Sidhartha Padhi, Bhubaneswar V. ITO, Bhubaneswar

ITA 269/CTK/2011

• Counselvise Citation: 26922114 RSA 2011
• Duration Of Justice: 1 year(s) 6 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-11-2012
• Appeal Filed By: Assessee
• Bench Allotted: DB
• Next Hearing Date: 07-11-2012
• Assessment Year: 2005-2006
• Appeal Filed On: 16-05-2011
• Court: TRIBUNAL
• Department Lawyers: N K NEB
• Assessee Lawyers: B K MAHAPATRA
• Keywords: Unexplained investment; Principle of natural justice; Additional evidence
• Section: 144

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL, CUTTACK BENCH, CUTTACK ( ) BEFORE . . , , HONBLE SHRI K.K.GUPTA, ACCOUNTANT MEMBER. /AND . . . , H ONBLE SHRI K.S.S.PRASAD RAO, JUDICIAL MEMBER / I.T.A.NO S.269 AND 270/CTK/2011 / ASSESSMENT YEAR S 2005 - 06 1. SIDHARTHA PADHI, PAN: AAQPP 3022 R 2. SIDHARTHA PADHI (HUF) PAN: AANHS 3514 E ADDRESS: 841/1,. RASULGARH, BHUBANESWR 751010 - - - VERSUS - ITO , WARD 2()2), BHUBANESWAR ( /APPELLANT ) ( / RESPONDENT ) / FOR THE APPELLANT : / SHRI B.K.MAHAPATRA, AR / FOR THE RESPONDENT: / SHRI N.K.NEB, D R / DATE OF HEARING: 07.11.2012 / DATE OF PRONOUNCEMENT: 30.11.2012 / ORDER . . . , SHRI K.S.S.PRASAD RAO, JUDICIAL MEMBER . THESE APPEALS HAVE BEEN FILED BY THE ASSESSEES AGAINST THE ORDERS OF EVEN DT.23.2.2011 OF THE LEARNED COMMISSIONER OF INCOME - TAX (APPEALS) FOR THE ASSESSMENT YEAR 2005 - 06. 2. IN CASE OF ASSESSEE SIDHARTHA PADHI (INDIVIDUAL), THE ASSESSING OFFICER PASSED THE ASSESSMENT ORDER U/S.144 MADE ADDITIONS OF RS.1,66,000 AS UNDISCLO SED INCOME AND RS.8,50,000 AS UNEXPLAINED INVESTMENT. SIMILARLY IN CASE OF THE ASSESSEE SHIDHARTHA PADHI (HUF), THE ASSESSING OFFICER PASSED THE ASSESSMENT ORDER U/S.144 AND MADE VARIOUS ADDITIONS INCLUDING RS.9,87,528 AS UNEXPLAINED MONEY. AGGRIEVED, THE ASSESSEES FILED APPEALS BEFORE THE FIRST APPELLATE AUTHORITY. BEFORE THE LEARNED CIT(A) BESIDES DISPUTING THE ADDITIONS, THE ASSESSEES ALSO DISPUTED THE ASSESSMENTS PASSED I.T.A.NOS.269 AND 270/CTK/2011 2 U/S.144 OF THE ACT. THE LEARNED CIT(A) HOWEVER, UPHELD THE ASSESSMENTS IN CASE OF BO TH THE ASSESSEES IGNORING THE EVIDENCES PRODUCED BY THE ASSESSEE HOLDING AS ADDITIONAL EVIDENCE NOT TO BE CONSIDERED AT THE APPELLATE STAGE. AGGRIEVED, THE ASSESSEES HAVE COME UP IN THE PRESENT APPEALS. 3. HEARD BOTH THE PARTIES AND CAREFULLY GONE THROUGH THE IMPUGNED ORDERS OF THE AUTHORITIES BELOW AND ALSO THE MATERIAL MADE AVAILABLE TO THE TRIBUNAL, AND WE FIND THAT THE ASSESSING OFFICER HAS PASSED THE ASSESSMENT ORDERS BY INVOKING THE PROVISIONS OF SECTION 144 OF THE I.T.ACT INSPITE OF THE AR OF THE ASS ESSEE APPEARED BEFORE THE ASSESSING OFFICER ALONG WITH THE ASSESSEES REPRESENTATIVE BY ISSUING LETTER TO THE EFFECT THAT IN CASE THE ASSESSEE FAILS TO PRODUCE ANY EVIDENCE IN SUPPORT OF THE RETURN, THE ASSESSMENT ORDER WILL BE PASSED TO THE BEST OF JUDGME NT AFTER TAKING INTO ACCOUNT ALL THE RELEVANT MATERIAL U/S.144 OF THE I.T.ACT AND HE STARTED IN MAKING THE IMPUGNED ADDITIONS. THE LEARNED CIT(A) HAS UPHELD THE ORDERS OF THE ASSESSING OFFICER. THEREFORE, UNDER THESE FACTS AND CIRCUMSTANCES, IT IS FOUND TH AT THE ASSESSEE HAS NOT BEEN AFFORDED WITH SUFFICIENT AND REASONABLE TIME TO SUBSTANTIATE ITS CLAIMS BEFORE THE LOWER AUTHORITIES. HENCE, WE ARE OF THE CONSIDERED VIEW THAT THIS IS A FIT CASE TO BE RESTORED TO THE FILE OF THE ASSESSING OFFICER FOR DE NOVO ASSESSMENT AND PASSING NECESSARY CONSEQUENTIAL ORDERS AS PER LAW OF COURSE STRICTLY FOLLOWING THE PRINCIPLES OF NATURAL JUSTICE. WITH THIS DIRECTION, THE IMPUGNED ORDERS OF THE AUTHORITIES BELOW ARE SET ASIDE BY RESTORING THE MATTER TO THE FILE OF THE ASSE SSING OFFICER FOR ASSESSMENT DE NOVO AS STATED SUPRA. HOWEVER, THE ASSESSEE IS ALSO HEREBY DIRECTED TO COOPERATE WITH THE ASSESSING OFFICER IN EARLY COMPLETION OF THE ASSESSMENT BY PRODUCING NECESSARY EVIDENCES SUBSTANTIATING THEIR RESPECTIVE RETURNS. I.T.A.NOS.269 AND 270/CTK/2011 3 4. I N THE RESULT, BOTH THE APPEALS OF THE ASSESSEES ARE ALLOWED FOR STATISTICAL PURPOSES. S D/ - S D/ - ( . . ) , , (K.K.GUPTA), ACCOUNTANT MEMBER. ( . . . ) , (K.S.S.PRASAD RAO), JUDICIAL MEMBER ( ) DATE : 30.11.2012 - COPY OF THE ORDER FORWARDED TO: 1 . 1. / THE APPELLANT : SIDHARTHA PADHI, PAN: AAQPP 3022 R 2. SIDHARTHA PADHI (HUF) PAN: AANHS 3514 E ADDRESS: 841/1,. RASULGARH, BHUBANESWR 751010 2 / THE RESPONDENT: ITO , WARD 2()2), BHUBANESWAR 3 . / THE CIT, 4 . ( )/ THE CIT(A), 5 . / DR, CUTTACK BENCH 6 . GUARD FILE . / TRUE COPY, / BY ORDER, APPENDIX XVII SEAL TO BE AFFIXED ON THE ORDER SHEET BY THE SR. P.S./P.S. AFTER DICTATION IS GIVEN 1. DATE OF DICTATION 27.11.2012 . 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER 29.11.2012 OTHER MEMBER . 3. DATE ON WHICH THE APP ROVED DRAFT COMES TO THE SR. P.S./P.S. 4. DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE DICTATING MEMBER FOR PRONOUNCEMENT.... 5. DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR. P.S./P.S . 6. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 30.11.2012 7. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK .. 8. THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT REGISTRAR FOR SIGNATURE ON THE ORDER ........ ........ 9. DATE OF DESPATCH OF THE ORDER .. ( ), (H.K.PADHEE), SENIOR.PRIVATE SECRETARY.