Shri Kamlesh Kumar Agrawal, Indore V. ITO 5 (5), Indore

ITA 260/Ind/2018

• Counselvise Citation: [2019] 112 COUNSELVISE.COM (IT) 1912 (ITAT-INDORE)
• Duration Of Justice: 1 year(s) 8 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-12-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2012-2013
• Appeal Filed On: 27-03-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: K G GOYAL
• Assessee Lawyers: A G SHASTRI
• Keywords: Principle of natural justice; Opportunity of cross examination; Set aside
• Section: 143(3); 131

Judgement Text

[ITA NO.260/IND/2018] [SHRI KAMLESH KUMAR AGRAWAL, INDORE] , , IN THE INCOME TAX APPELLATE TRIBUNAL INDORE SMC BENCH, INDORE BEFORE SHRI KUL BHARAT, JUDICIAL MEMBER ITA NO.260/IND/2018 ASSESSMENT YEAR: 2012-13 SHRI KAMLESH KUMAR AGRAWAL M.L. AIRAN & CO. CHARTERED ACCOUNTANTS 104, KANCHAN BAG INDORE-452 001 (M.P.) / VS. ITO WARD - 5(5) INDORE ( APPELLANT ) ( REVENUE ) P.A. NO. AENPA7484H APPELLANT BY SHRI A.G. SHASTRI, A.R. RESPONDENT BY SHRI K.G. GOYAL, SR.D.R. DATE OF HEARING: 27.11.2019 DATE OF PRONOUNCEMENT: 10.12.2019 / O R D E R PER KUL BHARAT, J.M: THIS APPEAL BY THE ASSESSEE IS AGAINST ORDER OF THE CIT(A)-2, BHOPAL DATED 13.12.2017 PERTAINING TO THE ASSESSMENT YEAR 2012-13. THE ASSESSEE HAS RAISED FOLLOWING GROUNDS OF APPEAL: [ITA NO.260/IND/2018] [SHRI KAMLESH KUMAR AGRAWAL, INDORE] 2 [ITA NO.260/IND/2018] [SHRI KAMLESH KUMAR AGRAWAL, INDORE] 3 2. THE ONLY EFFECTIVE GROUND IS AGAINST SUSTAINING ADDITION OF RS.5,37,103/-. THE FACTS GIVING RISE TO THE PRESENT APPEAL ARE THAT CASE OF THE ASSESSEE WAS PICKED UP FOR SCRUTINY ASSESSMENT AND THE ASSESSMENT U/S 143(3) OF THE INCOME TAX ACT, 1961 (HEREINAFTER CALLED AS THE ACT) WAS FRAMED VIDE ORDER DATED 18.2.2015. WHILE FRAMING T HE ASSESSMENT, THE A.O. NOTICED THAT AS PER THE 26AS DETAI LS OF ASSESSEE M/S. LUMBI PUMPS PVT. LTD. HAVING TAN NO.BPLK03555G HAS COLLECTED TCS OF RS.5,371/- FOR TRANSACTION OF RS.5,37,103/- ON 26.3.2012 BEING SALE O F FLAT TO THE ASSESSEE BUT DURING ASSESSMENT PROCEEDINGS, TH E ASSESSEE DENIED OF HAVING ENTERED INTO SUCH TRANSACTION . TO VERIFY THIS FACT SUMMONS WERE ISSUED TO THE PRINC IPAL OFFICER OF LUMBI PUMPS PVT. LTD. IN PURSUANCE TO THE SUMMON U/S 131 OF THE ACT, SHRI VIRENDER SINGH RAJP UT, ACCOUNTANT ATTENDED AND FILED REPLY. IT WAS REITERATED THAT COMPANY HAS SOLD SCRAP TO THE ASSESSEE. ON THE BASIS O F [ITA NO.260/IND/2018] [SHRI KAMLESH KUMAR AGRAWAL, INDORE] 4 THIS, THE A.O. MADE ADDITION OF RS.5,37,103/-. AGGRI EVED AGAINST THIS, THE ASSESSEE PREFERRED APPEAL BEFORE LD. CIT(A), WHO SUSTAINED THIS ADDITION. AGAINST THIS, T HE ASSESSEE IS IN APPEAL BEFORE THIS TRIBUNAL. AT THE OUT SET, LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT BEFORE AUTHORITIES BELOW, THE ASSESSEE HAD CATEGORICALLY DENIED OF HAVING ENTERED INTO SUCH TRANSACTION. FURTHER, HE SUBMITTED THAT THE A.O. WITHOUT CONFRONTING AND GIVIN G OPPORTUNITY OF CROSS EXAMINATION TO THE ASSESSEE MADE ADDITION. HENCE, THERE IS A CLEAR VIOLATION OF PRINCIP LE OF NATURAL JUSTICE. 3. PER CONTRA, LD. D.R. OPPOSED THESE SUBMISSIONS. 4. I HAVE HEARD THE RIVAL SUBMISSIONS, PERUSED THE MATERIALS AVAILABLE ON RECORD AND GONE THROUGH THE ORDERS OF THE AUTHORITIES BELOW. UNDISPUTEDLY, THE ASSESSEE HAS DISPUTED OF HAVING ENTERED INTO THE CASH TRANSACTION WITH [ITA NO.260/IND/2018] [SHRI KAMLESH KUMAR AGRAWAL, INDORE] 5 M/S. LUMBI PUMPS PVT. LTD. FURTHER, AN AFFIDAVIT HAS BEEN FILED BY THE ASSESSEE DENYING OF HAVING PURCHASES OF S CRAPS FROM M/S. LUMBI PUMPS PVT. LTD. THE LD. CIT(A) HAS DECIDED THE ISSUE IN PARA NOS.5.1 & 5.2 OBSERVING AS UNDER: [ITA NO.260/IND/2018] [SHRI KAMLESH KUMAR AGRAWAL, INDORE] 6 5. SINCE THE A.O. HAD COLLECTED CERTAIN EVIDENCE FROM M/S. LUMBI PUMPS PVT. LTD., IT WAS INCUMBENT UPON TH E AUTHORITIES BELOW TO CONFRONT THE ASSESSEE AND GRANT HI M CROSS EXAMINATION TO SUB-SERVE THE INTEREST OF PRINCI PLES OF NATURAL JUSTICE. I THEREFORE, SET ASIDE THE IMPUGNED ORDER OF LD. CIT(A) AND RESTORE THE ISSUE TO THE FILE OF THE A.O. TO DECIDE IT AFRESH AFTER GIVING OPPORTUNITY OF CROSS [ITA NO.260/IND/2018] [SHRI KAMLESH KUMAR AGRAWAL, INDORE] 7 EXAMINATION TO THE ASSESSEE. GROUNDS RAISED IN THIS APPEAL ARE ALLOWED FOR STATISTICAL PURPOSES. 6. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER WAS PRONOUNCED IN THE OPEN COURT ON 10. 12.2019. SD/- (KUL BHARAT) JUDICIAL MEMBER INDORE; DATED : 10/12/2019 VG/SPS COPY TO: ASSESSEE/AO/PR. CIT/ CIT (A)/ITAT (DR)/GUAR D FILE. BY ORDER ASSISTANT REGISTRAR, INDORE