RANESH SINHA, PATNA V. ACIT, CIRCLE-5, PATNA

ITA 41/PAT/2020

• Counselvise Citation: [2022] 105 COUNSELVISE.COM (IT) 8508 (ITAT-PATNA)
• Duration Of Justice: 1 year(s) 8 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-02-2022
• Appeal Filed By: Assessee
• Order Result: PartlyAllowed
• Bench Allotted: DB
• Assessment Year: 2011-2012
• Appeal Filed On: 08-06-2020
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Period of limitation; Cost of acquisition; Set aside
• Section: 250

Judgement Text

आयकर अपीलȣय अͬधकरण, “पटना“ Ûयायपीठ पटना । IN THE INCOME TAX APPELLATE TRIBUNAL “PATNA” BENCH, PATNA (Heard from Kolkata Benches through web-based video conferencing platform) ] ] BEFORE SHRI RAJPAL YADAV, VICE PRESIDENT AND SHRI RAJESH KUMAR, ACCOUNTANT MEMBER ITA No. 41/Pat/2020 Assessment Year : 2011-12 Ranesh Sinha C/o Pankaj Kr. Singh, Luxmi Complex, Boring Road Patna - 800001 PAN : AGPPS 6951 D Vs ACIT, Circle-5, Patna अपीलाथȸ/ (Appellant) Ĥ× यथȸ/ (Respondent) Assessee by : Shri D.V. Pathy, Advocate Revenue by : Shri Sanjay Mukherjee, CIT, D/R स ु नवाई कȧ तारȣख/Date of Hearing : 17/02/2022 घोषणा कȧ तारȣख /Date of Pronouncement: 21/02/2022 आदेश/O R D E R PER RAJPAL YADAV, VICE PRESIDENT : The present appeal is directed at the instance of the assessee against the order of the learned Commissioner of Income Tax (Appeals), Patna-2 dated 14/01/2020, passed under Section 250 of the Income Tax Act, 1961 (in short “the Act”), for Assessment Year 2011-12. 2. This appeal was presented before the Tribunal on 9 th June, 2020. It ought to have been filed within sixty (60) days of receipt of the order but it is time barred by seventy two (72) days. Before the expiry of limitation to file an appeal before the Tribunal, a lockdown was imposed in the country on account of Covid situation and the Hon’ble Supreme Court extended the period of limitation. Therefore, practically this appeal is not time barred. ITA No. 41/Pat/2020 Assessment Year : 2011-12 Ranesh Sinha 2 3. The assessee has taken eleven (11) grounds of appeal which are not in consonance with Rule 8 of the ITAT Rules. Rather, they are descriptive and argumentative in nature. In brief, the grievance of the assessee is that the ld. CIT(A) has erred in upholding the assessment order in an ex-parte assessment. It emerges out from the record that the assessee has filed his return of income on 29/07/2011 declaring total income at Rs.39,61,620/- and the assessment order was passed on 29/03/2014 whereby taxable income of the assessee has been determined at Rs.78,48,130/-. The Assessing Officer has made three additions, namely, (a) Rs.30,94,000/- on account sale of immovable property; (b) Rs.7,78,880/- on account of unexplained expenditure incurred through credit card & (c) Rs.13,631/- on account of difference between the salary income declared by the assessee vis-à-vis available in Form No. 26AS. 4. With the assistance of the ld. representatives, we have gone through the record carefully. It emerges out from the record that the Assessing Officer while making the addition of Rs.30,94,000/- on account of sale of property, he added the total sale consideration in the absence of details submitted by the assessee for earning capital gain. We are of the view that if the assessee failed to submit such details, then the Assessing Officer could have called for the sale deed from the local registrar where the sale deed was registered and could have easily worked out the cost of acquisition or estimated it but under any law he cannot add back the total sale consideration in the income of the assessee. Similarly, payments made through credit card in case of salaried employees cannot be treated as unexplained expenditure. Without appreciating this issue in right perspective, the Assessing Officer has made the addition. On appeal, the additions have been confirmed without taking into consideration any information available on record. Though the ld. First ITA No. 41/Pat/2020 Assessment Year : 2011-12 Ranesh Sinha 3 Appellate Authority has granted number of opportunities to the assessee but the assessee did not participate in the proceedings. At the end he has only submitted written submissions on the date of hearing fixed on 06/09/2016. 5. On due consideration of the above facts, we are of the view that there is no judicious application of mind at the end of both the lower authorities. Rather they have appreciated the details as if to punish the assessee for his non-appearance. Even under the best judgment assessment, the Assessing Officer was supposed to peruse all the relative information in his possession. Appreciating all these facts and circumstances with the above angle, we deem it proper to set aside the impugned orders and restore these issues to the file of the Assessing Officer for re-adjudication. It is needless to say that observations made by us will not impair or injure the case of Assessing Officer or would not cause any prejudice to the defence/explanation of the assessee. The assessee will be at liberty to submit any explanation in his defence and produce any evidence. The Assessing Officer shall readjudicate all these issues after providing due opportunities of hearing to the assessee. The assessee is directed to cooperate with the Assessing Officer. 6. In the result, appeal of the assessee is treated as allowed for statistical purposes. Order pronounced in the Court on 21 st February, 2022 at Kolkata. Sd/- Sd/- (RAJESH KUMAR) (RAJPAL YADAV) ACCOUNTANT MEMBER VICE-PRESIDENT Kolkata, Dated 21/02/2022 *SC SrPs ITA No. 41/Pat/2020 Assessment Year : 2011-12 Ranesh Sinha 4 आदेश कȧ ĤǓतͧलͪप अĒेͪषत/Copy of the Order forwarded to : 1. अपीलाथȸ / The Appellant 2. Ĥ×यथȸ / The Respondent 3. संबंͬधत आयकर आय ु Èत / Concerned Pr. CIT 4. आयकर आय ु Èत)अपील (/ The CIT(A)- 5. ͪवभागीय ĤǓतǓनͬध ,आयकर अपीलȣय अͬधकरण,राजोकट/DR,ITAT, Kolkata, 6. गाड[ फाईल /Guard file. आदेशान ु सार/ BY ORDER, TRUE COPY Sr. Private Secretary/DDO आयकर अपीलȣय अͬधकरण ITAT, Patna 1. Date of dictation- 18/01/2022 2. Date on which the typed draft is placed before the Dictating Member 21/02/2022 Other member 21/02/2022 3. Date on which the approved draft comes to the Sr.P.S./P.S. - 21/02/2022 4. Date on which the fair order is placed before the Dictating Member for Pronouncement 21/02/2022 5. Date on which the file goes to the Bench Clerk 21/02/2022 6. Date on which the file goes to the O.S. .................................. 7. The date on which the file goes to the Assistant Registrar for signature on the order..................... 8. Date of Despatch of the Order......................