Vivek Enterprise, Surat V. The Income tax Officer,Ward-5(2), Surat

ITA 355/AHD/2013

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 94608 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 8 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-10-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 29-09-2015
• Assessment Year: 2008-2009
• Appeal Filed On: 05-02-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SOMOGYAN
• Keywords: Unexplained cash credit
• Section: 142(1); 68

Judgement Text

, B IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, AHMEDABAD BEFORE SHRI RAJPAL YADAV, JUDICIAL MEMBER AND SHRI ANIL CHATURVEDI, ACCOUNTANT MEMBER ./ ITA NO.355/AHD/2013 / ASSTT. YEAR: 2008-2009 VIVEK ENTERPRISES A-501, GREEN AVENUE APARTMENT GHOD DOD ROAD SURAT 395 001, GUJARAT. VS ITO, WARD-5(2) SURAT. / (APPELLANT) / (RESPONDENT) ASSESSEE BY : MS. URVASHI SHODHAN, AR REVENUE BY : SHRI SOMOGYAN, SR.DR ! / DATE OF HEARING : 29/09/2015 '#$ ! / DATE OF PRONOUNCEMENT: 16/10/2015 %& / O R D E R PER RAJPAL YADAV, JUDICIAL MEMBER: THE ASSESSEE IS IN APPEAL BEFORE US AGAINST THE ORD ER OF THE LD.CIT(A)-I, SURAT DATED 18.12.2012 PASSED FOR THE ASSTT.YEAR 2008- 2009. 2. SOLITARY GRIEVANCE OF THE ASSESSEE IS THAT THE L D.CIT(A) HAS ERRED IN CONFIRMING THE ADDITION OF RS.1,14,000/- WHICH W AS ADDED BY THE AO WITH THE AID OF SECTION 68 OF THE INCOME TAX ACT ON ACCOUNT OF UNEXPLAINED CASH CREDITS SHOWN IN THE BALANCE SHEET OF THE ASSESSEE. ITA NO.355/AHD/2013 2 3. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE HA S FILED ITS RETURN OF INCOME ON 31.3.2009 DECLARING TAXABLE INCOME AT RS. 19,330/-. THE CASE OF THE ASSESSEE WAS SELECTED FOR SCRUTINY ASSE SSMENT AND NOTICE UNDER SECTION 143(2) OF THE INCOME TAX ACT WAS ISSU ED ON 27.8.2009. ON SCRUTINY OF THE ACCOUNTS, THE LD.AO FOUND THAT T HE CREDITS OF RS.1,14,000/- IS STANDING AGAINST THE NAMES OF SIX PERSONS. THE ASSESSEE HAS TAKEN UNSECURED LOAN OF RS.19,000/- EA CH FROM SIX PERSONS. THE LD.AO WAS NOT SATISFIED WITH THE EXPL ANATION OF THE ASSESSEE, AND THEREFORE, HE ADDED THIS AMOUNT IN TH E TOTAL INCOME OF THE ASSESSEE. 2. APPEAL TO THE CIT(A) DID NOT BRING ANY RELIEF TO THE ASSESSEE. 3. WITH THE ASSISTANCE OF THE LD.REPRESENTATIVE, WE HAVE GONE THROUGH THE RECORD CAREFULLY. WE FIND THAT THOUGH THE AO HAS ISSUED NOTICE UNDER SECTION 143(2) OF THE ACT ON 27.8.2009 , BUT THEREAFTER THE ASSESSMENT PROCEEDINGS WERE REMAINED DORMANT. HE S TARTED INVESTIGATION ON 6.12.2010 WHEN A NOTICE UNDER SECT ION 142(1) WAS ISSUED TO THE ASSESSEE. THE LD.AO HAS FINALIZED TH E ASSESSMENT ORDER ON 9.12.2010. IT MEANS THAT HE HAS JUST GIVEN 22 D AYS TIME TO THE ASSESSEE TO SUBMIT DETAILS. THE ASSESSEE HAS SUBMI TTED ALL POSSIBLE DETAILS, BUT THE AO WAS NOT SATISFIED WITH THESE DE TAILS. IN OUR UNDERSTANDING, TIME GIVEN BY THE AO WAS TOO SHORT F OR THE ASSESSEE TO DEFEND THE QUERIES OF THE AO. THEREFORE, WE SET AS IDE BOTH THE IMPUGNED ORDERS OF THE AUTHORITIES BELOW, AND RESTO RE THIS ISSUE BACK TO THE FILE OF THE AO FOR RE-ADJUDICATION. THE ASSESS EE WILL BE AT LIBERTY TO SUBMIT ANY DETAILS TO SUPPORT ITS CASE BEFORE THE R EVENUE AUTHORITIES. WE ALSO HOLD THAT THE LD.AO WILL COMMENCE INQUIRY W ELL IN TIME SO THAT THE ASSESSEE COULD HAVE SUFFICIENT OPPORTUNITY TO D EFEND ITSELF. IN VIEW ITA NO.355/AHD/2013 3 OF THE ABOVE, THE APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSE. 4. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED FOR STATISTICAL PURPOSE. ORDER PRONOUNCED IN THE COURT ON 16 TH OCTOBER, 2015 AT AHMEDABAD. SD/- SD/- (ANIL CHATURVEDI) ACCOUNTANT MEMBER (RAJPAL YADAV) JUDICIAL MEMBER