Income Tax Appellate Tribunal - Cuttack
Archit Agarwal, Maharashtra vs Acit, Circle-2(1), Bhubaneswar on 28 December, 2017
आयकर अपीऱीय अधिकरण, कटक न्यायपीठ,कटक IN THE INCOME TAX APPELLATE TRIBUNAL CUTTACK BENCH CUTTACK BEFORE SHRI N.S.SAINI, AM & SHRI PAVAN KUMAR GADALE, JM IT(SS)A No.01&02/CTK/2016 ( नििाारण वषा / Assessment Years :2006-2007 & 2007-08) Shri Archit Agarwal, Vs. ACIT, Circle-2(1), A-301, Om Ashish CHS Ltd, Bhubaneswar Liberty Garden Cross Road No.4, Malad (West), Mumbai-751007 स्थायी लेखा सं ./ जीआइआर सं ./ PAN/GIR No. : AHW PA 5329 G (अपीऱाथी /Appellant) .. (प्रत्यथी / Respondent) निर्ाा ररती की ओर से /Assessee by : None(Written Submission) राजस्व की ओर से /Revenue by : Shri Piyush Kolhe, CITDR सुनवाई की तारीख / Date of Hearing : 26/12/2017 घोषणा की तारीख/Date of Pronouncement 28/12/2017 आदे श / O R D E R Per Bench:
These appeals have been filed by the assessee against the order of CIT(A)-3, Bhubaneswar, both dated 27.01.2016 for the assessment years 2006-07 & 2007-08.
IT(SS)A No.01/CTK/2016 (AY: 2006-2007)
2. In this appeal the grievance of the assessee is that the CIT(A) has erred in partly confirming the addition of the AO with respect to investment in PPF and LIC.
3. Brief facts of the case are that the assessee has earned income as employee of M/s ARSS Infrastructure Project Ltd., where search & seizure was conducted on 06.10.2010 and also consequential search & seizure operations in the premises of the assessee. In response to notice u/s.153A, the assessee filed return of income on 14.01.2013 declaring 2 IT(SS)A No.01&02/CTK/2016 total income of Rs.63,060/-. The AO completed the assessment making addition of opening balance of capital as unexplained cash credit Rs.4,82,315/- and assessed the total income of the assessee at Rs.5,45,380/- vide order u/s.153A/143(3) of the Act, dated 31.3.2013.
4. Against the order of AO, the assessee preferred an appeal before the CIT(A). The CIT(A) after considering the submissions of assessee and findings of AO has deleted the addition of opening balance of capital account but due to non-submission of sources for investment in PPF and LIC and has restricted the addition to Rs.94,890/- and partly allowed the appeal of the assessee.
5. Against the order of CIT(A), the assessee is in further appeal before with the Tribunal.
6. None appeared on behalf of the assessee, however, the assessee has filed written submission.
7. Contra, ld. DR relied on the orders of authorities below.
8. We have heard the ld. DR and considered the written submissions filed by the assessee and perused the material on record. Ld. DR's contention that the CIT(A) has granted relief deleting the addition of the opening balance in the capital account but sustained the addition to the extent of Rs.94,890/- as the assessee could not explain in the appellate proceeding the sources of investment in PPF Rs.50000/- and LIC of Rs.46,890/-, whereas the assessee has filed copy of confirmation of accounts/advances and also salary certificate to support the sources. We are of the opinion that the documents explaining sources for investment in 3 IT(SS)A No.01&02/CTK/2016 PPF & LIC were not examined and verified by the AO. Accordingly, we remit this disputed issue to the file of AO to verify the claim and provide adequate opportunity of hearing to the assessee before passing the order. The appeal of the assessee is allowed for statistical purposes. IT(SS)A No.02/CTK/2016 (AY: 2007-2008)
9. In this appeal the grievance of the assessee that the CIT(A) is not justified in confirming the addition on account of profit earned from share trading and denial of claim under Chapter VI-A of the Act.
10. Brief facts of the case are that the assessee has disclosed salary income whereas search & seizure operation was conducted on 06.10.2010 at M/s ARSS Infrastructure Project Ltd. and consequential search & seizure operation was conducted in the premises of the assessee. In response to notice u/s.153A, the assessee filed return of income on 14.01.2013 declaring total income of Rs.56,940/-. The AO completed the assessment making addition of Rs.72,462/- as profit earned from share trading and denied claim of Rs.41,624/- under Chapter VI-A for want of evidence and assessed income of Rs.1,71,026/- u/s.153A/143(3) of the Act, dated 31.3.2013.
11. Against the order of AO, the assessee preferred appeal before the CIT(A). The CIT(A) confirmed the addition of Rs.72,462/- as the assessee neither filed any plausible reply before the AO nor before him and confirmed the addition of Rs.41,624/- under Chapter VI-A as the same was not claimed in return of income.
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IT(SS)A No.01&02/CTK/2016
12. None appeared on behalf of the assessee, however, the assessee has filed written submission.
13. Contra, ld. DR relied on the orders of authorities below.
14. We have heard the ld. DR and the written submissions filed by the assessee and material on record. On the first issue of disallowance made by the AO in respect of income from share profit. The assessee has not filed the details in the appellate proceedings or before the Tribunal. Hence, we are of the opinion that the CIT(A) has dealt on the submissions of the assessee and findings of AO and took a reasoned decision. Hence, we are not inclined to interfere with the order of CIT(A) on this ground and confirm the same and this ground of appeal of assessee is dismissed.
15. On the second disputed issue of claim of deduction u/s.80C under Chapter VI-A of the Act the assessee has made the payment of LIC of Rs.41,624/- and supported with the copy of income tax return acknowledgement and the computation sheet disclosing the claim made a claim of deduction but the CIT(A) observed that the assessee has not claimed the deduction under Chapter VI-A of the Act in the income tax return. Prima facie, we are of the opinion these facts were neither considered by the AO nor by the CIT(A). Therefore, in the interest of substantial justice and the fact that the assessee has made payment/LIC premium which is not in dispute. Accordingly, we remit the issue to the file of AO to verify and allow the claim of assessee after affording adequate opportunity of hearing to the assessee. This ground of appeal of assessee is allowed for statistical purposes.
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IT(SS)A No.01&02/CTK/2016
16. In the result, appeal of the assessee i.e. IT(SS)A No.01/CTK/2016 is allowed for statistical purposes and IT(SS)A No.02/CTK/2016 is allowed partly for statistical purposes.
Order pronounced in the open court on this 28/12/2017.
Sd/- Sd/-
(N. S. SAINI) (PAVAN KUMAR GADALE)
ऱेखा सदस्य / ACCOUNTANT MEMBER न्यानयक सदस्य / JUDICIAL MEMBER
कटक Cuttack; ददनाांक Dated 28/12/2017
प्र.कु.मि/PKM, Senior Private Secretary
आदे श की प्रनिलऱपप अग्रेपषि/Copy of the Order forwarded to :
1. अपीलाथी / The Appellant-
2. प्रत्यथी / The Respondent-
3. आयकर आयु क्त(अपील) / The CIT(A),
4. आयकर आयुक्त / CIT
5. निभागीय प्रनतनिनर्, आयकर अपीलीय अनर्करण, कटक / DR, ITAT, Cuttack
6. गार्ड फाईऱ / Guard file.
सत्यापपत प्रतत //True Copy// आदे शािस ु ार/ BY ORDER, (Senior Private Secretary) आयकर अपीऱीय अधिकरण, कटक / ITAT, Cuttack