Sukumar Shaw, Howrah V. ITO, Ward-48(3), Kolkata, Kolkata

ITA 396/KOL/2017

• Counselvise Citation: [2018] 121 COUNSELVISE.COM (IT) 9848 (ITAT-KOLKATA)
• Duration Of Justice: 1 year(s) 6 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-09-2018
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: C
• Assessment Year: 2013-2014
• Appeal Filed On: 27-02-2017
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: SAURABH KUMAR
• Assessee Lawyers: NIRANJAN SATPATI
• Keywords: Source of fund; Additional evidence
• Section: 144

Judgement Text

ITA NO.396/KOL/2017 SUKUMAR SHAW A.Y.2013-14 1 IN THE INCOME TAX APPELLATE TRIBUNAL, C BENCH KO LKATA [BEFORE HONBLE SHRI J.SUDHAKAR REDDY, AM & SMT. MADHUMITA ROY, JM ] ITA NO.396/KOL/2017 ASSESSMENT YEAR : 2013-14 SUKUMAR SHAW -VERSUS- I.T.O., WARD-48(3) KOLKATA KOLKATA (PAN: APJPS 1157 C) (APPELLANT) (RESPONDENT) FOR THE ASSESSEE: SHRI NIRANJAN SATPATI, ADVOCA TE FOR THE DEPARTMENT : SHRI SAURABH KUMAR, ADDL. CIT, SR.DR DATE OF HEARING : 11.09.2018 DATE OF PRONOUNCEMENT : 26.09.2018. ORDER PER MADHUMITA ROY, JM THE INSTANT APPEAL HAS BEEN FILED BY THE ASSESSEE A GAINST THE ORDER DATED 31.12.2016 PASSED BY THE LD. CIT(A)-14, KOLKATA A RISING OUT OF THE ORDER DATED 11.03.2016 PASSED BY THE I.T.O., WARD-48(3) KOLKAT A FOR A.Y.2013-14. 2. THE ASSESSEE HAS ALSO FILED REVISED GROUNDS OF APPEAL WITH THE REVISED STATEMENT OF FACTS BEFORE US. THE REVISED GROUNDS ARE AS FOLL OWS :- 1. FOR THAT, ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE LD. CIT (APPEALS)-14/KOLKATA ERRED AND NOT JUSTIFIED IN PAS SING HIS ORDER DATED 31/12/2016 CONFIRMING THE ORDER OF THE A.O. WITHOUT CONSIDERING THE WRITTEN SUBMISSION OF THE APPELLANT AND WITHOUT GIVING OPPO RTUNITY TO THE APPELLANT TO PRODUCE EVIDENCES AND DETAILS OF THE SOURCES OF FUN D FOR ACQUIRING THE IMMOVABLE PROPERTY MENTIONED IN THE ORDER OF ASSESSMENT. 2. FOR THAT, ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE LD. CIT (APPEALS)-14/KOLKATA, ERRED AND NOT JUSTIFIED IN CO NFIRMING THE ORDER OF THE A.O.' PASSED U/S 144 OF THE I.T. ACT, 1961, WHICH WAS PAS SED BY THE A.O. WITHOUT GIVING SUFFICIENT OPPORTUNITY BEING HEARD TO THE APPELLANT TO EXPLAIN HIS RETURN WITH DOCUMENTS AND DETAILS REGARDING THE SOURCES OF FUND S OF THE APPELLANT FOR ACQUIRING THE IMMOVABLE PROPERTY MENTIONED IN THE O RDER OF ASSESSMENT. ITA NO.396/KOL/2017 SUKUMAR SHAW A.Y.2013-14 2 3. FOR THAT, ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE LD. CIT (APPEALS)-14/KOLKATA, ERRED AND NOT JUSTIFIED IN CO NFIRMING THE UNLAWFUL ORDER OF THE A.O. PASSED U/S 144 OF THE I.T. ACT, 1961, WHEN THE APPELLANT DID NOT RECEIVE ANY NOTICE ISSUED U/S 142( 1) OF THE I T ACT AND / OR LETTERS BY THE A.O. ASKING FOR THE DETAILS, DOCUMENT AND EVIDENCES RELATING TO THE FUNDS USED FOR ACQUIRING THE IMMOVABLE PROPERTY BY THE APPELLANT IN THE F.Y. 201 2-13 RELEVANT TO THE ASSESSMENT YEAR 2013-14. 4. FOR THAT, ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE ORDER PASSED BY THE LD CIT (APPEALS)-14/KOLKATA ON 31/12/2016 AS WE LL AS THE ORDER PASSED BY THE A.O. IN THE CASE OF THE APPELLANT ARE BAD IN LA W. 5. FOR THAT, ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE THE ORDER PASSED BY THE LD CIT (APPEALS)-14/KOLKATA ON 31/12/2016 AS WE LL AS THE ORDER PASSED BY THE A.O. IN THE CASE OF THE APPELLANT DESERVE TO BE SET ASIDE AND APPROPRIATE RELIEF MAY BE GIVEN TO THE APPELLANT. 6. FOR THAT THE APPELLANT CRAVES LEAVE FOR ADDITION , ALTERATION/MODIFICATION AND DELETION IN THE GROUNDS OF APPEAL BEFORE THE HONOUR ABLE TRIBUNAL. 3. FURTHER THAT THE ASSESSEE HAS FILED AN APPLICATI ON FOR CONSIDERATION OF THE ADDITIONAL EVIDENCES IN SUPPORT OF HIS CLAIM. 4. THE BRIEF FACTS LEADING TO THIS CASE IS THIS THA T THE ASSESSEE DURING THE PREVIOUS YEAR RELEVANT TO A.Y.2013-14 HAD PURCHASED AN IMMOV ABLE PROPERTY BEING A FLAT MEASURING 840 SQ FT. FOR A CONSIDERATION OF RS.55 L AKHS ON 03.01.2013 AT KOLKATA. THE SAME WAS REGISTERED BEFORE THE OFFICE OF THE DISTRI CT SUB REGISTRAR, SOUTH 24 PARGANAS, WEST BENGAL. AN AMOUNT OF RS.20,50,000/- HAS BEEN P AID FROM THE ASSESSEES OWN FUND FOR PURCHASING THE SAID PROPERTY AND THE BALA NCE AMOUNT OF RS.34,50,000/- WAS PAID THROUGH HOUSING LOAN. THE REQUIRED STAMP DUTY AND REGISTRATION CHARGES WERE ALSO DULY PAID. THE VALUATION OF THE SAID PROPERTY WAS D ETERMINED AT RS.56,41,600/-. THE ENTIRE INVESTMENT IS REFLECTED IN THE BALANCE SHEET OF THE ASSESSEE AS ON 31.03.2013. 5. ADMITTEDLY THE ASSESSEE WORKING ABROAD AND ALL T HE DOCUMENTS RELATING TO THE SOURCE OF FUND FOR ACQUISITION OF THE SAID IMMOVABL E PROPERTY COULD NOT BE FURNISHED BEFORE THE AO ON THE DATE OF HEARING ON 20.10.2014. A SHOW CAUSE NOTICE WAS SENT TO HIM AS TO WHY THE ENTIRE AMOUNT OF RS.56,41,.600/- SHOULD NOT BE ADDED TO HIS INCOME ITA NO.396/KOL/2017 SUKUMAR SHAW A.Y.2013-14 3 WHEN NO REPLY COULD BE FURNISHED BY THE ASSESSEE BE FORE THE LD. AO. HOWEVER, IN THE ABSENCE OF THESE DOCUMENTS OR ANY DETAILED EXPLANAT ION ON THIS ISSUE A TOTAL ADDITION OF RS.56,41,600/- HAS BEEN MADE BY THE LD. AO AGAIN ST WHICH APPEAL WAS PREFERRED BEFORE THE LD. CIT(A). THE ASSESSEE DURING THE APPE LLATE PROCEEDINGS WAS UNABLE TO PROVIDE THE EVIDENCES TO SHOW THE SOURCE OF FUND TO JUSTIFY HIS BONA FIDE AND THEREFORE THE LD. CIT(A) CONFIRMED THE ADDITION MADE BY THE L D. AO. 6. BEFORE US THE ASSESSEE EXPLAINED HIS INABILITY T O PRODUCE THE RELEVANT DOCUMENTS IN SUPPORT OF HIS CLAIM TO SHOW THE SOURC E OF FUND WHICH IN OUR CONSIDERED VIEW IS SUFFICIENT TO PROVE HIS BONA FIDE. THE DOCU MENTS WERE ALSO PLACED BEFORE US BY WAY OF AN APPLICATION FOR ADDITIONAL EVIDENCES. AT THE TIME OF HEARING OF THE APPEAL THE LD. AR ARGUED BEFORE US FOR TAKING INTO CONSIDERATI ON OF THESE ADDITIONAL EVIDENCES FOR DISPOSING OF THE MATTER IN FAVOUR OF THE ASSESSEE. HE THUS PRAYS TO REMIT THE ISSUE TO THE FILE OF THE AO TO CONSIDER THESE DOCUMENTS FOR PROPER ADJUDICATION OF THE MATTER. HOWEVER, THE LD. DR RAISED NO OBJECTION TO THE ARGU MENT ADVANCED BY THE LD. AR. 7. HAVING HEARD THE LD. REPRESENTATIVE FOR THE PART IES AND HAVING REGARD TO THE RELEVANT MATERIALS AVAILABLE ON RECORD WE ARE OF TH E CONSIDERED OPINION THAT IN THE INTEREST OF JUSTICE THE ISSUE BE REMITTED TO THE FI LE OF THE LD. AO. WE THEREFORE SET ASIDE THE ORDERS PASSED BY THE AUTHORITIES BELOW AND DIRE CT THE LD. AO TO RECONSIDER THE ISSUE UPON GIVING A REASONABLE OPPORTUNITY TO THE ASSESSE E AND UPON CONSIDERING THE EVIDENCES ALREADY PLACED ON RECORD AND THE DOCUMENT S WHICH THE ASSESSEE MAY CHOOSE TO FILE AT THE TIME OF HEARING OF THE MATTER WHICH IS RELEVANT TO THE GERMANE OF THE ISSUE INVOLVED. 8. IN THE RESULT THE APPEAL OF THE ASSESSEE IS ALLO WED FOR STATISTICAL PURPOSES. O RDER PRONOUNCED IN THE COURT ON 26.09.2018. SD/- SD/- [J.SUDHAKAR REDDY] [ MADHUMITA ROY ] ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 26.09.2018. [RG SR.PS] ITA NO.396/KOL/2017 SUKUMAR SHAW A.Y.2013-14 4 COPY OF THE ORDER FORWARDED TO: 1. SUKUMAR SHAW, 14A, MANOHAR PUKUR ROAD, 3 RD FLOOR (3N), KOLKTA-700026. 2. I.T.O., WARD-48(3), KOLKATA. 3. C.I.T.(A)-14, KOLKATA. 4. C.I.T-16, KOLKATA 5. CIT(DR), KOLKATA BENCHES, KOLKATA. TRUE COPY BY ORDER, SENIOR PRIVATE SECRETARY ITAT KOLKATA BENCHES KOLKATA