Saleem Saudagar, Bhopal V. ITO-4(3), Bhopal

ITA 822/Ind/2019

• Counselvise Citation: [2020] 109 COUNSELVISE.COM (IT) 9042 (ITAT-INDORE)
• Duration Of Justice: 1 year(s) 4 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-12-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 12-11-2020
• Assessment Year: 2007-2008
• Appeal Filed On: 14-08-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Opportunity of being heard; Set aside
• Section: 144

Judgement Text

SMC I.T.A. 822 OF 2019 SALEEM SAUDAGAR 1 , , IN THE INCOME TAX APPELLATE TRIBUNAL INDORE SMC BENCH, INDORE BEFORE SHRI KUL BHARAT, JUDICIAL MEMBER ITA NO.822/IND/2019 ASSESSMENT YEAR: 2007-08 SALEEM SAUDAGAR, BHOPAL / VS. ITO-4(3), BHOPAL (APPELLANT) (REVENUE ) P.A. NO. AXIPS 3771 R APPELLANTS BY SHRI PANKAJ SHAH, CA REVENUE BY SHRI ASHISH PORWAL , SR. DR DATE OF HEARING: 12.11.2020 DATE OF PRONOUNCEMENT: 21.12.2020 / O R D E R THIS APPEAL IS FILED BY THE ASSESSEES AGAINST THE O RDERS OF LD. CIT(APPEALS)-2, BHOPAL DATED 24.5.2019 CHALLENGING THE CONFIRMATION OF ADDITION OF RS.2,28,060/-. 2. FACTS, IN BRIEF, AS NOTED BY THE AO ARE THAT TH E ASSESSEE HAD PAID CREDIT CARD BILLS FOR RS.71,92,701/- AGAINST THE CREDIT CA RD OF HDFC BANK. THE AO NOTED THAT THE ASSESSEE DID NOT RESPOND TO THE QUER Y LETTER ISSUED, THUS THE SMC I.T.A. 822 OF 2019 SALEEM SAUDAGAR 2 SOURCE OF DEPOSIT OF RS.71,92,701/- REMAINED UNEXPL AINED. THE AO FRAMED THE ASSESSMENT AND MADE THE ADDITION OF RS.2,28,060/- ( RS.1,21,010 + RS.1,07,050). 3. FELT AGGRIEVED, THE ASSESSEE PREFERRED AN APPEA L BEFORE LD. CIT(A) WHO DISMISSED THE APPEAL OF THE ASSESSEE ON THE GROUND THAT IN THE REMAND REPORT, THE AO HAD SUBMITTED THAT THE ASSESSEE HAD NOT FURN ISHED COPY OF WORK ORDER/BILLS OF PETTY CONTRACT WORK IN THE REMAND RE PORT PROCEEDINGS AS WELL AS ASSESSMENT PROCEEDINGS, THEREFORE, THE ADDITION IS JUSTIFIED. 4. NOW THE ASSESSEE IS IN APPEAL BEFORE THIS TRIBU NAL. BEFORE ME, LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE ASSESSE E HAD MADE PAYMENTS OF STANDARD CHARTERED BANK CREDIT CARD OF LIMIT OF RS. 20,000/- AND THE AMOUNT OF RS.71,92,701/- IS NOT CORRECT. COPIES OF RELEVANT B ANK ACCOUNTS WERE ALSO FURNISHED BEFORE THE AO WHICH PROVE THAT THE ADDITI ON MADE BY THE AO IS BASELESS BUT THE AO WITHOUT AFFORDING ADEQUATE OPPO RTUNITY OF BEING HEARD TO THE ASSESSEE PASSED EXPARTE ORDER U/S 144 OF THE I. T. ACT WHICH IS UNJUSTIFIED. 5. ON THE OTHER HAND, LD. SR. DR RELIED UPON THE OR DER OF THE REVENUE AUTHORITIES. 6. I HAVE HEARD RIVAL SUBMISSIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD AND GONE THROUGH THE ORDERS OF AUTHORITIES B ELOW. BEFORE ME, THE LD. COUNSEL CONTENDED THAT THE ASSESSEE PAID CREDIT CAR D BILL OF STANDARD CHARTERED BANK OF RS.20,000/-, THEREFORE, THE AMOUN T OF RS.71,92,701/- IS NOT CORRECT. FURTHER, I FIND THAT THE SUFFICIENT OPPORT UNITY OF BEING HEARD WAS NOT SMC I.T.A. 822 OF 2019 SALEEM SAUDAGAR 3 PROVIDED TO THE ASSESSEE AND THE AO PASSED THE EXPA RTE ORDER U/S 144 OF THE I.T. ACT. CONSIDERING THESE FACTS AND THE CONTENTIO NS OF THE LD. COUNSEL FOR THE ASSESSEE, I DEEM IT PROPER TO SET ASIDE THE ORDERS OF THE REVENUE AUTHORITIES. THE AO WOULD VERIFY THESE FACTS AND SUBMISSIONS OF THE LD. COUNSEL FOR THE ASSESSEE AND THEREAFTER PASS THE ORDER AFRESH. NEED LESS TO MENTION HERE THAT ADEQUATE OPPORTUNITY OF BEING HEARD SHALL BE PROVID ED TO THE ASSESSEE AND THE ASSESSEE IS ALSO AT LIBERTY TO FILE ANY FURTHER EVI DENCE, IF ANY, IN SUPPORT OF THE CLAIM. 7. IN RESULT, APPEAL FILED BY THE ASSESSEE IS ALLO WED FOR STATISTICAL PURPOSES ONLY. ORDER WAS PRONOUNCED IN THE OPEN COURT ON 21 .12. 2020. SD/- (KUL BHARAT) JUDICIAL MEMBER INDORE; DATED : 21/12/2020 1 VYAS ! COPY TO: ASSESSEE/AO/PR. CIT/ CIT (A)/ITAT (DR)/GUAR D FILE. BY ORDER ASSISTANT REGISTRAR, INDORE