INDIA LAW SERVICES, MUMBAI V. ASST CIT 11(2), MUMBAI

ITA 5150/MUM/2012

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 75566 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 6 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-02-2014
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: I
• Next Hearing Date: 01-05-2014
• Assessment Year: 2008-2009
• Appeal Filed On: 13-08-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: O P SINGH
• Assessee Lawyers: KALPESH TURALKAR
• Keywords: Opportunity of being heard; Principle of natural justice; Additional evidence
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL I BENCH, MUMBAI BEFORE SHRI D. KARUNAKARA RAO, ACCOUNTANT MEMBER AND SHRI VIVEK VARMA, JUDICIAL MEMBER ./I.T.A. NO.5150/M/2012 ( AY: 2008 - 2009 ) M/S. INDIA LAW SERVICES, 1, ORION APARTMENTS, 29A, LALLUBHAI PARK ROAD, ANDHERI (W), MUMBAI 400 058. / VS. ACIT - 11(2), AAYAKAR BHAVAN, MUMBAI 20. ./ PAN : AAAFI 5004 L ( / APPELLANT) .. ( / RESPONDENT ) / APPELLANT BY : SHRI KALPESH TURALKAR / RESPONDENT BY : SHRI O.P. SINGH, DR / DATE OF HEARING :19.2.2014 / DATE OF PRONOUNCEMENT :19.2.2014 / O R D E R PER D. KARUNAKARA RAO, AM: THIS APPEAL FILED BY THE ASSESSEE ON 13.8.2012 IS AGAINST THE ORDER OF THE CIT (A) - 3, MUMBAI DATED 15.6.2012 FOR THE ASSESSMENT YEAR 2008 - 2009. 2. IN THIS APPEAL, ASSESSEE RAISED THE FOLLOWING GROUNDS WHICH READ AS UNDER: 1. THE CIT (A) ERRED IN BOTH ON FACTS AND IN LAW IN PASSING THE IMPUGNED ORDER, WITHOUT APPRECIATING THE FACTS IN TOTALITY AND THEREBY MAKING UNWARRANTED ADDITIONS. 2. THE CIT (A) ERRED IN MAKING AN ADDITION OF RS. 7,12,716/ - TO THE INCOME OF THE APPELLANT, WITHOUT APPRECIATING THE EXPLANATION OFFERED BY THEM AND THE RECONCILIATION OF THE ACCOUNTS SUBMITTED BY THEM BEFORE THE AO. THE IMPUGNED ORDER HAS BEEN PASSED ON A COMPLETE NON - APPLICATION OF MIND AND IS THEREFORE, LIABLE TO BE SET ASIDE. 3. BRIEFLY STATED RELEVANT FACTS OF THE CASE ARE THAT THE ASSESSEE ENGAGED IN THE PROFESSION OF ADVOCATE FILED THE RETURN OF INCOME DECLARING THE TOTAL INCOME OF RS. 1,19,07,680/ - . ASSESSMENT WAS COMPLETED U/S 143(3) OF THE ACT AND THE ASSESSED INCOME OF THE ASSESSEE WAS DETERMINED AT RS. 1,29,29,440/ - . DURING THE ASSESSMEN T PROCEEDINGS, RELYING ON THE INFORMATION RECEIVED FROM THE AIR, AO MADE 2 ADDITION OF RS. 10,21,759/ - FOR WANT OF RECONCILIATION OF FIGURES. IT WAS SUBMITTED BEFORE THE AO THAT THE ASSESSEE BEING A LEGAL FIRM RENDERING PROFESSIONAL SERVICES TO VARIOUS CLIENTS. AS PER THE INFORMATION OF THE AIR, SOME RECEIPTS WERE NOT CORRECTLY SHOWN IN THE BOOKS OF ACCOUNTS OF T HE ASSESSEE. NOT SATISFIED WITH THE SUBMISSIONS OF THE ASSESSEE, AO MADE THE SAID ADDITION OF RS.10,21,759/ - . AGGRIEVED WITH THE DECISION OF THE AO, ASSESSEE FIELD AN APPEAL BEFORE THE FIRST APPELLATE AUTHORITY. 4. DURING THE PROCEEDINGS BEFORE THE FIRST APPELLATE AUTHORITY, ASSESSEE COULD SUBSTANTIATE THE CLAIM THAT THE SAID AMOUNT S WERE NOT RECEIVED FROM HIS CLIENTS . ACCORDINGLY, CIT (A) CONFIRMED THE ADDITION OF RS. 7,12,716/ - AND PARTLY ALLOWED THE APPEAL OF THE ASSESSEE. AGGRIEVED WITH THE SAME, ASSE SSEE IS IN APPEAL BEFORE THE TRIBUNAL BY RAISING THE ABOVE MENTIONED GROUNDS. 5. DURING THE PROCEEDINGS BEFORE US, AT THE OUTSET, LD COUNSEL FOR THE ASSESSEE BROUGHT OUR ATTENTION TO THE APPLICATION FILED BY THE ASSESSEE ON 20 TH JANUARY, 2014 , WHICH IS SUP PORTED BY AN AFFIDAVIT DATED 12 FEBRUARY, 2014 SEEKING FOR ADMITTANCE OF THE ADDITIONAL EVIDENCES AND REQUESTED FOR REMANDING THE ISSUE TO THE FILES OF THE AO FOR VERIFYING THE SAME AND A FRESH DECISION ON THE ISSUE. 6. ON THE OTHER HAND, LD DR HAS NOT OBJ ECTED THE SAID PRAYER OF THE LD COUNSEL AND FIND MERIT IN THE SAME. 7. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE ORDERS OF THE REVENUE AUTHORITIES AS WELL AS THE MATERIAL PLACED BEFORE US. AFTER HEARING BOTH THE PARTIES ON THIS PRELIMINARY ISSUE OF A DMITTANCE OF THE ADDITIONAL EVIDENCES, WE FIND MERIT IN THE SAME. IT IS ALSO NOTICED THAT THE ADMITTANCE OF THESE PAPERS WOULD BE IN THE INTEREST OF RENDERING OF THE JUSTICE. FURTHER, WE HAVE ALSO NOTICED THAT THESE PAPERS HAVE THE POTENTIAL TO GO TO THE ROOT OF THE MATTER. ACCORDINGLY, AS PRONOUNCED IN THE OPEN COURT, WE ADMIT THE ADDITIONAL EVIDENCES AND REMIT THE MATTER TO THE FILES OF THE AO FOR ADJUDICATING THE MATTER AFRESH AFTER GRANTING A REASONABLE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE IN ACCORDANCE WITH THE PRINCIPLES OF NATURAL JUSTICE. ACCORDINGLY, GROUNDS RAISED BY THE ASSESSEE ARE ALLOWED FOR STATISTICAL PURPOSES. 8. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. 3 ORDER PRONOUNCED IN THE OPEN COURT ON 19 TH FEBRUARY, 2014 IMMEDIATELY AFTER COMPLETION OF HEARING. S D / - S D / - (VIVEK VARMA) (D. KARUNAKARA RAO) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI ; 19 .2 .2014 . . ./ OKK , SR. PS / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. ( ) / THE CIT(A) - 4. / CIT 5. , , / DR, ITAT, MUMBAI 6. / GUARD FILE . //TRUE COPY// / BY ORDER, / (DY./ASSTT. REGISTRAR) , / ITAT, MUMBAI