SRI A. ELUMALAI, KANCHEEPURAM V. ITO, WARD, KANCHEEPURAM

ITA 2996/CHNY/2019

• Counselvise Citation: [2021] 107 COUNSELVISE.COM (IT) 9864 (ITAT-CHENNAI)
• Duration Of Justice: 1 year(s) 9 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-07-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 14-07-2021
• Assessment Year: 2016-2017
• Appeal Filed On: 22-10-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: P. RAJASEKARAN
• Keywords: Principle of natural justice; Set aside
• Section: 143(2); 22

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH: CHENNAI , , $ BEFORE SHRI V. DURGA RAO, JUDICIAL MEMBER AND SHRI G. MANJUNATHA, ACCOUNTANT MEMBER ./ ITA NO.2996/CHNY/2019 /ASSESSMENT YEAR: 2016-17 SHRI A. ELUMALAI, NO.7, VAIGUNDA PERUMAL KOIL STREET, UTHIRAMERUR, KANCHIPURAM 603 406. [PAN: AAWPE 7210J] VS. THE INCOME TAX OFFICER , WARD-2, NO.96, MM AVENUE, 2 ND CROSS STREET, KANCHIPURAM-631 501. ( /APPELLANT) ( &'( /RESPONDENT) ( / APPELLANT BY : MR. P. RAJASEKARAN, C.A &'( /RESPONDENT BY : MR. SURESH PERIASAMY, JCIT /DATE OF HEARING : 14.07.2021 / DATE OF PRONOUNCEMENT : 22.07.2021 / O R D E R PER SHRI V. DURGA RAO, JUDICIAL MEMBER : THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAIN ST THE ORDER OF THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS)-7, CHENNAI IN I.T.A NO.151/CIT(A)-7/2018-19 DATED 20.08.2019 RELEVANT T O THE ASSESSMENT YEAR 2016-17. 2. THE FACTS ARE IN BRIEF THAT THE ASSESSEE IS AN I NDIVIDUAL DERIVING INCOME FROM MILK AGENCY IN THE NAME AND STYLE OF M/ S. SWAMI VIVEKANANDA AGENCY SINCE 2015. THE ASSESSEE HAS FI LED HIS RETURN OF I.T.A NO.2996/CHNY/2019 :- 2 -: INCOME FOR ASSESSMENT YEAR 2016-17 BY ADMITTING TOT AL INCOME OF RS. 2,42,140/- THE CASE WAS SELECTED FOR SCRUTINY AND NOTICES U/S. 143(2) OF THE INCOME TAX ACT, 1961 (HEREAFTER THE ACT) W AS ISSUED TO THE ASSESSEE. IN RESPONSE TO THE NOTICE, THE ASSESSEE SHRI A. ELUMALAI APPEARED IN PERSON. SUBSEQUENTLY, THE A.O WAS ISSU ED ANOTHER LETTER ON 08.10.2018 CALLING FOR DETAILS. IN RESPONSE TO THE LETTER ISSUED BY THE A.O, THE ASSESSEE APPEARED IN PERSON AND FURNISHED COPIES OF VOUCHERS AND BANK STATEMENTS. FROM THE DETAILS FIL ED BY THE ASSESSEE, THE A.O HAS NOTED THAT DURING THE COURSE OF DISCUSS ION, THE ASSESSEE IS ENGAGED IN MILK AGENCY AND RUNNING BUSINESS IN THE NAME AND STYLE OF M/S. SWAMI VIVEKANANDA AGENCY SINCE, 2015. DURING THE COURSE OF ASSESSMENT PROCEEDINGS, THE A.O HAS ASKED THE ASSES SEE TO FURNISH AN EXPLANATION AS TO WHY THE CASH DEPOSIT OF DEMONE TIZATION PERIOD I.E., (9 TH NOVEMBER TO 30 TH DECEMBER) IS REPORTED AS PER SFT REPORTING, NO RETURN WAS FILED FOR PRECEDING ASSESSMENT YEAR AND CURRENT YEAR RETURN FILED AFTER 07.11.2016. THE ASSESSEE WAS ASKED TO PRODUCE BANK STATEMENT FOR ALL THE ACCOUNTS MAINTAINED DURING FI NANCIAL YEAR 2015-16 AND ALSO COPY OF AGREEMENT. THE ASSESSEE HAS NOT A PPEARED FOR THE HEARING ON 15.11.2018 AND THERE WAS NO RESPONSE FRO M THE ASSESSEE. ACCORDINGLY, THE A.O HAS COMPLETED THE ASSESSMENT A ND THE INCOME ESTIMATED @ 8% OF RS. 1,52,00,000/- AND THE SAME IS BROUGHT TO TAX. ACCORDINGLY, ASSESSMENT IS COMPLETED. BEFORE THE L D. CIT(A), IT WAS I.T.A NO.2996/CHNY/2019 :- 3 -: SUBMITTED THAT THE ASSESSEE IS ONLY RECEIVING COMMI SSION FROM SUPPLY OF MILK MADE BY HIM AS AN ACTING AGENT FOR M/S. HAT SUN AGRO PRODUCT LTD. AND THEREFORE, THE AMOUNT DEPOSITED IN THE BAN K NOT BELONGING TO THE ASSESSEE IT IS BELONGING TO M/S. HATSUN AGRO PR ODUCT LTD., THEREFORE, THE ADDITION MADE BY THE A.O CAN BE DELE TED. THE LD. CIT(A) BY CONSIDERING THE EXPLANATION OF THE ASSESS EE HAS OBSERVED THAT THERE IS NO MENTIONING IN THE AGREEMENT WITH R EFERENCE TO COMMISSION RECEIVED BY THE ASSESSEE AND ALSO THE AS SESSEE IS NOT ABLE TO DEMONSTRATE HOW HE HAS EARNED THE COMMISSIO N OF RS. 2,42,140/- AND THE LD. CIT(A) CONFIRMED THE ORDER O F THE A.O. 3. ON APPEAL BEFORE US, THE LD. COUNSEL FOR THE ASS ESSEE HAS SUBMITTED THAT ONE MORE OPPORTUNITY MAY BE GIVEN TO SUBSTANTIATE HIS CASE BEFORE THE A.O AND ALSO SUBMITTED THAT ALL THE DETAILS IN RESPECT OF COMMISSION EARNED BY THE ASSESSEE ARE READY TO PROD UCE BEFORE THE A.O. 4. WE HAVE HEARD BOTH THE SIDES THROUGH VIDEO CONFE RENCING, PERUSED THE MATERIALS AVAILABLE ON RECORD AND GONE THROUGH THE ORDERS OF THE AUTHORITIES BELOW. IN THIS CASE, DESPITE VAR IOUS OPPORTUNITIES GIVEN, THE ASSESSEE HAS NOT ABLE TO FURNISH COMPLET E DETAILS BEFORE THE ASSESSING OFFICER. HOWEVER, IN ORDER TO SUBSTANTIAT E THE CLAIM OF THE ASSESSEE, THE LD. COUNSEL FOR THE ASSESSEE HAS PLEA DED BEFORE US THAT I.T.A NO.2996/CHNY/2019 :- 4 -: THE ASSESSEE MAY BE GIVEN ONE MORE OPPORTUNITY OF B EING HEARD. THUS, TO MEET THE ENDS OF NATURAL JUSTICE, WE ARE OF THE OPINION THAT ONE MORE OPPORTUNITY MAY BE GIVEN TO THE ASSESSEE TO SUBSTAN TIATE HIS CASE BEFORE THE A.O. ACCORDINGLY, WE SET ASIDE THE ORDER PASSED BY THE LD. CIT(A) AND REMIT THE MATTER BACK TO THE FILE OF A.O TO DECIDE THE ISSUE DE NOVO IN ACCORDANCE WITH LAW. WE ALSO DIRECT THE ASSESS EE TO FILE ALL RELEVANT MATERIAL TO SUBSTANTIATE HIS CASE BEFORE T HE A.O. ACCORDINGLY, THIS APPEAL IS ALLOWED FOR STATISTICAL PURPOSE. 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED FOR STATISTICAL PURPOSE. ORDER PRONOUNCED ON 22 ND JULY, 2021 IN CHENNAI. SD/ - SD/ - ( ) (G. MANJUNATHA) /ACCOUNTANT MEMBER ( ) (V. DURGA RAO) /JUDICIAL MEMBER /CHENNAI, /DATED: 22 ND JULY, 2021 . EDN, SR. P.S /COPY TO: 1. /APPELLANT 2. /RESPONDENT 3. ( )/CIT(A) 4. /CIT 5. /DR 6. /GF