ACIT CEN CIR 20, MUMBAI V. SAMRAT NAGI, MUMBAI

ITA 4017/MUM/2012

• Counselvise Citation: 401719914 RSA 2012
• Duration Of Justice: 1 year(s) 4 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-10-2013
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: E
• Next Hearing Date: 15-10-2013
• Assessment Year: 2003-2004
• Appeal Filed On: 07-06-2012
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: GIRIJA DAYAL
• Keywords: Unexplained cash credit; Gift; Additional evidence
• Section: 143(3); 153A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, MUMBAI BENCH E , MUMBAI BEFORE SHRI P.M. JAGTAP , ACCOUNTANT MEMBER AND DR. S.T.M. PAVALAN, JUDICIAL MEMBER ITA NO. 4017/MUM/2012 ASSESSMENT YEAR: 2003 - 04 DCIT CENT. CIR - 20, ROOM NO. 402, 4 TH FLOOR, AAYAKAR BHAVAN, M.K. ROAD MUMBAI - . 20 VS. SHRI SAMRAT NAGI FLAT NO. 602 - B, FORESHORE APTS. JUHU TARA ROAD SANTACRUZ WEST, MUMBAI. 400 049 PAN: ACFPN 9986 M (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI JAYES H DADIA REVENUE BY : SHRI GIRIJA DAYAL DATE OF HEARING : 15.10.2013 DATE OF PRONOUNCEMENT : 30 .10 .2013 O R D E R PER DR . S.T.M. PAVALAN , J M: THIS APPEAL FILED BY THE REVENUE IS DIRECTED AGAINST THE ORDER OF THE LD.CIT(A) - 39, MUMBAI DATED 01.03 .2012, FOR THE ASSESSMENT YEAR 2003 - 04. 2. IN THIS APPEAL THE REVENUE HAS AGITATED THE ACTION OF THE LD.CIT(A) IN ACCEPTING THE ADDITIONAL EVIDENCES FILED BY THE ASSESSEE IN CONTRAVENTION OF RULE 46A(3) OF THE INCOME TAX ACT RULES , 1 962 THEREBY DIRECTING THE AO TO DELETE THE ADDITION OF RS.11,70,958/ - OUT OF TOTAL ADDITION OF RS.12,31,533/ - . 3. BRIEFLY STATED , THE ASSESSEE , AN INDIVIDUAL DERIVED INCOME FR OM SALARY AND OTHER SOURCES HAD DECLARED A TOTAL INCOME OF RS.42,849/ - DURING TH E YEAR UNDER CONSIDERATION. IN TH E ASSESSMENT FRAMED U/S 143(3) R.W.S 153A OF THE ACT, T HE AO OBSERVED FROM THE BANK ACCOUNT NO. 22310428099 THAT AN AMOUNT OF RS.6,00,533/ - AND FROM THE BANK ACCOUNT NO. 0191000143963 OF THE HDFC BANK THAT AN AMOUNT OF RS.6 ,31,000/ - HAD BEEN DEPOSITED IN THE CURRENT YEAR. AS THE ASSESSEE HAD FAILED ITA NO. 4017/MUM/2012 SHRI SAMRAT NAGI ASS ESS MENT YEAR : 2003 - 04 2 TO EXPLAIN THE SOURCE OF DEPOSIT S , THE AO TREATED THE DEPOSITS AS UNEXPLAINED CASH CREDITS AND THEREBY ADDED THE SAME TO THE TOTAL INCOME OF THE ASSESSEE. ON APPEAL , THE LD.CIT(A) BY RELYING ON VARIOUS ADDITIONAL EVIDENCES, NAMELY , A GIFT DEED FROM HIS MOTH ER, DETAILS OF PROFESSIONAL FEE S, DETAILS OF CLOSURE OF FD IN STANDARD CHARTERED BANK ETC, DELETED THE ADDITION TO THE EXTENT OF 11,70,958/ - . A GGRIEVED BY THE IMPUGNED ORDER , R EVENUE HAS FILED THIS APPEAL BEFORE US. 4. HAVING HEARD BOTH THE SIDES AND PERUSED THE MATERIAL ON RECORD , IT I S OBSERVED THAT THE LD.CIT(A) HAS RELIED ON VARIOUS ADDITIONAL EVIDENCES FOR DELETING THE IMPUGNED ADDITION S MADE BY THE AO. HOWEVER, IN THE PRO CESS OF DOING SO , THE AO HAS NOT BEEN ALLOWED REASONABLE OPPORTUNITY TO EXAMINE THE EVIDENCE S PRODUCED BY THE ASSESSEE, WHICH IS IN VIOLATION OF THE M ANDATORY REQUIREMENT OF RULE 46A(3) OF THE INCOME TAX RULES , 1962 FOR ADMITTING ADDITIONAL EVIDENCES BY TH E LD.CIT(A). IN VIEW OF THAT MATTER, WE ARE OF THE CONSIDERED OPINION THAT IT WOULD BE JUST A ND PROPER TO SET ASIDE THE ORDER OF THE LD.CIT(A) BY REMITTING BACK THE MATTER TO THE FILE OF AO TO FRAME THE ASSESSMENT AFRESH AND PASS THE ASSESSMENT ORDER AFTE R GIVING A REASONABLE OPPORTUNITY BEING HEARD TO THE ASSESSEE PLACING ALL THE RECORDS TO SUBSTANTIATE HIS CLAIM. WE ORDER AND DIRECT ACCORDINGLY. 5. IN THE RESULT, THE APPEAL FILED BY THE REVENUE IS ALLOWED FOR STATISTICAL PURPOSE . ORDER PRONOUNCE D IN THE OPEN CO URT ON THIS 30 TH DAY OF OCTOBER , 2013. SD/ - SD/ - ( P.M. JAGTAP ) (DR. S.T.M. PAVALAN) ACCOUNTANT MEMBER JUDICIAL MEMBER MUMBAI, DATED: 30 . 10 . 2013. * S RIVASTAVA COPY TO: THE APPELLANT THE RESPONDENT THE CIT, CONCERNED, MUMBAI THE CIT(A) CONCERNED, MUMBAI THE DR E BENCH // TRUE COPY // BY ORDER DY/ASSTT. REGISTRAR, ITAT, MUMBAI.