Laxminarayan Bajoria, Bakharabad V. Pr.CIT-1, Bhubaneswar

ITA 53/CTK/2022

• Counselvise Citation: [2022] 106 COUNSELVISE.COM (IT) 7313 (ITAT-CUTTACK)
• Duration Of Justice: 4 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-09-2022
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2017-2018
• Appeal Filed On: 20-04-2022
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Set aside
• Section: 263; 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, BEFORE AND ARUN KHODPIA, ACCOUNTANT MEMBER Laxmi Narayan Bajoria, Bakhrabad, Cuttack PAN/GIR No. (Appellant Per Bench This is an appeal filed by the assessee ag CIT -1, Bhubaneswar under section 143(3)/263 of the Act in Appeal No. assessment year 2. Shri Mohit Sheth, ld AR appeared for the assessee and Shri M.K.Gautam, ld CIT DR appeared for the revenue. 3. It was submitted by ld AR that the assessment came to be completed under section 143(3) on 1.12.2019 in the case of the assessee, who is an HUF. In the course of assessment, an amount of Rs.74,935/ IN THE INCOME TAX APPELLATE TRIBUNAL, CUTTACK BENCH, CUTTACK BEFORE S/SHRI GEORGE MATHAN, JUDICIAL AND ARUN KHODPIA, ACCOUNTANT MEMBER ITA No.53/CTK/2022 Assessment Year : 2017-18 Laxmi Narayan Bajoria, Bakhrabad, Cuttack Vs. Pr. CIT-1, Bhubaneswar PAN/GIR No.AAAHL 2135 D (Appellant) .. ( Respondent Assessee by : Shri Mohit Sheth, AR Revenue by : Shri M.K.Gautam, CIT Date of Hearing : 14 /9 Date of Pronouncement : 14/9 O R D E R This is an appeal filed by the assessee against the order of the ld Pr. 1, Bhubaneswar under section 143(3)/263 of the Act in Appeal No. ITBA/Rev/F/Rev5/20231-22/1040279950(1) assessment year 2017-18. Shri Mohit Sheth, ld AR appeared for the assessee and Shri M.K.Gautam, ld CIT DR appeared for the revenue. It was submitted by ld AR that the assessment came to be completed r section 143(3) on 1.12.2019 in the case of the assessee, who is an HUF. In the course of assessment, an amount of Rs.74,935/ Page1 | 3 IN THE INCOME TAX APPELLATE TRIBUNAL, JUDICIAL MEMBER AND ARUN KHODPIA, ACCOUNTANT MEMBER 1, Bhubaneswar Respondent) Mohit Sheth, AR : Shri M.K.Gautam, CIT DR 9/2022 9/2022 ainst the order of the ld Pr. 1, Bhubaneswar under section 143(3)/263 of the Act dated 2.3.2022 22/1040279950(1) for the Shri Mohit Sheth, ld AR appeared for the assessee and Shri It was submitted by ld AR that the assessment came to be completed r section 143(3) on 1.12.2019 in the case of the assessee, who is an HUF. In the course of assessment, an amount of Rs.74,935/- has been ITA No.53/CTK/2022 Assessment Year : 2017-18 Page2 | 3 added representing certain cash deposit in the bank account during the de- monetization period. It was further submitted that subsequently, the Pr. CIT proposed action under section 263 on the ground that there was cash deposits of Rs.7,00,000/- in Canara Bank, Badambadi Branch A/C No.2566261010023. It was the submission that this account is related to the proprietary concern of Laxmi Narayan Bazoria, individual under the name and style of M/s. Mahalaxmi & Co. It was the submission that the revision was proposed in the case of HUF and revision has been directed in the case of individual. It was the submission that the order passed u/s.263 is liable to be quashed. 4. In reply, ld CIT DR vehemently supported the order of the Pr. CIT. It was his submission that the proprietor Shri Laxminarayan Bajoria, individual was Karta of Laxminarayan Bajoria, HUF and as a Karta of HUF, the cash deposit by him in the bank account should be treated as part of income of HUF. He submitted that the revision proceedings u/s.263 as also the order u/s.263 is liable to be upheld. 5. We have considered the rival submissions. A perusal of the order of the Pr. CIT u/s.263 of the Act shows that the order u/s.263 has been proposed in the case of HUF of Laxminarayan Bajoria. The assessment refers to for the purpose of revision is also that of HUF of Laxminarayan Bajoria. A perusal of para 6.1 of the order of the Pr. CIT shows that the Pr. CIT has set aside the assessment to consider the source of deposit of rs.7 ITA No.53/CTK/2022 Assessment Year : 2017-18 Page3 | 3 lakhs in the hands of Laxminarayan Bajoria, individual. This is not permissible. The revision u/s.263 cannot be invoked in the case of HUF and direction issued in the case of Laxminarayan Bajoria, individual. This being so, we are of the view that the order u/s.263 is unsustainable and consequently, quash the same. 6. In the result, appeal of the assessee stands allowed. Order dictated and pronounced in the open court on 14/9/2022. Sd/- sd/- (Arun Khodpia) (George Mathan) ACCOUNTANT MEMBER JUDICIAL MEMBER Cuttack; Dated 14/9/2022 B.K.Parida, SPS (OS) Copy of the Order forwarded to : By order Sr.Pvt.secretary ITAT, Cuttack 1. The Appellant : Laxmi Narayan Bajoria, Bakhrabad, Cuttack 2. The Respondent: Pr. CIT-1, Bhubaneswar 3. The CIT(A)-, Cuttack 4. DR, ITAT, Cuttack 5. Guard file. //True Copy//