Anita Drolia, Kolkata V. JCIT(OSD), Central Circle-XX,Kolkata, Kolkata

ITA 2738/KOL/2013

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 9589 (ITAT-KOLKATA)
• Duration Of Justice: 3 year(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-01-2017
• Appeal Filed By: Assessee
• Bench Allotted: C
• Next Hearing Date: 31-10-2016
• Assessment Year: 2009-2010
• Appeal Filed On: 09-12-2013
• Court: TRIBUNAL

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH : KOLKATA [BEFORE HONBLE SRI ABY T.VARKEY, JM & DR.ARJUN L AL SAINI, AM ] I.T.A NO.2738/KOL/201 3 ASSESSMENT YEAR : 2009-1 0 ANITA DROLIA -VS.- J.C.I.T., CENTRAL C IRCLE-XX, KOLKATA KOLKATA [PAN : ADFPD 1704 L] (APPELLANT) (RESPONDENT) FOR THE APPELLANT : NONE FOR THE RESPONDENT : SHRI RAJAT KUMAR KUREEL, H CIT.SR.DR DATE OF HEARING : 21.12.2016. DATE OF PRONOUNCEMENT : . 01.2017. ORDER PER ABY T.VARKEY, JM THIS IS AN APPEAL PREFERRED BY THE ASSESSEE AGAINST THE ORDER OF CIT(A)-CENTRAL- III, KOLKATA DATED 24.10.2012 FOR AY 2009-10. 2. NONE APPEARED ON BEHALF OF THE ASSESSEE. HOWE VER, AFTER GOING THROUGH THE RECORDS WE ARE OF THE OPINION THAT WE CAN DECIDE THE APPEAL WITHOUT THE ASSISTANCE FROM THE LD.AR AND AFTER HEARING THE LD. DR. THEREFORE WE PR OCEED TO ADJUDICATE THE APPEAL ON MERITS. 3. THE MAIN GRIEVANCE OF THE ASSESSEE IS THAT THE L D. CIT(A) ERRED IN CONFIRMING THE ADDITION OF RS.88,23,444/- AS UNDISCLOSED INVESTMEN T WITHOUT GIVING PROPER OPPORTUNITY TO THE ASSESSEE OF BEING HEARD. 4. THE BRIEF FACTS OF THE CASE IS THAT THE AO GOT I TS DETAILS SHOWING THAT THE ASSESSEE HAD PURCHASED IMMOVABLE PROPERTY FOR A SUM OF RS.88 ,23,444/-. WHEN ASKED BY THE AO 2 ITA NO.2738/KOL/2013 ANITA DROLIA A.YR.2009-10 2 TO EXPLAIN ABOUT THE INVESTMENT AND TO PRODUCE DOCU MENTARY EVIDENCE REGARDING THE SAME, THE AO NOTES THAT THE ASSESSEE FAILED TO REP LY TO HIS LETTER DATED 14.11.2011 WHICH PROMPTED HIM TO PASS THE ASSESSMENT ORDER WHEREIN H E ADDED A SUM OF RS.88,23,444/- AS AN UNDISCLOSED INVESTMENT OF THE ASSESSEE. AGGRI EVED THE ASSESSEE PREFERRED AN APPEAL BEFORE THE LD. CIT(A), WHO INITIALLY LISTED THE MATTER ON 23.08.2012. THEREAFTER ADJOURNED THE MATTER TO 20.09.2012 AND THEREAFTER T O 05.10.2012 AND THE LD. CIT(A) OBSERVED THAT SINCE THE ASSESSEE HAD NOT COMPLIED WITH THE NOTICES HE HAS NO ALTERNATIVE BUT TO DECIDE THE APPEAL EXPARTE. AGGRIEVED THE ASS ESSEE IS BEFORE US. 5. WE HAVE HEARD THE LD. DR AND PERUSED THE REC ORDS. WE TAKE NOTE THAT THE AO GOT ITS DETAILS WHICH INDICATE THAT THE ASSESSEE HAD PU RCHASED IMMOVABLE PROPERTY AT A VALUE OF RS.88,23,444/- DURING THE YEAR. THE AOS C ASE IS THAT WHEN THE ASSESSEE WAS ASKED VIDE LETTER DATED 14.11.2011 NO REPLY WAS REC EIVED. SO THE AO WENT AHEAD AND PASSED THE ASSESSMENT ORDER ON 26.12.2011 BY MAKING AN ADDITION OF RS.88,23,444 AS UNDISCLOSED INVESTMENT OF THE ASSESSEE. HOWEVER, T HE CASE OF THE ASSESSEE IS THAT SHE HAD REPLIED VIDE DATED 27.11.2011 AND HAS CLEARLY B ROUGHT TO THE NOTICE OF THE AO THAT THE IMMOVABLE PROPERTY AS APPEARING IN ITS REPORT A BOUT THE PURCHASE WAS NOT CORRECT BECAUSE THE PROPERTY DOES NOT BELONG TO THE ASSESSE E AND SHE WAS ONLY A NOMINEE FOR THE ACTUAL PURCHASEE. SO ACCORDING TO THE ASSESSEE THE ADDITION IS NOT LEGALLY TENABLE. HOWEVER, WE NOTE THAT THE AO HAS BEEN SILENT IN RES PECT TO THE SAID REPLY OF THE ASSESSEE BECAUSE THE ASSESSMENT ORDER IS DATED 26.12.2011 AN D THE ASSESSEES REPLY TO AO WAS DATED 27.11.2011, I.E. AFTER THE ASSESSMENT ORDER, SO THE AO IS NOT FAULT. ON APPEAL THE LD. CIT(A) AFTER FIXING THE MATTER TWICE SIMPLY SAI D THAT SINCE THE ASSESSEE COULD NOT BRING ANY EVIDENCE TO SUPPORT HER CLAIM HE DISMISSE D THE APPEAL EXPARTE. WE TAKE NOTE THAT THE AO PASSED THE ASSESSMENT ORDER WITHOUT CON SIDERING THE PLEA AND CASE OF THE ASSESSEE REGARDING NON-PURCHASE OF IMMOVABLE PROPER TY. THE DEFENCE OF THE ASSESSEE IS THAT SHE IS ONLY A NOMINEE OF THE ACTUAL PURCHASEE AND SO SHE HAS NOT PURCHASED THE PROPERTY. WHATEVER MAY BE VERACITY OF THE CLAIM OR THE LEGAL VALIDITY OF THE CLAIM, WE 3 ITA NO.2738/KOL/2013 ANITA DROLIA A.YR.2009-10 3 FIND THAT AO AND THE LD. CIT(A) HAS PASSED VIRTUALL Y EXPARTE ORDERS, SO WE ARE OF THE CONSIDERED OPINION THAT THE ASSESSEE MAY BE GIVEN AN OPPORTUNITY TO ADDUCE THE EVIDENCES TO SUBSTANTIATE HER CASE THAT THE PROPERT Y REPORTED BY ITS HAS NOT BEEN PURCHASED BY THE ASSESSEE. IN THE INTEREST OF JUSTI CE WE SET ASIDE THE ORDER OF THE LD. CIT(A) AND REMAND THE MATTER BACK TO THE FILE OF TH E AO WITH THE DIRECTION THAT THE AO DE NOVO SHALL EXAMINE THE VERACITY OF THE CONTENTIO NS MADE BY THE ASSESSEE AND AFTER GIVING ADEQUATE OPPORTUNITY SHALL DECIDE THE ISSUE AFRESH IN ACCORDANCE TO LAW. 6. IN THE RESULT THE APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE COURT ON 06. 01.2017. SD/- SD/- [DR.A.L.SAINI] [ ABY T.VARKEY ] ACCOUNTANT MEMBER JUDICIAL MEMBER DATED :06 .01.2017. [RG PS] COPY OF THE ORDER FORWARDED TO: 1.ANITA DROLIA, 13, BRABOURNE ROAD, 4 TH FLOOR, SUBOL DUTTA BUILDING, KOLKATA-700001. 2. J.C.I.T., (OSD)CENTRAL CIRCLE-XX, KOLKATA. . 3..CIT(A)-CENTRAL-III, KOLKATA 4. CIT CENT RAL-III, KOLKATA. 5. CIT(DR), KOLKATA BENCHES, KOLKATA. TRUE COPY BY ORDER ASSTT.REGISTRAR, ITAT, KOLKATA BENCHES 4 ITA NO.2738/KOL/2013 ANITA DROLIA A.YR.2009-10 4