Abu Estates (P) Ltd., Chidambaram V. JCIT, CHENNAI

ITA 548/CHNY/2015

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 90744 (ITAT-CHENNAI)
• Duration Of Justice: 4 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-07-2015
• Appeal Filed By: Assessee
• Bench Allotted: A
• Next Hearing Date: 23-07-2015
• Assessment Year: 2003-2004
• Appeal Filed On: 16-03-2015
• Court: TRIBUNAL
• Department Lawyers: P RADHAKRISHNAN
• Assessee Lawyers: V D GOPAL

Judgement Text

, , IN THE INCOME-TAX APPELLATE TRIBUNAL A BENCH, CHE NNAI . , . ! ! ! ! , ' ' ' ' # # # # $ $$ $ BEFORE SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER & SHRI V. DURGA RAO, JUDICIAL MEMBER I.T.A. NOS. 546, 547, 548 AND 549/MDS/2015 ASSESSMENT YEARS: 1997-98, 1989-90, 2003-04 & 2004- 05 M/S. ABU ESTATES (P) LTD., GNANAGURU CONSULTANCY, NO. 121-A, EAST CAR STREET, CHIDAMBARAM 608 001. [PAN : AAACA6345F] VS. THE JOINT/DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE II(1), CHENNAI 600 034. (APPELLANT) (RESPONDENT) %& ' ( /APPELLANT BY : SHRI V.D. GOPAL, ADVOCATE )*%& ' ( /RESPONDENT BY : SHRI P. RADHAKRISHNAN, JCIT ' + /DATE OF HEARING : 23.07.2015 ,- ' + / DATE OF PRONOUNCEMENT : 31.07.2015 . . . . / O R D E R PER BENCH THESE FOUR APPEALS FILED BY THE SAME ASSESSEE ARE D IRECTED AGAINST DIFFERENT ORDERS OF THE LD. COMMISSIONER OF INCOME TAX (APPEALS) 19, CHENNAI, ALL DATED 28.11.2014 RELEVANT TO THE ASSESSMENT YEA RS 1997-98, 1989-90, 2003-04 AND2004-05. 2. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE I S A PRIVATE LIMITED COMPANY AND DOING BUSINESS OF HOSPITALITY. THE ASSE SSEE FILED ITS RETURN OF INCOME FOR THE ASSESSMENT YEAR 1997-98 BY ADMITTING LOSS OF .49,19,541/-. THE ASSESSING OFFICER, WHILE COMPLETING THE ASSESSM ENT, DISALLOWED THE CLAIM OF THE ASSESSEE IN RESPECT OF UNSECURED LOAN TO THE EXTENT OF .13,43,000/-. I.T.A. I.T.A. I.T.A. I.T.A.NO NONO NOS SS S. .. .54 5454 546 66 6- -- -549 549549 549/M/ /M/ /M/ /M/15 1515 15 2 3. THE ASSESSEE CARRIED THE MATTER IN APPEAL BEFOR E THE LD. CIT(A). THE LD. CIT(A) HAS GIVEN AS MANY AS OPPORTUNITIES TO THE AS SESSEE ON DIFFERENT DATES, HOWEVER, THE ASSESSEE HAS NOT APPEARED BEFORE THE L D. CIT(A) OR FILED ANY WRITTEN EXPLANATION ON THE MERITS OF THE CASE SUPPO RTED BY DOCUMENTARY EVIDENCES OR EVEN SOUGHT FOR ANY ADJOURNMENT. THERE FORE, THE LD. CIT(A) PASSED EX-PARTE ORDER BY CONSIDERING THE MATERIAL A VAILABLE ON RECORD AND OBSERVED THAT THE ASSESSEE HAS NOT TAKEN ANY EFFORT WITH ANY MATERIAL OR EVIDENCE TO SHOW AS TO HOW THE UNSECURED LOANS WERE GENUINE. ACCORDINGLY, ON BOTH COUNTS, THE LD. CIT(A) DISMISSED THE APPEAL OF THE ASSESSEE. 4. THE ASSESSEE FILED APPEAL BEFORE THE TRIBUNAL A ND SUBMITTED THAT ONE MORE OPPORTUNITY MAY BE GIVEN TO THE ASSESSEE TO SU BSTANTIATE HIS CASE BY FILING ALL NECESSARY MATERIAL EVIDENCE BEFORE THE A SSESSING OFFICER. 5. ON THE OTHER HAND, THE LD. DR HAS SUBMITTED THA T THE LD. CIT(A) HAS GIVEN SUFFICIENT OPPORTUNITIES TO THE ASSESSEE, BUT THE ASSESSEE HAS NOT FILED ANY DETAILS BEFORE THE LD. CIT(A). THEREFORE, THE L D. CIT(A) PASSED EX-PARTE ORDER ON MERITS AND HE RELIED ON THE ORDERS OF AUTH ORITIES BELOW. 6. WE HAVE HEARD BOTH SIDES, PERUSED THE MATERIALS ON RECORD AND GONE THROUGH THE ORDERS OF AUTHORITIES BELOW. THE ASSESS EE IS A PRIVATE LIMITED COMPANY AND DOING BUSINESS OF HOSPITALITY. THE ASSE SSEE HAS FILED RETURN OF INCOME. WHEN THE ASSESSEE WAS ASKED TO PROVE THE GE NUINENESS OF THE UNSECURED LOANS, THE ASSESSEE COULD NOT PRODUCE THE PERSONS FROM WHOM LOANS WERE STATED TO HAVE BEEN RECEIVED. THEREFORE, THE ASSESSING OFFICER I.T.A. I.T.A. I.T.A. I.T.A.NO NONO NOS SS S. .. .54 5454 546 66 6- -- -549 549549 549/M/ /M/ /M/ /M/15 1515 15 3 DISALLOWED THE UNSECURED LOANS TO THE EXTENT OF .13,43,000/- AND ADDED TO THE INCOME OF THE ASSESSEE. ON APPEAL BEFORE THE LD . CIT(A), THE ASSESSEE HAS ALSO NOT APPEARED AND NOT FILED ANY DETAILS. NO W BEFORE US, THE ASSESSEE HAS FILED AN AFFIDAVIT WITH REGARD TO ALL THE ABOVE APPEALS BY STATING THAT FROM THE DATE OF THE ORDER OF THE TRIBUNAL WITHIN TWO MO NTHS, THE ASSESSEE WILL APPEAR BEFORE THE ASSESSING OFFICER AND READY TO FI LE ALL THE DETAILS AND PRAYED THAT ONE MORE OPPORTUNITY MAY BE GIVEN. UNDE R THESE FACTS AND CIRCUMSTANCES, IN THE INTEREST OF JUSTICE, WE ARE O F THE OPINION THAT THE ASSESSEE HAS TO BE GIVEN ONE MORE OPPORTUNITY TO SU BSTANTIATE HIS CASE BEFORE THE ASSESSING OFFICER. THEREFORE, WE SET ASI DE THE ORDER PASSED BY THE LD. CIT(A) AND REMIT THE MATTER BACK TO THE ASSESSI NG OFFICER AND DIRECT THE ASSESSEE TO FILE ALL THE DETAILS WITHIN TWO MONTHS FROM THE DATE OF ORDER OF THE TRIBUNAL AND ACCORDINGLY WE DIRECT THE ASSESSING OF FICER TO DECIDE THE ISSUE AFRESH IN ACCORDANCE WITH LAW. THUS, ALL THE APPEAL S FILED BY THE ASSESSEE ARE ALLOWED FOR STATISTICAL PURPOSES. 7. IN THE RESULT, ALL THE APPEALS FILED BY THE ASS ESSEE ARE ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED ON FRIDAY, THE 31 ST OF JULY, 2015 AT CHENNAI. SD/- SD/- (A. MOHAN ALANKAMONY) ACCOUNTANT MEMBER (V. DURGA RAO) JUDICIAL MEMBER CHENNAI, DATED, THE 31.07.2015 VM/- I.T.A. I.T.A. I.T.A. I.T.A.NO NONO NOS SS S. .. .54 5454 546 66 6- -- -549 549549 549/M/ /M/ /M/ /M/15 1515 15 4 . ' )'+01 21-+ /COPY TO: 1. %& / APPELLANT, 2. )*%& / RESPONDENT, 3. 3 ( ) /CIT(A), 4. 3 /CIT, 5. 14 )'+' /DR & 6. 5! 6 /GF.