DCIT Central Circle 2(3), CHENNAI V. G.Varadarajan, CHENNAI

ITA 512/CHNY/2019

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 0269 (ITAT-CHENNAI)
• Duration Of Justice: 4 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-06-2019
• Appeal Filed By: Department
• Order Result: Partly Allowed
• Bench Allotted: C
• Assessment Year: 2011-2012
• Appeal Filed On: 28-02-2019
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: SILENDRA MAMIDI PCIT
• Keywords: Unexplained investment; Opportunity of being heard; Set aside
• Section: 153A; 132

Judgement Text

, , IN THE INCOME-TAX APPELLATE TRIBUNAL C BENCH, CHENNAI . , , BEFORE SHRI DUVVURU RL REDDY, JUDICIAL MEMBER & SHRI S. JAYARAMAN, ACCOUNTANT MEMBER ./ I.T.A.NOS.512, 513, 514, 515, 516 & 517/CHNY/2019 / ASSESSMENT YEARS :2011-12 TO 2016-17 THE DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE 2(3), NO. 46, NUNGAMBAKKAM HIGH ROAD, CHENNAI 600 034. VS. SHRI G. VARADARAJAN, NO. 393, GVR BHAVAN, THIRUVOTTIYUR HIGH ROAD, CHENNAI 600 019. [PAN:AAEPV0205C] ( /APPELLANT ) ( / RESPONDENT ) / APPELLANT BY : SHRI SILENDRA MAMIDI, PCIT / RESPONDENT BY : NONE / DATE OF HEARING : 28.06.2019 /DATE OF PRONOUNCEMENT : 28.06.2019 / O R D E R PER BENCH: THESE SIX APPEALS FILED BY THE REVENUE ARE DIRECTED AGAINST THE COMMON ORDER OF THE LD. COMMISSIONER OF INCOME TAX (APPEALS) 18, CHENNAI DATED 19.04.2018 RELEVANT TO THE ASSESSMENT YEARS 2011-12, 2012- 13, 2013-14, 2014-15, 2015-16 AND 2016-17. THE ONLY EFFECTIVE GROUND RAISED BY THE REVENUE IS THAT THE LD. CIT(A) HAS ERRED IN DELETING THE ADDITION MADE ON ACCOUNT OF INTEREST ON FDS AND UNACCOUNTED INVESTMENT IN FDS AS I.T.A. NOS.512-517/M/19 2 WELL AS UNACCOUNTED CASH [AY: 2016-17] BY CONSIDERING FRESH EVIDENCES WITHOUT OBTAINING REMAND REPORT IS IN VIOLATION OF RULE 46A OF THE I.T. RULES. 2. ALL THE APPEALS FILED BY THE REVENUE ARE DELAYED BY 214 DAYS IN FILING THE APPEAL BEFORE THE TRIBUNAL, FOR WHICH, THE REVENUE HAS FILED PETITION FOR CONDONATION OF THE DELAY. DESPITE SERVICE OF NOTICE (AD ON RECORD), NONE APPEARED ON BEHALF OF THE ASSESSEE. SINCE THE DEPARTMENT WAS PREVENTED BY SUFFICIENT CAUSE, THE DELAY OF 214 DAYS IN FILING OF THE APPEALS STAND CONDONED AND THE APPEALS ARE ADMITTED FOR ADJUDICATION. 3. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE AND HIS SON ARE INDUSTRIAL CATERING CONTRACTORS HAVING THEIR OFFICE IN CHENNAI. THEY ARE ENGAGED IN CATERING SERVICES TO INDUSTRIAL ESTABLISHMENTS VIZ., ROYAL ENFIELD, M/S. CARBORANDUM UNIVERSAL, M/S. TI CYCLES, M/S. EASUN M.R. COMPANY AND M/S. EASUN REROLLE COMPANY, HOSUR. A SURVEY WAS CONDUCTED AT THE BUSINESS PREMISES OF THE COMPANY, WHICH WAS CONVERTED LATER INTO SEARCH. AGAINST NOTICE UNDER SECTION 153A OF THE INCOME TAX ACT, 1961 [ACT IN SHORT], THE ASSESSEE FILED THE RETURNS OF INCOME FOR THE ASSESSMENT YEARS. 3.1 THE ASSESSEE MADE FIXED DEPOSIT WHICH WAS FOUND DURING THE COURSE OF SEARCH CONDUCTED UNDER SECTION 132 OF THE ACT. HOWEVER, DURING THE COURSE OF ASSESSMENT PROCEEDINGS, THE AR OF THE ASSESSEE COULD NOT SATISFACTORILY EXPLAIN THE SOURCE OF INVESTMENTS MADE AND INTEREST EARNED ON I.T.A. NOS.512-517/M/19 3 IT. IN THE ABSENCE OF ANY COGENT REPLY AS WELL AS DOCUMENTARY EVIDENCES, THE AMOUNT WAS ADDED TO THE TOTAL INCOME OF THE ASSESSEE FOR THE ASSESSMENT YEARS 2011-12 TO 2015-16. MOREOVER, A SUM OF .46 LAKHS WAS SEIZED DURING THE COURSE OF SEARCH. THE EXPLANATION OFFERED BY THE ASSESSEE BEFORE THE ASSESSING OFFICER WAS NOT ACCEPTED SINCE THE ASSESSEE HAS NOT MAINTAINED ANY BOOKS OF ACCOUNT AND ACCORDINGLY, THE AMOUNT OF .46 LAKHS WAS ADDED TO THE TOTAL INCOME OF THE ASSESSEE IN THE ASSESSMENT YEAR 2016-17. 4. THE ASSESSEE CARRIED THE MATTER IN APPEAL BEFORE THE LD. CIT(A) FOR ALL THE ASSESSMENT YEAR UNDER CONSIDERATION. AFTER CONSIDERING THE SUBMISSIONS OF THE ASSESSEE, THE LD. CIT(A) ALLOWED THE GROUND RAISED BY THE ASSESSEE RELATING TO ADDITION ON ACCOUNT OF UNACCOUNTED INVESTMENTS. FURTHER, AFTER CONSIDERING THE EXPLANATIONS OF THE ASSESSEE, BANK STATEMENT FILED, THE LD. CIT(A) DIRECTED TO DELETE THE ADDITION MADE ON ACCOUNT OF UNACCOUNTED CASH. 5. AGGRIEVED, THE REVENUE IS IN APPEAL BEFORE THE TRIBUNAL FOR THE ASSESSMENT YEARS UNDER CONSIDERATION. NONE APPEARED ON BEHALF OF THE ASSESSEE, DESPITE SERVICE OF NOTICE [RPAD ON RECORD]. HENCE, WE PROCEED TO DECIDE THE APPEAL ON MERITS AFTER HEARING THE LD. DR. 6. WE HAVE HEARD THE LD. DR, PERUSED THE MATERIALS AVAILABLE ON RECORD AND GONE THROUGH THE ORDERS OF AUTHORITIES BELOW. WE FIND THAT BY ACCEPTING I.T.A. NOS.512-517/M/19 4 THE EXPLANATIONS OFFERED BY THE ASSESSEE AS WELL AS BANK STATEMENT, ETC., WHICH WERE NOT FILED BEFORE THE ASSESSING OFFICER, THE LD. CIT(A) HAS ALLOWED THE GROUNDS RAISED BY THE ASSESSEE. HOWEVER, WHILE DOING SO, WE FIND THAT THE LD. CIT(A) HAS NOT OBTAINED ANY REMAND REPORT FROM THE ASSESSING OFFICER ON THE FRESH MATERIALS TAKEN INTO CONSIDERATION, WHICH IS IN VIOLATION OF RULE 46A OF THE INCOME TAX RULES. IN VIEW OF THE ABOVE, WE SET ASIDE THE ORDER OF THE LD. CIT(A) AND REMIT THE MATTERS TO THE FILE OF THE LD. CIT(A) TO DECIDE THE ABOVE ISSUES AFRESH AFTER OBTAINING REMAND REPORT FROM THE ASSESSING OFFICER AS WELL AS AFFORDING AN OPPORTUNITY OF BEING HEARD TO THE ASSESSEE FOR REBUTTAL. THUS, THE GROUND RAISED BY THE REVENUE IS ALLOWED FOR STATISTICAL PURPOSES. 7. IN THE RESULT, ALL THE APPEALS FILED BY THE REVENUE ARE ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED ON THE 28 TH JUNE, 2019 AT CHENNAI. SD/- SD/- (S. JAYARAMAN) ACCOUNTANT MEMBER (DUVVURU RL REDDY) JUDICIAL MEMBER CHENNAI, DATED, THE 28.06.2019 VM/- /COPY TO: 1. / APPELLANT, 2. / RESPONDENT, 3. ( ) /CIT(A), 4. /CIT, 5. /DR & 6. /GF.