Shanthi devi, CHENNAI V. ITO, CHENNAI

ITA 709/CHNY/2017

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 6295 (ITAT-CHENNAI)
• Duration Of Justice: 4 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-08-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2007-2008
• Appeal Filed On: 23-03-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: B SAHADEVAN
• Assessee Lawyers: R PADMANABHAN
• Keywords: Additional evidence
• Section: 68

Judgement Text

, / , IN THE INCOME TAX APPELLATE TRIBUNAL B SMC BENCH, CHENNAI ... , BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER !./ ITA NO.709/MDS/2017 # $%# / ASSESSMENT YEAR : 2007-08 SMT. SHANTHI DEVI, NO.33, VEERAPPAN STREET, SOWCARPET, CHENNAI - 600 079. PAN : AABP 4282 G V. THE INCOME TAX OFFICER, ITO NCW 6(3), CHENNAI - 600 034. ('(/ APPELLANT) ()*'(/ RESPONDENT) '( + , / APPELLANT BY : SHRI R. PADMANABHAN, CA )*'( + , / RESPONDENT BY : SHRI B. SAHADEVAN, JCIT - $ + ./ / DATE OF HEARING : 07.08.2017 01% + ./ / DATE OF PRONOUNCEMENT : 18.08.2017 / O R D E R THIS APPEAL OF THE ASSESSEE IS DIRECTED AGAINST T HE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS) 5, CHENN AI, DATED 27.02.2017 AND PERTAINS TO ASSESSMENT YEAR 2007-08. 2. SHRI R. PADMANABHAN, THE LD. REPRESENTATIVE FOR THE ASSESSEE, SUBMITTED THAT THE CIT(APPEALS) CALLED FO R REMAND REPORT FROM THE ASSESSING OFFICER. A COPY OF THE REMAND R EPORT WAS ALSO GIVEN TO THE ASSESSEE ON 15.02.2017. THE ASSESSEE COULD NOT 2 I.T.A. NO.709/MDS/17 FURNISH THE OBJECTION BEFORE THE COMMISSIONER. THE ASSESSEE HAS NOW FILED ADDITIONAL EVIDENCE IN THE FORM OF AFFIDA VIT WHICH NEEDS TO BE EXAMINED. ACCORDING TO THE LD. REPRESENTATIVE, SINCE THE ADDITION WAS MADE UNDER SECTION 68 OF THE INCOME-TA X ACT, 1961 (IN SHORT 'THE ACT'), THE ASSESSING OFFICER HAS TO EXAM INE WHETHER THE CLAIM MADE BY THE ASSESSEE WITH REGARD TO BORROWAL OF FUNDS IS SUBSTANTIATED. THEREFORE, ACCORDING TO THE LD. REP RESENTATIVE, AN OPPORTUNITY MAY BE GIVEN TO THE ASSESSEE BY REMITTI NG THE MATTER BACK TO THE FILE OF THE ASSESSING OFFICER. 3. I HAVE HEARD SHRI B. SAHADEVAN, THE LD. DEPARTME NTAL REPRESENTATIVE ALSO. THE LD. D.R. SUBMITTED THAT T HE CIT(APPEALS) CALLED FOR REMAND REPORT FROM THE ASSESSING OFFICER AND A COPY WAS ALSO GIVEN TO THE ASSESSEE GIVING AN OPPORTUNITY TO FILE HER OBJECTION, IF ANY. THE ASSESSEE HAD NOT FILED ANY OBJECTION TO THE REMAND REPORT. THEREFORE, THE CIT(APPEALS) COMPLET ED THE ASSESSMENT ON THE BASIS OF THE MATERIAL AVAILABLE O N RECORD. THE AFFIDAVIT FILED BEFORE THIS TRIBUNAL IN THE FORM OF ADDITIONAL EVIDENCE WAS NOT AVAILABLE BEFORE THE AUTHORITIES BELOW. 4. I HAVE CONSIDERED THE SUBMISSIONS MADE BY THE LD . REPRESENTATIVE FOR THE ASSESSEE AND THE LD. D.R. A DMITTEDLY, THE 3 I.T.A. NO.709/MDS/17 CIT(APPEALS) CALLED FOR REMAND REPORT AND A COPY OF WHICH WAS GIVEN TO THE ASSESSEE ON 15.02.2017 ASKING FOR HER COMMENTS, IF ANY. THE ASSESSEE HAD NOT FILED ANY COMMENTS ON TH E REMAND REPORT AND NOBODY APPEARED BEFORE THE CIT(APPEALS) ON THE DATE OF HEARING, I.E. ON 21.02.2017. THEREFORE, THE CIT(AP PEALS) COMPLETED THE ASSESSMENT ON THE BASIS OF MATERIAL AVAILABLE O N RECORD. NOW THE ASSESSEE HAS FILED ADDITIONAL EVIDENCE IN THE F ORM OF AFFIDAVIT FROM THE PERSON WHO WAS SAID TO BE LENT MONEY TO TH E ASSESSEE. THIS ADDITIONAL EVIDENCE NEEDS TO BE EXAMINED. THI S TRIBUNAL BEING A FINAL FACT FINDING AUTHORITY, THE FACTS HAVE TO B E SETTLED AT THE TRIBUNAL LEVEL. THE AFFIDAVIT FILED BEFORE THIS TR IBUNAL WAS NOT EXAMINED BY BOTH THE AUTHORITIES BELOW. THEREFORE, THIS TRIBUNAL IS OF THE CONSIDERED OPINION THAT THE MATTER NEEDS TO BE RE-EXAMINED BY THE ASSESSING OFFICER. ACCORDINGLY, THE ORDERS OF THE AUTHORITIES BELOW ARE SET ASIDE AND THE ADDITION MADE BY THE AS SESSING OFFICER UNDER SECTION 68 OF THE ACT IS REMITTED BACK TO THE FILE OF THE ASSESSING OFFICER. THE ASSESSING OFFICER SHALL RE- EXAMINE THE MATTER AFRESH IN THE LIGHT OF THE ADDITIONAL EVIDEN CE FILED BY THE ASSESSEE AND THEREAFTER DECIDE THE ISSUE IN ACCORDA NCE WITH LAW, AFTER GIVING A REASONABLE OPPORTUNITY TO THE ASSESS EE. 4 I.T.A. NO.709/MDS/17 5. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED ON 18 TH AUGUST, 2017 AT CHENNAI. SD/- ( ... ) (N.R.S. GANESAN) /JUDICIAL MEMBER /CHENNAI, 3! /DATED, THE 18 TH AUGUST, 2017. KRI. + ).45 65%. /COPY TO: 1. '( /APPELLANT 2. )*'( /RESPONDENT 3. - 7. () /CIT(A)-5, CHENNAI-34 4. PRINCIPAL CIT-9, CHENNAI 5. 5$8 ). /DR 6. 9# : /GF.