Madhukarrao Dinkarrao Mohite, Kolhapur V. Income-tax Officer, Ward - 2(1), Kolhapur

ITA 778/PUN/2018

• Counselvise Citation: [2019] 118 COUNSELVISE.COM (IT) 4892 (ITAT-PUNE)
• Duration Of Justice: 9 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-02-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2009-2010
• Appeal Filed On: 01-05-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: M K VERMA
• Keywords: Unexplained cash credit; Additional evidence

Judgement Text

- IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH SMC, PUNE . , , BEFORE SHRI D. KARUNAKARA RAO, AM . / ITA NO. 778/PUN/2018 !' # $# / ASSESSMENT YEAR : 2009-10 MADHUKARRAO DINKARRAO MOHITE, MINOR IRRIGATION DIVISION ZILLA PARISHAD, SADOLI KHALSA, TAL. KARVEER DIST. KOLHAPUR-416112 PAN : AAUPM2142F ....... / APPELLANT %' / V/S. THE INCOME TAX OFFICER, WARD 2(1), KOLHAPUR. / RESPONDENT APPELLANT BY : SHRI M.K. KULKARNI RESPONDENT BY : SHRI M.K. VERMA / DATE OF HEARING : 11.02.2019 / DATE OF PRONOUNCEMENT : 11.02.2019 & / ORDER PER D. KARUNAKARA RAO, AM THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF THE CIT(APPEALS)-2, KOLHAPUR DATED 07.03.2018 FOR THE ASSESSME NT YEAR 2009- 10. 2 ITA NO.778/PUN/2018 A.Y.2009-10 2. THE GROUNDS RAISED BY THE ASSESSEE IN APPEAL ARE AS UNDER: 1. ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND I N LAW THE AMOUNTS DEPOSITED INTO BANK ACCOUNT OF RS.8,08,000/- OF HIS FATHER THAT IS THE ASSESSEE, BY HIS SON SHRT ASHISH SHETE AND FUNDS BE LONGED TO HIS SON. THE ADDITION IN THE HANDS OF ASSESSEE IS NOT JUSTIF IED. 2. ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND I N LAW THE FACTS SHOW THAT SON OF THE ASSESSEE HAD CARRIED OUT THE JOB WO RK AS A SUB- CONTRACTOR FROM THE CONTRACTOR FROM WHOM THE AMOUNT S WERE RECEIVED. THE ASSESSEE'S SON AS A SUB-CONTRACTOR WITHDREW THE FUNDS FROM THIS ACCOUNT AND USED IT FOR VARIOUS PAYMENTS SUCH AS LA BOUR, MATERIAL ETC. IN VIEW OF THIS THE ADDITION MADE IN THE HANDS OF T HE ASSESSEE IS UNJUSTIFIED. IT BE DELETED. 3. ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND I N LAW THE SUB- CONTRACT OF THE ASSESSEE'S SON WAS NOT EXPLAINED EA RLIER. THIS AMOUNTS TO NEW EVIDENCE. THE NECESSARY APPLICATION UNDER RU LE 29 ALONG WITH SWORN AFFIDAVIT IS FILED SEPARATELY. THE ADDITIONAL EVIDENCE SUBMITTED BE ADMITTED TO DO JUSTICE TO THE ASSESSEE. 4. THE APPELLANT CRAVES TO LEAVE, ADD/AMEND OR ALTE R ANY OF THE ABOVE GROUNDS OF APPEAL. 3. BRIEFLY STATED RELEVANT FACTS INCLUDE THAT THE ASSESSE E HAD NOT FILED RETURN OF INCOME FOR A.Y. 2009-10. BASED ON THE INFORMATION RECEIVED FROM THE ADIT (INV.), UNIT-III, KOLHAPUR, THE CASE OF THE ASSE SSEE WAS REOPENED U/S.148/149 OF THE INCOME TAX ACT, 1961 (HEREINAFTER REFE RRED TO AS THE ACT). THE ASSESSING OFFICER RECEIVED INFORMATION THAT THE A SSESSEE DEPOSITED CASH OF RS.8,08,000/- IN HIS ACCOUNT MAINTAINED WITH PARSHWA NATH CO-OP. BANK LTD. THEREAFTER, ASSESSING OFFICER ISSUED NOTICES U/S. 1 42(1) AND 142(2) OF THE ACT SEEKING DETAILS AND SOURCE OF THE SAID CASH DE POSITED IN THE BANK ACCOUNT. HOWEVER, THE ASSESSEE DID NOT RESPOND TO THE SAID NOTICES. THEREAFTER, THE ASSESSING OFFICER ISSUED NOTICE U/S.133(6) O F THE ACT TO THE BANK AND OBTAINED STATEMENT OF ACCOUNT OF THE ASSESSEE . ON PERUSAL THE BANK STATEMENT, THE ASSESSING OFFICER NOTICED THAT AN AM OUNT OF RS.8,08,000/- WAS DEPOSITED IN CASH. AS THE ASSESSEE NEIT HER FURNISHED ANY SUBMISSIONS NOR ATTENDED THE OFFICE, THE SOURCES OF CASH DEPOSIT ARE REMAINED UNEXPLAINED. THEREFORE, THE ASSESSING OFFICER ADDED THE SUM OF 3 ITA NO.778/PUN/2018 A.Y.2009-10 RS.8,08,000/- TO THE INCOME OF THE ASSESSEE AS UNEXPLAINED CASH CREDIT U/S.68 OF THE ACT. 4. IN THE FIRST APPELLATE PROCEEDINGS ALSO, THE ASSESSEE DID NOT CHOSE TO APPEAR BEFORE THE CIT(A) SATISFACTORILY. THE CIT(A), BASED O N THE MATERIAL AVAILABLE ON RECORD PASSED AN EX-PARTE ORDER. 5. AGGRIEVED WITH THE ORDER OF CIT(A), THE ASSESSEE FILED TH E PRESENT APPEAL BEFORE THE TRIBUNAL WITH THE GROUNDS MENTIONED ABOVE. 6. BEFORE ME, LD. AR FOR THE ASSESSEE APPEARED AND SUB MITTED THAT THE CASE OF THE ASSESSEE WAS NOT REPRESENTED PROPERLY BE FORE THE LOWER AUTHORITIES. HE SUBMITTED THAT IF AN OPPORTUNITY IS GIVEN O NCE AGAIN, THE ASSESSEE IS IN A POSITION TO REPRESENT HIS CASE PROPERLY AND FILE THE DOCUMENTS NECESSARY FOR MEANINGFUL ADJUDICATION BY THE CI T(APPEALS) /ASSESSING OFFICER. 7. ON THE OTHER HAND, LD. DR SUBMITTED FOR CONFIRMING THE ORDERS OF THE AO/CIT(A) CONSIDERING THE ASSESSEES NON-COOPERATION AT THE TIME OF ASSESSMENT/APPELLATE PROCEEDINGS. 8. ON PERUSING THE FACTS OF THE CASE AND THE SUBMISSIONS MADE BEFORE ME, IT IS EVIDENT THAT THE ASSESSEE FAILED TO REPRESENT BE FORE THE AO AS WELL AS THE CIT(A). ADDITION OF RS.8,08,000/- WAS MADE ON ACCOUNT O F CASH DEPOSITS, IN THE ABSENCE OF ANY EXPLANATION OF THE ASSESSEE, JUSTIFY ING THE SOURCE FOR THE CASH DEPOSITS IN THE BANK ACCOUNT. CONSIDERING THE FACT THAT THE ASSESSEES COUNSEL UNDERTAKES TO REPRESENT BEFORE TH E REVENUE THIS TIME DURING THE SET ASIDE PROCEEDINGS, IF AN OPPORTUNITY IS GIVE N, I FELT IT 4 ITA NO.778/PUN/2018 A.Y.2009-10 APPROPRIATE TO REMAND THIS ISSUE TO THE FILE OF AO FOR ONE MORE ROUND OF ASSESSMENT PROCEEDINGS. AO IS AT LIBERTY TO REPEAT THE ADDITION IN CASE OF NON-COOPERATION OR NON-ATTENDANCE, IF ANY, BY THE ASSESS EE FOR ANY REASON. ACCORDINGLY, THE GROUNDS RAISED BY THE ASSESSEE ARE ALLO WED FOR STATISTICAL PURPOSES. 9. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PUR POSES. ORDER PRONOUNCED ON 11 TH DAY OF FEBRUARY, 2019. SD/- ( . / D. KARUNAKARA RAO ) ' ACCOUNTANT MEMBER / PUNE; / DATED : 11 TH FEBRUARY, 2019 SB &()!*+,-,$* / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT. 2. / THE RESPONDENT. 3. THE CIT (APPEALS)-2, KOLHAPUR. 4. THE PR. CIT-2, KOLHAPUR. 5. !'# $$ %& , ' %& , - ()* , / DR, ITAT, SMC BENCH, PUNE. 6. #+, -. / GUARD FILE. // TRUE COPY // '/ / BY ORDER, $ 0 %* /PRIVATE SECRETARY ' %& , / ITAT, PUNE. 5 ITA NO.778/PUN/2018 A.Y.2009-10 DATE 1 DRAFT DICTATED ON 11.02.2019 SR.PS/PS 2 DRAFT PLACED BEFORE AUTHOR 12.02.2019 SR.PS/PS 3 DRAFT PROPOSED AND PLACED BEFORE THE SECOND MEMBER JM/AM 4 DRAFT DISCUSSED/APPROVED BY SECOND MEMBER AM/JM 5 APPROVED DRAFT COMES TO THE SR. PS/PS SR.PS/PS 6 KEPT FOR PRONOUNCEMENT ON SR.PS/PS 7 DATE OF UPLOADING OF ORDER SR.PS/PS 8 FILE SENT TO BENCH CLERK SR.PS/PS 9 DATE ON WHICH THE FILE GOES TO THE HEAD CLERK 10 DATE ON WHICH FILE GOES TO THE A.R 11 DATE OF DISPATCH OF ORDER