S. Muthaiah, Davangere V. DCIT, Bangalore

ITA 670/BANG/2016

• Counselvise Citation: [2016] 121 COUNSELVISE.COM (IT) 3717 (ITAT-BANGALORE)
• Duration Of Justice: 6 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-09-2016
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: C
• Assessment Year: 2009-2010
• Appeal Filed On: 30-03-2016
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: TSHERING ONGDA J
• Assessee Lawyers: V SRINIVASAN
• Keywords: Search and seizure; Reasonable cause
• Section: 143(3); 132; 10

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, BANGALORE BEFORE S MT. ASHA VIJAYARAGHAVAN, JUDICIAL MEMBER AND SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER ITA NO S . 670 TO 672/ BANG/20 16 (ASSESSMENT YEAR S : 2009 - 10 TO 2011 - 12 ) SHRI S.MUTHAIAH, NO.762 /13, DHATRI, I STAGE, 2 ND CROSS, OPP. ST.JOHNS HIGH SCHOOL, SHIVAKUMAR SWAMY BADAVANE, DAVANGERE - 577005. PAN: BEXPS 3420 N VS. APPELLANT DEPUTY COMMISSIONER OF INCOME - TAX, CENTRAL CIRCLE 1(3), BANGALORE. RESPONDENT APPE LLANT BY : SHRI V.SRINIVASAN, ADVOCATE. RESPONDENT BY : SHRI TSHERING ONGDA, JCIT(DR). DATE OF HEARING : 27/09/2016 DATE OF PRONOUNCEMENT : 30 /09/2016 O R D E R PER I NTURI RAMA RAO, AM : THESE ARE APPEALS FILED BY THE ASSESSEE AGAINST COM MON ORDER OF THE LEARNED COMMISSIONER OF INCOME - TAX(APPEALS) - 11, [CIT(A)], BANGALORE, DATED 12/02/2016, FOR THE ASSESSMENT YEARS 2009 - 10 TO 2011 - 12. 2. THE ASSESSEE RAISED THE FOLLOWING GROUNDS OF APPEAL: ITA NO S . 670 TO 672 /BANG/201 6 PAGE 2 ITA NO S . 670 TO 672 /BANG/201 6 PAGE 3 3. BRIEFLY FACTS OF THE CAS E ARE THAT THE SEARCH AND SEIZURE OPERATIONS U/S 132 OF THE INCOME - TAX ACT, 1961 [HEREINAFTER REFERRED TO AS 'THE ACT' FOR SHORT] WERE CONDUCTED IN THE PREMISES OF THE ASSESSEE ON 25/10/2010 AS A RESULT OF WHICH CERTAIN INCRIMINATING MATERIAL WAS FOUND. C ONSEQUENTLY, NOTICE U/S 153 A WAS ISSUED AND THE ASSESSMENT WAS COMPLETED U/S 143(3) R.W.S.153 A OF THE ACT ON 26/3/2013. 4. BEING AGGRIEVED, APPEALS WERE PREFERRED BEFORE THE CIT(A) WHO VIDE IMPUGNED ORDER, HAD DISMISSED THE APPEALS FOR NON - PROSECUT ION AS WELL AS FOR DELAY FOR CONDONATION IN FILING OF THE APPEAL. 5. BEING AGGRIEVED, ASSESSEE IS BEFORE US IN THE PRESENT APPEALS. IT WAS ARGUED THAT THE ASSESSEE COULD NOT APPEAR BEFORE THE CIT(A) DUE TO THE FACT THAT HE WAS IN JUDICIAL CUSTODY ON A CR IMINAL PROCEEDINGS IMPLICATING HIM IN A CRIMINAL OFFENCE. IT WAS SUBMITTED THAT THIS IS SUFFICIENT REASONABLE CAUSE FOR NOT CAUSING APPEARANCE BEFORE THE CIT(A). IN THE LIGHT OF THIS, IT IS SUBMITTED THAT THE MATTERS MAY BE RESTORED BACK TO THE FILE OF T HE CIT(A) FOR FRESH ADJUDICATION IN ACCORDANCE WITH LAW. ITA NO S . 670 TO 672 /BANG/201 6 PAGE 4 THE LEARNED DEPARTMENTAL REPRESENTATIVE HAS NO OBJECTION FOR THIS PROPOSITION. 6. AFTER HEARING RIVAL SUBMISSIONS, WE ARE OF THE CONSIDERED OPINION THAT THE CIT(A) HAD PASSED AN EX - PARTE ORDER FOR NON - PROSECUTION OF THE APPEAL. HOWEVER, WE ARE SATISFIED THAT THE ASSESSEE WAS PREVENTED BY SUFFICIENT AND REASONABLE CAUSE FOR NOT CAUSING APPEARANCE BEFORE THE CIT(A) AS HE WAS IN JUDICIAL CUSTODY IN A CRIMINAL PROCEEDINGS AGAINST HIM. THEREFORE, WE RE MAND THE MATTERS BACK TO THE FILE OF THE CIT(A) FOR FRESH DISPOSAL IN ACCORDANCE WITH LAW. 7. IN THE RESULT, THE APPEALS FILED BY THE ASSESSEE ARE PARTLY ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 30 TH SEPTEMBER , 2016 S D/ - SD/ - (ASHA VIJAYARAGHAVAN) (INTURI RAMA RAO) JUDICIAL MEMBER ACCOUNTANT MEMBER PLACE : BANGALORE D A T E D : 30 /0 9 /2016 SRINIVASULU, SPS COPY TO : 1 APPELLANT 2 RESPONDENT 3 CIT(A) - II BANGALORE 4 CIT 5 DR, ITAT, BANGALOR E. 6 GUARD FILE BY ORDER ASSISTANT REGISTRAR INCOME - TAX APPELLATE TRIBUNAL BANGALORE