Income Tax Officer Ward-1(3), Mysore V. Sri Changalaraya Reddy , Mysore

ITA 702/BANG/2019

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 7097 (ITAT-BANGALORE)
• Duration Of Justice: 3 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-07-2019
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2015-2016
• Appeal Filed On: 09-04-2019
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: V. SRINIVASAN; R.N.SIDDAPAJI
• Keywords: Unexplained investment; Gift; Principle of natural justice; Additional evidence; TDS; Set aside
• Section: 2; 20

Judgement Text

ITA N O .702( B)/2019 1 IN THE INCOME TAX APPELLATE TRIBUNAL BANGALORE BENCHES : B, BANGALORE BEFORE SHRI B.R.BASKARAN, ACCOUNTANT MEMBER AND SMT BEENA PILLAI, JUDICAL MEMBER ITA NO.702(BANG)/2019 (ASSESSMENT YEAR : 20 15 - 16 ) THE INCOME TAX OFFICER, WARD - 1 (3 ), M YSORE. APPELLANT VS SRI CHANGALARAYA REDDY, NO.206, 1 ST MAIN, 2 ND STAGE, BRINDAVAN EXTENSION, MYSORE PAN NO.A DBPR1223Q RESPONDENT REVENUE BY : SRI R.N.SIDDAPAJI, ADDL.CIT APPELLANT BY : SHRI V. SRINIVASAN, ADVOCATE DATE OF HEARING : 0 9 - 07 -- 2019 DATE OF PRONOUNCEMENT : O R D E R PER SMT BEENA PILLAI, JUDICIAL MEMBER PRESENT APPEAL HAS BEEN FILED BY REVENUE AGAINST ORDER DATED 31/01/19 PASSED BY LD. CIT (A), MYSORE FOR ASSESSMENT YEAR 2015 - 16 ON FOLLOWING GROUNDS OF APPEAL: ITA N O .702( B)/2019 2 1. THE LD. CIT(APPEALS) ERRED IN DELETING THE ADDITION MADE BY THE AO AMOUNTING TO RS.79,36,250/ - U/S.69 OF THE I.T.ACT, 1961 TOWARDS UNEXPLAINED INVESTMENT ADMITTING THE ADDITIONAL EVIDENCES FILED BY THE ASSESSEE WITHOUT AFFORDING AN OPPORTUNITY TO THE AO TO EXAMINE THE SAME UNDER RULE 46A OF THE INCOME TAX RULES, 1962. 2. THE LD.CIT(A) ERRED IN ADMITTING ADDIT IONAL EVIDENCES IN THE FORM OF AN AFFIDAVIT PURPORTED TO BE SIGNED BY THE ASSESSEE'S GRANDFATHER WHO WAS AGED ABOUT 99 YEARS OLD AND CLAIMED TO HAVE MADE A GIFT OF RS.79,36,250/ - IN THE FORM OF TEAK WOOD WHICH REQUIRES PROPER VERIFICATION. 3. THE LD.CIT(A) ER RED IN RELYING ON THE AFFIDAVIT EVEN THOUGH THE AO POINTED OUT THAT THE DONOR HAD NOT MENTIONED QUANTUM/VOLUME OF WOOD GIVEN BY WAY OF GIFT. 4. THE LD.CIT(APPEALS) ERRED IN DELETING THE ADDITION EVEN THOUGH THE RTC ISSUED BY THE TALUK OFFICE ON 03.12.2014 CONFIRMED THE PRESENCE OF TEAK WOOD TREES AS ON THAT DATE AND HENCE ASSESSEE'S STATEMENT THAT THE TEAK WOOD WERE CUT LONG BACK COULD NOT BE SUBSTANTIATED. 5. FOR THESE AND SUCH OTHER GROUNDS THAT MAY BE URGED AT THE TIME OF HEARING, THE ORDER OF THE ITA N O .702( B)/2019 3 LD.CIT(APPEALS) MAY BE SET ASIDE AND THAT OF THE AO BE RESTORED. PRELIMINARY ISSUE RAISED BY REVENUE BEING GROUND NO. 1 IS IN RESPECT OF VIOLATION OF RULE 46A BY LD.CIT (A). LD.SR.DR SUBMITTED THAT, ASSESSEE FURNISHED SOME AFFIDAVIT OF ALLEDGED CARPENTER AND A CERTIFICATE ISSUED BY DEPUTY CONSERVATOR OF FORESTS, FOREST MOBILE SQUAD, BANGALORE, IN RESPECT OF STATUS OF CERTAIN TEAK WOOD TREES. HE SUBMITTED THAT THE GENUINENESS OF THE TRANSACTION HAS NOT BEEN VERIFIED BY LD.AO THEREBY CAUSI NG PREJUDICE TO THE REVENUE. IT HAS BEEN SUBMITTED THAT THESE DOCUMENTS WERE NOT SUBJECTED TO VERIFICATION BY LD.AO DURING THE 1 ST APPELLATE PROCEEDINGS AND THEREFORE PRINCIPLES OF NATURAL JUSTICE HAVE BEEN VIOLATED. LD.SR.DR THUS REQUESTED FOR THE MATTER TO BE REMANDED FOR VERIFICATION OF THE SAME IN RESPECT OF ALLEGED CLAIMS. LD.AR DID NOT OBJECT TO THE REQUEST BY LD.SR.DR. CONSIDERING THE SUBMISSIONS ADVANCED BY BOTH SIDES, WE ARE INCLINED TO SET ASIDE THE ISSUE TO LD.CIT (A). LD.CIT (A), SHALL CALL FOR REMAND REPORT FROM LD.AO, WHO SHALL VERIFY ALL DETAILS SUBMITTED BY ASSESSEE AS PER LAW ASSESSEE IS DIRECTED TO PRODUCE ALL NECESSARY DOCUMENTS AS CALLED FOR BY LD.AO IN THE REMAND PROCEEDINGS. ACCORDINGLY WE ALLOW THE GROUNDS RAISED BY REVENUE FOR STATIS TICAL PURPOSES. IN THE RESULT APPEAL FILED BY REVENUE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON ITA N O .702( B)/2019 4 ORDER PRONOUNCED IN THE OPEN COURT ON (B.R.BASKARAN) (BEENA PILLAI) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: *AM COPY OF THE ORDER FORWARDED TO: 1.APPELLANT; 2.RESPONDENT; 3.CIT; 4.CIT(A); 5. DR 6. ITO (TDS) 7.GUARD FILE BY ORDER ASST. REGISTRAR