Tejraj Ajey, CHENNAI V. ITO Non Corporate Ward 4(2), CHENNAI

ITA 2411/CHNY/2017

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 9269 (ITAT-CHENNAI)
• Duration Of Justice: 1 year(s) 8 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-06-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2014-2015
• Appeal Filed On: 03-10-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: D ANAND
• Keywords: Unexplained cash credit

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH: CHENNAI , ! , ' # BEFORE SHRI GEORGE MATHAN, JUDICIAL MEMBER AND SHRI S. JAYARAMAN, ACCOUNTANT MEMBE R ! ./ ITA NO.2411/CHNY/2017 $ /ASSESSMENT YEAR: 2014-15 SHRI TEJRAJ AJEY, NO.17, KANDAPPA STREET, SOWCARPET, CHENNAI - 600 079. VS. INCOME TAX OFFICER, NON-CORPORATE WARD-4(2), CHENNAI. [PAN: AVAPS 1124J] ( % /APPELLANT) ( &'% /RESPONDENT) % ( ) / APPELLANT BY : SHRI D. ANAND, ADVOCATE &'% ( ) /RESPONDENT BY : SHRI ARV SREENIVASAN, JCIT * ( +' /DATE OF HEARING : 04.06.2019 ,-$ ( +' / DATE OF PRONOUNCEMENT : 20.06.2019 . / O R D E R PER SHRI S. JAYARAMAN, ACCOUNTANT MEMBER : THE ASSESSEE FILED THIS APPEAL AGAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS)-5, CHENNAI, IN ITA NO.166/CIT(A)-5/2016-17 DATED 04.08.2017 FOR THE AS SESSMENT YEAR (AY) 2014-15. 2. SHRI TEJRAJ AJEY, THE ASSESSEE, IS AN INDIVIDUAL . WHILE MAKING THE ASSESSMENT FOR AY 2014-15, THE ASSESSING OFFICER(AO ), INTER ALIA, ADDED THE LOAN CREDITORS OF RS. 90,000/- HOLDING THAT IT WAS BOGUS AND FICTITIOUS ITA NO.2411/CHNY/2017 :- 2 -: TRANSACTION, RS. 1,31,35,000/- AS AN UNEXPLAINED UN SECURED LOAN, RS. 1,45,50,000/- AS UNEXPLAINED CREDITORS AND RS. 4,12 ,259/- AS AN UNEXPLAINED UNSECURED LOAN. AGGRIEVED AGAINST THAT ORDER, THE ASSESSEE FILED APPEAL BEFORE CIT(A). SINCE, NEITHER THE ASS ESSEE NOR THE AR FILED ANY WRITTEN SUBMISSION BEFORE THE LD. CIT(A), BASED ON THE MATERIAL AVAILABLE ON RECORD, THE LD. CIT(A) DISMISSED THE A PPEAL. AGGRIEVED AGAINST THAT ORDER, THE ASSESSEE FILED THIS APPEAL. 3. THE LD. AUTHORIZED REPRESENTATIVE OF ASSESSEE SU BMITTED THAT THE AR'S OFFICE WAS CAUGHT ON FIRE. IN VIEW OF THAT THE LD. AR COULD NOT APPEAR BEFORE LD. CIT(A). THE LD. CIT(A) OUGHT TO HAVE AP PRECIATED THAT ALL THE LOANS WERE MADE THROUGH PROPER BANKING CHANNELS AND BY MEANS OF ACCOUNT PAYEE/RTGS ETC. AND BEING AN ASSESSEE OVER THREE DECADES, HIS CREDITWORTHY COULD NOT BE DOUBTED ETC. THEREFOR E, HE PLEADED THAT THE ASSESSEE MAY BE GIVEN AN OPPORTUNITY TO EXPLAIN THE TRANSACTIONS SO THAT THE ISSUES COULD BE DECIDED ON MERIT. PER CONTRA, THE LD. DEPARTMENTAL REPRESENTATIVE SUPPORTED THE ORDERS OF LOWER AUTHOR ITIES. 4. WE HEARD THE RIVAL SUBMISSIONS AND GONE THROUGH THE RELEVANT MATERIAL ON RECORD. SINCE, THE AUTHORIZED REPRESENT ATIVE OF ASSESSEE PLEADS THAT THE NON APPEARANCE BEFORE THE LD. CIT(A ) WAS IN CONNECTION WITH HIS PREOCCUPATION WITH THE FIRE HAPPENED IN HI S OFFICE AND THE IMPUGNED TRANSACTIONS HAPPENED THROUGH PROPER BANKI NG CHANNELS ITA NO.2411/CHNY/2017 :- 3 -: WHICH COULD BE PROVED BEFORE THE LOWER AUTHORITIES, IF DUE OPPORTUNITY IS GIVEN TO HIM WHICH WOULD RESULT IN A MERITORIOUS DE CISION ETC. IN THE FACTS AND CIRCUMSTANCE, WE DEEM IT FIT TO REMIT THIS ISSU E BACK TO THE AO FOR A FRESH EXAMINATION. THE ASSESSEE SHALL LAY ALL MATE RIALS IN ITS SUPPORT BEFORE THE AO AND COMPLY WITH HIS REQUIREMENTS IN A CCORDANCE WITH LAW. THE AO MAY CONDUCT APPROPRIATE INQUIRY AS DEEMED FI T, HOWEVER, HE SHALL FURNISH ADEQUATE OPPORTUNITY TO THE ASSESSEE, IF ANY MATERIAL IS LIKELY TO BE USED AGAINST HIM AND THEN, PASS APPROP RIATE ORDERS IN ACCORDANCE WITH LAW. 5. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSE. ORDER PRONOUNCED IN THE OPEN COURT ON 20 TH JUNE, 2019 IN CHENNAI. SD/- SD/- ( ) (GEORGE MATHAN) /JUDICIAL MEMBER ( . ) (S. JAYARAMAN) ' /ACCOUNTANT MEMBER /CHENNAI, /! /DATED: 20 TH JUNE, 2019 . EDN, SR. P.S . ( &+01 21$+ /COPY TO: 1. % /APPELLANT 2. &'% /RESPONDENT 3. * 3+ ( )/CIT(A) 4. * 3+ /CIT 5. 1 45 &+ /DR 6. 56 7 /GF