G.K. REDDY, CHENNAI V. DCIT, CC-2(1), CHENNAI

ITA 3355/CHNY/2019

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 3310 (ITAT-CHENNAI)
• Duration Of Justice: 2 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-03-2020
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: D
• Assessment Year: 2013-2014
• Appeal Filed On: 11-12-2019
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: R ANITHA JCIT
• Assessee Lawyers: S LAKSHMINARASIMHAN
• Keywords: Reasonable cause; Condonation of delay
• Section: 148

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH: CHENNAI , !' #'$ % ! , & ' BEFORE SHRI GEORGE MATHAN, JUDICIAL MEMBER AND SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER ' ./ ITA NOS.3352 & 3355/CHNY/2019 !( /ASSESSMENT YEARS: 2007-08 & 2013-14 SHRI G.K. REDDY, T-27, 12 TH STREET, ANNA NAGAR, CHENNAI 600 040. [PAN: AAQPK 5707L] VS. THE DY. COMMISSIONER OF INCOME TAX, CORPORATE CIRCLE-2(1), CHENNAI. ( ) /APPELLANT) ( *+) /RESPONDENT) ) , - / APPELLANT BY : SHRI S.LAKSHMINARASIMHAN, C.A *+) , - /RESPONDENT BY : MS. R. ANITHA, JCIT . ! , /& /DATE OF HEARING : 03.03.2020 01( , /& /DATE OF PRONOUNCEMENT : 04.03.2020 2 / O R D E R PER INTURI RAMA RAO, ACCOUNTANT MEMBER : BOTH THE APPEALS FILED BY THE ASSESSEE DIRECTED AGA INST THE ORDER OF THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) -6, CHENNAI (HEREINAFTER CALLED AS CIT(A)) DATED 31.10.2019 F OR THE ASSESSMENT YEARS 2007-08 & 2013-14. ITA NOS.3352 & 3355/CHNY/2019 :- 2 -: ITA NO.3352/CHNY/2019 FOR A.Y 2007-08 : 2. THE BRIEF FACTS OF THE CASE ARE AS UNDER: THE APPELLANT IS AN INDIVIDUAL. THE APPELLANT HAS FILED THE RETURN OF INCOME ON 31.07.2007 FOR THE A.Y 2007-08 DISCLOSIN G TOTAL INCOME OF RS. 10,32,080/-. THERE WAS NO SCRUTINY PROCEEDINGS AGAI NST THIS RETURN OF INCOME. SUBSEQUENTLY, BASED ON INFORMATION RECEIVE D FROM DDI (INV.), UNIT-III(2), CHENNAI THAT THE APPELLANT HAD PURCHAS ED LAND ADMEASURING 7 ACRES AND 11 ACRES LOCATED AT HAFEEZPET VILLAGE, SE RILLINGAMPALLY MANDAL, R.R. DISTRICT, HYDERABAD FOR A CONSIDERATIO N OF RS. 96,25,000/- VIDE SALE DEED NO. 24498/06 AND IN SURVEY NO.56 FOR A VALUE OF RS. 1,77,50,000/- REGISTERED VIDE SALE DEED NO.24497/06 RESPECTIVELY ON 02.12.2006. THE TOTAL VALUE PAID FOR THE ABOVE PROP ERTIES IS RS. 2,99,76,100/- INCLUDING REGISTRATION CHARGES OF RS. 26,01,100/-. FROM THE REPORT IT WAS FURTHER ASCERTAINED THAT MAJOR PORTIO N FOR THE PURCHASE OF PROPERTY OF THE AMOUNT WAS PAID BY WAY OF CASH AND A DEPOSIT OF RS. 29,99,000/- AND RS. 19,00,000/- WAS MADE IN ASSESSE ES ACCOUNT BY WAY OF CASH AND VARIOUS CASH PAYMENTS HAVE BEEN MADE BY THE ASSESSEE TO VARIOUS PERSONS ON VARIOUS DATES FOR WHICH THE ASSE SSEE HAD NOT FURNISHED ANY PROOF FOR THE SOURCE. THESE TRANSACTI ONS WERE NOT REVEALED TO THE DEPARTMENT BY THE ASSESSEE IN HIS RETURN OF INCOME FILED FOR THE A.Y 2007-08 ON 31.07.2007. ITA NOS.3352 & 3355/CHNY/2019 :- 3 -: 3. ACCORDINGLY, A NOTICE U/S. 148 OF THE ACT WAS IS SUED ON 10.02.2015. IN RESPONSE TO THE SAID NOTICE, THE ASSESSEE VIDE L ETTER DATED 11.03.2015 STATED THAT THE ORIGINAL RETURN OF INCOME FILED BE TREATED AS RETURN IN RESPONSE TO NOTICE OF S. 148 OF THE ACT. SUBSEQUEN TLY, THE ASSESSMENT WAS COMPLETED BY DCIT, CORPORATE CIRCLR-2(1), CHENN AI (HEREINAFTER CALLED AO) BY MAKING ADDITION OF RS. 35,50,000/- ON ACCOUNT OF INABILITY THE ASSESSEE TO EXPLAIN THE SOURCE FOR THE FOLLOWIN G PAYMENTS: DATE AMOUNT PYMT BY BANK 09/09/2006 10,00,000 CH.NO.494753 GKE, FB, HYD 18/09/2006 10,00,000 CASH 18/09/2006 5,00,000 CH. NO.494756 GKE, FB, HYD 07/12/2006 10,00,000 CH. NO.494767 GKE, FB, HYD 30/04/2008 50,000 DD GKE, FB, HYD 4. THE AO ALSO MADE ADDITION ON ACCOUNT OF UNEXPLAI NED CASH DEPOSITS OF RS. 23,99,000/- 5. BEING AGGRIEVED BY THE ABOVE ASSESSMENT, AN APPE AL WAS PREFERRED BEFORE LD. CIT(A), WHO VIDE IMPUGNED ORDE R DISMISSED THE APPEAL WITHOUT CONDONING THE DELAY OF 05 DAYS IN FI LING THE APPEAL. BEING AGGRIEVED BY THE ORDER OF LD. CIT(A) , THE APPELLAN T IS IN APPEAL BEFORE US IN THE PRESENT APPEAL. 6. THE LD. AR SUBMITTED BEFORE US THAT THOUGH WE HA VE FILED PETITION FOR CONDONATION OF DELAY WAS FILED BEFORE LD. CIT(A ) PRAYING CONDONATION OF DELAY. IT IS CONTENDED BEFORE US THAT THE LD. CI T(A) OUGHT TO HAVE APPRECIATED THAT THE DELAY OF 5 DAYS HAD OCCURRED O N ACCOUNT OF ILL-HEALTH ITA NOS.3352 & 3355/CHNY/2019 :- 4 -: OF THE MANAGING DIRECTOR OF THE APPELLANT-COMPANY. ON THE OTHER HAND, THE LD. SR. DR OPPOSED ABOVE SUBMISSION. 7. WE HEARD THE RIVAL SUBMISSIONS AND PERUSED MATER IAL AVAILABLE ON RECORD. THE APPEAL BEFORE LD. CIT(A) WAS FILED WI TH DELAY OF FIVE DAYS. THE APPELLANT HAD FILED PETITION PRAYING FOR CONDON ATION OF DELAY ON ACCOUNT OF ILL-HEALTH OF THE MANAGING DIRECTOR OF T HE APPELLANT-COMPANY. IN OUR CONSIDERED OPINION, IT CONSTITUTE REASONABLE CAUSE FOR DELAY IN FILING THE APPEAL, THE LD. CIT(A) OUGHT TO HAVE CON DONED THE DELAY OF FIVE DAYS IN FILING THE APPEAL, WE RESTORE THE MATTER BA CK TO THE FILE OF LD. CIT(A) CONDONING THE DELAY OF FIVE DAYS WITH THE DI RECTION TO DISPOSE THE APPEAL ON MERITS. 8. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IN ITA NO.3352/CHNY/2019 FOR A.Y 2007-08 IS PARTLY ALLOWED FOR STATISTICAL PURPOSE. ITA NO.3355/CHNY/2019 FOR A.Y 2013-14 : 9. THE APPELLANT IS AN INDIVIDUAL. THE APPELLANT H AS FILED THE RETURN OF INCOME ON 23.11.2013 FOR THE A.Y 2013-14 DISCLOSING TOTAL INCOME OF RS. 9,63,040/-. AGAINST THE SAID RETURN OF INCOME, THE ASSESSMENT WAS COMPLETED BY ACIT, CORPORATE CIRCLE-2(1), CHENNAI V IDE ORDER DATED 30.03.2016 AT A TOTAL INCOME OF RS. 56,47,710/-. W HILE DOING SO, THE AO ITA NOS.3352 & 3355/CHNY/2019 :- 5 -: HAS MADE AN ADDITION OF RS. 15,98,000/- AS UNEXPLAI NED CASH DEPOSITS IN BANK ACCOUNT AND ALSO MADE ADDITION OF SALE PROCEED S OF AGRICULTURAL LAND ON THE GROUND THAT IT IS NOT PROVED THAT THE L AND THAT WAS SOLD WAS AGRICULTURAL LAND. THE AO ALSO MADE ADDITION OF RS . 2,23,000/- ON ACCOUNT OF UNEXPLAINED SOURCES FOR CREDIT CARD PAYM ENT OF RS. 2,23,000/. 10. BEING AGGRIEVED BY THE ABOVE ASSESSMENT, AN APP EAL WAS PREFERRED BEFORE LD. CIT(A). THE APPEAL WAS POSTED FOR HEARING ON 15.10.2019 VIDE HEARING NOTICE DATED 01.10.2019 BY LD. CIT(A). AGAIN, THE MATTER WAS ADJOURNED ON 21.10.2019 CALLING UPON THE APPELLANT TO FURNISH ONE FULL SET COPY OF E-APPEAL FILED AND WIT H THE NOTING THAT IT WAS A FINAL OPPORTUNITY AND IN THE EVENT OF NON COMPLIANC E THE APPEAL WOULD BE DECIDED BASED ON THE DOCUMENTS AVAILABLE ON RECORD. ON THE NEXT DATE OF HEARING ON 21.10.2019, NO APPEARANCE WAS CAUSED THEREFORE, THE LD. CIT(A) HAD PROCEEDED TO DISMISS THE APPEAL EXPARTE FOR NON RECTIFICATION OF THE DEFECTS SUCH AS FOR NON-ENCLOSING OF NOTICE OF DEMAND ETC. BEING AGGRIEVED BY THE ORDER OF LD. CIT(A) , THE APPELLAN T IS IN APPEAL BEFORE US IN THE PRESENT APPEAL. 11. FROM THE PERUSAL OF THE IMPUGNED ORDER, IT IS V ERY CLEAR THAT THE LD. CIT(A) HAD NOT GRANTED REASONABLE OPPORTUNITY TO CO MPLY WITH THE DEFECTS NOTICE THEREFORE, WE ARE OF THE CONSIDERED OPINION THAT THE MATTER SHOULD GO BACK TO THE FILE OF LD. CIT(A) FOR FRESH ADJUDICATION IN ITA NOS.3352 & 3355/CHNY/2019 :- 6 -: ACCORDANCE WITH LAW AFTER AFFORDING A REASONABLE OP PORTUNITY BEING HEARD TO THE APPELLANT. 12. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IN ITA NO.3355/CHNY/2019 FOR A.Y 2013-14 IS PARTLY ALLOWED FOR STATISTICAL PURPOSE. 13. IN THE RESULT, BOTH THE APPEALS FILED BY THE AS SESSEE ARE PARTLY ALLOWED FOR STATISTICAL PURPOSE. ORDER PRONOUNCED ON THE 04 TH DAY OF MARCH, 2020 IN CHENNAI. SD/- SD/- ( ) (GEORGE MATHAN) /JUDICIAL MEMBER ( #'$ % ! ) (INTURI RAMA RAO) & /ACCOUNTANT MEMBER /CHENNAI, 3' /DATED: 04 TH MARCH, 2020. EDN, SR. P.S 2 , */45 65(/ /COPY TO: 1. ) /APPELLANT 2. *+) /RESPONDENT 3. . 7/ ( )/CIT(A) 4. . 7/ /CIT 5. 5!89 */ /DR 6. 9 : /GF