Satpal Sachdev huf, Jamshedpur V. ITO WARD-3(1), Jamshedpur

ITA 317/RAN/2016

• Counselvise Citation: [2018] 121 COUNSELVISE.COM (IT) 7773 (ITAT-RANCHI)
• Duration Of Justice: 1 year(s) 6 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-05-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2011-2012
• Appeal Filed On: 21-11-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: A K MOHANTY
• Assessee Lawyers: S K PODDARDEVESH PODDAR
• Section: 234B

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, RANCHI BENCH, RANCHI BEFORE SHRI N.S SAINI, ACCOUNTANT MEMBER AND PAVAN KUMAR GADALE, JUDICIAL MEMBER ITA NO . 317 /RAN/201 6 ASSESSMENT YEAR : 2011 - 12 SATPAL SAQCHDEV (HUF)OM TOWER, SB SHOP AREA, BISTUPUR, JAMSHEDPUR VS. ITO,, WARD - 3(1), JAMSHEDPUR PAN/GIR NO. AAKHS 1735 G APPELLANT .. ( RESPONDENT ) ASSESSEE BY: SHRI S.K.PODDAR/DEVESH PODDAR, ADV REVENUE BY : SHRI A.K.MOHANTY, JCIT DATE OF HEARING : 22 /05 / 201 8 DATE OF PRONOUNCEMENT : 23 /05/ 2018 O R D E R PER N.S.SAINI, AM THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF THE CIT(A), JAMSHEDPUR DATED 16.9.2016 FOR THE ASSESSMENT YEAR 2011 - 2012. 2. THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL: 1. FOR THAT THE INITIATION OF PROCEEDINGS U/S.147 WAS UNJUSTIFIED, ILLEGAL AND INCORRECT. THE APPELLANT FILED THE RETURN OF INCOME WHICH WAS PROCESSED U/S.143(2). THE PROCEEDINGS U/S.147 WERE INITIATED ON THE 2 ITA NO317/RAN/2016 ASSESSMENT YEAR: 2011 - 12 GROUND THAT IN THE SAVING BANK ACCOUNT APPELL ANT HAD MADE DEPOSITS OF RS.10 LAKHS AS PER AIR/CIB INFORMATION. NOW SHOW CAUSE NOTICE WAS ISSUED TO THE APPELLANT TO EXPLAIN THE BANK DEPOSITS. MERELY, BECAUSE THERE WERE DEPOSITS IN SB A/C INITIATION OF PROCEEDINGS U/S.147 WAS NOT JUSTIFIED. 2. FOR THA T APPELLANT COULD NOT MAKE COMPLIANCE AS AND WHEN ASKED FOR DUE TO UNFORESEEN TRAGEDIES IN THE FAMILY. 3. FOR THAT THE DEPOSITS MADE IN THE BANK ACCOUNT WAS EXPLAINED AND ALL THE DETAILS WERE FILED BEFORE THE AO AS WELL AS BEFORE THE CIT(A). AO ESTIMATED INCOME FROM INTEREST @ 8% ON THE TOTAL DEPOSITS MADE IN SAVING BANK ACCOUNT. APPELLANT HAS FILED DETAILS OF DEPOSITS WHICH WAS ACCEPTED AND AN ESTIMATE OF INTEREST WAS MADE. THAT BE SO, THE REASONS MENTIONED IN THE ORDER OF ASSESSMENT FOR INITIATION OF P ROCEEDINGS U/S.147 WAS NOT EVEN FOLLOWED FOR THE PURPOSES OF ASSESSMENT. 4. FOR THAT THERE WAS NO BASIS OR REASON FOR MAKING AN ESTIMATE OF INTEREST INCOME ON THE DEPOSITS MADE IN THE BANK ACCOUNT. INTEREST, IF ANY, ACCRUED IN THE SB ACCOUNT WAS DLY DISCL OSED IN THE RETURN OF INCOME FILED. INTEREST, IF ANY, RECEIVED FROM ANY OTHER PERSON WAS ALSO DISCLOSED. THE DETAIL OF THE TOTAL DEPOSITS IN THE BANK ACCOUNT WAS ALSO FACTUALLY INCORRECT. THE ASSESSMENT OF INTEREST INCOME ON AN INCORRECT FIGURE IS ILLEG AL. THE ASSESSMENT OF ESTIMATED INTEREST IS ALSO ILLEGAL AND UNCALLED FOR. THE ADDITION IS FIT TO BE DELETED. 5. FOR THAT THE INTEREST U/S.234A AND 234B SHOULD BE CHARGED ON THE RETURNED INCOME AND NOT ON THE ASSESSED INCOME FOLLOWING THE DECISION OF HON BLE JHARKHAND HIGH COURT. 3. THE ASSESSEE ALSO RAISED AN ADDITIONAL GROUND, WHICH READS AS UNDER: FOR THAT THE NOTICE U/S.143(2) WAS NOT ISSUED AFTER RETURN OF INCOME WAS FILED IN RESPONSE TO NOTICE U/S.148, AS SUCH, ORDER PASSED IS AB INITO VOID AND I LLEGAL FOLLOWING THE DECISION OF HONBLE APEX COURT IN THE CASE OF ACIT VS. HOTEL BLUE MOON, 321 ITR 362. 4 . LD A.R. OF THE ASSESSEE SUBMITTED THAT AS THE ADDITIONAL GROUND GOES TO THE ROOT OF THE MATTER AD IS PURELY A LEGAL ISSUE, SAME SHOULD BE ADMITTED IN VIEW OF THE DECISION OF HONBLE SUPREME COURT IN THE CASE OF CIT VS. 3 ITA NO317/RAN/2016 ASSESSMENT YEAR: 2011 - 12 NTPC, 229 ITR 363 (SC). LD D.R. HAD NO OBJECTION TO THE ADMISSION OF ADDITIONAL GROUND RAISED BY THE ASSESSEE. WE, THEREFORE, ADMIT THE ADDITIONAL GROUND. 5. WE FIND THAT THIS ADDITIONAL GROUND WAS NOT RAISED BEFORE THE CIT(A). BOTH THE PARTIES AGREED BEFORE US THAT THE MATTER MAY BE RES TORED TO THE FILE OF THE CIT(A) FOR ADJUDICATING THE SAME AS PER LAW. HENCE, WE RESTORE THIS ADDITIONAL GROUND TO THE FILE OF THE CIT(A) FOR ADJUDICATING THE ISSUE AFTER ALLOWING REASONABLE AND PROPER OPPORTUNITIES OF HEARING TO THE ASSESSEE. 6 . AS WE HAV E RESTORED THE ADDITIONAL GROUND TO THE FILE OF THE CIT(A), OTHER GROUNDS OF APPEAL ON MERITS OF THE ADDITIONS ARE ALSO RESTORED TO THE FILE OF THE CIT(A) FOR FRESH ADJUDICATION. 7 . IN THE RESULT, APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PUR POSES. ORDER PRONOUNCED IN THE OPEN COURT ON 23 /05 /201 8 SD/ - SD/ - (PAVAN KUMAR GADALE) (N.S SAINI) JUDICIAL MEMBER A CCOUNTANT MEMBER RANCHI; DATED 23 /05 /201 8 B.K.PARIDA, SPS 4 ITA NO317/RAN/2016 ASSESSMENT YEAR: 2011 - 12 COPY OF THE ORDER FORWARDED TO : BY ORDER, SR.PS, ITAT, CAMP AT RANCHI 1. THE APPELLANT : SATPAL SAQCHDEV (HUF)OM TOWER, SB SHOP AREA, BISTUPUR, JAMSHEDPUR 2. THE RESPONDENT: ITO,, WARD - 3(1), JAMSHEDPUR 3. THE CIT(A), JAMSHEDPUR 4. PR. CIT , JAMSHEDPUR 5. DR, ITAT, RANCHI 6. GUARD FILE. //TRUE COPY//