HARSHAD P. MEHTA, MUMBAI V. A.C. CEN CIR 14, MUMBAI

ITA 3067/MUM/2009

• Counselvise Citation: [2010] 136 COUNSELVISE.COM (IT) 1364 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 1 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-06-2010
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: H
• Next Hearing Date: 24-06-2010
• Assessment Year: 1994-1995
• Appeal Filed On: 11-05-2009
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S K PAHWA
• Keywords: Opportunity of being heard

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES, H, MUMBAI BEFORE SHRI R V EASWAR, PRESIDENT AND SHRI T R SOOD, ACCOUNTANT MEMBER I T A NO: 3063/MUM/2009 ASSESSMENT YEAR: 1992-93 I T A NO: 3064/MUM/2009 ASSESSMENT YEAR: 1993-94 I T A NO: 3065/MUM/2009 ASSESSMENT YEAR: 1994-95 I T A NO: 3066/MUM/2009 ASSESSMENT YEAR: 1995-96 SHRI HARSHAD P MEHTA, MUMBAI APPELLANT (PAN: AJXPM4145Q VS ASSISTANT COMMISSIONER OF INCOME TAX RESPONDENT CENTRAL CIRCLE 14, MUMBAI I T A NO: 3067/MUM/2009 ASSESSMENT YEAR: 1994-95 I T A NO: 3068/MUM/2009 ASSESSMENT YEAR: 1995-96 SMT RAKSHA H MEHTA, MUMBAI APPELLANT (PAN: AHVPM8236C) VS ASSISTANT COMMISSIONER OF INCOME TAX RESPONDENT CENTRAL CIRCLE 14, MUMBAI ASSESSEES BY: SHRI PRAMOD K PARIDA / SHRI ANIL MISH RA REVENUE BY: SHRI S K PAHWA O R D E R PER BENCH: THESE ARE SIX APPEALS RELATING TO ONE HARSHAD P ME HTA AND TWO APPEALS RELATING TO HIS WIFE, RAKSHA H MEHTA. THE ASSESSMENTS MADE ON THE WIFE OF SHRI HARSHAD P MEHTA FOR THE ASSESSM ENT YEARS 1994-95 AND 1995-96 ARE STATED TO BE ON PROTECTIVE BASIS, T HE SUBSTANTIVE ASSESSMENTS BEING MADE ON SHRI HARSHAD P MEHTA. ITA NO: 3063 TO 3068/MUM/2009 2 2. ALL THE SIX APPEALS HAVE BEEN DISMISSED BY THE C IT(A) ON THE GROUND THAT THE ASSESSEES HAVE NOT COMPLIED WITH TH E PROVISIONS OF SECTION 249(4)(A) OF THE INCOME TAX ACT. THIS SECT ION PROVIDES THAT NO APPEAL SHALL BE ADMITTED BY THE CIT(A) UNLESS AT TH E TIME OF FILING OF THE APPEAL THE ASSESSEE HAS PAID THE TAX DUE ON THE INC OME RETURNED BY HIM, WHERE RETURN HAS BEEN FILED BY HIM. THE ORDER OF THE CIT(A) SHOWS THAT FOR ALL THE YEARS UNDER APPEAL IN THE CA SE OF SHRI HARSHAD P MEHTA, THE TOTAL TAX DUE AS PER THE RETURNS FILED B Y THE ASSESSEE WAS RS.1,06,87,265/- AND THAT THE ASSESSEE CAN BE SAID TO HAVE MADE PAYMENT OF RS.89,94,006/- AS ADMITTED TAX. THESE C ALCULATIONS ARE GIVEN AT PAGE 4 OF THE IMPUGNED ORDER. THERE IS ST ILL A SHORTFALL OF RS.16,93,259/-. THE CIT(A) HAS THEREFORE HELD THAT THE APPEALS CANNOT BE ADMITTED. 3. THE LEARNED COUNSEL FOR THE ASSESSEE HAS NOW BRO UGHT TO OUR NOTICE THE FACT THAT EVEN IN THE YEAR 2000, THE INC OME TAX AUTHORITIES HAVE REALISED RS.49,50,000/- BY SELLING THE ASSESSE ES PROPERTY AT FLAT NO.14, INDRAPRASTHA BUILDING, GHATKOPAR (EAST), MUM BAI, FOR BEING ADJUSTED AGAINST THE TAX DUES AND THAT THIS AMOUNT HAS NOT BEEN TAKEN INTO CONSIDERATION BY THE CIT(A). IF THIS IS TAKEN INTO CONSIDERATION, THEN THERE IS NO SHORTFALL AND THE APPEALS WOULD ST AND ADMITTED BEFORE THE CIT(A). THIS IS A MATTER FOR VERIFICATION. WE THEREFORE SET ASIDE THE ORDER OF THE CIT(A) FOR ALL THE YEARS PASSED IN THE CASE OF SHRI HARSHAD P MEHTA AND RESTORE THE APPEALS TO HIS FILE TO ENAB LE HIM TO EXAMINE THE CORRECTNESS OF THE ASSESSEES CONTENTION PUT FO RTH BEFORE US AND TO TAKE A FRESH DECISION REGARDING THE APPLICABILITY O F SECTION 249(4)(A) IN ITA NO: 3063 TO 3068/MUM/2009 3 ACCORDANCE WITH LAW. THE ASSESSEE SHALL BE GIVEN A DEQUATE OPPORTUNITY OF BEING HEARD. 4. IN THE CASE OF SMT RAKSHA H MEHTA ALSO THE CIT(A ) HAS DECLINED TO ADMIT THE APPEALS INVOKING SECTION 249( 4)(A) OF THE ACT. HERE ALSO THE LEARNED COUNSEL FOR THE ASSESSEE PLEA DED THAT IT NEEDS TO BE VERIFIED WHETHER ANY PART OF THE AMOUNT OF RS .49,50,000/- REALISED ON SALE OF THE ASSESSEES FLAT WAS ADJUSTE D AGAINST THE DUES OF THE ASSESSEES WIFE AS PER RETURNS FILED BY HER. S INCE THIS ALSO NEEDS FACTUAL VERIFICATION, WE SET ASIDE THE ORDERS OF TH E CIT(A) IN THE CASE OF THE ASSESSEES WIFE ALSO WITH THE SAME DIRECTIONS W HICH HAVE BEEN GIVEN IN THE CASE OF HER HUSBAND HARSHAD P MEHTA. 5. IN THE RESULT, THE APPEALS ARE ALLOWED FOR STATI STICAL PURPOSES WITH NO ORDER AS TO COSTS. ORDER PRONOUNCED IN THE OPEN COURT ON 30 TH JUNE 2010. SD/- SD/- (T R SOOD) (R V EASWAR) ACCOUNTANT MEMBER PRESIDENT MUMBAI, DATED 30 TH JUNE 2010 SALDANHA COPY TO: 1. SHRI HARSHAD P MEHTA SMT RAKSHA H MEHTA C/O SMT PRAMODA S MEHTA, B/302, PARAS NAGAR BLDG. NO.5, SHANKAR LANE, KANDIVLI (WEST), MUMBAI 400 067 2. ACIT, CENTRAL CIRCLE 14 3. CIT-22 4.CIT(A)-XXII 5.DR H BENCH TRUE COPY BY ORDER ASSTT. REGISTRAR, ITAT, MUMBAI