Raj Karna Singh, V. I.T.O.,

ITA 92/RAN/2013

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 85434 (ITAT-RANCHI)
• Duration Of Justice: 1 year(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-11-2014
• Appeal Filed By: Assessee
• Bench Allotted: DB
• Assessment Year: 2008-2009
• Appeal Filed On: 06-11-2013
• Court: TRIBUNAL
• Department Lawyers: RAKESH KR DAS JCITLD
• Assessee Lawyers: BHANU GIRI LD
• Keywords: Salary income; Opportunity of being heard; Principle of natural justice
• Section: 68

Judgement Text

INCOME TAX APPELLATE TRIBUNAL, CIRCUIT BENCH, RANCHI BEFORE HON'BLE SHRI H.L. KARWA, PRESIDENT , AND HON'BLE SHRI B.R. BASKARAN, ACCOUNTANT M EMBER ITA NO . 9 2 /RAN/201 3 A.Y 200 8 - 09 RAJ KARNA SINGH, BOKARO VS. I.T.O , WARD 3(2(, BOKARO PAN: AIMPS9734M ( APPELLANT ) ( RESPONDENT ) FOR THE APPELLANT :SH RI BHANU GIRI , ADVOCATE, LD.AR FOR THE RESPONDENT : SHRI RAKESH KR. DAS , JCIT/LD.DR DATE OF HEARING : 2 8 - 11 - 2014 DATE OF PRONOUNCEMENT: 2 8 - 11 - 201 4 O R D E R SHRI B.R. BASKARAN, ACCOUNTANT MEMBER : THIS APPEAL F ILED BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER DATED 28 - 08 - 2013 PASSED BY LD. CIT(A) , JAMSHEDPUR AND IT RELATES TO THE ASSESSMENT YEAR 200 8 - 09 . 2. THE ASSESSEE IS AGGRIEVED BY THE DECISION OF THE LD. CIT(A) IN RESPECT OF THE FOLLOWING ISSUES : - A. A SSESSMENT OF INCOME FROM HOUSE PROPERTY B. ADDITION OF RS.1.90 LAKH MADE U/S. 68 OF THE ACT 3. THE FACTS RELATING TO THE SAID ISSUES ARE STATED IN BRIEF. THE ASSESSEE IS A N EMPLOYEE OF M/S. BOKARO STEEL PLANT . ACCORDING TO THE LD.AR , H IS WIFE IS WORKING AS A TEACHER . THE RETURN OF INCOME FILED BY THE AS S ESSEE WAS TAKEN UP FOR SCRUTINY . DURING THE COURSE OF ASSESSMENT PROCEEDINGS, THE ASSESSING OFFICER NOTICED THAT THE ASSESSEE HAS INHERITED A HOUSE PROPERTY FROM HIS FATHER. HE WAS DERIVING RENTAL INCOME FROM THE SAID PROPERTY . HOWEVER, THE ASSESSEE DID NOT DISCLOSE THE ABOVE SAID RENTAL INCOME IN HIS RETURN. ACCORDINGLY, THE ASSESSING OFFICER CONDUCTED AN ENQUIRY THROUGH AN INSPECTOR AND CAME TO KNOW THAT THE 2 ITA NO 92 /RAN/13 - RAJ KARNA SINGH ASSESSEE WAS DERIVING ANNUAL RENT OF RS.1 ,87,200/ - . AFTER GIVING DEDUCTION @30% U/S. 24(A) OF THE ACT THE ASSESSING OFFICER ASSESSED AN INCOME OF RS. 1,3 1 ,040/ - UNDER THE HEAD INCOME FROM HOUSE PROPERTY . 4. THE ASSESSING OFFICER FURTHER NOTICED THAT THE ASSESSEE HAS DEPOSITED A SUM OF RS.1.90 LAKH ON 18 - 03 - 2008 IN HIS BANK ACCOUNT MAINTAINED WITH HDFC BANK , BOKARO . THE EXPLANATION FURNISHED BY THE ASSESSEE WITH REGARD TO THE ABOVE SAID SOURCES WERE NOT C ONVINCING TO THE ASSESSING OFFICER . HENCE, HE ASSESSED THE SAID DEPOSITS OF RS.1.90 LAKH AS ALSO INCOME OF THE ASSESSEE. 5 . IN THE APPELLATE PROCEEDINGS, THE LD. CIT(A) NOTICED THAT THE ASSESSING OFFICER HAS DETERMINED THE RENTAL INCOME AT RS.1,87, 200/ - WITHOUT GIVING AN OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. HENCE, HE SET ASIDE THIS ISSUE TO THE FILE OF THE ASSESSING OFFICER. HOWEVER, THE LD.CIT(A) CONFIRMED THE ADDITION OF RS. 1.90 LAKHS RELATING TO THE BANK DEPOSITS. AGGRIEVED, THE ASSESSE E HAS FILED THIS APPEAL BEFORE US. 6 . WE HEARD THE RIVAL CONTENTIONS AND PERUSED THE RECORD. W E ALSO NOTICED THAT THE LD.CIT(A) HAS SET ASIDE THE ISSUE RELATING TO THE INCOME FROM HOUSE PROPERTY TO THE FILE OF THE ASSESSING OFFICER . AT THE TIME OF H EARING BEFORE US THE LD.DR FAIRLY AGREED THAT THE LD.CIT(A) DOES NOT HAVE ANY POWER TO SE T ASIDE ANY MATTER TO THE FILE OF THE ASSESSING OFFICER . ACCORDINGLY , WE HOLD THAT THE DECISION AS RENDERED BY THE LD.CIT(A) IN SETTING ASIDE THE ISSUE TO THE FILE O F THE ASSESSING OFFICER IS NOT IN ACCORDANCE WITH LAW. HOWEVER, WE NOTICE THAT THE ASSESSING OFFICER HAS DETERMINED THE RENTAL INCOME AT RS. 1, 87 ,200/ - BY CONDUCTING AN ENQUIRY THROUGH HIS INSPECTOR . THE RESULTANT OF SUCH ENQUIRY WAS NOT CONFRONTED W ITH THE ASSESSEE . HENCE, THERE IS VIOLATION OF PRINCIPLE OF NATURAL JUSTICE. ACCORDINGLY, WE ARE OF THE VIEW THAT THE ASSESSEE SHOULD BE PROVIDED AN OPPORTUNITY TO MAKE HIS SUBMISSION AFRESH WITH REGARD TO THE RENTAL INCOME. ACCORDINGLY, WE SET ASIDE TH IS MATTER TO THE FILE OF THE ASSESSING OFFICER WITH THE DIRECTION TO EXAMINE THIS ISSUE AFRESH AFTER AFFORDING ADEQUATE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. 3 ITA NO 92 /RAN/13 - RAJ KARNA SINGH 7. THE NEXT ISSUE RELATES TO THE ADDITION OF RS.1, 90 LAKH ON ACCOUNT OF BANK DEPOSITS. 8. WE NOTICE FROM THE RECORD THAT THE ASSESSEE WAS HAVING SALARY INCOME OF RS. 1,3 9 ,100/ - AND HIS WIFE WAS DRAWING SALARY INCOME OF RS.1,25,436/ - . THE ASSESSING OFFICER HIMSELF HAS NOTICED THAT THE ASSESSEE AND HIS WIFE BOTH HAVE WITHDRAWN AGGREGATING AMO UNT OF RS. 1 ,01,100/ - LAKH FROM THEIR ACCOUNTS MAINTAINED WITH OTHER BANKS. THE ASSESSEE ALSO POINTED OUT THAT HE WAS HAVING PAST SAVING S. CONSIDERING THE SOURCE AS AVAILABLE WITH THE ASSESSEE, WE ARE OF THE VIEW THAT THERE IS NO JUSTIFICATION IN DISBELI EVING THE EXPLANATION FURNISHED BY THE ASSESSEE. ACCORDINGLY, WE SET ASIDE THE ORDER OF THE LD.CIT (A) ON THIS ISSUE AND DIRECT THE ASSESSING OFFICER TO DELETE THE SAID ADDITION OF RS.1.90 LAKH . WE ORDER ACCORDINGLY 9 . IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS TREATED AS ALLOWED FOR STATISTICAL PURPOSE. PRONOUNCED ACCORDINGLY ON 2 8 - 11 - 2014 SD/ - SD/ - [ H.L. KARWA ] [ B.R. BASKARAN ] PRESIDENT ACCOUNTANT MEMBER DT. 2 8 - 11 - 2014 PLACE : RANCHI PP, SR. PS COPY OF THE ORDER FORWARDED TO: 1. THE APPELLANT : SHRI RAJKARNA SINGH, BOKARO. 2 THE RESPONDENT: THE I.T.O , W 3(2), BOKARO 3. .THE CIT, 4.THE CIT(A), 5.DR, ITAT CIRCUIT BENCH, RANCHI 6. GUARD FILE. TRUE COPY, BY ORDER, ASSTT. REGISTRAR 4 ITA NO 92 /RAN/13 - RAJ KARNA SINGH 1. DATE OF DICTATION ............. 2 8 - 11 - 2014 ....................... 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER ........................OTHER MEMBER ...... - 11 - 2014 ........................ 3. DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR. P.S./P.S. ..................... 4. DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE DICTATING MEMBER FOR PRONOUNCEMENT.................................. 2 7 - 11 - 2014 ........................................... ........ 5. DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR. P.S./P.S ................ 6. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK ....................................... 7. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK ............................ ............. 8. THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT REGISTRAR FOR SIGNATURE ON THE ORDER ................................................................................................. 9. DATE OF DESPATCH OF THE ORDER ...................... ........................................