RAMESH NAGPAL, Ajmer V. ITO, Ajmer

ITA 3/JPR/2017

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 1988 (ITAT-JAIPUR)
• Duration Of Justice: 9 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-10-2017
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Next Hearing Date: 21-07-2017
• Assessment Year: 2012-2013
• Appeal Filed On: 02-01-2017
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: POONAM RAI DCIT DR DHK
• Keywords: Opportunity of being heard; Principle of natural justice
• Section: 14A

Judgement Text

ITA NO.3/JP/2017 S HRI RAMESH NAGPAL VS ITO, WARD- 1(2), AJMER 1 VK;DJ VIHYH; VF/KDJ.K] T;IQJ U;K;IHB] T;IQJ IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES (SMC), JAIPUR JH HKKXPUN] YS[KK LNL; DS LE{K BEFORE: SHRI BHAGCHAND, ACCOUNTANT MEMBER VK;DJ VIHY LA-@ ITA NO. 3/JP/2017 FU/KZKJ.K O'K Z@ ASSESSMENT YEAR : 2012-13 SHRI RAMESH NAGPAL PROP. M/S. SARASWATI TRADING CO. CINEMA ROAD, AJMER CUKE VS. THE ITO WARD- 1(2) AJMER LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN/GIR NO .: AAOPN 7587 M VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT FU/KZKFJRH DH VKSJ LS@ ASSESSEE BY: WRITTEN SUBMISSION JKTLO DH VKSJ LS@ REVENUE BY :SMT. POONAM RAI, DCIT- DR LQUOKBZ DH RKJH[K@ DATE OF HEARING : 13/09/2017 ?KKS'K .KK DH RKJH[K@ DATE OF PRONOUNCEMENT : 6/10/2017 VKNS'K@ ORDER PER BHAGCHAND, AM THE ASSESSEE HAS FILED AN APPEAL AGAINST THE ORDER OF THE LD. CIT(A), AJMER DATED 18-10-2016 FOR THE ASSESSMENT YEAR 2012-13 RA ISING THEREIN FOLLOWING GROUNDS:- (I) IN THE FACTS & CIRCUMSTANCES OF THE CASE, THE LD. C IT(A), AJMER HAS ERRED IN NOT DELETING THE ADDITION OF RS. 62,865/- U/S 14 A WRONGLY INVOKING BY THE AO IN THE SAID SECTION AND INCORRECT CALCULATIO N UNDER RULE 8 WHICH IS AGAINST LAW AND NATURAL JUSTICE AND REQUIRED TO BE DELETED. (II) IN THE FACTS & CIRCUMSTANCES OF THE CASE, THE LD. C IT(A), AJMER HAS ERRED IN NOT DELETING THE ADDITION OF RS. 2,12,136/- UNDE R THE HEAD INCOME FROM OTHER SOURCES MADE BY THE AO AND THE ADDITION IS UN LAWFUL, AGAINST THE SPIRIT OF LAW AND NATURAL JUSTICE AND THE SAME IS R EQUIRED TO BE DELETED. ITA NO.3/JP/2017 S HRI RAMESH NAGPAL VS ITO, WARD- 1(2), AJMER 2 2.1 DURING THE COURSE OF HEARING, NONE APPEARED ON BEHALF OF THE ASSESSEE. HOWEVER, THE WRITTEN SUBMISSION HAS BEEN SENT BY TH E ASSESSEE THROUGH REGISTERED POST WHICH HAS BEEN TAKEN INTO CONSIDERATION WHILE ADJUDICATING UPON THE GROUNDS OF APPEAL OF THE ASSESSEE. 3.1 APROPOS GROUND NO. 1 AND 2 OF THE ASSESSEE, THE FACTS AS EMERGES FROM THE ORDER OF THE LD. CIT(A) IS AS UNDER:- 4.2 I HAVE GONE THROUGH THE GROUNDS OF APPEAL, S TATEMENTS OF FACTS AND ASSESSMENT ORDER CAREFULLY. THE APPELLANT HAS NOT B ROUGHT ANY EVIDENCE TO SHOW THAT THE OBSERVATION MADE BY THE AO IN THE ASSESSME NT ORDER WHILE DISALLOWING SUM OF RS. 62,865/- U/S 14A AND RS. 2,12,136/- IN R ESPECT OF THE INTEREST PAID ON THE FUNDS NOT UTILIZED FOR BUSINESS PURPOSES ARE WR ONG OR INACCURATE IN ANY MANNER. THE ORDER PASSED BY THE AO IS IN ACCORDANCE WITH THE PROVISIONS OF LAW. ACCORDINGLY, BOTH THE DISALLOWANCE MADE BY THE AO A RE CONFIRMED. 3.2 DURING THE COURSE OF HEARING, THE LD. DR RELIED ON THE ORDERS OF THE AUTHORITIES BELOW 3.3 AFTER HEARING THE LD. DR AND PERUSING THE MATER IALS AVAILABLE ON RECORD INCLUDING THE WRITTEN SUBMISSION OF THE ASSESSEE, I T IS NOTED FROM THE ORDER OF THE LD. CIT(A) THAT THE ASSESSEE HAD NOT BROUGHT ANY EV IDENCE BEFORE THE LD. CIT(A) AGAINST THE OBSERVATION OF THE AO AS TO DISALLOWAN CE OF RS. 62,865/- U/S 14A AND RS. 2,12,136/- OF INTEREST PAID ON THE FUNDS NOT UT ILIZED FOR BUSINESS PURPOSES. HOWEVER, THE ASSESSEE HAS FILED THE WRITTEN SUBMISS ION ALONGWITH RELEVANT PAPERS LIKE BALANCE SHEET OF A.Y. 2012-013, 2011,012, LEGE R ACCOUNT OF SHARES OF A.Y. 2012-13 AND LEDGER ACCOUNT OF MUTUAL FUND OF A.Y. 2 012-13 BEFORE THE BENCH ITA NO.3/JP/2017 S HRI RAMESH NAGPAL VS ITO, WARD- 1(2), AJMER 3 REBUTTING THE ADDITIONS SUSTAINED BY THE LD. CIT(A) AMOUNTING TO RS. 62,865/- U/S 14A OF THE ACT AND RS. 2,12,136/-. LOOKING TO THE PRESENT FACTS, CIRCUMSTANCES OF THE CASE AND THE WRITTEN SUBMISSIONS OF THE ASSESSE E, IT WILL BE IN THE INTEREST OF EQUITY AND JUSTICE TO RESTORE THE ISSUES RAISED BY THE ASSESSEE TO THE FILE OF THE LD. CIT(A) TO DECIDE IT AFRESH BY PROVIDING REASONABLE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. THE ASSESSEE IS DIRECTED TO SUBMIT TH E ABOVE PAPERS BEFORE THE LD. CIT(A) AS SUBMITTED BEFORE THE BENCH THROUGH WRITT EN SUBMISSION TO ADJUDICATE UPON THE ISSUES. THUS THE APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. 4.0 IN THE RESULT, THE APPEAL OF THE ASSESSEE IS A LLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 6 /10/2017 . SD/- HKKXPUN ( BHAGCHAND) YS[KK LNL;@ ACCOUNTANT MEMBER TK;IQJ@ JAIPUR FNUKAD@ DATED:- 6 /10/ 2017 *MISHRA VKNS'K DH IZFRFYFI VXZSF'KR@ COPY OF THE ORDER FORWARDED TO: 1. VIHYKFKHZ@ THE APPELLANT- SHRI RAMESH NAGPAL, AJMER 2. IZR;FKHZ@ THE RESPONDENT- THE ITO, WARD- 1(2), AJMER 3. VK;DJ VK;QDRVIHY@ CIT(A). 4. VK;DJ VK;QDR@ CIT, 5. FOHKKXH; IZFRFUF/K] VK;DJ VIHYH; VF/KDJ.K] T;IQJ@ DR, ITAT, JAIPUR 6. XKMZ QKBZY@ GUARD FILE (ITA NO. 3/JP/2017 ) VKNS'KKUQLKJ@ BY ORDER, LGK;D IATHDKJ @ ASSISTANT. REGISTRAR