Shri Bangaru Siddarajappa, Bangalore v. ITO, Bangalore

ITA 1184/BANG/2008 | 1998-1999
Pronouncement Date: 10-02-2010 | Result: Allowed

Appeal Details

RSA Number 118421114 RSA 2008
Bench Bangalore
Appeal Number ITA 1184/BANG/2008
Duration Of Justice 1 year(s) 5 month(s) 4 day(s)
Appellant Shri Bangaru Siddarajappa, Bangalore
Respondent ITO, Bangalore
Appeal Type Income Tax Appeal
Pronouncement Date 10-02-2010
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted B
Tribunal Order Date 10-02-2010
Date Of Final Hearing 15-02-2010
Next Hearing Date 15-02-2010
Assessment Year 1998-1999
Appeal Filed On 05-09-2008
Judgment Text
ITA.1184 & 1185/BANG/2008 PAGE - 1 IN THE INCOME-TAX APPELLATE TRIBUNAL BANGALORE BENCH 'B' BEFORE SHRI. K. P. T. THANGAL VICE PRESIDENT AND SHRI. A. MOHAN ALANKAMONY ACCOUNTANT MEMBER I.T.A.NOS.1184 & 1185/BANG/2008 (ASSESSMENT YEARS : 1998-99 & 1999- 00) SHRI. BANGARU SIDDA RAJAPPA NO.135/1 'BRINDAVAN' BEHIND BALAJI COMPLEX I FLOOR AMRUTHAHALLI MAIL ROAD BANGALORE -92 .. APPELLANT V. INCOME TAX OFFICER WARD -8(4) BANGALORE .. RESPONDENT APPELLANT BY : SHRI. SUKUMAR S. RESPONDENT BY : SMT. JACINTA ZINIK VASHAI/SMT. V. S . SREELEKHA O R D E R PER K. P. T. THANGAL VICE PRESIDENT : THESE ARE APPEALS BY THE ASSESSEE PERTAINING TO AS SESSMENT YEARS 1998-99 AND 1999-00. THE ASSESSEE HAS TAKEN AS MANY AS 12 GROUNDS OF APPEAL FOR ASSESSMENT YEAR 1998-99 WHER EAS AS MANY AS 8 GROUNDS HAVE BEEN RAISED FOR THE ASSESSMENT YEAR 1999-00. 2. WHEN THE MATTER WAS TAKEN UP FOR HEARING THE LE ARNED REPRESENTATIVE FOR THE ASSESSEE SUBMITTED A WRITTEN SUBMISSION FOR BOTH THE YEARS WHICH READ AS UNDER : ITA.1184 & 1185/BANG/2008 PAGE - 2 'NOTICE U/S.148 DT.15.7.2002 WAS ISSUED TO REGULARI ZE THE RETURN OF INCOME FILED ON 17.10.2001. THE ASSESSING OFFICER ISSUED A LETTER DT.19.3.2004 ASKING VARIOUS DETAILS IN RESPECT OF ASSESSMENT YEAR 1998-99 1999 -2000 AND ASKED TO FILE A RETURN REPLY BY 24.3.2004 AND TO APPEAR I N PERSON ON 26.3.2004. THE ASSESSEE FILED A REPLY WITH THE INFORMATION WHA TEVER HE COULD OBTAIN AND CERTAIN DETAILS WHICH WERE COLLECTED BY THE ASSESSING OFFICER WERE PUT TO THE ASSESSEE VIDE ASSESSING OFF ICER'S LETTER DT.19.3.2004. THE ASSESSEE BEING NOT WELL AND WAS HOSPITALIZED FOR CERTAIN SERIOUS AILMENTS COULD NOT FURNISH REPLY FO R ALL THE ITEMS AND THE FACTORY IN WHICH THE ASSESSEE HAS INVESTED AS A PROMOTER VIZ IN SIDDESWARA OIL & ALLIED PRODUCTS PVT LTD. WHICH WA S DECLARED SICK AND BIFR PROCEEDINGS WERE STARTED. THE ASSESSEE CO ULD NOT PROVIDE ALL THE DETAILS WITHIN THE SHORT TIME GIVEN BY THE ASSESSING OFFICER THE ASSESSING OFFICER PASSED AN ORDER ON 31.3.2004 MAKI NG THE FOLLOWING ADDITION : ASSESSMENT YEAR 1998-99 : I) OUT OF AGRICULTURAL INCOME TREATED AS NOT EXPLAI NED - RS. 2 00 000 II)DIFFERENCE IN SALE CONSIDERATION AS NOT PROVED - RS. 8 26 250 III)UNDER LONG TERM CAPITAL GAIN - RS.30 81 770 IV)REALISATION OF LOANS TREATED AS NOT PROVED - RS. 9 00 000 V) RECOVERY OF SUNDRY DEBTORS TREATED AS NOT PROVED - RS. 4 70 000 TOTAL - RS.54 78 020 ASSESSMENT YEAR 1999-00 : I)INVESTMENT IN SIDDESWARA OIL & ALLIED INDUSTRIES PVT. LTD. -RS.34 00 000 THE APPEAL FILED DURING MAY 2004 BY THE ASSESSEE BE FORE THE COMMISSIONER OF INCOME-TAX(A) WAS DECIDED EXPARTE I N OCTOBER 2004 ITA.1184 & 1185/BANG/2008 PAGE - 3 ITSELF. THE APPELLANT COULD NOT REPRESENT BEFORE T HE COMMISSIONER OF INCOME-TAX(A) BECAUSE OF HIS ILLNESS AND ALSO BECAU SE OF BIFR PROCEEDINGS IN RESPECT OF SIDDESWARA OIL & ALLIED P RODUCTS PVT. LTD. WERE HELD AT THE SAME TIME.' 3. ON A PERUSAL OF THE ABOVE WRITTEN SUBMISSION IT IS CLEAR THAT THE ASSESSEE'S CONTENTION THAT THE ASSESSEE COULD NOT M AKE PROPER REPRESENTATION IS TO BE ACCEPTED. THE FIRST LETTER ASKING FOR DETAILS WAS ISSUED ON 19.3.2004 AND ASSESSEE FILED THE REPLY ON 25.3.2004 AND WAS PERSONALLY PRESENT BEFORE THE ASSESSING OFFICER ON 26.3.2004. THE ASSESSMENT ORDER IT APPEARS IS COMPLETED ON 3 1.3.2004. FROM THE ABOVE FACTS IT IS NOTICED THAT THE ASSESSEE COU LD GET ONLY 12 DAYS TIME TO MAKE THE SUBMISSIONS. WE ARE OF THE VIEW T HAT THE TIME ALLOWED TO THE ASSESSEE WAS TOO SHORT. THE FACTORY IN WHICH THE ASSESSEE WAS A PROMOTER M/S. SIDDESWARA OIL & ALLIED PRODUCTS PVT. LTD. WAS DECLARED AS A SICK UNIT AND BIFR PROCEEDI NGS WERE STARTED. DUE TO THIS ACCORDING TO THE ASSESSEE HE COULD NO T PROVIDE THE DETAILS WITHIN THE SHORT TIME. CONSIDERING THE ABOVE FACTS WE ARE OF THE VIEW THAT THE MATTER HAS TO GO BACK TO THE FILE OF THE A SSESSING OFFICER TO DECIDE THE ISSUE AFRESH. HOWEVER WE MAKE IT CLEAR THAT THE ASSESSEE HAS TO COMPLY WITH THE DIRECTIONS OF THE ASSESSING OFFICER AND FURNISH ALL THE DETAILS AS REQUIRED BY HIM. SINCE ON THIS PRELIMINARY ISSUE WE HAVE ALLOWED THE ASSESSEE'S APPEALS OF PAUCITY OF T IME AND VIOLATION ITA.1184 & 1185/BANG/2008 PAGE - 4 OF PRINCIPLES OF NATURAL JUSTICE IT IS NOT NECESSA RY FOR US TO DECIDE THE ISSUE ON MERIT. 4. IN THE RESULT APPEALS BY THE ASSESSEE ARE ALLOWE D FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN OPEN COURT ON 10TH D AY OF FEBRUARY 2010. SD/- SD/- (A. MOHAN ALANKAMONY) (K. P. T. THANGAL) ACCOUNTANT MEMBER VICE PRESIDENT BANGALORE DATED : 10TH FEBRUARY 2010 MCN* COPY TO: 1. THE ASSESSEE 2. THE ASSESSING OFFICER 3. THE COMMISSIONER OF INCOME-TAX 4. COMMISSIONER OF INCOME-TAX(A) 5. DR 6. GF ITAT NEW DELHI 7. GF ITAT BANGALORE