The Income-tax Officer, Phagwara V. Sh Harneet Singh, Phagwara

ITA 358/ASR/2011

• Counselvise Citation: [2015] 121 COUNSELVISE.COM (IT) 1473 (ITAT-AMRITSAR)
• Duration Of Justice: 4 year(s) 3 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-09-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 08-09-2015
• Assessment Year: 2007-2008
• Appeal Filed On: 09-06-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: BHAGAT
• Keywords: Principle of natural justice; Additional evidence

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AMRITSAR BENCH; AMRITSAR BEFORE SH. A.D.JAIN, HONBLE JUDICIAL MEMBER AND SH. T.S. KAPOOR, HONBLE ACCOUNTANT MEMBER I.T.A. NO. 358(ASR)/2011 ASSESSMENT YEAR: 2007-08 I.T.A NO. 131(ASR)/2014 ASSESSMENT YEARS: 2009-10 PAN: ABQPS4502E THE INCOME TAX OFFICER, WARD NO.1, PHAGWARA VS. SH. HARNEET SINGH, PROP. M/S. DOABA FINANCE, KHERA ROAD, PHAGWARA. (APPELLANT) (RESPONDENT) APPELLANT BY: SH. TARSEM LAL (DR) RESPONDENT BY: SH. M. R. BHAGAT (AR) DATE OF HEARING: 0 8.09.2015 DATE OF PRONOUNCEM ENT: 09.09.2015 ORDER PER T. S. KAPOOR (AM): THESE ARE TWO APPEALS FILED BY THE REVENUE AGAINS T THE ORDER OF CIT(A), LUDHIANA DATED 21.04.2011 AND 13.01.2012 FOR ASST. YEAR 2007-08 AND ASST. YEAR 2009-10 RESPECTIVELY. THESE APPEALS WERE HEARD TOGETHER; THEREFORE, FOR THE SAKE OF CONVENIENCE A COMMON AND CONSOLIDATED O RDER IS BEING PASSED. 2. AT THE OUT SET THE LEARNED DR SUBMITTED THAT IN ITA NO.358(ASR)/2011, HE WANTED TO FILE ADDITIONAL GROUND OF APPEAL AND T HEREFORE, HE FILED AN APPLICATION FOR ADJOURNMENT, HOWEVER, THE BENCH DID NOT FIND IT SUFFICIENT REASON FOR SEEKING ADJOURNMENT, THEREFORE, HIS ADJO URNMENT APPLICATION WAS 2. ITA NO.35 8 (ASR)/2011 & ITA NO. 131(ASR)/2014 ASST. YE AR 2007-08 & 2009-10 REJECTED AND LEARNED DR WAS DIRECTED TO PROCEED WIT H THESE APPEALS. THE LEARNED DR SUBMITTED THAT THE LEARNED CIT(A) HAD AL LOWED THE RELIEF TO THE ASSESSEE AFTER ADMISSION OF ADDITIONAL EVIDENCE WIT HOUT RECORDING ANY OF THE CLAUSES IN WHICH THE ASSESSEES CASE FELL AND IN TH IS RESPECT, OUR ATTENTION WAS INVITED TO RULE 46A, WHICH PROVIDES THAT THE LEARNE D CIT(A) CANNOT ADMIT THE ADDITIONAL EVIDENCE WITHOUT FULFILLMENT OF ONE OF T HE CONDITION LISTED FROM (A) TO (D). THE LEARNED DR TOOK US TO THE FINDING OF LEARN ED CIT(A) AS RECORDED IN ITA NO. 358(ASR)/2011 AND SUBMITTED THAT THE LEARNED CI T(A) HAS JUST ADMITTED THE ADDITIONAL EVIDENCE BY RECORDING THAT IN THE INTERE ST OF NATURAL JUSTICE ADDITIONAL EVIDENCE IS ADMITTED. THE LEARNED DR SUB MITTED THAT IN APPEAL FOR 2009-2010, THE REVENUE HAS TAKEN SPECIFIC GROUND FO R VIOLATION OF PROVISIONS OF RULE 46A AND THEREFORE, HE REQUESTED THAT THE APPEA LS BE RESTORED TO OFFICE OF LEARNED CIT(A) WHO SHOULD PASS A FRESH ORDER AFTER RECORDING HIS FINDING REGARDING ADMISSION OF ADDITIONAL EVIDENCE. 3. THE LEARNED AR, ON THE OTHER HAND, INVITED OUR ATTE NTION TO THE GROUNDS OF APPEAL IN ITA NO.358(ASR)/2014 AND SUBMITTED THA T THE REVENUE HAS NOT TAKEN ANY SPECIFIC GROUND FOR VIOLATION OF RULE 46A AND MOREOVER, HE SUBMITTED THAT WRITTEN SUBMISSIONS WERE FILED BEFORE THE CIT( A) AND HE AFTER GOING THROUGH THE SUBMISSIONS ARRIVED AT THE CONCLUSION T HAT THE CASE OF ASSESSEE FELL INTO THE CATEGORY (D) WHERE ADMISSION OF ADDITIONAL EVIDENCE WAS NECESSARY. THE LEARNED AR ALSO TOOK US TO A COPY OF ORDER SHEET EN TRIES OF ASSESSING OFFICER PLACED AT PAPER BOOK PAGE 59 AND SUBMITTED THAT THE ASSESSEE WAS ASKED TO PROVE THE CREDITWORTHINESS ONLY ON 15.12.2009 AND 2 1.12.2009 AND HAS PASSED 3. ITA NO.35 8 (ASR)/2011 & ITA NO. 131(ASR)/2014 ASST. YE AR 2007-08 & 2009-10 THE ASSESSMENT ORDER ON 24.12.2009 AND THEREFORE, T HE ASSESSING OFFICER HAD NOT PROVIDED SUFFICIENT OPPORTUNITY AND THEREFORE T HE CASES FELL IN CLAUSE (D) OF SUB RULE 2 OF RULE 46A. HENCE, THE APPEALS FILED BY REVENUE NEEDS TO BE DISMISSED. 4. WE HAVE HEARD THE RIVAL PARTIES AND HAVE GONE THROU GH THE MATERIAL PLACED ON RECORD. BEFORE ARRIVING AT THE CONCLUSIO N LET US EXAMINE THE PROVISIONS OF SUB-CLAUSE 2 OF RULE 46A WHICH READS AS UNDER: NO EVIDENCE SHALL BE ADMITTED UNDER SUB RULE-1 UNL ESS THE DEPUTY COMMISSIONER APPEALS AS THE CASE MAY BE COMMISSIONE R APPEALS RECORDS IN WRITING THE REASONS OF ITS ADMISSION. 5. NOW LET US EXAMINE THE FINDINGS OF LEARNED CIT(A ). THE FINDINGS AS CONTENDED IN PARA 3.2 OF HIS ORDER READS AS UNDER: 3.2 SHRI M.R. BHAGAT, LEARNED REPRESENTATIVE OF THE APPELLANT STATED THAT ELDER SISTER OF THE APPELLANT IS A NON-RESIDENT AND FILING RETUR NS OF INCOME IN U.S.A PHOTO COPIES OF U.S. INDIVIDUAL INCOME TAX RETURNS FOR 2006, 2007 & 2008 WERE PLACED ON RECORD. EVEN HER AFFIDAVIT DULY ATTESTED AND PHOTOCOPY OF HER PA SSPORT WERE PLACED IN RECORD. THE A.O. WHO WAS FORWARDED THE APPLICATION FOR ADMISSIO N OF ADDITIONAL EVIDENCE DID NOT RAISE ANY SERIOUS OBJECTION TO PRODUCTION OF ADDITI ONAL EVIDENCE EXCEPT THAT SUFFICIENT OPPORTUNITY WAS AFFORDED TO THE APPELLANT AT THE AS SESSMENT STAGE. AS ALL THE EVIDENCE SUBMITTED BY THE APPELLANT ALONG WITH APPLICATION D ATED 06.09.2010 ARE RELEVANT TO THE ISSUES INVOLVED IN THE APPEAL, THEREFORE, IN THE IN TEREST OF NATURAL JUSTICE THOSE ARE ADMITTED UNDER RULE 46A OF THE INCOME TAX RULES, 19 62. FROM THE FINDINGS AS RECORDED BY THE LEARNED CIT(A) , WE DO NOT FIND THAT HE HAS RECORDED ANY REASONS FOR ADMISSION OF ADDITIONA L EVIDENCES AND THEREFORE, WE DEEM IT APPROPRIATE TO REMIT THE APPEALS TO LEAR NED CIT(A) WHO SHOULD PASS A SPEAKING ORDER FOR ADMISSION OF ADDITIONAL EVIDEN CES AND PASS A FRESH ORDER 4. ITA NO.35 8 (ASR)/2011 & ITA NO. 131(ASR)/2014 ASST. YE AR 2007-08 & 2009-10 ON MERITS ACCORDINGLY. THE ORDERS WERE PRONOUNCED I N THE OPEN COURT AT THE CONCLUSION OF HEARING ITSELF. SUCH ORDER AS PRONOU NCED ORALLY IN THE OPEN COURT, ARE PRONOUNCED IN WRITING ON THIS DATE. ORDER PRONOUNCED IN THE OPEN COURT ON 9 TH SEPTEMBER, 2015. SD/- SD/- (A.D. JAIN) (T. S. KAPOOR) JUDICIAL MEMBER ACCOUNTA NT MEMBER DATED:09.09. 2015 /PK/ PS. COPY OF THE ORDER FORWARDED TO: 1. THE ASSESSEE: SH. HARNEET SINGH 2. THE INCOME TAX OFFICER, WARD -1, PHAGWARA 3. THE CIT(A), 4. THE CIT, 5. THE SR DR, I.T.A.T., TRUE COPY BY ORDER (ASSISTANT REGISTRAR) INCOME TAX APPELLATE TRIBUNAL, AMRITSAR BENCH: AMRITSAR.