ACIT, CHENNAI v. Shri S.Meganathan, CHENNAI

ITA 1142/CHNY/2010 | 2007-2008
Pronouncement Date: 03-01-2011 | Result: Allowed

Appeal Details

RSA Number 114221714 RSA 2010
Assessee PAN ACAPM4215M
Bench Chennai
Appeal Number ITA 1142/CHNY/2010
Duration Of Justice 5 month(s) 22 day(s)
Appellant ACIT, CHENNAI
Respondent Shri S.Meganathan, CHENNAI
Appeal Type Income Tax Appeal
Pronouncement Date 03-01-2011
Appeal Filed By Department
Order Result Allowed
Bench Allotted B
Tribunal Order Date 03-01-2011
Date Of Final Hearing 06-12-2010
Next Hearing Date 06-12-2010
Assessment Year 2007-2008
Appeal Filed On 12-07-2010
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL BENCH B CHENNAI BEFORE SHRI U.B.S. BEDI J.M. & SHRI ABRAHAM P. GEO RGE A.M. I.TA. NO.1142/MDS/2010 ASSESSMENT YEAR: 2007-08 THE ASSISTANT COMMISSIONER OF INCOME TAX CIRCLE IV CHENNAI. VS. SHRI S. MEGANATHAN NO. 11/5D NARAYANAPURAM 1 ST STREET CHOOLAIMEDU CHENNAI - 94. [PAN:ACAPM4215M] C.O. NO. 72/MDS/2010 [IN I.TA. NO.1142/MDS/2010] ASSESSMENT YEAR: 2007-08 SHRI S. MEGANATHAN NO. 11/5D NARAYANAPURAM 1 ST STREET CHOOLAIMEDU CHENNAI - 94. VS. THE ASSISTANT COMMISSIONER OF INCOME TAX CIRCLE IV CHENNAI. (APPELLANT) (RESPONDENT) REVENUE BY : SHRI P.B. SEKARAN ASSESSEE BY : NONE O R D E R PER U.B.S. BEDI J.M. THIS APPEAL OF THE DEPARTMENT AND CO OF THE ASSESS EE ARISE OUT OF THE ORDER PASSED BY THE LD. CIT(A) VIII CHENNAI DATED 20.04.2010 RELEVANT TO THE ASSESSMENT YEAR 2007-08. THE DEPARTMENT HAS CHALLEN GED DELETION OF ` .2 10 000/- MADE BY THE ASSESSING OFFICER BY APPLYI NG THE PROVISIONS OF SECTION 40A(3) DISALLOWANCE OF ` .7 15 000/- MADE BY THE ASSESSING OFFICER ON ACCOUN T OF PURCHASES FOUND TO BE NOT GENUINE AND ACTION OF THE LD. CIT(A) IN ADMITTING FRESH EVIDENCE IN THE FORM OF DETAILS REGARDING THE NEXUS BETWEEN THE PARTIES APPEARING IN THE ASSESSEES BOOKS OF ACCOUNTS AND I NDIVIDUALS WHO ENCASHED THE CHEQUES WITH SUCH DOCUMENTARY EVIDENCES WERE NO T PRODUCED BEFORE THE ITA NO. ITA NO. ITA NO. ITA NO. 1 1 1 1142 142142 142/MDS/10 & /MDS/10 & /MDS/10 & /MDS/10 & CO NO. CO NO. CO NO. CO NO. 72 7272 72/MDS/10 /MDS/10 /MDS/10 /MDS/10 2 ASSESSING OFFICER NOR THE MATTER WAS REMANDED BACK TO THE ASSESSING OFFICER THEREBY VIOLATING RULE 46A OF THE INCOME TAX RULES 1962. 2. DESPITE HAVING SENT NOTICED BY REGISTERED POST SUFFICIENTLY IN ADVANCE OF THE DATE FOR 06.12.2010 NEITHER THE ASSESSEE NOR H IS COUNSEL ATTENDED THEREFORE WE PROCEEDED TO DECIDE THE MATTERS EXPAR TE QUA THE ASSESSEE AFTER HEARING THE LD. DR AND CONSIDERING THE MATERIAL ON RECORD. 3. THE LD. DR. SUBMITTED THAT THE LD. CIT(A) IS NO T JUSTIFIED IN DELETING THE DISALLOWANCE OF ` .2 10 000/- AND ` .7 15 000/- MADE BY THE ASSESSING BY APPLYING THE PROVISIONS OF SECTION 40A(3) AND ON ACCOUNT OF PURCHASES FOUND TO BE NOT GENUINE RESPECTIVELY AND MOREOVER FRESH EVIDENCE HA S BEEN ADMITTED AND CONSIDERED TO DELETE THE IMPUGNED ADDITION IN VIOLA TION OF PROVISIONS OF RULE 46A OF INCOME TAX RULES THEREFORE IN THE INTEREST OF JUSTICE AND TO HAVE FAIR PLAY IN THE MATTER THE MATTERS SHOULD BE RESTORED BACK ON THE FILE OF THE LD. CIT(A) WITH THE DIRECTION TO REDECIDE THE APPEAL AFTER ADHERING TO THE PROVISIONS OF RULE 46A IN RESPECT OF BOTH THE ISSUES RAISED AND DECIDE THE APPEAL AFRESH IN THIS REGARD. 4. AFTER HEARING THE LD. DR AND CONSIDERING THE MA TERIAL ON RECORD WE FIND THAT FRESH MATERIAL HAS BEEN FILED BY THE ASSESSEE BEFORE THE FIRST APPELLATE AUTHORITY WHICH WERE NOT FILED BEFORE THE ASSESSIN G OFFICER DURING THE ASSESSMENT PROCEEDINGS AND THE LD. CIT(A) IS FOUND TO HAVE NOT ADHERING TO THE PROVISIONS OF RULE 46A AS THE ASSESSING OFFICER HAS NOT BEEN ASSOCIATED WITH THE PROCEEDINGS NOR ANY REMAND REPORT HAS BEEN OBTAINED FROM HIM. THEREFORE IN THE INTEREST OF JUSTICE AND IN ORDER TO HAVE FAIR P LAY IN THE MATTER WE SET ASIDE THE ORDER OF THE LD. CIT(A) AND RESTORE THE MATTER BACK ON HIS FILE WITH THE DIRECTION TO ITA NO. ITA NO. ITA NO. ITA NO. 1 1 1 1142 142142 142/MDS/10 & /MDS/10 & /MDS/10 & /MDS/10 & CO NO. CO NO. CO NO. CO NO. 72 7272 72/MDS/10 /MDS/10 /MDS/10 /MDS/10 3 RE-DECIDE THE APPEAL ON BOTH THE POINTS RAISED AFTE R COMPLYING WITH THE PROVISIONS OF RULE 46A OF THE INCOME TAX RULES 1962 AND BY GI VING DUE OPPORTUNITY TO THE ASSESSEE AS WELL AS TO THE ASSESSING OFFICER. WE HO LD AND DIRECT ACCORDINGLY. 5. AS REGARDS THE CROSS OBJECTION OF THE ASSESSEE IT IS IN SUPPORT OF THE ORDER OF THE LD. CIT(A) WHICH IS BEING SET ASIDE B Y US THEREFORE THE CROSS OBJECTION OF THE ASSESSEE BECOMES INFRUCTUOUS AND A CCORDINGLY IS DISMISSED AS INFRUCTUOUS. 6. IN THE RESULT THE APPEAL OF THE DEPARTMENT IS ALLOWED FOR STATISTICAL PURPOSE AND THE CO OF THE ASSESSEE STANDS DISMISSED . ORDER PRONOUNCED ON 03.01.2011. SD/- SD/- (ABRAHAM P. GEORGE) ACCOUNTANT MEMBER (U.B.S. BEDI) JUDICIAL MEMBER CHENNAI DATED THE 03.01.2011 VM/- COPY TO : APPELLANT/RESPONDENT/CIT(A)- /CIT /DR