ITO, Kaithal V. Sh. Suresh Kumar, Cheeka

ITA 753/CHANDI/2015

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 95658 (ITAT-CHANDIGARH)
• Duration Of Justice: 2 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-11-2015
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: Not Allotted
• Assessment Year: 2011-2012
• Appeal Filed On: 28-08-2015
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: MANJIT SINGHDR
• Assessee Lawyers: S K MUKHI
• Keywords: Unexplained cash credit; Opportunity of being heard
• Section: 68

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH,CHANDIGARH BEFORE SHRI BHAVNESH SAINI, JUDICIAL MEMBER AND MS. ANNAPURNA MEHROTRA, ACCOUNTANT MEMBER ITA NO. 753/CHD/2015 ASSESSMENT YEAR: 2011-12 THE ITO, VS SHRI SURESH KUMAR, WARD 2, PROP. M/S GROVER TRADING CO. KAITHAL. CHEEKA. PAN: AEIPK8188H (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI MANJIT SINGH,D R RESPONDENT BY : SHRI S.K.MUKHI DATE OF HEARING : 02.11.2015 DATE OF PRONOUNCEMENT : 05.11.2015 O R D E R PER BHAVNESH SAINI,JM THIS APPEAL BY REVENUE IS DIRECTED AGAINST THE ORDER OF LD. CIT(APPEALS) ROHTAK DATED 25.06.2015 F OR ASSESSMENT YEAR 2011-12, CHALLENGING THE DELETION O F ADDITION OF RS. 24,00,000/- UNDER SECTION 68 OF THE INCOME TAX ACT. 2. BRIEFLY THE FACTS OF THE CASE ARE THAT THE ASSES SEE HAS INTRODUCED UNSECURED LOANS FROM M/S GROVER COLD STORAGE & ICE FACTORY, CHEEKA, SHRI MOHINDER PAL AN D M/S GOYAL SOLVENT PVT. LTD., CHEEKA IN A SUM OF RS. 24 LACS I.E. RS. 15 LACS + RS. 3 LACS + RS. 6 LACS. T HE 2 ASSESSING OFFICER MADE ADDITION ON ACCOUNT OF UNEXPLAINED CREDITS. THE ASSESSEE FILED DETAILED SUBMISSIONS BEFORE LD. CIT(APPEALS) ON WHICH REMAND REPORT FROM ASSESSING OFFICER WAS ALSO CALLED FOR. THE LD. CIT(APPEALS) REPRODUCED ALL THE FACTS IN THE AP PELLATE ORDER, HOWEVER, HE HAS DELETED THE ADDITIONS BY NON - SPEAKING ORDER. THE FINDINGS OF THE LD. CIT(APPEAL S) AT PAGE 7 OF THE APPELLATE ORDER ARE REPRODUCED AS UND ER : A PERUSAL OF THE FACTS OF THE CASE, THE SUBMISSION S MADE BY THE ASSESSEE AND THE REMAND REPORT OF THE ASSESSING OFFICER DATED 23.04.2015 REVEALS THAT THE A.O. HAS EXAMINED THE BOOKS OF ACCOUNTS, CONFIRMATIONS AND BANK STATEMENT IN THE ISSUES MENTIONED IN GROUND NOS. 2, 3 & 4 AND FOUND THEM IN ORDER. IN VIEW OF THIS FACT, I DELETE THE ADDITION OF RS. 15,00,000/-, RS. 3,00,000/- AND RS. 6,00,000/- RESPECTIVELY. GROUND NOS. 2, 3 & 4 ARE ALLOWED. 3. THE LD. DR CONTENDED THAT THE LD. CIT(APPEALS) H AS PASSED THE ORDER WITHOUT GIVING REASONS FOR DECISIO N AND THEREFORE, HIS ORDER IS VIOLATIVE OF SECTION 250(6) OF THE INCOME TAX ACT. 4. ON THE OTHER HAND, LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT ALL FACTS HAVE BEEN CONSIDERED BY LD . CIT(APPEALS) AND THE ASSESSING OFFICER IN THE REMAN D REPORT HAS NOT REFUTED THE EVIDENCES FILED BY ASSES SEE, THEREFORE, DEPARTMENTAL APPEAL MAY BE DISMISSED. 3 5. WE HAVE CONSIDERED RIVAL SUBMISSIONS AND DO NOT SUBSCRIBE TO THE VIEWS EXPRESSED BY THE LD. CIT(APP EALS) IN THE APPELLATE ORDER. THE LD. CIT(APPEALS) IN TH E APPELLATE ORDER HAS REPRODUCED THE FACTS OF THE CAS E AND EVIDENCES SUBMITTED BY ASSESSEE IN SUPPORT OF THE CONTENTION THAT THE CREDITS ARE GENUINE. THE LD. CIT(APPEALS) ALSO CALLED FOR THE REMAND REPORT FROM THE ASSESSING OFFICER, HOWEVER THE LD. CIT(APPEALS) HAS NOT DISCUSSED ANY EVIDENCES IN THE APPELLATE ORDER AND HAS NOT GIVEN ANY REASONS FOR DECISION FOR ARRIVING AT THE CONCLUSION THAT THE ADDITIONS ARE UNJUSTIFIED. THE LD. CIT(APPEALS) IS QUASI-JUDICIAL AUTHORITY AND AS PER SECTION 250(6) OF THE INCOME TAX ACT IS REQUIRED TO PASS REASONED ORDER GIVING REASONS FOR DECISION IN THE APPELLATE ORDER. THE FINDINGS OF LD. CIT(APPEALS) ARE REPRODUCED ABOVE, WHICH CLEARLY SHOW THAT LD. CIT(APPEALS) HAS NOT GIVEN ANY REASON FOR DECISION IN THE APPELLATE ORDER FOR THE PURPOSE OF DELETING THE ADDITION. THE ORDER OF THE LD. CIT(APPEALS), THERE FORE, CANNOT BE SUSTAINED IN LAW. 6. WE, ACCORDINGLY, SET ASIDE THE ORDERS OF LD. CIT(APPEALS) AND RESTORE THIS ISSUE TO HIS FILE WIT H DIRECTION TO RE-DECIDE THIS ISSUE BY GIVING REASONS FOR DECISION IN THE APPELLATE ORDER. HE SHALL GIVE REASONABLE SUFFICIENT OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. 4 7. IN THE RESULT, THIS GROUND OF APPEAL OF THE REVE NUE IS ALLOWED FOR STATISTICAL PURPOSES. 8. IN THE RESULT, APPEAL OF THE REVENUE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT. SD/- SD/- (ANNAPURNA MEHROTRA) (BHAVNESH SAINI) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 5 TH NOV., 2015. POONAM COPY TO: THE APPELLANT, THE RESPONDENT, THE CIT(A), THE CIT,DR ASSISTANT REGISTRAR, ITAT/CHD