Dulal Bhuiyan, Jamshepur V. DCIT, Jamshepur

ITA 127/RAN/2012

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 85455 (ITAT-RANCHI)
• Duration Of Justice: 1 year(s) 11 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-12-2014
• Appeal Filed By: Assessee
• Bench Allotted: DB
• Assessment Year: 2006-2007
• Appeal Filed On: 17-12-2012
• Court: TRIBUNAL
• Department Lawyers: DEEPAK ROSHAN SENIOR S CLD
• Assessee Lawyers: S K PODDAR; M K CHOUDHARY LD
• Keywords: Unexplained investment; Opportunity of being heard
• Section: 143(3); 2

Judgement Text

1 ITA NOS. 127 - 129/RAN/12 - DULAL BHUIYAN INCOME TAX APPELLATE TRIBUNAL, CIRCUIT BENCH, RANCHI BEFORE HON'BLE SHRI H.L. KARWA, PRESIDENT , AND HON'BLE SHRI B.R. BASKARAN, ACCOUNTANT MEMBER ITA NO S . 127 TO 129 /RAN/201 2 A.Y S. 2006 - 07, 07 - 08 & 08 - 09 DULAL BHUIYAN VS. DY. COMMISSIONER INCOME - TAX PAN:A EZPB7107E CIRCLE - 1, JSR ( APPELLANT ) ( RESPONDENT ) FOR THE APPELLANT : S/ SHRI S.K. PODDAR & M.K.CHOUDHARY, ADVOCATE, LD.AR FOR THE RESPONDENT : SHRI DEEPAK ROSHAN, SENIOR S.C, LD.DR DATE OF HEARING : 01 - 12 - 2014 DATE OF PRONOUNCEMENT: 01 - 12 - 2014 O R D E R SHRI B.R. BASKARAN, ACCOUNTANT MEMBER : THE ASSESSEE HAS FILED THESE APPEALS CHALLENGING THE COMMON ORDER DATED 31.10.2012 PASSED BY LD CIT(A), JAMSHEDPUR AND THEY RELATE TO THE ASSESSMENT YEARS 2006 - 07 TO 2008 - 09. ALL THESE APPEALS WERE HEARD TOGETHER AND HENCE THEY ARE BEING DISPOSED OF BY THIS COMMON ORDER, FOR THE SAKE OF CONVENIENCE. 2. THE ASSESSING OFFICER HAS PA SSED THE ASSESSMENT ORDERS FOR AY 2006 - 07 AND 2007 - 08 U/S 143(3) R.W.S. 147 OF THE ACT AND THE ASSESSMENT ORDER FOR AY 2008 - 09 HAS BEEN PASSED U/S 143(3) OF THE ACT. AT THE OUTSET, THE LD A.R SUBMITTED THAT THE ASSESSEE COULD NOT PROPERLY REPRESENT HIS CA SE IN ALL THESE THREE YEARS BEFORE THE AO AS WELL AS BEFORE LD CIT(A) AND ACCORDINGLY PRAYED THAT THE MATTER MAY BE RESTORED BACK TO THE FILE OF THE AO FOR FRESH CONSIDERATION. 2 ITA NOS. 127 - 129/RAN/12 - DULAL BHUIYAN 3. WE SHALL FIRST TAKE UP THE APPEAL FILED FOR AY 2006 - 07. THE FIRST ISSU E CONTESTED THERE IN RELATES TO THE EXEMPT ION CLAIMED BY THE ASSESSEE IN RESPECT OF OFFICIATING EXPENSES AND MEDICAL ALLOWANCES RECEIVED IN HIS CAPACITY AS A MEMBER OF STATE LEGISLATURE. THE LD A.R SUBMITTED THAT BOTH THESE ALLOWANCES ARE EXEMPT U/S 10(17 ) OF THE ACT. HOWEVER, ON A CAREFUL PERUSAL OF THE PROVISIONS OF SEC. 10(17) OF THE ACT, WE NOTICE THAT THE SAID SECTION PROVIDES EXEMPTION FOR DAILY ALLOWANCE AND CONSTITUENCY ALLOWANCE ONLY. ACCORDINGLY WE REJECT THE CLAIM OF THE ASSESSEE AND UPHOLD T HE ORDER OF LD CIT(A) ON THIS ISSUE. 4. IN RESPECT OF THE FOLLOWING ISSUES, WE NOTICE THAT THEY INVOLVE APPRECIATION OF FACTS AND RECONCILIATION OF CERTAIN INVESTMENTS/RECEIPTS. (A) UNDISCLOSED BANK DEPOSITS - RS.4,25,288/ - (B) UNDISCLOSED INTE REST ON FIXED DEPOSIT - RS.1,47,703/ - (C) UNDISCLOSED INVESTMENT RELATING TO R.D - RS.1,08,000/ - (D) UNDISCLOSED INVESTMENT RELATING TO LIC POLICIES - RS.1,22,694/ - (E) ADDITION RELATING TO LAND & BUILDING RS.1,00,000/ - AND FURNITURE RS.34,000/ - (F) ADDITION ON ACCOUNT OF REJECTION OF CLAIM OF AGRICULTURAL INCOME RS.22,500/ - (G) UNEXPLAINED INVESTMENT IN GIVING LOANS RS.2,65,000/ - WE NOTICE THAT THE ASSESSING OFFICER HAS ASSESSED BOTH INCOME AS WELL AS INVESTMENTS. HENCE, WE FIND MERIT IN THE PRAYER OF LD A.R. THE LD D.R ALSO DID NOT OBJECT TO THE PLEA PUT FORTH BY LD A.R. ACCORDINGLY, WE SET ASIDE THE ORDER PASSED BY LD CIT(A) ON THE ABOVE CITED ISSUES AND RESTORE THEM TO THE FILE OF THE ASSESSING OFFICER WITH THE DIRECTION TO EXAMINE TH EM AFRESH AFTER AFFORDING NECESSARY OPPORTUNITY OF BEING HEARD AND TAKE APPROPRIATE DECISION IN ACCORDANCE WITH LAW. 3 ITA NOS. 127 - 129/RAN/12 - DULAL BHUIYAN 5. THE LAST ISSUE RELATES TO THE ADDITION ON ACCOUNT OF LOW DRAWINGS FOR HOUSEHOLD EXPENSES. THE AO HAD MADE ADDITION ON ACCOUNT OF H OUSE HOLE EXPENSES AT RS.1,80,000/ - P.A. THE LD A.R SUBMITTED THAT THE TRIBUNAL HAD CONFIRMED IDENTICAL ADDITION MADE IN THE HANDS OF ASSESSEE S WIFE AT RS.1,20,000/ - P.A. HE FURTHER SUBMITTED THAT THE ASSESSEE IS HAVING AGRICULTURAL INCOME AND HENCE THE ESTIMATE OF HOUSE HOLD EXPENSES CONFIRMED BY LD CIT(A) IS ON THE HIGHER SIDE. HOWEVER, WE NOTICE FROM THE ASSESSMENT ORDER THAT THE ASSESSEE IS HAVING THREE SCHOOL GOING CHILDREN, 3 CARS AND A MOTOR CYCLE. THE ASSESSEE HIMSELF HAD DECLARED HOUSE HOLD E XPENSES TO THE TUNE OF RS.1,20,000/ - . CONSIDERING THE FACT THAT THE DRAWINGS FOR HOUSE HOLD EXPENSES HAS BEEN DETERMINED AT RS.1,20,000/ - IN THE HANDS OF ASSESSEE S WIFE, WE ESTIMATE THIS EXPENSE AT RS.1,50,000/ - AND DIRECT THE AO TO ADOPT THE SAME FOR CO MPUTING THE TOTAL INCOME. THE ORDER OF LD CIT(A) STANDS MODIFIED ACCORDINGLY. 6. WE SHALL NOW TAKE UP THE APPEAL FILED FOR AY 2007 - 08. THE FOLLOWING ISSUES ARE IDENTICAL WITH THE ADDITIONS MADE IN THE IMMEDIATELY PRECEDING YEAR AND ACCORDINGLY, IN T ERMS OF THE DECISION TAKEN IN THAT YEAR, WE ARE RESTORING THESE MATTERS TO THE FILE OF THE ASSESSING OFFICER FOR EXAMINING THEM AFRESH. (A) UNDISCLOSED BANK DEPOSITS - RS.16,75,532/ - (B) UNDISCLOSED INTEREST ON FIXED DEPOSIT - RS.27,688/ - (C) UNDI SCLOSED INVESTMENT RELATING TO R.D - RS.1,08,000/ - (D) UNDISCLOSED INVESTMENT RELATING TO LIC POLICIES - RS.10,48,687/ - (E) ADDITION RELATING TO LAND & BUILDING RS.30,000/ - AND FURNITURE RS.34,000/ - (F) ADDITION ON ACCOUNT OF REJECTION OF CLAIM O F AGRICULTURAL INCOME RS.1,15,000/ - (G) UNEXPLAINED INVESTMENT IN GIVING LOANS RS.3,30,000/ - THE ORDERS PASSED BY LD CIT(A) ON THE ABOVE SAID ISSUES ARE ACCORDINGLY SET ASIDE. 4 ITA NOS. 127 - 129/RAN/12 - DULAL BHUIYAN 7. THE LAST ISSUE PERTAINS TO THE ADDITION OF RS.3,00,000/ - MADE ON ACCO UNT OF LOW DRAWINGS TOWARDS HOUSE HOLD EXPENSES. IN THIS YEAR, THE ASSESSEE HAD SHOWN THE WITHDRAWALS FOR HOUSE HOLD EXPENSES AT RS.45,000/ - ONLY. THE AO, BY CONSIDERING THE FAMILY BACK GROUND, HIS PUBLIC STATUS, THE CAR LOAN AND LIC PREMIUM PAYMENTS DET ERMINED THE HOUSE HOLD EXPENSES AT RS.3,00,000/ - . IN THE PRECEDING YEAR, WE HAD RESTRICTED THIS ADDITION TO RS.1,50,000/ - . ACCORDINGLY, WE ESTIMATE THE DRAWINGS TOWARDS HOUSE HOLD EXPENSES AT RS.2,00,000/ - AND DIRECT THE AO TO COMPUTE THE ADDITION ACCORD INGLY. THE ORDER OF LD CIT(A) STANDS MODIFIED ACCORDINGLY. 8. WE SHALL NOW TAKE UP THE APPEAL FILED FOR AY 2008 - 09. THE FOLLOWING ISSUES ARE IDENTICAL WITH THE ADDITIONS MADE IN THE IMMEDIATELY PRECEDING YEARS AND ACCORDINGLY, IN TERMS OF THE DECI SION TAKEN IN THOSE YEAR S , WE ARE RESTORING THESE MATTERS TO THE FILE OF THE ASSESSING OFFICER FOR EXAMINING THEM AFRESH. (A) UNDISCLOSED BANK DEPOSITS - RS.30,659/ - (B) UNDISCLOSED INTEREST ON FIXED DEPOSIT - RS.16,92,295/ - (C) UNDISCLOSED INVEST MENT RELATING TO R.D - RS.1,08,000/ - (D) UNDISCLOSED INVESTMENT RELATING TO LIC POLICIES - RS.7,03,147/ - (E) ADDITION RELATING TO LAND & BUILDING RS.45,000/ - AND FURNITURE RS.50,000/ - (F) ADDITION ON ACCOUNT OF REJECTION OF CLAIM OF AGRICULTURAL INCOME RS.1,45,000/ - (G) UNEXPLAIND INVESTMENT IN GIVING LOANS RS.17,75 ,000/ - (H) ENHANCEMENT OF INTEREST INCOME BY LD CIT(A) THE ORDERS PASSED BY LD CIT(A) ON THE ABOVE SAID ISSUES ARE ACCORDINGLY SET ASIDE. 9. THE LAST ISSUE PERTAINS TO THE AD DITION OF RS.3,00,000/ - MADE ON ACCOUNT OF LOW DRAWINGS TOWARDS HOUSE HOLD EXPENSES. IN THIS YEAR, THE ASSESSEE HAD SHOWN THE WITHDRAWALS FOR HOUSE HOLD EXPENSES AT RS.56,000/ - ONLY. THE AO, BY 5 ITA NOS. 127 - 129/RAN/12 - DULAL BHUIYAN CONSIDERING THE FAMILY BACK GROUND, HIS PUBLIC STATUS ETC., DETERMINED THE HOUSE HOLD EXPENSES AT RS.3,00,000/ - . IN THE IMMEDIATELY PRECEDING YEAR, WE HAD RESTRICTED THIS ADDITION TO RS.2,00,000/ - . ACCORDINGLY, WE ESTIMATE THE DRAWINGS TOWARDS HOUSE HOLD EXPENSES AT RS.2,00,000/ - AND DIRECT THE AO TO COMPUTE THE ADDITION ACCORDINGLY. THE ORDER OF LD CIT(A) STANDS MODIFIED ACCORDINGLY. 10. IN THE RESULT, THE APPEAL FILED FOR AY 2006 - 07 IS TREATED AS PARTLY ALLOWED AND THE OTHER TWO APPEALS ARE TREATED AS ALLOWED. PRONOUNCED ACCORD INGLY ON 01.12 . 2014 SD/ - SD/ - [ H.L. KARWA ] [ B.R. BASKARAN ] PRESIDENT ACCOUNTANT MEMBER DT. 01.12. 2014 PLACE : RANCHI PP, SR. PS COPY OF THE ORDER FORWARDED TO: 1. THE APPELLANT : 2 THE RESPONDENT: 3..THE CIT, 4.THE CIT(A), 5.DR, ITAT CIRCUIT BENCH, RANCHI 6. GUARD FILE. TRUE COPY, BY ORDER, ASSTT. REGISTRAR 6 ITA NOS. 127 - 129/RAN/12 - DULAL BHUIYAN 1. DATE O F DICTATION /D.H 1.12.14 ORDER ........ PREPARED BY MEMBER IN HIS LAPTOP. NO DICTATION GIVEN. 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER ........................OTHER MEMBER ............................. 3. DATE ON WHICH THE APPRO VED DRAFT COMES TO THE SR. P.S./P.S. ..................... 4. DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE DICTATING MEMBER FOR PRONOUNCEMENT............................... 1.12.14 ................................................... 5. DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR. P.S./P.S ................ 6. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK ....................................... 7. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK ......................................... 8. THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT REGISTRAR FOR SIGNATURE ON THE ORDER ................................................................................................. 9. DATE OF DESPATCH OF THE ORDER ................................................... ...........