DCIT, Thrissur V. Chinnasons Jewellery, Vadakancherry

ITA 1128/COCH/2005

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 61505 (ITAT-COCHIN)
• Duration Of Justice: 6 year(s) 6 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-06-2012
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 18-04-2012
• Assessment Year: 2002-2003
• Appeal Filed On: 14-11-2005
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: S VIJAYAPRABHA
• Assessee Lawyers: JOSE POTTOKKARAN
• Keywords: Sale consideration of property below Jantri Value

Judgement Text

1 ITA NO.1128/COCH/2005 IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH, COCHIN BEFORE SHRI N.R.S. GANESAN (JM) AND SHRI B.R. BASKA RAN(AM) I.T.A NO. 1128/COCH/2005 (ASSESSMENT YEAR 2002-03) THE DY.CIT, CENT.CIR. VS M/S CHINNANSONS JEWELL ERY THRISSUR T.B. ROAD, VADAKKANCHERY PAN : AABFC4950C (APPELLANT) (RESPONDENT) APPELLANT BY : SMT. S VIJAYAPRABHA RESPONDENT BY : SHRI JOSE POTTOKKARAN DATE OF HEARING : 18-04-2012 DATE OF PRONOUNCEMENT : 01-06-2012 O R D E R PER N.R.S. GANESAN (JM) THIS APPEAL OF THE REVENUE IS DIRECTED AGAINST THE ORDER OF COMMISSIONER OF INCOME-TAX(A)-I, KOCHI DATED 01-08-2005 AND PERTAIN S TO THE ASSESSMENT YEAR 2002-03. 2. THE ONLY ISSUE ARISES FOR CONSIDERATION IS ADDIT ION OF RS.7,42,860. 2. SMT. VIJAYAPRABHA, THE LD.DR SUBMITTED THAT THE ASSESSING OFFICER FOUND THAT THE ASSESSEE FIRM PURCHASED GOLD FROM SHRI M.C. JOSE, O NE OF THE PARTNERS TO THE EXTENT OF RS.7,42,860. ACCORDING TO THE LD.REPRESENTATIVE, T HE PARTNERS AND THEIR FAMILY MEMBERS HAD NO CAPACITY OR ANY OPPORTUNITY TO EARN SO MUCH OF MONEY. THEREFORE, ACCORDING TO THE LD.REPRESENTATIVE, THE ASSESSING OFFICER MADE A DDITION TO THE EXTENT OF RS.7,42,860. HOWEVER, ON APPEAL BY THE ASSESSEE, THE COMMISSIONE R OF INCOME-TAX(A) FOUND THAT THE CREDITWORTHINESS OF THE PARTNERS WERE ESTABLISHED A ND THE TRANSACTION ALSO GENUINE. 2 ITA NO.1128/COCH/2005 ACCORDING TO THE LD.DR, IN THE ABSENCE OF ANY MATER IAL, THE COMMISSIONER OF INCOME- TAX(A) CANNOT DELETE THE ADDITION. 3. ON THE CONTRARY, SHRI JOSE POTTOKKARAN, THE LD.R EPRESENTATIVE FOR THE ASSESSEE SUBMITTED THAT THE PARTNER FROM WHOM THE GOLD WAS P URCHASED HAS FILED RETURN OF INCOME DISCLOSING SUFFICIENT INCOME FOR PURCHASE OF THE GOLD. ONCE THE RETURN FILED BY THE PARTNER WAS ACCEPTED BY THE REVENUE BEFORE THE DATE OF SEARCH, THE DEPARTMENT CANNOT QUESTION THE CAPACITY OF THE PARTNER TO INVE ST SUCH KIND OF GOLD IN THE PARTNERSHIP FIRM. ACCORDING TO THE LD.REPRESENTATI VE, THE COMMISSIONER OF INCOME- TAX(A), AFTER VERIFYING OF THE RECORDS FOUND THAT T HE CREDITWORTHINESS AND GENUINENESS OF THE TRANSACTION WAS ESTABLISHED. THE LD.REPRESENTA TIVE FOR THE ASSESSEE FURTHER SUBMITTED THAT THE IDENTITY OF THE CREDITOR IS NOT IN DOUBT. IN VIEW OF THE ABOVE, THE COMMISSIONER OF INCOME-TAX(A) HAS RIGHTLY DELETED T HE ADDITION. 4. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS ON EITH ER SIDE AND ALSO PERUSED THE MATERIAL AVAILABLE ON RECORD. ADMITTEDLY, THE GOLD WAS PURCHASED BY THE FIRM FROM SHRI M.C. JOSE. SHRI M.C. JOSE HAS ALSO CONFIRMED THE CR EDIT AND FILED THE COPIES OF THE RETURN OF INCOME FILED BY HIM TO SHOW THAT HE HAD SUFFICIE NT FUNDS FOR PURCHASE OF THE JEWELLERY. THE RETURNS FILED BY THE PARTNER DISCLO SING THE INCOME WAS ACCEPTED BY THE DEPARTMENT. ONCE THE INCOME DISCLOSED BY THE PARTN ER WAS ACCEPTED, IT MAY NOT BE PROPER ON THE PART OF THE DEPARTMENT TO DOUBT THE C APACITY AND CAPACITY OF THE PARTNER TO ADVANCE GOLD TO THE PARTNERSHIP FIRM. THEREFORE , WE DO NOT FIND ANY INFIRMITY IN THE ORDER OF THE LOWER AUTHORITY. ACCORDINGLY, THE SAM E IS CONFIRMED. 5. IN THE RESULT, THE APPEAL OF THE REVENUE STANDS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 01 ST JUNE, 2012. SD/- SD/- (B.R. BASKARAN) (N.R.S. GANESAN) ACCOUNTANT MEMBER JUDICIAL MEMBER COCHIN, DT : 01 ST JUNE, 2012 PK/- 3 ITA NO.1128/COCH/2005 COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE COMMISSIONER OF INCOME-TAX 4. THE COMMISSIONER OF INCOME-TAX(A) 5. THE DR (TRUE COPY) BY ORDER ASSTT. REGISTRAR, INCOME-TAX APPELLATE TRIBUNAL, COCHIN BENCH