Sh. Karanveer Singh Tiwana, Patiala V. ITO, Patiala

ITA 40/CHANDI/2014

• Counselvise Citation: 4021514 RSA 2014
• Duration Of Justice: 1 year(s) 11 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-12-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 26-11-2015
• Assessment Year: 2009-2010
• Appeal Filed On: 07-01-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S K MITTAL
• Section: 144

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH, CHANDIGARH BEFORE SHRI H.L.KARWA, VICE PRESIDENT AND MS. ANNAPURNA MEHROTRA, ACCOUNTAN MEMBER ITA NO. 40/CHD/2014 (ASSESSMENT YEAR: 2009-10) SH.KARANVEER SINGH TIWANA, VS. THE INCOME TAX OFF ICER, VILLAGE CHHANA, NATHUWALA, WARD 4, PATIALA. PATIALA. PAN NO. ATAPS8515K (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI AJAY JAIN RESPONDENT BY : SHRI S.K. MITTAL, D.R. DATE OF HEARING : 26.11.2015 DATE OF PRONOUNCEMENT : 08.12.2015 O R D E R PER H.L.KARWA, VP : THIS APPEAL FILED BY THE ASSESSEE IS DIR ECTED AGAINST THE ORDER OF THE LEARNED COMMISSIONER OF IN COME TAX (APPEALS), PATIALA DATED 24.10.2013 RELATING TO ASSESSMENT YEAR 2009-10. 2. IN THIS APPEAL, THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS : 1. THAT THE LEARNED C.I.T. (A) PATIALA HAS WRONGLY UPHELD THE ORDER OF ASSESSING OFFICER WHICH HAS BEEN PASSED U/ S 144 OF INCOME TAX ACT WITHOUT AFFORDING REASONABLE OPPOR TUNITY OF BEING HEARD TO APPELLANT & THEREFORE IT IS PRAYED THAT THE ORDER 2 OF ASSESSING OFFICER BE SET ASIDE & RESTORE THE MAT TER TO THE FILE OF ASSESSING OFFICER FOR FRESH ADJUDICATI ON AFTER AFFORDING REASONABLE OPPORTUNITY TO APPELLANT TO EXPLAIN TH E DEPOSITS IN BANK ACCOUNTS. 2. THAT THE LEARNED C.I.T. (A) PATIALA HAS WRONGLY DISMISSED THE APPEAL WITHOUT APPRECIATING THE FACT THAT NO O PPORTUNITY TO EXPLAIN THE DEPOSIT HAS BEEN GIVEN TO APPELLANT. & ALSO ERRED BY NOT DECIDING THE ISSUES/ GROUNDS ON MERITS OF THE C ASE. 3. THAT THE LEARNED COMMISSIONER OF INCOME TAX (APPEAL S) HAS ERRED IN CONFIRMING THE ADDITION OF RS 9415000/- ON ACCOUNT OF DEPOSITS IN BANK ACCOUNT WITHOUT APPRECIATING THE FACT THAT ADDITION ON ACCOUNT OF DEPOSITS IN BANK ACCOUNT HAVE BEEN MADE BY ID AO WI THOUT AFFORDING OPPORTUNITY TO APPELLANT. 4. THAT THAT THE LEARNED COMMISSIONER OF INCOME TAX ( APPEALS) HAS ERRED IN CONFIRMING THE ADDITION OF RS 9415000/- ON ACCOUNT OF DEPOSITS IN BANK ACCOUNT WITHOUT CONSIDERING THE WITHDRAWAL FRO M THE BANK ACCOUNTS & SOURCES . 3. BRIEFLY STATED THE FACTS OF THE CASE ARE THAT T HE ASSESSING OFFICER FRAMED ASSESSMENT UNDER SECTION 1 44 OF THE INCOME TAX ACT, 1961 (IN SHORT THE ACT) ON 23.12.2011, WHEREIN HE MADE AN ADDITION OF RS.94,15,000/- ON THE BASIS OF AIR INFORMATION, WHI CH REVEALED THAT THE ASSESSEE HAD CASH DEPOSITS OF RS.94,15,000/- WITH CENTURION BANK OF PUNJAB AND AX IS BANK, PATIALA. THE ASSESSING OFFICER ADDED THE ABO VE SUMS TO THE TOTAL INCOME OF THE ASSESSEE. 4. AGGRIEVED BY THE ORDER OF THE ASSESSING OFFICER , THE ASSESSEE FILED AN APPEAL BEFORE THE LEARNED CIT (APPEALS) AND RAISED THE FOLLOWING GROUNDS : 3 2. THAT THE ASSESSMENT MADE BY THE ID. A.O. IS WARRED BY LIMITATION AS NO NOTICE TO INITIATE PROCEEDING WAS SERVED UPON THE A SSESSEE WITHIN THE STIPULATED PERIOD AS SUCH ASSESSMENT PROCEEDING S MAY KINDLY BE ANNULLED. 3. THAT THE ASSESSING OFFICER WAS NOT JUSTIFIED WHILE MAKING THE ADDITION OF RS.94,15,000/- AS THE SAID AMOUNT NEITHER CONFRONTE D TO THE ASSESSEE NOR GIVEN ANY OPPORTUNITY TO THE ASSESSEE. 5. THE LEARNED CIT (APPEALS) DISMISSED THE APPEAL OF THE ASSESSEE VIDE HIS ORDER DATED 24.10.2013, AN D HENCE THE ASSESSEE IS IN APPEAL BEFORE THE TRIBUNAL . 6. WE HAVE HEARD THE RIVAL SUBMISSIONS. AT THE VERY OUTSET, SHRI AJAY JAIN, LEARNED COUNSEL FOR TH E ASSESSEE SUBMITTED THAT THE LEARNED CIT (APPEALS) H AS NOT CONSIDERED AND DECIDED GROUND NO.3 OF THE APPEAL, W HICH WAS RAISED BY THE ASSESSEE BEFORE HIM. HE, THEREFO RE, SUBMITTED THAT THE IMPUGNED ORDER MAY BE SET ASIDE AND THE MATTER BE RESTORED TO THE FILE OF THE LEARNED C IT (APPEALS) WITH THE DIRECTION TO DECIDE THE ISSUE RA ISED BY THE ASSESSEE VIDE GROUND NO.3 OF THE APPEAL FILED B EFORE HIM. IT IS TRUE THAT WHILE PASSING THE IMPUGNED OR DER, THE LEARNED CIT (APPEALS) HAS NOT ADJUDICATED GROUND NO .3 OF THE APPEAL OF THE ASSESSEE. ACCORDINGLY, WE SET AS IDE THE ORDER OF THE LEARNED CIT (APPEALS) AND REMAND THE M ATTER TO HIM WITH A DIRECTION TO DECIDE THE ISSUE RAISED BY THE ASSESSEE VIDE GROUND NO.3 OF THE APPEAL IN ACCORDAN CE WITH LAW AFTER AFFORDING DUE AND REASONABLE OPPORTU NITY OF BEING HEARD TO THE ASSESSEE. 4 7. WE ALSO DIRECT THE LEARNED CIT (APPEALS) TO DECIDE THE MATTER PREFERABLY WITHIN FOUR MONTHS FRO M THE DATE OF RECEIPT OF THE COPY OF THIS ORDER. 8. FOR STATISTICAL PURPOSES, THE APPEAL OF THE ASSESSEE IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 8 TH DAY OF DECEMBER, 2015. SD/- SD/- (ANNAPURNA MEHROTRA) (H.L.KARWA) ACCOUNTANT MEMBER VICE PRESIDENT DATED : 8 TH DECEMBER, 2015 *RATI* COPY TO: THE APPELLANT/THE RESPONDENT/THE CIT(A)/THE CIT/THE DR. ASSISTANT REGISTRAR, ITAT, CHANDIGARH