Narayan Sahoo, Puri V. ITO, Puri Ward, Puri

ITSSA 30/CTK/2016

• Counselvise Citation: [2017] 122 COUNSELVISE.COM (IT) 3452 (ITAT-CUTTACK)
• Duration Of Justice: 1 year(s) 4 month(s) 12 day(s)
• Appeal Type: Income Tax (Search & Seizure) Appeal
• Pronouncement Date: 12-10-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2010-2011
• Appeal Filed On: 30-05-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: KUNAL SINGH
• Keywords: Unexplained investment

Judgement Text

1 IT(SS) A NO. 30/CTK/2016 ASSESSMENT YEAR : 2010 - 2011 IN THE INCOME TAX APPELLATE TRIBUNAL, CUTTACK BENCH, CUTTACK BEFORE S/SHRI N.S SAINI, ACCOUNTANT MEMBER AND PAVAN KUMAR GADALE, JUDICIAL MEMBER IT (SS) A NO. 30 /CTK/2016 ASSESSMENT YEAR : 2010 - 2011 NARAYAN SAHOO, C/O. GANESH JEWELLERY, BANIAPATTI, PURI. VS. ITO, PURI WARD, NEAR ACHARYA HARIHAR CHHACK, PURI PAN/GIR NO. ADGPS 0828 R (APPELLANT ) .. ( RESPONDENT ) ASSESSEE BY : SHRI MOHIT SHETH, AR REVENUE BY : SHRI KUNAL SINGH, CIT DR DATE OF HEARING : 12 /10 / 2017 DATE OF PRONOUNCEMENT : 12 /10 / 2017 O R D E R PER N.S.SAINI, AM THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF THE CIT(A) - 3, BHUBANESWAR DATED 8 .2.2016 FOR THE ASSESSMENT YEAR 2010 - 2011. 2. THE SOLE ISSUE INVOLVED IN THIS APPEAL IS THAT THE CIT(A) ERRE D IN CONFIRMING THE ADDITION OF R.20 LAKHS MADE BY THE ASSESSING OFFICER UNDER THE HEAD UNEXPLAINED INVESTMENT. 3. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSING OFFICER OBSERVED THAT THE ASSESSEE HAD PURCHASED A PIECE OF LAND FOR A CONSIDERATION OF RS.20 LAKHS AND COULD NOT EXPLAIN THE SOURCE OF SUCH INVESTMENT. 2 IT(SS) A NO. 30/CTK/2016 ASSESSMENT YEAR : 2010 - 2011 THEREFORE, HE ADDED RS.20 LAKHS AS UNEXPLAINED INVESTMENT TO THE INCOME OF THE ASSESSEE. 4. BEFORE THE CIT(A), THE ASSESSEE SUBMITTED THAT HE HAD PURCHASED A PLOT OF LAND WITH BUILDING SITUATED AT BANKIMUHAM, UNIT NO.26, KHATA NO.39(P), PLOT NO.18/375(P) WITH AN AREA OF AC. 0.059 DEC IN PURI UNDER SEA BEA CH POLICE STATION FOR A SUM OF R S.20 L AKHS FROM JITENDRA KUMAR PATRA AND BAJENDRANATH PATRA ON 14.8.2009 AND THE ASSESSEE PAID THE CONSIDERATION MONEY BY WAY OF TWO DEMAND DRAFTS DATED 12.8.2009 OF RS.4,50,000/ - EACH MADE FROM CENTRAL BANK, BHUBANESWAR, TWO DEMAND DRAFTS DATED 14.8.2009 OF RS .5,50,000/ - EACH MADE FROM AXIS BANK, PURI. IT WAS SUBMITTED THAT THE PAYMENTS HAVE BEEN ROUTED THROUGH ASSESSEES PERSONAL BANK ACCOUNT AND, THEREFORE, THE ADDITION MADE SHOULD BE DELETED. 5 . THE CIT(A) AFTER CONSIDERING THE SUBMISSIONS OF THE ASSESSEE OBSERVED THAT THE ASSESSING OFFICER HAS GIVEN ADEQUATE OPPORTUNITY TO THE ASSESSEE TO EXPLAIN THE SOURCE OF INVESTMENT OF RS.20 LAKHS FOR THE PURCHASE OF ALLEGED PIECE OF LAND AT PURI. THE ASSESSEE DID NOT FILE ANY REPLY. LD A.R. AT THE APPELLATE STAGE, CONTENDS THAT THE PAYMENTS WERE MADE BY WAY OF DEMAND DRAFTS FROM PERSONAL BANK ACCOUNT OF THE ASSESSEE. LD A.R HAS NOT FURNISHED DETAILS OF PERSONA L BANK ACCOUNTS OF THE ASSESSEE AND THE STATEMENT OF ACCOUNT OF THE PERSONAL BANK ACCOUNT FOR YEAR UNDER A PPEAL. MOREOVER, THE SOURCE OF DEPOSITS IN THE PERSONAL 3 IT(SS) A NO. 30/CTK/2016 ASSESSMENT YEAR : 2010 - 2011 BANK ACCOUNTS HAVE TO BE EXPLAINED. THEREFORE, HE CONFIRMED THE ACTION OF THE ASSESSING OFFICER. 6. BEFORE US, LD A.R. OF THE ASSESSEE HAS FILED COPY OF BANK STATEMENT OF AXIS BANK LTD., PURI, A/C N O.831692791, WHEREIN, IT IS SEEN THAT ON 14.8.2009, TWO DEMAND DRAFTS OF RS.3,50,000/ - HAS BEEN MADE BY THE ASSESSEE. THE ASSESSEE HAS ALSO FILED BANK STATEMENT OF STATE BANK OF INDIA, PURI LOAN A/C NO.10203856285 FROM WHERE, TWO CHEQUES OF RS.6,51,625/ - EACH HAVE BEEN DRAWN ON 12.8.2009. THUS, IT IS THE SUBMISSION OF THE ASSESSEE THAT THE ASSESSEE HAS EXPLAINED THE SOURCE OF RS.20 LAKHS FOR PURCHASE OF LAND AT PURI AND HENCE, NO ADDITION WAS CALLED FOR. HE FURTHER SUBMITTED THAT HE HAD NO OBJECTION IF THE MATTER IS RESTORED BACK TO THE FILE OF THE ASSESSING OFFICER FOR VERIFICATION OF THESE BANK STATEMENTS AND THEREAFTER DECIDING THE ISSUE. 7. `LD D.R. VEHEMENTLY OPPOSED THE SUBMISSION OF LD A.R. OF THE ASSESSEE ON THE GROUND THAT AMPLE OPPORTUNITIES WE RE ALLOWED. THE ASSESSEE FAILED TO AVAIL OF THE SAME AND HENCE, ADDITION MADE SHOULD BE CONFIRMED. 8. WE HAVE HEARD THE RIVAL SUBMISSIONS, PERUSED THE ORDERS OF LOWER AUTHORITIES AND MATERIALS AVAILABLE ON RECORD. THE UNDISPUTED FACTS OF THE CASE ARE THAT THE ASSESSEE PURCHASED A PIECE OF LAND AT PURI FOR RS.20 LAKHS DURING THE YEAR UNDER CONSIDERATION. SINCE THE ASSESSEE COULD NOT PRODUCE EVIDENCE FOR SOURCE OF AMOUNT FOR PURCHASE OF LAND, THE 4 IT(SS) A NO. 30/CTK/2016 ASSESSMENT YEAR : 2010 - 2011 ASSESSING OFFICER MADE ADDITION OF RS.20 LAKHS TO THE INCOME OF THE ASSESSEE UNDER THE HEAD UNEXPLAINED INVESTMENT. 9. ON APPEAL, THE CIT(A) CONFIRMED THE ACTION OF THE ASSESSING OFFICER. 10. BEFORE US, LD A.R. OF THE ASSESSEE HAS FILED COPY OF BANK STATEMENT OF AXIS BAN K LTD., PURI, A/C NO .831692791, FROM WHERE, ON 14.8 .2009, TWO DEMAND DRAFTS OF RS.3,50,000/ EACH HAVE BEEN MADE BY THE ASSESSEE OUT OF THE BALANCE AVAILABLE IN THE SAID BANK ACCOUNT OF THE ASSESSEE. FURTHER, THE ASSESSEE HAS FILED BANK STATEMENT OF STATE BANK OF INDIA, PURI LOAN A/C NO.10203856285 FROM WHERE, LOAN WAS TAKEN BY THE ASSESSEE AND TWO CHEQUES OF RS.6,51,625/ - EACH HAVE BEEN DRAWN ON 12.8.2009. THUS, IT IS THE SUBMISSION OF THE ASSESSEE THAT THE SOURCE OF INVESTMENT IN LAND IS DULY EXPLAINE D. LD A.R. ALSO SUBMITTED THAT HE HAD NO OBJECTION IF THE MATTER IS RESTORED BACK TO THE FILE OF THE ASSESSING OFFICER FOR VERIFICATION OF THESE BANK STATEMENTS AND THEREAFTER DECIDING THE ISSUE AFRESH. LD D.R. OBJECTED TO THE SUBMISSION OF LD A.R. OF TH E ASSESSEE ON THE GROUND THAT AMPLE OPPORTUNITIES WERE PROVIDED TO THE ASSESSEE BY THE ASSESSING OFFICER AS WELL AS BY THE CIT(A) AND, THEREFORE, THE MATTER SHOULD NOT BE REMANDED BACK TO THE FILE OF THE ASSESSING OFFICER. 10. WE ARE OF THE CONSIDERED VIE W THAT IN THE INTEREST OF JUSTICE, THE ASSESSEE SHOULD BE PROVIDED ONE MORE OPPORTUNITY TO EXPLAIN ITS CASE BEFORE THE ASSESSING OFFICER. THEREFORE, WE SET ASIDE THE ORDERS OF LOWER AUTHORITIES AND RESTORE THE MATTER BACK TO THE FILE OF THE ASSESSING OFFI CER 5 IT(SS) A NO. 30/CTK/2016 ASSESSMENT YEAR : 2010 - 2011 FOR READJUDICATION OF ADDITION OF RS.20 LAKHS TOWARDS UNEXPLAINED INVESTMENT IN PURCHASE OF LAND BY VERIFYING THE BANK STATEMENTS OF AXIS BANK LTD. PURI, AND STATE BANK OF INDIA, PURI FILED BEFORE US AND THEREAFTER ADJUDICATE THE ISSUE AS PER LAW. NEE DLESS TO MENTION THAT THE ASSESSING OFFICER WILL ALLOW REASONABLE OPPORTUNITY OF HEARING TO THE ASSESSEE BEFORE ADJUDICATING THE ISSUE AFRESH. 11. IN THE RESULT, APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUN CED IN THE OPEN COURT ON 12 /10 /2017. SD/ - SD/ - ( PAVAN KUMAR GADALE) ( N.S SAINI) JUDICIALMEMBER A CCOUNTANT MEMBER CUTTACK; DATED 12 /10 /2017 B.K.PARIDA, SPS COPY OF THE ORDER FORWARDED TO : BY ORDER, SR.PRIVATE SECRETARY ITAT, CUTTACK 1. THE APPELLANT : NARAYAN SAHOO, C/O. GANESH JEWELLERY, BANIAPATTI, PURI. 2. THE RESPONDENT. ITO, PURI WARD, NEAR ACHARYA HARIHAR CHHACK, PURI 3. THE CIT(A) - 3, BHUBANESWAR 4. PR.CIT - 3, BHUBANESWAR N 5. DR, ITAT, CUTTACK 6. GUARD FILE. //TRUE COPY//