Assistant Commissioner of Income TAx Circle-6(3)(1), Bangalore V. M/s Amrutha Infrotech , Bangalore

ITA 861/BANG/2018

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 4486 (ITAT-BANGALORE)
• Duration Of Justice: 1 year(s) 1 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-05-2019
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2013-2014
• Appeal Filed On: 20-03-2018
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: VIMAL ANAND
• Assessee Lawyers: N NAGARAJU
• Keywords: Additional evidence
• Section: 143(3); 142(1); 250; 69

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH, BENGALURU BEFORE SHRI B.R. BASKARAN, ACCOUNTANT MEMBER AND SHRI PAVAN KUMAR GADALE, JUDICIAL MEMBER I TA NO. 861 /BANG/201 8 (ASSESSMENT YEAR: 2013-14) ASST. COMMISSIONER OF INCOME-TAX, CIRCLE 6(3)(1), BENGALURU. VS. APPELLANT M/S.AMRUTHA INFROTECH, NO.118, NR ROYAL MANNER APARTMENT, ROYAL ENCLAVE LAYOUT, SRIRAMPURA JAKKUR, BENGALURU-560 064. PAN:AATFA 3183 D RESPONDENT APPELLANT BY : SHRI VIMAL ANAND, ADDL.CIT(DR) RESPONDENT BY : SHRI N.NAGARAJU, ADVOCATE. DATE OF HEARING: 01/05/2019 DATE OF PRONOUNCEMENT: 15/05/2019 O R D E R PER PAVAN KUMAR GADALE, JM : THE REVENUE HAS FILED THE APPEAL AGAINST THE ORDER OF THE CIT(A), BENGALURU-6, BENGALURU, PASSED U/S 143(3 ) AND 250 OF THE INCOME-TAX ACT,1961 ['THE ACT' FOR SHOR T]. 2. THE REVENUE HAS RAISED THE FOLLOWING GROUND S OF APPEAL: ITA NO.861/BANG/2018 PAGE 2 OF 6 1. THE ORDER OF THE CIT(APPEALS) IS OPPOSED TO LAW AND THE FACTS AND CIRCUMSTANCES OF THE CASE. 2. ON THE FACTS AND CIRCUMSTANCES OF THE CASE, WHETHER THE LD. CIT(A) WAS RIGHT IN PASSING THE ORDER WITHOUT PROVI DING AN OPPORTUNITY TO THE AO TO EXAMINE THE ADDITIONAL EVI DENCE SUBMITTED BY THE ASSESSEE AS PER THE PROVISIONS OF RULE 46A OF IT RULES. 3. FOR THESE AND SUCH OTHER GROUNDS THAT MAY BE URGED AT THE TIME OF HEARING, IT IS HUMBLY PRAYED THAT THE ORDER OF THE CIT(A), IN SO FAR AS IT RELATES TO THE ABOVE GROUNDS MAY BE REVERSED AND THAT OF THE ASSESSING OFFICER BE RESTORED. 4. THE APPELLANT CRAVES LEAVE TO ADD, TO ALTER, TO AME ND OR DELETE ANY OF THE GROUNDS THAT MAY BE URGED AT THE TIME OF HEA RING OF THE APPEAL. 3. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE I S A PARTNERSHIP FIRM ENGAGED IN REAL ESTATE BUSINESS AND FILED THE RETURN OF INCOME ON 1/10/2013 DISCLOSING TOTAL INC OME OF RS.31,01,250/-. SUBSEQUENTLY THE CASE WAS SELECT ED FOR SCRUTINY UNDER CASS AND NOTICE UNDER SECTION 143( 2) AND 142(1) WERE ISSUED. IN COMPLIANCE, THE AR OF TH E ASSESSEE APPEARED ON VARIOUS DATES AND FURNISHED BO OKS OF ACCOUNT AND DETAILS OF EXPENSES AS CALLED FOR. TH E ASSESSING OFFICER, BASED ON THE INFORMATION IN AIR F OUND THAT THE ASSESSEE HAS INTRODUCED CAPITAL OF RS.1 CRORE INTO BUSINESS AND SOURCE FOR CAPITAL INTRODUCTION WAS CAL LED TO EXPLAIN. BUT IN SPITE OF PROVIDING MANY OPPORTUNIT IES THE ASSESSEE WAS UNABLE TO PRODUCE ANY PROOF AND ITA NO.861/BANG/2018 PAGE 3 OF 6 DOCUMENTS/EVIDENCE IN RESPECT OF THE TRANSACTIONS. HENCE, THE ASSESSING OFFICER, APPLIED THE PROVISIONS OF SECTION 69 OF THE ACT AND MADE ADDITION AS UNEXPLAINE D INVESTMENTS AND DETERMINED THE TOTAL INCOME OF RS.1,31,01,250/- UNDER SECTION 143(3) OF THE ACT. 4. AGGRIEVED BY THE ORDER, THE ASSESSEE HAS FILED AN APPEAL WITH CIT(A). IN THE APPELLATE PROCEEDINGS THE CIT(A) CONSIDERED THE GROUNDS OF APPEAL AND FINDING S OF THE ASSESSING OFFICER AND THE SUBMISSIONS AND THE MATE RIAL FILED BY THE ASSESSEE CONFIRMING THE SOURCE OF RS.1 CRORE CREDITED TO CAPITAL ACCOUNT AND BANK STATEMENTS AND WHEREAS THE CIT(A) RELIED ON THE INFORMATION AND DEL ETED THE ADDITION AND ALLOWED THE APPEAL OF THE ASSESSEE. AGGRIEVED BY THE CIT(A) ORDER THE REVENUE HAS FILED APPEAL BEFORE THE TRIBUNAL. 5. THE LEARNED DR SUBMITTED THAT THE CIT(A) HAS ERR ED IN IN ADMITTING ADDITIONAL EVIDENCE WITHOUT PROVIDING OPPORTUNITY TO THE ASSESSING OFFICER TO EXAMINE THE EVIDENCES FILED IN THE COURSE OF APPELLATE PROCEEDING S AND IN VIOLATION OF RULE 46A OF THE IT RULES. FURTHER RE FERRED TO ITA NO.861/BANG/2018 PAGE 4 OF 6 THE OBSERVATIONS OF THE CIT(A) IN THE ORDER WHERE INFORMATION WAS SUBMITTED AND PRAYED FOR ALLOWING THE APPEAL OF THE REVENUE. CONTRA, THE LEARNED AR SUPP ORTED THE ORDERS OF THE CIT(A). 6. WE HEARD THE RIVAL SUBMISSIONS AND PERUSED MATERIAL ON RECORD. THE ONLY DISPUTED ISSUE IS WITH RESPEC T TO BE VIOLATION OF RULE 46A OF THE IT RULES, WHERE THE ASS ESSEE HAS SUBMITTED THE DETAILS WHICH WERE NOT FILED BEFORE THE AO IN THE COURSE OF ASSESSMENT PROCEEDINGS. THE LEARN ED DRS CONTENTION THAT THE ASSESSEE HAS SUBMITTED INFORMATION AND BANK STATEMENTS BEFORE THE CIT(A) AND IN PARTICULAR AT PARA.9, WHERE THE ASSESSEE HAS FILED DE TAILS OF RS.1 CRORE RECEIVED FROM THE STATE BANK OF MYSOR E AND ALSO COPY OF THE ASSESSEES BANK STATEMENTS WITH STAT E BANK OF INDIA. THE LEARNED DEPARTMENTAL REPRESENTATIVE S CONTENTIONS THAT THE INFORMATION WAS NOT FILED IN THE ASSESSMENT PROCEEDINGS AND REFERRED TO THE OBSERVATIO NS OF THE AO AT PARA.3 OF THE ASSESSMENT ORDER. WHEREAS THE LEARNED AR SUBMITTED THAT THE INFORMATION WAS FILED I N THE COURSE OF FIRST APPELLATE PROCEEDINGS BEFORE THE CI T(A). WE HAVE PERUSED THE ORDER OF THE ASSESSING OFFICER WHERE IT ITA NO.861/BANG/2018 PAGE 5 OF 6 WAS OBSERVED THAT THE ASSESSEE IS UNABLE TO PRODUCE ANY PROOF OR DOCUMENT EVIDENCING THE TRANSACTION OF INTRODUCTION OF CAPITAL OF RS.1 CRORE INTO THE BUSINESS . BEFORE US, THESE FACTS COULD NOT BE CONTROVERTED BY T HE LEARNED AR OF THE ASSESSEE AND FURTHER ON PERUSAL OF THE ORDER OF THE CIT(A), THE APPELLATE AUTHORITY HAS GRANT ED RELIEF BASED ON THE BANK STATEMENTS AND THE CONFIRMATI ON OF RS.1 CRORE FROM STATE BANK OF MYSORE. PRIMA FACIE, WE FOUND THE LEARNED DRS SUBMISSION ARE THAT THE AO WA S DEPRIVED TO VERIFY AND EXAMINE THE EVIDENCES FILED IN THE COURSE OF APPELLATE PROCEEDINGS. ACCORDINGLY, TO MEET THE ENDS OF JUSTICE AND THE PRINCIPLES OF NATURAL JUSTIC E, WE ARE OF THE SUBSTANTIVE OPINION THAT THE DISPUTED ISSUE HAS TO BE VERIFIED AND EXAMINED BY THE AO. ACCORDINGLY, WE RESTORE THE ENTIRE DISPUTED ISSUE TO THE FILE OF THE AS SESSING OFFICER TO EXAMINE THE EVIDENCE FILED BY THE ASSESS EE AND ASSESSEE SHALL BE PROVIDED THE OPPORTUNITY OF HEARING AND SHALL CO-OPERATE IN SUBMITTING THE INFORMATION, EXPLAN ATION AND WE ORDER ACCORDINGLY. ITA NO.861/BANG/2018 PAGE 6 OF 6 7. IN THE RESULT, THE APPEAL FILED BY THE REVE NUE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 15 TH MAY, 2019. SD/- SD/- (B.R. BASKARAN) (PAVAN KUMAR GADALE) ACCOUNTANT MEMBER JUDICIAL MEMBER PLACE : BENGALURU D A T E : 15/05/2019 SRINIVASULU, SPS COPY TO : 1 APPELLANT 2 RESPONDENT 3 CIT(A)- 4 CIT 5 DR, ITAT, BANGALORE. 6 GUARD FILE BY ORDER ASSISTANT REGISTRAR INCOME-TAX APPELLATE TRIBUNAL BANGALORE