Shri B.Jayachandran, Coimbatore v. ACIT, Coimbatore

ITA 1769/CHNY/2010 | 2007-2008
Pronouncement Date: 09-09-2011 | Result: Allowed

Appeal Details

RSA Number 176921714 RSA 2010
Assessee PAN AGJPJ0474A
Bench Chennai
Appeal Number ITA 1769/CHNY/2010
Duration Of Justice 10 month(s) 19 day(s)
Appellant Shri B.Jayachandran, Coimbatore
Respondent ACIT, Coimbatore
Appeal Type Income Tax Appeal
Pronouncement Date 09-09-2011
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted B
Tribunal Order Date 09-09-2011
Date Of Final Hearing 05-09-2011
Next Hearing Date 05-09-2011
Assessment Year 2007-2008
Appeal Filed On 20-10-2010
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH CHENNAI BEFORE SHRI N.S. SAINI ACCOUNTANT MEMBER AND SHRI GEORGE MATHAN JUDICIAL MEMBER I.T.A. NO. 1769/MDS/2010 (ASSESSMENT YEAR : 2007-08) SHRI B. JAYACHANDRAN 1057 AVINASHI ROAD COIMBATORE CHENNAI 641 018. PAN : AGJPJ 0474 A (APPELLANT) VS. THE ASSTT COMMISSIONER OF INCOME TAX CIRCLE - III COIMBATORE. (RESPONDENT) APPELLANT BY : SHRI T. BANUSEKHAR RESPONDENT BY : SHRI K.E .B RENGARAJAN JUNIOR STANDING COUNSEL DATE OF HEARING : 05.09.2011 DATE OF PRONOUNCEMENT : O R D E R PER N.S. SAINI ACCOUNTANT MEMBER : THIS IS AN APPEAL FILED BY ASSESSEE FOR THE ASSESS MENT YEAR 2007-2008 AGAINST THE ORDER DATED 02.08.2010 OF COM MISSIONER OF INCOME TAX (APPEALS)-I COIMBATORE. I.T.A. NO. 1769/MDS/10 2 2. THE ASSESSEE HAS TAKEN 14 GROUNDS OF APPEAL. HO WEVER THE ONLY ISSUE INVOLVED IN ALL THESE GROUNDS IS THAT TH E LD. CIT(A) ERRED IN CONFIRMING THE ACTION OF THE ASSESSING OFFICER I N MAKING ADDITION OF RS. 22 LAKHS AS UNEXPLAINED CASH CREDIT. 3. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE ORDERS OF THE LOWER AUTHORITIES AND THE MATERIAL AVAILABLE ON RECORD. IN THE INSTANT CASE ADDITION OF RS. 22 LAKHS WAS MADE BY THE ASSESSING OFFICER BY INVOKING PROVISIONS OF SECTION 68 OF THE ACT WHICH WAS CONFIRMED BY THE LD. CIT(A). IT IS OBSERVED THAT D URING THE COURSE OF ASSESSMENT PROCEEDINGS THE ASSESSING OFFICER FOUND THAT THE ASSESSEE IS MAINTAINING A BANK ACCOUNT WITH HDFC BA NK IN WHICH RS. 22 LAKHS WAS DEPOSITED IN CASH IN MAY 2006. 4. FURTHER THE ASSESSEE DID NOT REVEAL THE EXISTEN CE OF THIS ACCOUNT EARLIER TO THE ASSESSING OFFICER AND ONLY O N A LATER DATE THE SAME WAS ADMITTED. THE ASSESSEE EXPLAINED THE SOURCE OF DEPOSIT OF RS. 22 LAKHS IN THE SAID BANK ACCOUNT A S MONEY RECEIVED FROM M/S JAYA AUTOMOTIVES P. LTD FROM WHOM THE MONE Y WAS DUE TO I.T.A. NO. 1769/MDS/10 3 THE ASSESSEE. THE REVENUE HAS NOT ACCEPTED THE ABO VE CLAIM OF THE ASSESSEE ON THE GROUND THAT THE RETURN OF M/S JAYA AUTOMOTIVES P. LTD WAS NOT FILED EARLIER AND WAS FILED BELATEDLY O N 22.1.2010 FOR ASSESSMENT YEAR 2007-08 AND BOOKS OF ACCOUNT OF THE COMPANY WERE NOT PRODUCED BEFORE THE ASSESSING OFFICER FOR VERIF ICATION. 5. FURTHER IT WAS ALSO OBSERVED THAT THE SAID M/S JAYA AUTOMOTIVES P. LTD WAS A DEFUNCT COMPANY AND THE ON LY SOURCE OF INCOME OF THAT COMPANY WAS RENTAL INCOME AND THAT C OMPANY HAS ALSO DEFAULTED IN MAKING REPAYMENT OF ITS BANK LOAN . 6. EXPLANATION OF THE ASSESSEE IS THAT THE SAID M/S JAYA AUTOMOTIVES P. LTD RECEIVED MONEY FROM M/S JAYAM AU TOMOTIVES P. LTD AND OUT OF THAT MONEY IT REPAID THE MONEY WHIC H WAS DUE TO THE ASSESSEE. 7. BOTH THE PARTIES BEFORE US HAVE NOT PRODUCED ANY MATERIAL TO SHOW THE DATE ON WHICH RETURN OF INCOME WAS FILED B Y M/S JAYAM AUTOMOTIVES P. LTD. FURTHER THE ASSESSEE HAS CONTEN DED THAT DURING I.T.A. NO. 1769/MDS/10 4 THE COURSE OF ASSESSMENT HEARING THE ASSESSING OFF ICER NEVER ASKED THE ASSESSEE TO PRODUCE THE BOOKS OF ACCOUNT OF M/S JAYA AUTOMOTIVES P. LTD. THUS THE ADVERSE INFERENCE DRA WN AGAINST THE ASSESSEE FOR NON PRODUCTION OF BOOKS OF ACCOUNT OF M/S JAYA AUTOMOTIVES P. LTD IS UNJUSTIFIED AND PRAYED THAT T HE ASSESSEE MAY BE ALLOWED TO PRODUCE THE BOOKS OF ACCOUNT OF THE S AID M/S JAYA AUTOMOTIVES P. LTD FOR VERIFICATION. 8. THE LD. D.R. COULD NOT PRODUCE ANY MATERIAL TO S HOW THAT THE ASSESSEE WAS REQUIRED TO PRODUCE THE BOOKS OF ACCOU NT OF M/S JAYA AUTOMOTIVES P. LTD BY THE ASSESSING OFFICER BEFORE THE COMPLETION OF ASSESSMENT AND SUBMITTED THAT THE DEPARTMENT HAS NO OBJECTION IF THE MATTER IS RESTORED TO THE FILE OF THE ASSESS ING OFFICER FOR VERIFICATION. 9. CONSIDERING THE FULL FACTS AND CIRCUMSTANCES OF THE CASE IN OUR CONSIDERED OPINION IT SHALL BE JUST AND FAIR T O RESTORE THIS ISSUE BACK TO THE FILE OF THE ASSESSING OFFICER FOR VERIF ICATION OF BOOKS OF ACCOUNT OF M/S JAYA AUTOMOTIVES P. LTD AND TO VERIF Y THE DATE OF I.T.A. NO. 1769/MDS/10 5 FILING OF RETURN BY M/S JAYAM AUTOMOTIVES P. LTD AN D THEREAFTER READJUDICATE THE ISSUE AFRESH AFTER ALLOWING REASON ABLE OPPORTUNITY OF HEARING TO THE ASSESSEE AS PER LAW. THUS THE GR OUNDS OF APPEAL OF THE ASSESSEE ARE ALLOWED FOR STATISTICAL PURPOSE S. 10. IN THE RESULT THE APPEAL OF THE ASSESSEE IS AL LOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE COURT ON 9 TH SEPTEMBER 2011. SD/- SD/- (GEORGE MATHAN) (N.S. SAINI) JUDICIAL MEMBER ACCOUNTANT MEMBER CHENNAI DATED THE 9 TH SEPTEMBER 2011. VL COPY TO: (1) APPELLANT (2) RESPONDENT (3) CIT(A) CHENNAI (4) CIT CHENNAI (5) D.R. (6) GUARD FILE