Bharat Vithoba Navale,, Solapur v. Deputy Commissioner of Income-tax, Central Circle -2 (2),, Pune

ITA 252/PUN/2019 | 2011-2012
Pronouncement Date: 22-11-2019 | Result: Partly Allowed

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Appeal Details

RSA Number 25224514 RSA 2019
Assessee PAN AEQPN3245N
Bench Pune
Appeal Number ITA 252/PUN/2019
Duration Of Justice 9 month(s) 7 day(s)
Appellant Bharat Vithoba Navale,, Solapur
Respondent Deputy Commissioner of Income-tax, Central Circle -2 (2),, Pune
Appeal Type Income Tax Appeal
Pronouncement Date 22-11-2019
Appeal Filed By Assessee
Order Result Partly Allowed
Bench Allotted A
Tribunal Order Date 22-11-2019
Last Hearing Date 25-03-2019
First Hearing Date 25-03-2019
Assessment Year 2011-2012
Appeal Filed On 15-02-2019
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH PUNE . BEFORE SHRI D. KARUNAKARA RAO AM AND SHRI VIKAS AWASTHY JM . / ITA NOS.251 TO 253/PUN/2019 / ASSESSMENT YEARS : 2010-11 TO 2012-13 BHARAT VITHOBA NAVALE AT POST EKHATPUR TALUKA-SANGOLA DIST.- SOLAPUR-413307. PAN : AEQPN3245N ....... / APPELLANT / V/S. DCIT CENTRAL CIRCLE-2(2) PUNE. / RESPONDENT ASSESSEE BY : SHRI SUHAS BORA REVENUE BY : SHRI S. P. WALIMBE / DATE OF HEARING : 20.11.2019 / DATE OF PRONOUNCEMENT : 22.11.2019 / ORDER PER D. KARUNAKARA RAO AM: THERE ARE THREE APPEALS UNDER CONSIDERATION. ALL THE THREE APPEALS ARE FILED BY THE SAME ASSESSEE AGAINST THE ORDERS OF CIT(A)-12 PUNE COMMONLY DATED 30.11.2018 FOR THE ASSESSMENT YEARS 2010-11 TO 2012-13 RESPECTIVELY. 2. ALL THESE APPEALS WERE HEARD TOGETHER. SINCE ISSUES COMMON AND FACTS ARE SIMILAR THESE CASES ARE BEING DISPOSED OF VIDE THIS COMPOSITE ORDER. 3. BEFORE US AT THE OUTSET LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT THIS IS A CASE WHERE THE ASSESSEE IS A COPARCENER OF SMALLER HUF OF SHRI DADA N. NAVALE (HUF) I.E. A BRANCH OF MARUTI NIVRUTTI NAVALE (BIGGER HUF). THE ASSESSING OFFICER NOTED THAT THE CASH DEPOSITS IN THE BANK 2 ITA NOS.251 TO 253/PUN/2019 ACCOUNTS MAINTAINED BY THE ASSESSEE. THERE IS ALSO SOME TRANSACTION OF INVESTMENTS IN THE SHARES OF (I) M/S JAI SHRIRAM SUGAR AND AGRO PRODUCTS LTD.; (II) M/S NEEMCO SPINNERS LTD.; AND (III) M/S NEEMCO INVESTMENT AND FINANCE LTD. THE CASH WITHDRAWALS OF THE AGRICULTURAL INCOME OF HUF ARE SPENT TO THE SOURCE OF SUCH INVESTMENTS TO THE CASH DEPOSITS. 4. IN THIS CONTEXT LD. COUNSEL BROUGHT OUR ATTENTION TO THE ORDER OF THE TRIBUNAL IN THE CASE OF MARUTI NIVRUTTI NAVALE (BIGGER HUF) VIDE ITA NO.367/PUN/2017 DATED 15.11.2019. REFERRING TO THE DIRECTIONS OF THE TRIBUNAL LD. COUNSEL MENTIONED THAT IT IS FINDING OF THE TRIBUNAL THAT GROSS TOTAL AGRICULTURAL INCOME OF THE MARUTI NIVRUTTI NAVALE (BIGGER HUF) HAS TO BE QUANTIFIED DIRECTLY IN ACCORDANCE WITH THE MPKV DATA AND THE SAME SHOULD BE ADJUSTED TO THE DEDUCTIONS IF ANY WHICH ARE SPECIFIC TO THAT ASSESSEE. SUBSEQUENTLY OUT OF BALANCE THE FOLLOWING RATIO 51:49 (49% TOWARDS EXPENSES) NET INCOME SHOULD BE QUANTIFIED BEFORE WITHDRAWALS FOR COPARCENARIES ARE CONSIDERED. THE AVAILABLE INCOME IF ANY SHOULD BE ONLY CONSIDERED AS A SOURCE OF INVESTMENT OF THE SAID BIGGER HUF. FURTHER LD. COUNSEL MENTIONED THAT IF THE ABOVE EXERCISE GIVEN EFFECT BY THE ASSESSING OFFICER TO OUR ORDER THE BIGGER HUF SHALL HAVE EXEMPT AGRICULTURAL INCOME AND THE ASSESSEE HAVE CONSEQUENTIAL BENEFITS FOR REAPING. IN THE PROCESS THE ASSESSEE WILL GET SOME RELIEF DUE TO HER SHARE OF HUF INCOME. THE SAME SHOULD BE CONSIDERED TO EXPLAIN THE SOURCES OF THE EACH DEPOSIT IN THE BANK ACCOUNT. IN THIS CONTEXT LD. COUNSEL MENTIONED THAT THIS PART OF THE ISSUE MAY BE REMANDED TO THE FILE OF THE ASSESSING OFFICER FOR A FRESH ADJUDICATION IN THE MATTER AFTER COMPLYING WITH THE SAID DIRECTIONS OF THE TRIBUNAL DATED 15.11.2019 (SUPRA). 3 ITA NOS.251 TO 253/PUN/2019 5. AFTER HEARING BOTH THE SIDES WE FIND THE ARGUMENT OF LD. COUNSEL FOR THE ASSESSEE SHOULD BE ACCEPTABLE. COMING TO THE REMANDING THE ISSUE TO THE FILE OF THE ASSESSING OFFICER WITH REFERENCE TO THE SOURCED INCOME OF MARUTI NIVRUTTI NAVALE (BIGGER HUF) WE DIRECT THE ASSESSING OFFICER TO WAIT TILL THE ASSESSING OFFICER GIVES EFFECT TO THE ORDER OF THE TRIBUNAL (SUPRA) AND CONSIDER THE INCOME IF ANY. THE ASSESSING OFFICER SHALL GRANT REASONABLE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE IN ACCORDANCE WITH SET PRINCIPLES OF NATURAL JUSTICE. THUS THE RELEVANT GROUNDS BASED ON LEGAL ISSUE ARE ALLOWED FOR STATISTICAL PURPOSES. 6. IN THE RESULT ALL THE THREE APPEALS OF THE ASSESSEE ARE PARTLY ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED ON 22 ND DAY OF NOVEMBER 2019. SD/- SD/- ( /VIKAS AWASTHY) ( . /D. KARUNAKARA RAO) / JUDICIAL MEMBER / ACCOUNTANT MEMBER / PUNE; / DATED : 22 ND NOVEMBER 2019. SUJEET / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT. 2. / THE RESPONDENT. 3. THE CIT(A)-12 PUNE. 4. THE PR.CIT CENTRAL PUNE. 5. / DR ITAT A BENCH PUNE. 6. / GUARD FILE. / BY ORDER // TRUE COPY // SENIOR PRIVATE SECRETARY / ITAT PUNE.