Assistant Commissioner of Income Tax, Circle - Silchar, Silchar V. Smt. Sweta Jain, Kolkata

ITA 120/GTY/2017

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 2153 (ITAT-GUWAHATI)
• Duration Of Justice: 2 year(s) 1 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-08-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2013-2014
• Appeal Filed On: 08-06-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SANDIP SENGUPTA J
• Assessee Lawyers: SANJOY MODY
• Keywords: Business income; Search and seizure
• Section: 143(3)

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL GUWAHATI BENCH, GUWAHATI BEFORE SHRI S.S.GODARA, JUDICIAL MEMBER AND DR. A.L. SAINI, ACCOUNTANT MEMBER ITA NO. 120 / GAU / 2017 ASSESSMENT YEAR :2013-14 ACIT, CIRCLE-SILCHAR AAYAKAR BHAWAN, PWD ROAD, SILCHAR-788001, CACHAR, ASSAM V/S . SMT. SWETA JAIN BANYAN TREE APARTMENT, ROWDEN STREET, KOLKATA [ PAN NO.ACRPA 9449 C ] /APPELLANT .. / RESPONDENT /BY APPELLANT SHRI SANDIP SENGUPTA, JCIT-DR /BY RESPONDENT SHRI SANJOY MODY, FCA /DATE OF HEARING 10-07-2019 /DATE OF PRONOUNCEMENT 02-08-2019 / O R D E R PER BENCH:- THIS REVENUES APPEAL FOR ASSESSMENT YEAR 2013-14 ARISES AGAINST THE COMMISSIONER OF INCOME TAX (APPEALS)-SHILLONGS ORD ER DATED 29.03.2017 PASSED IN CASE NO. SIL-198/2015-16, INVOLVING PROCE EDINGS U/S 143(3) R.W.S 153C OF THE INCOME TAX ACT, 1961; IN SHORT THE ACT . HEARD BOTH THE PARTIES. CASE FILE PERUSED. 2. THE REVENUES SOLE SUBSTANTIVE GRIEVANCE CANVASS ING OF THE INSTANT APPEAL SEEKS TO REVIVE THE ASSESSING OFFICERS ACTI ON ADDING AN AMOUNT OF RS.1,00,95,000/- ON ACCOUNT OF ENHANCEMENT OF TAXP AYERS INCOME ON ACCOUNT OF TREATING IN POTATO. ITA NO.120/GAU/2017 A.Y. 2013 -14 ACIT, CIR-SILCHAR VS. SMT. SWETA JAIN PAGE 2 3. WE HAVE GIVEN OUR THOUGHTFUL CONSIDERATION TO RI VAL CONTENTIONS. THE ASSESSEES PAPER BOOK COMPRISING OF HER RETURNED IN COME, COMPUTATION STATING BUSINESS INCOME OF RS.13,53,618/-, BALANCE- SHEET AS WELL AS TRADING ACCOUNT IN POTATO STATING GROSS PROFIT OF RS.1,01,3 1,600/- STAND PERUSED. WE PROCEED FURTHER TO NOTICE THAT CIT(A)S DETAILED DI SCUSSION DELETING THE IMPUGNED ADDITION READS AS UNDER:- 4.0 GROUND NO.2 THE ABOVE GROUND IS DIRECTED AGAINST ADDITION OF RS .1,00,95,000/- ON ACCOUNT OF SHORT DISCLOSURE OF ADDITIONAL INCOME IN THE RETURN OF INCOME IN COMPARE TO INCOME DISCLOSED DURING THE COURSE OF SEARCH. 4.1 A SEARCH AND SEIZURE OPERATION WAS CONDUCTED IN THE CASE OF UFM GROUP OF CASES ON 07.11.2012 AND ON SUBSEQUENT DATE S. DURING THE COURSE OF THE SAID SEARCH, THE APPELLANT VIDE HER L ETTER DATED 20.12/2012 ADDRESSED TO ADDL. DIT(INV) HAS DECLARED ADDITIONAL INCOME OF RS.3.15 CRORE WHICH WAS CLAIMED TO HAVE BEEN EAR NED FROM TRADING IN POTATO, GINGER ETC. AFTER GOING THROUGH THE RETURN OF INCOME FIELD BY THE APPELLANT, THE AO OBSERVED THAT SHE HAS DISCLOSED N ET PROFIT OF RS.1,35,36,618/- IN HER TRADING, PROFIT & LOSS ACC OUNT WHICH ALSO INCLUDED INCOME FROM OTHER THAN TRADING IN POTATO, GINGER E TC. WHEREAS SHE HAS MADE PROFIT OF RS.2,83,34,940/- FROM TRADING IN POT ATO & GINGER FOR THE PERIOD 01.04.2012 TO 27.10.2012 (MISTAKENLY TYPED A S 2013) AND ASKED HER TO EXPLAIN WHY THE APPELLANT HAS NOT DECLARED H ER INCOME TRULY & CORRECTLY IN RETURN OF INCOME. IN REPLY TO THIS QUE RY OF THE AO, THE APPELLANT EXPLAINED THAT THE NET PROFIT OF RS.1,35, 36,318/- INCLUDES PROFIT FROM TRADING IN POTATO OF RS.1,01,341,600/- WHICH I S INCLUDED IN SEIZED DOCUMENT MARKED NB-25. IN ADDITION TO THIS, INCOME OF RS.2,14,05,000/- WAS ALSO DECLARED AS ADDITIONAL INCOME IN COMPUTATI ON OF TOTAL INCOME ON ACCOUNT OF TRADING IN GINGER AND BROOM. THEREFO RE THE APPELLANT CONTEND THAT AS AGAINST INCOME OF RS.2,83,34,940/- REFLECTED IN SEIZED DOCUMENT MARKED NB-25, SHE ACTUALLY DISCLOSED INCOM E OF RS.3,15,36,600/- (WRONGLY TYPED AS RS.3,15,35,600/- ) IN HER RETURN OF INCOME WHICH IS MORE THAN RS.3,15,00,000/- DECLARED DURING THE COURSE OF THE SEARCH. AFTER CONSIDERING THIS SUBMISSION OF THE APPELLANT, THE AO HELD THAT THE CONTENTION OF THE APPELLANT CANNOT BE ACCEPTED FOR THE REASONS, TO QUOTE, DISCLOSURE OF ADDITIONAL INCOME MEANS DISCLOSURE OVER AND ABOVE NORMAL BUSINESS INCOME. THE ADDITION AL DISCLOSURE OF INCOME IS FROM UNDISCLOSED SOURCE. WHEN THE ASSESSE E HAS ALREADY DISCLOSED ADDITIONAL INCOME OF RS.3.15 CRORE FROM U NDISCLOSED BUSINESS OF POTATO, THIS WHOLE AMOUNT SHOULD HAVE BEEN SHOWN IN COMPUTATION OF TOTAL INCOME. THIS AMOUNTS TO RETRACTING THE ALREAD Y DISCLOSED ADDITIONAL INCOME. FOR THE ABOVE REASONS, THE AO BROUGHT TO T AX THE AMOUNT OF DIFFERENCE BETWEEN ADDITIONAL INCOME DISCLOSED DURI NG THE COURSE OF SEARCH OF RS.3,15,00,000/- AND THE ADDITIONAL INCOM E OF ITA NO.120/GAU/2017 A.Y. 2013 -14 ACIT, CIR-SILCHAR VS. SMT. SWETA JAIN PAGE 3 RS.2,14,05,000/- WHICH WAS DISCLOSED SEPARATELY IN COMPUTING OF TOTAL INCOME, WHICH WORKED OUT TO RS.1,00,95,000/- AND AD DED THE SAME TO THE INCOME OF THE APPELLANT. 4.2 THE A/R OF THE APPELLANT SUBMITTED BEFORE ME TH AT A SEARCH & SEIZURE OPERATION WAS CONDUCTED IN THE CASE OF UFM GROUP OF CASES ON 07.11.2012 AND ON SUBSEQUENT DATES. DURING THE COUR SE OF THE SAID SEARCH, PAGE NO. 40 OF SEIZED DOCUMENT MARKED NB-25 BELONGED TO THE APPELLANT. A COPY OF THE SAID DOCUMENT WAS AS FILED BEFORE ME AND IT WAS POINTED OUT THAT THE SAME CONTAINS TRADING ACCO UNTS OF POTATO, BROOMS AND GINGER FOR THE PERIOD 01.04.12 TO 27.10. 12. THE SAID TRADING ACCOUNT REVEALS THAT APPELLANT HAS EARNED INCOME FR OM TRADING IN POTATO AT RS.1,01,31,600/- AND FROM TRADING IN GINGER AND BROOM AT RS.1,84,05,00/-, WHICH TOTALS TO RS.2,85,36,600/-. HE ALSO FIELD BEFORE ME A COPY OF THE APPELLANTS LETTER DATED 20.12.201 2 ADDRESSED TO THE ADDITIONAL DIT (INV) AND POINTED OUT THAT IN RELATI ON TO THE ABOVE TRADING INCOME THE APPELLANT DURING THE COURSE OF SEARCH DE CLARED TOTAL ADDITIONAL INCOME OF RS.3.15 CR. THEREAFTER A COPY OF COMPUTATION OF TOTAL INCOME, AUDITED BALANCE SHEET, AUDITED PROFIT & LOSS ACCOUNT AND AUDITED TRADING ACCOUNT OF ADDITIONAL INCOME FOR TH E YEAR UNDER CONSIDERATION OF THE APPELLANT WHICH WERE FILED BEF ORE THE AO WAS FILED BEFORE ME AND IT WAS CONTENDED THAT THE ACTUAL INCO ME DISCLOSED BY THE APPELLANT IN HER RETURN OF INCOME ON ACCOUNT OF TRA DING IN POTATO, BROOM AND GINGER WAS RS.3,15,36,600/-. THE AFORESAID DISC LOSURE APART FROM ABOVE TRADING PROFIT OF RS.2,85,36,600/- INCLUDED R S.30,00,000/- ON ACCOUNT OF INITIAL INVESTMENT IN THE SAID TRADING BUSINESS. THUS, HE CLAIMED THAT THERE WAS ABSOLUTELY NO SHORT DISCLOSU RE OF INCOME IN THE RETURN OF INCOME FILED BY THE APPELLANT. HE POINTED OUT THAT DURING THE COURSE OF ASSESSMENT PROCEEDINGS, THE AO WAS INITIA LLY OF THE VIEW THAT INCOME OF RS.1,35,36,618/- ONLY WAS DISCLOSED BY TH E APPELLANT IN TD HE RETURN OF INCOME WHICH INCLUDED INCOME ON ACCOUNT O F TRADING IN POTATO BUT NO AMOUNT OF INCOME WAS DISCLOSED ON ACCOUNT OF TRADING IN GINGER AND BROOM AND THEREFORE, ASKED THE APPELLANT TO EXP LAIN WHY SHORT DISCLOSURE WAS MADE. IN REPLY THERETO, THE APPELLAN T POINTED OUT THAT INCOME OF RS.1,35,36,618/- INCLUDES INCOME FROM TRA DING IN POTATO OF RS.1,01,31,600/- AND BESIDES THIS INCOME, INCOME OF RS.2,14,05,000/- WAS ALSO DISCLOSED SEPARATELY IN COMPUTATION 4. IT IS SUFFICIENTLY CLEAR FROM A PERUSAL OF THE A SSESSEES PAPER BOOK VIS-- VIS THE LOWER APPELLATE FINDING EXTRACTED HEREINABO VE THAT THE ASSESSEE HAD ALREADY DECLARED VERY NATURE OF INCOME IN HER RETUR N QUA TRADING AMOUNT OF RS.3,15,35,600/-. WE CONCLUDE IN VIEW OF THIS CLINC HING FACT THAT CIT(A) HAS RIGHTLY DELETED THE ADDITION IN QUESTION BY HOLDING THE SAME TO BE AN INSTANCE ITA NO.120/GAU/2017 A.Y. 2013 -14 ACIT, CIR-SILCHAR VS. SMT. SWETA JAIN PAGE 4 OF DOUBLE ADDITION. WE THUS CONFIRM THE CIT(A)S FI NDINGS AND DECLINE THE REVENUES SOLE SUBSTANTIVE GRIEVANCE. 5. THIS REVENUES APPEAL IS DISMISSED. ORDER PRONOUNCED IN ACCORDANCE WITH RULE 34(3) O THE ITAT RULES BY PUTTING ON NOTICE BOARD ON 02/08/2019 SD/- SD/- ( #) (%& #) ( A.L.SAINI) (S.S.GODARA) (ACCOUNTANT MEMBER) (JUDICIAL MEMBER) GUWAHATI, *DKP '- 02 / 08 /201 9 / COPY OF ORDER FORWARDED TO:- 1. /APPELLANT-ACIT, CIRCLE-SILCHAR, AAYAKAR BHAWAN, PW D ROAD, SILCHAR-788001, CACHAR, ASSAM 2. /RESPONDENT-SMT. SWETA JAIN BANYAN TREE APARTMENT, ROWDEN STREET, KOL-16 3. 2 3 8 / CONCERNED CIT GUWAHATI 4. 3- / CIT (A) GUWAHATI 5. ; &&2, 2, 8 / DR, ITAT, GUWAHATI 6. A / GUARD FILE. BY ORDER/ , /TRUE COPY/ SR. PRIVATE SECRETARY (ON TOUR) 2,