Shri K.B.Nirmal Kumar, CHENNAI V. ITO, CHENNAI

ITA 273/CHNY/2010

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 57924 (ITAT-CHENNAI)
• Duration Of Justice: 1 year(s) 10 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-01-2012
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Next Hearing Date: 30-01-2012
• Assessment Year: 2006-2007
• Appeal Filed On: 05-03-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DR I VIJAYAKUMAR
• Assessee Lawyers: V D GOPAL
• Keywords: Unexplained cash credit

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL BENCH C CHENNAI BEFORE SHRI N. S. SAINI, ACCOUNTANT MEMBER AND SHRI GEORGE MATHAN, JUDICIAL MEMBER .. I.T.A. NO. 273/MDS/2010 ASSESSMENT YEAR : 2006-07 SHRI K.B. NIRMAL KUMAR, NO.3, II FLOOR, JAFFER SYRANG ST., CHENNAI-600 001. V. THE INCOME TAX OFFICER, BUSINESS WARD-IX(1), CHENNAI. [PAN: AAEPN7905P] (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI V. D. GOPAL, ADVOCATE RESPONDENT BY : DR. I. VIJAYAKUMAR, CIT-DR DATE OF HEARING : 30-01-2012 DATE OF PRONOUNCEMENT : 30-01-2012 O R D E R PER GEORGE MATHAN, JUDICIAL MEMBER : THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST TH E ORDER OF THE LEARNED CIT(APPEALS)-IX, CHENNAI IN ITA NO. 147/08-09 DATED 11-11-2009 FOR THE ASSESSMENT YEAR 2006-07. 2. SHRI V. D. GOPAL, ADVOCATE REPRESENTED ON BEHALF OF THE ASSESSEE AND DR. I. VIJAYAKUMAR, LEARNED CIT-DR REPRESENTED ON BEHALF O F THE REVENUE. I.T.A. NO. 273/MDS/2010 2 3. IT WAS SUBMITTED BY THE LEARNED AUTHORISED REPRE SENTATIVE THAT THE ASSESSEE IS AN INDIVIDUAL WHO IS DERIVING INCOME FROM PARTNE RSHIP FIRMS AND INCOME FROM HOUSE PROPERTY. IT WAS THE SUBMISSION THAT THE ASS ESSEE HAD FILED HIS RETURN OF INCOME FOR THE RELEVANT ASSESSMENT YEAR ADMITTING A TAXABLE INCOME OF ` 73,337/-. IT WAS THE SUBMISSION THAT ON THE BASIS OF AN AIR I NFORMATION THAT THE ASSESSEE HAD DEPOSITED CASH OF ` 9,90,000/- IN HIS BANK ACCOUNT, THE ASSESSING OFFI CER HAD CALLED FOR THE ASSESSEES EXPLANATION BY SERVICE OF NOTICE U/S 143(2) ON 09-09-2008. IT WAS THE SUBMISSION THAT THE ASSESSEE HAD REPLIED ON 29-12-2008. HOWEVER, WITHOUT CONSIDERING THE EXPLANATION OF THE ASSESSEE NOR CALLING FOR ANY FURTHER CLARIFICATION, THE ASSESSING OFFICER HAD COMPLETED THE ASSESSMENT ON 31-12-2008 ADDING THE CREDITS AS APPEARING IN THE BANK ACCOUNT AS THE UNEXPLAINED CASH CREDITS. IT WAS THE SUBMISSION THAT THE ASSESSEE H AD PRODUCED THE EVIDENCES BEFORE THE LEARNED CIT(A) IN REGARD TO THE SOURCES OF THE CREDITS. IT WAS THE SUBMISSION THAT THE AMOUNTS HAD BEEN RECEIVED FROM THE RELATIVES OF THE ASSESSEE AND CONFIRMATION LETTERS HAD ALSO BEEN PRODUCED. I T WAS THE SUBMISSION THAT THE LEARNED CIT(A) HAD, WITHOUT CONSIDERING THE EVIDENC ES PRODUCED, HELD THE ISSUE AGAINST THE ASSESSEE. IT WAS THE SUBMISSION THAT T HE ASSESSEE MAY BE GRANTED ANOTHER OPPORTUNITY TO PRODUCE ALL THE EVIDENCES BE FORE THE ASSESSING OFFICER AS ALSO TO PROVE THE CREDITWORTHINESS OF THE CREDITORS . 4. IN REPLY, THE LEARNED DR VEHEMENTLY SUPPORTED TH E ORDERS OF THE LEARNED CIT(A) AND THE ASSESSING OFFICER. I.T.A. NO. 273/MDS/2010 3 5. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS. AS IT IS NOTICED THAT THE ASSESSEE HAS GIVEN EXPLANATION IN REGARD TO THE CREDITS APPE ARING IN HIS BANK ACCOUNT AND AS IT IS NOTICED THAT THE LEARNED CIT(A) HAS CONFIRMED THE ADDITIONS MAINLY ON THE GROUND THAT THE CONFIRMATION LETTERS ARE MORE OR LE SS STEREO-TYPE AND THE ASSESSEE HAD NOT PROVED THE CREDITWORTHINESS OF THE CREDITOR S, WE ARE OF THE VIEW THAT THIS ISSUE IS LIABLE TO BE RESTORED TO THE FILE OF THE A SSESSING OFFICER FOR RE-ADJUDICATION AFTER GRANTING THE ASSESSEE ADEQUATE OPPORTUNITY TO SUBSTANTIATE HIS CLAIM AND WE DO SO. IN THE CIRCUMSTANCES, THE ISSUE IN THIS APP EAL IS RESTORED TO THE FILE OF THE ASSESSING OFFICER FOR RE-ADJUDICATION AFTER GRANTIN G THE ASSESSEE ADEQUATE OPPORTUNITY TO SUBSTANTIATE HIS CLAIM. THE ASSESSE E SHALL CO-OPERATE AND PRODUCE ALL SUCH EVIDENCES AS HE MAY DESIRE IN THE SET ASID E PROCEEDINGS. IN THE CIRCUMSTANCES, THE APPEAL OF THE ASSESSEE IS ALLOWE D FOR STATISTICAL PURPOSES. 6. THE ORDER WAS PRONOUNCED IN THE COURT ON 30/01/2 012. SD/- SD/- (N. S. SAINI) (GEORGE MATHAN) ACCOUNTANT MEMBER JUDICIAL MEMBER CHENNAI, DATED THE 30 TH JANUARY, 2012. H. COPY TO: ASSESSEE/AO/CIT (A)/CIT/D.R./GUARD FILE