P.Jayachandran, CHENNAI V. ITO NCW 4(2), Chennai

ITA 929/CHNY/2018

• Counselvise Citation: [2018] 121 COUNSELVISE.COM (IT) 5167 (ITAT-CHENNAI)
• Duration Of Justice: 2 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-05-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2014-2015
• Appeal Filed On: 19-03-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R ANITHA
• Assessee Lawyers: R S BALAJI
• Keywords: Unexplained cash credit

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL , B B ENCH, CHENNAI . . . , . , ! BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI A.MOHAN ALANKAMONY, ACCOUNTANT MEMBER ./ I.T.A.NO.929/CHNY/2018 ( / ASSESSMENT YEAR: 2014-15) SHRI P. JAYACHANDRAN, NO.31A, 1 ST STREET, MARKET LANE, KALADIPET, CHENNAI 600 019 VS THE INCOME TAX OFFICER, NON CORPORATE WARD 4(2), CHENNAI. PAN: ALBPJ3157H ( /APPELLANT) ( /RESPONDENT) & STAY PETITION NO.151/CHNY/2018 ( ./ IN I.T.A.NO.929/CHNY/2018 ( / ASSESSMENT YEAR :2014-15) SHRI P. JAYACHANDRAN, NO.31A, 1 ST STREET, MARKET LANE, KALADIPET, CHENNAI 600 019 VS THE INCOME TAX OFFICER, NON CORPORATE WARD 4(2), CHENNAI. PAN: ALBPJ3157H ( /APPELLANT) ( /RESPONDENT) /ASSESSEE BY : SHRI R.S. BALAJI, ADVOCATE / REVENUE BY : MS. R. ANITHA, JCIT '# /DATE OF HEARING : 09.04.2018 '# /DATE OF PRONOUNCEMENT : 31.05.2018 / O R D E R PER A. MOHAN ALANKAMONY, AM:- THE APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER PASSED BY THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) -5, CHENNAI, DATED 22.01.2018 IN ITA NO.161/CIT(A)-5/2016-17 FO R THE ASSESSMENT YEAR 2014-15 PASSED U/S.250(6) R.W.S. 14 3(3) OF THE ACT. 2 ITA NOS. 929/CHNY/2018 & SP NO.151/CHNY/2018 THE ASSESSEE HAS ALSO FILED A STAY PETITION IN SP N O.151 OF 2018 SEEKING STAY OF THE OUTSTANDING DEMAND OF RS.20,81, 380/- FOR THE RELEVANT ASSESSMENT YEAR. 2. THE ASSESSEE HAS RAISED SEVERAL GROUNDS IN HIS A PPEAL HOWEVER THE CRUX OF THE ISSUE IS THAT THE LD.CIT(A) HAS ERR ED BY PARTLY SUSTAINING THE ADDITION MADE BY THE LD.AO TOWARDS U NEXPLAINED CREDITS. 3. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSE E IS AN INDIVIDUAL FILED HIS RETURN OF INCOME FOR THE ASSESSMENT YEAR 2014-15 ELECTRONICALLY ON 16.08.2014 ADMITTING TOTAL INCOME OF RS.7,19,060/-. THE CASE WAS SELECTED FOR SCRUTINY UNDER CASS AND N OTICE U/S.143(2) OF THE ACT WAS ISSUED ON 28.08.2015. FIN ALLY THE ASSESSMENT WAS COMPLETED U/S.143(3) OF THE ACT ON 1 6.12.2016 WHEREIN THE LD.AO MADE ADDITION OF RS.56,41,916/- T OWARDS UNEXPLAINED CREDIT IN THE BANK ACCOUNTS OF THE ASSE SSEE. THEREAFTER ON APPEAL, THE LD.CIT(A) GAVE PART RELIEF TO THE AS SESSEE. 4. AT THE OUTSET THE LD.AR SUBMITTED THAT THE LD.AO HAD GATHERED INFORMATION FROM THE BANK ACCOUNTS OF THE ASSESSEE AND WORKED OUT 3 ITA NOS. 929/CHNY/2018 & SP NO.151/CHNY/2018 THE DISALLOWANCE WITHOUT EXAMINING THE EXPLANATIONS OFFERED BY THE ASSESSEE. THE LD.AR FURTHER SUBMITTED THAT THE ASSE SSEE HAS NOW MAINTAINED HIS BOOKS OF ACCOUNTS AND IN POSSESSION ALL THE RELEVANT DOCUMENTS TO SUPPORT HIS CLAIM. HE THEREFORE FURTHE R PLEADED THAT ONE OPPORTUNITY MAY BE PROVIDED BEFORE THE LD.CIT(A) SO THAT THE ASSESSEE MAY BE IN A POSITION TO EXPLAIN THE CREDIT S IN HIS BANK ACCOUNT AND THE RELEVANT EXPENDITURES INCURRED FOR EARNING SUCH INCOME. HE FURTHER PLEADED THAT THE ASSESSEE IS AN INSURANCE AGENT HAVING MEAN RESOURCES AND THE DEMAND RAISED BY THE REVENUE IS TOO HARSH ON HIM WHICH WILL BRING IRREPARABLE LOSS. THE LD.DR ON THE OTHER HAND STOUTLY OPPOSED TO THE SUBMISSION OF THE LD.AR AND ARGUED IN SUPPORT OF THE ORDER OF THE LD.CIT(A). 5. WE HAVE HEARD THE RIVAL SUBMISSIONS AND CAREFULL Y PERUSED THE MATERIALS ON RECORD. FROM THE FACTS OF THE CASE IT IS EVIDENT THAT THE ASSESSEE HAD NOT PRODUCED HIS BOOKS OF ACCOUNTS BEF ORE THE LD.REVENUE AUTHORITIES IN ORDER TO EXPLAIN THE CRED ITS IN HIS BANK ACCOUNT AND THE RELEVANT EXPENDITURE PERTAINING TO THOSE INCOMES. SINCE THE LD.AR CLAIMS THAT THE ASSESSEE IS NOW IN POSSESSION OF THE RELEVANT MATERIALS, VOUCHERS AND BOOKS OF ACCOUNTS ESTABLISHING THE GENUINENESS OF HIS CLAIM AND CONSIDERING THE PRECAR IOUS FINANCIAL 4 ITA NOS. 929/CHNY/2018 & SP NO.151/CHNY/2018 SITUATION OF THE ASSESSEE, IN THE INTEREST OF JUSTI CE, WE HEREBY REMIT THE MATTER BACK TO THE FILE OF LD.CIT(A) WITH DIREC TIONS TO ADMIT ANY FRESH EVIDENCE PRODUCE BEFORE HIM BY THE ASSESSEE A ND THEREAFTER OBTAINING A REMAND REPORT FROM THE LD.AO AND PASS A PPROPRIATE ORDER IN ACCORDANCE WITH MERIT AND LAW. WE ALSO CAU TION THE ASSESSEE AND HIS COUNSEL TO PROMPTLY COOPERATE BEFO RE THE LD.REVENUE AUTHORITIES IN THEIR PROCEEDINGS, FAILIN G WHICH THE LD.REVENUE AUTHORITIES SHALL BE AT LIBERTY TO PASS APPROPRIATE ORDER IN ACCORDANCE WITH MERIT AND LAW BASED ON THE MATERIAL S ON RECORD. 6. SINCE WE HAVE REMITTED THE MATTER BACK TO THE FI LE OF LD.CIT(A) FOR DE-NOVA CONSIDERATION, WE DO NOT FIND IT NECESS ARY TO ENTERTAIN THE STAY PETITION FILED BY THE ASSESSEE. 7. IN THE RESULT APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES AS INDICATED HEREIN ABOVE AND THE STAY PET ITION OF THE ASSESSEE IS DISMISSED. ORDER PRONOUNCED ON THE 31 ST MAY, 2018 AT CHENNAI. SD/- SD/- ( . . . ) (N.R.S. GANESAN) /JUDICIAL MEMBER ( . ) (A. MOHAN ALANKAMONY) / ACCOUNTANT MEMBER 5 ITA NOS. 929/CHNY/2018 & SP NO.151/CHNY/2018 &' /CHENNAI, () /DATED 31 ST MAY, 2018 RSR ) +, -, /COPY TO: 1. /APPELLANT 2. /RESPONDENT 3. 0 ( )/CIT(A) 4. /CIT 5. /DR 6. /GF