MEMBER AND SHRI DUVVURU RL REDDY, JUDICIAL MEMBER ./ I.T.A.NO.2242/CHNY/2018 / ASSESSMENT YEAR: 2015-16) SHRI SHAIK DAWOOD, OLD NO.3, NEW NO.22, QAYETHE MILLATH NAGAR, KAYALPATNAM 628 204. TIRUCHENDURTALUK. VS THE INCOME TAX OFFICER, INTERNATIONAL TAXATION, TUTICORIN PAN: FIRPS0043F ( /APPELLANT) ( /RESPONDENT) / APPELLANT BY : SHRI B. RAMANAKUMAR, CA / RESPONDENT BY : MRS. S. VIJAYAPRABHA, JCIT /DATE OF HEARING : 03.01.2019 /DATE OF PRONOUNCEMENT : 18.01.2019 / O R D E R PER A.MOHAN ALANKAMONY, AM:- THIS APPEAL BY THE ASSESSEE ISDIRECTED AGAINST THE ORDER PASSED BY THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS)-16, CHENNAI,DATED 01.06.2018 IN ITA NO.09/CIT(A)-16/AY 2015-16FOR THE ASSESSMENT YEAR 2015-16PASSED U/S.250(6) R.W.S. 143(3)OF THE ACT. 2 ITA NO.2242/CHNY/2018 2. THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS IN HIS APPEAL:- 1. FOR THAT THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS)'CIT (A)' IS CONTRARY TO THE LAW, FACTS AND CIRCUMSTANCES OF THE CASE AND IS OPPOSED TO THE PRINCIPAL OF EQUITY, NATURAL JUSTICE AND FAIR PLAY. 2. FOR THAT THE CITCA) ERRED IN CONFIRMING THE ADDITION OF RS. 21,00,158/- AS UNEXPLAINED CASH CREDITS. 3. FOR THAT THE CITCA) FAILED TO APPRECIATE THAT THE ASSESSEE HAS SUFFICIENT SOURCES OF INCOME AND THE SAID SUMS CANNOT BE TERMED AS UNEXPLAINED CREDITS. 4. FOR THAT THE CITCA) DID NOT APPRECIATE THE EVIDENCES FURNISHED IN TERMS OF THE BANK ACCOUNTS AND CASH FLOW OF THE ASSESSEE AND THUS ERRED IN DISMISSING THE APPEAL. 5. FOR THESE GROUNDS AND SUCH OTHER GROUNDS THAT MAY BE ADDUCED BEFORE OR DURING THE HEARING OF THE APPEAL, IT IS PRAYED THAT THE HON'BLE TRIBUNAL MAY BE PLEASED TO PASS SUCH OTHER ORDERS AS THE HON'BLE TRIBUNAL DEEM FIT. 3. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE IS AN INDIVIDUAL, NON-RESIDENT FILED HIS RETURN OF INCOME FOR THE ASSESSMENT YEAR 2015-16 ON 01.01.2016 ADMITTING TOTAL INCOME OF RS.14,460/-. THE CASE WAS SELECTED FOR SCRUTINY UNDER CASS AND NOTICE U/S.143(2) OF THE ACT WAS ISSUED ON 18.09.2017. FINALLY ASSESSMENT ORDER WAS PASSED U/S.143(3) OF THE ACT ON 30.12.2017 WHEREIN THE LD.AO MADE ADDITION OF RS.21,001,158/- TOWARDS UNEXPLAINED CREDITS. 3 ITA NO.2242/CHNY/2018 4. AT THE OUTSET THE LD.AR SUBMITTED BEFORE US THAT THE ADDITION MADE BY THE LD.AO FOR RS.21,00,158/-BY APPLYING PEAK CREDIT METHOD WHICH WAS FURTHER SUSTAINED BY THE LD.CIT(A) IS ERRONEOUS. THE LD.AR FURTHER SUBMITTED THAT ONE MORE OPPORTUNITY MAY BE GIVEN TO THE ASSESSEE OF BEING HEARD SO THAT HE CAN RECONCILE THE ACCOUNTS BEFORE THE LD.AO. THE LD.DR STRONGLY OBJECTED TO THE SUBMISSION OF THE LD.AR AND PLEADED FOR SUSTAINING THE ORDERS OF THE LD.REVENUE AUTHORITIES. 5. WE HAVE HEARD THE RIVAL SUBMISSIONS AND CAREFULLY PERUSED THE MATERIALS ON RECORD. THE SUBMISSION OF THE LD.AR FOR GRANTING ONE MORE OPPORTUNITY IN ORDER TO EXPLAIN THE CREDITS IN THE BANK ACCOUNT IS NOT APPRECIABLE. THE ASSESSEE OUGHT TO HAVE FURNISHED ALL THE MATERIAL EVIDENCE BEFORE THE LD.REVENUE AUTHORITIES AT THE APPROPRIATE TIME OF HEARING WHICH THEY HAVE MISERABLY FAILED TO DO SO. HOWEVER KEEPING IN VIEW THAT THE ASSESSEE BEING NON- RESIDENT, IN THE INTEREST OF JUSTICE, WE HEREBY REMIT THE ENTIRE MATTER BACK TO THE FILE OF LD.AO WITH DIRECTIONS TO ADMIT AND EXAMINE ANY FRESH EVIDENCE PRODUCED BY THE ASSESSEE BEFORE THE LD.AO AND THEREAFTER DECIDE THE MATTER IN ACCORDANCE WITH LAW AND MERIT. WE ALSO CAUTION THE ASSESSEE AND HIS COUNSEL TO PROMPTLY 4 ITA NO.2242/CHNY/2018 CO-OPERATE BEFORE THE LD.REVENUE AUTHORITIES IN ORDER TO EXPEDITE THEIR ORDERS FAILING WHICH THE LD.REVENUE AUTHORITIES SHALL BE AT LIBERTY TO PASS APPROPRIATE ORDER IN ACCORDANCE WITH LAW AND MERIT BASED ON THE MATERIALS ON RECORD. 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES AS INDICATED HEREIN ABOVE. ORDER PRONOUNCED ON THE 18 TH JANUARY, 2019 AT CHENNAI. SD/- SD/- ( ) (DUVVURU R.L REDDY) /JUDICIAL MEMBER ( . ) (A. MOHAN ALANKAMONY) / ACCOUNTANT MEMBER /CHENNAI, /DATED 18 TH JANUARY, 2019 RSR /COPY TO: 1. /APPELLANT 2. /RESPONDENT 3. ( )/CIT(A) 4. /CIT 5. /DR 6. /GF