SHRI V.R. GUNASEKARAN,HYDERABAD vs. ITO, VILLUPURAM

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ITA 2534/CHNY/2016Status: DisposedITAT Chennai26 April 2018AY 2007-086 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal, in the interest of justice, admitted fresh evidence produced by the assessee and remitted the matter back to the AO for de-novo consideration. Both the assessee's and revenue's appeals were allowed for statistical purposes.

What were the facts?

The assessee, engaged in real estate business, faced additions by the AO for multiple assessment years following a survey. These additions were partly confirmed by the CIT(A), leading to appeals from both the assessee and the revenue.

What were the issues?

Whether fresh evidence submitted at the appellate stage should be admitted and if the matter should be remanded to the AO for re-examination.

Which sections of the Income-tax Act were involved?

Section 133A,Section 69B,Section 143(3),Section 147,Section 250(6)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, ‘C’ BENCH, CHENNAI

Before: SHRI N.R.S. GANESAN & SHRI A.MOHAN ALANKAMONY

For Respondent: Smt. Ruby George, CIT
Hearing: 26.04.2018

आदेश / O R D E R

Per A. Mohan Alankamony, AM:-

1.

These appeals by the assessee are directed against the orders passed by the learned Commissioner of Income Tax PDY/2013-14, & 640/CIT(A)- PDY/2013-14 and dated 28.06.2016 in ITA No.545/CIT(A)- PDY/2013-14 & 030/CIT(A)-PDY/2015-16 for the assessments year 2007-08, 2008-09 2009-10 and 2010-11 & 2011-12 respectively all passed U/s.250(6) r.w.s. 143(3) & 147 of the Act. The Revenue has also raised an appeal against the order of the Ld.CIT(A) for the assessment year 2011-12.

2.

Assessee’s Appeal:-

The assessee has raised several identical grounds in its appeals and they are briefly stated hereunder for adjudication:- i. The Ld.CIT(A) has erred in confirming the addition made by the Ld.AO amounting to Rs.24,26,000/- as unexplained investment in VMR Complex, Kallakurichi for the assessment year 2007-08. ii. The Ld.CIT(A) has erred in assessing the profit on sale of plots as Rs.10,44,280/-, Rs.32,96,300/-, Rs.9,04,420/- for the assessment years 2007-08, 2008-09 & 2010-11 respectively on estimated basis. the Ld.AO who had assessed the agricultural income declared by the assessee as unexplained income for the assessment years 2007-08, 2008-09, 2009-10, 2010-11 &

2011-12. iv. The Ld.CIT(A) has erred in sustaining the addition of Rs.31,75,540/- as unexplained investment U/s.69B of the Act by adopting wrong method of telescoping of income for the assessment year 2011-12.

3.

Revenue’s Appeal :- The Revenue has raised the following ground in its appeal for the assessment year 2011-12:- The Ld.CIT(A) has erred in allowing the telescoping benefit of Rs.49,14,460/- and thereby sustaining the addition of Rs.31,75,540/- as against the addition of Rs.80,90,000/- made by the Ld.AO.

4.

The brief facts of the case are that the assessee is an individual engaged in real estate business and also earned income as partner of a partnership firm. A survey U/s.133A of on 13.07.2010, thereafter the assessment was reopened for the assessment year 2007-08, 2008-09, 2009-10, 2010-11 & 2011- 12 wherein the Ld.AO made several additions which were partly sustained by the Ld.CIT(A), aggrieved by which the assessee and the Revenue are in appeal before us for the relevant assessment years.

5.

At the outset the Ld.AR submitted before us that one more opportunity may be granted to the assessee in order to present the requisite documents before the Ld.AO which he is in now possession off and submitted before the Bench for the first time. The Ld.AR further pleaded that the assessee has a fair chance to succeed in his appeal and if another opportunity is not provided it would be miscarriage of justice and the assessee would have to suffer irreparable loss. Hence it was vehemently pleaded that the matter may be remitted back to the file of the Ld.AO in order to examine the fresh evidence submitted before the Tribunal for the first time and thereafter to pass appropriate order as per merit and law. The Ld.DR on the other hand vehemently opposed to the submission of the Ld.AR and confirmed and the appeal of the Revenue may be heard.

6.

We have heard the rival submissions and carefully perused the materials on record. The Ld.AR has produced before us fresh materials for the first time in support of his case. Though we do not appreciate the conduct of the assessee, in the interest of justice, we are of the considered view that one more opportunity should be provided to the assessee. Accordingly we hereby admit the fresh evidence produced before us by the Ld.AR and remit the matter back to the file of Ld.AO for de-nova consideration. We also hereby direct the Ld.AO to admit any fresh evidence produce by the assessee and thereafter decide the matter in accordance with merit and law. We also caution the Ld.AR as well as the assessee to promptly co-operate with the Revenue in their proceedings in order to expedite their orders failing which the Revenue Authorities shall be at liberty to pass appropriate order in accordance with merit and law based on the materials on record. Since we have remitted back the appeals of the assessee to the file of Ld.AO, the appeal of the Revenue is also remitted back to the file of Ld.AO for de-nova consideration.

Order pronounced on the 26th April, 2018 at Chennai.

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