Sri. A. Prakash, V. ITO,

ITA 251/BANG/2014

• Counselvise Citation: [2014] 120 COUNSELVISE.COM (IT) 7023 (ITAT-BANGALORE)
• Duration Of Justice: 7 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-10-2014
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Next Hearing Date: 19-11-2015
• Assessment Year: 2006-2007
• Appeal Filed On: 18-02-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DR K SHANKAR PRASAD J
• Assessee Lawyers: V SRINIVASAN
• Keywords: Unexplained investment
• Section: 147; 69; 148

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH : BANGALORE BEFORE SMT. P. MADHAVI DEVI, JUDICIAL MEMBER AND SHRI ABRAHAM P GEORGE , ACCOUNTANT MEMBER ITA NO. 251 / BANG/20 1 4 (ASSESSMENT YEAR: 20 06 - 07 ) SHRI A. PRAKASH, NO.4, 47 TH CROSS, 8 TH BLOCK, JAYANAGAR, BANGALORE. PAN:AEJPP9918H APPELLANT VS. INCOME - TAX OFFICER, WARD 4(4), BANGALORE. RESPONDENT APPELLANT BY: SHRI V.SRINIVASAN, CA. RESPONDENT BY: DR.K.SHANKAR PRASAD, JCIT(DR). DATE OF HEARING : 09/10/2014 . D ATE OF PRONOUNCEMENT: 17 /10/2014 . O R D E R PER SMT. P.MADHAVI DEVI, JM : THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF THE CIT(A) - II, BANGALORE, DATED 2/1/2004 FOR THE ASSESSMENT YEAR 2006 - 07. THE ASSESSEE IS AGGRIEVED BY THE ORDER OF THE CIT(A) IN UPHOLDING THE RE - ASSESSMENT U/S 147 OF THE INCOME - TAX ACT, 1961[HEREINAFTER REFERRED TO AS 'THE ACT'] AND IN ITA NO . 251/BANG/2014 SHRI A.PRAKASH PAGE 2 OF 4 UPHOLDING THE ADDITION OF RS.44,51,000/ - MADE AS UNEXPLAINED INVESTMENT U/S 69 OF THE ACT. 2. AT THE OUTSET IT IS ME NTIONED BY THE LEARNED COUNSEL FOR THE ASSESSEE THAT THE ASSESSMENT WAS SOUGHT TO BE RE - OPENED BY ISSUANCE OF A NOTICE U/S 147 OF THE ACT AND THAT THE ASSESSEE HAD NOT REQUESTED FOR FURNISHING OF REASONS FOR RE - OPENING OF THE ASSESSMENT DURING THE ASSESSME NT PROCEEDINGS , BUT THAT BEFORE THE CIT(A), THE ASSESSEE HAS TAKEN THE LEGAL GROUND THAT THE RE - ASSESSMENT IS BAD IN LAW AND VOID AB INITIO FOR WANT OF REQUISITE JURISDICTION ESPECIALLY THE MANDATORY REQUIREMENT S TO ASSUME JURISDICTION U/S 148 OF THE ACT D ID NOT EXIST AND HAVE NOT BEEN COMPLIED WITH. IT WAS ALSO ARGUED THAT A SPECIFIC CONTENTION WAS RAISED IN THE WRITTEN SUBMISSIONS THAT THE REASONS FOR REOPENING HAVE NOT BEEN SUPPLIED TO THE ASSESSEE. IT WAS SUBMITTED THAT THE ASSESSEE SOUGHT REASONS FOR RE - OPENING. HOWEVER, THE CIT(A) HAS NOT CONSIDERED THE SAME AND HAS UPHELD THE RE - OPENING OF THE ASSESSMENT AND ALSO CONFIRMED THE ADDITION MADE BY THE ASSESSING OFFICER[AO]. 3. AGAINST THE ORDER OF THE CIT(A), THE ASSESSEE IS IN APPEAL BEFORE US AND DURING THE EARLIER DATE OF HEARING THE LEARNED DEPARTMENTAL REPRESENTATIVE WAS DIRECTED TO FURNISH THE REASONS FOR RE - OPENING TO THE ASSESSEE AND IN COMPLIANCE THEREOF, THE LEARNED DEPARTMENTAL REPRESENTATIVE HAS FURNISHED THE REASONS. ITA NO . 251/BANG/2014 SHRI A.PRAKASH PAGE 3 OF 4 THE ASSESSEE HAS AL SO FILED HIS OBJECTIONS TO THE REASONS FOR REOPENING . TODAY I.E. ON 9 TH OCTOBER 2014, ON GOING THROUGH THE MATERIAL ON RECORD, WE FIND THAT THE ASSESSEE HAS RAISED A SPECIFIC CONTENTION IN HIS WRITTEN SUBMISSIONS BEFORE THE CIT(A) BUT THE CIT(A) HAS NOT D ISCUSSED THE ISSUE AT ALL IN HER ORDER. SINCE THE POWERS OF THE FIRST APPELLATE AUTHORITY ARE CO - TERMINUS WITH THAT OF THE AO, WE ARE OF THE OPINION THAT THE CIT(A) OUGHT TO HAVE DECIDED THE ISSUE IN ACCORDANCE WITH LAW RATHER THAN PROCEED TO DISPOSE OF TH E APPEAL ON MERITS. IN VIEW OF THE SAME, WE DEEM IT FIT AND PROPER TO REMAND THE ISSUE BACK TO THE FILE OF THE CIT(A) WITH A DIRECTION TO DISPOSE OF THE ASSESSEE S CONTENTION AS REGARDS THE SUFFICIENCY OR OTHERWISE OF THE REASONS FOR REOPENING OF THE ASSE SSMENT, IN ACCORDANCE WITH LAW. 4. AS THE LEGAL ISSUE IS BEING REMANDED TO THE CIT(A), THE MERITS ARE NOT BEING ADJUDICATED AT THIS STAGE . 5. IN THE RESULT, THE ASSESSEE S APPEAL IS TREATED AS ALLOWED FOR STATISTICAL PURPOSES. PRON OUNCED IN THE OPEN COURT ON 17 TH OF OCTOBER , 201 4. SD/ - SD/ - ( ABRAHAM P GEORGE ) ( SMT. P.MADHAVI DEVI) ACCOUNTANT MEMBER JUDICIAL MEMBER EKSRINIVASULU ITA NO . 251/BANG/2014 SHRI A.PRAKASH PAGE 4 OF 4 COPY TO: 1. APPELLAN T 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR, ITAT, BANGALORE. 6. GUARD FILE BY ORDER ASSISTANT REGISTRAR INCOME - TAX APPELLATE T RIBUNAL BANGALORE