Smt. Sangeeta Ramhari Ganage, Pune V. Income-tax Officer (HQ) - IV,

ITA 32/PUN/2015

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 9402 (ITAT-PUNE)
• Duration Of Justice: 3 year(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-01-2018
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 18-01-2018
• Assessment Year: 2008-2009
• Appeal Filed On: 08-01-2015
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: MUKESH JHA
• Keywords: Unexplained investment; Salary income; Principle of natural justice
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH B , PUNE , , BEFORE MS. SUSHMA CHOWLA, JM AND SHRI ANIL CHATURVEDI, AM . / ITA NO. 32 /P U N/201 5 / ASSESSMENT YEAR : 20 08 - 09 SMT. SANGEETA RAMHARI GANAGE, SAIKRUPA, 78, NATIONAL HOUSING SOCIETY, BANER ROAD, AUNDH, PUNE - 411007 . / APPELLANT PAN: AA XPG6757H VS. THE INCOME TAX OFFICER (HQ) IV, PUNE. . / RESPONDENT ASSESSEE BY : SHRI KISHOR PHADKE REVENUE BY : SHRI MUKESH JHA / DATE OF HEARING : 1 8 . 0 1 . 201 8 / DATE OF PRONOUNCEMENT: 23 . 0 1 .201 8 / ORDER PER SUSHMA CHOWLA , J M : TH E APPEAL FILED BY THE ASSESSEE IS AGAINST THE ORDER OF CIT (A) - III , PUNE , DATED 0 1 . 1 0 .201 4 RELATING TO ASSESSMENT YEAR 20 08 - 09 AGAINST ORDER PASSED UNDER SECTION 143(3) OF THE INCOME - TAX ACT , 1961 (IN SHORT THE ACT) . 2 . THE ASSESSEE HAS RAISED THE FOLLOWING GROUND OF APPEAL : - 1 . THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS) - III CONFIRMING THE ADDITION OF RS.20,00,000/ - ON ACCOUNT OF UNEXPLAINED INVESTMENT IN WRONG IN FACT AND LAW. ITA NO. 32 /P U N/20 1 5 SMT. SANGEETA RAMHARI GANAGE 2 3. THE LEARNED AUTHORIZED REPRESENTATIVE FOR THE ASSESSE E AT THE OUTSET POINTED OUT THAT THERE WAS NO APPEARANCE BEFORE THE CIT(A) SINCE THE COUNSEL GROUP WHICH WAS HANDLING THE MATTER HAD SOME KIND OF MISUNDERSTANDING AND THERE WAS SPLIT IN THE GROUP. HE FURTHER POINTED OUT THAT THE ASSESSEE HAD EXPLANATION I N RESPECT OF INVESTMENTS MADE WHICH WERE NOT PROPERLY LOOKED INTO BY THE ASSESSING OFFICER AND NO RELIEF HAS BEEN GRANTED BY THE CIT(A) AS THERE WAS NO REPRESENTATION BEFORE HIM. 4. THE LEARNED DEPARTMENTAL REPRESENTATIVE FOR THE REVENUE PLACED RELIANCE O N THE ORDERS OF AUTHORITIES BELOW. 5. WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE RECORD. THE PERUSAL OF APPELLATE ORDER REFLECTS THAT THOUGH SEVERAL OPPORTUNITIES FOR HEARING WERE GIVEN TO THE ASSESSEE, BUT THERE WAS NO PROPER REPRESENTATION. H OWEVER, PRINCIPLES OF NATURAL JUSTICE DEMANDS THAT NO PERSON SHOULD BE CONDEMNED UNHEARD. WE FIND THAT THE ASSESSEE HAD DERIVED SALARY INCOME FROM DIFFERENT CONCERNS AND HAD SHOWN INCOME FROM CAPITAL GAINS. WHILE SCRUTINIZING THE DETAILS, THE ASSESSEE WA S FOUND TO HAVE INVESTE D IN VARIOUS MUTUAL COMPANIES AT RS.4.35 CRORES. THE ASSESSEE FURNISHED DETAILS OF INVESTMENT BEFORE THE ASSESSING OFFICER, WHO ACCEPTED THE INVESTMENTS TO THE TUNE OF RS.4.15 CRORES. HOWEVER, THE BALANCE INVESTMENT OF RS.20 LAKHS FOR WHICH THE SOURCES COULD NOT BE EXPLAINED BY THE ASSESSEE, WAS NOT ACCEPTED. HENCE, ADDITION OF RS.20 LAKHS WHICH WAS UPHELD BY THE CIT(A) IN THE ABSENCE OF ANY REPRESENTATION ON BEHALF OF ASSESSEE. 6. THE ASSESSEE BEFORE US HAS EXPLAINED THE REASONS FOR NON APPEARANCE BEFORE THE CIT(A) AND WE FIND MERIT IN THE PLEA OF ASSESSEE. ACCORDINGLY, WE ARE OF THE VIEW THAT IN ORDER TO DECIDE THE MERITS OF ADDITION, ANOTHER REASONABLE ITA NO. 32 /P U N/20 1 5 SMT. SANGEETA RAMHARI GANAGE 3 OPPORTUNITY OF HEARING SHOULD BE GRANTED TO THE ASSESSEE. ACCORDINGLY, WE R EMIT THIS ISSUE BACK TO THE FILE OF CIT(A), WHO SHALL LOOK INTO THE EXPLANATION AVAILABLE WITH THE ASSESSEE VIS - - VIS INVESTMENTS MADE IN MUTUAL FUNDS. THE ASSESSEE IS ALSO DIRECTED TO APPEAR BEFORE THE CIT(A) AND FILE THE REQUISITE INFORMATION. ACCORDIN GLY, WE REMIT THIS ISSUE BACK TO THE FILE OF CIT(A). THE GROUND OF APPEAL RAISED BY THE ASSESSEE IS THUS, ALLOWED FOR STATISTICAL PURPOSES. 7 . IN THE RESULT, APPEAL OF ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED ON THIS 23 RD DAY OF JANUA RY , 201 8 . SD/ - SD/ - (ANIL CHATURVEDI ) (SUSHMA CHOWLA ) / ACCOUNTANT MEMBER / JUDICIAL MEMBER / PUNE ; DATED : 23 RD JANUARY , 201 8 . GCVSR / COPY OF THE ORDER IS FORWARDED TO : 1. / THE APP ELLANT ; 2. / THE RESPONDENT; 3. ( ) / THE CIT (A) - III , PUNE ; 4. / THE CIT - IV , PUNE ; 5. , , / DR B , ITAT, PUNE; 6. / GUARD FILE . / BY ORDER , // TRUE COPY // / SR. PRIVATE SECRETARY , / ITAT, PUNE