MANISH KUMAR , RANCHI V. ACIT CC-3 , RANCHI

ITA 98/RAN/2018

• Counselvise Citation: [2019] 112 COUNSELVISE.COM (IT) 3857 (ITAT-RANCHI)
• Duration Of Justice: 1 year(s) 6 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-11-2019
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Assessment Year: 2012-2013
• Appeal Filed On: 12-04-2018
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: NISHA SINGH MARR
• Assessee Lawyers: K N PRASAD
• Keywords: Search and seizure; Opportunity of being heard; Competent authority; Set aside
• Section: 143(3); 132

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL RANCHI BENCH, RANCHI BEFORE SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER AND MS. MADHUMITA ROY, JUDICIAL MEMBER I.T.A. NO. 98/RAN/2018 ASSESSMENT YEAR: 2012-13 MANISH KUMAR..................................APPELLANT FLAT NO. E-502, BANSAL PLAZA, OLD H.B. ROAD, RANCHI 834001. [PAN: ANCPK 0114 G] ACIT, CENTRAL CIRCLE-3, RANCHI.......................................................................................RESPONDENT RANCHI. APPEARANCES BY: SHRI K.N. PRASAD, ADVOCATE APPEARING ON BEHALF OF THE ASSESSEE. SMT. NISHA SINGH MARR, JCIT APPEARING ON BEHALF OF THE REVENUE. DATE OF CONCLUDING THE HEARING : NOVEMBER 06, 2019 DATE OF PRONOUNCING THE ORDER : NOVEMBER 08, 2019 ORDER PER MS. MADHUMITA ROY, JM THE INSTANT APPEAL AT THE INSTANCE OF THE ASSESSEE IS DIRECTED AGAINST THE ORDER DATED 15.02.2018 PASSED BY THE LD. CIT(A) 3, PATNA ARISING OUT OF THE ORDER PASSED BY THE ACIT, CENTRAL CIRCLE 3, RANCHI U/S 143(3) OF THE INCOME TAX ACT, 1961 (HEREIN AFTER REFERRED TO AS THE ACT) FOR A.Y. 2012-13. 2. THE BRIEF FACTS LEADING TO THE CASE IS THIS THAT ON 26.08.2011, A SEARCH OPERATION U/S 132 OF THE ACT WAS CONDUCTED IN THE CASE OF ASSESSEE GROUP AT RANCHI AND PATNA. CERTAIN DOCUMENTS WERE FOUND AND SEIZED AND/OR IMPOUNDED DURING SEARCH AND SEIZURE OPERATION INCLUDING AN AMOUNT OF RS. 17,50,000/- FROM THE PREMISES OF ITI, ANISHABAD RUN AND MANAGED BY EVERGREEN WELFARE ASSOCIATION, PATNA. THE CASE WAS ASSIGNED TO THE JURISDICTION OF THE LD. ACIT 2 I.T.A. NOS. 98/RAN/2018 ASSESSMENT YEAR: 2012-13 MANISH KUMAR CENTRAL CIRCLE 3, RANCHI BY AND UNDER ORDER OF CIT-II, PATNA DATED 24.04.2012.. ULTIMATELY ASSESSMENT WAS FINALISED BY THE LD. AO BY MAKING ADDITION OF RS. 6,48,637/- ON ACCOUNT OF ADVANCE MADE FOR FLAT BY TREATING THE SAME AS UNDISCLOSED INVESTMENT WHICH WAS IN TURN CONFIRMED BY THE LD. CIT(A). HENCE THE INSTANT APPEAL BEFORE US. 3. THE CASE OF THE ASSESSEE IS THIS THAT THE ASSESSMENT ORDER HAS BEEN COMPLETED AFTER THE APPROVAL GRANTED BY THE LD. JCIT, CENTRAL RANGE 2, RANCHI BUT WHILE GRANTING SUCH APPROVAL OF THE ASSESSMENT, THE LD. JCIT HAS NOT ALLOWED ANY OPPORTUNITY OF BEING HEARD TO THE ASSESSEE AND, THEREFORE, THE ASSESSMENT COMPLETED U/S 143(3) OF THE ACT IS BAD IN LAW AND CONSEQUENTLY THE ADDITION IS LIABLE TO BE DELETED. IN TERMS OF THE PROVISO TO SECTION 144A OF THE ACT, THE LD. JCIT OUGHT TO HAVE BEEN GIVEN AN OPPORTUNITY OF BEING HEARD TO THE ASSESSEE AS SUBMITTED BY THE LD. AR, WHICH ACCORDING TO US, SEEMS TO BE GENUINE AND IRREGULARITY IN OBSERVANCE OF GRANTING OPPORTUNITY ON THE PART OF THE LD. JCIT RENDERS THE ORDER PASSED BY THE ASSESSING OFFICER CONFIRMED BY THE LD. CIT(A) UNSUSTAINABLE. THE LEARNED DR ALSO FAILED TO CONTROVERT SUCH SUBMISSION MADE BY THE LEARNED AR BEFORE US. 4. UNDER THIS FACT AND CIRCUMSTANCES OF THE MATTER, WE FIND IT FIT AND PROPER TO REMIT THE ISSUE TO THE FILE OF THE LD. AO WITH THE DIRECTION UPON HIM TO SEEK THE APPROVAL OF THE SUPERIOR AUTHORITY IN ACCORDANCE WITH LAW AFTER GRANTING AN OPPORTUNITY OF BEING HEARD TO THE ASSESSEE BY THE COMPETENT AUTHORITY CONCERNED IN TERM OF SECTION 144A OF THE ACT. THE ORDER OF THE CIT(A) IS THUS SET ASIDE AND THE AO IS 3 I.T.A. NOS. 98/RAN/2018 ASSESSMENT YEAR: 2012-13 MANISH KUMAR DIRECTED TO PASS ASSESSMENT ORDER AFRESH I.E. IN ACCORDANCE WITH LAW AFTER COMPLIANCE OF PROVISIONS OF SECTION 144A OF THE ACT BY THE COMPETENT AUTHORITY. 5. IN THE RESULT, ASSESSEES APPEAL IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 08 NOVEMBER, 2018. SD/- SD/- ( PRADIP KUMAR KEDIA) (MADHUMITA ROY) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 08/11/2019 BISWAJIT, SR. PS COPY OF ORDER FORWARDED TO: 1. MANISH KUMAR. 2. ACIT, CIRCLE 3, RANCHI. 3. THE CIT(A) 4. THE CIT 5. DR TRUE COPY, BY ORDER, SR. P.S. / H.O.O. ITAT, RANCHI