The ITO, Ward-1, GANDHIDHAM V. Late Shri Hirji Govind Hadia, L/H Shri Prakash Hirji Hadia, Adipur-Kutch

ITA 564/RJT/2015

• Counselvise Citation: [2022] 105 COUNSELVISE.COM (IT) 7946 (ITAT-RAJKOT)
• Duration Of Justice: 6 year(s) 3 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-02-2022
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 1995-1996
• Appeal Filed On: 08-11-2015
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL “RAJKOT” BENCH, RAJKOT [Conducted through E-Court at Ahmedabad] BEFORE SHRI MAHAVIR PRASAD, JUDICIAL MEMEBR & SMT. ANNAPURNA GUPTA, ACCOUNTANT MEMEBR आयकर अपील सं./I.T.A. No. 564/Rjt/2015 ( Assess ment Ye ar : 1995-96) In co me T ax Of fi ce r W ar d- 1, G an dh id ha m ब म/ V s . La te S hri H ir ji G o vi nd Ha di a L/h S hr i Pr ak as h Hi rji Ha dia Pl ot No .1 28 , W a rd - 4/ B, 10 1 Gee ta A pa rt me nt – Ad ip ur (K ) यी ल सं./ ीआ आर सं./P A N / G IR N o . : A A P P H 7 4 1 4 J (अपील Appellant) . . ( य / Respondent) अपील र स /Appellant by : Shri Nihar Ranjan Samal, Sr. D.R. य क र स / Respondent by : Shri Vimal Desai, A.R. स क र D a t e o f H e a r i n g 16/02/2022 !"# क र /D a t e o f P r o n o u n c e m e n t 25/02/2022 ORDER PER MAHAVIR PRASAD, JM: The captioned appeal has been filed at the instance of the Revenue against the order of the Commissioner of Inco me Tax (Appeals), Ja mnagar (‘C IT (A)’ in short) vide Appeal No. CIT(A)/ Ja m/0093/10-11/554, dated 31.08.2015 arising in the ITA No.564/Rjt/2015 [ITO vs. Late Shri Hirji Govind Hadia] AY 1995-96 - 2 - assessment order dated 29.12.2010 passed by the Asse ssing Officer (AO) under s. 143(3) r.w.s. 254(1) o f the In come Tax Act, 1961 (the Ac t) concerning AY. 1995-96. 2. The ground of ap peal raised by Re venue as under: “ T h e C I T ( A ) e r r e d i n l a w a n d o n f a c t s i n d e l e t i n g th e a d d i t i o n o f R s . 2 , 6 1 , 3 7 , 4 6 9 / - m a d e i n t h e h a n d s o f l e g a l r e p r e s en t a t i v e o f t h e a s s e s s e e o n a / c o f c o m p e n s a t i o n r e c e i v e d . ” 3. The facts of the case are that this is second round before the ITAT and earlier Tribunal set aside the matter to the file of the AO directing to make a fresh assessment. Subsequently, in the de novo assessment proceedings, the AO repeated the addition and taxed the sa me again in the hands of the assessee by contending that assessee was bound to discharge the tax liability of the deceased. In this case, the compensation of Rs.2,61,37,467/- was given in favour of th e father of the assessee Late Shri Hirji Govind Hadia. When this compensatio n was given, fat her of the assessee already died. During life time o f the deceased father, the legal heir Shri Prakash Hi rj i Hadia used to stay with hi m. During the assessment proceedings by the learned AO, it is re vealed that the legal heir Shri Prakash Hirji Hadia have operated two bank accounts with the bank at The Bhuj Mercantile Co.Op. Bank Ltd., Ah me dabad. The parti culars of the bank account details as under: ITA No.564/Rjt/2015 [ITO vs. Late Shri Hirji Govind Hadia] AY 1995-96 - 3 - Legal Hier Pra ka sh Hirji Hadia Sr. No. Account No. Nature of account Na me of the Jt. Holder Account operated till date 01 50726 Savings Single Closed on 24.09.2003 02 54299 Savings Single Till the . date of 30.09.2010 03 54600 Savings Govind J. Hadia Closed on 19.10.2005 The joint accou nt w as held by Legal hire Pra kash Hirji Hadia with Shri Govind Jakhu Hadia of parner of M/s Govind ja khu & Co mpany w ith account No .54600. The said account w as operated fro m 20.09.2005 to 19.10.2005 Since, the total compensation of Rs.2,61,37 ,469/- was received but no taxes have been paid. Shri Hirji Govind Hadia was expire d on 26.10.1999. No detailed enquiries have been made by either by the AO or by the CIT(A). T he CIT(A) mentioned in his order that he sought remand report fro m the learned AO but d espite of the re mi nder no re mand report was submitted to the learned CIT(A). Since, CIT (A)’s power is co-terminus with power of AO; he can ask for all details required to adjudicate the issue and to our mind, he ought to have conducted detailed enquiry at his level but same was not done in the case in our hand and same is amount to mi scarriage of ju stice. The refore , we set aside this matter back to the file of the CIT(A) to decide the matter afresh after making detailed enquiry within 180 days fro m the receipt of ITA No.564/Rjt/2015 [ITO vs. Late Shri Hirji Govind Hadia] AY 1995-96 - 4 - this order as per l aw. We make it clear that assesse e shall not seek unnecessary adjournment in the matte r and shall cooperate with th e learned CIT(A). 4. In the re sult, the appeal of the R evenue is allowed for statistical purposes. Sd/- Sd/- ( ANNAPUR NA GUP TA) (MAHAVIR PRASAD) ACC OUNTANT MEMB ER JUDICIAL MEMBER Ahmedabad: Dated 25/02/2022 True Copy S.K.SINHA आदेश े / Copy of Order Forwarded to:- $. र / Revenue 2. आ दक / Assessee '. सं(ं)* आयकर आय + / Concerned CIT 4. आयकर आय + - अपील / CIT (A) .. / 0 1ीय 2 2 )*3 आयकर अपील य अ)*कर#3 अ45द ( द / DR, ITAT, Ahmedabad 6. 1 78 9 ल / Guard file. By order/आद श स 3 D e p u t y / A s s t t . R e g i s t r a r I T A T , R a j k o t This Order pronounced in Open Court on 25/02/2022