Ranjeet Ishwarlal Mahale, Dhule v. ITO (CIB),, Nashik

ITA 224/PUN/2010 | 2005-2006
Pronouncement Date: 08-07-2011 | Result: Allowed

Appeal Details

RSA Number 22424514 RSA 2010
Assessee PAN AFKPM5590F
Bench Pune
Appeal Number ITA 224/PUN/2010
Duration Of Justice 1 year(s) 5 month(s)
Appellant Ranjeet Ishwarlal Mahale, Dhule
Respondent ITO (CIB),, Nashik
Appeal Type Income Tax Appeal
Pronouncement Date 08-07-2011
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted B
Tribunal Order Date 08-07-2011
Date Of Final Hearing 02-06-2011
Next Hearing Date 02-06-2011
Assessment Year 2005-2006
Appeal Filed On 08-02-2010
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH B PUNE BEFORE SHRI I.C. SUDHIR (JM) AND SHRI D. KARUNAKARA RAO (AM) ITA NO.224/PN/2010 (ASSTT. YEAR : 2005-06) SHRI. RANJEET ISHWARLAL MAHALE ... APPELLANT 221 -A SHRAM SAFALYA STATION ROAD DHULE PIN:424 005 PAN : AFKPM 5590 F V. INCOME TAX OFFICER (CIB) RESPONDENT NASHIK ITA NO.225/PN/2010 (ASSTT. YEAR : 2005-06) SMT. SUNITA RANJ EET MAHALE ... APPELLANT 221 -A SHRAM SAFALYA STATION ROAD DHULE PIN:424 005 PAN : AQFPM 2772 E V. INCOME TAX OFFICER (CIB) RESPONDENT NASHIK APPELLANT BY : NONE RESPONDENT BY : ANN KAPTHUAMA ORDER PER I.C. SUDHIR JM IN ITA NO. 224/PN/2010 THE ASSESSEE HAS QUESTIO NED FIRST APPELLATE ORDER ON THE GROUND THAT THE LD CIT(A) W AS NOT JUSTIFIED IN CONFIRMING THE ADDITION OF RS.2 95 388/- MADE ON AC COUNT OF UNEXPLAINED EXPENDITURE ON SUBSTANTIVE BASIS. 2. IN ITA NO. 225/PN/2010 THE ASSESSEE (WIFE OF TH E ASSESSEE IN ITA NO. 224/PN/2010) HAS QUESTIONED FIRST APPELLATE ORD ER ON THE GROUND THAT THE LD CIT(A) HAS ERRED IN CONFIRMING THE ADDITION OF RS. 2 95 388/- MADE ON ACCOUNT OF UNEXPLAINED EXPENDITURE ON PROTECTIVE BASIS. ITA . NOS 224 & 225/PN/2010 RANJEET ISHWARLAL MAHALE ETC. A.Y 2005-06 PAGE OF 3 2 3. THE RELEVANT FACTS ARE THAT ON THE BASIS OF INFO RMATION RECEIVE FROM ANNUAL INFORMATION REPORT FURNISHED U/S. 285BA OF THE ACT THE ITO NOTICED THAT THE ASSESSEES I.E. HUSBAND AND WIFE HA D MADE PAYMENTS AGGREGATING TO RS. 2 95 388/- THROUGH THEIR JOINT C REDIT CARD DURING THE YEAR RELEVANT TO ASSESSMENT YEAR UNDER CONSIDERATI ON. NOTICES U/S. 142(1) OF THE ACT WAS ISSUED AND SERVED UPON THEM C ALLING FOR FILING THEIR RETURNS OF INCOME. SINCE THERE WAS NO COMPLIANCE THE ASSESSMENT U/S. 144 OF THE ACT TREATING THE AMOUNT OF RS. 2 95 388/ - AS UNEXPLAINED EXPENDITURE IN THE HANDS OF THE ASSESSEE-HUSBAND ON SUBSTANTIVE BASIS AND IN THE HANDS OF THE WIFE- ASSESSEE ON PROTECTIV E BASIS. THE LD CIT(A) HAS ALSO UPHELD THE SAME HENCE THE ASSESSES ARE IN APPEAL BEFORE THE TRIBUNAL. 4. HAVING GONE THROUGH THE ORDERS OF THE AUTHORITIE S BELOW WE FIND THAT BEFORE THE TRIBUNAL THE ASSESSEE-HUSBAND HAS TRIED TO EXPLAIN THE SOURCE OF THE AMOUNT IN QUESTION RELEVANT EXTRACT WHEREOF HAS BEEN REPRODUCED BY THE CIT(A) AT PAGE NO. 2 TO 6 OF THE FIRST APPELLATE ORDER. THE LD CIT(A) CALLED REMAND REPORT FROM THE A.O ON THE SAID SUBMISSION. THE A.O. IN HIS REMAND REPORT HAS TRIED TO JUSTIFY THE ASSESSMENT ORDER PASSED U/S. 144 OF THE ACT ON THE BASIS THAT THERE WAS FAILURE ON THE PART OF THE ASSESSEE TO COMPLY WITH THE NOTICES AND THE PROCEEDINGS WERE GOING TO BE TIME BARRED. WE OBSERVED FROM THE REMA ND REPORT THAT THE A.O HAS NOT COMMENTED UPON THE MERIT OF THE EXPLANA TION FURNISHED BY THE ASSESSEE-HUSBAND REGARDING THE SOURCE OF THE AM OUNT SPENT BY HIM THROUGH THE CREDIT CARD. ON THE EXPLANATION OF THE ASSESSEE BEFORE THE LD CIT(A) THAT HE IS REGULARLY ASSESSED TO THE TAX WIT H THE I.T.O THE LD CIT(A) HAS COMMENTED THAT THE A.O DID NOT APPRECIAT E THIS EXPLANATION OF THE ASSESSEE AS NOT RELEVANT SINCE THE ASSESSEE DID NOT POINT OUT THIS FACT TO THE A.O IN THE ASSESSMENT PROCEEDINGS IN R ESPONSE TO VARIOUS ITA . NOS 224 & 225/PN/2010 RANJEET ISHWARLAL MAHALE ETC. A.Y 2005-06 PAGE OF 3 3 NOTICES ISSUED. WE THUS FIND THAT MERIT OF THE EXP LANATION FURNISHED BY THE ASSESSEE-HUSBAND HAS NOT BEEN ADDRESSED BY THE AUTHORITIES BELOW. SIMILAR IS THE POSITION IN THE CASE OF WIFE-ASSESSE E IN WHOSE HAND SIMILAR ADDITION HAS BEEN MADE AND UPHELD ON PROTECTIVE BAS IS WITH THIS FINDING THAT SHE WAS HAVING NO INDEPENDENT SOURCE OF INCOME . UNDER THESE CIRCUMSTANCES AND TO MEET THE END JUSTICE WE SET ASIDE THE MATTER TO THE FILE OF THE A.O TO CONSIDER THE SUBMISSIONS OF THE ASSESSEES ABOUT THE SOURCE OF AMOUNT IN QUESTION AND DECIDE THE ISSUE A FRESH AFTER AFFORDING OPPORTUNITY OF BEING HEARD TO THEM. THE GROUNDS OF THE APPEALS ARE ALLOWED FOR STATISTICAL PURPOSES. 5. IN RESULT APPEALS ARE ALLOWED FOR STATISTICAL P URPOSES. THE ORDER IS PRONOUNCED IN THE OPEN COURT ON 8TH JU LY 2011. SD/- SD/- ( D. KARUNAKARA RAO ) ACCOUNTANT MEMBER ( I.C. SUDHIR ) JUDICIAL MEMBER PUNE DATED THE 8TH JULY 2011 US COPY OF THE ORDER IS FORWARDED TO : 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT -I N ASHIK 4. THE CIT(A)- I NASHIK 5. THE D.R. B BENCH PUNE 6. GUARD FILE BY ORDER ASSISTANT REGISTRAR INCOME TAX APPELLATE TRIBUNAL PUNE