ITO 24(2)(4), MUMBAI V. TERENCE CLEMENT MENEZES, MUMBAI

ITA 3835/MUM/2010

• Counselvise Citation: 383519914 RSA 2010
• Duration Of Justice: 1 year(s) 3 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-09-2011
• Appeal Filed By: Department
• Order Result: Partly Allowed
• Bench Allotted: E
• Next Hearing Date: 29-08-2011
• Assessment Year: 2006-2007
• Appeal Filed On: 12-05-2010
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: G P TRIVEDI
• Keywords: Unexplained investment; Additional evidence

Judgement Text

1 ITA 3835/ M/2010 SHRI TEREN CE VLEMENT MENEZES IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES E BEFORE SHRI N.V. VASUDEVAN, J.M. AND SHRI R.K. PAND A, A.M. ITA NO. 3835/MUM/2010 ASSESSMENT YEAR 2006-07 INCOME TAX OFFICER 24(2)(4), 6 TH FLOOR, C-13, PRATYAKSHAKAR BHAVAN, BANDRA-KURLA COMPLEX, BANDRA (E), MUMBAI - 51. VS. SHRI TERENCE CLEMENT MENEZES, C-702, NAZARENE APTS., MARVE ROAD, MALAD (W), MUMBAI. 95 PAN AGAPM 8626J APPELLANT RESPONDENT APPELLANT BY SHRI G.P. TRIVEDI RESPONDENT BY NONE DATE OF HEARING 29.8.2011 DATE OF PRONOUNCEMENT ORDER PER R.K. PANDA A.M. THIS APPEAL FILED BY THE REVENUE IS DIRECTED AGAIN ST THE ORDER DT. 23.02.2010 OF CIT(A)- 34, MUMBAI RELATING TO A.Y. 2006-07. 2. NONE APPEARED ON BEHALF OF THE ASSESSEE WHEN THE NA ME OF THE ASSESSEE WAS CALLED. THEREFORE, THE MATTER IS BEING DECIDED ON THE BASIS OF MATERIAL AVAILABLE ON RECORD AND AFTER HEARING THE LD. D.R. 2 ITA 3835/ M/2010 SHRI TEREN CE VLEMENT MENEZES 2. THE ONLY GROUND RAISED BY THE REVENUE READS AS U NDER:- ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE A ND IN LAW, THE LD. CIT(A) ERRED IN DELETING THE ADDITION MADE BY THE A .O. ON ACCOUNT OF UNEXPLAINED INVESTMENT. THE LD. CIT(A) ADMITTED TH E ADDITIONAL EVIDENCES SUBMITTED BY THE ASSESSEE DURING THE APPE LLATE PROCEEDINGS IN CONTRAVENTION TO RULE 46A. 5. FACTS OF THE CASE IN BRIEF ARE THAT THE ASSESSEE FILED HIS RETURN OF INCOME DECLARING TOTAL INCOME OF ` 2,46,430/-. DURING THE COURSE OF ASSESSMENT PROCEEDINGS, THE A.O. NOTED THAT THE ASSESSEE HAS P URCHASED UNITS IN FOLLOWING MUTUAL FUNDS:- 1. PRINCIPAL MUTUAL FUND ` 5,00,000/- 2. PRUDENTIAL ICICI MUTUAL FUND ` 4,00,000/- 3. TATA MUTUAL FUND ` 2,50,000/- SINCE THE ASSESSEE HAS NOT SHOWN ANY TRANSACTIONS O F ABOVE PURCHASES, THE A.O. ASKED THE ASSESSEE TO EXPLAIN THE SOURCE OF TH E ABOVE INVESTMENTS. IN ABSENCE OF ANY REPLY FROM THE ASSESSEE TILL THE DAT E OF COMPLETION OF ASSESSMENT, THE A.O. MADE ADDITION OF ` 11,50,000/- AS UNEXPLAINED INVESTMENT. 5.1 BEFORE THE LD. CIT(A), THE ASSESSEE SUBMITTED T HAT AT THE TIME OF ASSESSMENT HE WAS NOT PRESENT IN MUMBAI FOR WHICH H E COULD NOT FURNISH COMPLETE DETAILS AND THE ASSESSMENT WAS FINALIZED I N A HURRY BECAUSE IT WAS A TIME BARRING MATTER. THE ASSESSEE FILED A COPY OF BANK ACCOUNT AND OTHER SUPPORTING PAPERS AND SUBMITTED THAT THERE WAS SOME FACTUAL MISTAKE AND REDEMPTION OF ` 2,56,000/- HAS BEEN TREATED AS UNEXPLAINED INVESTM ENT. IT WAS ALSO ARGUED THAT ALL THE INVESTMENTS ARE ACCOUN TED FOR AND EXPLAINED AND REFLECTED IN BANK ACCOUNTS. ON THE BASIS OF THE AB OVE SUBMISSION, THE LD. CIT (A) DELETED THE ADDITION FOR WHICH THE REVENUE IS I N APPEAL BEFORE US. 3 ITA 3835/ M/2010 SHRI TEREN CE VLEMENT MENEZES 6. WE HAVE HEARD THE LD. D.R. AND PERUSED THE ORDER S OF THE AUTHORITIES BELOW. ADMITTEDLY, THE ASSESSEE DID NOT FILE THE N ECESSARY DETAILS BEFORE THE A.O. FOR WHICH THE A.O. MADE THE ADDITION OF ` 11,50,000/- AS UNEXPLAINED INVESTMENT. THE VARIOUS DETAILS FILED BEFORE THE L D. CIT(A) WERE NEVER CONFRONTED TO THE A.O. NOR THE A.O. WAS GIVEN AN OP PORTUNITY TO GO THROUGH THE SAME. THEREFORE, THERE IS A CLEAR VIOLATION OF PRO VISIONS OF RULE 46-A OF THE INCOME TAX RULES. UNDER THESE CIRCUMSTANCES WE ARE OF THE CONSIDERED OPINION THAT THE MATTER SHOULD GO BACK TO THE FILE OF THE A.O. WITH A DIRECTION TO GIVE ONE MORE OPPORTUNITY TO THE ASSESSEE TO EXP LAIN THE SOURCE OF INVESTMENT. THE ORDER OF THE LD. CIT(A) IS ACCORDI NGLY SET ASIDE AND THE APPEAL FILED BY THE REVENUE IS ALLOWED FOR STATISTICAL PUR POSE. 7. IN THE RESULT, THE APPEAL FILED BY THE REVENUE I S ALLOWED FOR STATISTICAL PURPOSE. ORDER PRONOUNCED ON 7 TH SEPTEMBER, 2011. SD/- SD/- (N.V. VASUDEVAN) (R.K. PANDA) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI, DATED 07.09.2011. RK COPY TO 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT(A) 34, MUMBAI 4. THE CIT 24, MUMBAI 5. THE DR BENCH, E 6. MASTER FILE // TUE COPY// BY ORDER 4 ITA 3835/ M/2010 SHRI TEREN CE VLEMENT MENEZES DY/ASSTT. REGISTRAR ITAT, MUMBAI DATE INITIALS 1 DRAFT DICTATED ON 30.8.11 SR. PS 2 DRAFT PLACED BEFORE THE AUTHOR 30.8.11 SR. PS 3 DRAFT PLACED BEFORE THE SECOND MEMBER 4 APPROVED DRAFT COMES TO THE SR. PS SR. PS 5 KEPT FOR PRONOUNCEMENT ON SR. PS 6 FILE SENT TO THE BENCH CLERK SR. PS 7 DATE ON WHICH FILE GOES TO THE HEAD CLERK 8 DATE ON WHICH FILE GOES TO THE AR 9 DATE OF DISPATCH OF ORDER