M/S. SHOWKAT ALI KHATAI, SRINAGAR V. INCOME TAX OFFICER WARD-3(3), SRINAGAR

ITA 97/ASR/2019

AI Insights

The case involves M/s Showkat Ali Khatai, the appellant, who is a trader of readymade garments and shawls, contesting an addition of Rs. 10,12,167 to his income, which was introduced as capital during the assessment year 2009-10. The addition was initially made by the Income Tax Officer, Ward-3(3), Srinagar, and was upheld by the Commissioner of Income Tax (Appeals)-2, Jalandhar. The appellant argued that the addition was unjustified and that the appeal process was completed without a reasonable opportunity of hearing, particularly due to the destruction of his financial records in the 2014 floods in Kashmir. The Tribunal, considering the circumstances and the CBDT Circular regarding the scrutiny assessment proceedings in Jammu and Kashmir post-floods, decided to remit the matter back to the CIT(A) for a fresh assessment.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 115045 (ITAT-AMRITSAR)
• Duration Of Justice: 4 year(s) 5 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-07-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 25-06-2023
• Assessment Year: 2009-2010
• Appeal Filed On: 03-02-2019
• Laws Referred To: Income Tax Act 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PRIYANKA SINGAL
• Keywords: Set aside
• Section: 250

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AMRITSAR BENCH, AMRITSAR. BEFORE DR. M. L. MEENA, ACCOUNTANT MEMBER AND SH. ANIKESH BANERJEE, JUDICIAL MEMBER I.T.A. No.97/Asr/2019 Assessment Year: 2009-10 M/s Showkat Ali Khatai Prop. M/s Traditions Khatai Enterprises, Bota Kadal, Srinagar. [PAN:-ABSPK4031E] (Appellant) Vs. ITO-Ward 3(3), Srinagar. (Respondent) Appellant by Sh. Sudhir Sehgal, Adv. Respondent by Ms. Priyanka Singal, Sr. DR Date of Hearing 26.06.2023 Date of Pronouncement 11.07.2023 ORDER Per:Anikesh Banerjee, JM: The instant appeal of the assessee was filed against the order of the ld. Commissioner of Income Tax (Appeals)-2, Jalandhar,[in brevity the ‘CIT (A)’],order passed u/s 250 (6) of the Income Tax Act 1961, [in brevity ‘the Act’] I.T.A. No.97/Asr/2019 Assessment Year: 2009-10 2 for A.Y. 2009-10. The impugned order was emanated from the order of the ld. Income Tax Officer, Ward-3(3) Srinagar, [in brevity ‘the AO’] order passed u/s 143(3) of the Act. 2. The appeal was filed with delay of minimum 02 days. With the consent of ld. DR, the delay for 02 days is condoned. 3. The assessee has taken the following grounds: “01 ) That on the facts and in the circumstances of the case, the Ld CIT (Appeals) has not been Justified in sustaining and retaining the addition, made by the Ld A.Oward -3(3), Srinagar at Rs 10,12,167/- .It is requested that the addition so sustainedby the Ld. CIT (Appeals) is unwarranted & bad in law, may kindly be deleted.” 4. Brief fact of the case is that during assessment the additions were made related to introduction of capital amount of Rs.10,12,167/- and the disallowance of expenses related to the business of the assessee. Aggrieved assessee filed an appeal before the ld. CIT(A). The ld. CIT(A) upheld the order of the ld. AO and reduced the disallowance of expenses related to business. Accordingly, the grounds of the I.T.A. No.97/Asr/2019 Assessment Year: 2009-10 3 appeal was partly allowed. Being aggrieved, the assessee filed an appeal before us only to challenge the addition related to capital introduction amount Rs.10,12,167/- 5. The ld. AR of the assessee had filed a brief synopsis which is kept in the record. The assessee prayed that the appeal was completed without giving a reasonable opportunity of hearing. The ld. AR placed the CBDT Circular F.No.225/303/2014/IT A.IIdated November, 2014 where the CBDT had directed for conducting scrutiny assessment proceedings in the State of Jammu and Kashmir, in the aftermath of floods. The appeal was completed and passed the order on dated 29.10.2018 and also the assessment was duly completed on dated 15.12.2011. In between the assessee suffered by devasted flood in Kashmir Valley and the books of accounts of impugned assessment year was destroyed. 6. The ld. DR vehemently argued and fully relied on the order of the revenue authorities. 7. We heard the rival submission and considered the documents available in the record. The assessee is a trader of readymade garments and shawl. The assessee relied on the Circular of CBDT. The assessee placed that due to heavy flood the books of accounts were destroyed and the assessee was unable to produce relevant records before the ld. CIT(A). We find there is a reasonable casue for assessee to I.T.A. No.97/Asr/2019 Assessment Year: 2009-10 4 unable to submit the documents against his addition. We remit back the matter to the ld. CIT(A) for further adjudication and also to consider the issue in compassionate ground as directed in the CBDT circular, mentioned above. Needless to say, the assessee should get a reasonable opportunity of hearing in the set aside proceeding. Accordingly, the ITA No. 97/Asr/2019 is allowed for statistical purposes. 8. In the result, the appeal of the assessee bearing ITA No. 97/Asr/2019 is allowed for statistical purposes. Order pronounced in the open court on 11.07.2023 Sd/- Sd/- (Dr. M. L. Meena) (ANIKESH BANERJEE ) Accountant Member Judicial Member AKV Copy of the order forwarded to: (1)The Appellant (2) The Respondent (3) The CIT (4) The CIT (Appeals) (5) The DR, I.T.A.T. True Copy By order