Shivaji Bhausaheb Bankar, Aurangabad V. Income-tax Officer, ( CIB), Nashik

ITA 497/PUN/2019

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 7100 (ITAT-PUNE)
• Duration Of Justice: 1 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-04-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2005-2006
• Appeal Filed On: 29-03-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: IS DIRECTED AGAINS T PASSED
• Keywords: Sale consideration of property below Jantri Value

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH SMC, PUNE BEFORE SHRI R.S. SYAL, VICE PRESIDENT AND SHRI PARTHA SARATHI CHAUDHURY, JUDICIAL MEMBER . / ITA NO.497/PUN/2019 / ASSESSMENT YEARS : 2005-06 SHIVAJI BHAUSAHEB BANKAR, AMBELOHAL, GANGAPUR, DIST. AURANGABAD PAN : AHYPB2650C VS. ITO (CIB), NASHIK (APPELLANT) (RESPONDENT) / ORDER PER R.S.SYAL, VP : THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER PASSED BY THE CIT(A)-2, AURANGABAD ON 28-08-2013 IN RELATION TO THE ASSESSMENT YEAR 2005-06. 2. THIS APPEAL IS TIME-BARRED BY 1979 DAYS. THE ASSESS EE HAS FILED AFFIDAVIT IN SUPPORT OF CONDONATION OF DELAY. WE HAVE GONE THROUGH THE CONTENTS OF THE AFFIDAVIT AS PER WHICH THE ASSE SSEE, A 12 TH PASS FROM A VILLAGE IN DISTRICT AURANGABAD JOINED INDIAN ARMY APPELLANT BY SMT. SHUBHADA A. KOPPA RESPONDENT BY SHRI RAJESH GAWALI DATE OF HEARING 29-04-2019 DATE OF PRONOUNCEMENT 29-04-2019 ITA NO. 497/PUN/2019 SHIVAJI B. BANKAR 2 IN 1983 IN THE CADRE OF OTHER RANKS IN CORPS OF EME AND SERVED TILL 1991. ON HIS VOLUNTARY RETIREMENT, HE CAME BACK TO HIS VILLA GE. FOR SUSTENANCE OF HIS FAMILY AND IN ORDER TO SUPPLEMENT HIS INCOME, HE STARTED DOING ODD JOBS AND OTHER PETTY CONTRACTS LIKE SUPPLY OF METAL STONE, MURUM AND SAND ETC. GRADUALLY, THE ASSESSEE STARTED GETTING WORK CONTRACTS IN HIS OWN NAME. W HEN HIS BUSINESS ACTIVITY GREW, HE ENGAGED A FIRM OF CHARTERED ACCOUNTANTS IN AURANGABAD WHO STARTED FILING HIS RETURN FROM 2003-04 ONWARDS. IT HAS BEEN STATED THAT WHENEVER HE WO ULD GET SOME LETTER OR DOCUMENT FROM INCOME-TAX DEPARTMENT, HE WAS HANDING OVER THE SAME TO HIS CHARTERED ACCOUNTANT WHO, IN TURN, WAS ASSURING THAT THE SAME WOULD BE TAKEN CARE OF. IT WAS ONLY LATER ON WHEN THE TAX DEMAND OF RS.6,84,000/- WAS RAISED IN THE BEST JUDGMENT ASSESSMENT ORDER FRAMED IN 2008 BECAUSE O F THE CHARTERED ACCOUNTANT NOT ATTENDING THE OFFICE OF THE AO, TH AT THE ASSESSEE REALIZED THE GRAVITY OF THE PROBLEM. ON FURTHER P ROBING, IT TRANSPIRED THAT THE CHARTERED ACCOUNTANT APPOINTED BY THE AS SESSEE HAD NOT PARTICIPATED IN THE ASSESSMENT PROCEEDINGS FOR THE YE AR UNDER CONSIDERATION AS A RESULT OF WHICH THE ASSESSMENT ORD ER WAS PASSED U/S.144 OF THE ACT DETERMINING THE TOTAL INCOME AT RS.13,50,500/-, BEING, THE AMOUNT DEPOSITED IN THE SAVINGS B ANK ITA NO. 497/PUN/2019 SHIVAJI B. BANKAR 3 ACCOUNT. WHEN AN APPEAL WAS FILED AGAINST THE ASSESSMENT O RDER PASSED U/S.144, THE LD. CIT(A) CALLED FOR THE REMAND REPO RT FROM THE AO. THE ASSESSEES CHARTERED ACCOUNTANT AGAIN DID NO T APPEAR IN THE REMAND PROCEEDINGS AS WELL, WHICH LED TO THE DISMISSAL OF THE APPEAL. IN VIEW OF THE ABOVE NARRATED FACTS, IT IS AMP LY CLEAR THAT THE ASSESSEE, AN EX-SERVICEMAN AND UNDER-GRADUATE B ELONGING TO THE FAMILY OF FARMERS, WHO RELIED ON HIS CHARTERED ACCO UNTANT FOR INCOME-TAX MATTERS WAS BETRAYED, NOT ONLY DURING THE COU RSE OF ASSESSMENT PROCEEDINGS WHICH LED TO THE PASSING OF THE EX PARTE ASSESSMENT ORDER BUT ALSO DURING THE COURSE OF THE FIRST AP PELLATE PROCEEDINGS, IN WHICH THE CHARTERED ACCOUNTANT OF THE ASSES SEE DID NOT PARTICIPATE IN THE REMAND PROCEEDINGS. IN OUR CONSIDERE D OPINION, THE ASSESSEE HAS SUCCESSFULLY JUSTIFIED THE LONG DELA Y IN PRESENTING THE APPEAL BEFORE THE TRIBUNAL. AS SUCH, THE D ELAY IS CONDONED AND THE APPEAL IS ADMITTED FOR HEARING. 3. ON MERITS, IT IS SEEN THAT THE ASSESSMENT ORDER WAS PASS ED U/S.144 OF THE ACT IN WHICH TOTAL CASH DEPOSITED IN THE BANK AMOUNTING TO RS.13,50,500/- WAS TREATED AS UNEXPLAINED AND CHARGED TO TAX. INCOME-TAX ON SUCH AMOUNT ALONG WITH INTERE ST STOOD COMPUTED AT RS.6,84,900/-. THOUGH THE APPEAL WAS FILED ITA NO. 497/PUN/2019 SHIVAJI B. BANKAR 4 BEFORE THE LD. CIT(A), THE ASSESSEE AGAIN REMAINED UNREP RESENTED BEFORE THE AO DURING THE REMAND PROCEEDINGS, A REPORT OF WHICH WAS SOUGHT BY THE LD. CIT(A). AS SUCH, THE APPEAL CAME TO BE DISMISSED. IN THE GIVEN FACTS AND CIRCUMSTANCES, WE ARE O F THE CONSIDERED OPINION THAT THE ENDS OF JUSTICE WOULD MEET ADEQUATE LY IF THE IMPUGNED ORDER IS SET-ASIDE AND THE MATTER IS RESTOR ED TO THE FILE OF AO. WE ORDER ACCORDINGLY AND DIRECT HIM TO FRAME THE ASSESSMENT AFRESH AS PER LAW AFTER ALLOWING A REASONABLE OPPORTUNITY OF HEARING TO THE ASSESSEE. THE LD. AR HAS UN DERTAKEN THAT THE ASSESSEE WILL EXTEND FULL CO-OPERATION TO THE AO IF HIS PRAYER FOR SECOND INNINGS IS ACCEPTED. 4. IN THE RESULT, THE APPEAL IS ALLOWED FOR STATISTICAL PURPOSES . ORDER PRONOUNCED IN THE OPEN COURT ON 29 TH APRIL, 2019. SD/- SD/- (PARTHA SARATHI CHAUDHURY) (R.S.SYAL) JUDICIAL MEMBER VI CE PRESIDENT PUNE; DATED : 29 TH APRIL, 2019 ITA NO. 497/PUN/2019 SHIVAJI B. BANKAR 5 / COPY OF THE ORDER IS FORWARDED TO : 1. / THE APPELLANT; 2. / THE RESPONDENT; 3. THE CIT(A)-2, AURANGABAD 4. 5. THE PR.CIT-2,AURANGABAD , , SMC / DR SMC, ITAT, PUNE; 6. / GUARD FILE. / TRUE COPY // / BY ORDER, // TRUE COPY // SENIOR PRIVATE SECRE TARY , / ITAT, PUNE DATE 1. DRAFT DICTATED ON 29-04-2019 SR.PS 2. DRAFT PLACED BEFORE AUTHOR 29-04-2019 SR.PS 3. DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER JM 4. DRAFT DISCUSSED/APPROVED BY SECOND MEMBER. JM 5. APPROVED DRAFT COMES TO THE SR.PS/PS SR.PS 6. KEPT FOR PRONOUNCEMENT ON SR.PS 7. DATE OF UPLOADING ORDER SR.PS 8. FILE SENT TO THE BENCH CLERK SR.PS 9. DATE ON WHICH FILE GOES TO THE HEAD CLERK 10. DATE ON WHICH FILE GOES TO THE A.R. 11. DATE OF DISPATCH OF ORDER. *