Arbind Kumar Sinha, V. ITO, Ranchi

ITA 45/RAN/2015

• Counselvise Citation: [2015] 134 COUNSELVISE.COM (IT) 0347 (ITAT-RANCHI)
• Duration Of Justice: 7 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-10-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2006-2007
• Appeal Filed On: 13-03-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: CHOUDHARY ORAON
• Assessee Lawyers: V K JALAN
• Keywords: Unexplained cash credit; Unexplained investment
• Section: 68

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL RANCHI CIRCUIT BENCH, RANCHI BEFORE SHRI N.S. SAINI, HONBLE ACCOUNTANT MEMBER AND SHRI GEORGE MATHAN, HONBLE JUDICIAL MEMBER ITA NO. 45/RAN/2015 (ASST. YEAR : 2006-07) ARBIND KUMAR SINHA (HUF), FLAT NO. 302, LAKE GARDEN APARTMENT, KANKE ROAD, RANCHI. VS. ITO, WARD-1(2), RANCHI. PAN NO. AAGHA 9927 A (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI V.K. JALAN FCA DEPARTMENT BY : SHRI CHOUDHARY ORAON - DR DATE OF HEARING : 28/10/2015. DATE OF PRONOUNCEMENT : 28/10/2015. O R D E R PER N.S. SAINI, ACCOUNTANT MEMBER THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST TH E ORDER OF COMMISSIONER OF INCOME TAX (APPEALS), RANCHI, DATED 06/02/2015. 2. THE SOLE ISSUE INVOLVED IN THIS APPEAL IS THAT TH E COMMISSIONER OF INCOME TAX (APPEALS) ERRED IN CONFIRMING THE ADDITI ON OF RS.11,46,000/- AS UNEXPLAINED INVESTMENT IN THE BAN K ACCOUNT. 3 . WE HAVE HEARD RIVAL SUBMISSIONS AND PERUSED THE O RDERS OF THE LOWER AUTHORITIES AND THE MATERIALS AVAILABLE ON RE CORD. THE ASSESSING OFFICER OBSERVED THAT THE ASSESSEE HAS MADE CASH DE POSITS OF RS.11,46,000/- IN THE BANK ACCOUNT NO. 003049177100 1 WITH INDUS IND BANK, RANCHI ON VARIOUS DATES DURING THE PREVIOUS Y EAR RELEVANT TO THE 2 ITA NO. 45/RAN/2015 ASSESSMENT YEAR 2006-07. THE ASSESSING OFFICER REQ UIRED THE ASSESSEE TO EXPLAIN THE SOURCE OF CASH DEPOSIT. THE ASSESSI NG OFFICER FURTHER OBSERVED THAT THE ASSESSEE HAD NOT ENCLOSED BALANCE SHEET FOR THE ASSESSMENT YEARS 2005-06 AND 2006-07 WITH THE RETUR NS OF INCOME. THEREFORE, HE HAD NO OCCASION TO VERIFY THE INFORMA TION DISCLOSED TO THE DEPARTMENT FOR SALE OF AGRICULTURAL LAND ALONG WITH CASH AND BANK BALANCE OF RS. 18,49,347/-. THE ASSESSING OFFICER ALSO REQUIRED THE ASSESSEE TO FURNISH THE EVIDENCE OF FAMILY SETTLEME NT AND SALE OF ANCESTRAL PROPERTY IN BIHAR SHARIF SUCH AS SALE AGR EEMENT, SALE DEED ETC. THE ASSESSEE FAILED TO FURNISH THE SAME. IN VIEW OF THE ABOVE FACTS, THE ASSESSING OFFICER DID NOT ACCEPT THE CON TENTION OF THE ASSESSEE THAT CASH DEPOSIT WAS OUT OF THE SALE PROC EEDS OF ANCESTRAL PROPERTY AND HE TREATED THE DEPOSIT IN THE BANK AS UNEXPLAINED CASH CREDIT UNDER SECTION 68 OF THE I.T. ACT, 1961. 4. AGGRIEVED BY THE SAID ORDER, THE ASSESSEE FILED AP PEAL BEFORE THE COMMISSIONER OF INCOME TAX (APPEALS). WE FIND FRO M THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS) THAT THE CASE WAS FIXED FOR HEARING BY HIM ON 11/12/2013 AND NOTICE FOR THE SAM E WAS SENT TO THE ASSESSEE ON 27/11/2013 WHICH WAS SERVED ON THE ASSE SSEE ON 05/12/2013. THE ASSESSEE FAILED TO COMPLY WITH THE SAME. THE COMMISSIONER OF INCOME TAX (APPEALS) RE-FIXED THE H EARING ON 12/12/2014 AND THE NOTICE OF HEARING WAS SENT ON 03 /12/2014 AND SERVED UPON THE ASSESSEE ON 05/12/2014. THE ASSESS EE FAILED TO COMPLY WITH THE SAME. HE AGAIN RE-FIXED THE HEARIN G ON 12/01/2015 VIDE NOTICE DATED 15/12/2014 WHICH WAS SERVED ON TH E ASSESSEE ON 19/12/2014. THE ASSESSEE FAILED TO APPEAR ON THE S AID DATE OF HEARING ALSO, THEREFORE COMMISSIONER OF INCOME TAX (APPEALS ) CONFIRMED THE ADDITION MADE BY THE ASSESSING OFFICER OBSERVING TH AT IN SPITE OF SO MANY NOTICES, THE ASSESSEE FAILED TO APPEAR BEFORE HIM AND ACCORDINGLY, HE HELD THAT THERE IS NO CAUSE FOR INTERFERENCE WIT H THE ORDER OF THE 3 ITA NO. 45/RAN/2015 ASSESSING OFFICER MAKING THE ADDITION OF RS. 11,46, 000/- AND DISMISSED THE APPEAL OF THE ASSESSEE. 6 . AUTHORIZED REPRESENTATIVE OF THE ASSESSEE SUBMITT ED THAT THE ASSESSEE HAS A GOOD CASE AND HAS ALL THE EVIDENCES TO PROVE THE DEPOSIT OF CASH IN THE BANK ACCOUNT WITH INDUS IND BANK. H E SUBMITTED THAT ONE MORE OPPORTUNITY SHOULD BE GRANTED TO THE ASSES SEE TO PRESENT ITS CASE BEFORE THE COMMISSIONER OF INCOME TAX (APPEALS ). THE AUTHORIZED REPRESENTATIVE OF THE ASSESSEE MADE A STATEMENT AT THE BAR THAT HE SHALL COMPLY WITH THE DIRECTION OF THE TRIBUNAL AND APPEAR BEFORE THE COMMISSIONER OF INCOME TAX (APPEALS), IF AN OPPORTU NITY OF HEARING BEFORE THE COMMISSIONER OF INCOME TAX (APPEALS) IS GRANTED IN THE INTEREST OF JUSTICE. 7 . DEPARTMENTAL REPRESENTATIVE DID NOT OBJECT TO THE ABOVE SUBMISSION OF THE AUTHORIZED REPRESENTATIVE OF THE ASSESSEE. 8 . WE FIND THAT THE ASSESSEE FAILED TO PUT IN APPEAR ANCE ON THE DATES OF HEARING FIXED BY THE COMMISSIONER OF INCOME TAX (APPEALS) AND IN THESE CIRCUMSTANCES, THE COMMISSIONER OF INCOME TAX (APPEALS) CONFIRMED THE ACTION OF THE ASSESSING OFFICER MAKIN G THE ADDITION OF RS.11,46,000/- TO THE INCOME OF THE ASSESSEE AS UNE XPLAINED CASH CREDIT. IN THE ABOVE FACTS AND CIRCUMSTANCES OF TH E CASE AND AS THE AUTHORIZED REPRESENTATIVE OF THE ASSESSEE HAS MADE THE STATEMENT AT BAR THAT HE UNDERTAKES TO APPEAR BEFORE THE COMMISS IONER OF INCOME TAX (APPEALS) IF AN OPPORTUNITY OF HEARING IS GRANT ED TO HIM TO PRESENT THE CASE OF THE ASSESSEE BEFORE THE COMMISSIONER OF INCOME TAX (APPEALS) AND THAT HE HAS ALL EVIDENCE IN SUPPORT O F THE CASH DEPOSIT OF RS. 11,46,000/- IN THE BANK AND ALSO THE DEPARTMEN TAL REPRESENTATIVE HAS NO OBJECTION TO RESTORE THE MATTER BACK TO THE FILE OF THE COMMISSIONER OF INCOME TAX (APPEALS), WE SET ASIDE THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS) AND REMAND THE MATTER BACK TO 4 ITA NO. 45/RAN/2015 HIS FILE FOR ADJUDICATING THE APPEAL OF THE ASSESSE E AFRESH AFTER ALLOWING REASONABLE AND PROPER OPPORTUNITY OF HEARING TO BOT H THE PARTIES. THE ASSESSEE IS DIRECTED TO RENDER TO FULL COOPERATION TO THE COMMISSIONER OF INCOME TAX (APPEALS) IN DISPOSING THE APPEAL EXPEDI TIOUSLY AND THE COMMISSIONER OF INCOME TAX (APPEALS) IS ALSO DIRECT ED TO DISPOSE OFF THE APPEAL AS EARLY AS POSSIBLE. WITH THESE DIRECT IONS, THE APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSE. 9. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED FO R STATISTICAL PURPOSE. ORDER PRONOUNCED IN THE COURT AT THE CLOSE OF THE H EARING ON WEDNESDAY, THE 28 TH DAY OF OCTOBER, 2015 AT RANCHI. SD/- SD/- (GEORGE MATHAN) (N.S.SAINI) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED : 28 TH OCTOBER, 2015. VR/- COPY TO: 1. THE ASSESSEE. 2. THE REVENUE. 3. THE CIT 4. THE CIT(A) 5. THE D.R. 6. GUARD FILE. BY ORDER ASSISTANT REGISTRAR I.T.A.T., RANCHI 5 ITA NO. 45/RAN/2015 DATE INITIAL ORIGINAL DICTATION PAD & DRAFT ARE ENCLOSED IN THE FILE 1. DRAFT DICTATED ON 28/10/2015 SR.PS 2. DRAFT PLACED BEFORE AUTHOR 29/10/2015 SR.PS 3. DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER 29/10/2015 JM/AM 4. DRAFT DISCUSSED/APPROVED BY SECOND MEMBER 29/10/2015 JM/AM 5. APPROVED DRAFT COMES TO THE SR.PS/PS 29/10/2015 SR.PS 6. DATE OF PRONOUNCEMENT 28/10/2015 SR.PS 7. FILE SENT TO THE BENCH CLERK 29/10/2015 SR.PS 8. DATE ON WHICH FILE GOES TO THE HEAD CLERK 9. DATE OF DISPATCH OF ORDER