Shri Harbhagwandas H.Chugh, Surat V. The Income tax Officer, Ward-2(2), Surat

ITA 536/AHD/2010

• Counselvise Citation: 53620514 RSA 2010
• Duration Of Justice: 2 year(s) 7 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-09-2012
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Next Hearing Date: 30-08-2012
• Assessment Year: 2006-2007
• Appeal Filed On: 17-02-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: T SHANKAR
• Assessee Lawyers: S N DIVATIA
• Keywords: Unexplained cash credit; Additional evidence

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, D BENCH, AHMEDABAD BEFORE SHRI A. K. GARODIA, ACCOUNTANT MEMBER AND SHRI KUL BHARAT, JUDICIAL MEMBER I.T.A. NO. 536/ AHD/2010 (ASSESSMENT YEAR 2006-07 SHRI HARBHAGWANDAS H CHUGH, 101, ASHOKA TOWER, RING ROAD, SURAT VS. ITO, WARD 2(3), SURAT PAN/GIR NO. : AARPC5826B (APPELLANT) .. (RESPONDENT) APPELLANT BY: SHRI S N DIVATIA, AR, RESPONDENT BY: SHRI T SHANKAR, SR. DR DATE OF HEARING: 30.08.2012 DATE OF PRONOUNCEMENT: 21.09.2012 O R D E R PER SHRI A. K. GARODIA, AM:- THIS IS ASSESSEES APPEAL DIRECTED AGAINST THE ORD ER OF LD. CIT(A) II, SURAT DATED 06.11.2009 FOR THE ASSESSMENT YEAR 2006-07. THE GROUNDS RAISED BY THE ASSESSEE ARE AS UNDER: 1.1 THE ORDER PASSED U/S.250 OF THE ACT ON 06 . 11. 2009 FOR A.Y.2006-07 BY CIT(A)-II, SURAT UPHOLDING THE ADDIT ION OF RS.4,62,054 AS UNEXPLAINED CASH CREDIT MADE BY THE AO IS WHOLLY ILLEGAL, UNLAWFUL AND AGAINST THE PRINCIPLES OF NAT URAL JUSTICE. 1.2 THE LD. CIT(A) HAS GRIEVOUSLY ERRED IN LAW AND/OR OP FACTS IN HOLDING THAT THE APPELLANT WAS SUFFICIENT TIME T O FURNISH THE REQUISITE EVIDENCE IN RESPECT OF IMPUGNED CASH CRED IT AND HENCE THERE WAS NO SUFFICIENT CAUSE FOR ADMITTING THE ADD ITIONAL EVIDENCE IN APPEAL. 2.1 THE LD. CIT(A) HAS GRIEVOUSLY ERRED IN LAW AND/OR ON FACTS IN UPHOLDING THE ADDITION OF RS.4,62,054 AS U NEXPLAINED CASH CREDIT. I.T.A.NO.236 /AHD/2010 2 2.2 THAT IN THE FACTS AND CIRCUMSTANCES OF THE CASE, THE LD. CIT(A) OUGHT NOT TO HAVE UPHELD THE IMPUGNED CASH C REDIT OF RS.4,62,054/- AS UNEXPLAINED. 2.3 THAT IN THE FACTS AND CIRCUMSTANCES OF THE CASE, THE LD. CIT(A) OUGHT TO HAVE ALLOWED THE APPELLANT TO PRODU CE ADDITIONAL EVIDENCE AND HELD THAT THE IMPUGNED CASH CREDIT WER E GENUINE. IT IS THEREFORE PRAYED THAT THE ADDITION OF RS.4,62 ,054 AS UNEXPLAINED CASH CREDIT MAY PLEASED BE DELETED BY A DMITTING ADDITIONAL EVIDENCE. 2. IT WAS SUBMITTED BY THE LD. A.R. THAT IT IS STAT ED BY THE A.O. IN THE ASSESSMENT ORDER THAT THE ASSESSEE COULD NOT FURNIS H CONFIRMATION AND PROVE THE CREDITWORTHINESS IN RESPECT OF 9 PARTIES AGGREGATING RS.4,62,054/- OUT OF TOTAL OUTSTANDING LOAN OF RS.3 4,79,054/-. IT WAS FURTHER SUBMITTED THAT A QUERY WAS RAISED BY THE A. O. VIDE ORDER SHEET ENTRY DATED 15.12.2008 AND THE ASSESSMENT WAS COMPL ETED BY THE A.O. ON 22.12.2008 AND HENCE, SUFFICIENT OPPORTUNITY WAS NO T PROVIDED BY THE A.O. HE ALSO SUBMITTED THAT THIS PLEA WAS RAISED B EFORE LD. CIT(A) BUT HE DID NOT ACCEPT THE SAME ON THIS BASIS THAT THE Q UESTIONNAIRE WAS ISSUED BY THE A.O. ON 09.05.2008 SEEKING THESE DETAILS BUT PART CONFIRMATIONS WERE PROVIDED BY THE ASSESSEE TO THE A.O. ONLY ON 1 1.11.2008 AND, THEREFORE, SUFFICIENT OPPORTUNITY WAS PROVIDED BY T HE A.O. HE SUBMITTED THAT IN THE INTEREST OF JUSTICE, ONE MORE OPPORTUNI TY SHOULD BE PROVIDED TO THE ASSESSEE. 3. AS AGAINST THIS, IT WAS SUBMITTED BY THE LD. D.R . THAT SUFFICIENT OPPORTUNITY WAS PROVIDED BY THE A.O. AND HENCE, ASS ESSEE DOES NOT DESERVE ANY MORE OPPORTUNITY. 4. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS ON THIS ASPECT AND GONE THROUGH THE ORDERS OF AUTHORITIES BELOW. CONSIDERI NG THE FACTS OF THE PRESENT CASE AS NOTED ABOVE, WE FEEL THAT IN THE IN TEREST OF JUSTICE, ONE MORE OPPORTUNITY SHOULD BE PROVIDED TO THE ASSESSEE AND HENCE, WE SET I.T.A.NO.236 /AHD/2010 3 ASIDE THE ORDER OF LD. CIT(A) AND RESTORE BACK THE MATTER TO THE FILE OF THE A.O. FOR AFRESH DECISION. THE A.O. SHOULD PASS NEC ESSARY ORDER AS PER LAW AFTER PROVIDING ADEQUATE OPPORTUNITY OF BEING H EARD TO THE ASSESSEE. 5. IN VIEW OF THE ABOVE DECISION, NO ADJUDICATION I S CALLED FOR ON MERIT OF THE ADDITION MADE BY THE A.O. AND WE DO NOT MAKE ANY COMMENT ON MERIT. 6. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSE. 7. ORDER PRONOUNCED IN THE OPEN COURT ON THE DATE M ENTIONED HEREINABOVE. SD./- SD./- (KUL BHARAT) (A. K. GARODIA) JUDICIAL MEMBER ACCOUNTANT MEMBER SP COPY OF THE ORDER FORWARDED TO: 1. THE APPLICANT 2. THE RESPONDENT 3. THE CIT CONCERNED 4. THE LD. CIT (APPEALS) 5. THE DR, AHMEDABAD BY ORDER 6. THE GUARD FILE AR,ITAT,AHMEDABAD 1. DATE OF DICTATION 13/09/12 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER 17/09/2012 OTHER MEMBER 3. DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR. P .S./P.S. 4. DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE D ICTATING MEMBER FOR PRONOUNCEMENT 21/09/2012 5. DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR. P.S./P.S.21/9/12 6. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 21/09/2012 7. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK .. 8. THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT RE GISTRAR FOR SIGNATURE ON THE ORDER . 9. DATE OF DESPATCH OF THE ORDER.