LATE SHRI AJIT S. MEHTA, MUMBAI V. ITO 25(3)(3), MUMBAI

ITA 3269/MUM/2016

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 3038 (ITAT-MUMBAI)
• Duration Of Justice: 1 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-06-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2007-2008
• Appeal Filed On: 09-05-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: N V NADKARNIDR
• Assessee Lawyers: VIJAY KUMAR BIYANI
• Keywords: Principle of natural justice; Revised return
• Section: 80C

Judgement Text

, , , IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES D, MUMBAI , , , BEFORE SHRI JOGINDER SINGH, JUDICIAL MEMBER, AND SHRI ASHWANI TANEJA, ACCOUNTANT MEMBER ITA NO.3269/MUM/2016 ASSESSMENT YEAR: 2007-08 LATE AJIT S. MEHTA THROUGH L/H SMT. SMITA AJIT MEHTA, 402, RAJ VAIBHAV BUILDING NO.1, MAHAVEER NAGAR, DHANKUAR WADI, KANDIWALI(W) MUMBAI-400067 / VS. ITO-25(3)(3), MUMBAI ( ! /ASSESSEE) ( ' / REVENUE) PAN. NO. ADSPA2166J ! / ASSESSEE BY SHRI VIJAY KUMAR BIYANI ' / REVENUE BY SMT. N.V. NADKARNI-DR # '$ % ! & / DATE OF HEARING : 16/06/2016 % ! & / DATE OF ORDER: 16/06/2016 ITA NO. 3269/MUM/2016 LATE AJIT S. MEHTA THROUGH L/H SMT. SMITA AJIT MEHTA 2 / O R D E R PER JOGINDER SINGH (JUDICIAL MEMBER) THE ASSESSEE IS AGGRIEVED BY THE IMPUGNED ORDER DAT ED 18/02/2015 FOR THE ASSESSMENT YEAR 2007-08, OF THE LD. FIRST APPELLATE AUTHORITY, MUMBAI. 2. IN THE PRESENT APPEAL, THE ASSESSEE HAS CHALLE NGED THE ADDITION OF RS.12,93,050/-, CASH DEPOSIT IN THE BANK AND RS.1,64,138/- BEING CASH CREDIT CARD EXPENSES AND N ON- ADJUSTMENT OF BUSINESS LOSS OF RS.5,56,686/- AGAINS T THE TOTAL TAXABLE INCOME OF RS.14,57,188/- AND DEDUCTIO N OF RS.1 LAKH U/S 80C OF THE INCOME TAX ACT, 1961 (HEREINAFT ER THE ACT). 2.1. HOWEVER, DURING HEARING OF THIS APPEAL, LD. C OUNSEL FOR THE ASSESSEE INVITED OUR ATTENTION TO PARA-3 OF THE IMPUGNED ORDER BY CONTENDING THAT PRACTICALLY AN EX -PARTE ORDER HAS BEEN PASSED BY THE LD. FIRST APPELLATE AU THORITY. IT WAS PLEADED THAT ONE MORE OPPORTUNITY MAY BE PROVID ED TO THE ASSESSEE SO THAT THE FACTUAL MATRIX CAN BE EXPL AINED AND NO LOSS IS CAUSED TO THE ASSESSEE. THE LD. DR, CON TENDED THAT SUFFICIENT OPPORTUNITY WAS PROVIDED TO THE ASSESSEE . 2.2. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. BEFORE CO MING TO ANY CONCLUSION, WE ARE REPRODUCING HEREUNDER THE RE LEVANT PORTION (PARA-3) FROM THE CONCLUSION DRAWN IN THE I MPUGNED ORDER FOR READY REFERENCE:- ITA NO. 3269/MUM/2016 LATE AJIT S. MEHTA THROUGH L/H SMT. SMITA AJIT MEHTA 3 2. GROUNDS OF APPEAL: '1. THE ORDER PASSED BY LD. A.O. IS AGAINST EQUITY AND JUSTICE AND BAD-IN-LAW, 2. THE ID. A.O. ERRED IN INCLUDING THE CASH DEPOSIT OF RS.12,93,O5O/- AS INCOME OF THE ASSESSEE. 3. THE LD. A.O. HAS ERRED IN ADDING AMOUNT OF RS.1, 64,138/- BEING CREDIT CARD EXPENSES AND TREATING THE SAME AS INCOM E. 4. THE ID. A.O. ERRED IN NOT REDUCING C/F. LOSS OF RS.5,56,686/- DETERMINED AS PER THE ORIGINAL ASSESSMENT. 5. THE ID. A.O. ERRED IN NOT GIVING DEDUCTION OF RS .1,00,000/- U/S.80C AS CLAIMED IN THE RETURN OF INCOME.' 3. THE RETURN OF INCOME HAS BEEN FILED ON 1ST OCTOB ER, 2007 AT A TOTAL INCOME AT RS. NII AND SUBSEQUENTLY THE ASSESSEE FIL ED A REVISED RETURN OF INCOME ON 22-09-2008. ASSESSMENT U/S.143( 3) WAS COMPLETED ON 11TH DECEMBER, 2009. SUBSEQUENTLY NOTI CE U/S.148 WAS ISSUED ON 27TH MARCH 2012. THE REASONS FOR REOP ENING WERE A DEPOSIT OF CASH OF RS.12,93,O5O/- IN THE BANK ACCOU NT AND CREDIT CARD EXPENSES OF RS.1,64,138/-. DURING THE COURSE O F ASSESSMENT THE ASSESSEE WAS NOT ABLE TO PROVIDE CREDIBLE EXPLANATI ON FOR BOTH THE ISSUES AND THEREFORE THE ADDITION HAS BEEN MADE. TH E ASSESSEE IS IN APPEAL AGAINST BOTH THE ADDITIONS. BUT SUBSEQUENT T O THE FILING OF APPEAL DESPITE FIXING THE CASE ON NUMBER OF OCCASIO NS NO ONE HAS ATTENDED AND NO DOCUMENTS HAVE BEEN FILED TO SUBSTA NTIATE THE GROUNDS OF APPEAL. IN LIGHT OF THIS CIRCUMSTANCES, THE APPEAL FILED BY THE ASSESSEE WITH THIS OFFICE ON 30TH MARCH 2013 IS HEREBY DISMISSED. 5. IN THE RESULT, THE APPEAL IS DISMISSED. 2.3. CONSIDERING THE TOTALITY OF FACTS AND THE CIRCUMSTANCE NARRATED BEFORE US ALONG WITH THE CONC LUSION DRAWN BY THE LD. COMMISSIONER OF INCOME TAX (APPEAL ), WE DIRECT THE ASSESSEE TO REMAIN VIGILANT IN FUTURE AN D TO APPEAR ON THE APPOINTED DATE. KEEPING IN VIEW, THE PRINCIP LE OF NATURAL JUSTICE AND MANDATE OF ARTICLE 265 OF CONST ITUTION OF ITA NO. 3269/MUM/2016 LATE AJIT S. MEHTA THROUGH L/H SMT. SMITA AJIT MEHTA 4 INDIA, THE LD. COMMISSIONER OF INCOME TAX (APPEAL) IS DIRECTED TO PROVIDE ONE MORE OPPORTUNITY TO THE ASS ESSEE AND TO EXAMINE THE CLAIM OF THE ASSESSEE ON MERIT AND D ECIDE AFRESH IN ACCORDANCE WITH LAW. NEEDLESS TO MENTION HERE THAT THE ASSESSEE IS AT LIBERTY TO FURNISH EVIDENCE, IF ANY, IN SUPPORT OF HIS/HER CLAIM. THUS, THE APPEAL OF THE A SSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. FINALLY, THE APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. THIS ORDER WAS PRONOUNCED IN THE OPEN COURT IN THE PRESENCE OF LD. REPRESENTATIVES FROM BOTH SIDES AT THE CONCLUSION OF THE HEARING ON 16/06/2016. SD/- SD/- ( ASHWANI TANEJA ) (JOGINDER SINGH) ' # / ACCOUNTANT MEMBER $ # / JUDICIAL MEMBER MUMBAI; ( DATED : 16/06/2016 F{X~{T? P.S/. .. !%$&'()(*& / COPY OF THE ORDER FORWARDED TO : 1. *+,- / THE APPELLANT 2. ./,- / THE RESPONDENT. 3. 0 0 1! ( *+ ) / THE CIT, MUMBAI. 4. 0 0 1! / CIT(A)- , MUMBAI 5. 3'4.! , 0 *+&* 5 , / DR, ITAT, MUMBAI 6. 6 / GUARD FILE. ! / BY ORDER, /3+!.! //TRUE COPY// / (DY./ASSTT. REGISTRAR) , / ITAT, MUMBAI