SRI LAKSHMI JEWELLERS P LTD, COIMBATORE V. ITO CORPORATE WARD-3, COIMBATORE

CO 101/CHNY/2019

• Counselvise Citation: [2021] 107 COUNSELVISE.COM (IT) 4270 (ITAT-CHENNAI)
• Duration Of Justice: 1 year(s) 10 month(s) 11 day(s)
• Appeal Type: Cross Objection
• Pronouncement Date: 29-09-2021
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 04-08-2021
• Assessment Year: 2011-2012
• Appeal Filed On: 18-11-2019
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Corroborative evidences; Onus to prove; Set aside
• Section: 148

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH: CHENNAI , , % BEFORE SHRI V. DURGA RAO, JUDICIAL MEMBER AND SHRI G. MANJUNATHA, ACCOUNTANT MEMBER ./ ITA NO.2687/CHNY/2019 & C.O NO.101/CHNY/2019 /ASSESSMENT YEAR: 2011-12 THE INCOME TAX OFFICER , CORPORATE WARD-3, COIMBATORE. VS. M/S. SRI LAKSHMI KRISHNA JEWELLERS PVT. LTD., 405, O SATHYA COMPLEX, BIG BAZAR STREET, COIMBATORE 641 001. [PAN: AAHCS 2338B] ( /APPELLANT) ( '() /RESPONDENT/ CROSS OBJECTOR) ) / APPELLANT BY : MR. G. JOHNSON, ADDL. CIT, ERODE '() /RESPONDENT/ CROSS OBJECTOR BY : MR. S. SRIDHAR, ADVOCATE /DATE OF HEARING : 04.08.2021 / DATE OF PRONOUNCEMENT : 29.09.2021 / O R D E R PER V. DURGA RAO, JUDICIAL MEMBER : THIS APPEAL FILED BY THE REVENUE AND CROSS OBJECTIO N FILED BY THE ASSESSEE ARE DIRECTED AGAINST THE ORDER OF THE LEAR NED COMMISSIONER OF INCOME TAX (APPEALS)-1, CHENNAI IN I.T.A NO.80/2 018-19 DATED 15.07.2019 RELEVANT TO THE ASSESSMENT YEAR 2011-12. I.T.A NO.2687/CHNY/2019 & C.O NO.101/CHNY/2019 :- 2 -: 2. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESS EE-COMPANY ENGAGED IN THE BUSINESS OF MANUFACTURE AND SALE OF GOLD ORNAMENTS AND MAKING JEWELLERY. THE ASSESSEE-COMPANY IN ITS ORIGINAL RETURN OF INCOME FILED ON 28.02.2012 DECLARED TOTAL INCOME OF RS. 4,11,010/-. IN THE ASSESSMENT ORDER, THE A.O HAS NOTED THAT THE AS SESSEE HAS MADE A CASH DEPOSITS TO THE TUNE OF RS. 2,04,45,000/- AN D CONTRACT RECEIPT OF RS. 11,07,431/-. THE CASE OF THE ASSESSEE WAS REOPE NED BY ISSUING OF NOTICE U/S. 148 OF THE INCOME TAX ACT, 1961 (HEREIN AFTER AS THE ACT). ON RECEIPT OF THE SAME, THE ASSESSEE FILED THE RETU RN OF INCOME ON 01.12.2018 ADMITTING TOTAL INCOME OF RS. 4,11,011/- . 3. DURING THE COURSE OF ASSESSMENT PROCEEDINGS, THE A.O HAS ASKED THE ASSESSEE TO PRODUCE BOOKS OF ACCOUNTS IN SUPPOR T OF CASH DEPOSITS OR STATEMENT EXPLAINING THE SOURCE OF CASH DEPOSITS . IT WAS SUBMITTED BY THE ASSESSEE IS THAT THE ASSESSEE-COMPANY THAT A LL THE BOOKS OF ACCOUNTS AND OTHER DOCUMENTS WERE KEPT IN THE RESID ENTIAL PREMISES OF THE DIRECTORS, A PORTION OF WHICH WAS OCCUPIED BY T HE ASSESSEE- COMPANY AS IT IS REGISTERED OFFICE AND THE RESIDENT IAL PROPERTY IS UNDER LOCK AND KEY OF THE BANKERS UNDER SARFESI ACT AND T HE COURT PROCEEDINGS ARE STILL GOING ON AND SUBMITTED THAT I T IS NOT POSSIBLE TO THE ASSESSEE TO PRODUCE DETAILS OF THE DEBTORS, LEDGER ACCOUNTS, BILLS AND VOUCHERS AND SUPPORTING EVIDENCE LIKE CASH DEPOSITS AND SALES I.T.A NO.2687/CHNY/2019 & C.O NO.101/CHNY/2019 :- 3 -: VOUCHERS. THE A.O AFTER CONSIDERING THE EXPLANATION FILED BY THE ASSESSEE, HE ADDED ENTIRE DEPOSITS OF RS. 2,05,97,8 00/- U/S. 69 OF THE ACT AND ASSESSMENT WAS COMPLETED ON THE GROUND THAT THE ASSESSEE HAS FAILED TO DISCHARGE THE BURDEN OF PROOF THAT LI ES ON THE ASSESSEE- COMPANY. 4. AGGRIEVED, THE ASSESSEE CARRIED THE MATTER BEFOR E THE CIT(A), THE LD. CIT(A) HAS OBSERVED THAT THE BUSINESS PREMISES WERE UNDER THE LOCK AND KEY OF THE BANKERS ATTACHMENT UNDER THE SA RFESI ACT THEREFORE, HE ESTIMATED THE PROFIT AND DELETED THE ADDITION MADE BY THE A.O. 5. WE HAVE HEARD BOTH THE SIDES, PERUSED THE MATER IALS AVAILABLE ON RECORD AND GONE THROUGH THE ORDERS OF THE AUTHOR ITIES BELOW. BEFORE US, BOTH THE PARTIES HAVE AGREED THAT THE ISSUE MAY BE REMITTED BACK TO THE A.O AND ADJUDICATE THE APPEAL AFRESH IN ACCORDA NCE WITH LAW. IN VIEW OF THE ABOVE, WE SET ASIDE THE ORDER PASSED TH E LD. CIT(A) AND WE REMIT THE ISSUE BACK TO THE FILE OF THE A.O AND DIRECT THE A.O TO EXAMINE BOOKS OF ACCOUNTS BY FOLLOWING THE NECESSAR Y PROCEDURE AND DECIDE THE ISSUE DENOVO IN ACCORDANCE WITH LAW. 6. SO FAR AS THE CROSS OBJECTION FILED BY THE ASSE SSEE IS CONCERNED, THE C.O WAS FILED IN SUPPORT OF THE APPELLATE ORDER PASSED BY THE LD. I.T.A NO.2687/CHNY/2019 & C.O NO.101/CHNY/2019 :- 4 -: CIT(A). SINCE WE HAVE REMITTED THE MATTER BACK TO T HE FILE OF THE LD. CIT(A) FOR FRESH ADJUDICATION, THE C.O FILED BY THE ASSESSEE BECOME INFRUCTUOUS AND LIABLE TO BE DISMISSED. ACCORDINGLY , THE CO FILED BY THE ASSESSEE IS DISMISSED. 7. IN THE RESULT, THE APPEAL FILED BY THE REVENUE I S ALLOWED FOR THE STATISTICAL PURPOSES AND THE C.O FILED BY THE ASSES SEE IS DISMISSED. ORDER PRONOUNCED ON 29 TH SEPTEMBER, 2021 IN CHENNAI. SD/- SD/- ( ) (G. MANJUNATHA) /ACCOUNTANT MEMBER ( ) (V. DURGA RAO) /JUDICIAL MEMBER /CHENNAI, /DATED: 29 TH SEPTEMBER, 2021 . EDN/- /COPY TO: 1. /APPELLANT 2. /RESPONDENT 3. ( )/CIT(A) 4. /CIT 5. /DR 6. /GF