Vansraj R Bhansali, Ahmedabad V. Dy.Commissioner of Income Tax,Circle-6, Ahmedabad

ITA 929/AHD/2016

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 7902 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 2 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-07-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: Not Allotted
• Assessment Year: 2006-2007
• Appeal Filed On: 12-04-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: OM PRAKASH PATHAK
• Assessee Lawyers: KISHAN M MEHTA
• Keywords: Unexplained cash credit; Opportunity of being heard
• Section: 143(3); 68

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH, AHMEDABAD BEFORE SHRI WASEEM AHMED, ACCOUNTANT MEMBER & MS. MADHUMITA ROY, JUDICIAL MEMBER I.T.A. NO.929/AHD/2016 (ASSESSMENT YEAR : 2006-07) VANSRAJ R. BHANSALI C/O. M.P. UDHYOG 401, NARNARAYAN COMPLEX A-BLOCK NR. SWASTIK CROSS ROAD, NAVRANGPURA, AHMEDABAD-380009 VS. THE DCIT CIRCLE-6 AHMEDABAD [ PAN NO. ABVPB 1004D] ( APPELLANT ) .. ( RESPONDENT ) APPELLANT BY : SHRI KISHAN M. MEHTA, AR RESPONDENT BY : SHRI OMPRAKASH PATHAK, SR.DR DATE OF HEARING 07/07/2018 DATE OF PRONOUNCEMENT 11/ 07 /2018 O R D E R PER MS. MADHUMITA ROY - JM: THE INSTANT APPEAL HAS BEEN FILED BEFORE US BY TH E ASSESSEE AGAINST THE EX-PARTE ORDER DATED 10.02.2016 PASSED BY THE COMMISSIONER OF INCO ME TAX(APPEALS)-3, AHMEDABAD [LD.CIT(A) IN SHORT] FOR ASSESSMENT YEAR (AY) 2006 -07 ARISING OUT OF THE ORDER DATED 26.03.2014 PASSED BY THE DCIT, CIRCLE-6, AHMEDABAD . 2. THE SHORT FACTS LEADING TO THIS CASE IS THAT THE ASSESSEE FILED ITS RETURN OF INCOME ON 26.02.2007 DECLARING TOTAL INCOME OF RS.26,82,380/- . THE ASSESSEE IS ALSO DERIVING INCOME FROM MANUFACTURING OF STAINLESS STEEL SHEET AND TRA DING IN METAL ROLLING MILL ROLLS & COMMISSION AGENT. SUBSEQUENTLY, BY AND UNDER THE O RDER IN TERMS OF SECTION 143(3) OF THE INCOME TAX ACT, 1961 (HEREINAFTER REFERRED TO AS 'T HE ACT') DATED 26.12.2008 THE TOTAL - 2 - ITA NO.929/AHD/2016 VANSRAJ R. BHANSALI VS. DCIT ASST.YEAR 2006-07 INCOME OF THE ASSESSEE WAS ASSESSED AT RS.57,82,380 /-. DURING THE ASSESSMENT PROCEEDING, THE AO UPON VERIFICATION OF CONFIRMATION FOR THE UN SECURED LOANS DISALLOWED A SUM OF RS.31,00,000/- CLAIMED BY THE ASSESSEE AS UNSECURED LOANS. THE SAID AMOUNT WAS TREATED AS UNEXPLAINED CASH CREDITS WITHIN THE PURVIEW OF S ECTION 68 OF THE ACT AND THE SAME WAS ADDED TO THE TOTAL INCOME OF THE ASSESSEE BY THE AO . 3. IN APPEAL, THE LD. CIT(A) BY AND UNDER THE ORDER DATED 24.11.2010 GRANTED RELIEF TO THE ASSESSEE TO THE EXTENT OF RS.21,00,000/- AND CO NFIRMED THE ADDITION OF THE REST AMOUNT OF RS.10,00,000/-. REVENUE THEREAFTER PREFERRED AN APPEAL BEFORE THE HONBLE ITAT WHEREBY AND WHEREUNDER THE LD. ITAT ON 21.12.2012 WAS PLEASED TO PASS ORDERS INTER- ALIA QUASHING THE ORDER PASSED BY THE LD. CIT(A) AN D RESTORE THE ISSUE TO THE FILE OF THE AO TO DECIDE THE SAME AFRESH IN THE LIGHT OF THE JUDIC IAL PRONOUNCEMENTS RELIED UPON BY THE LD. COUNSEL FOR THE ASSESSEE AFTER PROVIDING REASONABLE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. 4. PURSUANT TO THE SAID DIRECTION DATED 21.12.2012 PASSED BY THE LD. ITAT, FRESH ASSESSMENT PROCEEDING WAS INITIATED BY THE AO. DUR ING THE ASSESSMENT PROCEEDING, ASSESSEE WAS SERVED WITH THE NOTICES UPON THE ADDR ESS AS PER INCOME-TAX RECORD, HOWEVER, THE SAME WAS RETURNED UNSERVED. ULTIMATELY, THE A O MADE AN ADDITION OF RS.10,00,000/-, RS.5,00,000/- EACH BY UNSECURED LOANS IN THE NAMES OF M/S.ASHIYANA TECHNOCAST & SCRAP PVT.LTD. AND M/S.VALIANT PHARMATECH LTD. RESPECTIVE LY, GENUINENESS OF WHICH, ACCORDING TO THE AO, WAS NOT PROVED. 5. IN APPEAL, THE SAME WAS AGAIN CONFIRMED BY THE L D. CIT(A) THAT TOO EX-PARTE. 6. IT APPEARS FROM THE RECORD THAT THE ASSESSEE HAS NOT ATTENDED THE HEARING ON THE DATE FIXED BY THE FIRST APPELLATE AUTHORITY. IN SUPPORT OF THE ASSESSEES CONTENTION FOR NOT BEING ABLE TO APPEAR BEFORE THE LD. CIT(A)S LETTER DATED 18.09.2017 AS WELL AS AN AFFIDAVIT - 3 - ITA NO.929/AHD/2016 VANSRAJ R. BHANSALI VS. DCIT ASST.YEAR 2006-07 DATED 08.02.2018 DULY SIGNED BY THE ASSESSEE STATI NG THE FACT OF NON RECEIVING OF THE NOTICE OF HEARING WAS PLACED BEFORE US BY THE LD. COUNSEL APPEARING FOR THE ASSESSEE. HE THUS PRAYS FOR READJUDICATION OF THE MATTER AFRESH BY TH E AUTHORITIES BELOW. 7. ON THE OTHER HAND, THE LD. DR RELIES UPON THE OR DERS PASSED BY THE AUTHORITIES BELOW. 8. WE HAVE HEARD THE REPRESENTATIVES OF THE RESPECT IVE PARTIES. WE HAVE PERUSED THE RELEVANT MATERIALS AVAILABLE ON RECORD PARTICULARLY THE LETTER AND THE AFFIDAVIT FILED BY THE ASSESSEE AS STATED ABOVE. WE HOWEVER, DO NOT GO INTO THE MERIT OF THE MATTE R SINCE, WE FIND BOTH THE AUTHORITIES BELOW PASSED THE ORDERS E X-PARTE. WE BEING SATISFIED WITH THE CONTENTS OF THE AFFIDAVIT FIND TO MEET THE LARGER I NTEREST OF JUSTICE AND FAIR PLAY, A PROPER OPPORTUNITY OF HEARING IS REQUIRED TO BE GIVEN TO T HE ASSESSEE. TAKING INTO CONSIDERATION THE ENTIRE FACTS AND CIRCUMSTANCES OF THE CASE, WE RESTORE THE MATTER TO THE FILE OF THE LD.CIT(A) WITH A DIRECTION UPON HIM TO DECIDE THE SAME ON MERIT AFRESH AFTER GIVING A REASONABLE AND PROPER OPPORTUNITY OF HEARING TO BOT H THE PARTIES. WE MAKE IT CLEAR THAT THE ASSESSEE SHOULD CO-OPERATE IN THE PROCEEDINGS A S AND WHEN CALLED UPON BY THE LD. CIT(A). 9. IN THE RESULT, ASSESSEES APPEAL IS ALLOWED FOR STATISTICAL PURPOSES. THIS ORDER PRONOUNCED IN OPEN COURT ON 11 / 0 7 /201 8 SD/- SD/- ( WASEEM AHMED ) ( MS. MADHUMITA ROY ) ACCOUNTANT MEMBER JUDICIAL MEMBER AHMEDABAD; DATED 11/ 07 /2018 .., . ../ T.C. NAIR, SR. PS - 4 - ITA NO.929/AHD/2016 VANSRAJ R. BHANSALI VS. DCIT ASST.YEAR 2006-07 / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. / CONCERNED CIT 4. ( ) / THE CIT(A)-3, AHMEDABAD 5. !'# , $ , / DR, ITAT, AHMEDABAD 6. #() *+ / GUARD FILE. / BY ORDER, ! //TRUE COPY// / ( DY./ASSTT.REGISTRAR) !, / ITAT, AHMEDABAD 1. DATE OF DICTATION .. 9.7.2018 (DICTATION-PAD 8 -PAGES ATTACHED AT THE END OF THIS APPEAL-FILE) 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER 10.7.2018 3. OTHER MEMBER 4. DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR.P. S./P.S.. 5. DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE D ICTATING MEMBER FOR PRONOUNCEMENT 6. DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR.P .S./P.S.11.7.18 7. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 11.7.18 8. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK ... 9. THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT RE GISTRAR FOR SIGNATURE ON THE ORDER.. 10. DATE OF DESPATCH OF THE ORDER