R.Shankar, CHENNAI V. ITO, Trichy

ITA 280/CHNY/2015

• Counselvise Citation: [2017] 130 COUNSELVISE.COM (IT) 7948 (ITAT-CHENNAI)
• Duration Of Justice: 2 year(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-02-2017
• Appeal Filed By: Assessee
• Bench Allotted: C
• Next Hearing Date: 30-01-2017
• Assessment Year: 2010-2011
• Appeal Filed On: 02-02-2015
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: K.N.DHANDAPANI
• Assessee Lawyers: A.S.SRIRAMAN
• Keywords: Set aside
• Section: 32; 147; 131; 68; 246; 69; 145; 27; 148; 54; 37; 6; 56; 263; 63; 132; 12; 28; 144; 10; 90; 154; 2; 11; 15; 271(1)(b); 139; 92

Judgement Text

, C/ SMC , IN THE INCOME TAX APPELLATE TRIBUNAL C/SMC BENCH, CHENNAI . , BEFORE SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER ./ I.T.A.NO.280 /MDS./2015 ( / ASSESSMENT YEAR :2010-11) MR.R.SHANKAR, 5/56,SUBRAMANIKOVIL STREET, KALLATHUR UDAYARPALAYAM TALUK,ARIYALUR DISTRICT 621 803. VS. THE ITO, WARD IV(2), TIRUCHI. PAN BVYPS 3056 G ( / APPELLANT ) ( / RESPONDENT ) ! ' # / APPELLANT BY : MR.A.S.SRIRAMAN, ADVOCATE $% ! ' # / RESPONDENT BY : MR.K.N.DHANDAPANI, JCIT,DR & ' ' ( ) / DATE OF HEARING : 30.01.2017 *+ ' ( ) /DATE OF PRONOUNCEMENT : 02.02.2017 / O R D E R PER CHANDRA POOJARI, ACCOUNTANT MEMBER: ITA NO. 280/MDS/2015 2 THIS APPEAL IS FILED BY THE ASSESSEE, AGGRIEVED B Y THE ORDER OF THE LEARNED COMMISSIONER OF INCOME TAX(A), TRICHY DATED 03.11.2014 PERTAINING TO ASSESSMENT YEAR 2010-11. 2. THE MAIN GRIEVANCE OF ASSESSEE IN HIS APPEAL IS WITH REGARD TO CHALLENGING THE ADDITION OF ` 4,05,500/- TOWARDS UNEXPLAINED CASH DEPOSITS IN BANK ACCOUNT U/S.69 OF THE ACT AS WELL AS AN AMOUNT OF ` 20 LAKHS AS UNEXPLAINED INCOME STATED TO BE REALIZ ED FROM SUNDRY DEBTORS U/S.69 OF THE ACT. 3. THE FACTS OF THE ISSUE ARE THAT THE AO MADE A N ADDITION OF ` 4,05,550/- TOWARDS UNEXPLAINED CASH DEPOSITS IN BA NK ACCOUNT U/S.69 OF THE ACT AND AN AMOUNT OF ` 20 LAKHS AS UNEXPLAINED INCOME STATED TO BE REALIZED FROM SUNDRY DEBTORS U/ S.69 OF THE ACT. THE ASSESSEE STATED THAT ASSESSEE RECEIVED ` 29,20,000/- FROM THE ASSESSEES BROTHER MR.R.SHANMUGAM AND HIS BROTHER IN LAW MR. MR.P.VELAYUTHAM DURING THE YEAR 2008-09. FROM THIS AMOUNT AND OUT OF HIS PAST SAVINGS, THE ASSESSEE HAS ADVANCED A SU M OF ` 32 LAKHS TO HIS FRIENDS AND RELATIVES. THE ASSESSEE FILED A CASH FLOW STATEMENT ITA NO. 280/MDS/2015 3 FOR ASSESSMENT YEAR 2009-10 BEFORE THE LOWER AUTHOR ITIES. SINCE THE ASSESSEE HAS NOT FILED THE DETAILS OF LOAN DEBTORS, THE AO HAS NOT BELIEVED THE CONTENTION OF ASSESSEE. ACCORDING TO A O, ASSESSEE HAS NOT REALIZED ANY AMOUNT FROM THE DEBTORS DURING TH E FINANCIAL YEAR 2010-11, THOUGH THE ASSESSEE SHOWS AN AMOUNT OF ` 24.5 ALKHS AS OUTSTANDING FROM SUNDRY DEBTORS AS ON 31.03.2011. SINCE THE ASSESSEE FAILED TO CORRELATE THE EVIDENCES FOR THE UNEXPLAINED CASH DEPOSITS OF ` 4,05,500/- AND REALIZATION OF SUNDRY DEBTORS AT ` 20 LAKHS, LD.CIT(A) CONFIRMED THE ADDITION. AGAINST TH IS, THE ASSESSEE IS IN APPEAL BEFORE US. 4. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE MATERIAL ON RECORD. BEFORE US, LD.A.R PLEADED THAT ONE MORE O PPORTUNITY TO BE GIVEN TO THE ASSESSEE TO PRODUCE NECESSARY DETAILS BEFORE THE AO, SINCE THE ORDER OF THE LD.CIT(A) WAS VERY CRYPTIC A ND NOT GIVEN ANY REASON FOR CONFIRMING THE ADDITION, AND NOT APPRECI ATED THE EVIDENCE PROPERLY. IN OUR OPINION, IT IS APPROPRIATE TO REM IT THE ISSUE IN DISPUTE TO THE FILE OF LD.CIT(A) FOR HIS CONSIDERATION. THE REFORE, WE SET ASIDE ITA NO. 280/MDS/2015 4 THE ORDER OF LOWER AUTHORITIES AND DIRECT THE LD.CI T(A) TO PASS FRESH ORDER IN ACCORDANCE WITH LAW. 4. IN THE RESULT, THE APPEAL OF ASSESSEE IS PARTLY ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED ON 02 ND FEBRUARY, 2017 AT CHENNAI. SD/- ( ) ( CHANDRA POOJARI ) /ACCOUNTANT MEMBER CHENNAI, DATED THE 02 ND FEBRUARY, 2017 . K S SUNDARAM. , ' $(-. /.( / COPY TO: 1 . ! / APPELLANT 3. & 0( () / CIT(A) 5. .3 4 $(5 / DR 2. $% ! / RESPONDENT 4. & 0( / CIT 6. 4 6 7 ' / GF