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

ITA 2587/CHNY/2017

• Counselvise Citation: [2018] 122 COUNSELVISE.COM (IT) 4095 (ITAT-CHENNAI)
• Duration Of Justice: 11 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-10-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2013-2014
• Appeal Filed On: 27-10-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: B SAGADEVAN
• Assessee Lawyers: D ANAND
• Section: 133(6)

Judgement Text

, / , IN THE INCOME TAX APPELLATE TRIBUNAL B SMC BENCH, CHENNAI ... , BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER !./ ITA NO.2587/CHNY/2017 # $%# / ASSESSMENT YEAR : 2013-14 SMT. JAYALAKSHMI, NO.21, SOLAYAPPAN STREET, OLD WASHERMANPET, CHENNAI - 600 003. PAN : ACUPJ 2737 P V. THE INCOME TAX OFFICER, NON CORPORATE WARD - 4(2), CHENNAI - 600 006. ('(/ APPELLANT) ()*'(/ RESPONDENT) '( + , / APPELLANT BY : SHRI D. ANAND, ADVOCATE )*'( + , / RESPONDENT BY : SHRI B. SAGADEVAN, JCIT - $ + ./ / DATE OF HEARING : 03.10.2018 01% + ./ / DATE OF PRONOUNCEMENT : 11.10.2018 / O R D E R THIS APPEAL OF THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS) -5, CHENNA I, DATED 16.08.2017 AND PERTAINS TO ASSESSMENT YEAR 2013-14. 2. THERE WAS A DELAY OF ONE DAY IN FILING THIS APPE AL BY THE ASSESSEE. THE ASSESSEE HAS FILED A PETITION FOR CO NDONATION OF DELAY. I HAVE HEARD THE LD. COUNSEL FOR THE ASSESS EE AND THE LD. 2 I.T.A. NO.2587/CHNY/17 D.R. I FIND THAT THERE WAS SUFFICIENT CAUSE FOR NO T FILING THE APPEAL BEFORE THE STIPULATED TIME. THEREFORE, I CONDONE T HE DELAY AND ADMIT THE APPEAL. 3. SHRI D. ANAND, THE LD.COUNSEL FOR THE ASSESSEE, SUBMITTED THAT THE ONLY ISSUE ARISES FOR CONSIDERATION IS WIT H REGARD TO THE ADDITION MADE BY THE ASSESSING OFFICER IN RESPECT O F DEPOSITS MADE IN THE BANK ACCOUNT. REFERRING TO THE ORDER OF THE CIT(APPEALS), MORE PARTICULARLY AT PARA 5.2 AND 6.1, THE LD.COUNS EL SUBMITTED THAT THE CIT(APPEALS) FOUND THAT THE LOAN DEBTORS HAD NO T COMMITTED IN THEIR RESPECTIVE LETTERS DATED 11.03.2016 THAT THEY HAVE PAID IN CASH. THEREFORE, ACCORDING TO THE LD. COUNSEL, THE MATTER NEEDS TO BE RE-EXAMINED WHETHER THE LOAN DEBTORS HAVE CONFIR MED THE FACT OF PAYMENT IN CASH HAS TO BE EXAMINED BY THE ASSESSING OFFICER. THEREFORE, THE LD.COUNSEL SUBMITTED THAT THE MATTER MAY BE REMITTED BACK TO THE FILE OF THE ASSESSING OFFICER. 4. ON THE CONTRARY, SHRI B. SAGADEVAN, THE LD. DEPA RTMENTAL REPRESENTATIVE, SUBMITTED THAT THE ASSESSING OFFICE R BY ISSUING NOTICE UNDER SECTION 133(6) OF THE INCOME-TAX ACT, 1961 (IN SHORT 'THE ACT') SPECIFICALLY ASKED THE LOAN DEBTORS TO C ONFIRM WHETHER IT WAS PAID IN CASH. HOWEVER, THEY HAVE NOT COMMITTED ANYTHING IN 3 I.T.A. NO.2587/CHNY/17 THEIR RESPECTIVE LETTERS. REFERRING TO THE OBSERVA TION MADE BY THE CIT(APPEALS) AT PARA 6.3 OF HIS ORDER, THE LD. D.R. POINTED OUT THAT THE TRANSACTION OF LOAN REPAYMENT WAS NOT REFLECTED IN THE BANK ACCOUNT OF M/S NEW STAR ENTERPRISES. THEREFORE, AC CORDING TO THE LD. D.R., APPARENTLY IT IS OUTSIDE THE BOOKS OF ACC OUNT, HOWEVER, THE MATTER MAY BE RE-EXAMINED BY THE ASSESSING OFFICER. 5. I HAVE CONSIDERED THE RIVAL SUBMISSIONS ON EITHE R SIDE AND PERUSED THE RELEVANT MATERIAL AVAILABLE ON RECORD. THE ONLY ISSUE ARISES FOR CONSIDERATION IS DEPOSITS MADE IN THE BA NK ACCOUNT. THE LOAN DEBTORS WERE FOUND NON-COMMITTED WITH REGARD T O PAYMENT IN CASH. THE REVENUE CLAIMS THAT THE TRANSACTION WAS OUTSIDE THE BOOKS. THEREFORE, WHETHER THE LOAN DEBTORS HAVE PA ID THE AMOUNT IN CASH OR NOT NEEDS TO BE EXAMINED. ACCORDINGLY, THE ORDERS OF BOTH THE AUTHORITIES BELOW ARE SET ASIDE AND THE EN TIRE ISSUE IS REMITTED BACK TO THE FILE OF THE ASSESSING OFFICER. THE ASSESSING OFFICER SHALL RE-EXAMINE THE MATTER IN THE LIGHT OF THE MATERIAL THAT MAY BE PRODUCED BY THE ASSESSEE AND THEREAFTER DECI DE THE ISSUE AFRESH IN ACCORDANCE WITH LAW, AFTER GIVING A REASO NABLE OPPORTUNITY TO THE ASSESSEE. 4 I.T.A. NO.2587/CHNY/17 6. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE COURT ON 11 TH OCTOBER, 2018 AT CHENNAI. SD/- ( ... ) (N.R.S. GANESAN) /JUDICIAL MEMBER /CHENNAI, 3! /DATED, THE 11 TH OCTOBER, 2018 KRI. + ).45 65%. /COPY TO: 1. '( /APPELLANT 2. )*'( /RESPONDENT 3. - 7. () /CIT(A)-5, CHENNAI 4. PRINCIPAL CIT-9, CHENNAI 5. 5$8 ). /DR 6. 9# : /GF.