Shri. Sureshgouda Shankargouda Patil, Bagalkot V. Income Tax Officer, Ward- 1, Bagalkot

ITA 349/BANG/2020

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 2692 (ITAT-BANGALORE)
• Duration Of Justice: 8 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-11-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Next Hearing Date: 25-11-2020
• Assessment Year: 2014-2015
• Appeal Filed On: 13-03-2020
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: PREETHI PATIL
• Keywords: Opportunity of being heard; Principle of natural justice; Additional evidence; Set aside
• Section: 144

Judgement Text

ITA NO.349/BANG/2020 SHRI SURESHGOUDA SHANKARGOUDA PATIL, BAGALKOT IN THE INCOME TAX APPELLATE TRIBUNAL CBENCH: BANGALORE BEFORE SHRI N.V. VASUDEVAN, VICE PRESIDENTAND SHRI B.R. BASKARAN, ACCOUNTANT MEMBER ITA NO.349/BANG/2020 ASSESSMENTYEAR:2014-15 SHRI SURESHGOUDA SHANKARGOUDA PATIL NO.6, PRASHANTH NILAYA KHB COLONY, BASAVESHWAR NAGAR BILAGI BGALKOT (DIST.) 587 116 PAN NO :AHNPP3040M VS. ITO WARD-1 BAGALKOT APPELLANT RESPONDENT A PPELLANT BY : MS. PREETHI PATIL, A.R. RESPONDENT BY : SHRI PRADEEP KUMAR, D.R. DATE OF HEARING : 25.11.2020 DATE OF PRONOUNCEMENT : 25.11.2020 O R D E R PERB.R. BASKARAN, ACCOUNTANT MEMBER: THE ASSESSEE HAS FILED THIS APPEAL CHALLENGING THE ORDER DATED 29.11.2019 PASSED BY LD. CIT(A), HUBBALLI AND IT RE LATES TO THE ASSESSMENT YEAR 2014-15. THE ASSESSEE IS AGGRIEVED BY THE DECISION OF LD. CIT(A) IN REFUSING TO ADMIT ADDITIO NAL EVIDENCES AND ALSO IN CONFIRMING THE ADDITION OF RS.59.06 LAKHS R ELATING TO BANK DEPOSITS AND RS.69,509/- RELATING TO INTEREST FROM BANKS. ITA NO.349/BANG/2020 SHRI SURESHGOUDA SHANKARGOUDA PATIL, BAGALKOT PAGE 2 OF 5 2. THE FACTS RELATING TO THE CASE ARE STATED IN BRI EF. THE ASSESSEE FILED HIS RETURN OF INCOME FOR THE YEAR UNDER CONSI DERATION DECLARING A TOTAL INCOME OF RS.9,53,500/-. THE A.O. NOTICED THAT THE ASSESSEE HAS MADE CASH DEPOSITS OF RS.52.56 LAKHS IN BANK OF INDIA, BAGALKOT AND RS.6.56 LAKHS IN CANARA BANK, BAGALKOT . THE A.O. NOTICED THAT THE ASSESSEE IS A DIRECTOR IN BILAGI S UGAR MILLS LTD., BAGALKOT AND RECEIVES REMUNERATION OF RS.9,75,000/- . BESIDES THE ABOVE, THE ASSESSEE HAS DECLARED LOSS FROM HOUSE PR OPERTY OF RS.63,000/- AND INTEREST INCOME OF RS.1,41,498/-. HENCE, THE AO ASKED FOR EXPLANATIONS FROM THE ASSESSEE WITH REGAR D TO THE SOURCES OF DEPOSITS. SINCE THERE WAS NO RESPONSE FROM THE ASSESSEE, THE A.O. COMPLETED THE ASSESSMENT U/S 144 OF THE INCOME -TAX ACT,1961 ['THE ACT' FOR SHORT] ASSESSING THE AGGREGATE AMOUN T OF CASH DEPOSITS OF RS.59.06 LAKHS. THE A.O. ALSO NOTICED THAT THE ASSESSEE HAS NOT DECLARED INTEREST INCOME FROM BANKS OF RS.69,509/- AND ACCORDINGLY ASSESSED THE SAME ALSO. 3. BEFORE LD. CIT(A), THE ASSESSEE FURNISHED CERTAI N DETAILS RELATING TO BANK DEPOSITS. THE ASSESSEE OFFERED TH E EXPLANATION FOR NOT FURNISHING THOSE EVIDENCES BEFORE THE AO; I.E., THE A.R. OF THE ASSESSEE WAS UNWELL ON THE DATES OF HEARING GIVEN B Y A.O. AND HENCE, THE ASSESSEE COULD NOT BE FURNISH THESE DETA ILS BEFORE THE ASSESSING OFFICER. SINCE THIS EXPLANATION WAS NOT SUBSTANTIATED, THE LD. CIT(A) REJECTED THEM. HENCE, THE LD. CIT(A) REF USED TO ADMIT THE ADDITIONAL EVIDENCES AND ACCORDINGLY CONFIRMED THE ADDITIONS MADE BY THE A.O. AGGRIEVED, THE ASSESSEE HAS FILED THIS APPEAL BEFORE US. 4. THE LD. A.R. SUBMITTED THAT THE ASSESSMENT WAS C OMPLETED U/S 144 OF THE ACT, SINCE THE ASSESSEE WAS NOT REPR ESENTED BY THE AUTHORIZED REPRESENTATIVE BEFORE THE A.O. FOR THE R EASON THAT HE WAS UNWELL. HENCE, THE ASSESSEE FURNISHED ALL THE EVID ENCES IN SUPPORT ITA NO.349/BANG/2020 SHRI SURESHGOUDA SHANKARGOUDA PATIL, BAGALKOT PAGE 3 OF 5 OF THE BANK DEPOSITS BEFORE LD. CIT(A) IN THE FORM OF ADDITIONAL EVIDENCES. HOWEVER, THE LD. CIT(A) HAS REFUSED TO ACCEPT THE SAME BY NOT ACCEPTING THE EXPLANATIONS OF THE ASSESSEE. THE LD. A.R. SUBMITTED THAT THE ASSESSEE WAS PREVENTED FROM FURN ISHING THESE EVIDENCES BEFORE THE AO FOR THE REASONS BEYOND HIS CONTROL. ACCORDINGLY SHE SUBMITTED THAT THE LD CIT(A) SHOULD HAVE ADMITTED THE ADDITIONAL EVIDENCES. THE LD A.R PRAYED THAT, IN THE INTEREST OF NATURAL JUSTICE, THE ASSESSEE SHOULD BE GIVEN ONE M ORE OPPORTUNITY TO EXPLAIN THE SOURCES OF DEPOSITS MADE INTO THE BA NK ACCOUNT. ACCORDINGLY, SHE PRAYED THAT THE ADDITIONAL EVIDENC ES FURNISHED BY THE ASSESSEE BE ADMITTED AND MATTER MAY BE RESTORED TO THE FILE OF THE A.O. FOR EXAMINING IT AFRESH. 5. WE HEARD LD. D.R. AND PERUSED THE RECORD. WE NO TICE THAT THE A.O. WAS CONSTRAINED TO COMPLETE THE ASSESSMENT TO THE BEST OF HIS JUDGEMENT U/S 144 OF THE ACT IN VIEW OF NON-COO PERATION FROM THE ASSESSEES SIDE. IT IS STATED THAT THE A.R. OF THE ASSESSEE WAS UNWELL AND HENCE HE DID NOT PROPERLY REPRESENT THE MATTER BEFORE A.O. HENCE, THE ASSESSEE HAS FURNISHED EVIDENCES B EFORE LD. CIT(A) TO SUBSTANTIATE THE CASH DEPOSITS MADE INTO THE BAN K ACCOUNT. WE HAVE NOTICED THAT THE LD. CIT(A) HAS REFUSED TO ADM IT THEM. IT IS A FACT THAT THE AR OF THE ASSESSEE DID NOT REPRESENT BEFORE THE AO FOR THE REASONS STATED ABOVE. HENCE, IN THE FACTS AND CIRCUMSTANCES OF THIS CASE, WE ARE OF THE VIEW THAT THE ASSESSEE SHO ULD NOT BE PUT INTO DIFFICULTIES FOR THE FAILURE OF THE LD A.R. F URTHER ASSESSMENT HAS BEEN COMPLETED BY AO TO THE BEST OF HIS JUDGEME NT U/S 144 OF THE ACT. HENCE, WE ARE OF THE VIEW THAT THERE WAS SUFFICIENT CAUSE FOR THE ASSESSEE IN NOT PRESENTING THE EVIDENCES BE FORE THE AO. ACCORDINGLY, IN THE INTEREST OF NATURAL JUSTICE, TH E ADDITIONAL EVIDENCES FURNISHED BY THE ASSESSEE SHOULD HAVE BEE N ADMITTED BY ITA NO.349/BANG/2020 SHRI SURESHGOUDA SHANKARGOUDA PATIL, BAGALKOT PAGE 4 OF 5 LD CIT(A). ACCORDINGLY, WE ADMIT THE ADDITIONAL EVI DENCES. HOWEVER, THESE EVIDENCES REQUIRE EXAMINATION AT THE END OF AO. 6. SINCE THERE WAS FAILURE ON THE PART OF THE A SSESSEE TO PROPERLY REPRESENT BEFORE THE A.O., WE ARE OF THE VIEW THAT THE ASSESSEE SHOULD BEAR A COST FOR CAUSING UNWARRANTED INCONVEN IENCES TO THE DEPARTMENT. ACCORDINGLY, WE IMPOSE A COST OF RS.2, 000/- (RS. TWO THOUSAND ONLY) UPON THE ASSESSEE, WHICH SHALL BE P AID TO THE CREDIT OF THE INCOME TAX DEPARTMENT WITHIN ONE MONTH FROM THE DATE OF RECEIPT OF THIS ORDER. SUBJECT TO THE PAYMENT OF T HE ABOVE SAID COST, WE SET ASIDE THE ORDER PASSED BY LD CIT(A) AND REST ORE ALL THE ISSUES TO THE FILE OF THE AO FOR EXAMINING THEM AFRESH BY DULY CONSIDERING THE ADDITIONAL EVIDENCES. AFTER AFFORDING ADEQUATE OPPORTUNITY OF BEING HEARD, THE A.O. MAY TAKE APPROPRIATE DECISION IN ACCORDANCE WITH LAW. 7. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS TREATED AS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 25 TH NOV, 2020. SD/- (N.V. VASUDEVAN) VICE PRESIDENT SD/- (B.R. BASKARAN) ACCOUNTANT MEMBER BANGALORE, DATED 25 TH NOV, 2020. VG/SPS ITA NO.349/BANG/2020 SHRI SURESHGOUDA SHANKARGOUDA PATIL, BAGALKOT PAGE 5 OF 5 COPY TO: 1. THE APPLICANT 2. THE RESPONDENT 3. THE CIT 4. THE CIT(A) 5. THE DR, ITAT, BANGALORE. 6. GUARD FILE BY ORDER ASST. REGISTRAR, ITAT, BANGALORE.