M/s. Karwar Service Station, Karwar V. Income-Tax Officer, Ward- 1, Karwar

ITA 72/PAN/2014

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 93608 (ITAT-PANAJI)
• Duration Of Justice: 1 year(s) 5 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-07-2015
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: DB
• Next Hearing Date: 28-07-2015
• Assessment Year: 2006-2007
• Appeal Filed On: 26-02-2014
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: S NATARAJ LD
• Assessee Lawyers: GAJENDRA BABU
• Keywords: Unexplained investment

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PANAJI BENCH, PANAJI BEFORE SHRI N.S. SAINI, HON'BLE ACCOUNTANT MEMBER AND SHRI GEORGE MATHAN, HONBLE JUDICIAL MEMBER ITA NOS. 71 & 72 /PNJ/2014 : (A.YS 2005 - 06 & 2006 - 07) M/S. KARWAR SERVICE STATION N.H. 17, BINAGA KARWAR PAN : AAHFK2297E (APPELLANT) VS. INCOME TAX OFFICER, WARD 1, KARWAR (RESPONDENT) ASSESSEE BY : GAJENDRA BABU, CA REVENUE BY : S. NATARAJ, LD. DR DATE OF HEARING : 28/07/2015 DATE OF PRONOUNCEMENT : 28/07/2015 O R D E R PER GEORGE MATHAN : 1. ITA NO. 71/PNJ/2014 IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF THE LD. CIT(A), MYSORE IN ITA NO. 10/KWR/CIT(A)MNG/2008 - 09 DT. 4.12.2013 FOR A.Y 2005 - 06 AND ITA NO. 72/PNJ/2014 IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF THE LD. CIT(A), MYSORE IN ITA NO. 11/KWR/CIT(A)MNG/2008 - 09 DT. 4.12.2013 FOR A.Y 2006 - 07. SHRI GAJENDRA BABU, CA REPRESENTED ON BEHALF OF THE ASSESS EE AND SHRI S. NATARAJ, LD. DR REPRESENTED ON BEHALF OF THE REVENUE. 2. IT WAS SUBMITTED BY THE LD. AR THAT THE ASSESSEE IS A PARTNERSHIP FIRM CONSISTING OF THREE PARTNERS BEING FATHER AND TWO SONS. IT WAS THE SUBMISSION THAT THE FATHER , WHO WAS THE MANA GING PARTNER AND IN - CHARGE OF THE DAY - TO - DAY AFFAIRS OF THE PARTNERSHIP FIRM , DIED IN 2009. IT WAS THE SUBMISSION THAT THE 2 ITA NOS. 71 & 72/PNJ/2014 (A.YS : 2005 - 06 & 2006 - 07) ASSESSESE WAS HAVING A PETROL PUMP AT KARWAR. IT WAS THE SUBMISSION THAT THE PETROL PUMP WAS FUNCTIONAL FROM A.Y 2004. IT WAS THE SUBMISSION THAT AS THE ASSESSEES MAIN PARTNER EXPIRED IN 2009, THE BUSINESS OF THE ASSESSEE WAS ALSO CLOSED IN 2010. IT WAS THE SUBMISSION THAT CONSEQUENT TO THE DEATH OF THE MANAGING PARTNER, THE ASSESSEES APPEALS COULD NOT BE REPRESENTED PROPERLY. IT WAS THE SUBMISSION THAT FOR THE A.Y 2005 - 06, ADDITION OF RS.4,13,225/ - REPRESENTING PURCHASE OF DD IN RESPECT OF PURCHASES FROM INDIAN OIL CORPORATION AS ON 31.3.2005 HAD BEEN MADE TREAT ING IT AS UNEXPLAINED INVESTMENT AND FOR A.Y 2006 - 07, AN ADDITION OF RS. 3,99,578/ - HAD BEEN MADE ON ACCOUNT OF EXCESS OF ASSETS OVER LIABILITIES. IT WAS THE SUBMISSION THAT THE ASSESSEE NOW HAS ALL THE DETAILS REQUIRED FOR REPRESENTING ITS CASE. IT WAS THE SUBMISSION THAT THE ASSESSEE MAY BE GRANTED ANOTHER OPPORTUNITY T O SUBMIT THE DETAILS BEFORE THE AO. IT WAS THE PRAYER THAT THE ISSUES IN BOTH THE APPEALS MAY BE RESTORED TO THE FILE OF THE AO FOR RE - ADJUDICATION. THE LD. AR SPECIFICALLY ADMITTED THAT HE WOULD APPEAR BEFORE THE AO ON THE SPECIFIED DAY AS DIRECTED BY T HE TRIBUNAL. 3. IN REPLY, THE LD. DR DID NOT RAISE ANY SERIOUS OBJECTIONS. 4. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS. CONSIDERING THE FACT THAT THE ASSESSEES MANAGING PARTNER EXPIRED IN 2009 AND THE ASSESSEES BUSINESS HAS COME TO A CLOSE IN 2010 A ND ALSO TAKING INTO CONSIDERATION THE FACT THAT THE ASSESSEE WAS UNABLE TO REPRESENT ITS CASE PROPERLY BEFORE THE LOWER AUTHORITIES, IN THE INTEREST OF JUSTICE THE ISSUES IN BOTH THE SE APPEALS ARE RESTORED TO THE FILE OF THE AO FOR RE - ADJUDICATION. TAKING INTO CONSIDERATION THE COMMITMENT GIVEN BY THE LD. AR ON BEHALF OF THE ASSESSEE, IT IS DIRECTED THAT THE ASSESSEE SHALL APPEAR BEFORE THE AO ON 10.8.2015 WITH ALL EVIDENCES AS AVAILABLE TO REPRESENT ITS CASE AND THE AO SHALL AFTER GRANTING THE ASSESSEE AD EQUATE OPPORTUNITY TO 3 ITA NOS. 71 & 72/PNJ/2014 (A.YS : 2005 - 06 & 2006 - 07) SUBSTANTIATE ITS CASE, IF NECESSARY, CALL FOR FURTHER EVIDENCES AND RE - DECIDE THE ISSUES RAISED IN THESE APPEALS IN ACCORDANCE WITH THE LAW. 5. IN THE RESULT, THE APPEALS OF THE ASSESSEE ARE PARTLY ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 28/07/2015. S D / - (N.S. SAINI) ACCOUNTANT MEMBER S D / - ( GEORGE MATHAN ) JUDICIAL MEMBER PLACE : PANAJI / GOA DATED : 28/07/ 201 5 *SSL* COPY TO : (1) APPELLANT (2) RESPONDENT (3) CIT(A) CONCERNED (4) CIT CONCERNED (5) D.R (6) GUARD FILE TRUE COPY, BY ORDER , 4 ITA NOS. 71 & 72/PNJ/2014 (A.YS : 2005 - 06 & 2006 - 07) DATE INITIAL ORIGINAL DICTATION PAD & DRAFT ORDER ARE ENCLOSED IN THE FILE 1. DRAFT DICTATED ON 28/07/2015 SR.PS 2. DRAFT PLACED BEFORE AUTHOR 28/07/2015 SR.PS 3. DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER 2 9 /07/2015 JM/AM 4. DRAFT DISCUSSED/APPROVED BY SECOND MEMBER 2 9 /07/2015 JM/AM 5. APPROVED DRAFT COMES TO THE SR.PS/PS 2 9 /07/2015 SR.PS 6. DATE OF PRONOUNCEMENT 28/07/2015 SR.PS 7. FILE SENT TO THE BENCH CLERK 2 9 /07/2015 SR.PS 8. DATE ON WHICH FILE GOES TO THE HEAD CLERK 9. DATE OF DISPATCH OF ORDER