P.Karvannan, Sivakasi V. DCIT, Madurai

ITA 1310/CHNY/2015

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 96252 (ITAT-CHENNAI)
• Duration Of Justice: 4 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-10-2015
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: C
• Next Hearing Date: 05-10-2015
• Assessment Year: 2008-2009
• Appeal Filed On: 29-05-2015
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: P RADHAKRISHNAN IRS
• Assessee Lawyers: V RAJASEKARAN
• Keywords: Revised return
• Section: 153A

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, CHENNAI , . , ! ' BEFORE SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER AND SHRI G. PAVAN KUMAR, JUDICIAL MEMBER ./ I.T.A.NO. 1310/MDS/2015 ! # $# / ASSESSMENT YEAR : 2008-2009 SHRI. P. KARVANNAN, NO.74A, VELAYUTHAM ROAD, SIVAKASI VS. THE DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE III, MADURAI [PAN ABDPK 0797N ] ( / APPELLANT) ( /RESPONDENT) %& ' ( / APPELLANT BY : SHRI. V. RAJASEKARAN, C.A )*%& ' ( /RESPONDENT BY : SHRI. P. RADHAKRISHNAN, IRS, JCIT. ' + / DATE OF HEARING : 05.10.2015 ,-$ ' + / DATE OF PRONOUNCEMENT : 16-10-2015 / O R D E R PER G. PAVAN KUMAR, JUDICIAL MEMBER : THE APPEAL IS FIELD BY THE ASSESSEE AGAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS)-19, CHENNAI, D ATED 25.02.2015 IN ITA NO.601/14-15 FOR THE ASSESSMENT YEAR 2008-09 PASSED U/S.143(3) RWS 153A AND 250 OF THE INCOME TAX ACT ( IN SHORT THE ACT). ITA NO. 1310/MDS/2015 :- 2 -: 2. THE ASSESSEE HAS RAISED GROUNDS OF APPEAL BEFORE T HE TRIBUNAL IN RESPECT OF ADDITION OF ADHAYAM RECEIPTS OF ?3,40,200/- WHICH IS INCLUDED IN INCOME OF THE ASSESSEE AND OTH ER BEING CAPITAL INTRODUCTION OF ?2 LAKHS IN M/S.SQNY GRANITES OUT OF ADHAYAM RECEIPTS. 3. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE I S AN INDIVIDUAL AND PARTNER OF M/S. SONY GROUP CONCER NS. SEARCH OPERATION U/S.132 OF THE ACT WAS CONDUCTED IN M/S. SONY FIREWORKS PRIVATE LIMITED MAIN GROUP CONCERN AT SIVAKASI ON 21.10.2008 AND ALSO RESIDENTIAL PREMISES OF THE FOUNDER OF GROUP. SIMULTANEOUSLY, INCOME TAX DEPARTMENT MADE A SURVEY U/S.133A IN TH E BUSINESS PREMISES AND FACTORIES AND SEIZED BOOKS OF ACCOUNTS , DOCUMENTS AND OTHER INCRIMINATING MATERIAL. A NOTICE U/S.153C RE AD WITH SECTION 153A(A) DATED 30.11.2009 WAS ISSUED TO THE ASSESSEE TO FILE A RETURN OF INCOME WITHIN STIPULATED TIME. 4. THE ASSESSEE FILED E-RETURN ON 19.09.2010 WITH INC OME OF ?6,66,320/-. IN THE ASSESSMENT PROCEEDINGS QUESTIO NNAIRE WAS ISSUED SEEKING EXPLANATIONS FOR INFORMATION OF THE SEIZED MATERIAL, ASSETS, BANK ACCOUNTS, MOVABLE AND IMMOVABLE ASSETS OWNED B Y THE ASSESSEE. THE LD. AR APPEARED ALONGWITH BANK ACCOUN TS STATEMENTS AND FILED EXPLANATIONS IN RESPECT OF ENTRIES FOUND IN BOOKS O F ACCOUNT AND ALSO SUBMITTED EVIDENCES TO SUPPORT THE CASE. T HE LD. ASSESSING ITA NO. 1310/MDS/2015 :- 3 -: OFFICER CONSIDERING THE SUBMISSIONS ON RECORD, AND EXAMINED THE BOOKS OF ACCOUNTS MADE ASSESSMENT BY ADDING A SUM O F ?17,86,690/- TO RETURNED INCOME WHICH INCLUDES ADAYAM RECEIPTS A ND CAPITAL INTRODUCED IN M/S. SQNY GRANITES AND INVESTMENT I N PROPERTY. AGGRIEVED BY THE ADDITION, THE ASSESSEE PREFERRED A N APPEAL BEFORE THE COMMISSIONER OF INCOME TAX (APPEALS). 5. BEFORE LD.CIT(A), THE LD. AR ARGUED THAT THE ASSESS EE HAS INCLUDED ADAYAM RECEIPTS IN THE REVISED RETURN OF I NCOME FILED ON 22.12.2010 WERE AS THE ASSESSING OFFICER HAS NOT CO NSIDERED THE RETURN AND AGAIN TAXED THE ADAYAM RECEIPTS AND ALSO CAPITAL INTRODUCED ?2 LAKHS IN ACCOUNT OF M/S.SQNY GRANITES. INSPITE OF EXPLAINING THAT CAPITAL AMOUNT OF ?2 LAKHS IS OUT OF THE ADAYAM REC EIPTS AVAILABLE WITH THE ASSESSEE AS SOURCE FOR INVESTMENT. THE LD.CIT (A) HAS CONSIDERED THE SUBMISSION OF LD. AR AND CONCLUDED THAT THE ASS ESSING OFFICER MADE ASSESSMENT BASED ON ORIGINAL RETURN FILED ON 1 9.10.2010 AND NOT REVISED RETURN. SINCE, THE REVISED RETURN IS NOT SU BJECT TO APPEAL CONFIRMED THE ADDITION OF ?3,40,000/- ADAYAM RECEIP TS. SIMILARLY, ADDITION OF ?2,00,000/- INTRODUCED IN CAPITAL ACCOU NT OF M/S. SQNY GRANITES IGNORING THE FACTUAL POSITION AND HELD THA T ASSESSEE HAS NOT FURNISHED ANY EVIDENCES FOR THE SOURCE OF CAPITAL AND FURTHER, AGGRIEVED BY THE ORDER OF LD.CIT(A) THE ASSESSEE F ILED AN APPEAL BEFORE THE TRIBUNAL. ITA NO. 1310/MDS/2015 :- 4 -: 6. BEFORE THE TRIBUNAL, THE LD. COUNSEL HAS SUBMITTED THAT ADAYAM RECEIPTS ARE TAXED IN THE HANDS OF THE ASSES SEE IN THE REVISED RETURN WHICH THE ASSESSING OFFICER HAS OVERLOOKED A ND MADE ADDITION WITHOUT VERIFYING THE REVISED RETURN OF INCOME AND REQUESTED THE TRIBUNAL TO DELETE THE ADDITION OF ADAYAM RECEIPTS AS IT SUFFERED DOUBLE TAXATION AND REFERRED TO COPIES OF ORIGINAL RETURN AND REVISED RETURN ALONGWITH PROFIT AND LOSS ACCOUNT AND LEDGER COPIES OF M/S. SQNY GRANITIES IN PAPER BOOK. THE LD.AR DEMONSTRATED BE FORE US THAT THE ASSESSEE HAD OFFERED ADAYAM RECEIPTS OF ?3,40,200/- UNDER THE HEAD BUSINESS OR PROFESSION, WHICH IS EVIDENT FROM T HE PROFIT AND LOSS ACCOUNT FILED ALONGWITH REVISED RETURN AND PRAYED T HE TRIBUNAL TO DELETE THE ADDITION. FURTHER, LD.AR SUBMITTED THAT OUT OF THE SOURCE OF ADAYAM RECEIPTS, THE CAPITAL CONTRIBUTION OF ?2 LA KHS WAS MADE AS INVESTMENT IN M/S. SQNY GRANITES REFERRING THE ACCO UNTS COPIES OF THE M/S. SQNL GRANITES AND ALSO WRITTEN SUBMISSIONS CON TAINING PROFIT AND LOSS ACCOUNT, BALANCE SHEET OF M/S. SQNY GRANITES F OR THE YEAR ENDING 31.03.2008 AND RELIED ON THE DECISIONS OF THE JURI SDICTIONAL MADRAS HIGH COURT IN THE CASE OF CIT VS. K.S.M. GURUSWAMY NADAR & SONS 149 ITR 127 AND CIT VS. V. NELLAIAPAN 214 ITR 465 CONSIDERING SUBMISSION AND EXPLANATIONS , THE LD. AUTHORISED REPRESENTATIVE PLEADED FOR DELETION OF THE BOTH THE ADDITIONS BY THE TRIBUNAL. ITA NO. 1310/MDS/2015 :- 5 -: 7. ON THE OTHER HAND, THE LD. DEPARTMENTAL REPRESENTA TIVE RELIED ON THE ORDER OF THE COMMISSIONER OF INCOME T AX (APPEALS) AND SUBMITTED THAT INFORMATION WAS NOT SUBMITTED BEFOR E THE ASSESSING OFFICER OR IN THE APPELLATE PROCEEDINGS. HENCE, TH E APPEAL OF THE ASSESSEE IS TO BE DISMISSED. 8. AFTER HEARING THE SUBMISSIONS OF BOTH PARTIES, MAT ERIAL ON RECORD AND ALSO LOWER AUTHORITIES ORDERS. THE LD.AR SUBMITTED THAT INCOME OF ADAYAM RECEIPTS CONSIDERED IN THE REVISE D RETURN AT PAGE NO.22 OF PAPER BOOK WHICH PROVES THAT ADAYAM RECEIP TS ARE SUBJECT TO TAXATION AND THE ASSESSING OFFICER HAS RELIED ON TH E ORIGINAL E-RETURN INSTEAD OF REVISED RETURN FILED DURING THE ASSESSME NT PROCEEDING ON 22.12.2010 AND LD.CIT(A) ALSO CONFIRMED THE SAME. FURTHER, THE LD.AR EXPLAINED THAT SOURCE OF ?2,00,000/- OF INVESTMENT IN M/S. SQNY GRANITES IS GENUINE AND IS REFLECTED IN THE BALANC E SHEET OF M/S. SQNY GRANITES FILED ALONGWITH WRITTEN SUBMISSION BEFORE THE TRIBUNAL. IT IS CLEAR THAT THE ASSESSEE HAS OFFERED INCOME OF ADAYA M RECEIPTS IN THE REVISED RETURN AND ALSO EXPLAINED THE SOURCE OF INV ESTMENT OF ?2,00,000/- IN M/S. SQNY GRANITES AS CAPITAL CONTR IBUTION WHICH IS EVIDENT FROM THE SUBMISSION FILED IN THE HEARING PR OCEEDINGS BUT AS POINTED OUT BY THE LD. DEPARTMENTAL REPRESENTATIVE THAT THIS INFORMATION WAS NOT BROUGHT TO THE KNOWLEDGE AT THE TIME OF ASSESSMENT BEFORE THE ASSESSING OFFICER AND THEREFO RE TO TEST THE ITA NO. 1310/MDS/2015 :- 6 -: GENUINENITY AND CORRECTNESS OF THE CLAIM, THE SA ME HAS TO BE EXAMINED. WE ARE OF THE OPINION THAT THE MATTER RE QUIRES FURTHER ENQUIRY AT THE END OF ASSESSING OFFICER AND THE ISS UE IN DISPUTE IS REMITTED TO THE FILE OF THE ASSESSING OFFICER TO VE RIFY THE MATERIAL SUBMITTED AND PASS FRESH ORDER ACCORDINGLY. THE A SSESSING OFFICER IS DIRECTED TO PROVIDE ADEQUATE OPPORTUNITY OF HEARING TO THE ASSESSEE AND DECIDE THE ISSUE AFRESH. 9. IN THE RESULT, THE APPEAL OF THE ASSESSEE IN ITA NO.1310/MDS/2015 IS PARTLY ALLOWED FOR STATISTICAL PURPOSE. ORDER PRONOUNCED ON FRIDAY, THE 16TH DAY OF OCTOBE R, 2015, AT CHENNAI. SD/- SD/- ( ) (CHANDRA POOJARI) / ACCOUNTANT MEMBER ( . ) (G. PAVAN KUMAR) /JUDICIAL MEMBER / CHENNAI . / DATED:16.10.2015 KV / ' )!+12 32$+ / COPY TO: 1 . %& / APPELLANT 3. 4+ () / CIT(A) 5. 278 )!+! / DR 2. )*%& / RESPONDENT 4. 4+ / CIT 6. 89# : / GF