Dy. Commissioner of Income Tax-VI, Lucknow V. M/s Sadhna City Homes Pvt. Ltd., Lucknow

ITA 353/LKW/2013

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 78639 (ITAT-LUCKNOW)
• Duration Of Justice: 1 year(s) 2 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-07-2014
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 24-07-2014
• Assessment Year: 2006-2007
• Appeal Filed On: 17-05-2013
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: ALOK MITRA
• Keywords: Unexplained cash credit; Opportunity of being heard; Additional evidence

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL LUCKNOW BENCH A , LUCKNOW BEFORE SHRI S UNIL KUMAR YADAV , JUDICIAL MEMBER AND SHRI. A. K. GARODIA , ACCOUNTANT MEMBER ITA NO. 353/LKW/2013 ASSESSMENT YEAR: 2006 - 07 DCIT - VI LUCKNOW V. M/S SADHANA CITY HOMES PVT. L TD. 2/268, VISHWAS KHAND GOMTI NAGAR, LUCKNOW PAN: AAJCS0469F (APP ELL ANT) (RESPONDENT) APP ELL ANT BY: SHRI. ALOK MITRA, D.R. RESPONDENT BY: NONE DATE OF HEARING: 24 0 7 2014 DATE OF PRONOUNCEMENT: 28 0 7 2014 O R D E R PER SUNIL KUMAR YADAV: TH IS APPEAL IS PREFERRED BY THE REVENUE AGAINST THE ORDER OF THE LD. CIT(A), INTER ALIA, ON THE FOLLOWING GROUNDS: - 1 . THE CIT(A) HAS ERRED IN LAW AND ON FACTS OF THE CASE WHILE RESTRICTING THE ADDITION MADE BY THE AO TO THE EXTENT OF RS.52,60,000/ - ON ACCOUNT OF UNEXPLAINED CASH CREDITS. THE LD. COMMISSIONER OF INCOME - TAX (APPEALS) FAILED TO APPRECIATE THE FACT THAT THE ASSESSEE FAILED TO FURNISH ANY EXPLANATION TO THE AO IN RESPECT OF SHARE APPLICATION MONEY AMOUNTING RS.31,89,000/ - AND CURRENT LIABILITIES AM OUNTING RS.41,50,000/ - DURING THE COURSE OF ASSESSMENT PROCEEDINGS. 2 . THE C1T(A) HAS ERRED IN LAW IN ADMITTING ADDITIONAL EVIDENCE IN THE FORM OF SALE DEED WITHOUT ALLOWING THE AO ANY OPPORTUNITY OR CALLING FOR ANY REMAND REPORT. IN DOING SO, THE LD.CIT(A) F AILED TO OBSERVE THE PROVISIONS OF RULE 46A OF INCOME - TAX RULES, 1961. PRINT TO PDF WITHOUT THIS MESSAGE BY PURCHASING NOVAPDF ( HTTP://WWW.NOVAPDF.COM/ ) : - 2 - : 2 . THIS APPEAL CAME UP FOR HEARING ON 24.7.2014 BUT NONE APPEARED ON BEHALF OF THE ASSESSEE. FROM A PERUSAL OF RECORD, IT IS NOTICED THAT ON THE LAST DATE OF HEARING , THE ASSESSEE HAD MO VED AN APPLICATION FOR ADJOURNMENT AND ON HIS REQUEST THE ADJOURNMENT WAS GRANTED AND APPEAL WAS FIXED FOR HEARING ON 24.7.2014, BUT D ESPITE HAVING KNOWLEDGE OF DATE OF HEARING, NONE APPEARED ON BEHALF OF THE ASSESSEE. WE HAVE, THEREFORE, NO OTHER OPTION BUT TO DISPOSE OF THE APPEAL IN THE ABSENCE OF THE ASSESSEE. ACCORDINGLY THE REVENUE WAS HEARD. 3 . DURING THE COURSE OF HEARING OF THE APPEAL, THE LD. D.R. HAS INVITED OUR ATTENTION TO PARA NO.3.4.2 OF THE ORDER OF THE LD. CIT(A) WITH THE SUBMISSION THAT THE ASSESSEE HAS FILED A COPY OF THE SALE DEED EXECUTED WITH SARDAR JASBEER SINGH AND SARDAR SURENDRA PAL SINGH ON 15.2.2006 FOR THE PURCHASE OF LAND BY THE COMPANY. THIS SALE DEED WAS NOT PRODUCED BEFORE THE ASSESSING OFFICER DURING THE COURSE OF ASSESSMENT PROCEEDINGS. BESIDES, OTHER DOCUMENTS WERE ALSO PLACED BEFORE THE LD. CIT(A) AND THE LD. CIT(A) HAS ADMITTED THE SAME AND HAVING RELIED UPON THEM DELETED THE ADDITIONS MADE BY THE ASSESSING OFFICER. THEREFORE, THERE IS A CLEAR VIOLATION OF PROVISIONS OF RULE 46A OF THE INCOME - TAX RULES, 1962. HENCE, T HE ORDER OF THE LD. CIT(A) DESERVES TO BE SET ASIDE AND THE MATTER BE RESTORED TO THE LD. CIT(A) FOR ADJUDICATION OF THE ISSUES AFTER CONFRONTATION OF THE EVIDENCE TO THE ASSESSING OFFICER . 4 . HAVING CAREFULLY EXAMINED THE ORDER OF THE LD. CIT(A) IN THE LIGHT OF THE REVENUES CONTENTIONS, WE FIND THAT BEFORE THE LD. CIT(A) ASSESSEE HAS FILED SOME ADDITIONAL EVIDENCE WHICH WERE NOT CONFRONTED TO THE ASSESSING OFFICER BEFORE ADMITTING THE SAME. SINCE THE LD. CIT (A) HAS ADMITTED THE ADDITIONAL EVIDENCE AND DELETED THE ADDITION HAVING RELIED UPON THEM, WE ARE OF THE VIEW THAT THERE IS A VIOLATION OF PROVISIONS OF RULE 46A OF THE RULES. THEREFORE, WE SET ASIDE THE ORDER OF THE LD. CIT(A) AND RESTORE THE MATTER TO H IS FILE WITH A DIRECTION TO RE - ADJUDICATE THE ISSUES PRINT TO PDF WITHOUT THIS MESSAGE BY PURCHASING NOVAPDF ( HTTP://WWW.NOVAPDF.COM/ ) : - 3 - : AFTER CONFRONTING THE ADDITIONAL EVIDENCE TO THE ASSESSING OFFICER AND AFFORDING AN OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. 5 . IN THE RESULT, APPEAL OF THE REVENUE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 28.7.2014. SD/ - SD/ - [ A. K. GARODIA ] [ S UNIL KUMAR Y ADAV ] ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 28 TH JU LY , 2014 JJ: 2407 COPY FORWARDED TO: 1 . APPELLANT 2 . RESPONDENT 3 . CIT(A) 4 . CIT 5 . DR ASSISTANT REGISTRAR PRINT TO PDF WITHOUT THIS MESSAGE BY PURCHASING NOVAPDF ( HTTP://WWW.NOVAPDF.COM/ )