Shri praveen Rungta, Kolkata V. DCIT, Ranchi

ITSSA 18/RAN/2016

• Counselvise Citation: [2018] 122 COUNSELVISE.COM (IT) 3778 (ITAT-RANCHI)
• Duration Of Justice: 1 year(s) 11 month(s) 27 day(s)
• Appeal Type: Income Tax (Search & Seizure) Appeal
• Pronouncement Date: 22-05-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2002-2003
• Appeal Filed On: 25-05-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, RANCHI BENCH, RANCHI BEFORE SHRI N.S SAINI, ACCOUNTANT MEMBER AND PAVAN KUMAR GADALE, JUDICIAL MEMBER IT (SS) A NO S . 18 & 19 /RAN/201 6 ASSESSMENT YEAR S : 2002 - 03 & 2006 - 07 SHRI PRAVEEN RUNGTA, S/O LATE LATE NAND KISHORE RUNGTA, 301, MANGALAM BUILDIG, 21, HEMANT BASU SARANI, KOLKATA - 700001 VS. DCIT, CENTRAL CIRCLE - 1, RANCHI PAN/GIR NO. ADKPR 7512 B (APPELLANT ) .. ( RESPONDENT ) ASSESSEE BY: SHRI ANAND KUMAR PANDEY, ADV REVENUE BY : SHRI DEEPAK KU SUTARIYA, CIT (A), JAMSHEDPUR DATE OF HEARING : 21/05 / 201 8 DATE OF PRONOUNCEMENT : 22 /05/ 2018 O R D E R PER N.S.SAINI, AM THESE ARE APPEALS FILED BY THE ASSESSEE AGAINST THE SEPARATE ORDERS OF CIT(A) - 3 PATNA, DATED 15.3.2016 , F OR THE ASSESSMENT YEAR S 2002 - 03 AND 2006 - 07 , RESPECTIVELY. 2 IT(SS)A NOS.18 & 19/RAN/2016 ASSESSMENT YEARS: 2002 - 03 & 2006 - 07 2. IN IT(SS) A NO.18,PAT/2016, THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL: 1. BECAUSE THE CIT( A) PATNA HAS ERRED IN LAW AND ON FACTS, BY UPHOLDING THE ORDER PASSED BY THE ASSESSING OFFICER U/S.153A R.W.S.143(3) OF THE I.T.ACT, 1961. 2. BECAUSE THE CIT(A HAS ERRED IN LAW AND ON FACTS ,BY UPHOLDING THE CENTRALISATION OF THE APPELLANT CASE IN CENTRAL CIRCLE - 1, RANCHI. 3. BECAUSE THE CIT(A HAS ERRED IN LAW AND ON FACTS ,BY UPHOLDING THE ADDITION OF RS.1,46,517/ - AS UNDISCLOSED INCOME. 3. IN IT(SS) A NO.19/RAN/2016, THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL: 1. BECAUSE THE CIT(A) PATNA HAS ERRED IN LAW AND ON FACTS, BY UPHOLDING THE ORDER PASSED BY THE ASSESSING OFFICER U/S.153A R.W.S.143(3) OF THE I.T.ACT, 1961. 2. BECAUSE THE CIT(A HAS ERRED IN LAW AND ON FACTS ,BY UPHOLDING THE CENTRALISATION OF THE APPELLANT CASE IN CENTRAL CIRCLE - 1, RA NCHI. 3. BECAUSE THE CIT(A HAS ERRED IN LAW AND ON FACTS ,BY UPHOLDING THE ADDITION OF RS.17,00,000/ - AS UNDISCLOSED INCOME. 4. BECAUSE THE CIT(A) HAS ERRED IN LAW AND ON FACTS, BY UPHOLDING THE TREATMENT OF DEVELOPMENT EXPENSES AMOUNTING TO RS.4,82,740/ - SEPARATELY. 5. BECAUSE THE CIT(A) HAS ERRED IN LAW AND ON FACTS, BY UPHOLDING THE NON - CONSIDERATION OF LOSS OF RS.3,06,760/ - ON SALE OF DIAMOND. 6. BECAUSE THE CIT(A) HAS ERRED IN LAW AND ON FACTS, BY UPHOLDING THE NON - CONSIDERATION OF LOSS ON SALE AND PU RCHASE OF SHARES AMOUNTING TO RS.1,20,150/ - . 7. . BECAUSE THE CIT(A) HAS ERRED IN LAW AND ON FACTS, BY UPHOLDING THE NON - CONSIDERATION OF LOSS INCURRED TO THE APPELLANT AS A PARTNER OF THE FIRM NAMELY M/S. MERCANTILE CONSTRUCTION CO AMOUNTING TO RS.25,153/ - . 3 IT(SS)A NOS.18 & 19/RAN/2016 ASSESSMENT YEARS: 2002 - 03 & 2006 - 07 8. BECAUSE THE CIT(A) HAS ERRED IN LAW AND ON FACTS, BY UPHOLDING THE NON - CONSIDERATION OF BUSINESS LOSS AMOUNTING TO RS.2,97,695/ - INCURRED FROM PROPRIETORSHIP BUSINESS OF THE APPELLANT. 4. AT THE OUTSET, LD A.R. OF THE ASSESSEE REFERRED TO THE CIT (A)S ORDERS AND SUBM ITTED THAT THE CIT(A) ADJOURNED THE APPEALS FOR HEARING ON 10.2.2014, 19.1.2016 AND 11.2.2016 CONSIDERING THE TIME PETITION S FILED BY THE ASSESSEE. HE FURTHER SUBMITTED THAT VIDE LETTERS DATED 7.3.14, 29.4.2014, 27.5.14 AND 26.6.14 , THE ASSESSEE HAD REQUESTED FOR GRANT OF SOME MORE DAYS FOR PREPARATION OF DETAILS. AS BEFORE THE CIT(A), THE ASSESSEE DID NOT APPEAR, THEREFORE, THE APPEALS WERE DISMISSED . 5. THE ASSESSEE HAS NOW FILED APPEAL S BEFORE THE TRIBUNAL. 6. WHEN QUESTIONED BY THE BENCH WHAT WERE THE REASONS FOR NON - COMPLIANCE OF NOTICE OF HEARING AND REQUEST OF MORE TIMES FOR PREPARATION OF DETAILS, LD A.R. COULD NOT GIVE ANY SATISFACTORY REPLY FOR THE SAME BUT PRAYED THAT ONE MORE OPPORTUNITY SHOULD BE GRANTED TO THE ASSESSEE TO PRESENT ITS C ASE BEFORE THE CIT(A) . 7. LD D.R. VEHEMENTLY OPPOSED TO THE GRANTING OF ANOTHER OPPORTUNITY TO THE ASSESSEE BEFORE THE CIT(A) AND SUBMITTED THAT SUFFICIENT OPPORTUN ITIES HA VE BEEN ALLOWED BY THE CIT(A) AND THE ASSESSEE HAS FAILED TO COMPLY WITH THE SAME AND, THEREFORE, NO MERCY SHOULD BE SHOWN TO THE ASSESSEE AT THIS STAGE OF PROCEEDINGS. 4 IT(SS)A NOS.18 & 19/RAN/2016 ASSESSMENT YEARS: 2002 - 03 & 2006 - 07 8. AFTER CONSIDERING THE RIVAL SUBMISSIONS AND PERUSING THE MATERIALS AVAILABLE ON REC ORD, WE FIND THAT IN ORDER TO RENDER SUBSTANTIAL JUSTICE TO THE ASSESSEE, ALL MATERIALS FACTS ARE REQUIRED TO BE BROUGHT ON RECORD TO ADJUDICATE THE ISSU E. FOR DOING S O, AN OPPORTUNITY HAS TO BE ALLOWED TO THE ASSESSEE. FURTHER, WE ARE ALIVE TO THE FACT T HAT THE ASSESSEE HAD BEEN A HABITUAL DEFAULTER IN COMPLYING WITH THE NOTICES ISSUED BY THE CIT(A). 9. LD A.R. OF THE ASSESSEE HAS UNDERTAKEN BEFORE US THAT IF ONE MORE OPPORTUNITY IS GRANTED TO THE ASSESSEE, THE ASSESSEE WILL DEFINITELY APP EAR BEFORE THE C IT(A) AND PRESENT HIS CASE. KEEPING THIS UNDERTAKING OF LD A.R. OF THE ASSESSEE IN VIEW IN THE OPEN COURT, WE SET ASIDE THE ORDER S OF THE CIT(A) A ND RESTORE THE MATTER BACK TO HIS FILE WITH A DIRECTION TO RE - ADJUDICATE THE ISSUES INVOLVED IN THE PRESENT A PPEAL S AFTER ALLOWING REASONABLE OPPORTUNITY OF HEARING TO THE ASSESSEE. FURTHER, WE ARE OF THE VIEW THAT THE COST SHOULD BE LEVIED ON THE ASSESSEE FOR WASTING VALUABLE T IME OF THE CIT(A) AS WELL AS THAT OF THE TRIBUNAL. KEEPING IN V IEW THIS FACT, WE IMP OSE COST OF RS.10,000/ - ON THE ASSESSEE TO BE DEPOSITED ON OR BEFORE 31.5.2018. THE ASSESSEE SHALL PRE SENT PROOF OF PAYMENT OF COST BEFORE THE CIT(A) AS WELL AS FILE A COPY OF THE SAME TO THE TRIBUNAL FOR COMPLIANCE TO THIS ORDER. WITH THESE DIRECTIONS, THE APPEAL S OF THE ASSESSEE ARE ALLOWED FOR STATISTICAL PURPOSES. 5 IT(SS)A NOS.18 & 19/RAN/2016 ASSESSMENT YEARS: 2002 - 03 & 2006 - 07 10. IN THE RESULT, APPEALS FILED BY THE ASSESSEE ARE ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 22 /05 /201 8 SD/ - SD/ - (PAVAN KUMAR GADALE) (N.S SAINI) JUDICIAL MEMBER A CCOUNTANT MEMBER RANCHI; DATED 22 /05 /201 8 B.K.PARIDA, SPS COPY OF THE ORDER FORWARDED TO : BY ORDER, SR.PS, ITAT, CAMP AT RANCHI 1. THE APPELLANT : SHRI PRAVEEN RUNGTA, S/O LATE LATE NAND KISHORE RUNGTA , 301, MANGALAM BUILDIG, 21, HEMANT BASU SARANI, KOLKATA - 700001 2. THE RESPONDENT: DCIT, CENTRAL CIRCLE - 1, RANCHI , 3. THE CIT(A), PATNA 4. PR. CIT , 5. DR, ITAT, RANCHI 6. GUARD FILE. //TRUE COPY//