D.C.I.T., CIRCLE- 1, DIBRUGARH V. HANS RAJ BAMALWA (HUF), DIBRUGARH

MA 10/GTY/2024

AI Insights

The case involves multiple Miscellaneous Applications (M.A. Nos. 05 to 19/GTY/2024) filed by the Deputy Commissioner of Income Tax, Circle-1, Dibrugarh against various respondents including Bajrang Lal Bamalwa and others, concerning the assessment years 2012-2013, 2013-2014, and 2015-2016. The applications were filed following the Tribunal's earlier decision which had allowed the Cross Objections of the assessees and deleted additions made by the Assessing Officer regarding unexplained share application money. The Revenue sought rectification of this decision, arguing that the Tribunal's findings should not have been recorded as they preclude the Revenue from reopening the assessments based on their interpretation of a Supreme Court decision. The Tribunal dismissed the applications, stating that the issues raised were factual and debatable, thus not suitable for rectification under section 254(2).

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 473127 (ITAT-GUWAHATI)
• Duration Of Justice: 5 month(s) 20 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 29-10-2024
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 19-08-2024
• Assessment Year: 2012-2013
• Appeal Filed On: 09-05-2024
• Other Referred Cases: Pr. CIT, Central -3 -vs.- Abhisar Buildwell (P) Ltd. [2023] 149 taxmann.com 399 (SC), Radhaswami Satsang -vs.- CIT [193 ITR 321 (SC)], Bharat Sanchar Nigam Ltd. -vs.- Union of India [282 ITR 273(SC)]
• Laws Referred To: Income Tax Act
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Unexplained cash credit; Rule of consistency
• Section: 147; 254(2); 153A; 260A

Judgement Text

" M.A. Nos. 05 to 13/GTY/2024 (in ITA Nos. 51 to 59/GAU/2023) & M.A. Nos. 14 to 19/GTY/2024 (in ITA Nos. 61 to 66/GAU/2023) 1 IN THE INCOME TAX APPELLATE TRIBUNAL, KOLKATA-GUWAHATI ‘e-COURT’, KOLKATA [Hybrid Court Hearing] Before Shri Rajesh Kumar, Accountant Member & Shri Manomohan Das, Judicial Member M.A. Nos. 5 & 6/GAU/2024 (in I.T.A. Nos. 51 & 52/GAU/2023 & C.O. Nos. 6 & 7/GAU/2023) Assessment Years: 2012-2013 & 2013-2014 Deputy Commissioner of Income Tax,.........Applicant Circle-1, Dibrugarh Pushkara House, Natun Gaon, NH-37, Mohanaghat, Dibrugarh, Assam-786008 -Vs.- Bajrang Lal Bamalwa,.............................Respondent Ground Floor, Mahalaya Road, C/o. A.K. Varma, Dibrugarh-786001, Assam [PAN: ACHPB8631K] -AND- M.A. Nos. 7 & 8/GAU/2024 (in I.T.A. Nos. 53 & 54/GAU/2023 & C.O. Nos. 8 & 9/GAU/2023) Assessment Years: 2012-2013 & 2015-2016 Deputy Commissioner of Income Tax,......... Applicant Circle-1, Dibrugarh, Pushkara House, Natun Gaon, NH-37, Mohanaghat, Dibrugarh, Assam-786008 -Vs.- Bachh Raj Bamalwa,...............................Respondent Mahalaya Road, M.A. Nos. 05 to 13/GTY/2024 (in ITA Nos. 51 to 59/GAU/2023) & M.A. Nos. 14 to 19/GTY/2024 (in ITA Nos. 61 to 66/GAU/2023) 2 C/o. A.K. Varma, Dibrugarh-786001, Assam [PAN: ACHPB8633M] -AND_ M.A. No. 9 /GAU/2024 (in I.T.A. No. 55/GAU/2023 & C.O. No. 10/GAU/2023) Assessment Year: 2012-2013 Deputy Commissioner of Income Tax,......... Applicant Circle-1, Dibrugarh, Pushkara House, Natun Gaon, NH-37, Mohanaghat, Dibrugarh, Assam-786008 -Vs.- Hans Raj Bamalwa,.............................Respondent Mahalaya Road, C/o. A.K. Varma, Dibrugarh-786001, Assam [PAN: ACHPB8632L] -AND- M.A. No. 10/GAU/2024 (in I.T.A. No. 56/GAU/2023 & C.O. No. 11/GAU/2023) Assessment Year: 2012-2013 Deputy Commissioner of Income Tax,......... Applicant Circle-1, Dibrugarh, Pushkara House, Natun Gaon, NH-37, Mohanaghat, Dibrugarh, Assam-786008 -Vs.- Hans Raj Bamalwa (HUF),.......................Respondent Mahalaya Road, C/o. A.K. Varma, Dibrugarh-786001, Assam [PAN: AADHH6202E] M.A. Nos. 05 to 13/GTY/2024 (in ITA Nos. 51 to 59/GAU/2023) & M.A. Nos. 14 to 19/GTY/2024 (in ITA Nos. 61 to 66/GAU/2023) 3 -AND- M.A. No. 11/GAU/2024 (in I.T.A. No. 57/GAU/2023 & C/O. No. 12/GAU/2023) Assessment Year: 2012-2013 Deputy Commissioner of Income Tax,......... Applicant Circle-1, Dibrugarh, Pushkara House, Natun Gaon, NH-37, Mohanaghat, Dibrugarh, Assam-786008 -Vs.- Usha Bamalwa,......................................Respondent Mahalaya Road, C/o. A.K. Varma, Dibrugarh-786001, Assam [PAN: AEDPB9899R] -AND- M.A. No. 12/GAU/2024 (in I.T.A. No. 58/GAU/2023 & C.O. No. 13/GAU/2023) Assessment Year: 2012-2013 Deputy Commissioner of Income Tax,......... Applicant Circle-1, Dibrugarh, Pushkara House, Natun Gaon, NH-37, Mohanaghat, Dibrugarh, Assam-786008 -Vs.- Meenakshi Bamalwa Soni,.......................Respondent Mahalaya Road, C/o. A.K. Varma, Dibrugarh-786001, Assam [PAN: ANJPB0290K] -AND- M.A. No. 13/GAU/2024 (in I.T.A. No. 59/GAU/2023 & C.O. No. 14/GAU/2023) Assessment Year: 2012-2013 M.A. Nos. 05 to 13/GTY/2024 (in ITA Nos. 51 to 59/GAU/2023) & M.A. Nos. 14 to 19/GTY/2024 (in ITA Nos. 61 to 66/GAU/2023) 4 Deputy Commissioner of Income Tax,......... Applicant Circle-1, Dibrugarh, Pushkara House, Natun Gaon, NH-37, Mohanaghat, Dibrugarh, Assam-786008 -Vs.- Bhagwati Devi Bamalwa,... ...................Respondent Mahalaya Road, C/o. A.K. Varma, Dibrugarh-786001, Assam [PAN: ADBPB8853E] -A N D- M.A. No. 14/GAU/2024 (in I.T.A. No. 61/GAU/2023 & C.O. No. 16/GAU/2023) Assessment Year: 2012-2013 Deputy Commissioner of Income Tax,......... Applicant Circle-1, Dibrugarh, Pushkara House, Natun Gaon, NH-37, Mohanaghat, Dibrugarh, Assam-786008 -Vs.- Vinay Bamalwa,...................................Respondent Mahalaya Road, C/o. A.K. Varma, Dibrugarh-786001, Assam [PAN: AMSPB6776C] -AND- M.A. No. 15/GAU/2024 (in I.T.A. No. 62/GAU/2023 & C.O. No. 17/GAU/2023) Assessment Year: 2012-2013 Deputy Commissioner of Income Tax,......... Applicant Circle-1, Dibrugarh, Pushkara House, Natun Gaon, NH-37, Mohanaghat, M.A. Nos. 05 to 13/GTY/2024 (in ITA Nos. 51 to 59/GAU/2023) & M.A. Nos. 14 to 19/GTY/2024 (in ITA Nos. 61 to 66/GAU/2023) 5 Dibrugarh, Assam-786008 -Vs.- Ravi Bamalwa,....................................Respondent Mahalaya Road, C/o. A.K. Varma, Dibrugarh-786001, Assam [PAN: AIAPB9440R] -AND- M.A. No. 16/GAU/2024 (in I.T.A. No. 63/GAU/2023 & C.O. No. 18/GAU/2023) Assessment Year: 2012-2013 Deputy Commissioner of Income Tax,......... Applicant Circle-1, Dibrugarh, Pushkara House, Natun Gaon, NH-37, Mohanaghat, Dibrugarh, Assam-786008 -Vs.- Madan Lal Bamalwa,...........................Respondent Mahalaya Road, C/o. A.K. Varma, Dibrugarh-786001, Assam [PAN: AEDPB9898Q] -AND- M.A. No. 17/GAU/2024 (in I.T.A. No. 64/GAU/2023 & C.O. No. 19/GAU/2023) Assessment Year: 2013-2014 Deputy Commissioner of Income Tax,...... Applicant Circle-1, Dibrugarh, Pushkara House, Natun Gaon, NH-37, Mohanaghat, Dibrugarh, Assam-786008 M.A. Nos. 05 to 13/GTY/2024 (in ITA Nos. 51 to 59/GAU/2023) & M.A. Nos. 14 to 19/GTY/2024 (in ITA Nos. 61 to 66/GAU/2023) 6 -Vs.- Sheetal Bamalwa,.................................Respondent Mahalaya Road, C/o. A.K. Varma, Dibrugarh-786001, Assam [PAN: AEAPB3000M] -AND- M.A. No. 18/GAU/2024 (in I.T.A. No. 65/GAU/2023 & C.O. No. 20/GAU/2023) Assessment Year: 2013-2014 Deputy Commissioner of Income Tax,......... Applicant Circle-1, Dibrugarh, Pushkara House, Natun Gaon, NH-37, Mohanaghat, Dibrugarh, Assam-786008 -Vs.- Pramod Kumar Bamalwa,.......................Respondent Mahalaya Road, C/o. A.K. Varma, Dibrugarh-786001, Assam [PAN: AGTPB8079R] -AND- M.A. No. 19/GAU/2024 (in I.T.A. No. 66/GAU/2023 & C.O. No. 21/GAU/2023) Assessment Year: 2013-2014 Deputy Commissioner of Income Tax,......... Applicant Circle-1, Dibrugarh, Pushkara House, Natun Gaon, NH-37, Mohanaghat, Dibrugarh, Assam-786008 -Vs.- Vinod Bamalwa,..................................Respondent M.A. Nos. 05 to 13/GTY/2024 (in ITA Nos. 51 to 59/GAU/2023) & M.A. Nos. 14 to 19/GTY/2024 (in ITA Nos. 61 to 66/GAU/2023) 7 Mahalaya Road, C/o. A.K. Varma, Dibrugarh-786001, Assam [PAN: ACHPB8627P] Appearances by: Shri Ashwni Kumar, Sr. D.R., appeared on behalf of the Revenue Shri S.K. Tulsiyan, Advocate and Puja Somani, CA, appeared on behalf of the assessees Date of concluding the hearing : August 19, 2024 Date of pronouncing the order : October 29, 2024 O R D E R Per Rajesh Kumar, Accountant Member:- The Tribunal vide its order dated 1st September, 2023 has decided 16 (sixteen) appeals of the Revenue and equal no. of Cross Objections filed by the assessees. The Department has filed Miscellaneous Applications in 15 (fifteen) appeals. 2. The ld. counsel for the assessees has submitted details in tabular form exhibiting the names of assessees, Assessment Year, Appeal nos. of the Department, C.O. Nos. of the assessees and M.A. Nos filed by the Department. We deem it appropriate to take note of these details in order to appreciate the M.A. filed in each appeal involved in scientific manner, which reads as under:- M.A. Nos. 05 to 13/GTY/2024 (in ITA Nos. 51 to 59/GAU/2023) & M.A. Nos. 14 to 19/GTY/2024 (in ITA Nos. 61 to 66/GAU/2023) 8 S.NO PARTICULARS AY ITA NOS. (Department's Appeal) CO NOS. (Assessees' CO) M.A. filed by the Department 1 BAJRANG LAL BAMALWA 2012-13 ITA 51/GAU/2023 CO 6/GAU/2023 05/GTY/2024 2 BAJRANG LAL BAMALWA 2013-14 ITA 52/GAU/2023 CO 07/GAU/2023 06/GTY/2024 3 BACHH RAJ BAMALWA 2012-13 ITA 53/GAU/2023 CO 08/GAU/2023 07/GTY/2024 4 BACHH RAJ BAMALWA 2015-16 ITA 54/GAU/2023 CO 09/GAU/2023 08/GTY/2024 5 HANS RAJ BAMALWA 2012-13 ITA 55/GAU/2023 CO 10/GAU/2023 09/GTY/2024 6 HANS RAJ BAMALWA (H.U.F) 2012-13 ITA 56/GAU/2023 CO 11/GAU/2023 10/GTY/2024 7 USHA BAMALWA 2012-13 ITA 57/GAU/2023 CO 12/GAU/2023 11/GTY/2024 8 MEENAKSHI BAMALWA SONI 2012-13 ITA 58/GAU/2023 CO 13/GAU/2023 12/GTY/2024 9. BHAGWATI DEVI BAMALWA 2012-13 ITA 59/GAU/2023 CO 14/GAU/2023 13/GTY/2024 10. VINAY BAMALWA 2012-13 ITA 61/GAU/2023 CO 16/GAU/2023 14/GTY/2024 11. RAVI BAMALWA 2012-13 ITA 62/GAU/2023 CO 17/GAU/2023 15/GTY/2024 12. MADAN LAL BAMALWA 2012-13 ITA 63/GAU/2023 CO 18/GAU/2023 16/GTY/2024 13. SHEETAL BAMALWA 2013-14 ITA 64/GAU/2023 CO 19/GAU/2023 17/GTY/2024 14. PRAMOD KUMAR BAMALWA 2013-14 ITA 65/GAU/2023 CO 20/GAU/2023 18/GTY/2024 15. VINOD BAMALWA 2013-14 ITA 66/GAU/2023 CO 21/GAU/2023 19/GTY/2024 3. A perusal of the record would indicate that all the Miscellaneous Applications are almost verbatim same, therefore, for the facility of reference and in order to appreciate the alleged apparent error pointed out by the Revenue, we deem it appropriate to take note M.A. No. 7/GTY/2024 i.e. filed in the case of Bachh Raj Bamalwa. This M.A. reads as under:- M.A. Nos. 05 to 13/GTY/2024 (in ITA Nos. 51 to 59/GAU/2023) & M.A. Nos. 14 to 19/GTY/2024 (in ITA Nos. 61 to 66/GAU/2023) 9 M.A. Nos. 05 to 13/GTY/2024 (in ITA Nos. 51 to 59/GAU/2023) & M.A. Nos. 14 to 19/GTY/2024 (in ITA Nos. 61 to 66/GAU/2023) 10 4. In response to the notice of hearing, both the sides have filed written submissions, which have been taken on record and with the assistance of ld. Representatives, we M.A. Nos. 05 to 13/GTY/2024 (in ITA Nos. 51 to 59/GAU/2023) & M.A. Nos. 14 to 19/GTY/2024 (in ITA Nos. 61 to 66/GAU/2023) 11 have gone through the record carefully. The power of rectification under section 254(2) of the Income Tax Act can be exercised only when the mistake, which is sought to be rectified, is an obvious and patent mistake, which is apparent from the record and not a mistake which requires to be established by arguments and a long-drawn process of reasoning on points on which there may conceivably two opinions. 5. A perusal of the application of the revenue would reveal that it has not shown which grievance against the order of the Tribunal vide which it has upheld that. Such additions cannot be made in an assessment framed under section 153A of the Income Tax Act because during the course of search, no incriminating material was found on the basis of which additions could be made in the hands of the assessees. The Tribunal has concurred with the finding of the ld. CIT(Appeals) on this aspect. However, grievance of the Revenue has been pleaded in paragraph no. 5 of the application reproduced above. According to the Revenue, the Tribunal has allowed the Cross Objections filed by the assessees and deleted the additions made by the ld. Assessing Officer on account of unexplained share application money received by the assessees. M.A. Nos. 05 to 13/GTY/2024 (in ITA Nos. 51 to 59/GAU/2023) & M.A. Nos. 14 to 19/GTY/2024 (in ITA Nos. 61 to 66/GAU/2023) 12 6. It is pertinent to observe that section 253(4) of the Income Tax Act contemplates that the Assessing Officer or the assessee, as the case may be, on receipt of notice that an appeal against the order of the CIT(Appeals), has been preferred under sub-section (1) or sub-section (2) by the other party, may, notwithstanding that he may not have appealed against such order or any part thereof, within thirty days of the receipt of the notice, file a Memorandum of Cross Objections, verified in the prescribed manner, (against any part of such order) and such Memorandum shall be disposed of by the Appellate Tribunal, as if, presented within the time specified in sub-section (3). 7. A perusal of sub-section (4) of section 253 would indicate that as and when Cross Objection is being filed by a respondent in the appeal against any part of such order impugned in the appeal, then, such Cross Objection will be decided as if an appeal is being filed. In the present appeals, additions have been made by the ld. Assessing Officer on merit on account of unexplained credit received in the shape of share application money. Thus, additions were challenged by the assessees before the ld. 1st Appellate Authority and the ld. CIT(Appeals) has not decided these issues on merit, rather, held that such additions could have not been made in the assessment under section 153A. In other words, ld. CIT(Appeals) has M.A. Nos. 05 to 13/GTY/2024 (in ITA Nos. 51 to 59/GAU/2023) & M.A. Nos. 14 to 19/GTY/2024 (in ITA Nos. 61 to 66/GAU/2023) 13 decided the legal issue only. The assessees were aggrieved with this part of ld. CIT(Appeals)’s order, wherein additions made by the ld. Assessing Officer by disbelieving the alleged receipt of share application money and the Tribunal has entertained this issue on merit, as if an appeal is being filed by the assessee within the meaning of section 253(4) of the Income Tax Act. 8. By way of the present Miscellaneous Applications, an effort is being made by the Revenue that such a finding recorded by the Tribunal should have not been recorded. But we failed to understand as to why the grounds raised in the Cross Objections ought to have not been disposed of on merit. These are such factual issues, which have been discussed by the Tribunal by reproducing the complete written submission of the assessees and after applying its mind. There is no factual error pointed out by the Revenue except its grievances that such issue ought to have not been decided because that would prevent and preclude the Revenue to reopen the assessments according to their own understanding of the Hon’ble Supreme Court’s decision in the case of Pr. CIT, Central -3 -vs.- Abhisar Buildwell (P) Ltd. [2023] 149 taxmann.com 399 (SC). 9. At the cost of repetition, we would like to again remind ourselves that scope of section 254(2) would M.A. Nos. 05 to 13/GTY/2024 (in ITA Nos. 51 to 59/GAU/2023) & M.A. Nos. 14 to 19/GTY/2024 (in ITA Nos. 61 to 66/GAU/2023) 14 contemplate that this power can only be exercised when the mistake, which is sought to be rectified as an obvious and patent mistake, which is apparent from the record and not a mistake which requires to be established by arguments and a long-drawn process of reasoning on points on which there may conceivably be two opinions The detailed submissions filed by both the parties would goad us in a debatable issue of facts, which is beyond the scope of jurisdiction under section 254(2). 10. We also take note of the letter dated 27.03.2024 of ld. CCIT, Shillong not granting approval to ld. DCIT, Shillong to file appeals u/s. 260A of the Act before the Hon’ble High Court against the order of the Tribunal. 11. We further take note of the fact that the Revenue has accepted the identical claims in five scrutiny cases of which two were subject to reassessments u/s 147 of the Act more than one year after the impugned search in Bamalwa Group based on the same materials as used by the Assessing Officer in the assessments framed u/s. 153A in respect of the same scrip under identical circumstances. If this is allowed, it would be in violation of principle of consistency as settled by the Hon’ble Apex Court in Radhaswami Satsang -vs.- CIT [193 ITR 321 (SC)] and Bharat Sanchar Nigam Ltd. -vs.- Union of India [282 M.A. Nos. 05 to 13/GTY/2024 (in ITA Nos. 51 to 59/GAU/2023) & M.A. Nos. 14 to 19/GTY/2024 (in ITA Nos. 61 to 66/GAU/2023) 15 ITR 273(SC)]. Hence, in view of the above discussions, all the Miscellaneous Applications are dismissed. 12. In the result, all the Miscellaneous Applications are dismissed. Order pronounced in the open Court on 29.10.2024. Sd/- Sd/- (Manomohan Das) (Rajesh Kumar) Judicial Member Accountant Member Kolkata, the 29th day of October, 2024 Copies to :(1) Bajrang Lal Bamalwa, Ground Floor, Mahalaya Road, C/o. A.K. Varma, Dibrugarh-786001, Assam (2) Bachh Raj Bamalwa, Mahalaya Road, C/o. A.K. Varma, Dibrugarh-786001, Assam (3) Hans Raj Bamalwa, Mahalaya Road, C/o. A.K. Varma, Dibrugarh-786001, Assam (4) Hans Raj Bamalwa (HUF), Mahalaya Road, C/o. A.K. Varma, Dibrugarh-786001, Assam (5) Usha Bamalwa, Mahalaya Road, C/o. A.K. Varma, Dibrugarh-786001, Assam (6) Meenakshi Bamalwa Soni, Mahalaya Road, C/o. A.K. Varma, Dibrugarh-786001, Assam M.A. Nos. 05 to 13/GTY/2024 (in ITA Nos. 51 to 59/GAU/2023) & M.A. Nos. 14 to 19/GTY/2024 (in ITA Nos. 61 to 66/GAU/2023) 16 (7) Bhagwati Devi Bamalwa, Mahalaya Road, C/o. A.K. Varma, Dibrugarh-786001, Assam (8) Vinay Bamalwa, Mahalaya Road,C/o. A.K. Varma, Dibrugarh-786001, Assam (9) Ravi Bamalwa, Mahalaya Road, C/o. A.K. Varma, Dibrugarh-786001, Assam (10) Madan Lal Bamalwa, Mahalaya Road, C/o. A.K. Varma, Dibrugarh-786001, Assam (11) Sheeetal Bamalwa, Mahalaya Road, C/o. A.K. Varma, Dibrugarh-786001, Assam (12) Pramod Kumar Bamalwa, Mahalaya Road, C/o. A.K. Varma, Dibrugarh-786001, Assam (13) Vinod Bamalwa, Mahalaya Road, C/o. A.K. Varma, Dibrugarh-786001, Assam (14) Deputy Commissioner of Income Tax, Circle-1, Dibrugarh Pushkara House, Natun Gaon, NH-37, Mohanaghat, Dibrugarh, Assam-786008 (15) Commissioner of Income Tax (Appeals), North East Region, Guwahati (16) Commissioner of Income Tax- , (17) The Departmental Representative (18) Guard File TRUE COPY By order Assistant Registrar, Income Tax Appellate Tribunal, Kolkata Benches, Kolkata Laha/Sr. P.S. "