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Income Tax Appellate Tribunal, MUMBAI BENCHES “E”, MUMBAI
Before: Shri Joginder Singh, & Shri N.K. Pradhan
Per Joginder Singh (Judicial Member) This bunch of seven appeals is by the assessee against the impugned orders all dated 21/01/2015 of the Ld. First Appellate Authority, Mumbai, confirming the assessment orders framed u/s 144 r.w.s. 153A of the Income Tax Act, 1961 (hereinafter the Act).
During hearing, the ld. counsel for the assessee, Ms. Pranali Dixit, contended that during assessment proceedings, the assessee filed part details and remaining details could not be filed due to certain compelling reasons. Thus, the Ld. Assessing Officer was not justified in framing an ex-parte assessment u/s 144A of the Act. It was contended that the assessee was very much in a position to explain the alleged an unexplained cash credit and consequent addition made u/s 68 and 69C of the Act.
The ld. counsel took us to various paras of the assessment order as well as of the impugned orders. On the other hand, Shri M. Swamy, ld. CIT-DR, strongly defended the assessment order as well as the impugned order by 3 Smt. Sushila L. Gala to 2008/Mum/2016 contending that the assessee could not produce the necessary details in full, therefore, the Ld. Assessing Officer could not examine the factual details. It was also pleaded that in spite of sufficient opportunity, provided to the assessee, the necessary details could not be filed, therefore, the ld. Assessing Officer had no option but to frame the assessment u/s 144 of the Act.
2.1. We have considered the rival submissions and perused the material available on record. The facts, in brief, are that a search and seizure action u/s 132 was carried out between 23/02/2010 and 20/04/2010 at the offices of Reliable Paper (India) Pvt. Ltd. and its group concerns. As per the Revenue, certain incriminating documents relating to the assessee were found and thus simultaneous action u/s 132 of the Act was carried out at the premises of the assessee. Notice u/s 153A of the Act was issued on 31/01/2011 to which the assessee filed return of income showing income at Rs.6,48,650/- on 15/02/2011 (Assessment Year 2004-05), whereas, various notices were issued to the assessee and also show cause
4 Smt. Sushila L. Gala to 2008/Mum/2016 notice along with questionnaire in spite of that the assessee filed part details. Ultimately, the Ld. Assessing Officer framed the assessment u/s 144 r.w.s. 153A of the Act. The fact remains that full details, as required by the Assessing Officer, were not filed by the assessee. Before us, the assessee has contested, confirmation of disallowance and other additions on account alleged unexplained loan credits invoking the provisions of section 68 and unexplained expenditure u/s 69C of the Act.
Without going into much deliberation, we are of the view that merely on technical ground, no relief can be granted to the assessee more specifically when necessary full details as required by the Assessing Officer were not filed by the assessee. Even the Ld. CIT-DR strongly pleaded that if the relief is granted merely on technical grounds, it will cause loss to the Revenue. It is noted that notice u/s 153A dated 31/01/2011 was served upon the assessee to which the assessee declared income of Rs.6,48,650/-.
Thereafter, notice u/s 143(2) and 142(1) along with questionnaire were served upon the assessee calling for 5 Smt. Sushila L. Gala to 2008/Mum/2016 various details. The assessee filed partial submission/details. Thereafter vide notice dated 15/10/2012, issued u/s 142(1) of the Act, the assessee was asked to file necessary details. Similar notices/show cause notices were served upon the assessee thereafter also. We are of the view that even as per mandate of Article-265 of Constitution of India, only due taxes has to be levied/collected. Keeping in view, the principle of nature justice, non-appearance of the assessee/non-filing of necessary full details during assessment proceedings, by taking a lenient view, we deem it appropriate to remand these appeals to the file of the ld. Assessing Officer. The assessee is directed to furnish necessary details to substantiate her claim. Assessee be given opportunity of being heard. Thus, the appeals of the assessee are set- aside to the file of the Ld. Assessing Officer to examine the claim of the assessee and decide in accordance with law, resultantly, the appeals are allowed for statistical purposes only.
6 Smt. Sushila L. Gala to 2008/Mum/2016 Finally, the appeals of the assessee are allowed for statistical purposes.
This Order was pronounced in the open court in the presence of ld. representatives from both sides at the conclusion of the hearing on 22/05/2018.