Hemant Kumar Pradhan, Angul v. ITO, Angul Ward, Angul

ITA 190/CTK/2017 | 2009-2010
Pronouncement Date: 29-11-2017 | Result: Allowed

Appeal Details

RSA Number 19022114 RSA 2017
Assessee PAN ALGPP5977Q
Bench Cuttack
Appeal Number ITA 190/CTK/2017
Duration Of Justice 6 month(s) 17 day(s)
Appellant Hemant Kumar Pradhan, Angul
Respondent ITO, Angul Ward, Angul
Appeal Type Income Tax Appeal
Pronouncement Date 29-11-2017
Appeal Filed By Assessee
Tags No record found
Order Result Allowed
Bench Allotted SMC
Tribunal Order Date 29-11-2017
Assessment Year 2009-2010
Appeal Filed On 12-05-2017
Judgment Text
. . IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH CUTTACK BEFORE SHRI N.S.SAINI ACCOUNTANT MEMBER ./ ITA NO. 1 9 0 / CTK /20 1 7 ( / ASSESSMENT YEAR : 20 09 - 20 1 0 ) HEMANT KUMAR PRADHAN SOBHAGYA NAGAR DIST - ANGUL - 759122 VS. ITO ANGUL WARD ANGUL ./ ./ PAN/GIR NO. : A LGPP 5977 Q ( / APPELLANT ) .. ( / RESPONDENT ) /ASSESSEE BY : SHRI S.S.PADHY AR /REVENUE BY : SHRI D.K.PRADHAN DR / DATE OF HEARING : 2 8 / 1 1 /201 7 / DATE OF PRONOUNCEMENT 29 / 11 /201 7 / O R D E R TH IS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF THE CIT(A) - 2 BHUBANESWAR DATED 06.12.2016 . 2. THERE I S A DELAY OF 27 DAYS IN FILING THE PRESENT APPEAL BY THE ASSESSEE. THE ASSESSEE HAS FILED AN AFFIDAVIT EXPLAINING THE REASON FOR DELAY OF 27 DAYS IN FILING THE APPEAL. I FIND THAT THE ASSESSEE HAD SUFFICIENT REASON FOR DELAY IN FILING THE APPEAL. THEREFORE I CONDONE THE DELAY OF 27 DAYS IN FILING THE APPEAL AND ADMIT THE APPEAL FOR HEARING . 3 . GROUND OF 1 OF THE APPEAL RAISED BY THE ASSESSEE READS AS UNDER : - 1 . ADDITION OF RS.1 00 000/ - U/S.69 OF THE INCOME TAX ACT BY THE LEARNED AO IN THE ASSESSMENT PRO CEEDING U/S.147 READ WITH 144 OF THE I.T.ACT ON THE PREMISE OF FAILURE OF THE ASSESSEE TO RECONCILE THE DIFFERENCE OF CASH BALANCE IN THE BANK ACCOUNT AS PER BOOKS OF ACCOUNT AND AS PER THE BANK STATEMENT IS ILLEGAL AND ARBITRARY SINCE THE ORIGINAL ASSESS MENT OF THE APPELLANT U/S.143(3) OF THE ACT HAS BEEN COMPLETED ESTIMATING THE PROFIT OF THE APPELLANT @8% OF THE GROSS CONTRACT RECEIPTS. ITA NO. 1 9 0 /CTK/201 7 2 4 . BRIEF FACTS OF THE CASE ARE THAT THE ASSESSING OFFICER IN THE ASSESSMENT ORDER AT PAGE 2 HAS DETAILED OUT IN THE C HART THE VARIOUS DATES ON WHICH NOTICES WERE ISSUED TO THE ASSESSEE AND THE SAME WERE NOT COMPLIED BY THE ASSESSEE WHICH ARE AS UNDER : - DATE OF ISSUE OF NOTICE NOTICE U/S. DATE OF FIXATION OF HEARING FATE OF NOTICE REMARKS 04/02/2014 148 TO FURNISH RETU RN OF INCOME WITHIN ONE MONTH DULY SERVED BY HAND REQUEST TO TREAT THE RETURN ORIGINAL RETURN U/S.148 03/06/2014 142(1) 16/06/2014 NOTICE RETURNED BACK UNSERVED 19/06/2014 142(1) 25/06/2014 DULY SERVED BY HAND NO COMPLIANCE 13/08/2014 142(1) 25/08/2014 DULY SERVED BY SPEED POST NO COMPLIANCE 22/09/2014 SHOW CAUSE WITH 142(1) 29/09/2014 DULY SERVED BY SPEED POST NO COMPLIANCE 09/10/2014 142(1) 143(2) 28/10/2014 DULY SERVED BY SPEED POST NO COMPLIANCE 28/10/2014 142(1) 10/11/2014 DULY SERVED BY SPEED P OST NO COMPLIANCE 11/11/2014 142(1) 18/11/2014 DULY SERVED BY SPEED POST - 08/01/2015 142(1) 27/01/2015 DULY SERVED BY SPEED POST NO COMPLIANCE 28/01/2015 142(1) 05.02.2015 DULY SERVED BY SPEED POST NO COMPLIANCE 28/01/2015 SHOW CAUSE FOR THE PROPOSED ADDITION 05.02.2015 DULY SERVED BY SPEED POST NO COMPLIANCE THEREFORE THE AO COMPLETED THE ASSESSMENT U/S.147/144 OF THE ACT ON 11.02.2015 ASSESSING TOTAL INCOME OF THE ASSESSEE AT RS.4 93 640/ - BY MAKING AN ADDITION OF RS.1 00 000/ - U/S.69 OF THE ACT TO THE ORIGINALLY ASSESSED INCOME OF RS.3 93 640/ - U/S.143(3) OF THE ACT VIDE ORDER DATED 23.12.2011. 5 . THE ASSESSEE FILED APPEAL BEFORE THE CIT(A) AND THE CIT(A) DISMISSED THE APPEAL OF THE ASSESSEE ON THE GROUND THAT THE ASSESSEE ITA NO. 1 9 0 /CTK/201 7 3 WAS NOT ABLE TO RECONC ILE THE CLOSING BALANCE AS PER BOOKS OF ACCOUNTS AND BANK PASS BOOK DURING THE COURSE OF APPEAL HEARING. 6 . LD. AR OF THE ASSESSEE SUBMITTED THAT THE ORIGINAL ASSESSMENT U/S.14 3 (3) OF THE ACT WAS MADE ON 23.12.2011 BY REJECTING THE BOOKS OF ACCOUNTS OF THE ASSESSEE AND ESTIMATING THE INCOME BY APPLYING RATE OF 8% TO THE GROSS CONTRACT RECEIPT OF RS.49 10 212/ - THEREBY ARRIVING AT AN INCOME OF THE ASSESSEE AT RS.3 92 816/ - . HE SUBMITTED THAT WHEN THE AO HAS REJECTED THE BOOKS OF ACCOUNTS OF THE ASSESSEE AND MADE AN ESTIMATE OF THE INCOME THEN ON THE BASIS OF THE VERY SAME BOOKS OF ACCOUNT HE CANNOT REOPEN THE ASSESSMENT U/S.147 OF THE ACT AND MAKE ADDITION OF RS.1 LAKH U/S.69 OF THE ACT ON THE GROUND OF DIFFERENCE IN THE AMOUNT SHOWN IN THE BOOKS OF ACCOUNT AS DEPOSIT WITH ALLAHABAD BANK OF RS.1 077/ - AND AS PER THE BANK PASS BOOK RS.1 01 077/ - 7 . LD. DR SUPPORTED THE ORDERS OF THE LOWER AUTHORITIES . 8 . I HAVE HEARD RIVAL SUBMISSIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. IN THE INSTANT CASE THE UNDI SPUTED FACTS OF THE CASE ARE THAT THE AO MADE ASSESSMENT U/S.143(3) OF THE ACT BY PASSING THE ORDER ON 23.12.2011 BY REJECTING THE BOOK RESULTS OF THE ASSESSEE AND ESTIMATING THE INCOME BY APPLYING RATE OF 8% ON THE GROSS CONTRACT RECEIPTS OF RS.49 10 212/ - AND ESTIMATED THE INCOME AT RS.3 92 816/ - .THEREAFTER THE AO PASSED AN ORDER U/S.147/144 OF THE ACT ON 11.02.2015 MAKING AN ADDITION OF RS.1 00 000/ - U/S.69 OF THE ACT ON ACCOUNT OF DIFFERENCE BETWEEN THE AMOUNT SHOWN IN THE BANK ACCOUNT MAINTAINED WITH ITA NO. 1 9 0 /CTK/201 7 4 ALLAHABAD BANK AND THE AMOUNT SHOWN IN THE BOOKS OF ACCOUNTS OF ASSESSEE. ON APPEAL THE CIT(A) CONFIRMED THE ACTION OF AO. 9 . I FIND THAT THE ORIGINAL ASSESSMENT U/S.143(3) OF THE ACT WAS MADE BY THE AO BY REJECTING THE BOOKS OF ACCOUNTS OF THE ASSESSEE A ND ESTIMATING THE INCOME OF THE ASSESSEE AT 8% OF THE GROSS CONTRACT RECEIPT OF RS.49 10 212/ - . IT IS TRITE LAW THAT ONCE THE BOOKS OF ACCOUNTS OF THE ASSESSEE ARE REJECTED THE SAME CANNOT BE RELIED FOR MAKING ADDITION U/S.69 OF THE ACT. MY VIEW FINDS SUP PORT FROM THE DECISION OF LUCKNOW BENCH OF THE TRIBUNAL IN THE CASE OF ITO VS. M.S.BUILDERS PVT. LTD. IN ITA NO.564/LKW/2011 (AY : 2008 - 09) ORDER DATED 26.05.2013. THEREFORE I SET ASIDE THE ORDERS OF LOWER AUTHORITIES AND DELETE THE ADDITION OF RS.1 00 000/ - U/S.69 OF THE ACT AND ALLOW THIS GROUND OF APPEAL OF ASSESSEE. 10 . AS I HAVE ALREADY DELETED THE ADDITION OF RS.1 00 000/ - MADE U/S.69 OF THE ACT OTHER GROUNDS OF APPEAL TAKEN BY THE ASSESSEE ON REOPENING OF ASSESSMENT HAVE BECOME ACADEMIC IN NATUR E AND HENCE BECOME INFRUCTUOUS. 1 1 . IN THE RESULT THE APPEAL OF THE ASSESSEE IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 29 / 11 /201 7 . SD/ - (N. S. SAINI) / ACCOUNTANT MEMBER CUTTACK ; DATED 29 / 11 /201 7 . . / PKM SENIOR PRIVATE SECRETARY ITA NO. 1 9 0 /CTK/201 7 5 / COPY OF THE ORDER FORWARDED TO : / BY ORDER ( SENIOR PRIVAT E SECRETARY ) / ITAT CUTTACK 1. / THE APPELLANT - 2. / THE RESPONDENT - 3. ( ) / THE CIT(A) 4. / CIT 5. / DR ITAT CUTTACK 6. / GUARD FILE. //TRUE COPY//