Sh. Rashpal Singh, Kurukshetra v. ITO, Chandigarh

ITA 497/CHANDI/2017 | 2008-2009
Pronouncement Date: 28-11-2017 | Result: Allowed

Appeal Details

RSA Number 49721514 RSA 2017
Assessee PAN ATUPS7831C
Bench Chandigarh
Appeal Number ITA 497/CHANDI/2017
Duration Of Justice 8 month(s) 13 day(s)
Appellant Sh. Rashpal Singh, Kurukshetra
Respondent ITO, Chandigarh
Appeal Type Income Tax Appeal
Pronouncement Date 28-11-2017
Appeal Filed By Assessee
Tags No record found
Order Result Allowed
Bench Allotted SMC
Tribunal Order Date 28-11-2017
Assessment Year 2008-2009
Appeal Filed On 16-03-2017
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL CHANDIGARH BENCHES SMC CHANDIGARH BEFORE MS. DIVA SINGH JUDICIAL MEMBER ITA NO 497/CHD/2017 ASSESSMENT YEAR : 2008-09 SHRI RASHPAL SINGH VS THE ITO HOUSE NO. 287 SECTOR 37-A WARD-41) CHANDIGARH. CHANDIGARH (NOW AT # 155 MODEL TOWN PEHOWA KURUKSHETRA. PAN NO.ATUPS7831C (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI PARIKSHIT AGGARWAL RESPONDENT BY : SMT. CHANDER KANTA SR.DR DATE OF HEARING : 11.10.2017 DATE OF PRONOUNCEMENT : 28.11. 2017 ORDER THE PRESENT APPEAL HAS BEEN FILED BY THE ASSESSEE ASSA ILING THE CORRECTNESS OF THE ORDER DATED 17.01.2017 OF LD. CIT (APPE ALS)-2 CHANDIGARH PERTAINING TO 2008-09 ASSESSMENT YEAR ON VARIOUS GROUN DS. HOWEVER ARGUMENTS WERE ADDRESSED ONLY IN REGARD TO GROUND NO . 2 WHEREIN THE LD. AR MODIFIED HIS PRAYER THAT THE IMPUGNED ORDER IN VIEW OF THE PECULIAR FACTS AND CIRCUMSTANCES MAY BE SET ASIDE BACK TO THE FILE OF THE AO INSTEAD OF PRAYING FOR QUASHING THE RE-ASSESSMENT PROCEEDINGS. THE SPECIFIC G ROUND READS AS UNDER : 2. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CA SE AND IN LAW THE LD. CIT(A) HAS ERRED IN DELETING THE ADDITION OF RS. 36 89 382 /- MADE BY THE A.O. U/S 68 OF THE I.T. ACT 1961 PARTICULARLY WHEN THE LD. CIT(AJ HIMSELF RECORDED FINDING THAT THE SAID PARTNERS WOULD NOT HAVE HAD S UFFICIENT MONEY FOR INVESTMENT AS CAPITAL IN THE ASSESSEE FIRM IN THE B EGINNING OF F.Y. 2007-08 AND THAT THE VERIFICATION PRODUCED BEFORE HIM IN TH E NAME OF ONE OF PARTNERS IS NO CONFIRMATION IN THE EYES OF LAW' 2. THE LD. AR INVITING ATTENTION TO THE PECULIAR FACTS AVA ILABLE ON RECORD INVITED ATTENTION TO THE FACTS AS CONSIDERED AND ADDRESS ED BEFORE THE CIT(A) IN SUPPORT OF THE PRAYER FOR A REMAND OF THE PROCEEDINGS T O THE AO. REFERRING TO THE SAME IT WAS SUBMITTED THAT THE BASIS OF RE-OPENING O F THE ASSESSMENT IS THE ORDER OF CIT(A) IN THE CASE OF THE FIRM M/S VRRH IN WH ICH APPELLANT IS ONE OF THE PARTNERS. ASSESSEE AND OTHER PARTNERS INTRODU CED CAPITAL IN THE SAID FIRM AND THE CAPITAL INTRODUCED WAS TREATED AS UNEXPL AINED AND WAS DELETED IN THE HANDS OF THE FIRM AND THE C1T(A) MADE AN OBSERV ATION THAT THE AO MAY LOOK INTO ITA 497/CHD/2017 A.Y. 2008-09 PAGE 2 OF 2 THE POSSIBILITY OF RE-OPENING THE CASES OF THE PART NERS FOR THE RELEVANT ASSESSMENT YEAR U/S 148 SINCE THE CAPITA' INTRODUCED BY THE PARTN ERS INCLUDING THE APPELLANT IS FAR MORE THEN INCOME DECLARED BY THEM. IT WAS SUBMITTED THAT THIS ORDER OF CIT(A) HAS BEEN SET ASIDE BY THE ITAT AND T HEREFORE WHEN THE VERY BASIS OF RE-OPENING OF THE PRESENT CASE HAS BEEN SET- ASIDE THE RE-OPENING HAS BEEN RENDERED ILLEGAL. RELIANCE WAS PLACED ON THE R ATIO OF THE JUDGEMENT OF KARNATAKA HIGH COURT IN THE CASE OF S.L BASAVSRAI ( HUF) U/S ACIT ITA NO. 336(.2009). ORDER OF THE ITAT IN ITA 1109/CHD/2014 IN THE CASE OF M/S VRRH V ITO CHANDIGARH DATED 28.11.2016 IT WAS SUBMITTED IS PLACED AT PAPER BOOK PAGE NO. 31-33. ACCORDINGLY IT WAS HIS LIMITED PRAYER THAT IN TERMS OF THE DIRECTIONS THEREIN THE ORDER MAY BE REMANDED. 3. THE LD. SR.DR CONSIDERING THE RECORD IN THE LIGHT OF THE ORDER OF THE ITAT AND THE AFORESAID PRAYER OF THE LD. AR HAD NO OBJECTION IF THE ISSUE IS ALSO REMANDED BACK TO THE AO. 4. I HAVE HEARD THE SUBMISSIONS AND PERUSED THE MATER IAL AVAILABLE ON RECORD. IN THE LIGHT OF THE SUBMISSIONS OF THE PARTIES BEFO RE THE BENCH IN THE FACTS AS ARGUED I FIND THAT IT WOULD BE IN THE INTEREST O F JUSTICE TO SET ASIDE THE IMPUGNED ORDER BACK TO THE FILE OF THE AO TO TAKE A VIEW IN CONFORMITY WITH THE VIEW TAKEN IN ITA 1109/CHD/2014 IN THE CASE OF M/S VRRH CHANDIGARH. NEEDLESS TO SAY THAT ASSESSEE SHALL PARTICIPA TE IN THE PROCEEDINGS FULLY AND FAIRLY AND SHALL NOT ABUSE THE TRUST DEPOSED FAILING WHICH THE AO WOULD BE AT LIBERTY PASS A SPEAKING ORDER ON THE BASIS OF MATERIAL AVAILABLE ON RECORD. THUS IT IS HOPED THAT THE AS SESSEE IN ITS OWN INTEREST MAKES FULL AND PROPER COMPLIANCE BEFORE THE SAID AUTHORITY. 5. IN THE RESULT THE APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 28.11. 2017. SD/- (DIVA SINGH) JUDICIAL MEMBER POONAM COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT 4. THE CIT(A) 5. THE DR ASSTT. REGISTRAR ITAT CHANDIGARH.