M/s. Nirman Enterprise, Ahmedabad V. The Income tax Officer, Ahmedabad

ITA 111/AHD/2004

• Counselvise Citation: [2009] 115 COUNSELVISE.COM (IT) 0333 (ITAT-AHMEDABAD)
• Duration Of Justice: 5 year(s) 8 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-10-2009
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: C
• Next Hearing Date: 09-10-2009
• Assessment Year: 2000-2001
• Appeal Filed On: 13-01-2004
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: SHELLEY JINDAL
• Assessee Lawyers: S N DIVETIA
• Keywords: Unexplained cash credit
• Section: 143(3); 263

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCH C BEFORE SHRI N.S. SAINI, ACCOUNTANT MEMBER AND SHRI MAHAVIR SINGH, JUDICIAL MEMBER DATE OF HEARING: 9.10.09 DRAFTED ON: 9.10.2009 ITA NO.111/AHD/2004 ASSESSMENT YEAR : 2000-2001 M/S. NIRMAN ENTERPRISE NR.HAVELI HALL, R.C. TECHNICAL ROAD, CHANDLODIA, AHMEDABAD VS. INCOME TAX OFFICER, WARD 9(1), AHMEDABAD PAN/GIR NO. : AABFN4795Q (APPELLANT) .. (RESPONDENT) APPELLANT BY : SHRI S.N.DIVETIA RESPONDENT BY: SHRI SHELLEY JINDAL SR. D.R. O R D E R PER N.S.SAINI , ACCOUNTANT MEMBER :- THIS IS AN APPEAL FILED BY ASSESSEE AGAINST THE OR DER OF THE LD.CIT-IV, AHMEDABAD, DATED 20.11.2003 BY TAKING FOLLOWING GR OUNDS OF APPEAL. 1.1 THE ORDER PASSED U/S.263 OF THE ACT ON 20.11.2 003 FOR A.Y.2000-01 BY CIT, AHMEDABAD-IV, IS ILLEGAL AND UNLAWFUL. 1.2 THE LD. CIT HAS GRIEVOUSLY ERRED IN LAW AND/OR ON FACTS IN HOLDING THAT THE ASSESSMENT COMPLETED UNDER SECTION 143(3) FOR A.Y. 2000-01 ON 31.12.2002 BY LEARNED ASSESSING OFFICER WAS ERRONEO US AND PREJUDICIAL TO THE INTEREST OF THE REVENUE. 1.3 THE IMPUGNED ORDER PASSED BY THE CIT WAS BEYOND HIS JURISDICTION UNDER SECTION 263 OF THE ACT. 2.1 THE LD. CIT HAS ERRED IN HOLDING THAT NO PROPER ENQUIRY WAS CARRIED OUT BY LEARNED ASSESSING OFFICER WITH REGARD TO THE FRE SH CREDITS IN THE ACCOUNT OF ITA NO.111 /AHD/2004 M/S. NIRMAN ENTERPRISE ASST.YEAR -2000-01 - 2 - THREE PARTNERS OF THE FIRM. THE LD. CIT HAS FAILED TO APPRECIATE THAT LEARNED ASSESSING OFFICER HAS IN FACT CARRIED OUT ENQUIRY I NTO THE SAID CREDITS. 3.1 WITHOUT PREJUDICE TO ABOVE AND IN ALTERNATIVE, THE LD. CIT HAS FAILED TO APPRECIATE THAT NO DETAILED ENQUIRY OR VERIFICATION IN RESPECT OF CREDITS IN THE ACCOUNT OF THE PARTNERS OF THE FIRM BY LEARNED ASSE SSING OFFICER ASSESSING THE FIRM IS JUSTIFIED IN VIEW OF VARIOUS JUDICIAL PRONO UNCEMENTS. 4.1 IT IS, THEREFORE, PRAYED THAT THE ORDER PASSED BY THE CIT SHOULD BE CANCELLED AND THE ASSESSMENT MADE BY THE LEARNED AS SESSING OFFICER ON 31.12.2002 SHOULD BE RESTORED. 2. AT THE OUTSET, THE LEARNED AUTHORISED REPRESENTA TIVE OF THE ASSESSEE SUBMITTED THAT THE ASSESSEE FILED THE PRESENT APPEA L AGAINST ORDER OF THE CIT, PASSED UNDER SECTION 263 OF THE ACT ON 20.11.2003 T AKING THE ABOVE GROUNDS OF APPEAL. SUBSEQUENTLY, THE LEARNED ASSESSING OFFICER PASSED ORDER UNDER 143(3) READ WITH SECTION 263 OF INCOME TAX ACT, 1961 MAKI NG ADDITION OF RS.3 LACS ON ACCOUNT OF UNEXPLAINED CASH CREDIT. THE ASSESSEE CA RRIED THE MATTER IN APPEAL BEFORE THE LEARNED COMMISSIONER OF INCOME TAX(APPEA LS) WHO VIDE HIS ORDER DATED 14.11.2005 DELETED THE ADDITION. THE REVENUE HAS NOT FILED FURTHER APPEAL AGAINST THE ORDER OF THE LEARNED COMMISSIONE R OF INCOME TAX(APPEALS) DELETING THE ABOVE ADDITION. THEREFORE, THE PRESENT APPEAL OF THE ASSESSEE HAS BECOME INFRUCTUOUS AND HAS TO BE DISMISSED. 3. THE LEARNED DEPARTMENTAL REPRESENTATIVE SUBMITTE D BEFORE US THAT THE REVENUE HAS NOT FILED FURTHER APPEAL TO THE HIGH CO URT AGAINST THE ORDER OF THE LEARNED COMMISSIONER OF INCOME TAX(APPEALS) DELETIN G THE ADDITION OF RS.3 LACS ON ACCOUNT OF CASH CREDIT. 4. AFTER HEARING BOTH THE PARTIES AND PERUSING THE MATERIAL ON RECORD, WE FIND THAT THE LEARNED ASSESSING OFFICER PASSED ORDE R PURSUANT TO THE ORDER OF ITA NO.111 /AHD/2004 M/S. NIRMAN ENTERPRISE ASST.YEAR -2000-01 - 3 - THE CIT UNDER SECTION 263 DATED 20.11.2003 AND MADE ADDITION OF RS.3 LACS ON ACCOUNT OF UNEXPLAINED CASH CREDIT WHICH WAS DELETE D ON APPEAL BY THE LEARNED COMMISSIONER OF INCOME TAX(APPEALS). THE L EARNED DEPARTMENTAL REPRESENTATIVE HAS SUBMITTED THAT THE REVENUE HAS N OT PREFERRED ANY FURTHER APPEAL AGAINST THE SAID ORDER OF THE LEARNED COMMIS SIONER OF INCOME TAX(APPEALS) AND THUS, THE MATTER HAS ATTAINED FINA LITY. IN VIEW OF THE SAME, THE PRESENT APPEAL OF THE ASSESSEE CHALLENGING THE ORDE R OF CIT PASSED UNDER SECTION 263 OF THE ACT HAS BECOME INFRUCTUOUS AND H ENCE DISMISSED. 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS DIS MISSED. ORDER PRONOUNCED IN THE COURT AT THE CLOSE OF THE H EARING IN THE PRESENCE OF THE PARTIES ON 09/10/2009. SD/- SD/- ( MAHAVIR SINGH) ( N.S. SAINI ) JUDICIAL MEMBER ACCOUNTANT MEMBER AHMEDABAD; DATED 09/10/2009 PARAS# COPY OF THE ORDER FORWARDED TO : 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT CONCERNED 4. THE LD. CIT-IV, AHMEDABAD. 5. THE DR, AHMEDABAD BENCH 6. THE GUARD FILE. BY ORDER, //TRUE COPY// (DY./ASSTT.REGISTRAR), ITAT, AHMEDABAD