Appeal details
Counselvise Citation
[2016] 112 COUNSELVISE.COM (IT) 4133 (ITAT-INDORE)
Assessee PAN
Bench
Appeal Number
Duration Of Justice
1 month(s) 25 day(s)
Appellant
Respondent
Appeal Type
Cross Objection
Pronouncement Date
12-07-2016
Appeal Filed By
Assessee
Order Result
Dismissed
Bench Allotted
DB
Assessment Year
2009-2010
Appeal Filed On
18-05-2016
Judgement Text
IN THE INCOME TAX APPELLATE TRIBUNAL INDORE BENCH, INDORE BEFORE SHRI D.T.GARASIA, HON'BLE JUDICIAL MEMBER AN D SHRI N.S. SAINI, HONBLE ACCOUNTANT MEMBER I.T.(SS)A.NOS. 16 & 17/IND/2016 (ASST. YEAR : 2008-09 & 2009-10) ACIT, CENTRAL 2, INDORE. VS. SHRI KAMLESH KUMAR HOTWANI, 10,TEACHERS COLONY, PIPLIYA MANDI, MANDSAUR PAN NO. ABKPH1354H (APPELLANT) (RESPONDENT) C.O.NOS. 8 & 9/IND/2016 (ARISING OUT OF I.T.(SS)A.NOS. 16 & 17/IND/2016) (ASST. YEAR : 2008-09 & 2009-10) SHRI KAMLESH KUMAR HOTWANI, 10,TEACHERS COLONY, PIPLIYA MANDI, MANDSAUR VS. ACIT, CENTRAL 2, INDORE. PAN NO. ABKPH1354H (CROSS OBJECTOR) (RESPONDENT) DEPARTMENT BY : SHRI RAJEEV VARSHNEY, CIT DR ASSESSEE BY : SHRI GIRISH AGRAWAL, CA DATE OF HEARING : 12/07/2016. DATE OF PRONOUNCEMENT : 12/07/2016. 2 ACIT V.KAMLESH KUMAR HOTWANII O R D E R PER N.S.SAINI, ACCOUNTANT MEMBER THESE APPEALS FILED BY THE REVENUE AND CROSS OBJE CTIONS FILED BY THE ASSESSEE ARE DIRECTED AGAINST THE ORDERS OF CO MMISSIONER OF INCOME TAX (APPEALS)-III 29.11.2015. 2. THE COMMON GROUND OF APPEAL INVOLVED IN THESE AP PEALS IS THAT THE LD. CIT(A) ERRED IN DELETING THE ADDITION OF RS . 4,00,69,917/- IN ASSESSMENT YEAR 2008-09 AND RS. 4,61,63,126/- IN AS SESSMENT YEAR 2009-10 IN THE CASE OF SHRI KAMLESH KUMAR HOTWANI. 3. DURING THE COURSE OF ASSESSMENT PROCEEDINGS THE ASSESSEE WAS ASKED TO EXPLAIN THE ENTRIES FOUND IN REGISTER BS16 AND PRODUCE THE RELEVANT BOOKS OF ACCOUNTS REFLECTING THESE RECEIPT S. THE ASSESSEE SUBMITTED THAT THE SAID REGISTER BS16 ALONGWITH THE OTHER PAPERS INVENTORIES VIDE ANNEXURE BS-01, BS-07, BS-08, BS-0 9, BS-10, BS-11, BS-12, BS-13, LPS 1 AND LPS2 BELONGED TO M/S. AMBIK A SOLVEX LIMITED. THE CONCERNED PERSON OF M/S. AMBIKA SOLVEX LIMITED HAD COME FOR GETTING THE MANDI AUDIT DONE AND AFTER THE AUDIT HA D LEFT THE PAPERS AT THE RESIDENTIAL PREMISES OF THE ASSESSEE. THE AO DI D NOT ACCEPT THE ASSESSEES EXPLANATION AND HELD THAT BS16 REFLECTED THE UNACCOUNTED RECEIPTS FROM SALE OF SOYABEAN AND TREATED THE TOTA L OF THE TRANSACTIONS IN BS16 AMOUNTING TO RS. 4,00,69,917/- AS UNEXPLAIN ED RECEIPTS IN THE HANDS OF THE ASSESSEE IN ASSESSMENT YEAR 2008-09. 3 ACIT V.KAMLESH KUMAR HOTWANII 4. IN ASSESSMENT YEAR 2009-10, DURING THE COURSE OF APPELLATE PROCEEDINGS THE ASSESSEE PRODUCED THE BOOKS OF ACCO UNTS FOR VERIFICATION. REGISTER BS15 IS THE LORRY DISPATCH CONTROL REGISTER AND HAS BEEN MAINTAINED BY THE ASSESSEE FOR CONTROL OF LORRY-WISE DISPATCHES OF SOYABEAN TO M/S. AMBIKA SOLVEX LIMITE D. IT IS SEEN THAT THE ENTRIES WRITTEN IN THE SEIZED REGISTER BS15 ARE RECORDED IN THE MANUAL BOOKS OF ACCOUNTS CALLED NAKAL REGISTER. T HE DISPATCH WRITTEN IN THE SEIZED REGISTER IS ENTERED IN THE SALE BILLS ISSUED FOR SUCH DISPATCHES TO M/S. AMBIKA SOLVEX LIMITED. FROM NAK AL THE ENTRIES ARE POSTED IN THE KHATA OF M/S. AMBIKA SOLVEX LIMITED AT LEDGER FOLIO NO.109-110 AND IN THE LEDGER ACCOUNTS OF SALES. IT IS ALSO NOTICED THAT THE TOTAL SALE OF SOYABEAN DURING THE PERIOD UNDER CONSIDERATION TO M/S. AMBIKA SOLVEX LIMITED IS RS. 15,93,75,829 WHICH IS REFLECTED IN THE TAX AUDIT REPORT. THE SALES IN RELATION TO THE LORRY DI SPATCH DETAILS RECORDED IN BS15 ARE AMOUNTING TO RS. 4,61,63,126/- ONLY. TH E AO DID NOT ACCEPT THE CONTENTION OF THE ASSESSEE AND TREATED T HE AMOUNT OF RS. 4,61,63,126/- AS UNEXPLAINED RECEIPTS IN THE HANDS OF THE ASSESSEE AND ADDED TO THE TOTAL INCOME OF THE ASSESSEE FOR ASSES SMENT YEAR 2008- 09. 5. ON APPEAL, THE LD. CIT(A) DELETED THE ADDITIONS BY OBSERVING AS UNDER IN HIS SEPARATE ORDERS PASSED FOR ASSESSMENT YEARS 2008-09 AND 2009-10 AS UNDER :- 4 ACIT V.KAMLESH KUMAR HOTWANII A.Y. 2008-09: 4.1 DURING THE ASSESSMENT PROCEEDINGS THE ASSESSE E WAS ASKED TO EXPLAIN THE ENTRIES FOUND IN REGISTER BS16 AND P RODUCE THE RELEVANT BOOKS OF ACCOUNTS REFLECTING THESE RECEIPT S. THE ASSESSEE SUBMITTED THAT THE SAID REGISTER BS16 ALONGWITH THE OTHER PAPERS INVENTORIES VIDE ANNEXURE BS-01, BS-07, BS-08, BS-09 , BS-10, BS-11, BS-12, BS-13, LPS 1 AND LPS2 BELONGED TO M/S . AMBIKA SOLVEX LIMITED. THE CONCERNED PERSON OF M/S. AMBIKA SOLVEX LIMITED HAD COME FOR GETTING THE MANDI AUDIT DONE AN D AFTER THE AUDIT HAD LEFT THE PAPERS AT THE RESIDENTIAL PREMIS ES OF THE ASSESSEE. THE AO DID NOT ACCEPT THE ASSESSEES EXPLA NATION AND HELD THAT BS16 REFLECTED THE UNACCOUNTED RECEIPTS F ROM SALE OF SOYABEAN AND TREATED THE TOTAL OF THE TRANSACTIONS IN BS16 AMOUNTING TO RS. 4,00,69,917/- AS UNEXPLAINED RECEI PTS IN THE HANDS OF THE ASSESSEE. I HAVE GONE THROUGH THE ASSE SSEES CONTENTIONS AND THE ASSESSMENT ORDER. DURING THE AP PELLATE PROCEEDINGS THE COPY OF GENERAL LEDGERS WERE MADE A VAILABLE BY M/S. AMBIKA SOLVEX LIMITED WHICH WERE APPROPRIATELY MARKED TO DEMONSTRATE THEIR LINKING WITH THE SEIZED RECORD. T HE ENTRIES IN THE REGISTER BS16 WERE RANDOMLY CHECKED AND THE APP ELLANT WAS ABLE TO CO-RELATE THEM WITH ENTRIES IN THE BOOKS OF ACCOUNTS OF M/S. AMBIKA SOLVEX LIMITED. 5 ACIT V.KAMLESH KUMAR HOTWANII 4.2 THE INSPECTOR MRS. PUJA JAIN POSTED IN THE O/O CIT(A)-III, INDORE WAS ALSO DIRECTED TO VERIFY AND CHECK THE EN TRIES IN THE REGISTER BS16. THE INSPECTOR HAS FURNISHED THE REPO RT ON 23.11.2015 WHICH IS REPRODUCED HEREUNDER :- IN CONTEXT OF BS-16, IT IS FOUND AND THAT BS-16 IS CONNECTED WITH VARIOUS OTHER SEIZED MATERIALS MARKED AS BS-O 1, BS-07, BS-08, BS-09, BS-10, BS- 11 , BS-12, BS-13, BS-14, LPS-01, LPS-03. ON VERIFICATION OF BS-16 (05 PAGES), IT IS FOUND THAT ON PAGE NO. 01 AT THE TOP IT IS WRITTEN IN HINDI 'M/ S. AMBIKA SOLVEX LTD, JAORA, 2007/08, MANDI KHARIDI (PIPALIYA MANDI) AND BELOW THIS SOME ENTRIES WERE WRITTEN. IN COURSE OF VERIFICATION, ON PAGE NO. 1 ON E OF AMOUNT MENTIONED IN HINDI NUMERICAL WAS '451629 DATED 11/12/07. ON ASKING ABOUT THE SAID ENTRY FROM THE AR OF THE ASSESSEE AND ACCOUNTANT THEY EXPLAINE D THAT THIS ENTRIES ARE PURCHASE MADE BY M/ S. AMBIKA SOLVEX LTD IN PIPALIYA MANDI. FURTHER, THEY EXPLAINE D THAT THIS IS A SUMMARY OF PURCHASE MADE ON 11/ 12/07 AND THE SAME ENTRY IS VERIFIED FROM BS-07 (CONTAINI NG 73 PAGES) PAGE NO. 1. ON THE SAID PAGE OF BS-07 AMOUNT OF RS.4,32, 739/- WAS WRITTEN AS 'SOYABEAN KHARIDI' AND VARIOUS EXPENSES WERE WRITTEN ON THE 6 ACIT V.KAMLESH KUMAR HOTWANII SAME PAGE AND TOTAL OF THIS PAGE IS RS.4,51,629/- AS REFLECTING ON THE PAGE NO. 1 OF BS-16. THEREAFTER, T HIS SUM OF RS.4,51,629/- WAS DULY VERIFIED FROM THE GENERAL LEDGER A/C NAME : MANDI PAYMENT ADVANCE(PIPLIA) OF M/ S AMBIKA SOLVEX LIMITED, UNIT- LL FOR THE PERIOD 01/ 04/2007 TO 31/ 03/2008 ENTERED ON THE DATE 23/10/2007 AND 11/ 12/2007 WITH BALANCE AMOUNT AS RS.4,51,629/-. SIMILARLY ON THE SAME BASIS I RANDOMLY VERIFIED SOME OTHER ENTRIES WHICH WERE D ULY ENTERED IN THE SAID LEDGER OF M/ S. AMBIKA SOLVEX SOLVEX LIMITED, UNIT-LL. ON THE PAGE NO.01 OF BS-07 AMOUNT OF RS. 7040/-WAS WRITTEN AS MANDI NIRASHRIT TAX, ON VERIFICATION OF GENERAL LEDGER A/C NAME : MANDI TAX (PIPLIA MANDI) OF M/S. AMBIKA SOLVEX LIMITED, UNIT II, AMOUNT OF RS. 7040/- WAS DULY POSTED ON 11.12.07 WIT H NARRATION 'BEING AMOUNT OF MANDI TAX FOR PURCHASE OF S/ SEED, QTY/ 242.94/ QTL @ RS.1795.05/ QTL. S IMILARLY ON THE SAME BASIS, I RANDOMLY VERIFIED SOME OTHER ENTRIES WHICH WERE DULY ENTERED IN THE SAID LEDGER O F M/ M/S. AMBIKA SOLVEX LIMITED, UNIT-LL. THUS, AFTER RANDOM VERIFICATION OF ENTRIES OF SEIZED DOCUMENT BS-16 FROM THE LEDGERS PROVIDED BY M/ S. AMBIKA SOLVEX LIMITED TO THE ASSESSEE AND OTHER SEIZED 7 ACIT V.KAMLESH KUMAR HOTWANII DOCUMENTS AS MENTIONED ABOVE, IT APPEARS THAT THE SEIZED DOCUMENT BS-16 IS RELATED WITH M/ S. AMBIKA SOLVEX LIMITED WHICH IS ALSO APPEARING FROM THE FACT THAT AT PAGE NO. 01 OF THE DOCUMENT BS-16 IT IS MENTIONED THAT 'M/ S AMBIKA SOLVEX LTD, JAORA, 2007/08, MANDI KHARIDI (PIPLIYA MANDI). THUS I HAVE RANDOMLY VERIFIED SOME ENTRIES OF BS- 16 FROM THE LEDGER OF M/S. AMBIKA SOLVEX LIMITED, WHICH WERE DULY PROVIDED TO THE ASSESSEE BY M/ S AMBIKA SOLVEX LIMITED AND FOUND THEM IN ORDER. 4.3 IN VIEW OF THE ABOVE, IT IS CLEAR THAT THE ENT RIES IN BS 16 DO NOT PERTAIN TO THE ASSESSEE. THE SAID REGISTER BELO NGS TO M/S. AMBIKA SOLVEX LIMITED AND THE ENTRIES THEREIN HAVE B EEN RECONCILED WITH THE BOOKS OF ACCOUNTS OF M/S. AMBIKA SOLVEX LIMITED AND THE OTHER SEIZED DOCUMENTS MARKED AS ANN EXURE BS- 01, BS-07, BS-08, BS-09, BS-10, BS-11, BS-12, BS-13 , BS-14, LPS-1 AND LPS-3. THEREFORE, THE ADDITION OF RS. 4,0 0,69,917 /- IS DELETED AND THIS GROUND OF APPEAL IS ALLOWED. A.Y. 2009-10: 4.2 DURING THE APPELLATE PROCEEDINGS THE ASSESSEE PRODUCED THE BOOKS OF ACCOUNTS FOR VERIFICATION. REGISTER BS15 I S THE LORRY DISPATCH CONTROL REGISTER AND HAS BEEN MAINTAINED BY THE 8 ACIT V.KAMLESH KUMAR HOTWANII ASSESSEE FOR CONTROL OF LORRY-WISE DISPATCHES OF SO YABEAN TO M/S. AMBIKA SOLVEX LIMITED. IT IS SEEN THAT THE ENTRIES W RITTEN IN THE SEIZED REGISTER BS15 ARE RECORDED IN THE MANUAL BOO KS OF ACCOUNTS CALLED NAKAL REGISTER. THE DISPATCH WRIT TEN IN THE SEIZED REGISTER IS ENTERED IN THE SALE BILLS ISSUED FOR SUCH DISPATCHES TO M/S. AMBIKA SOLVEX LIMITED. FROM NAKA L THE ENTRIES ARE POSTED IN THE KHATA OF M/S. AMBIKA SOL VEX LIMITED AT LEDGER FOLIO NO.109-110 AND IN THE LEDGER ACCOUNTS O F SALES. IT IS ALSO NOTICED THAT THE TOTAL SALE OF SOYABEAN DURING THE PERIOD UNDER CONSIDERATION TO M/S. AMBIKA SOLVEX LIMITED I S RS. 15,93,75,829 WHICH IS REFLECTED IN THE TAX AUDIT REP ORT. THE SALES IN RELATION TO THE LORRY DISPATCH DETAILS RECORDED IN BS15 ARE AMOUNTING TO RS. 4,61,63,126/- ONLY. A RECONCILIATIO N STATEMENT HAS BEEN PLACED ON RECORD GIVING DETAILS OF EACH DI SPATCH ENTRY LINKING WITH SALES BILL AND NAKAL PANA. THE ENTRIES IN THE REGISTER BS15 WERE RANDOMLY CHECKED WHICH THE APPELLANTS CO UNSEL IN THE PRESENCE OF MR. SANTOSH SAKLECHA, ACCOUNTANT OF THE ASSESSEE WAS ABLE TO RECONCILE WITH THE MANUAL BOOKS OF ACCO UNTS PRODUCED FOR VERIFICATION. 4.3 THE INSPECTOR MRS. PUJA JAIN POSTED IN THE O/O CIT(A)- III, INDORE WAS ALSO DIRECTED TO VERIFY AND CHECK T HE ENTRIES IN THE REGISTER BS15.. THE INSPECTOR HAS FURNISHED THE REP ORT ON 23.11.2015 WHICH IS REPRODUCED HEREUNDER :- AS PER DIRECTION, AR OF THE ASSESSEE SHRI GIRISH AGRAWAL, CA ATTENDED WITH ACCOUNTANT OF ASSESSEE SHRI SANTOSH SAKLECHA AND PRODUCED BOOKS OF ACCOUNTS, JOURNAL AND LEDGER MANUALLY MAINTAINED BY THE ASSESSEE AND ALSO PRODUCED SALES BILL. I HAVE RANDOMLY TEST CHECKED SOME ENTRIES OF BS-15 9 ACIT V.KAMLESH KUMAR HOTWANII (CONTAINING 97 PAGES). IN THE DOCUMENT MARKED AS JBS-15, ON PAGE NO.1 ENTRY OF MP-14HA0122, 120/90 KG. DATED 20/08/08 WAS WRITTEN. ON.. ENTERED IN SALES BILL NO.225 AND THIS SALES BILL WAS IS IN THE NAME OF M/S. AMBIKA SOLVEX LIMITED. ON FURTHER VERIFICATI ON, IT IS SEEN THAT ON THE SAID SALES BILL, PAGE NUMBER OF NAKAL PANA (JOURNAL) WAS NOTED AS PAGE 62. THE ACCOUNTANT OF ASSESSEE PRODUCED NAKAL PANA AND THE SALE BILL WAS DULY ENTERED IN THAT JOURNAL AT PAGE NO. 62, WHICH IS DULY VERIFIED BY ME. FURTHER, ON THE S AID NAKAL PANA OR JOURNAL (PAGE NO.62) NUMBER OF LEDGER FOLIO WAS WRITTEN AS 109, WHICH IS IN THE NAME OF M /S. AMBIKA SOVLEX LIMITED WHERE THIS ENTRY WAS POSTED. ACCOUNTANT OF ASSESSEE PRODUCED THE SAID LEDGER THAT POSTING WAS DULY VERIFIED BY ME. SIMILARLY I HAVE VERIFIED SOME OTHERS SALES BILLS, RANDOMLY SELECTED , ON THE SAME BASIS AND FOUND TO THEM CORRECTLY POSTED I N PAGES OF NAKAL PANA (JOURNAL) AND LEDGER WHICH IS I N THE NAME OF M/S. AMBIKA SOLVEX LIMITED. AFTER RANDOM VERIFICATION OF SOME ENTRIES OF BS- 15, IT APPEARS THAT THE SEIZED DOCUMENT BS-15 IS A CONTROL DOCUMENT FOR SALE OF SOYABEAN BY ASSESSEE T O M/S. AMBIKA SOLVEX LIMITED AS DURING COURSE OF TEST CHECK OF ENTRIES MENTIONED IN THE PAGES OF SEIZED 10 ACIT V.KAMLESH KUMAR HOTWANII DOCUMENTS BS-15, IT IS FOUND THAT THE SAID ENTRIES WERE CONCERNED WITH M/S. AMBIKA SOLVEX LIMITED. THUS, I HAVE RANDOMLY VERIFIED SOME ENTRIES OF THE SEIZED DOCUMENTS BS-15 FROM THE MANUAL BOOKS OF ACCOUNTS OF THE ASSESSEE AND THE SAME WERE FOUND IN ORDER. 4.4 IN VIEW OF THE ABOVE, IT IS CLEAR THAT THE ENT RIES IN BS15 ARE DULY ACCOUNTED FOR IN THE BOOKS OF ACCOUNTS OF THE ASSESSEE. THEREFORE, THE ADDITION OF RS. 4,61,63,126/- MADE O N ACCOUNT OF ENTRIES IN SEIZED REGISTER BS15 TO THE TOTAL INCOME OF THE ASSESSEE AS INCOME FROM UNDISCLOSED SOURCES IS DELE TED AND THIS GROUND OF APPEAL IS ALLOWED. 5. THE LD. DEPARTMENTAL REPRESENTATIVE RELIED ON T HE ORDERS OF THE AO, WHEREAS THE LD. AUTHORIZED REPRESENTATIVE OF TH E ASSESSEE SUPPORTED THE ORDERS OF THE LD. CIT(A). 6. WE HAVE HEARD THE RIVAL SUBMISSIONS AND HAVE GON E THROUGH THE ORDERS OF THE LOWER AUTHORITIES AND PERUSED THE MAT ERIAL AVAILABLE ON RECORD. WE FIND THAT THE LD. DEPARTMENTAL REPRESEN TATIVE COULD NOT BRING ANY SPECIFIC ERROR IN THE ORDERS OF THE CIT(A ). HE ALSO COULD NOT BRING ANY MATERIAL ON RECORD TO CONTROVERT THE FIND INGS OF THE CIT(A). THEREFORE, WE FIND NO GOOD AND JUSTIFIABLE REASON T O INTERFERE WITH THE 11 ACIT V.KAMLESH KUMAR HOTWANII ORDERS OF THE CIT(A), WHICH ARE HEREBY CONFIRMED AN D THE GROUNDS OF APPEAL OF THE REVENUE ARE DISMISSED IN BOTH THE APP EALS. 7. THE LD. AUTHORIZED REPRESENTATIVE OF THE ASSESSE E DID NOT PRESS THE CROSS OBJECTIONS. THE SAME ARE DISMISSED AS NOT PRESSED. 8. IN THE RESULT, THE APPEALS OF THE REVENUE AND CR OSS OBJECTIONS FILED BY THE ASSESSEE ARE DISMISSED. ORDER PRONOUNCED IN THE COURT AT THE CLOSE OF THE H EARING ON TUESDAY, THE DAY OF 12 TH JULY, 2016 AT INDORE. SD/- SD/- (D.T.GARASIA) (N.S.SAINI) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED :12 TH JULY, 2016. CPU COPY TO: 1. THE ASSESSEE. 2. THE REVENUE. 3. THE CIT 4. THE CIT(A) 5. THE D.R. 6. GUARD FILE. BY ORDER ASSISTANT REGISTRAR I.T.A.T., INDORE 12 ACIT V.KAMLESH KUMAR HOTWANII
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