SHRI NAGAPPA R KASHIRAJ,YADGIR vs. INCOME TAX OFFICER, WARD-1, YADGIR

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ITA 1977/BANG/2017Status: DisposedITAT Bangalore13 March 2020AY 2014-154 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal found the assessee's argument about double taxation on admitted income and Section 68 additions to be realistic. Considering the additional grounds of appeal and the CIT(A)'s lack of observation on these aspects, the Tribunal set aside the CIT(A)'s order.

What were the facts?

The assessee, with income from agriculture, sheep farming, and house property, filed a return. During scrutiny, the Assessing Officer (AO) found the assessee carrying cash of Rs. 12 Lakhs, leading to an investigation and admission of income. The AO made additions under Section 68 for cash deposits and assessed a higher total income. The CIT(A) confirmed the AO's action due to lack of evidence.

What were the issues?

Whether the CIT(A) erred in sustaining additions without considering the issue of double taxation and additional grounds of appeal raised by the assessee.

Which sections of the Income-tax Act were involved?

Section 68,Section 143(3),Section 250

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, BANGALORE BENCHES “ A ” BENCH: BANGALORE

Before: SHRI A.K. GARODIA & SHRI PAVAN KUMAR GADALEShri Nagappa R Kashiraj,

For Appellant: Shri G. Venkatesh, Advocate
For Respondent: Shri Manjeet Singh, Addl. CIT (D.R)
Hearing: 09.03.2020Pronounced: 13.03.2020

O R D E R

PER SHRI PAVAN KUMAR GADALE, JM :

1.

The assessee has filed an appeal against the order of Commissioner of Income Tax (Appeals), Gulbarga passed u/s. 143(3) and u/s 250 of the Income Tax Act, 1961.

2.

At the time of hearing, the learned Authorized Representative submitted that there is a delay of one day in filing the appeal before the tribunal and condonation petition is filed. We considered the facts and reasons envisaged by LdAr for the delay and the learned Departmental Representative has no serious objections. Accordingly, the delay is condoned and the appeal is admitted.

3.

The Brief facts of the case are, the assessee has income from agriculture, sheep farming and income from house property. The Assessee filed the Return of Income on 7.1.2015 with total income of Rs.5,44,350/-,subsequently the case was selected for scrutiny and Notice under Section 143(2) and 142(1) of the Act were issued. The Assessing Officer found, that assessee was carrying cash of Rs12 Lakhs and was intercepted at Airport and the case was investigated, further the Assessee has admitted income and statement was recorded. The Ao in assessment proceedings dealt on the submissions and information, but made addition of cash deposits under Section 68 of the Act and income admitted by the assessee and Assessed total income of Rs 94,83,314/- and passed order under Section 143(3) of the Act dt.30.11.2016. Aggrieved by the order, the assessee has filed an appeal with the CIT (Appeals).The learned CIT (Appeals), considering the grounds of appeal

, submissions of the assessee observed that the no evidences were submitted or explanations in respect of entries in the Books of Accounts hence confirmed the Assessing officer and dismissed the appeal. Aggrieved by the CIT (Appeals) order, the assessee has filed an appeal with the Tribunal.

4. At the time of hearing, the learned Authorized Representative submitted that Cit (Appeals) has erred in sustaining the addition, and further argued that the additional grounds of appeal are filed for the first time before the tribunal, as the assessee has suffered double taxation under income admitted and addition of cash deposits under Section 68 of the Act and prayed for allowing the appeal. Contra, the ld. DR supported the order of CIT (Appeals).

5. We heard the rival submissions and perused the material on record. The learned Authorized Representative has restricted his submissions, explaining that the assessee has suffered income tax twice under income admitted and addition under Section 68 of the Act. The assessee for the first time raised additional grounds of appeal and are important in decision making of the present case. We found the submissions of the LdAr are realistic on facts and Law.. Hence, considering the facts and circumstances, principles of natural justice and that the assessee has filed additional grounds of appeal and there are no observations of CIT (Appeals) on theses aspects. We set aside the order of the CIT (Appeals) and restore the entire disputed issues and additional grounds of appeal to the file of CIT (Appeals) to adjudicate afresh and pass a speaking order and the assessee should be provided adequate opportunity of hearing and shall co-operate in submitting the information for early disposal of appeal and allow the grounds of appeal of the assessee for statistical purposes

6. In the result, the assessee's appeal is allowed for statistical purposes. Pronounced in the open court on the date mentioned on the caption page.

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