Smt. Moti Bai, Huvina Hadagali v. ITO, Hospet

ITA 107/BANG/2010 | 2005-2006
Pronouncement Date: 30-03-2010 | Result: Allowed

Appeal Details

RSA Number 10721114 RSA 2010
Assessee PAN SINCE2006A
Bench Bangalore
Appeal Number ITA 107/BANG/2010
Duration Of Justice 1 month(s) 28 day(s)
Appellant Smt. Moti Bai, Huvina Hadagali
Respondent ITO, Hospet
Appeal Type Income Tax Appeal
Pronouncement Date 30-03-2010
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted B
Tribunal Order Date 30-03-2010
Date Of Final Hearing 29-03-2010
Next Hearing Date 29-03-2010
Assessment Year 2005-2006
Appeal Filed On 01-02-2010
Judgment Text
PAGE 1 OF 6 ITA NO.107/BANG/2010 1 IN THE INCOME TAX APPELLATE TRIBUNAL BANGALORE BENCH B BEFORE DR. O K NARAYANAN VICE PRESIDENT AND SHRI GEORGE GEORGE K. J.M. ITA NO.107/BANG/2010 (ASST. YEAR 2005-06) SMT. MOTI BAI (LEGAL HEIR OF LATE SRI DEVARAJ NAIK M) K K THANDA PO: K K THANDA TQ. HUVINA HADAGALI. - APPELLANT VS THE INCOME TAX OFFICER WARD-2 HOSPET. - RESPONDENT APPELLANT BY : SHRI M RAVI KUMAR C.A. RESPONDENT BY : SMT. V S SREELEKHA ADDL. CIT O R D E R PER GEORGE GEORGE K : THIS APPEAL OF THE ASSESSEE IS DIRECTED AGAINST THE CIT(A)'S ORDER DATED 4.11.2009. THE ASST. YEAR CON CERNED IS 2005-06. THE ORDER OF THE CIT(A) EMANATES FROM BES T JUDGEMENT ASSESSMENT PASSED U/S 144 OF THE ACT. 2. BRIEFLY STATED THE FACTS ARE AS FOLLOWS:- BASED ON THE AIR INFORMATION RECEIVED FROM CIT(CIB) OFFICE IT WAS NOTICED BY THE ASSESSING OF FICER THAT THE ASSESSEE HAD MADE DEPOSITS IN S.B. ACCOUNT OF STATE BANK OF MYSORE AMOUNTING TO RS.11 27 000/- DURING THE FINA NCIAL YEAR PAGE 2 OF 6 ITA NO.107/BANG/2010 2 RELEVANT TO THE ASST. YEAR. SINCE THERE WAS NO RES PONSE TO NOTICE U/S 142 OF THE ACT A CALL MEMO DATED 18.12.2007 WAS IS SUED TO THE ASSESSEE PROPOSING TO TREAT THE DEPOSITS IN THE S.B . ACCOUNT AS UNEXPLAINED INVESTMENT U/S 69 OF THE I T ACT. SINC E THERE WAS NO RESPONSE TO THE CALL LETTER ISSUED BY THE ASSESSING OFFICER ASSESSMENT WAS COMPLETED U/S 144 OF THE ACT ADDING DEPOSITS OF RS.11 27 000/- AS UNEXPLAINED INVESTMENT U/S 69 OF THE ACT. 3. BEFORE THE FIRST APPELLATE AUTHORITY THERE WAS A DELAY OF ONE MONTH IN FILING THE APPEAL. THE DELAY WAS CONDONED BY THE CIT(A). THE APPEAL WAS POSTED FOR HEARING BEFORE T HE CIT(A) ON 16.1.2009 19.2.2009 AND 18.8.2009. SINCE ASSESSEE DID NOT APPEAR ON THOSE DAYS THE APPEAL WAS DECIDED EXPARTE CONFI RMING THE ACTION OF THE ASSESSING OFFICER CONCERNED. THE CIT(A) HEL D THAT AMPLE OPPORTUNITY WAS PROVIDED BY THE ASSESSING OFFICER T O THE ASSESSEE TO EXPLAIN THE NATURE OF DEPOSITS MADE IN THE S.B. ACCOUNT AND SAME WAS NOT AVAILED OF. SINCE ASSESSEE'S ACCOUNT IS FO UND CREDITED WITH THE DEPOSITS TO THE TUNE OF RS.11 27 000/- THE ONU S TO EXPLAIN THAT THE SAME IS NOT INCOME HAS NOT BEEN DISCHARGED BY THE ASSESSEE AND HENCE THE ASSESSMENT WAS CONFIRMED. 4. BEING AGGRIEVED THE ASSESSEE'S LEGAL REPRESENT ATIVE HAS FILED THIS APPEAL RAISING THE FOLLOWING GROUNDS (SI NCE THE ASSESSEE HAS DIED ON 15.10.2008):- I) THE LEARNED CIT(A) ERRED IN PASSING THE SAID ORDER WITHOUT BEING AWARE OF THE FACT THAT THE APPELLANT LATE MR. DEVARAJ NAIK M HAD PAGE 3 OF 6 ITA NO.107/BANG/2010 3 EXPIRED PRIOR TO THE DATE OF FIRST POSTING OF HEARING OF APPEAL FILED BY HIM. II) THESE GROUNDS OF APPEAL ARE BEING MADE BY HIS LEGAL HEIR AND WIFE SMT. MOTI BAI. III) THE CIT(A) OUGHT TO HAVE REALIZED THAT THE HEARING NOTICES WERE NOT SERVED ON THE APPELLANT. IV) THE APPELLANT BEING A LEGAL HEIR AND AN ILLITERATE WOMAN IS NOT FULLY AWARE OF THE ENTIRE MATTER AND SHE IS NOT IN A POSITION TO CONTEST THE MATTER DUE TO HER FINANCIALLY WEAK POSITION. EVEN THE APPEAL FEES ARE BEING CONTRIBUTED BY SOME VILLAGES AND RELATIVES WITH GREAT DIFFICULTY. V) THE APPELLANT WITH THE HELP OF SOCIETY HAS MADE A BEST ATTEMPT TO PRODUCE THE REQUISITE DETAILS TO SUPPORT THAT NO INCOME WAS EARNED WHICH IS LIABLE FOR TAX. VI) IN VIEW OF THE FACT OF THE CASE AND PREVAILING CIRCUMSTANCES A LENIENT SYMPATHETIC AND COMPASSIONATE STAND MAY BE TAKEN IN THIS MATTER. 5. THE LEARNED AR SUBMITTED LATE ASSESSEE WAS AN AGRICULTURIST HAVING NO INCOME LIABLE TO TAX UNDER INCOME TAX ACT 1961. IT WAS SUBMITTED HE WAS ALSO SECRETARY OF A SOCIETY CALLED INTEGRATED WASTELAND DEVELOPMENT COMMITTEE KK THAN DA TALUK HADAGALLI UNDER WHICH A SCHEME CALLED INTEGRATED W ASTELAND DEVELOPMENT PROJECT-II HADAGALI WHICH WAS INITIATE D BY THE CENTRAL GOVERNMENT. IT WAS ALSO SUBMITTED THAT TH E SOCIETY WHICH IS A SELF HELP GROUP IS SUPPORTED TO DISTRIBUTE GR ANTS RECEIVED FROM THE ZILLA PANCHAYAT TO THE BENEFICIARY. THE AMOUN TS PAYABLE TO AGRICULTURISTS/FARMERS IS BASED ON A CRITERIA WHIC H IS SOLELY DECIDED BY THE PROJECT IMPLEMENTATION AUTHORITY. THE SOCI ETY RECEIVED GRANT AMOUNT FROM ZILLA PANCHAYAT AND THE SAME WAS DEPOSITED INTO PAGE 4 OF 6 ITA NO.107/BANG/2010 4 THE SOCIETY'S BANK ACCOUNT. IT WAS FURTHER SUBMITT ED THAT LATE MR. DEVARAJ NAIK M BEING THE SECRETARY OF THE SOCIETY WAS A JOINT SIGNATORY FOR OPERATION OF THE BANK ACCOUNT ALONG W ITH THE PRESIDENT OF THE SOCIETY. AFTER THE DEMISE OF THE PRESIDENT OF THE SOCIETY NONE OF THE OTHER OFFICE BEARERS/MEMBERS O F THE SOCIETY WERE READY TO GET APPOINTED AS A PRESIDENT OF THE S OCIETY. IT WAS SUBMITTED UNDER THE ORAL INSTRUCTIONS OF THE REMAI NING OFFICE BEARERS DURING THE FINANCIAL YEAR 2004-05 A TOTAL AMOUNT OF RS.11 27 000/- WAS WITHDRAWN FROM THE BANK ACCOUNT OF THE SOCIETY ON VARIOUS DATES AND DEPOSITED IN ASSESSEE' S SAVINGS BANK ACCOUNT TO ENABLE SMOOTH DISBURSEMENTS TO THE BENEF ICIARIES OF THE SCHEME. ON PRODUCTION OF REQUISITE DATE/INFORMATIO N BY THE AGRICULTURISTS/FARMERS THESE DEPOSITS IN SAVINGS B ANK ACCOUNT WERE WITHDRAWN AND DISTRIBUTED TO CLAIMANTS. 5.1 IT WAS ALSO SUBMITTED THAT THE END UTILIZATIO N UPON COMPLETION OF THE SCHEME UNDER THE PROJECT FOR WHIC H THE SOCIETY WAS FORMED HAS BEEN CERTIFIED BY THE ZILLA PANCHAY AT. A COPY OF THE UTILIZATION CERTIFICATE IS PLACED ON RECORD. T HE ASSESSEE IT WAS SUBMITTED WAS NOT SO VERY WELL EDUCATED AS TO UNDE RSTAND THE LANGUAGE AND MEANING OF NOTICE U/S 142(1) DATED 17. 10.2007 WHICH IS SAID TO HAVE BEEN SERVED ON ASSESSEE BY INCOME T AX OFFICER. EVEN A CALL MEMO DATED 18.12.2007 IS SAID TO HAVE B EEN SERVED ON ASSESSEE BUT ASSESSEE WAS NOT KEEPING GOOD HEALTH S INCE 2006 AND WAS BED RIDDEN MOST OF THE TIME IN HIS VILLAGE. PAGE 5 OF 6 ITA NO.107/BANG/2010 5 5.2 IT WAS FURTHER STATED ON RECEIPT OF THE ASSES SMENT ORDER UNDER THE ADVICE OF SOME VILLAGES AND CHARTE RED ACCOUNTANT AT DAVANGERE ASSESSEE FILED AN APPEAL BEFORE CIT(A ) HUBLI ON 24.3.2008. IN THE MEANWHILE THE ASSESSEE SHRI DE VRAJ NAIK M EXPIRED ON 15.10.2008 AFTER A PROLONGED ILLNESS. A COPY OF THE DEATH CERTIFICATE IS PLACED ON RECORD. IT WAS FUR THER SUBMITTED THAT THE CIT(A) POSTED THE APPEAL FOR HEARINGS TO 16.1.2 009 19.2.2009 AND 18.8.2009 I.E. AFTER THE DEMISE OF THE ASSESSEE . THE CIT(A) DISMISSED THE APPEAL VIDE ORDER DATED 4.11.2009 SIN CE NO ONE APPEARED ON BEHALF OF THE ASSESSEE. NOW THE DECEAS ED ASSESSEE'S LEGAL HEIR AND WIFE IS MAKING THIS APPEAL. 6. THE LEARNED DR SUPPORTED THE ORDERS OF THE AUTH ORITIES BELOW. 7. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE MATERIALS ON RECORD. WE HAVE PERUSED THE DEATH CER TIFICATE WHICH IS PLACED ON RECORD WHICH SHOWS THAT THE ASSESSEE HAD EXPIRED ON 15.10.2008. THE APPEAL WAS POSTED FOR THE FIRST TI ME BEFORE THE CIT(A) ON 19.1.2009 I.E. AFTER THE EXPIRY OF THE AS SESSEE. IN THE INTEREST OF JUSTICE AND ON FACTS AND CIRCUMSTANCES OF THE CASE WE FEEL THIS MATTER SHOULD BE RESTORED TO THE FILE OF THE CIT(A) FOR FRESH ADJUDICATION. THE CIT(A) SHALL PROVIDE ADEQUATE OP PORTUNITY OF HEARING TO THE LEGAL REPRESENTATIVE OF THE ASSESSEE BEFORE FRESH ORDER IS PASSED. PAGE 6 OF 6 ITA NO.107/BANG/2010 6 8. IN THE RESULT THE APPEAL OF THE ASSESSEE IS AL LOWED FOR STATISTICAL PURPOSE. THE ORDER IS PRONOUNCED IN THE OPEN COURT ON 30TH MARCH 2010. SD/- SD/- (DR. O K NARAYANAN) (GEORGE GEORGE K) VICE PRESIDENT JUDICIAL MEMBER COPY TO : 1) THE ASSESSEE (2) THE REVENUE (3) TH E CIT(A) CONCERNED. (4) THE CIT CONCERNED. (5) THE DR (6) GUARD FILE. (7) GUARD FILE NEW DELHI. MSP/30.3 BY ORDER ASST. REGISTRAR ITAT BANGALORE.