Sh. Harinder Singh, Chandigarh V. ITO, Chandigarh

ITA 341/CHANDI/2014

• Counselvise Citation: [2014] 120 COUNSELVISE.COM (IT) 6192 (ITAT-CHANDIGARH)
• Duration Of Justice: 3 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-07-2014
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2009-2010
• Appeal Filed On: 03-04-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ASHWIN S
• Keywords: Deemed to accrue or arise in india
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL CHANDIGARH BENCH B CHANDIGARH BEFORE SHRI T.R.SOOD ACCOUNTANT MEMBER AND MS. SUSHMA CHOWLA, JUDICIAL MEMBER ITA NO.341/CHD/2014 ASSESSMENT YEAR : 2009-10 SHRI HARINDER SINGH, VS THE INCOME TAX OFFIC ER, H.NO. 3199, WARD 4(2), SECTOR 28-D, CHANDIGARH. CHANDIGARH. PAN : AIYPS0798M (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI AJAY JAIN RESPONDENT BY : SHRI ASHWIN.S., DR DATE OF HEARING : 25.06.2014 DATE OF PRONOUNCEMENT : 11.07.2014 O R D E R PER SUSHMA CHOWLA, JM THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAIN ST THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS)-II, CHANDI GARH DATED 01.11.2013 RELATING TO ASSESSMENT YEAR 2009-10 AGAI NST THE ORDER PASSED UNDER SECTION 143(3) OF THE INCOME TAX ACT, 1961 (I N SHORT 'THE ACT'). 2. THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL : 1. THAT THE LEARNED C.I.T. (A) CHANDIGARH HAS WRONGLY UPHELD THE ORDER OF ASSESSING OFFICER WHICH HAS BEEN PASSE D BY AO WITHOUT ANY MATERIAL EVIDENCE ON RECORD & THEREFO RE DESERVED TO BE QUASHED.. 2. THAT THE LEARNED C.I.T. (A) CHANDIGARH HAS WRONGL Y UPHELD THE ADDITION OF RS 4523947- ON ACCOUNT OF NON EXPLA NATION OF EXPENDITURE/PAYMENT THROUGH CREDIT CARD WITHOUT A PPRECIATING THE FACT THAT NO MATERIAL/ STATEMENT OF CREDIT CARD HAS BEEN PROVIDED TO APPELLANT BY THE ASSESSING OFFICER. FURTHUR THE LEARNED CIT(A) HAS ALSO ERRED IN CONFIRMING THE ACTION OF 2 ASSESSING OFFICER WHO MADE THE ADDITION SIMPLY ON T HE BASIS OF AIR INFORMATION WITHOUT COLLECTING THE STATEMENT OF THE CREDIT CARD FROM CONCERNED BANK. 3. THAT THE LD CIT (A) HAS WRONGLY STATED IN PARA2 OF APPELLATE ORDER THAT NO BODY ATTENDED THE APPELLATE PROCEED INGS ON 14-01-2013. 3. THE ONLY ISSUE RAISED IN THE PRESENT APPEAL IS A GAINST ADDITION OF RS. 452,394/-. 4. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSE E WAS A TRUCK OPERATOR HAVING FLEET OF SIX HEAVY TRUCKS. THE ASS ESSEE HAD FURNISHED RETURN OF INCOME DECLARING TOTAL INCOME OF RS. 2,65 ,000/- AS COMPUTED UNDER SECTION 44AE OF THE ACT. IN THE CASE OF THE ASSESSEE, CERTAIN AIR INFORMATION WAS RECEIVED AS PER WHICH THE ASSESSEE HAD MADE PAYMENTS OF RS. 842,024/- THROUGH CREDIT CARD. THE ASSESSEE WAS ASKED TO EXPLAIN THE SOURCE OF THE SAID PAYMENT. IN REPLY THE ASSES SEE FURNISHED THE PROOF OF PAYMENT FOR RS. 389,630/- ONLY. AS THE ASSESSEE HAD NOT FURNISHED THE EXPLANATION WITH REGARD TO THE BALANCE EXPENDITURE, A SUM OF RS. 452,394/- WAS TREATED AS DEEMED INCOME OF THE ASSES SEE. THE COMMISSIONER OF INCOME TAX (APPEALS) FIXED THE APPE AL ON TWO DIFFERENT DATES OF HEARING AND AS NOBODY HAD ATTENDED ON BEHA LF OF THE ASSESSEE, THE COMMISSIONER OF INCOME TAX (APPEALS) HELD THAT IN THE ABSENCE OF ANY EXPLANATION GIVEN REGARDING SOURCE OF PAYMENT, THE IMPUGNED AMOUNT IS TREATED AS INCOME OF THE ASSESSEE. 5. THE LD. AR FOR THE ASSESSEE POINTED OUT THAT THE AIR INFORMATION RECEIVED EARLIER BY THE ASSESSING OFFICER DID NOT R ELATE TO THE ASSESSEE. BUT BEFORE THE COMPLETION OF THE ASSESSMENT ANOTHER AIR INFORMATION WAS RECEIVED BY THE ASSESSING OFFICER WHICH HAS NOT BEEN CONSIDERED BY THE ASSESSING OFFICER BEFORE MAKING THE ADDITION IN THE HANDS OF THE ASSESSEE. IT WAS FURTHER POINTED OUT BY THE LD. AR FOR THE ASSESSEE THAT THE SAID INFORMATION IS AVAILABLE ON ASSESSMENT REC ORDS. 3 6. THE LD. DR FOR THE REVENUE PLACED RELIANCE ON TH E ORDERS OF THE AUTHORITIES BELOW. 7. WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE RECORD. THE ISSUE ARISING IN THE PRESENT CASE IS IN RELATION TO THE EXPLANATION OF SOURCES OF PAYMENT OF THE AMOUNTS DEBITED THROUGH T HE CREDIT CARD. THE CASE OF THE ASSESSEE BEFORE US IS THAT THOUGH AIR I NFORMATION NOT RELATING TO THE ASSESSEE WAS FORWARDED TO THE ASSES SING OFFICER INCHARGE OF THE ASSESSEE AND THE ASSESSING OFFICER WITHOUT V ERIFYING THE SAME HAD MADE ADDITION IN THE HANDS OF THE ASSESSEE AS COMPL ETE EVIDENCE COULD NOT BE FILED BY THE ASSESSEE VIS--VIS THE SAID PAY MENTS. HOWEVER, DURING THE COURSE OF ASSESSMENT PROCEEDINGS ITSELF, ANOTHER COMMUNICATION WAS RECEIVED FROM THE AIR IN WHICH TH E DETAILS OF THE CREDIT CARD RELATING TO THE ASSESSEE WERE FORWARDED TO THE ASSESSING OFFICER BUT THE SAME HAD NOT BEEN CONSIDERED BY THE ASSESSING OFFICER AND ADDITION HAS BEEN MADE IN THE HANDS OF THE ASSE SSEE ON THE BASIS OF THE EARLIER INFORMATION RECEIVED. THE ASSESSEE HAS MOVED AN APPLICATION UNDER RULE 29 OF ITAT RULES FOR CONSIDERING THE SAI D DOCUMENTS PLACED IN THE PAPER BOOK. ON THE PERUSAL OF THE ORDERS OF THE AUTHORITIES BELOW, WE FIND THAT THE SAID INFORMATION WAS NOT FURNISHED BEFORE THE COMMISSIONER OF INCOME TAX (APPEALS) AS THE APPEAL OF THE ASSESSEE WAS DECIDED EX-PARTE. THE PLEA OF THE ASSESSEE IN THIS REGARD WAS THAT THE SAID NOTICE COULD NOT BE FORWARDED TO THE ASSESSEE AS HE WAS AWAY ON HIS TRANSPORT BUSINESS. IN THE INTEREST OF JUSTICE, WE DEEM IT FIT TO RESTORE THIS ISSUE BACK TO THE FILE OF ASSESSING OFFICER WH O SHALL CONSIDER THE AIR INFORMATION AVAILABLE ON RECORD AND ALSO TAKE A CALL AS TO WHICH AIR INFORMATION WAS RELATABLE TO THE ASSESSEE. THE ASS ESSEE IS DIRECTED TO FURNISH ALL SOURCES OF PAYMENT OF THE SAID CREDIT C ARD AND THE ASSESSING 4 OFFICER SHALL DECIDE THE ISSUE ACCORDINGLY. IN VIE W THEREOF, GROUNDS OF APPEAL RAISED BY ASSESSEE ARE ALLOWED FOR STATISTIC AL PURPOSES. 8. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 11 TH JULY,2014. SD/- SD/- ( T.R.SOOD) (SUSHMA CHOWLA) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 11 TH JULY,2014 POONAM COPY TO: THE APPELLANT, THE RESPONDENT, THE CIT(A), THE CIT, DR ASSISTANT REGISTRAR ITAT/CHD