Sri Hanumaiah Srinivas , Bangalore V. The Income Tax Officer Ward-6(2)(4), Bangalore

ITA 574/BANG/2018

• Counselvise Citation: [2018] 126 COUNSELVISE.COM (IT) 5473 (ITAT-BANGALORE)
• Duration Of Justice: 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-03-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2014-2015
• Appeal Filed On: 01-03-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: L V BHASKAR REDDY
• Assessee Lawyers: LOKESH JAIN
• Keywords: Business income; Opportunity of being heard; Additional evidence
• Section: 144

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL SMC-C BENCH : BANGALORE BEFORE SHRI ARUN KUMAR GARODIA, ACCOUNTANT MEMBER ITA NO. 574 / BANG/201 8 ASSESSMENT YEAR : 20 14 - 15 SHRI HANUMAIAH SRINIVAS, NO. 39/29/1, 2 ND MAIN, 2 ND CROSS, K.N. EXTENSION, YESHWATHAPURA, BANGALORE 560 022. PAN: DKOPS1969F VS. THE INCOME-TAX OFFICER, WARD 6 (2) (4), BANGALORE. APPELLANT RESPONDENT APPELLANT BY : SHRI LOKESH JAIN, CA RESPONDENT BY : SHRI L.V. BHASKAR REDDY, ADDL. CIT (DR) DATE OF HEARING : 20 . 0 3 .2018 DATE OF PRONOUNCEMENT : 20 . 0 3 .201 8 O R D E R PER SHRI A.K. GARODIA, ACCOUNTANT MEMBER THIS APPEAL IS FILED BY THE ASSESSEE WHICH IS DIREC TED AGAINST THE ORDER OF LD. CIT(A)-7, BANGALORE DATED 08.12.2017 FOR ASSESSMENT YEAR 2014-15. 2. THE GROUNDS RAISED BY THE ASSESSEE ARE AS UNDER. 1. THE ORDER OF THE LD. COMMISSIONER OF INCOME TAX (APPEALS)('CIT(A)') IS OPPOSED TO LAW, FACTS AND CI RCUMSTANCES OF THE CASE. 2. THE ORDER IS PASSED IN HASTE, WITHOUT PROVIDING SUFFICIENT AND REASONABLE OPPORTUNITY OF BEING HEARD. 3. THE ORDER IS PASSED AGAINST THE PRINCIPLE OF NAT URAL JUSTICE AND THUS LIABLE TO BE QUASHED. 4. THE LD. CIT(A) ERRED IN NOT CONSIDERING THE EVID ENCE PRODUCED BY THE APPELLANT DURING THE APPELLATE PROCEEDINGS, ALT HOUGH THE APPELLANT HAS FURNISHED SUFFICIENT REASON FOR NOT F URNISHING BEFORE LOWER AUTHORITIES. 5. THE LD. CIT(A) HAS FAILED TO NOTE THAT THE LD. A SSESING OFFICER ('LD. AO') HAS NOT RECORDED HIS FINDINGS OR OBSERVATIONS IN ITS REMAND REPORT ON EXAMINING THE ADDITIONAL EVIDENCE PRODUCE D BY THE APPELLANT. 6. THE LD. CIT(A) HAS ERRED IN CONFIRMING THE ADDIT ION OF LD. AO OF RS. 10,87,800/-, BEING CASH DEPOSITED BY THE APPELL ANT IN M/S. SRI. ITA NO.574/BANG/2018 PAGE 2 OF 3 SUDHA CO-OPERATIVE BANK LTD. WHICH WAS OUT OF HIS W ITHDRAWALS FROM BANK ACCOUNTS HELD AND OUT OF HIS INCOME EARNED FRO M MILK BUSINESS WHICH HAS BEEN OFFERED AS BUSINESS INCOME. THE APPELLANT SEEKS YOUR LEAVE TO ADD, ALTER, AMEND OR DELETE ANY OF THE GROUNDS URGED AT THE TIME OF HEARING. 3. AT THE VERY OUTSET, IT WAS SUBMITTED BY LD. AR O F ASSESSEE THAT ASSESSMENT ORDER PASSED BY THE AO IS BEST JUDGMENT ASSESSMENT ORDER PASSED BY THE AO U/S. 144 AND BEFORE CIT (A) THE ASSESSEE REQUESTED FOR ADMISSION OF ADDITIONAL EVIDENCE WHICH IS NOT ADMITTED BY CIT (A). HE SUBM ITTED THAT IN THE INTEREST OF JUSTICE, THE CIT(A) SHOULD HAVE ADMITTED THE ADDITI ONAL EVIDENCE AND THEN HE SHOULD HAVE DECIDED THE ISSUE ON MERIT. THE LD. DR OF REVENUE SUPPORTED THE ORDER OF CIT (A) AND SUBMITTED THAT AS PER RULE 46A OF IT RULES, ADMISSION OF ADDITIONAL EVIDENCE IS NOT PROPER. 4. I HAVE CONSIDERED THE RIVAL SUBMISSIONS AND I FE EL THAT IN THE INTEREST OF JUSTICE, THE CIT (A) SHOULD HAVE ADMITTED THE ADDITIONAL EVI DENCE. HENCE I SET ASIDE THE ORDER OF CIT (A) AND RESTORE THE MATTER BACK TO HIS FILE FOR FRESH DECISION AFTER ADMITTING THE ADDITIONAL EVIDENCE AND AFTER P ROVIDING ADEQUATE OPPORTUNITY OF BEING HEARD TO BOTH SIDES. 5. IN VIEW OF THIS DECISION, NO ADJUDICATION IS CAL LED FOR REGARDING THE MERIT OF THE CASE AT THIS STAGE AND HENCE, I DO NOT MAKE ANY COM MENT ON THE MERIT OF THE CASE. 6. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON THE DATE MENT IONED ON THE CAPTION PAGE. SD/- (ARUN KUMAR GARODIA) ACCOUNTANT MEMBER BANGALORE, DATED, THE 20 TH MARCH, 2018. /MS/ ITA NO.574/BANG/2018 PAGE 3 OF 3 COPY TO: 1. APPELLANT 4. CIT(A) 2. RESPONDENT 5. DR, ITAT, BANGALORE 3. CIT 6. GUARD FILE BY ORDER SENIOR PRIVATE SECRETARY, INCOME TAX APPELLATE TRIBUNAL, BANGALORE.