Sri Nilanjan Mukkherjee, Bhubaneswar V. ITO, Ward-1, Bhubaneswar

ITA 424/CTK/2017

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 5303 (ITAT-CUTTACK)
• Duration Of Justice: 1 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-12-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2013-2014
• Appeal Filed On: 01-11-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Unexplained cash credit; Unexplained expenditure; Opportunity of being heard

Judgement Text

, . . , IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH CUTTACK BEFORE SHRI N.S.SAINI, ACCOUNTANT MEMBER ./ ITA NO. 424 / CTK /20 1 7 ( / ASSESSMENT YEAR : 20 1 3 - 20 1 4 ) SRI NILANJAN MUKHAERJEE, C - 79, P ALLASAPALLI, BHUBANESWAR - 751020 VS. ITO, WARD - 2(1) BHUBANESWAR ./ ./ PAN/GIR NO. : A CZPM 7640 R ( / APPELLANT ) .. ( / RESPONDENT ) /ASSESSEE BY : SHRI P.R.MOHANTY, AR /REVENUE B Y : SHRI D.K.PRADHAN , DR / DATE OF HEARING : 28 / 1 2 /201 7 / DATE OF PRONOUNCEMENT 28 / 12 /201 7 / O R D E R TH IS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF THE CIT(A) - 1 , BHUBANESWAR , DATED 2 4 .8.201 7 . 2. IN THIS APPEAL THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS : - 1. FOR THAT, THE ORDER OF THE FORUM BELOW IS ARBITRARY, ILLEGAL, UNJUSTIFIED AND ERRONEOUS AND HAS BEEN PASSED ON IMPROPER APPLICATION OF MIND, BEING DEVOID OF MERIT AS SUCH DESERVES TO BE QUASHED IN LIMINE. 2 FOR THAT, THE ADDITION OF RS 70,839/ - TO THE TOTAL INCOME TOWARDS UNEXPLAINED CASH CREDIT DESERVES TO BE DELETED BEING UNWARRANTED, UNJUSTIFIED & UNSUSTAINABLE IN VIEW OF THE FACTS OF THE CASE. 3. FOR THAT, THE DISALLOWANCE OF E XPENDITURE ADDED TO THE INCOME TOWARDS UNEXPLAINED EXPENDITURE AMOUNTING TO RS. 6,15,019/ - DESERVES TO BE ALLOWED ON THE GROUND THAT, THE EXPENDITURE IS EXPENDED EXCLUSIVELY FOR THE BUSINESS HAVING INTRINSIC AND INSEGGREGABLE NEXUS WITH THE WORK UNDERTAKEN BEING SOLELY FOR THE BUSINESS HAS TO BE ALLOWED 4. FOR THAT, THE APPELLANT CRAVES LEAVE TO ADD/ALTER/AMEND FURTHER GROUNDS, IF ANY, AT THE TIME OF HEARING OF APPEAL. 3. AT THE OUTSET, LD A.R. OF THE ASSESSEE SUBMITTED THAT CIT(A) DISMISSED THE ASSESSEE 'S APPEAL EX PARTE, FOR NON - PROSECUTION QUA THE ASSESSEE, WITHOUT ASSIGNING ANY REASON. ACCORDING TO HIM, THE ORDER ITA NO. 424 /CTK/201 7 2 PASSED BY THE CIT(A) BEING A NON - SPEAKING ORDER, CANNOT STAND IN THE EYE OF LAW. HE PRAYED THAT THE ORDER OF CIT(A) MAY BE SET ASIDE WITH A DIRECTION TO HIM TO DECIDE THE GROUNDS OF APPEAL TAKEN BEFORE HIM, ON MERIT BY PASSING A REASONED ORDER, AFTER HEARING THE ASSESSEE. 4. LD D.R. SUPPORTED THE ORDER OF THE CIT(A). 5. AFTER CONSIDERING THE RIVAL SUBMISSIONS AND PERUSING THE ORDER OF THE CIT( A), WE FIND THAT THE CIT(A) IN HIS ORDER HAS OBSERVED THAT THERE WAS NO COMPLIANCE BY THE ASSESSEE ALTHOUGH VARIOUS OPPORTUNITIES WERE GIVEN TO THE ASSESSEE TO APPEAR BEFORE HIM ON 27.4.2017, 7.8.2017 & 23.8.2017 AND HENCE, HE HAS DISMISSED THE APPEAL OF T HE ASSESSEE FOLLOWING THE DECISION OF THE DELHI IN THE CASE OF CIT VS. MULTIPLAN INDIA (P)LTD., 38 ITD 320 AND OTHER JUDICIAL PRONOUNCEMENTS. W E FIND FORCE IN THE CONTENTION OF THE LEARNED COUNSEL FOR THE ASSESSEE THAT THE CIT(A) HAS SIMPLY DISMISSED THE A PPEAL FOR NON - PROSECUTION QUA THE ASSESSEE, WITHOUT ASSIGNING ANY REASON. THE ORDER OF THE LEARNED CIT(A) BEING A NON - SPEAKING ORDER, THE SAME IS SET ASIDE AND THE MATTER IS RESTORED BACK TO HIS FILE WITH THE DIRECTION TO PASS A REASONED ORDER IN ACCORDANC E WITH LAW, AFTER AFFORDING REASONABLE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. 6. SINCE WE HAVE REMITTED THE MATTER TO THE FILE OF THE CIT (A) FOR DECIDING AFRESH, OTHER GROUNDS RAISED IN THE APPEAL ON MERITS OF THE CASE ARE INFRUCTUOUS. 7. IN THE RESU LT, APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ITA NO. 424 /CTK/201 7 3 ORDER PRONOUNCED IN THE OPEN COURT ON THIS 28 / 12 /201 7 . SD/ - (N. S. SAINI) / ACCOUNTANT MEMBER CUTTACK ; DATED 28 / 12 /201 7 . . / PKM , SENIOR P RIVATE SECRETARY / COPY OF THE ORDER FORWARDED TO : / BY ORDER, ( SENIOR PRIVATE SECRETARY ) , / ITAT, CUTTACK 1. APPELLANT - 2. / THE RESPONDENT - ITO, WARD - 2(1), BHUBANESWAR 3. ( ) / THE CIT(A), 4. / CIT 5. , , / DR, ITAT, CUTTACK 6. / GUARD FILE. //TRUE COPY//