MANIBEN PAEL, MUMBAI V. ITO 25(2)(2), MUMBAI

ITA 3159/MUM/2014

• Counselvise Citation: [2016] 121 COUNSELVISE.COM (IT) 3431 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 8 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-01-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 12-11-2015
• Assessment Year: 2009-2010
• Appeal Filed On: 05-05-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: V S JADHAVDR
• Keywords: Opportunity of being heard; Principle of natural justice
• Section: 142(1); 69

Judgement Text

, - , IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES SMC, MUMBAI , ! ' , BEFORE SHRI JOGINDER SINGH, JUDICIAL MEMBER, ITA NO.3159/MUM/2014 ASSESSMENT YEAR: 2009-10 SMT. MANIBEN PATEL, 301, 3 RD FLOOR, RAJ LAXMI APARTMENT, VASANT RAO ROAD, BORIVALI (WEST), MUMBAI-400092 / VS. INCOME TAX OFFICER-25(2)(2) C-11, PRATYAKSHKAR BHAVAN 1 ST FLOOR, BANDRA KURLA COMPLEX, BANDRA (EAST), MUMBAI-400051 / ASSESSEE / REVENUE P.A. NO. AGAPP1666P $ % & / ASSESSEE BY SHRI ADITYA MAHESHWARI $ % & / REVENUE BY SHRI V.S. JADHAV-DR / DATE OF HEARING 19/01/2016 & / DATE OF ORDER: 19/01/2016 & / O R D E R THE ASSESSEE IS AGGRIEVED BY THE IMPUGNED ORDER DA TED 21/02/2014 OF THE LD. FIRST APPELLATE AUTHORITY, MU MBAI. THE ONLY GROUND RAISED IN THIS APPEAL PERTAINS TO C ONFIRMING ITA NO.3159/MUM/2014 MANIBEN PATEL 2 THE DISALLOWANCE IN RESPECT OF INTEREST OF RS.6,27, 112/-, PAYABLE U/S 69 OF THE INCOME TAX ACT, 1961 (HEREIN AFTER THE ACT). 2. DURING HEARING OF THIS APPEAL, SHRI ADITYA MAHESHWARI, LD. COUNSEL FOR THE ASSESSEE, CONTENDE D THAT THE IMPUGNED AMOUNT WAS NOT PAID DURING THE YEAR AN D IN THE CURRENT YEAR, THE INTEREST PAYMENT IS ONLY TO T HE TUNE OF RS. 2,29,998/-. IT WAS EXPLAINED THAT DUE TO CERTA IN UNAVOIDABLE CIRCUMSTANCES CONFIRMATION FROM THE SAI D PARTIES COULD NOT BE FURNISHED. THE ASSESSEE FURNIS HED CONFIRMATION BEFORE THIS TRIBUNAL FOR THE FIRST TIM E. ON THE OTHER HAND, THE LD. DR, SHRI V.S. JADHAV, DEFENDED THE ADDITION AND SUBMITTED THAT THE CONFIRMATION FILED BEFORE THIS TRIBUNAL NEEDS EXAMINATION BY THE ASSESSING OFFICER SO THAT THE INTEREST OF THE REVENUE MAY BE PROTECTED. 2.1. I HAVE CONSIDERED THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. THE FACTS , IN BRIEF, ARE THAT THE ASSESSEE DECLARED INCOME OF RS.2,97,94 1/- IN HER RETURN FILED ON 01/02/2010, WHICH WAS PROCESSED U/S 143(1) OF THE ACT. SINCE, THE CASE OF THE ASSESSEE, WAS SE LECTED FOR SCRUTINY, THEREFORE, NOTICE U/S 143(2) OF THE ACT W AS SERVED UPON THE ASSESSEE ALONG WITH NOTICE U/S 142(1) OF T HE ACT. A SHOW-CAUSE NOTICE WAS ALSO ISSUED TO THE ASSESSEE. IN RESPONSE, THE ASSESSEE ATTENDED THE PROCEEDINGS AND FILED THE DETAILS AS CALLED FOR FROM TIME TO TIME AS IS EVIDE NT FROM ASSESSMENT ORDER ITSELF. IN HER COMPUTATION OF INCO ME, THE ITA NO.3159/MUM/2014 MANIBEN PATEL 3 ASSESSEE SHOWED INTEREST INCOME OF RS.2,97,941/-. HOWEVER, ON PERUSAL OF DETAILS, THE LD. ASSESSING OFFICER NO TICED THAT THE ASSESSEE RECEIVED INTEREST OF RS.5,27,939/- AND THUS AFTER CLAIMING NETTING OFF OF INTEREST PAYMENT OF RS.2,29 ,998/-, THE ASSESSEE SHOWED INTEREST INCOME OF RS.2,97,941/-. T HE ASSESSEE WAS ASKED TO FURNISH THE CONFIRMATION FROM THE CONCERNED PARTIES. HOWEVER, THE ASSESSEE COULD NOT FURNISH THE SAME. ON APPEAL, BEFORE THE LD. COMMISSIONER OF INCOME TAX (APPEALS), THE ADDITION WAS CONFIRMED. HOWEVER, FOR THE FIRST TIME, BEFORE THIS TRIBUNAL, THE ASSESSEE HAS FILED CONFIRMATION FROM PURNIMA JANI (PAN NO.ADAPJ4898G), SONA L. PAGI (PAN NO.ASLPP6866E), PRITI TRIVEDI (PA N NO.AGHPT1673M), NILESH PATEL (PAN NO.ASKPP8292K), S WATI BHATT (PAN NO. ALGPB0534K) AND DIGANT TRIVEDI (PAN NO.AFMPT6205M). IN VIEW OF THE MATTER AND BY KEEPIN G THE PRINCIPLE OF NATURAL JUSTICE ALONG WITH ARTICLE 265 OF THE CONSTITUTION OF INDIA, I AM OF THE VIEW THAT THE GE NUINENESS OF THE CONFIRMATION AND OTHER ATTENDANT CIRCUMSTANCES/FACTUAL MATRIX NEEDS EXAMINATION AT T HE HANDS OF THE LD. ASSESSING OFFICER. EVEN OTHERWISE, NO PERSON SHOULD BE CONDEMNED UNHEARD. THEREFORE, THE APPEAL OF THE ASSESSEE IS REMANDED BACK TO THE FILE OF THE LD. AS SESSING OFFICER TO EXAMINE THE CLAIM OF THE ASSESSEE AND AF TER PROVIDING DUE OPPORTUNITY OF BEING HEARD BE DECIDED IN ACCORDANCE WITH LAW. THUS, THE APPEAL OF THE ASSESS EE IS ALLOWED FOR STATISTICAL PURPOSES ONLY. ITA NO.3159/MUM/2014 MANIBEN PATEL 4 FINALLY, APPEAL OF THE ASSESSEE IS ALLOWED FOR STAT ISTICAL PURPOSES ONLY. THIS ORDER WAS PRONOUNCED IN THE OPEN COURT IN TH E PRESENCE OF LD. REPRESENTATIVE OF BOTH SIDES AT THE CONCLUSION OF THE HEARING ON 19/01/2016. SD/- (JOGI NDER SINGH) ! ' / JUDICIAL MEMBER MUMBAI; DATED : 19/01/2016 F{X~{T? P.S / ! & $ )!*+ ,&+-* / COPY OF THE ORDER FORWARDED TO : 1. '#$%& / THE APPELLANT 2. '(%& / THE RESPONDENT. 3. ) ) * ( '#$ ) / THE CIT, MUMBAI. 4. ) ) * / CIT(A)- , MUMBAI 5. -./ ' , ) '#$ ' 1 , / DR, ITAT, MUMBAI 6. /2 3$ / GUARD FILE. & / BY ORDER, (-# ' //TRUE COPY// / (DY./ASSTT. REGISTRAR) , / ITAT, MUMBAI