Shri Gunvantbhai H. Rathod, RAJKOT-GUJARAT V. The Income Tax Officer, Ward-2, Surendranagar

ITA 89/RJT/2012

• Counselvise Citation: [2012] 120 COUNSELVISE.COM (IT) 0217 (ITAT-RAJKOT)
• Duration Of Justice: 6 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-09-2012
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 06-09-2012
• Assessment Year: 2008-2009
• Appeal Filed On: 23-02-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MK SINGH
• Assessee Lawyers: DM RINDANI
• Keywords: Unexplained cash credit; Unexplained investment
• Section: 69

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBULAL; RAJKOT BENCH, RAJKOT. . .. . . .. . , , , , . .. . . .. . , , , , $ $ $ $ BEFORE SHRI T. K. SHARMA, JM AND SHRI D. K.SRIVASTA VA, AM ITA NO.89 /RJT/2012 / ASSESSMENT YEAR 2008-09. SHRI GUNVANTBHAI N. RATHOD BLOCK NO.2, OLD KASTURBA SOCIETY, NEW JUNCTION ROAD, SURENDRANAGAR. PAN : ALEPR9840A. ( )/ APPELLANT V/S THE INCOME-TAX OFFICER, WARD-2, SURENDRANAGAR. *+)/ RESPONDENT ,- / ASSESSEE BY SHRI D. M. RINDANI, C .A. - / REVENUE BY SHRI M. K. SINGH, D. R. - / DATE OF HEARING 06-09-2012 - / DATE OF PRONOUNCEMENT 07 - 09-2012 / / / / ORDER . .. . . . . . , , , , / T. K. SHARMA, J. M. THIS APPEAL BY THE ASSESSEE IS AGAINST THE ORDER DATED 23-12-2011 OF C OMMISSIONER OF INCOME-TAX (A)-XVI, AHMEDABAD FOR THE ASSESSMENT YEAR 2008-09. 2. THE GROUNDS RAISED IN THIS APPEAL ARE AS UNDER:- (1) THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS )-XVI, AHMEDABAD ERRED IN SUSTAINING THE ADDITION OF RS.1, 95,000/- U/S.68 OF THE ACT ON ACCOUNT OF UNEXPLAINED CASH CREDITS. ITA 89/RJT/2012 2 (2) THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS )-XVI, AHMEDABAD ERRED IN SUSTAINING THE ADDITION OF RS.4, 77,376/- U/S.69 OF THE ACT ON ACCOUNT OF UNEXPLAINED INVESTMENTS. 3. BRIEFLY STATED, THE FACTS ARE THAT THE ASSESSEE IS AN INDIVIDUAL DOING THE JOB WORK FOR FURNITURE AND ITS REPAIRING ON PETTY SCHEM E. FOR THE ASSESSMENT YEAR UNDER APPEAL, HE FILED THE RETURN OF INCOME DECLARI NG TOTAL INCOME OF RS.1,12,120/- ON 25-03-2009. AO FRAMED THE ASSESSME NT UNDER SEC.143(3) R.W.S.145(2) OF THE I.T. ACT WHEREIN HE MADE ADDITI ONS OF RS.1,95,000/- AND RS.4,77,376/- UNDER SECS.68 AND 69 OF THE I.T. ACT, 1961 RESPECTIVELY. ON APPEAL, IN THE IMPUGNED ORDER, THE LD. CIT(A) CONFI RMED BOTH THE ADDITIONS. AGGRIEVED WITH THIS, THE ASSESSEE IS IN APPEAL BEFO RE THE TRIBUNAL. 4. AT THE TIME OF HEARING BEFORE US, ON BEHALF OF A SSESSEE, SHRI D. M. RINDANI APPEARED AND POINTED OUT THAT ASSESSEE IS A CARPENT ER BASED IN SMALL TOWN NAMED SURENDRANAGAR. HE IS EDUCATED IN LOCAL LANGU AGE UPTO 8 TH STANDARD ONLY. HE IS WORKING AS PROPRIETOR MAKING SMALL FURNITURE ITEMS AND ALSO DOING LABOUR JOB WORK IN AND AROUND SURENDRANAGAR AND VILLAGES. FOR THE ASSESSMENT YEAR UNDER APPEAL, HE FILED THE RETURN OF INCOME AND PRI OR TO THIS, HE WAS NOT FILING THE RETURN OF INCOME. THUS, THIS IS THE FIRST YEAR OF FILING THE RETURN. FOR ROUTINE TYPE OF ACCOUNTING AND INCOME-TAX ADVICE, HE CONTACTED A SMALL LOCAL ACCOUNTANT AND A LOCAL TAX PRACTITIONER. THE COUNSEL OF THE ASSES SEE FURTHER SUBMITTED THAT HIS ACCOUNTANT PASSED ON THE INCOME-TAX MATTER TO ITP M R. THAKKAR BUT HE COULD NOT PLACE THE NECESSARY EVIDENCES BEFORE BOTH THE DEPAR TMENTAL AUTHORITIES BELOW WHICH RESULTED IN ADDITIONS. HE SUBMITTED THAT NOW HE IS WILLING TO PLACE ALL THE NECESSARY EVIDENCES TO PROVIDE AND ONE MORE OPPORTU NITY IS ALLOWED HIM TO EXPLAIN HIS CASE BEFORE THE AO. HE ACCORDINGLY SUG GESTED THAT THE ORDER OF LD. CIT(A) IN RESPECT OF BOTH THE ADDITIONS BE SET-ASID E AND THE MATTER BE REMANDED TO THE AO WITH THE DIRECTION THAT THE AO MAY PERMIT THE ASSESSEE TO FURNISH THE NECESSARY DETAILS, WHO WILL EXAMINE THE SAME AND RE -ADJUDICATE BOTH THE ADDITIONS IN ACCORDANCE WITH LAW. ITA 89/RJT/2012 3 5. SHRI M. K. SINGH, D.R. APPEARED FOR THE REVENUE STRONGLY OBJECTED TO THE AFORESAID PRAYER OF THE ASSESSEE ON THE GROUND THAT BEFORE NONE OF THE AUTHORITIES BELOW, THE ASSESSEE HAS FURNISHED AN IO TA OF EVIDENCE IN SUPPORT OF UNEXPLAINED CASH CREDITS OF RS.1,95,000/- AND UNEXP LAINED INVESTMENTS OF RS.4,77,376/-. THEREFORE, ADDITIONS WERE RIGHTLY M ADE AND NO USEFUL PURPOSE WILL BE SERVED BY ALLOWING ONE MORE OPPORTUNITY TO THE A SSESSEE. AS AGAINST THIS, COUNSEL OF THE ASSESSEE SUBMITTED THAT LOOKING TO T HE PECULIAR FACTS, IN THE INTEREST OF JUSTICE, ONE MORE OPPORTUNITY BE ALLOWE D AND HE ALSO ASSURED THAT THE ASSESSEE WILL FURNISH THE NECESSARY EVIDENCES IN RE SPECT OF BOTH THE ADDITIONS. 6. HAVING HEARD BOTH SIDES, WE HAVE CAREFULLY GONE THROUGH THE ORDERS OF AUTHORITIES BELOW. ADMITTEDLY, THIS IS THE FIRST R ETURN FILED BY THE ASSESSEE DECLARING TOTAL INCOME OF RS.1,12,120/-. THE SUREN DRANAGAR IS A SMALL PLACE AND THE CASE OF THE ASSESSEE BEFORE BOTH THE DEPARTMENT AL AUTHORITIES WAS REPRESENTED BY SHRI D.N. THAKKAR, ITP. PRIMA FACIE , IT APPEARS THAT BEFORE THE AO, ASSESSEE COULD NOT FURNISH THE NECESSARY DOCUME NTARY EVIDENCES IN RESPECT OF BOTH THE ADDITIONS. NOW THE COUNSEL OF THE ASSE SSEE ASSURED THAT THESE WOULD BE FURNISHED. KEEPING IN VIEW OF THESE FACTS, WE A RE OF THE VIEW THAT IT WILL MEET THE ENDS OF JUSTICE IF ONE MORE OPPORTUNITY IS ALLO WED TO ASSESSEE TO ENABLE TO FURNISH THE NECESSARY EVIDENCES IN RESPECT OF UNEXP LAINED CASH CREDITS OF RS.1,95,000/- AND UNEXPLAINED INVESTMENTS OF RS.4,7 7,376/-. WE THEREFORE, SET- ASIDE THE ORDER OF LD. CIT(A) ON THIS ISSUE AND RES TORE BOTH ADDITIONS TO THE FILE OF THE AO WITH A DIRECTION THAT THE ASSESSEE SHALL FUR NISH THE NECESSARY EVIDENCES, AO WILL VERIFY THE SAME AND RE-ADJUDICATE BOTH THE ADDITIONS AFRESH IN ACCORDANCE WITH LAW. 7. BEFORE PARTING WITH, WE MAY ADD THAT IN CASE BEF ORE THE AO, ASSESSEE FAILS TO FURNISH THE NECESSARY EVIDENCE IN RESPECT OF ADDITION OF RS.1,95,000/- WHICH WAS MADE U/S.68 AND ADDITION OF RS.4,77,376/- U/S.69 OF THE I.T. ACT, AO IS AT LIBERTY TO REPEAT BOTH THE ADDITIONS. ITA 89/RJT/2012 4 8. IN THE RESULT, FOR STATISTICAL PURPOSES, THE APP EAL OF THE ASSESSEE IS TREATED AS ALLOWED. THIS ORDER IS PRONOUNCED IN THE OPEN COURT ON THE DATE MENTIONED HEREINABOVE. SD/- SD/- ( D. . K. SRIVASTAVA ) ( T. K. SHARMA ) / ACCOUNTANT MEMBER /JUDICIAL MEMBER 2/ ORDER DATE 07-09-2012. /RAJKOT NVA/- - -- - *3 *3 *3 *3 43 43 43 43 / COPY OF ORDER FORWARDED TO:- 1. ) /APPELLANT- 2. *+) / RESPONDENT-. 3. 9 / CONCERNED CIT. 4. 9- / CIT (A. 5. 3 *, , / DR, ITAT, RAJKOT 6. / GUARD FILE. / BY ORDER , SENIOR PRIVATE SECRETARY, , INCOME TAX APPELLATE TRIBUNAL, RAJKOT.