RAKESHKUMAR DUDHAT, MUMBAI V. INCOME TAX OFFICER 15(3)(1), MUMBAI

ITA 2513/MUM/2018

• Counselvise Citation: [2019] 118 COUNSELVISE.COM (IT) 6369 (ITAT-MUMBAI)
• Duration Of Justice: 8 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-01-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2007-2008
• Appeal Filed On: 24-04-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: CHAITNYA ANJARIADR
• Assessee Lawyers: RAJESH S SHAHAR
• Keywords: Gift; Principle of natural justice
• Section: 142(1)

Judgement Text

, - , IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES SMC, MUMBAI , , BEFORE SHRI JOGINDER SINGH, VICE PRESIDENT, ITA NO.2513/MUM/2018 ASSESSMENT YEAR: 2007-08 SHRI RAKESH KUMAR DUDHAT, C/O-MSU & COMPANY S-04A1, HAWARE CENTURION, SECTOR 19A, NERUL EAST), NAVI MUMBAI-400706 / VS. INCOME TAX OFFICER-15(3)(1), 4 TH FLOOR, AYAKAR BHAVAN, NEW MARINE LINES, MUMBAI-400020 / ASSESSEE / REVENUE P.A. NO.AFGPD8338B ' # $ / ASSESSEE BY SHRI RAJESH S. SHAH-AR ' # $ / REVENUE BY SHRI CHAITNYA ANJARIA-DR / DATE OF HEARING 07/01/2019 $ / DATE OF ORDER: 07/01/2019 $ / O R D E R THE ASSESSEE IS AGGRIEVED BY THE IMPUGNED EX-PARTE ORDER DATED 25/01/2017 OF THE LD. FIRST APPELLATE AUTHORITY, MUMBAI, CONFIRMING THE ADDITION OF ITA NO.2513/ MUM/2018 RAKESH KUMAR DUDHAT 2 RS.24,65000/- RECEIVED AS GIFT FROM FATHER AND UNCL E OF THE ASSESSEE. 2. DURING HEARING, THE ID. COUNSEL FOR THE ASSESSEE, SHRI RAJESH S. SHAH, CONTENDED THAT THE G IFTS WERE RECEIVED BY THE ASSESSEE FROM FATHER AND UNCLE WHO ARE HAVING 10 ACRES EACH, FERTILE AGRICULTURAL LAND AND SINCE THE ASSESSEE WAS OUT OF INDIA DURING THE RELE VANT PERIOD, COULD NOT FURNISH THE NECESSARY DETAILS. IT WAS STRONGLY PLEADED THAT THE ASSESSEE IS IN POSITION T O EXPLAIN THE GENUINENESS AND SOURCE OF THE GIFTS, THEREFORE, KEEPING IN VIEW, THE PRINCIPLE OF NATURA L JUSTICE, THE MATTER MAY BE REMANDED TO THE FILE OF THE LD. COMMISSIONER OF INCOME TAX (APPEAL), WHO HAS PASSED AN EX-PARTE ORDER. ON THE OTHER HAND, THE LD. DR, S HRI CHAITANYA ANJARIA, THOUGH DEFENDED THE ADDITION BUT CONTENDED THAT IF THE MATTER IS SET-ASIDE TO THE FI LE OF THE LD. COMMISSIONER OF INCOME TAX (APPEAL) OR THE LD. ASSESSING OFFICER, THE ASSESSEE MAY BE DIRECTED TO FURNISH THE NECESSARY DETAILS TO SUBSTANTIATE HIS CLAIM. ITA NO.2513/ MUM/2018 RAKESH KUMAR DUDHAT 3 2.1. I HAVE CONSIDERED THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. THE FACTS , IN BRIEF, ARE THAT THE ASSESSEE, AN INDIVIDUAL DECLARE D INCOME OF RS.2,34,690/- IN HIS RETURN FILED ON 07/10/2008, WHICH WAS PROCESSED UNDER SECTION 143(1 ) OF THE INCOME TAX ACT, 1961 (HEREINAFTER THE ACT), THEREAFTER NOTICES UNDER SECTION 143(2) AND 142(1) OF THE ACT WERE SERVED UPON THE ASSESSEE. THE ASSESSEE ATTENDED THE PROCEEDINGS FROM TIME TO TIME AND FURNISHED THE DETAILS. THE ASSESSEE CLAIMED CERTAIN GIFTS IN CASH FROM FATHER AND UNCLES AND DULY FURNISHED T HE CONFIRMATION FROM THEM, WRITTEN IN GUJARATI ON A PL ANE PAPER. HOWEVER, THE LD. ASSESSING OFFICER WAS OF TH E VIEW THAT GENUINENESS AND CREDITWORTHINESS OF THE DONORS HAVE NOT BEEN ESTABLISHED, THEREFORE, ADDITION WAS MADE. ON APPEAL BEFORE THE LD. COMMISSIONER OF INCOME TAX (APPEAL), SINCE THE ASSESSEE WAS OUT OF INDIA, COUL D NOT PRODUCE THE NECESSARY DETAILS. CONSIDERING THE TOTA LITY OF FACTS AND ARTICLE 265 OF CONSTITUTION OF INDIA, ONL Y DUE TAXES HAS TO BE LEVIED/COLLECTED, CONSEQUENTLY, IN VIEW OF ITA NO.2513/ MUM/2018 RAKESH KUMAR DUDHAT 4 THE PRINCIPLE OF NATURAL JUSTICE THAT NO PERSON SHO ULD BE CONDEMNED UNHEARD, I DEEM IT APPROPRIATE TO REMAND THIS APPEAL TO THE FILE OF THE LD. COMMISSIONER OF INCOME TAX (APPEAL) FOR FRESH ADJUDICATION IN ACCORDANCE W ITH LAW. THE ASSESSEE BE GIVEN OPPORTUNITY OF BEING HEA RD AS WELL AS FURNISHING OF NECESSARY DETAILS, IF ANY, TO SUBSTANTIATE HIS CLAIM. THUS, THE APPEAL OF THE ASS ESSEE IS ALLOWED FOR STATISTICAL PURPOSES ONLY. FINALLY, THE APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. THIS ORDER WAS PRONOUNCED IN THE OPEN COURT IN THE PRESENCE OF LD. REPRESENTATIVES FROM BOTH SIDES AT THE CONCLUSION OF THE HEARING ON 07/01/2019. SD/- (JOGINDER SINGH) '() / VICE PRESIDENT MUMBAI; ' DATED : 07/01/2019 F{X~{T? P.S / #$ $ ' *+,- .$-/, / COPY OF THE ORDER FORWARDED TO : 1. %&'( / THE APPELLANT 2. )*'( / THE RESPONDENT. 3. ++ , ( %& ) / THE CIT, MUMBAI. ITA NO.2513/ MUM/2018 RAKESH KUMAR DUDHAT 5 4. ++ , / CIT(A)- , MUMBAI 5. /01)# , +%&%#3 , / DR, ITAT, MUMBAI 6. 145& / GUARD FILE. $ / BY ORDER, '/ (DY./ASSTT.REGISTRAR) , / ITAT, MUMBAI