COMMISSIONER OF INCOMETAX V. M/S ANUP SILVER PALACE

TAXC/39/2010

AI Insights

The case involves multiple appeals by the Commissioner of Income Tax, Raipur, against the respondent, Anup Silver Palace, concerning the assessment years 2003-2004. The appeals were related to the additions made by the Assessing Officer under Section 153A of the Income Tax Act, 1961, which were subsequently deleted by the ITAT. The main legal contention was whether the ITAT was justified in law in confirming the deletion of the addition of Rs. 8,83,273. The High Court examined the common order passed by the ITAT for these appeals and found that the ITAT had rightly deleted the additions due to lack of material evidence.

• Counselvise Citation: [2009] 140 COUNSELVISE.COM (IT) 736157 (HC-CHHATTISGARH)
• Appeal Type: Others
• Pronouncement Date: 31-07-2009
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Assessee Lawyers: S RAO
• Keywords: Appeal; Assessment; Income Tax; Purity test; Silver articles
• Section: 153A; 260A

Judgement Text

"l w E E § x - 3 5 ¢ - I N T H E H O N ’ B L E H I G H C O U R T O F J U D I C A T U R E F O R C H H A T T I S G A R H A T B I L S P U R T a x C a s e N o . g a O W f O E i v ‘ a s i n m ’ E § % h A S S E S ‘ S M E N T Y E A R : 2 0 0 3 — 2 0 0 4 ‘ A P P E A L U N D E R S E C T I O N 2 6 0 - A O F T H E ‘ I N C O M E T A X A C T , 1 9 6 1 V _ g m w g g w , é b r ‘ v A P P E L L A N T C O M M I S S I O N E R O F . Q ( ’ ( R e v e n u e / I N C O M E T A X W ” ? ? ? ] ° I f ) g m R A I P U R a ) . W g f l i k p g . . . . . . . . V E R S U S [ R E S P O N D E N T : ( N I / S A N U P S I L V E R / ( A s s e s s e e ) ‘ P A L A C E , A n u p P l a z a , S a d a r B a z a r , R a i p u r ( C . G ) . ( ? M ’ L C c O W W 1 C } & £ ( ‘ 9 n 7 ) 1 0 6 ' O é g i g g a ‘ 3 m m F i 2 0 0 m m ( W u ) w m m m a n a m m m m u w a ‘ f 1 ? f g ‘ z ‘ t W K 1 é } ; s i f m 3 3 m ! 3 H I G H C O U R T O F C H H A R T I ' I S G A R H A T B I L A S P U R % ‘ C o m m : - H o n ’ b l e S h r i D h i r e n d r a M i s h r a & } H o n ’ b l e S h n R . N . C h a n d r a k a r J J T T a x C a s e i P R N o . 1 0 6 7 1 2 0 0 9 1 ‘ A p p e l l a n t ' C o m m i s s i o n e r o f I n c o m e T a x : { R e v e n u e R a i b u r ( C G ) . * , V e r s u R e s p o n d e n t M l s A n u p S i l v e r P a i a c e : A s s e s s e e A n L p P l a z a , S a d a r B a z a r , R a i p u r . k ( C O T a x C a s e ( P R 1 N o . 1 0 7 3 l 2 0 0 9 1 A p p e l l a n t C o m m i s s i o n e r o f l n g o m e T a x , i R e v e n u e R a i p u r ( C G ) R e s p o n d e n t _ A s s e s s e e N o . 1 0 7 4 l 2 0 0 9 A p p e l l a n t x m i s s i o n e r o f I n c o m e T a x , R e v e n u e ' r u r ( C G ) R e s p o n d e n t n u p S i l v e r P a l a c e , A s s e s s e e P l a z a , S a d a r B a a z a r , R a i p u r i ‘ T a x C a s e P R l N o . 1 0 7 5 / 2 0 0 9 A p p e l l a n t : C O m i s s i o n e r o f l n c b m e T a x , R e v e n u e R a i d u m c c a ) _ V e r s u s f m m . . . b A l w j g c x v 2 f ? , / / o. . w 2 0 0 i , , . . — r ” ; ; £ i m r m : ( W m Q ' ¥ z W w w n € @ W ; R e s n o n d e n t M A S A n u p S i i v e r P a i a c e , A s s e s s e e A m u p P i a z a , S a d a r B a z a r , R a i p u r ( C G ) , 5 A p g e a l u n d e r S e c t i o n 2 6 0 A o f i n c o m e T a x A c t , 1 9 6 1 ‘ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ K 3 a K _ i P r e s e n t : S h r i S . R a j e § h w a r R a o , c o u n s e i f o r t h e a p p e l l a n t . u - ‘ O r I O r d e r ( P a s s e d o n \" o f J u l y ‘ 2 0 0 9 ) 2 P e r D h i r e n d r a M i s h r a , J : - _ e T a x C a s e ( P R ) N o s e ‘ 1 0 7 3 / 0 0 9 , 1 0 7 4 / 2 0 0 9 a n d 1 0 7 5 / 2 0 0 9 a r e j b e i n g d i s p o s e d o f b y a c o m m o n r d e r . A l l t h e s e c a s e s a r i s e o u t t h r e e l ‘ d i f f e r e n t a p p e a l s a g a i n s t t h e o r r o f C o m m i s s i o n e r o f I n c o m e T a x ( a p p e a l s ) a n d t h e s a m e h a s b e é n d i s p o s e d o f b y t h e I n c o m e T a x l A p p e l l a t e T r i b u n a l t h e b y i m p u g n e d o r d e r . H o w e v e r , t h e T a x C a s e ( P R ) N o . 1 0 6 7 / 2 0 0 9 h a s b e e n t a k e n a s a l e a d i n g c a s e a n d t h e f a c t s o f t h i s b a s e a r e d e a l t w i t h i n t h i s o r d e r . 3 ] ( 2 ) T h e m a t t e r s a r e l i s t e d o r d e f a u l t . H o w e v e r , t h e d e f a u l t i s c o n d o n e d . ( 3 ) T h e a p p e l l a n t / R e v e n u e h a s p r e f e r r e d t h i s a p p e a l u n d e r S e c t i o n 2 6 0 — A o f t h e i n c o m e T a x A c t , 1 9 6 1 a g a i n s t t h e o r d e r o f t h e I n c o m e T a x l A p p e l l a t e T r i b u n a l o n t h e f o l l o w i n g s u b s t a n t i a l q u e s t i o n s o f l a w : - ‘ \" r 3 l l ‘ 1 . ‘ W h e t h e r o n t h e f a d e a n d i n t h e c i r c u m s t a n c e s o f s t h e c a s e , t h e H o n ‘ b l e I T A T w e r e j u s t i f i e d i n l a w l n ’ E l f E c o n f i r m i n g t h e o r d e j r o f t h e C o m m i s s i o n e r o f ' I n c o m e T a x ( A p p e a l s ) d e l e t i n g t h e a d d i t i o n o f R s . 8 , 8 3 , 2 7 3 / — m a d e b y t h e A s s e s s i n g O f h c e r o n - W - - a e c o u n t ‘ o f ' a d d i t i o n a t p r o f i t ? ” ’ “ ” “ ’ \" T ‘ T ' \" T “ ‘ a a i ‘ l ( w a r / ( 1 - . ' 3 “ ‘ 1 W ‘ W W I ' a D L C s , ( 5 ‘ 7 / / 0 m m m 2 0 0 3 1 1 2 3 : a t - r I ( W m 1 = ¥ ” ? ~ ' W ‘ v m ‘ a f m W / ’ 5 a a i i f a n m 2 . “ W h e t h e r o n t h e f a c t a a n d i n t h e c i r c u m s t a n c e s o f t h e c a s e , t h e H o n ’ b l e ‘ I T A T w e r e j u s t i f i e d i n l a w i n h o i d i n g t h e s i l v e r a r t i c l e s s o l d b y t h e a s s e s s e e d u r i n g t h e p r e v i o u s \" a r a s p u r e , w h e n n o s t o c k w a s a v a i l a b l e f o r p u r l t e s t o n t h e d a t e o f s e a r c h , b u t p u r i t y t e s t l h a d b e n c o n d u c t e d i n t h e c a s e o f i t s s i s t e r c o n c e m a n d s u p l i e r a n d p u r i t y w a s f o u n d t o b e 7 0 % w h i l e r a t e s e r e c h a r g e d f o r 1 0 0 % p u r e s i l v e r . . ' ( 4 ) B r i e f l y s t a t e d . t h e f a c t s o f t c a s e a r e t h a t t h e r e s p o n d e n t i s a , p a r t n e r s h i p f i r m e n g a g e d i n t h e b u s i e s s o f t r a d i n g i n s i l v e r a r t i c l e s . T h e b u s i n e s s w a s c l o s e d o n 3 1 . 0 3 . 2 0 0 4 a n d o n t h a t d a y , t h e r e w a s n o s t o c k o f s i l v e r a r t i c l e s w i t h t h e r e s p o n d s . I n r e s p o n s e t o t h e n o t i c e u n d e r S e c t i o n 1 5 3 A , t h e r e s p o n d e n t t i l e d h i s r e t u r n o f i n c o m e d e c l a r i n g t o t a l i n c o m e o f R s ' l , 5 9 , 3 3 4 l ~ . T h e a s s e s m e n t w a s C o m p l e t e d u n d e r S e c t i o n 1 5 3 A o f t h e A c t c o m p u t i n g t h e t o t a l n c o m e o f R s . ‘ l D , 4 2 , 6 0 7 / — a s a g a i n s t ' R s t 1 , 5 9 , 3 3 4 l ~ d i s c l o s e d b y t h e a p p e l l a n t . O n a p p e a l b y t h e r e s p o n d e n t / a s s e s s e s , t h e C o m m i s s o n e r o f i n c o m e T a x ( A p p e a l s ) h a d a l l o w e d t h e a p p e a l a n d h e l d t h a t t r m p e r u s a l o f t h e a s s e s s m e n t o r d e r a n d t h e a s s e s s m e n t r e p o r t s u b m i e d b y t h e A s s e s s i n g O f f i c e r , i t i s e v i d e n t t h a t t h e r e w a s n o m a t e r i a l n r e c o r d t o s h o w t h a t a n y s e p a r a t e p u r i t y t e s t w a s c a r r i e d o u t a t t h e t i m e i o f s e a r c h . T h e c o n c l u s i o n d r a w n b y t h e A s s e s s i n g O f f i c e r t h a t t h e a p p e l l a n t e a r n e d 3 0 % m o r e p r o f i t o v e r a n d a b o v e t h e a m o u n t d i s c l o s e d i n h i s r e t u r n i s b a s e l e s s a n d u n s u s t a i n a b l e . / T h e r e i s n o s u c h m a t e r i a l / e v i d e n c e i n s u p p o r t o f s u c h a d d i t i o n , T h e o r d e r o f t h e C I T ( A p p e a l s ) h a s b e e n s u b s e d u e n t l y c o n f i r m e d b y t h e l n c o m e T a x A p p e l l a t e T r i b u n a l b y t h e i m p u g n e d o r d e r . ( a t r i a 7 ’ 4 u m r i ‘ % w é @ ’ § 0 . T D W - C g g e ( P g I b é g / ’ “ H . \" n ‘ u v w ‘ m m 2 0 0 3 w w m < W H > $ W M § W W W W . g f s w m , M v { 5 ) A f t e r ' o a r e f u l l y e x a m i n i n g t h e o r d e r o f t h e C I T ( A p p e a i s ) a s a i s o t h e o r d e r o f I n c o m e T a x A p p e l l a t e T ‘ i b u n a l w e f i n d t h a t b o t h t h e F o r u m s b i e l o w h a v e r e c o r d e d a c o n c u r r e n t f m d i n g o f f a c t t h a t t h e r e w a s n o s u c h m a t e r i a l / e v i d e n o e f o r t h e A s s e s s i n g O f f i c e r f o r m a k i n g t h e a d d i t i o n . N o s u b s t a n t i a l q u e s t i o n o f i a w a r i s e s f o r a d j u d i c a t i o n o f t h i s a p p e a l . T h e a p p e a l b e i n g w i t h o u t s u b s t a n c e d e s e r v e s t o b e a n d i s a c c o r d i n g l y ! d i s m i s s e d . V i z : 3 ? . 3 ‘ 2 ’ I i ( 6 ) A c o p y o f t h i s o r d e r b e p l c e d i n t h e t i l e s o f T a x C a s e $ 5 ? ) N o s , 1 0 7 3 I 2 0 0 9 , 1 0 7 4 / 2 0 0 9 a n d 1 0 7 0 0 9 . ‘ g r _ i l k i - S d / — R . N . C h a n d r a k a r ' S d / - D h u m u h a b h d u a i J u d g e P r i y a "