Amar Shiksha Samiti, Kanpur V. Astt. Commissioner of Income Tax-i, Kanpur

ITA 485/LKW/2015

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 4705 (ITAT-LUCKNOW)
• Duration Of Justice: 7 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-02-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 10-02-2016
• Assessment Year: 2011-2012
• Appeal Filed On: 10-07-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: S K JAIN
• Keywords: Unexplained investment; Opportunity of being heard; Notional interest
• Section: 69; 11

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL LUCKNOW BENCH A , LUCKNOW BEFORE SHRI S UNIL KUMAR YADAV , JUDICIAL MEMBER AND SHRI. A. K. GARODIA , ACCOUNTANT MEMBER ITA NO. 485/LKW/2015 ASSESSMENT YEAR: 2011 - 12 AMAR SHIKSHA SAMITI 386, TIWARIPUR BAGIA JAJMAU , KANPUR V. ASSTT. CIT - I KANPUR T AN /PAN : AAATA8461D (APP ELL ANT) (RESPONDENT) APP ELL ANT BY: SHRI. S. K. JAIN, FCA RESPONDENT BY: SHRI. AMIT NIGAM, D.R. DATE OF HEARING: 10 02 201 6 DATE OF PRONOUNCEMENT: 19 02 201 6 O R D E R PER SUNIL KUMAR YADA V: THIS APPEAL IS PREFERRED BY THE ASSESSEE AGAINST THE ORDER OF THE LD. CIT(A), INTER ALIA, ON THE FOLLOWING GROUNDS: - 1 . THE CIT(A) HAS ERRED ON FACTS AND CIRCUMSTANCES OF THE CASE IN CONFIRMING THE ORDER PASSED BY THE ASSESSING OFFICER (HEREIN AFTER REF ERRED TO AS 'AO') WITHOUT PROVIDING AN OPPORTUNITY OF X BEING HEARD. 2 . THE C1T(A) HAS ERRED ON FACTS AND CIRCUMSTANCES OF THE CASE IN CONFIRMING THE ACTION OF THE AO IN DENYING EXEMPTION U/S 11 OF THE INCOME TAX ACT, 1961 (HEREINAFTER REFERRED TO AS 'ACT'). 3 . THE CIT(A) HAS ERRED ON FACTS AND CIRCUMSTANCES OF THE CASE IN CONFIRMING THE ADDITION OF RS. 57,12,586/ - MADE BY : - 2 - : THE AO U/S 69 OF THE ACT ALLEGING THE SAME AS UNEXPLAINED INVESTMENT. 4 . THE CIT(A) HAS ERRED ON FACTS AND CIRCUMSTANCES OF THE CASE IN CONFIRMING THE ADDITION OF RS. 13,10,347/ - MADE BY THE AO U/S 69 OF THE ACT ALLEGING THE SAME AS UNEXPLAINED INVESTMENT. 5 . THE CIT(A) HAS ERRED ON FACTS AND CIRCUMSTANCES OF THE CASE IN CONFIRMING THE ADDITION OF NOTIONAL INTEREST ON LOANS AND ADVANCES AMOUNTING TO RS. 3,80,173 / - MADE BY THE ASSESSING OFFICER. 6 . THE CIT(A) HAS ERRED ON FACTS AND CIRCUMSTANCES OF THE CASE IN CONFIRMING THE ADHOC DISALLOWANCE OF RS. 2,69,191 / - MADE BY THE AO. 7 . THE APPELLANT PRAYS THAT HE MAY BE ALLOWED TO ADD, AMEND, ALTER OR FOREGO ANY OF THE ABOVE GROUNDS OF APPEAL AS THE CIRCUMSTANCES MAY WARRANT. 8 . THE ABOVE GROUNDS ARE WITHOUT PREJUDICE TO EACH OTHER. 2 . DURING THE COURSE OF HEARING, THE LD. COUNSEL FOR THE ASSESSEE HAS INVITED OUR ATTENTION TO THE ORDER OF THE LD. CIT(A) WITH THE SUBMISSION T HAT THE LD. CIT(A) HAS DISPOSED OF THE APPEAL EX - PARTE WITHOUT DEALING WITH THE ISSUES ON MERIT WHEREAS AS PER LAW THE LD. CIT(A) OUGHT TO HAVE ADJUDICATED THE APPEAL ON MERIT EVEN IF THE ASSESSEE DOES NOT APPEAR. THEREFORE, IN THE INTEREST OF JUSTICE, TH E ORDER OF THE LD. CIT(A) MAY BE SET ASIDE AND THE MATTER MAY BE RESTORED TO HIS FILE FOR ADJUDICATION OF THE APPEAL ON MERIT. 3 . THE LD. D.R. HAS ALSO AGREED TO THIS SUBMISSIONS OF THE LD. COUNSEL FOR THE ASSESSEE, AS THE LD. CIT(A) HAS NOT DISPOSED OF THE A PPEAL ON MERIT. : - 3 - : 4 . HAVING CAREFULLY EXAMINED THE ORDERS OF THE LOWER AUTHORITIES IN THE LIGHT OF THE RIVAL SUBMISSIONS, WE FIND THAT THE LD. CIT(A) HAS DISPOSED OF THE APPEAL WITHOUT DEALING WITH THE ISSUES ON MERIT. W E ARE OF THE VIEW THAT SINCE THE LD. CI T(A) HAS NOT DISPOSED OF THE APPEAL ON MERIT, HIS ORDER DESERVES TO BE SET ASIDE AND WE ACCORDINGLY SET ASIDE THE ORDER OF THE LD. CIT(A) AND RESTORE THE MATTER TO HIS FILE WITH A DIRECTION TO RE - ADJUDICATE THE APPEAL AFRESH AFTER AFFORDING AN OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. 5 . IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER WAS PRONOUNCED IN THE OPEN COURT ON THE DATE MENT I ONED ON THE CAPTION ED PAGE. SD/ - SD/ - [ A. K. GARODIA ] [ S UNIL KUMAR Y ADAV ] ACCOUNTANT M EMBER JUDICIAL MEMBER DATED: 19 TH 1 . APPELLANT FEBR UARY, 2016 JJ: 1002 COPY FORWARDED TO: 2 . RESPONDENT 3 . CIT(A) 4 . CIT 5 . DR ASSISTANT REGISTRAR