S Murugesan, Chennai V. ITO, Non Corporate Ward 22(3), Chennai

ITA 293/CHNY/2018

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 7322 (ITAT-CHENNAI)
• Duration Of Justice: 1 year(s) 6 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-07-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Assessment Year: 2009-2010
• Appeal Filed On: 23-01-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: R PADMANABHAN

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL , D BENCH, CHENNAI . . . , , BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI S. JAYARAMAN, ACCOUNTANT MEMBER ./ I.T.A.NO.292 & 293/CHNY/2018 ( [ [ / ASSESSMENT YEAR: 2009-10) SHRI S. MURUGESAN, S1, PLOT NO.31 & 32, VGN KROMA, GERUGAMBAKKAM, CHENNAI - 600 122. VS THE INCOME TAX OFFICER, NON CORPORATE WARD 22(3), CHENNAI. PAN: AFHPM9878E ( /APPELLANT) ( /RESPONDENT) / APPELLANT BY : SHRI R. PADMANABHAN, CA / RESPONDENT BY : DR. S. PANDIAN, JCIT /DATE OF HEARING : 22.07.2019 /DATE OF PRONOUNCEMENT : 23.07.2019 / O R D E R PER S. JAYARAMAN, ACCOUNTANT MEMBER: THE ASSESSEE FILED THESE APPEALS AGAINST THE ORDERS OF THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS)-10, CHENNAI IN ITA NO.35/2012-13/CIT(A)-10 DATED 25.09.2017 AGAINST THE ORDER PASSED BY THE ASSESSING OFFICER U/S.144 OF THE INCOME TAX ACT, 1961 (IN SHORT THE ACT) DATED 30.12.2011 FOR THE ASSESSMENT YEAR 2009-10 AND IN ITA NO.34/2012-13/CIT(A)-10 DATED 29.09.2017 AGAINST THE 2 ITA NOS.292 & 293/CHNY/2018 PENALTY ORDER PASSED BY THE ASSESSING OFFICER U/S.271(1)(C) OF THE ACT DATED 21.06.2012 FOR THE ASSESSMENT YEAR 2009-10. 2. SINCE THE ASSESSEE, SHRI S. MURUGESAN, DID NOT RESPOND TO THE STATUTORY NOTICES ISSUED BY THE ASSESSING OFFICER, THE ASSESSING OFFICER COMPLETED THE ASSESSMENT FOR THE ASSESSMENT YEAR 2009-10 U/S.144 OF THE ACT, ADDING RS.13,20,000/- AS UNEXPLAINED CASH DEPOSIT AND RS.2,09,150/- TOWARDS UNEXPLAINED SOURCES FOR THE CREDIT CARD PAYMENT. THE ASSESSING OFFICER ALSO LEVIED PENALTY U/S.271(1)(C) OF THE ACT ON THE AMOUNT ADDED TO THE RETURNED INCOME. AGGRIEVED AGAINST BOTH THE ORDERS, THE ASSESSEE FILED APPEALS BEFORE THE CIT(A). THE LD.CIT(A) ON THE QUANTUM ADDITION GAVE PARTIAL RELIEF BUT CONFIRMED THE PENALTY ORDER TO THE EXTENT OF ADDITIONS SUSTAINED BY HIM. AGGRIEVED AGAINST BOTH THE ORDERS, THE ASSESSEE FILED THESE APPEALS. 3. THE ASSESSEE, PRIMARILY SOUGHT AN OPPORTUNITY TO PRODUCE THE EVIDENCE OF BOOKS OF ACCOUNTS, BANK STATEMENTS ETC., BEFORE THE ASSESSING OFFICER, AS THE ASSESSING OFFICER HAS NOT VERIFIED THE BOOKS OF SURVEY.COM AND OTHERS DURING THE ASSESSMENT PROCEEDINGS AND THE LD.CIT(A) FOLLOWED THE ORDER OF THE ASSESSING OFFICER WITHOUT 3 ITA NOS.292 & 293/CHNY/2018 VERIFYING THE BOOKS OF SURVEY.COM, ETC. PER CONTRA, THE LD.DR SUPPORTED THE ORDERS OF THE LOWER AUTHORITIES. 4. WE HEARD THE RIVAL SUBMISSIONS. THE ASSESSEE HAS NOT COMPLIED WITH THE ASSESSMENT PROCEEDINGS BEFORE THE ASSESSING OFFICER. THEREFORE, THE ASSESSING OFFICER COMPLETED THE ASSESSMENT U/S.144 OF THE ACT. DURING THE APPELLATE PROCEEDINGS, BASED UPON THE MATERIAL FURNISHED BY THE ASSESSEE, THE LD.CIT(A) REQUIRED THE ASSESSING OFFICER TO FURNISH A REMAND REPORT AND BASED ON WHICH HE DISPOSED THE APPEALS. THE LD.AR PLEADS THAT THIS TRIBUNAL MAY REMIT BACK THE ISSUES TO THE ASSESSING OFFICER TO VERIFY THE BOOKS OF ACCOUNTS AND OTHER MATERIALS OF WHICH THE ASSESSEE RELIES IN SUPPORT OF HIS CONTENTION SO THAT THE ASSESSEE GETS DUE JUSTICE. IN THE FACTS AND CIRCUMSTANCES, WE DEEM IT FIT TO REMIT THE ISSUES IN CONNECTION WITH THE QUANTUM ADDITION BACK TO THE ASSESSING OFFICER FOR A FRESH EXAMINATION. THE ASSESSEE SHALL PLACE ALL THE MATERIALS IN SUPPORT OF HIS CONTENTION BEFORE THE ASSESSING OFFICER AND COMPLY WITH THE REQUIREMENTS OF THE ASSESSING OFFICER IN ACCORDANCE WITH LAW. THE ASSESSING OFFICER IS FREE TO CONDUCT APPROPRIATE ENQUIRY, AS DEEMED FIT, HOWEVER, HE SHALL FURNISH ADEQUATE OPPORTUNITY TO THE ASSESSEE AGAINST THE MATERIAL, IF ANY, TO BE USED AGAINST HIM AND THEN DECIDE 4 ITA NOS.292 & 293/CHNY/2018 THE ISSUES IN ACCORDANCE WITH LAW. HENCE, THE ASSESSEES QUANTUM APPEAL IN ITA NO.292/CHNY/2018 IS TREATED AS ALLOWED FOR STATISTICAL PURPOSES. 5. SINCE THE QUANTUM ADDITION IS REMITTED BACK TO THE ASSESSING OFFICER FOR A FRESH EXAMINATION, THE APPEAL IN ITA NO.293/CHNY/2018 AGAINST THE PENALTY ORDER IS ALSO REMITTED BACK TO THE ASSESSING OFFICER TO BE DECIDED IN ACCORDANCE WITH MERITS. 6. IN THE RESULT, BOTH THE APPEALS ARE TREATED AS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED ON THE 23 RD JULY, 2019 AT CHENNAI. SD/- SD/- /CHENNAI, /DATED 23 RD JULY, 2019 RSR /COPY TO: 1. /APPELLANT 2. /RESPONDENT 3. ( ) /CIT(A) 4. /CIT 5. /DR 6. [ /GF ( . . . ) (N.R.S. GANESAN) / JUDICIAL MEMBER ( ) (S. JAYARAMAN) /ACCOUNTANT MEMBER