S. Chandresan, Tuticorin V. ITO, Tuticorin

ITA 2310/CHNY/2016

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 7890 (ITAT-CHENNAI)
• Duration Of Justice: 4 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-12-2016
• Appeal Filed By: Assessee
• Bench Allotted: A
• Assessment Year: 2012-2013
• Appeal Filed On: 08-08-2016
• Court: TRIBUNAL
• Department Lawyers: SHIVA SRINIVASJCIT
• Assessee Lawyers: K RAVI
• Keywords: Unexplained investment

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH : CHENNAI , ! ' . #$ % &' BEFORE SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER AND SHRI DUVVURU RL REDDY , JUDICIAL MEMBER ./ I.T.A.NO.2310 /MDS./2016 ( / ASSESSMENT YEAR :2012-13) MR.S.CHANDRESAN , 39,RAILWAY STATION ROAD, TUTICORIN. VS. THE ITO, WARD-(2), TUTICORIN. PAN ADOPC 2922 L ( () / APPELLANT ) ( *+() / RESPONDENT ) / APPELLANT BY : MR.K.RAVI,ADVOCATE / RESPONDENT BY : MR.SHIVA SRINIVAS,JCIT, D.R / DATE OF HEARING : 08.11.2016 /DATE OF PRONOUNCEMENT : 08.12.2016 , / O R D E R PER CHANDRA POOJARI, ACCOUNTANT MEMBER: THIS APPEAL IS FILED BY THE ASSESSEE, AGGRIEVED B Y THE ORDER OF THE LEARNED COMMISSIONER OF INCOME TAX(A)-I, MADURA I DATED ITA NO. 2310/MDS/2016 2 27.05.2016 PASSED UNDER SEC.143(3) OF THE ACT FOR A SSESSMENT YEAR 2012-13. 2. THE MAIN GRIEVANCE RAISED BY THE ASSESSEE IN HI S APPEAL IS WITH REGARD TO ENHANCEMENT OF INCOME TO BE ASSESSED TO ` 10,27,486/- BY THE LD.CIT(A). 3. THE FACTS OF THE ISSUE ARE THAT DURING THE ASSE SSMENT PROCEEDINGS, THE AO FOUND THAT THE ASSESSEE IS A PA RTNER IN M/S.PORKIZHI FINANCE AND THE SALARY AND THE INTERES T RECEIVED FROM THE SAID FIRM WAS ALSO NOT ADMITTED IN THE RETURN O F INCOME. HENCE, THE AO MADE AN ADDITION OF ` 8,86,628/- AS AN UNEXPLAINED INVESTMENT ON THE GROUND THAT THE SAME DID NOT APPE AR IN THE BALANCE SHEET OF THE ASSESSEES BUSINESS. AGGRIEVED, THE A SSESSEE CARRIED THE APPEAL BEFORE THE LD.CIT(A). ON APPEAL, LD.CIT( A) OBSERVED THAT THERE WAS NO ENTRY IN THE INDIVIDUAL BOOKS TO SHOW THAT HE HAD WITHDRAWN ` 7.5 LAKHS FOR THE PURPOSE OF INVESTMENT IN THE FIRM M/S.PORKIZHI FINANCE TOWARDS SHARE CAPITAL. FURTHER , LD.CIT(A) OBSERVED THAT THE SHARE CAPITAL CONTRIBUTED BY THE ASSESSEE AND SALARY AND INTEREST RECEIVED FROM THE ABOVE FIRM WE RE TO BE ASSESSED ITA NO. 2310/MDS/2016 3 AS AGAINST THE CLOSING BALANCE OF ` 8,86,628/- ASSESSED BY THE AO. THE TOTAL ADDITION TO BE MADE WAS WORKED OUT AS UND ER:- SHARE CAPITAL 7,50,000/- INTEREST 2,30,200/- SALARY 47,286/- 10,27,486/- AS SUCH, LD.CIT(A) ENHANCED THE ASSESSMENT TO THE TUNE OF ` 10,27,486/- AS AGAINST THE ADDITION OF ` 8,86,628/- MADE BY THE AO. AGAINST THIS, THE ASSESSEE IS IN APPEAL BEFORE US. 4. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE MATERIAL ON RECORD. THE LD.A.R PLEADED THAT THERE WAS A POOR RE PRESENTATION BY THE ASSESSEE BEFORE THE LOWER AUTHORITIES AND THERE WERE EARLIER YEAR WITHDRAWALS, WHICH WERE INVESTED IN M/S.PORKIZHI FI NANCE. THE LD.A.R FURTHER PLEADED THAT IF ALL THE ENTRIES ARE PROPERL Y RECONCILED, THERE CANNOT BE ANY ADDITION IN THE HANDS OF THE ASSESSEE AND ALSO PRAYED THAT ONE MORE OPPORTUNITY TO BE GIVEN TO THE ASSESS EE TO PRESENT THE CASE PROPERLY BEFORE THE ASSESSING AUTHORITY. ACCOR DINGLY, WE REMIT THE ISSUE IN DISPUTE TO THE FILE OF LD. ASSESSING O FFICER FOR FRESH CONSIDERATION WITH A DIRECTION TO THE ASSESSEE TO CO-OPERATE WITH THE DEPARTMENT WITH NECESSARY EVIDENCE BEFORE THE AO. ITA NO. 2310/MDS/2016 4 5. IN THE RESULT, THE APPEAL OF ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED ON 08 TH DECEMBER, 2016 AT CHENNAI. SD/- SD/- ! ' # . $ %& ' ( DUVVURU RL REDDY ) ) % / JUDICIAL MEMBER ( ) (CHANDRA POOJARI) / ACCOUNTANT MEMBER CHENNAI, DATED THE 08 TH DECEMBER, 2016 . K S SUNDARAM. ()** +,*-, / COPY TO: * 1 . / APPELLANT 3. * .*!' / CIT(A) 5. ,/0* 1 / DR 2. / RESPONDENT 4. * . / CIT 6. 0&*2 / GF