RAKESH MAHNOT, MUMBAI V. DCIT 17(3), MUMBAI

ITA 7199/MUM/2016

• Counselvise Citation: [2017] 126 COUNSELVISE.COM (IT) 8520 (ITAT-MUMBAI)
• Duration Of Justice: 11 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-11-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: Not Allotted
• Assessment Year: 2011-2012
• Appeal Filed On: 07-12-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SUMAN KUMAR
• Assessee Lawyers: GAUTAM S THACKER
• Keywords: Unexplained cash credit; Principle of natural justice
• Section: 14A; 6

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL 'B' BENCH, MUMBAI BEFORE SHRI G.S. PANNU, ACCOUNTANT MEMBER AND SHRI PAWAN SINGH, JUDICIAL MEMBER ITA NO.7199/MUM/2016 (ASSESSMENT YEAR: 2011-12) SHRI RAKESH MAHNOT VS. D C I T 17(3) C - 76, VENUS APARTMENTS THNDANI MARG WORLI, MUMBAI 400018 1 ST FLOOR, AAYAKAR BHAVAN M.K. ROAD, MUMBAI 400020 PAN AAEPM4930H APPELLANT RESPONDENT APPELLANT BY: SHRI GAUTAM S. THACKER RESPONDENT BY: SHRI SUMAN KUMAR DATE OF HEARING: 08.11.2017 DATE OF PRONOUNCEMENT: 08 .11.2017 O R D E R PER PAWAN SINGH, J.M. THIS APPEAL BY THE ASSESSEE UNDER SECTION 253 OF TH E INCOME TAX ACT IS DIRECTED AGAINST THE ORDER OF THE CIT(A)-1, MUMB AI DATED 06.10.2016 FOR A.Y. 2011-12. 2. THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS OF AP PEAL: - 1. THE HONOURABLE COMMISSIONER OF INCOME TAX (APPEAL) ERRED IN UPHOLDING THE ASSESSMENT ORDER PASSED BY THE DEPUTY COMMISSIONER OF INCOME TAX OVERLOOKING THE FACT THA T THE ASSESSMENT ORDER HAS BEEN PASSED IN GROSS VIOLATION OF THE PRINCIPLES OF NATURAL JUSTICE. 2. THE HONOURABLE COMMISSIONER OF INCOME TAX (APPEA L) ERRED IN UPHOLDING THE ADDITION OF RS. 15.54 BEING MADE UNDE R SECTION 14A R.W. RULE 8D. 3. THE HONOURABLE COMMISSIONER OF INCOME TAX (APPEA L) ERRED IN UPHOLDING THE TREATMENT OF DEPOSIT OF RS. 200000 AS UNEXPLAINED CREDIT. 4. THE HONOURABLE COMMISSIONER OF INCOME TAX (APPEA L) ERRED IN UPHOLDING THE TREATMENT OF RS. 21012110 AS UNEXPLAI NED CREDIT ITA NO.7199/MUM/2016 SHRI RAKESH MAHNOT 2 OF ALL FRESH LOANS TAKEN DURING THE YEAR AND PROPOR TIONATE INTEREST THEREON. 3. THE FACTS OF THE CASE ARE THAT THE ASSESSEE, AN IND IVIDUAL, IS ENGAGED IN THE BUSINESS OF INVESTMENT AND TRADING IN SHARES & SECURITIES AND FUTURES & OPTIONS AND ALSO PARTNER IN TWO FIRMS, I. E. M/S. ANKUR ENTERPRISES AND M/S. TEXXMAN INDIA, FILED HIS RETUR N OF INCOME FOR THE RELEVANT ASSESSMENT YEAR ON 30.09.2011 DECLARING TO TAL LOSS OF ` 1,38,86,719/-. THE ASSESSMENT WAS COMPLETED ON 24.0 3.2014 UNDER SECTION 143(3). THE AO, WHILE PASSING THE ASSESSMEN T ORDER, MADE ADDITIONS OF ` 25,54,517/-, ADDITIONS OF ` 2,00,000/- AS UNEXPLAINED CREDIT AND ` 2,10,12,100/- AS UNEXPLAINED INCOME UNDER SECTION 6 8. ON APPEAL BEFORE THE CIT(A) ALL THE ADDITIONS/DISALLOWANCE WE RE CONFIRMED. FURTHER AGGRIEVED BY THE ORDER OF THE CIT(A) THE ASSESSEE F ILED APPEAL BEFORE THE TRIBUNAL. 4. AT THE OUTSET THE LEARNED A.R. ARGUED THAT THE CIT( A) PASSED EX-PARTE ORDER AGAINST THE ASSESSEE AND CONFIRMED THE DISALL OWANCES/ADDITIONS WITHOUT GIVING FAIR AND SUFFICIENT OPPORTUNITY TO T HE ASSESSEE. THE LEARNED A.R. FURTHER ARGUED THAT THE GROUNDS OF APPEAL MAY BE RESTORED TO THE FILE OF THE LEARNED CIT(A) FOR DECISION ON MERITS WITH T HE DIRECTION TO PROVIDE SUFFICIENT OPPORTUNITY OF HEARING TO THE ASSESSEE. 5. THE LEARNED D.R. FOR REVENUE SUBMITS THAT DESPITE G IVING OPPORTUNITIES THE ASSESSEE DID NOT APPEAR ON THE DA TE OF HEARING FIXED BY THE LEARNED CIT(A). HOWEVER, ON SPECIFIC QUERY, THE LEARNED D.R. FOR RESTORING THE MATTER TO THE FILE OF LD CIT(A), THE LD DR FOR REVENUE MADE NO OBJECTION, PROVIDED ALL THE GROUNDS OF APPEAL ARE RESTORED TO THE FILE OF THE LEARNED CIT(A) FOR DECIDING THE ISSUES AFRESH. 6. WE HAVE HEARD THE RIVAL SUBMISSIONS. WE HAVE SEEN T HAT THE LEARNED CIT(A) PASSED AN EX-PARTE ORDER. CONSIDERING THE CO NTENTIONS OF THE PARTIES ALL THE GROUNDS RAISED BY THE ASSESSEE ARE RESTORED TO THE FILE OF THE CIT(A) TO DECIDE ALL THE ISSUES AFRESH. NEEDLESS TO SAY TH AT THE LEARNED CIT(A) SHALL GRANT ADEQUATE AND SUFFICIENT OPPORTUNITY TO THE AS SESSEE BEFORE PASSING ITA NO.7199/MUM/2016 SHRI RAKESH MAHNOT 3 THE ORDER. THE ASSESSEE IS ALSO DIRECTED TO FULLY C OOPERATE AND APPEAR BEFORE THE LEARNED CIT(A). THE ASSESSEE IS FURTHER DIRECTED TO PROVIDE ALL THE NECESSARY INFORMATION AND EVIDENCES AS REQUIRED BY THE LEARNED CIT(A). WITH THESE OBSERVATIONS THE GROUNDS OF APPEAL RAISE D BY THE ASSESSEE ARE ALLOWED. 7. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 8 TH NOVEMBER, 2017. SD/ - SD/ - (G.S. PANNU) (PAWAN SINGH) ACCOUNTANT MEMBER JUDICIAL MEMBER MUMBAI, DATED: 8 TH NOVEMBER, 2017 COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT(A) -28, MUMBAI 4. THE PR. CIT -17, MUMBAI 5. THE DR, B BENCH, ITAT, MUMBAI BY ORDER //TRUE COPY// ASSISTANT REGISTRAR ITAT, MUMBAI BENCHES, MUMBAI N.P.