The ITO, Ward-1(1), RAJKOT-GUJARAT V. Shri Janak Vrajlal Parekh, RAJKOT-GUJARAT

ITA 965/RJT/2010

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 6669 (ITAT-RAJKOT)
• Duration Of Justice: 6 year(s) 9 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-03-2017
• Appeal Filed By: Department
• Bench Allotted: DB
• Next Hearing Date: 21-03-2017
• Assessment Year: 2007-2008
• Appeal Filed On: 03-06-2010
• Court: TRIBUNAL
• Keywords: Opportunity of being heard

Judgement Text

: : IN THE INCOME TAX APPELLATE TRIBULAL: RAJKOT BENCH: RAJKOT BEFORE SHRI S.V. MEHROTRA, ACCOUNTANT MEMBER AND SHRI K. NAR ASIMHA CHA RY , JUDICIAL MEMBER ./ ITA NO . 9 65 /R JT /201 0 / ASSESSMENT YEAR : 200 7 - 08 THE IT O , WARD - 1 (1) , RAJKOT VS M/S. JANAK VRAJLAL PAREKH, ANJANI NANDAN , 2/7, JAGNATH PLOT, RAJKOT PAN : A MOPP4344E / (APPELLANT) / (RESPONDENT) REVENUE BY : SHRI AVINASH KUMAR , D.R ASSESSEE B Y : SHRI D.M. RINDANI , C . A / DATE OF HEARING : 21 / 03/2017 / DATE OF PRONOUNCEMENT: 22 /03/2017 / O R D E R PER SHRI S.V. MEHROTRA , ACCOUNTANT MEMBER : THE DEPARTMENT HAS FILED THE ABOVE APPEAL AGAI NST THE ORDER OF LD.CIT(A) - I , RAJKOT DATED 25 / 03 / 201 0 F OR ASSESSMENT YEAR 200 7 - 0 8. 2. THE REVENUE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL : - 1. THE LEARNED CIT(A) - I HAS ERRED IN LAW AND ON FACTS OF THE CASE IN DELETING THE ADDITION OF RS.1,19,43,778 / - MADE ON ACCOUNT OF UNEXPLAINED ACCRETION TO CAPITAL. 2. ON FACT OF THE CASE, LEARNED CIT(A) - I, OUGHT TO HAVE UPHELD THE ORDER OF THE ASSESSING OFFICER. 3.IT IS, THEREFORE, PRAYED THAT THE ORDER OF THE LEARNED CIT(A) - I MAY BE SET - A - ASIDE AND THAT OF AS SESSING OFFICER BE RESTORED. 3 . BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE HAD FILE D ITS RETURN OF INCOME AT RS.88,181/ - . IN COURSE OF ASSESSMENT PROCEEDINGS THE ITA NO.965/RJT/2010 A.Y.2007 - 08 - 2 - ASSESSING OFFICER NOTICED THAT THE ASSESSEE HAD INTRODUCED NEW CAPITAL OF R S.1,19,43, 778 / - , APART FROM SHOWING HUGE INVESTMENT IN MUTUAL FUNDS. THE ASSESSING OFFICER HAS OBSERVED THAT AS SESSEE WAS ASKED TO FILE DOCUMENTARY EVIDENCE S OF THE NEWLY INTRODUCED CAPITAL ON VARIOUS OCCASION S BUT COMPLETE AND SATISFACTORY EXPLANATION HAD NOT BEEN FILED. HE , THEREFORE , AFTER DETAIL ED DISCUSSION MADE AN ADDITION OF RS.1,19,43,778/ - APART FROM MAKING OTHER ADDITION S . 4. LD .CIT(A) WHILE PARTLY ALLOWING THE ASSESSEE S APPEAL DELETED THE ADDITION OF RS.1,19,43,778/ - , INTER - ALIA OBSERVING AS UNDER: - IN RESPECT OF DEPOSITED OF RS.68,000/ - ON VARIOUS DATES, THE A.O. HAS MENTIONED THAT THE ABOVE AMOUNT HAS BEEN WITHDRAWN FROM THE ACCUMULATED BALANCE OF DEPOSITS ON VARIOUS OCCASIONS AND THE SOURCE OF THE SAME HAS NOT BEEN EXPLAINED. THIS FACT IS PATENTLY INCORRECT, BECAUSE IN THE BANK STATEMENTS REPRODUCED IN HIS REMAND REPORT, THE NATURE OF DEPOSIT IS QUITE APPARENT, I.E TRANSFERRED FROM RELIEANCE MUTUAL FUND, PRUDENTIAL ICICI MUTUAL FUND ETC. FOR THIS PURPOSE ONLY, THE REMAND REPORT HAS BEEN PRODUCED AB OVE IN FULL. THE DETAILS INCORPORATED ITSELF SHOWS FROM WHERE THE MONEY HAS COME. SO FAR AS THESE MUTUAL FUNDS ARE CONCERNED, ALONG WITH THE SUBMISSIONS, WHICH WERE FORWARDED TO THE A.O., APPELLANT HAD ALREADY SUBMITTED ACCOUNT STATEMENT OF VARIOUS MUTUAL FUNDS, WHICH CLEARLY SHOW WHEN THE AMOUNTS WERE MATURED AND WHEN THEY WERE PURCHASED. THUS, TO SAY THAT SOURCES ARE NOT EXPLAINED IN PATENTLY INCORRECT FROM THE STATEMENT SENT BY THE A.O. HIMSELF. THE A.O HAS ALSO MENTIONED THAT STANDARD CHARTERED BANK DOE S NOT FIND PLACE IN THE BALANCE SHEET. HOWEVER, THE BALANCE SHEET, WHICH WAS ENCLOSED WITH THE SUBMISSIONS, CLEARLY SHOWS THAT THE ASSESSEE HAD ACCOUNT WITH STANDARD CHARTERED BANK, EVEN IN EARLIER YEAR AS WELL AS IN THIS YEAR. THEREFORE, THE CLAIM OF THE A.O. THAT STANDARD CHARTERED BANK ACCOUNT IS NOT REFLECTED IN THE BALANCE - SHEET, IS PATENTLY INCORRECT. 5. LD.DR REF E R R ED TO THE S TATEMENT OF FACTS FILED BY T HE ASSESSING OFFICER WHEREIN , IT IS INTER - ALIA , STATE D AS UNDER : ON VERIFICATION OF THE BALAN CE SHEET FILED BY THE ASSESSEE FOR THE PERIOD ENDING AS ON31/03/2006 AND ALSO ON 31/03/2007 (ENCLOSED FOR READY REFERENCE), IT IS NOTICED THAT AC COUNT NO.806 - 0 - 500496 - 8 WITH STANDARD CHARTERED BANK, IS NOT REFLECTED IN THE SAID BALANCE SHEET . ITA NO.965/RJT/2010 A.Y.2007 - 08 - 3 - 6. THUS IT IS EVIDENT THAT THERE IS A CLEAR CUT CONTRADICTION IN THE FINDINGS RECORD ED BY THE LD.CIT(A) AND THE PLEA RAISED BY ASSESSI NG OFFICER. LD. COUNSEL FOR THE ASSESSEE SU BMITTED THAT IT IS A CASE OF NRI AND ALL THE RELEVANT DETAILS ARE AVAILABLE WITH HIM AND CAN BE VERIFIED AT THE END OF ASSESSING OFFICER. 7. AFTER HEARING BOTH THE PARTIES, AS AGREED AT THE TIME OF HEARING BY BOTH THE PARTIES , WE RESTORE THIS ISSUE TO THE FILE OF ASSESSING OFFICE R FOR RE - MARSHALING THE FACTS ON THIS COUNT A FTER AFFORDING REA SONABLE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. 8. IN THE RESULT APPEAL IS ALLOWED FOR STATISTICAL PURPOSE ORDER PRONOUNCED IN THE COURT ON 22 ND MARCH, 2017. SD/ - SD/ - ( K. NAR ASIMHA CHA RY ) JUDICIAL MEMBER ( S.V. MEHROTRA ) ACCOUNTANT MEMBER TRUE COPY AHMEDABAD, DATED 22 / 03 /20 17 * MANISH / COPY OF ORDER FORWARDED TO: - 1 . / APPELLANT - 2 . / RESPONDENT - 3 . / CONCERNED CIT /DIT 4 . - / CIT (A) - IV, RAJKOT 5 . , , / DR, I TAT, RAJKOT 6 . / GUARD FILE. / BY ORDER, / ( DY./ASSTT.REGISTRAR) / ITAT, RAJKOT