SHRI RUCHIR PAREKH, MUMBAI V. ITO WARD 19(3)(3), MUMBAI

ITA 5164/MUM/2019

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 8896 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 7 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-03-2021
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Assessment Year: 2013-2014
• Appeal Filed On: 07-08-2019
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Assessee Lawyers: G P MEHTA
• Keywords: Salary income

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH SMC, MUMBAI , ! ,'# '$ BEFORE VIKAS AWASTHY, JUDICIAL MEMBER & SHRI N.K.PRADHAN, ACCOUNTANT MEMBER . 5164/ / 2019 (. . 2013-14 ) ITA NO.5164/MUM/2019(A.Y.2013-14) SHRI RUCHIR PAREKH, C/O. G.P.MEHTA & CO, CAS, 807, TULSIANI CHAMBERS, NARIMAN POINT, MUMBAI 400 021 PAN:AFGPP7869K ...... ) / APPELLANT VS. THE INCOME TAX OFFICER, WARD 19(3)(3), MATRU MANDIR, TARDEO ROAD, NANA CHOWK, MUMBAI 400 007. ..... !*/ RESPONDENT ASSESSEE BY : SHRI G.P.MEHTA REVENUE BY : SHRI SANJAY J. SETHI +* / DATE OF HEARING : 02/03/2021 ,-. +* / DATE OF PRONOUNCEMENT : 08/03/2021 '/ ORDER PER VIKAS AWASTHY, J.M: THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST T HE ORDER OF COMMISSIONER OF INCOME TAX (APPEALS)-30, MUMBAI ( IN SHORT THE CIT(A)) DATED 29/03/2019 FOR THE ASSESSMENT YEAR 2013-14. 2. THE ASSESSEE IS AN INDIVIDUAL AND DERIVES INCOME FROM SALARY, RENT, PROFIT FROM PARTNERSHIP FIRM AND OTHER SOURCES. THE ASSESSEE F ILED HIS RETURN OF INCOME FOR THE IMPUGNED ASSESSMENT YEAR DECLARING TOTAL INCOME OF RS.9,95,290/- FOR THE IMPUGNED 2 . 5164/ / 2019 (. . 2013-14 ) ITA NO.5164/MUM/2019(A.Y.2013-14) ASSESSMENT YEAR. IN SCRUTINY ASSESSMENT PROCEEDIN GS THE ASSESSING OFFICER OBSERVED THAT AS AGAINST THE TOTAL INVESTMENT IN FIXED ASSET S, SHARES, ETC. AGGREGATING TO RS.1,28,17,495/- THE ASSESSEE HAS CAPITAL OF RS.1,2 8,39,337/-. THE ASSESSEE HAS ADVANCED LOANS AGGREGATING TO RS.4,37,58,366/- FR OM THE FUND POSITION MENTIONED ABOVE THE ASSESSEE IS NOT HAVING AVAILABILITY OF I NTEREST FREE FUNDS. THE ASSESSING OFFICER CONCLUDED THAT THE ASSESSEE HAS UTILIZED IN TEREST BEARING FUNDS FOR NON- BUSINESS PURPOSES. THE ASSESSEE HAD CLAIMED INTERE ST EXPENSES OF RS.12,49,826/-. THE ASSESSING OFFICER ALLOWED INTEREST EXPENSES TO THE EXTENT INTEREST INCOME EARNED I.E. RS.9,71,852/- AND DISALLOWED THE REMAIN ING I.E. RS.2,77,974/-. AGGRIEVED BY THE ASSESSMENT ORDER DATED 12/02/2016 THE ASSESS EE FILED APPEAL BEFORE CIT(A). THE CIT(A) IN AN EX-PARTE PROCEEDINGS DISMISSED TH E APPEAL OF ASSESSEE. HENCE, THE PRESENT APPEAL BY ASSESSEE BEFORE THE TRIBUNAL. 3. SHRI G.P. MEHTA APPEARING ON BEHALF OF THE ASSES SEE SUBMITTED THAT THE CIT(A) HAS PASSED EX-PARTE ORDER. THE ASSESSEE COULD NOT APPEAR BEFORE THE CIT(A) AS THE NOTICES WERE NEVER SERVED ON THE ASSESSEE. THE LD. AUTHORIZED REPRESENTATIVE FOR THE ASSESSEE SUBMITTED THAT IF AN OPPORTUNITY I S ALLOWED TO THE ASSESSEE, HE WOULD BE ABLE TO EXPLAIN BEFORE THE CIT(A) WITH EV IDENCE THE SOURCE FOR ADVANCING FUNDS. 4. SHRI SANJAY J. SETHI REPRESENTING THE DEPARTM ENT SUBMITTED THAT A PERUSAL OF IMPUGNED ORDER WOULD SHOW THAT SUFFICIENT OPPORTUNI TY OF HEARING WAS GRANTED TO THE ASSESSEE BY THE CIT(A). REPEATED NOTICES WERE SEN,T HOWEVER, THE ASSESSEE FAILED TO RESPOND TO THE NOTICES ISSUED BY CIT(A). 5. BOTH SIDES HEARD, ORDERS OF AUTHORITIES BELOW EX AMINED. A PERUSAL OF THE IMPUGNED ORDER, PARA- 4.1 REVEALS THAT THE CIT(A) HAD ISSUED NOTICES TO THE ASSESSEE ON 28/08/2018 AND 21/09/2018 MANUALLY. AND ON 30 /01/2019 AND 11/03/2019 ON ITBA. HOWEVER, IT IS NOT EMANATING FROM THE ORDER THAT THE NOTICES ISSUED WERE 3 . 5164/ / 2019 (. . 2013-14 ) ITA NO.5164/MUM/2019(A.Y.2013-14) SERVED ON THE ASSESSEE. THE CIT(A) THEREAFTER PROC EEDED TO DECIDE THE APPEAL OF THE ASSESSEE IN AN EX-PARTE PROCEEDINGS. BE THAT AS I T MAY, WITHOUT COMMENTING ON THE MERITS OF APPEAL, WE DEEM IT APPROPRIATE TO RESTOR E THIS APPEAL BACK TO THE FILE OF CIT(A). THE ASSESSEE IS DIRECTED TO APPEAR BEFORE THE CIT(A) ON RECEIPT OF NOTICE AND CO-OPERATE IN FIRST APPELLATE PROCEEDINGS. THE CI T(A) IS DIRECTED TO GRANT REASONABLE OPPORTUNITY OF HEARING TO THE ASSESSEE BEFORE DECI DING THE APPEAL, IN ACCORDANCE WITH LAW. 6. IN THE RESULT, APPEAL BY ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSE. ORDER PRONOUNCED IN THE OPEN COURT ON MONDAY, THE 8 TH DAY OF MARCH, 2021. SD/- SD/- (N.K.PRADHAN) (VIKAS AWAST HY) '# / ACCOUNTANT MEMBER / JUDICIAL MEMBER / MUMBAI, 0/ DATED 08/03/2021 VM , SR. PS (O/S) !*12'.* COPY OF THE ORDER FORWARDED TO : 1. ) / THE APPELLANT , 2. !* / THE RESPONDENT. 3. 3* ( )/ THE CIT(A)- 4. 3* CIT 5. 45!* , . . . , / DR, ITAT, MUMBAI 6. 56789 / GUARD FILE. BY ORDER, //TRUE COPY// (DY./ASSTT. REGISTRAR) ITAT, MUMBAI