Shri Kishanchand Nathurmal Motwani, Ahmedabad V. The Income tax Officer,Ward-11(4), Ahmedabad

ITA 498/AHD/2012

• Counselvise Citation: 49820514 RSA 2012
• Duration Of Justice: 3 year(s) 5 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-08-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 03-08-2015
• Assessment Year: 2008-2009
• Appeal Filed On: 27-02-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DINESH SINGH
• Assessee Lawyers: S N DIVETIA
• Keywords: Unexplained cash credit; Principle of natural justice
• Section: 143(3); 142(1)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD A BENCH BEFORE: S H RI G. D. AGRAWAL , VICE PRESIDENT AND SHR I S.S. GODARA , JUDICIAL MEMBER KISHANCHAND NATHUR MAL, 10, NEW CLOTH MARKET, RAIPUR GATE, AHMEDABAD - 380002 (APPELLANT) VS ITO, WARD 11(4), AHMEDABAD (RESPONDENT) ASSESSEE BY: SHRI S. N. DIVETIA REVENUE BY : S H RI DINE SH SINGH , SR. D . R. DATE OF HEARING : 03 - 08 - 2 015 DATE OF PRONOUNCEMENT : 14 - 08 - 2 015 / ORDER P ER : S. S. GODARA , JUDICIAL MEMBER : - THIS ASSESS EE S APPEAL FOR A.Y. 2008 - 09, A RISES FROM ORDER OF THE CIT(A) - X V I, AHMEDABAD DATED 09 - 01 - 2012 IN APPEAL NO. CIT(A) - XVI/ITO / WD. - 11(4)464/ 10 - 11 , IN PROCEEDINGS UNDER SECTION 143(3) R.W.S. 144 OF THE INCOME TAX ACT, 1961; IN SHORT THE ACT . I T A NO . 498 / A HD/20 12 A SSESSMENT YEAR 200 8 - 09 I .T.A NO. 498 /AHD/2 012 A.Y. 2008 - 09 PAGE NO KISHANCHAND NATHURMAL MOTWANI VS. ITO 2 2. THE ASSESSEE S GROUND S CHALLENGE THE CIT(A) S ORDER INTER ALIA UPHOLDING ASSESSING OFFICER S ACTION IN FRAMING BEST JUDGMEN T ASSESSMENT U/S. 144 RESULTING IN THE IMPUGNED ADDITIONS OF UNEXPLAINED CASH CREDIT, SUNDRY CREDITORS AND DEBTORS AND GROSS PROFIT AMOUNTING TO RS. 28,03,488/ - , RS. 7,76,882/ - AND RS. 4,55,705/ - ; RESPEC TIVELY . THE ASSESSEE - INDIVIDUAL IS A CLOTH TRADER. HE FILED RETURN ON 29 - 09 - 2008 ADMITTING INCOME OF RS. 1,29,2 , 333/ - . T HE ASSESSING OFFICER TOOK UP SCRUTINY AND APPEARS TO HAVE ISSUED NOTICES 14 3(2) AND 142(1) DATED 31 - 08 - 2009, 30 - 04 - 2010, 06 - 09 - 2010, 27 - 09 - 2010 AND 12 - 10 - 2010. HE RECORDED ASSESSE E S FAILURE IN FILING ANY RESPONSE, TOOK RECOURSE TO BEST JUDGMENT AND MADE THE IMPUGNED ADDITIONS IN ASSESSMENT ORDER DATED 07 - 12 - 2010. 3. THE ASSE SSEE PREFERRED APPEAL. HE ALLEGED VIOLATION OF PRINCIPLES OF NATURAL JUSTICE ON BEST JUDGMENT ISSUE . A ND ALSO CHALLENGED THE ABOVE STATED ADDITIONS ON MERITS. AN AFFIDA VIT DATED 25 - 04 - 2011 WAS PLACED ON RECORD SOLEMNLY AVERRING THEREIN THAT HE HAD PERSO NALLY ATTENDED AND PRESENTED COPIES OF ACCOUNTS BEFORE THE ASSESSING OFFICER DURING SCRUTINY IN FURTHERANCE TO NOTICE DATED 12 - 10 - 2010 (SUPRA). THE CIT(A) SOUGHT A REMAND REPORT. THE ASSESSING OFFICER FILED THE SAME DATED 22 - 11 - 2011 WITHOUT SPECIFICALLY REBUTTING ASSES S EE S AB OVE STATED AVERMENTS. HE REITERATED THE ABOVE STATED NOTICES FOR JUSTIFYING THE EX - PARTE ASSE SSMENT FRAMED . THE CIT(A) HAS ACCEPTED THE ABOVE STAT ED REMAND REPORT FOR REJECTING ASSESSEE S CORRESPONDING GROUND CHALLENGING BEST JUDGME NT ASSESSMENT AND CONFIRMED THE FORMER TWO ADD ITIONS (SUPRA). ITS LAST PLEA RELATING TO GP ADDITION (SUPRA) HAS BEEN PARTLY ACCEPTED. 4. WE HAVE HEARD BOTH THE PARTIES AND GONE THROUGH THE CASE FILE. FIRST WE COME TO THE ISSUE OF VIOLATION OF PRINCIP LES OF NATURAL JUSTICE. I .T.A NO. 498 /AHD/2 012 A.Y. 2008 - 09 PAGE NO KISHANCHAND NATHURMAL MOTWANI VS. ITO 3 RELEVANT FACTS ALREADY NARRATED HEREINABOVE. A SSESSEE S AFFIDAVIT HAVING SOLEMN AVERMENTS FO RM S PART OF THE PAPER BOOK AT PAGE 72. THE ASSESSING OFFICER S REMAND REPORT SIMPLY SUPPORTS THE EX - PARTE ACTION IN THE COURSE OF ASSES SM ENT WITHOUT DISPUTING ASSESSEE S AFFIRMATION HEREINABOVE . THE REVENUE FAILS TO REBUT THIS FACTUAL POSITION. WE DEEM IT APPROPRIATE IN THESE CIRCUMSTANCES AND ALSO IN THE LARGER I NTEREST OF JUSTICE THAT THE ASSESSEE DESERVES TO BE GRANTED ONE MORE INNING S BEFORE THE ASSESSING OFFICER. W E ORDER ACCORDINGLY. IT S GROUNDS ON MERITS CHALLENGING ALL THE THREE ADDITIONS ARE RESTORED BACK TO THE ASSESSING OFFICER FOR FRESH ADJUDICATION AS PER LAW. THE ASSESSEE IS DIRECTED TO CO - OPERATE IN THE CON SEQUENTIAL PROCE EDINGS. 5 . THIS ASSESSEE S APPEAL IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PR ONOUNCED IN THE OPEN C OURT ON 14 - 08 - 2015 SD/ - SD/ - ( G. D. AGRAWAL ) ( S.S. GODARA ) VICE PRESIDENT JUDICIAL MEMBER AHMEDABAD : DATED 14 /08 /2015 AK / COPY OF ORDER FORWARDED TO: - 1. ASSESSEE 2. REVENUE 3. CONCERNED CIT 4. CIT (A) 5. DR, ITAT, AHMEDABAD 6. GUARD FILE. BY ORDER/ , / ,