Achaibarprasad Nandan Verma L.R. of Varma Muni (Late), Bangalore V. Income tax Officer, Ward - 1(2)(5), Bangalore

ITA 801/BANG/2019

• Counselvise Citation: [2019] 112 COUNSELVISE.COM (IT) 8691 (ITAT-BANGALORE)
• Duration Of Justice: 6 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-11-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 16-10-2019
• Assessment Year: 2014-2015
• Appeal Filed On: 16-04-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: PRADEEP
• Keywords: Business income; Opportunity of being heard; Tax effect; Set aside
• Section: 234B

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH : BANGALORE BEFORE SHRI ARUN KUMAR GARODIA, ACCOUNTANT MEMBER AND SHRI PAVAN KUMAR GADALE, JUDICIAL MEMBER I T A NO. 801 /BANG/201 9 ASSESSMENT YEAR : 20 1 4 - 15 SHRI ACHAIBARPRASAD NANDAN VERMA L/R. OF VARMA MUNI (LATE), NO. 49, CHANDRABHAN DISTRIBUTORS, OUTER RING ROAD, NAGAWARA JUNCTION, BANGALORE 560 045. PAN: ADWPV9768P VS. THE INCOME TAX OFFICER, WARD 1 (2) (5), BANGALORE. APPELLANT RESPONDENT ASSESSEE BY : SHRI PRADEEP REVENUE BY : SHRI SUNIL KUMAR AGARWAL, ADDL. CIT (DR) DATE OF HEARING : 16 . 10 .2019 DATE OF PRONOUNCEMENT : 15 . 1 1 .2019 O R D E R PER SHRI A.K. GARODIA, ACCOUNTANT MEMBER THIS APPEAL IS FILED BY THE ASSESSEE AND THE SAME IS DIRECTED AGAINST THE ORDER OF LD. CIT(A)-1, BANGALORE DATED 24.01.2019 FOR ASSESSMENT YEAR 2014-15. 2. THE GROUNDS RAISED BY THE ASSESSEE ARE AS UNDER. GROUNDS OF APPEAL TAX EFFECT RELATING TO EACH GROUND OF APPEAL 1. THE ASSESSE HAS BARROWED RS. 149 LACKS BY SBI RTGS FROM HER SPOUSE AND HER SPOUSE BY MORTGAGE HIS PROPERTY HAS BARROWED 171 LACKS FROM TATA HOUSING FINANCE LTD. THE LEARNED ASSESSING OFFICER IS NOT JUSTIFIED IN TREATING THE ENTIRE LOAN OUTSTANDING OF RS. 1,46,42.151/- AS UNEXPLAINED LOAN CREDITOR AND ADDED AS BUSINESS INCOME. RS.49,91,174/- 2. THE LEARNED ASSESSING OFFICER ERRED IN CALCULATING INTEREST U/S 234A, 234B AND 234C OF THE INCOME TAX ACT 1961. RS.17,82,920/- TOTAL TAX EFFECT (SEE NOTE BELOW) RS. 67,74,094/ - ITA NO. 801/BANG/2019 PAGE 2 OF 3 3. AT THE VERY OUTSET, IT WAS SUBMITTED BY LD. AR OF ASSESSEE THAT THE IMPUGNED ORDER OF LD. CIT(A) IS EX-PARTE QUA THE ASSESSEE. HE POINTED OUT THAT NOTICES OF HEARING ISSUED BY LD. CIT(A) WERE NOT SERVED ON THE ASSESSEE. HE POINTED OUT THAT IT IS NOTED BY LD. CIT(A) ALSO IN THE IMPUGNED ORDER THAT THE NOTICES ISSUED BY HIM HAD COME BACK UNSERVED WITH THE REMARK OF POSTAL DEPARTMENT THAT THE ADDRESSEE NOT KNOWN. HE SUBMITTED THAT THERE IS NO FAULT OF ASSESSEE IN THIS BECAUSE ON THE SAME ADDRESS, THE NOTICES ISSUED BY THE TRIBUNAL WERE SERVED ON THE ASSESSEE. HE SUBMITTED THAT IN THE INTEREST OF JUSTICE, THE MATTER MAY BE RESTORED BACK TO THE FILE OF LD. CIT(A) FOR FRESH DECISION AFTER PROVIDING REASONABLE OPPORTUNITY OF BEING HEARD TO ASSESSEE. THE LD. DR OF REVENUE SUPPORTED THE ORDER OF LD. CIT(A). 4. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS. IN VIEW OF THE FACTS NOTED ABOVE THAT THE NOTICE ISSUE BY THE TRIBUNAL ON THE SAME ADDRESS WAS DULY SERVED ON THE ASSESSEE AND IN THE INTEREST OF JUSTICE, WE FEEL IT PROPER TO RESTORE BACK THE MATTER TO THE FILE OF LD. CIT(A) FOR FRESH DECISION. WE ORDER ACCORDINGLY. WE SET ASIDE THE ORDER OF LD. CIT(A) AND RESTORE THE MATTER BACK TO THE FILE OF LD. CIT(A) FOR FRESH DECISION AFTER PROVIDING ADEQUATE OPPORTUNITY OF BEING HEARD TO BOTH SIDES. IN VIEW OF THIS DECISION, NO ADJUDICATION ON MERIT IS CALLED FOR AT THE PRESENT STAGE. 5. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON THE DATE MENTIONED ON THE CAPTION PAGE. SD/- SD/- (PAVAN KUMAR GADALE) (ARUN KUMAR GARODIA) JUDICIAL MEMBER ACCOUNTANT MEMBER BANGALORE, DATED, THE 15 TH NOVEMBER, 2019. /MS/ ITA NO. 801/BANG/2019 PAGE 3 OF 3 COPY TO: 1. APPELLANT 4. CIT(A) 2. RESPONDENT 5. DR, ITAT, BANGALORE 3. CIT 6. GUARD FILE BY ORDER ASSISTANT REGISTRAR, INCOME TAX APPELLATE TRIBUNAL, BANGALORE.