Shri Hasmukh Prabhulal Mehta, Ahmedabad V. The Income Tax Officer, Ward-1(2)(2), Ahmedabad

ITA 270/AHD/2019

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 8651 (ITAT-AHMEDABAD)
• Duration Of Justice: 10 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-01-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Next Hearing Date: 09-01-2020
• Assessment Year: 2014-2015
• Appeal Filed On: 22-02-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: L P JAIN
• Assessee Lawyers: MEHUL K PATEL
• Keywords: Unexplained investment; Set aside
• Section: 250; 13; 69

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, AHMEDABAD BEFORE SHRI RAJPAL YADAV, JUDICIAL MEMBER AND SHRI WASEEM AHMED, ACCOUNTANT MEMBER ./ I.T.A. NO.270/AHD/2019 ( / ASSESSMENT YEAR : 2014-15) HASMUKH PRABHULAL MEHTA 1, KALGI APARTMENT DOSHIWADAS POLE KALUPUR, AHMEDABAD / VS. THE ITO WARD-1(2)(2) AHMEDABAD ./ ./ PAN/GIR NO. : ABDPM 3403 D ( / APPELLANT ) .. ( / RESPONDENT ) / APPELLANT BY : SHRI MEHUL K. PATEL, DR / RESPONDENT BY : SHRI L.P. JAIN, SR.DR / DATE OF HEARING 09/01/2020 !'# / DATE OF PRONOUNCEMENT 13/01/2020 / O R D E R PER SHRI RAJPAL YADAV, JUDICIAL MEMBER : THE ASSESSEE IS IN APPEAL BEFORE US AGAINST THE ORD ER OF LD.COMMISSIONER OF INCOME TAX(APPEALS)-10, AHMEDABA D [CIT(A) IN SHORT] DATED 17/12/2018 PASSED FOR ASSESSMENT YEAR (AY) 2014-15. 2. THE ASSESSEE HAS PLEADED THAT LD.CIT(A) HAS ER RED IN CONFIRMING ADDITION OF RS.54,68,135/- IN AN EX-PARTE ORDER. THE ADDITION HAS BEEN MADE BY THE ASSESSING OFFICER WITH THE AID OF SECTI ON 69 OF THE ACT ON ITA NO.270/AHD/2019 SHRI HASMUKH PRABHULAL MEHTA VS. ITO ASST.YEAR 2014-15 - 2 - ACCOUNT OF UNEXPLAINED INVESTMENT IN DEPOSITING THE AMOUNTS IN SAVINGS BANK ACCOUNT. 3. THE LD.COUNSEL FOR THE ASSESSEE, AT THE VERY OUT SET, SUBMITTED THAT THE ASSESSEE HAS FILED AN ADJOURNMENT APPLICATION P LEADING THEREIN THAT HEARING MAY BE ADJOURNED FOR 3 4 DAYS AS OFFICE S TAFF IS ENGAGED IN MARRIAGE FUNCTION TODAY. HE PLACED COPY OF APPLICA TION FILED ON 13/12/2018 WHICH HAS DULY BEEN RECEIVED IN THE OFFI CE OF THE LD.CIT(A). 4. ON THE OTHER HAND, LD.DR CONTENDED THAT CIT(A) H AS GIVEN SUFFICIENT OPPORTUNITIES TO THE ASSESSEE. HE FAILE D TO EXPLAIN THE SOURCE OF DEPOSIT. UNDER THE COMPELLING CIRCUMSTANCES, LD.CI T(A) HAS TO ADJUDICATE THE APPEAL. 5. WE HAVE DULY CONSIDERED THE RIVAL CONTENTIONS AN D GONE THROUGH THE RECORD CAREFULLY. WHILE CONSIDERING THE APPEAL OF THE ASSESSEE, LD.CIT(A) HAS MADE FOLLOWING OBSERVATIONS:- AFTER CONSIDERING ALL THE FACTS AND CIRCUMSTANCES OF THE CASE AND ALL THE MATERIAL AVAILABLE ON RECORD, I HOLD THAT THE A O WAS JUSTIFIED IN MAKING ADDITION OF RS.54,68,135/- SINCE THERE IS N O SUBSTANCE IN THE CONTENTION OF THE APPELLANT REGARDING SOURCE OF ABO VE CREDIT ENTRIES. THE APPELLANT HAS MADE SEVERAL CONTENTIONS. HOWEVE R, NO EXPLANATION OR CONTENTION IS SUPPORTED BY CREDIBLE EVIDENCE. T HE APPELLANT HAS NOT GIVEN ANY WORKING OF DEPOSITS AND WITHDRAWALS FROM THE BANK. FURTHER, THROUGH THE APPELLANT SUBMITTED HE WAS INTO BUSINES S OF SELLING CLOTH ON A SMALL SCALE, BUT NO PROOF OF THE SAME WAS FILED E ITHER BEFORE THE AO OR ITA NO.270/AHD/2019 SHRI HASMUKH PRABHULAL MEHTA VS. ITO ASST.YEAR 2014-15 - 3 - DURING THE APPEAL PROCEEDINGS. FURTHER, IT IS SEEN THAT TWO LETTERS WERE FILED BEFORE THE AO WHEREBY CONFIRMATION HAS BEEN GIVEN REGARDING DEPOSIT OF RS.3,00,000/- BY CHEQUE FROM SHRI S.P. T HAKKAR & ASSOCIATES, AHMEDABAD AND FOR DEPOSIT OF RS.2,50,00 0/- BY CHEQUE FROM SHIV CHROME PVT.LTD. A PERUSAL OF THESE LETTERS SH OWS THAT THESE HAVE BEEN SIGNED BY THE SAME PERSON. ALSO, PAN OF THESE PARTIES HAS NOT BEEN MENTIONED ON THESE LETTERS. ALL IN ALL THE AP PELLANT FAILED TO FILE CREDIBLE EVIDENCE TO EXPLAIN THE DEPOSITS OF RS.54, 68,135/- IN HIS BANK ACCOUNT. ACCORDINGLY, THE AO WAS JUSTIFIED IN MAK ING ADDITION OF RS.54,68,135/- U/S.69 OF THE ACT. ACCORDINGLY, ADD ITION OF RS.54,68,135/- IS UPHELD. THIS GROUND OF APPEAL IS REJECTED. 6. IN THE RESULT, THE APPEAL IS DISMISSED. 6. SUB-SECTION(6) OF SECTION 250 CONTEMPLATES THAT CIT(A) WOULD STATE THE POINTS IN DISPUTE AND THEREAFTER RECORD R EASONS IN RESPECT OF THOSE CONCLUSIONS. A PERUSAL OF THE FINDING OF THE LD.CIT(A) REVEALS THAT ASSESSEE FAILED TO SUBSTANTIATE ITS CONTENTION REGA RDING SOURCE OF CREDIT ENTRIES IN HIS BANK ACCOUNT. HE FAILED TO GIVE WOR KING OF DEPOSITS AND WITHDRAWALS FROM THE BANK. QUA THIS FINDING, WE AR E OF THE VIEW THAT SINCE THERE WAS A MARRIAGE IN THE OFFICE OF THE TAX CONSULTANT OF THE ASSESSEE AND TAX-CONSULTANT HAS FILED ADJOURNMENT L ETTER. THIS FACT MUST HAVE NOT BEEN BROUGHT TO THE NOTICE OF THE ASSESSEE THAT EX-PARTE PROCEEDINGS WOULD BE TAKEN UP AGAINST HIM. THE ASS ESSEE SHOULD BE MORE VIGILANT IN DOING THE INCOME-TAX PROCEEDINGS, BUT IF WE WEIGH THE SCALE REGARDING PUNISHMENT IN THE SHAPE OF TAX LIAB ILITY, VIS-A-VIS NEGLIGENCE OF THE ASSESSEE WOULD TILT IN FAVOUR OF ASSESSEE, BECAUSE ITA NO.270/AHD/2019 SHRI HASMUKH PRABHULAL MEHTA VS. ITO ASST.YEAR 2014-15 - 4 - PUNISHMENT IS DISPROPORTIONATE TO THE NEGLIGENCE. THE LD.FIRST APPELLATE AUTHORITY OUGHT TO HAVE GRANTED ONE MORE OPPORTUNIT Y TO THE ASSESSEE. 7. CONSIDERING THE ABOVE ASPECT, WE DEEM IT APPROPR IATE TO SET ASIDE THE IMPUGNED ORDER OF THE CIT(A) AND REMIT THESE IS SUES TO THE FILE OF LD.CIT(A) FOR FRESH ADJUDICATION. 8. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE COURT ON 13 -01-2020 AT AHMEDABAD. SD/- SD/- ( WASEEM AHMED ) ( RAJPAL YADAV ) ACCOUNTANT MEMBER JUDICIAL MEMBER AHMEDABAD; DATED 13/ 01 /2020 &.., .(../ T.C. NAIR, SR. PS !'#$%$' / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. )*+ , / CONCERNED CIT 4. , ( ) / THE CIT(A)-10, AHMEDABAD 5. /01 ((*+ , *+# , ) / DR, ITAT, AHMEDABAD 6. 145 6 / GUARD FILE. / BY ORDER, / ( //TRUE COPY// / ( DY./ASSTT.REGISTRAR) , / ITAT, AHMEDABAD