HANSIKA P. SINGH, MUMBAI V. ITO - 16 (1)(2), MUMBAI

ITA 523/MUM/2019

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 4038 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-02-2020
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: H
• Assessment Year: 2008-2009
• Appeal Filed On: 01-02-2019
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: DROP SINGH MEENA
• Assessee Lawyers: JITENDRA SINGH
• Keywords: Source of fund; Reassessment proceedings
• Section: 143(3); 148

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH H, MUMBAI BEFORE SHRI VIKAS AWASTHY, JUDICIAL MEMBER & SHRI RIFAUR RAHMAN, ACCOUNTANT MEMBER ITA NO.523/MUM/2019(A.Y.2008-09) HANSIKA P. SINGH, BUNGLOW NO.41, RSC 16/20, CHARKOP, SECTOR NO.2, KANDIVALI (WEST) MUMBAI 400 067. PAN:BAFPS1570N . ..... APPELLANT VS. INCOME TAX OFFICER-16(1)(2), ROOM NO.436A, 4 TH FLOOR, AAYKAR BHAVAN, M.K.ROAD, MUMBAI- 400 020 ..... RE SPONDENT APPELLANT BY : SHRI JITENDRA SINGH RESPONDENT BY : SHRI DROP SINGH MEENA DATE OF HEARING : 06/02/2020 DATE OF PRONOUNCEMENT : 17/02/2020 ORDER PER VIKAS AWASTHY, JM: THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST T HE ORDER OF COMMISSIONER OF INCOME TAX (APPEALS)-4, MUMBAI [IN SHORT THE CIT(A ) ] DATED 27/11/2018 FOR THE ASSESSMENT YEAR 2008-09. 2. THE BRIEF FACTS OF THE CASE AS EMANATING FROM TH E DOCUMENTS ON RECORD ARE: THE ASSESSEE HAS FILED HER RETURN OF INCOME FOR THE IMPUGNED ASSESSMENT YEAR ON 2 ITA NO.523/MUM/2019(A.Y.2008-09) 11/07/2008 DECLARING TOTAL INCOME OF RS.1,43,100/-. THE SAME WAS PROCESSED UNDER SECTION 143(3) OF THE INCOME TAX ACT, 1961 ( IN SH ORT THE ACT). THE ASSESSMENT WAS REOPENED AND NOTICE UNDER SECTION 148 OF THE ACT WA S ISSUED TO THE ASSESSEE ON 30/03/2015. IN REASSESSMENT PROCEEDINGS THE ASSESS ING OFFICER MADE ADDITION OF RS.77,29,688/-. AGGRIEVED AGAINST THE ASSESSMENT O RDER DATED 23/03/2016 PASSED UNDER SECTION 143(3) R.W.S 147 OF THE ACT, THE AS SESSEE FILED APPEAL BEFORE THE CIT(A) ASSAILING ADDITION ON MERITS, AS WELL AS CHA LLENGING VALIDITY OF REASSESSMENT PROCEEDINGS. THE CIT(A) REJECTED THE CONTENTIONS O F THE ASSESSEE IN TOTO AND UPHELD THE ADDITIONS. HENCE, THE PRESENT APPEAL BY THE AS SESSEE. 3. SHRI JITENDRA SINGH APPEARING ON BEHALF OF THE ASSESSEE SUBMITTED THAT THE ADDITION OF RS.77,29,688/- WAS MADE BY ASSESSING OF FICER AS THE ASSESSEE FAILED TO SHOW SOURCE OF FUNDS. THE ASSESSEE IN ORDER TO SUBS TANTIATE SOURCE OF FUNDS HAD FURNISHED DOCUMENTS BEFORE THE ASSESSING OFFICER. THE ASSESSEE HAD FURNISHED RELEVANT DOCUMENTS ON 26/03/2016, HOWEVER, THE A SSESSING OFFICER HAD ALREADY PASSED THE ORDER ON 23/03/2016. THEREFORE, THE ASS ESSING OFFICER HAD NO OCCASION TO CONSIDER THOSE DOCUMENTS. THE ASSESSEE, THEREAFTER , IN FIRST APPELLATE PROCEEDINGS FURNISHED THE SAME SET OF DOCUMENTS BEFORE THE CIT( A). THE CIT(A) WITHOUT CONSIDERING THE SAME, IN A MECHANICAL MANNER DISMIS SED THE APPEAL OF ASSESSEE. THE LD. AUTHORIZED REPRESENTATIVE FOR THE ASSESSEE CONTENDED THAT ASSESSEE HAD ACQUIRED ANCESTRAL JEWELLERY BY WAY OF INHERIT ANCE. THE ASSESSEE IS A MEDIA CONSULTANT AND HAD PRODUCED TV SERIAL APANE RANG H AZAAR. THE ASSESSEE SUFFERED LOSS IN THE SAID PRODUCTION VENTURE. THE ASSESSEE IN ORDER TO FINANCE HIS PRODUCTION HOUSE SOLD THE JEWELLERY ACQUIRED BY WAY OF INHERIT ANCE. THE ASSESSEE HAD FILED VARIOUS DOCUMENTS INCLUDING RECEIPTS TO SUBSTANTIAT E SALE OF ANCESTRAL JEWELLERY. HOWEVER, THE DOCUMENTS FURNISHED BY THE ASSESSEE WE RE NOT TAKEN INTO 3 ITA NO.523/MUM/2019(A.Y.2008-09) CONSIDERATION. THE LD. AUTHORIZED REPRESENTATIVE F OR THE ASSESSEE PRAYED THAT IF AN OPPORTUNITY IS GRANTED TO THE ASSESSEE, THE ASSESSE E WOULD BE ABLE TO ESTABLISH THAT THE JEWELLERY SOLD WAS AN ANCESTRAL JEWELLERY ACQUI RED BY HER. 4. PER CONTRA, SHRI DROP SINGH MEENA, REPRESENTIN G THE DEPARTMENT VEHEMENTLY DEFENDED THE IMPUGNED ORDER. THE LD.DEPARTMENTAL R EPRESENTATIVE ASSERTED THAT THE DOCUMENTS FILED BY THE ASSESSEE ARE MERELY RE CEIPTS INDICATING SALE OF JEWELLERY. THERE IS NO DOCUMENT ON RECORD, THAT WOULD SHOW TH AT THE ASSESSEE HAD ACQUIRED JEWELLERY BY WAY OF INHERITANCE. THE LD.DEPARTMENT AL REPRESENTATIVE CONTENDED THAT NO PURPOSE WOULD BE SERVED BY RE-EXAMINING DOCUMENT S AS THE CIT(A) HAS ALREADY CONSIDERED THE SAME AND HAS PASSED A SPEAKING ORDER . 5. BOTH SIDES HEARD, ORDERS OF AUTHORITIES BELOW EX AMINED. UNDISPUTEDLY, THE ASSESSEE FAILED TO PRODUCE ANY EVIDENCE, WHATSOEVER BEFORE THE ASSESSING OFFICER TO SUBSTANTIATE THAT THE JEWELLERY SOLD BY THE ASSESSE E WAS ACQUIRED BY WAY OF INHERITANCE. THE ASSESSEE, PURPORTEDLY FURNISHED TH E DOCUMENTS BEFORE ASSESSING OFFICER , COPIES OF WHICH HAVE BEEN FILED BEFORE US BY WAY OF PAPER BOOK AFTER THE PASSING OF ASSESSMENT ORDER. FROM PERUSAL OF THE IMPUGNED ORDER IT IS NOT EMANATING THAT THE CIT(A) HAD CONSIDERED THE SAME. HOWEVER, WE OBSERVE THAT IN PARA 8.2 OF THE IMPUGNED ORDER, THE CIT(A) HAS REFE RRED TO THE ORDER SHEET ENTRY DATED 14/11/2018, WHEREIN THE LD.AUTHORIZED REPRES ENTATIVE OF THE ASSESSEE HAS ADMITTED THAT THERE IS NO EVIDENCE IN POSSESSION OF THE ASSESSEE APPELLANT TO PROVE THAT ANCESTRAL JEWELLERY WAS IN POSSESSION OF THE A SSESSEE. 6. TAKING INTO CONSIDERATION ENTIRETY OF FACTS, A ND IN THE INTEREST OF JUSTICE, WE DEEM IT APPROPRIATE TO RESTORE THIS APPEAL BACK TO THE FILE OF CIT(A) FOR EXAMINING THE DOCUMENTS FILED BEFORE US IN THE FORM OF PAPER BOOK CONTAINING 54 PAGES. THE CIT(A) 4 ITA NO.523/MUM/2019(A.Y.2008-09) SHALL GRANT REASONABLE OPPORTUNITY OF HEARING TO T HE ASSESSEE, IN ACCORDANCE WITH LAW BEFORE FINAL DISPOSAL OF THE APPEAL. 7. IN THE RESULT, IMPUGNED ORDER IS SET-ASIDE AND A PPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSE IN THE TERMS AFORESAID. ORDER PRONOUNCED IN THE OPEN COURT ON MONDAY, THE 17 TH DAY OF FEBRUARY, 2020. SD/- SD/- (RIFAUR RAHMAN) (VIKAS AWASTHY) ACCOUNTANT MEMBER JUDICIAL MEMBER MUMBAI, DATED 17/02/2020 VM , SR. PS(O/S) 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. BY ORDER, //TRUE COPY// (DY./ASSTT. REGISTRAR) ITAT, MUMBAI