ACIT, Pondicherry V. Shri R.Raghu, Pondicherry

ITA 562/CHNY/2012

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 64100 (ITAT-CHENNAI)
• Duration Of Justice: 4 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-08-2012
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 02-08-2012
• Assessment Year: 2006-2007
• Appeal Filed On: 16-03-2012
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Additional evidence

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH : CHENNAI [BEFORE SHRI N.S. SAINI, ACCOUNTANT MEMBER AND SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER] I.T.A.NO.562/MDS/2012 ASSESSMENT YEAR : 2006-07 THE ACIT CIRCLE I PONDICHERRY VS SHRI R. RAGHU NO.42, 8 TH CROSS ROAD RAINBOW NAGAR PONDICHERRY [PAN AHQPR 2895 B] (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI SHAJI P. JACOB, ADDL. CIT RESPONDENT BY : SHRI CKN RAVISHANKARA PRABHU, CA DATE OF HEARING : 02-08-2012 DATE OF PRONOUNCEMENT : 02-08-2012 O R D E R PER N.S. SAINI, ACCOUNTANT MEMBER THIS IS AN APPEAL FILED BY THE REVENUE AGAINST THE ORDER OF THE CIT(A)-XII, CHENNAI, DATED 23.12.2011. 2. THE REVENUE HAS TAKEN SEVEN GROUNDS OF APPEAL. THE DR SUBMITTED THAT THE ONLY GRIEVANCE OF THE REVENUE I N THIS APPEAL IS THAT THE DECISION OF THE CIT(A) IN HOLDING THAT THE ADDI TION MADE UNDER ADDITIONAL INCOME OFFERED FOR THE CAPITAL INCREASE IN M/S CHEMIN CONTROLS AND INSTRUMENTATION PVT. LTD OF ` 12 LAKHS, BASED ON THE I.T.A.NO. 562/12 :- 2 -: SWORN STATEMENT OF SHRI P. RANGARAJ, ASSESSEES FA THER ON 12.12.2008 IS CONTRARY TO FACTS. 3. THE DR ARGUED THAT THE ASSESSING OFFICER HAS MADE AN ADDITION OF ` 12 LAKHS TO THE INCOME OF THE ASSESSEE ON THE BAS IS OF SWORN STATEMENT OF THE ASSESSEES FATHER SHRI P.RA NGARAJ, ON 12.12.2008, WHEREIN IN ANSWER TO QUESTION NO.7, HE HAD STATED THAT AS HE DID NOT HAVE ANY PROPER EXPLAINABLE SOURCE FOR T HE SHARE CAPITAL INCREASE IN THE COMPANY, HE WISHED TO ADMIT ` 30 LAKHS AS AN ADDITIONAL INCOME FOR HIMSELF AND HIS SON, OF WHICH ` 18 LAKHS WAS TO BE ASSESSED IN HIS HANDS AND ` 12 LAKHS IN THE HANDS OF HIS SON OVER AND ABOVE THE NORMAL INCOME DISCLOSED BY HIM AS WEL L AS BY HIS SON. HE SUBMITTED THAT THE CIT(A), AT PAGE 4 IN THIRD PA RA OF HIS ORDER, HAS STATED THAT THE ASSESSEE ALSO FURNISHED THE DETAIL S AND SOURCES OF THE CAPITAL OF ` 12 LAKHS INTRODUCED IN THE COMPANY. THIS INTRODUC TION WAS NOT BY WAY OF CASH. IT WAS BY WAY OF TRANSFER ENTR IES ALREADY EXISTING IN THE BOOKS OF THE COMPANY AS OPENING BALANCES WHI CH COMPRISED OF TRANSFER OF BUSINESS OF THE ERSTWHILE PROPRIETORY C ONCERN. HE SUBMITTED THAT THE CIT(A), WHILE DELETING THE ADDIT ION, HAS RELIED ON THESE ADDITIONAL EVIDENCES WHICH WERE NOT FURNISHED BEFORE THE ASSESSING OFFICER AND THE CIT(A) HAS NOT CALLED FOR ANY REMAND REPORT FROM THE ASSESSING OFFICER BEFORE ACCEPTING THE SAM E. I.T.A.NO. 562/12 :- 3 -: 4. THE A.R OF THE ASSESSEE VERY FAIRLY CONCEDED THAT HE HAS NO OBJECTION IF THE MATTER IS REMANDED BACK TO THE FIL E OF THE ASSESSING OFFICER FOR ADJUDICATING THE ISSUE AFRESH AFTER CON SIDERING THE EVIDENCES FILED BEFORE THE CIT(A) AND CONSIDERED BY HIM WHILE DELETING THE ADDITION. HE SUBMITTED THAT THE TRIBUNAL IN I.T.A. NO. 1194/MDS/2011 VIDE ORDER DATED 13.3.2012, IN THE CASE OF ASSESS EES FATHER ALSO RESTORED THE MATTER TO THE FILE OF THE ASSESSING OF FICER FOR FRESH ADJUDICATION OF THE ISSUE. 5. AFTER CONSIDERING THE RIVAL SUBMISSIONS, WE ARE OF THE CONSIDERED VIEW THAT AS BOTH THE PARTIES BEFORE US HAVE AGREED THAT THE MATTER SHOULD GO BACK TO THE FILE OF THE ASSESS ING OFFICER FOR ADJUDICATING THE ISSUE AFRESH AFTER VERIFYING THE E VIDENCES FILED BEFORE THE CIT(A) WHICH WERE NOT FILED BEFORE THE ASSESSIN G OFFICER, WE SET ASIDE THE ORDER OF THE CIT(A) AND REMAND THE MATTER BACK TO THE FILE OF THE ASSESSING OFFICER FOR ADJUDICATING THE ISSUE AF RESH AFTER PROPER VERIFICATION AND AFTER ALLOWING REASONABLE OPPORTUN ITY OF BEING HEARD TO THE ASSESSEE. THE ASSESSEE IS ALSO DIRECTED TO F ILE ALL THE EVIDENCES BEFORE THE ASSESSING OFFICER AS AND WHEN CALLED UPO N TO DO SO. THUS, THE GROUNDS OF APPEAL OF THE REVENUE ARE ALLOWED FO R STATISTICAL PURPOSES. I.T.A.NO. 562/12 :- 4 -: 6. IN THE RESULT, THE APPEAL OF THE REVENUE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT AT THE TIME OF H EARING ON THURSDAY , THE 02 ND OF AUGUST, 2012, AT CHENNAI SD/- SD/- (SATBEER SINGH GODARA) JUDICIAL MEMBER (N.S.SAINI) ACCOUNTANT MEMBER DATED: 02 ND AUGUST, 2012 RD COPY TO: APPELLANT/RESPONDENT/CIT(A)/CIT/DR