Md. Mansoor AlamS/O Md Abdul Rauf, Ranchi V. ITO WD-2(2), Ranchi

ITA 234/RAN/2016

• Counselvise Citation: [2016] 130 COUNSELVISE.COM (IT) 9984 (ITAT-RANCHI)
• Duration Of Justice: 4 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-12-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2009-2010
• Appeal Filed On: 19-07-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: CHAUDHURY ORAM
• Assessee Lawyers: S K PODAR DEVESH PODAR
• Keywords: Business income; Principle of natural justice
• Section: 234B

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, RANCHI SMC BENCH, RANCHI BEFORE SHRI N.S SAINI, ACCOUNTANT MEMBER ITA NO.234 /RAN/2016 ASSESSMENT YEAR : 2009 - 2010 MD MANSOOR ALAM, S/O. MD ABDUL RAUF, DR. FATEULLAH ROAD, MAIN ROAD, RANCHI. VS. ITO, WARD 2(2), RANCHI PAN/GIR NO. AFIPA 6452 P (APPELLANT ) .. ( RESPONDENT ) ASSESSEE BY : S/ SHRI S.K.PODAR /DEVESH PODAR , AR REVENUE BY : SHRI CHAUDHURY ORAM , DR DATE OF HEARING : 7 /12/ 2016 DATE OF PRONOUNCEMENT : 7 /12/ 2016 O R D E R THIS IS AN APPEAL FILED BY THE ASSESSEE AGA INST THE ORDER OF CIT(A) - RANCHI , DATED 10.5.2016 , FOR THE ASSESSMENT YEAR 2009 - 2010 . 2. THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL: 1. FOR THAT EXPARTE ORDER PASSED BY LD CIT(A) WAS NOT JUSTIFIED. NO REASONAB LE OPPORTUNITY WAS GIVEN TO THE APPELLANT FOR HEARING WHICH WAS AGAINST TO NATURAL JUSTICE. AS SUCH THE ORDER PASSED BY LD CIT(A) IS AB - INITIO VOID. 2. FOR THAT LD CIT(A) WAS NOT JUSTIFIED TO CONFIRM THE ADDITION OF RS.12,52,500/ - MADE U/S.68 OF THE ACT. HE DID NOT APPRECIATE THE FACT THAT ASSESSING OFFICER HAD COPY OF BANK STATEMENT THEN ALSO HE IGNORED THE FACT THAT CASH WAS DEPOSITED OF RS.12,52,500/ - OUT OF 2 ITA NO.234 /RAN/2016 ASSESSMENT YEAR :2009 - 2010 CASH WITHDRAWAL FROM SAME BANK ACCOUNT. THEREFORE, ORDER PASSED BY LD CIT(A) IS UNJUSTIFIED A ND BAD IN THE EYE OF LAW. 3. FOR THAT THE LD CIT(A) WAS NOT JUSTIFIED TO CONFIRM THE ADDITION OF RS.36,200/ - MADE UNDER BUSINESS INCOME ON ESTIMATE BASIS. LD CIT(A) DID NOT APPRECIATE THE FACT THAT THE ASSESSING OFFICER WAS NO BASIS TO ENHANCE COMMISSION INCOME @ 25% OF RS.1,44,800/ - AS SHOWN BY THE APPELLANT. AS SUCH ORDER PASSED BY THE CIT(A) IS ARBITRARY, UNJUSTIFIED AND ILLEGAL. 4. FOR THAT THE ASSESSING OFFICER WAS NOT JUSTIFIED TO CHARGE INTEREST U/S.234A AND 234B ON ASSESSED INCOME. FOLLOWING THE D ECISION OF HON'BLE JHARKHAND HIGH COURT, INTEREST U/S.234A AND 234B CAN ONLY BE CHARGED ON RETURNED INCOME NOT ON ASSESSED INCOME. 3. AT THE OUTSET, LD A.R. OF THE ASSESSEE SUBMITTED THAT THE APPEAL OF THE ASSESSEE WAS DISMISSED BY THE LD CIT(A) AS THE ASSESSEE FAILED TO PUT IN APPEARANCE ON THE DATES FIXED FOR HEARING BY ISSU ING NOTICES DATED 24.2.2015, 9.4.2015, 15.2.2016 & 12.4.2016 . HE SUBMITTED THAT THE ASSESSEE WAS NOT WELL, THEREFORE, HE FAILED TO PUT IN APPEARANCE ON THE DATES FIXED FOR HEARING. HE SUBMITTED THAT THE INTENTION OF THE ASSESSEE WAS NOT MALAFIDE AND NON - APPEARANCE WAS DUE TO UNAVOIDABLE CIRCUMSTANCES OF THE ASSESSEE. HE, THEREFORE, PRAYED THAT IN THE INTEREST OF JUSTICE ONE MORE OPPORTUNITY SHOULD BE GRANT ED TO THE ASSESSEE TO PRESENT ITS CASE BEFORE THE LD CIT(A). 4. ON THE OTHER HAND, LD D.R. DID NOT HAVE ANY OBJECTION TO RESTORING THE APPEAL OF THE ASSESSEE BACK TO THE FILE OF THE LD CIT(A). 5. AFTER CONSIDERING THE RIVAL SUBMISSIONS AND PERUSING THE MAT ERIALS AVAILABLE ON RECORD, I AM OF THE CONSIDERED OPINION THAT NO HARM WILL BE CAUSED TO THE REVENUE IF ONE MORE OPPORTUNITY IS GRANTED TO THE ASSESSEE 3 ITA NO.234 /RAN/2016 ASSESSMENT YEAR :2009 - 2010 BY RESTORING THE MATTER BACK TO THE FILE OF THE LD CIT(A) FOR ADJUDICATING THE APPEAL OF THE ASSESSEE A FRESH AFTER ALLOWING REASONABLE AND PROPER OPPORTUNITY OF HEARING TO BOTH THE PARTIES. I, THEREFORE, SET ASIDE THE ORDER OF LD CIT(A) AND REMAND THE MATTER BACK TO HIS FILE TO ADJUDICATE THE APPEAL OF THE ASSESSEE AFRESH AFTER ALLOWING REASONABLE AND PROP ER OPPORTUNITY OF HEARING TO BOTH THE PARTIES. 6. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRO NOUNCED IN THE OPEN COURT ON 7 /12/2016 IN THE PRESENCE OF PARTIES. SD/ - (N.S SAINI) A CCOUNTANT MEMBER RANCHI ; DATED 7 /12 /2016 B.K.PARIDA, SPS COPY OF THE ORDER FORWARDED TO : BY ORDER, SR.PS, ITAT, CAMP AT RANCHI 1. THE APPELLANT :MD MANSOOR ALAM, S/O. MD ABDUL RAUF, DR. FATEULLAH ROAD, MAIN ROAD, RANCHI. 2. THE RESPONDENT. ITO, WARD 2(2), RANCHI 3. THE CIT(A) RANCHI 4. CIT , RANCHI 5. DR, ITAT, RANCHI 6. GUARD FILE. //TRUE COPY//