Pushapanayagam Ashwin Bharath, CHENNAI V. ACIT Non Corp. Circle 15(1), CHENNAI

ITA 684/CHNY/2019

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 7807 (ITAT-CHENNAI)
• Duration Of Justice: 4 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-07-2019
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: C
• Assessment Year: 2014-2015
• Appeal Filed On: 18-03-2019
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: R CLEMENT RAMESH KUMAR
• Assessee Lawyers: S R RAAMAN
• Keywords: Gift; Opportunity of being heard; Additional evidence
• Section: 143(3); 143(1)

Judgement Text

, , IN THE INCOME-TAX APPELLATE TRIBUNAL C BENCH, CHENNAI . , , BEFORE SHRI DUVVURU RL REDDY, JUDICIAL MEMBER & SHRI S. JAYARAMAN, ACCOUNTANT MEMBER ./ I.T.A. NO.684/CHNY/2019 / ASSESSMENT YEAR: 2014-15 SHRI PUSHPANAYAGAM ASHWIN BHARATH, NO.3, 3 RD EAST STREET, KAMARAJAR NAGAR, THIRUVANMIYUR, CHENNAI - 600 041. [PAN: ABGPA 3165M] VS. THE ASSISTANT COMMISSIONER OF INCOME TAX, NON-CORPORATE CIRCLE-15(1), CHENNAI. ( /APPELLANT) ( /RESPONDENT) / APPELLANT BY : SHRI S.R. RAAMAN, CA / RESPONDENT BY : SHRI R. CLEMENT RAMESH KUMAR, ADDL.CIT / DATE OF HEARING : 04.07.2019 /DATE OF PRONOUNCEMENT : 19.07.2019 / O R D E R PER DUVVURU RL REDDY, JUDICIAL MEMBER: THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF THE LD. COMMISSIONER OF INCOME TAX (APPEALS)-16, CHENNAI, DATED 03.12.2018 RELEVANT TO THE ASSESSMENT YEAR 2014-15. THE GROUND RAISED BY THE ASSESSEE IS THAT THE LD. CIT(A) HAS ERRED IN CONFIRMING THE ADDITION MADE TOWARDS UNEXPLAINED GIFTS AND UNEXPLAINED UNSECURED LOANS RECEIVED BY THE ASSESSEE. I.T.A. NO. 684/CHNY/19 2 2. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE FILED ITS RETURN OF INCOME FOR THE ASSESSMENT YEAR 2014-15 ON 08.05.2015 DECLARING INCOME OF . 31,09,590/-. THE RETURN FILED BY THE ASSESSEE WAS PROCESSED UNDER SECTION 143(1) OF THE INCOME TAX ACT, 1961 [ACT IN SHORT]. SUBSEQUENTLY, THE CASE OF THE ASSESSEE WAS TAKEN UP FOR SCRUTINY. AFTER CONSIDERING THE DETAILS FILED AGAINST STATUTORY NOTICES, THE ASSESSMENT UNDER SECTION 143(3) OF THE ACT WAS COMPLETED BY ASSESSING INCOME OF THE ASSESSEE AT . 1,10,67,802/- BY MAKING VARIOUS ADDITIONS. 3. THE ASSESSEE CARRIED THE MATTER IN APPEAL AND CONTESTED AGAINST ADDITION TOWARDS UNSECURED LOAN AS WELL AS GIFTS TREATED AS INCOME IN THE HANDS OF THE ASSESSEE. DESPITE SERVICE OF NOTICE, NONE APPEARED ON BEHALF OF THE ASSESSEE. HENCE, CONSIDERING THE FACTS OF THE CASE AND MATERIALS AVAILABLE ON RECORD, THE LD. CIT(A) PROCEEDED TO ADJUDICATE THE ISSUES ON MERITS AND DECIDED THE APPEAL AGAINST THE ASSESSEE. 4. ON BEING AGGRIEVED, THE ASSESSEE IS IN APPEAL BEFORE THE TRIBUNAL. BY FILING A PETITION FOR ADMISSION OF ADDITIONAL EVIDENCE, THE LD. COUNSEL FOR THE ASSESSEE HAS SUBMITTED THAT THE ADDITIONS WERE MADE BY THE ASSESSING OFFICER WITHOUT GIVING SUFFICIENT OPPORTUNITY TO THE ASSESSEE SINCE THE ASSESSEE IS AN NRI AND THE TIME GIVEN WAS NOT SUFFICIENT FOR HIM TO PROVE HIS CASE BEFORE THE AUTHORITIES BELOW. I.T.A. NO. 684/CHNY/19 3 5. ON THE OTHER HAND, THE LD. DR RELIED ON THE ORDERS OF AUTHORITIES BELOW. 6. WE HAVE HEARD BOTH THE SIDES, PERUSED THE MATERIALS AVAILABLE ON RECORD AND GONE THROUGH THE ORDERS OF AUTHORITIES BELOW. FROM THE DETAILS FILED BY THE ASSESSEE, THE ASSESSING OFFICER NOTICED THAT THE ASSESSEE HAS RECEIVED GIFTS AND AVAILED UNSECURED LOAN FROM HIS CLOSE RELATIVES TO AVOID PAYMENT OF INTEREST ON INTEREST BEARING LOAN FROM ANY FINANCIAL INSTITUTIONS. ACCORDINGLY, THE ASSESSING OFFICER DETERMINED THE UNEXPLAINED GIFTS OF . 38,00,000/- AND UNEXPLAINED UNSECURED LOANS OF . 40,00,000/-. DURING THE COURSE OF APPELLATE PROCEEDINGS, THE ASSESSEE COULD NOT FURNISH CONFIRMATION LETTERS WITH RESPECT TO THE GIFTS AND THE UNSECURED LOANS. MOREOVER, SINCE, THE ASSESSEE HAS NOT FURNISHED ANY OTHER MATERIAL ON RECORD LIKE THE RETURNS OF INCOME OR PAN NUMBERS OR THE BANK ACCOUNTS OF THE PERSONS FROM WHOM HE HAD RECEIVED THE GIFTS AND UNSECURED LOANS ETC., THE LD. CIT(A) UPHELD THE ADDITION. BEFORE THE BENCH, THE LD. COUNSEL FOR THE ASSESSEE FILED A PETITION FOR ADMISSION OF ADDITIONAL EVIDENCE ENCLOSING CONFIRMATION FROM VARIOUS INVESTORS, CONTAINING PAYMENT DETAILS WITH ADDRESS, WHICH WERE NOT FILED BEFORE THE AUTHORITIES BELOW. ACCORDINGLY, WE REMIT THE MATTER BACK TO THE FILE OF THE ASSESSING OFFICER TO VERIFY THE DETAILS AND DECIDE BOTH THE ISSUES AFRESH IN ACCORDANCE WITH LAW AFTER ALLOWING AN OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. I.T.A. NO. 684/CHNY/19 4 7. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED ON THE 19 TH JULY, 2019 IN CHENNAI. SD/- SD/- (S. JAYARAMAN) ACCOUNTANT MEMBER (DUVVURU RL REDDY) JUDICIAL MEMBER CHENNAI, DATED, 19.07.2019 VM/- /COPY TO: 1. / APPELLANT, 2. / RESPONDENT, 3. ( ) /CIT(A), 4. /CIT, 5. /DR & 6. /GF.