ITO, Tiruppur V. M.Karthikeyan, Tiruppur

ITA 267/CHNY/2017

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 4382 (ITAT-CHENNAI)
• Duration Of Justice: 4 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-06-2017
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 06-06-2017
• Assessment Year: 2013-2014
• Appeal Filed On: 30-01-2017
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: ASHSH TRIPATI
• Assessee Lawyers: S SRIDHAR
• Keywords: Additional evidence
• Section: 133(6)

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH, CHENNAI ... , , # BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI S. JAYARAMAN, ACCOUNTANT MEMBER ./ I.T.A. NO. 267/MDS/2017 / ASSESSMENT YEAR : 2013-14 THE INCOME TAX OFFICER, 121, ADAMS PLASA, 60 FEET ROAD, P.N. ROAD, TIRUPUR 641 602. VS. SHRI M. KARTHIKEYAN, PROP: M/S. SUN YARN, 175/50, KONGU MAIN ROAD, NEAR ACHI ELECTRONICS, TIRUPUR 641 607. [PAN: BDTPK 1630B] ( / APPELLANT) ( / RESPONDENT) % & / APPELLANT BY : SHRI ASHSH TRIPATI, JCIT )*% & / RESPONDENT BY : SHRI S. SRIDHAR, ADVOCATE & /DATE OF HEARING : 06.06.2017 & /DATE OF PRONOUNCEMENT : 09.06.2017 /O R D E R PER S. JAYARAMAN, ACCOUNTANT MEMBER: THIS IS AN APPEAL FILED BY THE REVENUE AGAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS)-3, COIMBATORE IN ITA NO. 34/16-17 DATED 25.11.2016. :-2-: I.T.A. N0. 267/MDS/2017 2. SHRI M. KARTHIKEYAN, THE ASSESSEE, AN INDIVIDUAL AND PROPRIETOR OF M/S. SUN YARN, TRADER IN YARN AND KNITTED FABRICS. IN T HE ASSESSMENT MADE FOR ASSESSMENT YEAR 2013-14, THE AO OBTAINED INFORMATIO N U/S. 133(6) FROM CERTAIN PARTIES AND OTHER MATERIAL, VERIFIED THEM W ITH BOOKS OF ACCOUNT OF THE ASSESSEE ETC., AND FOUND THAT RS. 2,72,14,085/-, TH E LIABILITIES IN THE BALANCE SHEET HAVE CEASED TO EXIST AND HENCE MADE AN ADDITI ON OF RS. 2,72,14,085/-. FURTHER, THE ASSESSING OFFICER FOUND THAT THE ASSES SEE HAS PURCHASED A HOUSE PROPERTY AT 227 & 228 OF VIJAYA GARDENS DURING THE PERIOD RELEVANT TO THIS ASSESSMENT YEAR AT RS. 33 LAKHS WHICH WAS NOT RECOR DED IN THE BOOKS OF ACCOUNT AND HENCE HE TREATED RS. 33 LAKHS AS UNACCO UNTED INVESTMENT AND ASSESSED THE SAME. AGGRIEVED, THE ASSESSEE FILED A N APPEAL BEFORE CIT(A)-3, COIMBATORE. BEFORE THE CIT(A), THE ASSESSEE CONTEN DED THAT ALL THE LIABILITIES ARE FROM ENTITIES WITH WHOM THE ASSESSEE HAD REGULA R TRADING TRANSACTIONS. THE AO MERELY RELIED ON THE AVERMENTS OF OTHER PART IES WITHOUT VERIFYING THE VERACITY OF THE SAME IN THE BOOKS OF ACCOUNT OF THE ASSESSEE, WHICH ARE SUPPORTED BY EVIDENCE IN THE FORM OF INVOICES RAISE D BY OTHER PARTIES AND THE RETURNS FILED THE ASSESSEE BEFORE THE SALES TAX/VAL UE ADDED TAX AUTHORITIES. THE ASSESSEE FURNISHED COPIES OF INVOICES AND THE E NTRIES SHOWN IN THE RETURN SUBMITTED TO THE COMMERCIAL TAX AUTHORITIES BEFORE THE CIT(A) AND CONTENDED THAT IF MAJOR PORTION OF PURCHASES ARE DISALLOWED, HOW THE SALES MADE BY THE ASSESSEE CAN BE ACCEPTED BY THE AO ETC. THE CIT(A) WITHOUT GIVING ANY OPPORTUNITY TO THE ASSESSING OFFICER EXAMINED THEM AND DELETED THE ADDITION :-3-: I.T.A. N0. 267/MDS/2017 MADE IN THE CASE OF M/S. WIN TRADERS, M/S. TRK TEXT ILE PVT. LTD., M/S. PANDARINADHAN TEXTILE MILLS, SHRI DEEPIKA INTERNATI ONAL AND M/S. S.L. TEX AT RS. 17,85,920/-, RS. 20,75,022/-, RS. 7,31,525/-, R S. 30,39,160/- AND RS. 1,48,55,480/- RESPECTIVELY, AGGREGATING TO RS. 2,24 ,87,107/-. FURTHER, THE CIT(A) DELETED THE ADDITION OF RS. 33 LAKHS AS UNEX PLAINED INVESTMENT STATING THAT THE INVESTMENT IN THE IMMOVABLE PROPERTY WAS M ADE ON 30.03.2012 I.E., DURING THE EARLIER ASSESSMENT YEAR I.E. IN ASSESSME NT YEAR 2012-13 AND NOT IN THIS ASSESSMENT YEAR I.E. IN ASSESSMENT YEAR 2013-1 4. 3. AGGRIEVED, THE REVENUE FILED THIS APPEAL ON THE GROUND THAT WHETHER ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW, THE LD. CIT(A) IS JUSTIFIED; IN DELETING THE ADDITION OF RS. 2,24,87,107/- WITHO UT GIVING AN OPPORTUNITY TO AO UNDER RULE 46A OF THE I.T. RULES BY CALLING FOR A REMAND REPORT IN VIEW OF THE ADDITIONAL EVIDENCES PRODUCED BY THE ASSESSEE D URING THE APPELLATE PROCEEDINGS, SUCH AS SALES INVOICE RAISED IN THE NA ME OF PARTIES AND ENTRIES SUBMITTED TO THE COMMERCIAL TAX AUTHORITIES AND IN DELETING THE ADDITION OF RS. 33 LAKHS, WHEN IT IS SEEN FROM THE ASSESSMENT RECOR DS THAT THE PROPERTY TRANSACTION WAS MADE BY THE ASSESSEE ON 28.08.2012 AND HENCE, IT IS INCOME FOR ASSESSMENT YEAR 2013-14. 4. WE HEARD THE RIVAL SUBMISSIONS AND GONE THROUGH THE CIT(A) ORDER. IT IS CLEAR THAT THE CIT(A) HAS NOT GIVEN AN OPPORTUNI TY TO THE AO UNDER RULE :-4-: I.T.A. N0. 267/MDS/2017 46A OF THE I.T. RULES AND HENCE, WE SET ASIDE THIS CASE TO THE AO, WHO SHALL AFTER EXAMINING THE RELEVANT MATERIAL AND AFTER GIV ING DUE OPPORTUNITY TO THE ASSESSEE SHALL PASS A SPEAKING ORDER ON THE ABOVE I SSUES. 5. IN THE RESULT, THE REVENUES APPEAL IS ALLOWED. ORDER PRONOUNCED ON FRIDAY, THE 9 TH DAY OF JUNE, 2017 AT CHENNAI. SD/- ( . . . ) (N.R.S. GANESAN) ! ' /JUDICIAL MEMBER SD/- ( ) (S. JAYARAMAN) ' /ACCOUNTANT MEMBER /CHENNAI, 0 /DATED: 9 TH JUNE, 2017 JPV & )12 32 /COPY TO: 1. %/ APPELLANT 2. )*% /RESPONDENT 3. 4 ( )/CIT(A) 4. 4 /CIT 5. 2 ) /DR 6. 7 /GF