ITO WD 2(1), Jamshedpur V. SMT Poonam Agarwal, Jamshedpur

ITA 302/RAN/2016

• Counselvise Citation: [2018] 121 COUNSELVISE.COM (IT) 7780 (ITAT-RANCHI)
• Duration Of Justice: 1 year(s) 6 month(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-05-2018
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2012-2013
• Appeal Filed On: 07-11-2016
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: P K MONDAL
• Assessee Lawyers: NITIN PASARI
• Section: 142(1)

Judgement Text

1 ITA NO. 302 /RAN/ 201 6 IN THE INCOME TAX APPELLATE TRIBUNAL, RANCHI BENCH, RANCHI BEFORE SHRI N.S.SAINI , ACCOUNTANT MEMBER & SHRI PAVAN KUMAR GADALE , JUDICIAL MEMBER ITA NO. 302 /RAN/201 6 A .Y. : 20 1 2 - 201 3 ITO, WARD - 2(1), JAMSHEDPUR V S SMT. POONAM AGARWAL, H.NO.65 LINE NO.2, H INDU BASTI, GOLMURI, JAMSHEDPUR P AN NO. : A D XPA 6581 G (APPELLANT ) . RESPONDENT REVENUE BY :SHRI P.K.MONDAL, JCIT ASSESSEE BY : SHRI NITIN PASARI, ADVOCATE DATE OF HEARING : 2 2 . 05 .201 8 DATE OF PRONOUNCEMEN T : 23.0 5 .201 8 O R D E R PER PAVAN KUMAR GADALE, JM : TH IS IS AN APPEAL FILED BY THE REVENUE AGAINST THE ORDER OF CIT(A), JAMSHEDPUR , DATED 16.08.2016 , FOR THE ASSESSMENT YEAR 2012 - 13 , WHEREIN THE REVENUE HAS RAISED THE FOLLOWING GROUNDS OF AP PEAL : - 1. ON FACTS AND CIRCUMSTANCES OF LD. CIT(A) ERRED IN DELETING THE ADDITION OF RS.36,25,134/ - ON ACCOUNT OF UNEXPLAINED CASH/DEPOSIT FROM UNDISCLOSED SOURCE. 2. ON FACTS AND CIRCUMSTANCES OF LD. CIT(A) ERRED IN DELETING THE ADDITION OF RS.70,000/ - ON ACCOUNT OF INADMISSIBLE DEDUCTION OF I.T.ACT, 1961 2. BRI EF FACTS OF THE CASE ARE THAT THE ASSESSEE IS ENGAGED IN THE BUSINESS OF SALE OF TOOLS AND INDUSTRIAL CONSUMABLES AND FILED THE RETURN OF 2 ITA NO. 302 /RAN/ 201 6 INCOME FOR THE ASSESSMENT YEAR 2012 - 13 ELECTRONICALLY ON 31.03.2013 WITH A TOTAL INCOME OF RS. 3,23,460/ - , RETURN OF INCOME WAS DULY PROCESSED U/S.143(1) OF THE ACT AND THE CASE WAS SELECTED FOR SCRUTINY UNDER CASS . SUBSEQUENTLY, NOTICE U/S.143( 2 ) & 142(1) OF THE ACT ALONG WITH QUESTIONNAIRE WERE ISSUED TO THE ASSESSEE. IN COMPLIANCE THE AR OF THE ASSESSEE APPEARED FROM TIME TO TIME AND FILED THE RELEVANT DOCUMENTS. THE AO ON PERUSAL OF THE PROFIT AND LOSS ACCOUNT AND BALANCE SHEET AND OTHER RELEVANT DOCUMENTS, COMPLETED THE ASSESSMENT AND MADE THE ADDITION OF RS. 36,25,134/ - ON ACCOUNT OF UNEXPLAINED CASH/DEPOSIT FROM UNDISCLOSED SOURCE AND RS.70,000/ - ON ACCOUNT OF INADMISSIBLE DEDUCTION ALONG WITH OTHER ADDITIONS, A SSESSED TOTAL INCOME AT RS. 41,08,350/ - AND PASSED ORDER U/S.143(3) OF THE ACT, DATED 16.08.2016 . 3 . AGGRIEVED BY THE ASSESSMENT ORDER, THE ASSESSEE HAS FILED AN APPEAL WITH THE CIT(A). IN THE APPELLATE PROCEEDINGS LD. AR OF THE ASSESSEE ARGUED THE GROUNDS AND REITERATED THE SUBMISSIONS AND LD.CIT(A) HAVING CONSIDERED THE FINDINGS AND THE SUBMISSIONS OF THE ASSESSEE DEALT ON THE DISPUTED ISSUES PARTLY ALLOWED THE APPEAL OF THE REVENUE ASSESSEE. 4 . AGGRIEVED BY THE ORDER OF CIT(A), THE REVENUE HAS FILED AN APPEAL BEFORE THE TRIBUNAL. 5 . BEFORE US, LD. DR SUBMITTED THAT THE CIT(A) HAS RELIED ON THE SU BMISSIONS OF ASSESSEE AND ACCEPTED THE DOCUMENTS WHEREAS THE AO WAS DEPRIVED TO VERIFY THE SAME AND ALSO NO EXPLANATION WAS CALLED FOR FROM THE AO, THEREFORE, PRAYED THAT THE ORDER OF CIT(A) BE SET ASIDE AND 3 ITA NO. 302 /RAN/ 201 6 THE ORDER OF AO BE RESTORED. IN RESPECT OF SECO ND GROUND OF APPEAL THE LD. DR SUBMITTED THAT THE CIT(A) HAS ERRED IN DELETING THE ADDITION OF RS.70000/ - ON ACCOUNT OF INADMISSIBLE DEDUCTION. 6 . CONTRA, LD. D R SUPPORTED THE ORDER OF CIT(A) . 7 . WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE MATERIA L ON RECORD. PRIMA FACIE, ON THE FIRST DISPUTED ISSUE OF DELETING THE ADDITION BY CIT(A) OF RS.36,25,134/ - ON ACCOUNT OF UNEXPLAINED CASH/DEPOSIT FROM UNDISCLOSED SOURCE, THE CONTENTION OF LD. DR THAT THE CIT(A) HAS CALLED FOR INFORMATION IN RESPECT OF CAS H DEPOSITS AND ALSO THE ASSESSEE HAS FILED THE DOCUMENTS IN SUPPORT OF THAT AND FURTHER THE AO IN THE COURSE OF ASSESSMENT PROCEEDINGS, HAS ISSUED NOTICE U/S.133(6) OF THE ACT IN RESPECT OF MONEY WHICH HAS BEEN CLAIMED BY THE ASSESSEE DEPOSITED IN THE BANK ACCOUNT BUT THERE WAS NO RESPONSE. THE CIT(A) HAS DEALT ON THE ISSUE AND CALLED FOR VARIOUS DETAILS. THE ASSESSEE HAS FILED CASH - FLOW STATEMENT REFERRED AT PAGE 10 OF THE CIT(A)S ORDER AND ALSO WE FIND THAT THE AO IN THE COURSE OF ASSESSMENT PROCEEDINGS I SSUED NOTICE AND ALSO NO - COMPLIANCE OF NOTICE IN RESPECT OF INFORMATION CALLED FOR AND THE ASSESSEE COULD NOT OFFER ANY EXPLANAT ION IN RESPECT OF CASH DEPOSIT S IN BANK ACCOUNT AND NO BANK BOOK HAS BEEN PRODUCED BEFORE THE ASSESSING AUTHORITIES. THEREFORE, W E ARE OF THE SUBSTANTIVE VIEW THAT THE MATTER NEEDS VERIFICATION AND EXAMINATION OF CASH - FLOW STATEMENT BY THE AO, WHICH THE CIT(A) HAS RELIED ON. FURTHER THE CIT(A) HAS NOT CALLED FOR REMAND REPORT IN THIS ASPECT. THEREFORE, IN THE INTEREST OF SUBSTANTIAL JUSTICE WE REMIT THIS 4 ITA NO. 302 /RAN/ 201 6 DISPUTED ISSUE TO THE FILE OF AO, WHO SHALL VERIFY AND CONSIDER THE CASH - FLOW STATEMENT AND OTHER DOCUMENTS FILED BY THE ASSESSEE AND PASS ORDER ON MERITS. THE ASSESSEE SHALL BE PROVIDED ADEQUATE OPPORTUNITY OF HEARING BEFORE PASSING THE ORDER. 8 . WITH RESPECT TO THE SECOND GROUND, THE ASSESSEE DURING THE COURSE OF HEARING PROCEEDING BEFORE THE CIT(A) HAS FILED THE DOCUMENTS. HOWEVER, LD. DR HAS VEHEMENTLY ARGUED THAT THE AO WAS DEPRIVED TO VERIFY AND EXAMINE THE SAME, THEREFORE, THI S ISSUE ALSO NEEDS VERIFICATION AT THE END OF AO AFTER PROVIDING ADEQUATE OPPORTUNITY OF HEARING TO THE ASSESSEE. 9 . IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES . ORDER PRONOUNCED IN THE OPEN COURT ON 23 / 05 /201 8 SD/ - SD/ - ( N.S.SAINI ) ( PAVAN KUMAR GADALE ) ACCOUNTANT MEMBER JUDICIAL MEMBER RANCHI , DATED 23 / 05 /201 8 PRAKASH KUMAR MISHRA , SR. PS COPY OF THE ORDER FORWARDED TO : BY ORDER, //TRUE COPY// SR.PS, ITAT, RANCHI 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT(A) CONCERNED 4. CIT , CONCERNED 5. DR, ITAT, RANCHI 6 . GUARD FILE.