R.Dorairaj, Cuddalore V. ACIT Cuddalore Circle, Cuddalore

ITA 640/CHNY/2019

• Counselvise Citation: [2019] 115 COUNSELVISE.COM (IT) 5741 (ITAT-CHENNAI)
• Duration Of Justice: 6 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-10-2019
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: C
• Assessment Year: 2015-2016
• Appeal Filed On: 13-03-2019
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Keywords: Salary income

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH: CHENNAI . , !' # $% , & !' %' BEFORE SHRI DUVVURU RL REDDY , JUDICIAL MEMBER AND SHRI S. JAYARAMAN, ACCOUNTANT MEMBE R # ./ ITA NO.640/CHNY/2019 ( )( /ASSESSMENT YEAR: 2015-16 SHRI R. DORAIRAJ, GOKULAM # 1, GRK ESTATE, IMPERIAL ROAD, THIRUPPAPULIYUR, CUDDALORE 607 001. VS. THE ASST. COMMISSIONER OF INCOME TAX, CUDDALORE CIRCLE, SOORAPPANAICKEN CHAVADI, CUDDALORE 607 002. [PAN: ACMPD 1216B] ( *+ /APPELLANT) ( ,-*+ /RESPONDENT) *+ . / / APPELLANT BY : SHRI ANANDD BABUNATH, FCA ,-*+ . / /RESPONDENT BY : SHRI R. CLEMENT RAMESH KUMAR, ADDL.JCIT . 0& /DATE OF HEARING : 08.07.2019 12) . 0& / DATE OF PRONOUNCEMENT : 03.10.2019 !3 / O R D E R PER SHRI S. JAYARAMAN, ACCOUNTANT MEMBER : THE ASSESSEE FILED THIS APPEAL AGAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS), PUDUCHERRY, I N ITA NO.58/CIT(A)-PDY/2017-18 DATED 25.02.2019 FOR THE A SSESSMENT YEAR (AY) 2015-16. ITA NO.640/CHNY/2019 :- 2 -: 2. R. DORAIRAJ, THE ASSESSEE, IS AN INDIVIDUAL DERI VING INCOME FROM SALARY AS MANAGING DIRECTOR FROM GRK THEATRE PVT. L TD., INCOME FROM HOUSE PROPERTIES, INCOME FROM BUSINESS AS PROPRIETO R OF M/S. GARUDALAYA SURFACE TRANSPORT (BUS OPERATION INCOME) , M/S. RASI AGENCIES (DEALER OF INDIAN OIL RUNNING A PETROL PUM P) AND M/S. GRK ARIA MOVIES (DEALING IN MOVIE RIGHTS) & AS PARTNER OF M/S. GRK CASTROL, AND INCOME FROM OTHER SOURCES. WHILE MAKING THE AS SESSMENT FOR AY 2015-16, THE ASSESSING OFFICER (AO) AFTER AFFORDING ADEQUATE OPPORTUNITY TO THE ASSESSEE ADDED UNSECURED LOAN OF RS. 1,75,50 ,000/- STANDING IN THE NAME OF MR. MUTHU AND MRS. PREMA G AND COMPLETE D THE ASSESSMENT. AGGRIEVED AGAINST THE ORDER OF THE AO, THE ASSESSEE FILED AN APPEAL BEFORE CIT(A). THE LD. CIT(A) DISMISSED THE APPEAL. AGGRIEVED AGAINST THAT ORDER OF THE LD. CIT(A), THE ASSESSEE FILED THIS APPEAL. 3. THE LD. AUTHORIZED REPRESENTATIVE SUBMITTED THAT WHEN THE AO RECORDED THE STATEMENT FROM MRS. PREMA G, SHE CONFI RMED THE REPAYMENT MADE TO MR. R.DORAIRAJ, THE ASSESSEE. UN FORTUNATELY, THE LOAN WHICH WAS PROVIDED FROM THE PRIVATE LIMITED CO MPANY IN WHICH MR. R. DORAIRAJ WAS A MANAGING DIRECTOR IS NOT PROPERLY ENQUIRED INTO. THE ASSESSEE ENGAGED A FINANCE AGENT, MR. MUTHU, THROUG H HIM UNSECURED LOAN OF RS. 1,58,50,000/- WAS RECEIVED THROUGH VARI OUS PERSONS ON ITA NO.640/CHNY/2019 :- 3 -: VARIOUS DATES THROUGH BANKING CHANNEL AND THEY WERE CREDITED IN THE BANK ACCOUNT OF THE ASSESSEE MAINTAINED WITH INDIAN OVERSEAS BANK, PUDUPALAYAM BRANCH, CUDDALORE. INVITING OUR ATTENTI ON TO THE PAPER BOOK, THE LD. AR SUBMITTED THAT THE DATE OF DEPOSIT S THE AMOUNT RECEIVED, THE NAME OF THE PARTY/LENDER/ISSUER OF CHEQUE, AND WHEN IT WAS DEPOSITED INTO THE ASSESSEES BANK ACCOUNT ETC. SUB MITTED THAT THE IMPUGNED SUMS WERE TRANSFERRED FROM DIFFERENT BANKS FROM CUDDALORE, THANJAVUR AND TRICHY ETC. SINCE, THE ASSESSEE HAD M AINTAINED THESE RECEIPTS IN THE NAME OF MR. MUTHU, THE FINANCE AGEN T, WHO ARRANGED THE ABOVE LOANS FROM DIFFERENT LENDERS, FOR EASY IDENTI FICATION AND PROPER ACCOUNTING THESE WERE KEPT IN THE NAME OF FINANCE A GENT, MR. MUTHU, IN THE ACCOUNTS. THESE LOANS WERE REPAID DURING THE Y EAR FROM THE ASSESSEES BANK ACCOUNT TO THE EXTENT OF 50 LAKHS. THE LD. AR INVITED OUR ATTENTION TO THE PAPER BOOK, WHEREIN THE AMOUNT S PAID TO SOME OF THE PARTIES THROUGH BANKING ACCOUNT AFTER DEBITING BANK CHARGES ETC. WERE MENTIONED. IT IS SUBMITTED THAT THE ASSESSEE HAS D EPUTED A PERSON TO OBTAIN THE ASSESSMENT PARTICULARS FROM THESE LOAN C REDITORS AND IT IS EXPECTED SHORTLY AS IT IS PERTAINS TO FINANCIAL YEA R 2014-15. SINCE, THE FINANCE AGENT BEING NOT TRACEABLE AND ALSO NOT IN G OOD TERMS WHEN HE COMPLETED THE TRANSACTIONS WITH THE ASSESSEE, THERE IS DELAY IN OBTAINING CONFIRMATION AND THE ASSESSMENT PARTICULARS. THERE FORE, THE LD. AR ITA NO.640/CHNY/2019 :- 4 -: PLEADED THAT AN OPPORTUNITY MAY KINDLY BE GIVEN TO THE ASSESSEE FOR FURNISHING SUCH A PARTICULARS BEFORE THE AO SO THAT THE AO AFTER DUE CONFIRMATION AND VERIFICATION OF DETAILS THAT WOULD BE SUBMITTED BY THE ASSESSEE EITHER ALLOW THE CLAIM/MAKE THE ADDITION O N MERITS IN THE CASE OF EACH OF SUCH A CREDITOR. PER CONTRA, THE LD. DR SUPPORTED THE ORDERS OF THE LOWER AUTHORITIES. 4. WE HEARD THE RIVAL SUBMISSIONS AND GONE THROUGH THE RELEVANT MATERIAL ON RECORD. SINCE, THE ASSESSEE IS PLEADING THAT THE FINANCE AGENT, WHO ARRANGED THE LOANS IS NOT BEING TRACEABL E AND HE IS ALSO NOT IN GOOD TERMS AFTER THE COMPLETION OF THE TRANSACTI ONS WITH THE ASSESSEE AND THE ASSESSEE IS WILLING TO OBTAIN THE ASSESSMEN T PARTICULARS FROM THESE LOAN CREDITORS OR FURNISH CONFIRMATION LETTER S, AS THE CASE MAY BE, WE DEEM IT FIT TO REMIT THE ISSUES IN THIS APPEAL B ACK TO THE AO FOR A FRESH EXAMINATION. THE ASSESSEE SHALL FURNISH THE CONFIRM ATION LETTERS OR THE ASSESSMENT PARTICULARS AND OTHER RELEVANT RECORDS O N WHICH IT RELIES IN SUPPORT OF ITS CONTENTION BEFORE THE AO WITHIN 90 DAYS FROM THE RECEIPT OF THIS ORDER AND COMPLY WITH REQUIREMENTS OF THE AO IN ACCORDAN CE WITH LAW. THE AO IS ALSO AT LIBERTY TO CONDUCT APP ROPRIATE ENQUIRY, AS DEEMED FIT. HOWEVER, HE SHALL FURNISH ADEQUATE OPP ORTUNITY TO THE ASSESSEE ON THE MATERIAL ETC. THAT IS TO USED AGAIN ST THE ASSESSEE AND AFTER CONSIDERING ASSESSEES REPLY, PASS THE ORDER IN ACCORDANCE WITH ITA NO.640/CHNY/2019 :- 5 -: LAW. THE ASSESSEES APPEAL IS TREATED AS PARTLY ALL OWED FOR STATISTICAL PURPOSE. 5. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS TREATED AS PARTLY ALLOWED FOR STATISTICAL PURPOSE. ORDER PRONOUNCED IN THE OPEN COURT ON 03 RD OCTOBER, 2019 IN CHENNAI. SD/- SD/- ( . ) ( DUVVURU RL REDDY) /JUDICIAL MEMBER ( . ) (S. JAYARAMAN) /ACCOUNTANT MEMBER /CHENNAI, 4!# /DATED: 03 RD OCTOBER, 2019 . EDN, SR. P.S !3 . , 056 76)0 /COPY TO: 1. *+ /APPELLANT 2. ,-*+ /RESPONDENT 3. 80 ( )/CIT(A) 4. 80 /CIT 5. 69: , 0 /DR 6. :( ; /GF