ACIT-CENTRAL-CIRCLE-1(2), Nagpur V. SHRI CHANDRAKANT GADGE, Nagpur

ITA 271/NAG/2014

• Counselvise Citation: [2015] 134 COUNSELVISE.COM (IT) 1563 (ITAT-NAGPUR)
• Duration Of Justice: 1 year(s) 6 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-11-2015
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2007-2008
• Appeal Filed On: 09-05-2014
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: ANITA RUPVANTARAM
• Keywords: Opportunity of being heard

Judgement Text

1 ITA NOS. 271 & 272/NAG/2013 IN THE INCOME TAX APPELLATE TRIBUNAL, NAGPUR BENCH, NAGPUR BEFORE SHRI MUKUL K. SHRAWAT, JUDICIAL MEMBER AND SHRI SHAMIM YAHYA, ACCOUNTANT MEMBER. I.T.A. NOS. 271 & 272/NAG/2014 ASSESSMENT YEARS : 2007 - 08 & 2008 - 09. ASSTT. COMMISSIONER OF INCOME - TAX, SHRI CHANDRAKANT GADGE, CENTRAL CIRCLE - 1(2), NAGPUR. VS. NAGPUR. APPELLANT. RESPONDENT. APPELLANT BY : SMT. A NITA RUPVANTARAM. RESPONDENT BY : S HRI MUKESH AGRAWAL. DATE OF HEARING : 30 - 11 - 2015. DATE OF PRONOUNCEMENT : 30 TH NOV., 2015. O R D E R PER SHRI SHAMIN YAHYA, A.M . THESE APPEALS BY THE REVENUE ARE DIRECTED AGAINST THE RESPECTIVE ORDERS OF LEARNED CIT(APPEALS) FOR CONCERNED ASSESSMENT YEARS. SINCE THE ISSUES RAISED ARE COMMON AND CONNECTED AND THE APPEALS WERE HERD TOGETHER, THESE HAVE BEEN CONSOLIDATED AND DISPOSED OF TOGETHER. 2. THE C OMMON ISSUE RAISED IS THAT THE CIT(APPEALS) ERRED IN DIRECTING THE AO TO DELETE THE ADDITION ON ACCOUNT OF UNEXPLAINED MONEY U/S 69A OF THE I.T. ACT. 3. BRIEF FACTS OF THE CASE ARE THAT IN THE BANK ACCOUNT OF THE ASSESSEE LARGE AMOUNT OF DEPOSITS WERE OBSE RVED. THERE WERE WITHDRAWALS ALSO THEREFROM. IN EXPLANATION THEREOF THE ASSESSEE SUBMITTED THAT HE WAS A COMMISSION AGENT FROM RAJKUMAR CIRCUS, USED TO RECEIVE MONEY ON BEHALF OF TICKET SALES OF CIRCUS AND HE USED TO WITHDRAW AND MAKE PAYMENTS TO THE CIR CUS. NO EXPLANATION 2 ITA NOS. 271 & 272/NAG/2013 WHATSOEVER OR EVIDENCE OR AGREEMENT WITH THE CIRCUS OR CONFIRMATION THEREOF WAS SUBMITTED TO THE AO. AO REJECTED THE S UBMISSION. 3. UPON ASSESSEES APPEAL, LEARNED CIT(APPEALS) OBSERVED THAT THE AO HAS NOT BROUGHT ANY MATERIAL ON REC ORD TO PROVE THAT THE INCOME CREDITED IN THE BANK ACCOUNT OF THE ASSESSEE ACTUALLY WAS THE INCOME OF THE ASSESSEE. LEARNED CIT(APPEALS) NOTED THAT THE AO HAS MADE NO EXAMINATION OR INVESTIGATION. HENCE LEARNED CIT(APPEALS) DIRECTED THAT THE ADDITION BE DEL ETED. 4. AGAINST THE ABOVE ORDER, REVENUE IS IN APPEAL BEFORE US. 5. WE HAVE HEARD BOTH THE COUNSEL AND PERUSED THE RECORDS. WE FIND THAT HUGE AMOUNT OF DEPOSITS ARE THERE IN THE ASSESSEES BANK ACCOUNT. ASSESSEES EXPLANATION IS THAT HE IS COMMISSION AGEN T OF THE C IRCUS AND THE DEPOSITS ARE RECEIPTS OF TICKETS SALE OF C IRCUS WHICH HAVE LATERON BEEN PAID OVER TO THE C IRCUS, AND THE ASSESSEE IS ONLY ENTITLED TO COMMISSION. FOR THE ABOVE EXPLANATION THE ASSESSEE HAS NOT SUBMITTED ANY CORROBORATIVE EVIDENCE WHATSOEVER. NOT EVEN A CONFIRMATION FROM THE C IRCUS TO THE ABOVE PROPOSITION HAVE BEEN SUBMITTED. AS AGAINST THE ABOVE, LEARNED CIT(APPEALS) NOTED THAT THE AO HAS ERRED IN REJECTING THE EXPLANATION OF THE ASSESSEE AND THAT THE AO HAS ERRED IN NOT MAKING ANY INVESTIGATION. 6. UPON CAREFUL CONSIDERATION WE FIND THAT THE EXPLANATION REGARDING DEPOSITS IN THE BANK ACCOUNT THAT THE SAME PERTAIN TO SOMEBODY ELSE INCOME DEHORSE ANY CORROBORATIVE MATERIAL CANNOT BE SAID TO BE SUFFICIENT EXPLANATION. HENCE LEARNED CIT(APPEALS) DIRECTION TO DELETE THE SAME IS NOT SUSTAINABLE. LEARNED COUNSEL OF THE ASSESSEE ACCEPTED THAT HE HAS NOT SUBMITTED ANY EXP LANATION OR CONFIRMATION FROM THE SAID C IRCUS ALSO. HE PRAYED THAT IF THE MATTER IS REMITTED TO THE FILE OF THE AO HE SHALL BE IN A POSITION TO CORROBORATE THE SUBMISSION OF THE ASSESSEE WITH NECESSARY EVIDENCES AND CONFIRMATION FROM THE SAID C IRCUS. 3 ITA NOS. 271 & 272/NAG/2013 7. U PON CAREFUL CONSIDERATION, IN THE INTEREST OF JUSTICE , WE REMIT THE ISSUE TO THE FILE OF THE AO. THE AO SHALL CONSIDER THE ISSUE AFRESH AFTER GIVING THE ASSESSEE PROPER OPPORTUNITY OF BEING HEARD. 8. IN THE RESULT, THESE APPEALS BY THE REVENUE STAND ALLOW ED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 30 TH DAY OF NOV., 2015. SD/ - SD/ - (MUKUL K. SHRAWAT) ( SHAMIM YAHYA) JUDICIAL MEMBER ACCOUNTANT MEMBER. NAGPUR, DATED: 30 TH NOV., 2015. COPY FORWARDED TO : 1. M/S RADHIKA METALS & MINERALS, 3 RD FLOOR, RAJKAMAL COMPLEX, DANTHOLI, NAGPUR. 2. ADDL. CIT, RANGE - 1, NAGPUR. 3. C.I.T., CONCERNED 4. CIT(APPEALS) - , NAGPUR. 5. D.R., ITAT, NAGPUR. 6. GUARD FILE TRUE COPY BY ORDER ASSISTANT REGISTRAR, ITAT, NAGPUR WAKODE.