ACIT, CHENNAI V. Shri S.Rajesh Kumar, Vellore

ITA 1345/CHNY/2012

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 81125 (ITAT-CHENNAI)
• Duration Of Justice: 2 year(s) 2 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-08-2014
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Next Hearing Date: 31-07-2014
• Assessment Year: 2007-2008
• Appeal Filed On: 18-06-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DURGESH SUMROTT
• Assessee Lawyers: D ANAND
• Keywords: Unexplained investment
• Section: 132

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH, CHENNAI . , !' # $# #'% , & !' ' BEFORE SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER AND SHRI VIKAS AWASTHY, JUDICIAL MEMBER ./ ITA NO. 1345/MDS/2012 & ) #*) / ASSESSMENT YEAR : 2007-08 THE ASSISTANT COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE IV(1), CHENNAI - 600 034. V. SHRI S. RAJESH KUMAR, NO.4/22, BAZAAR STREET, VIRINJIPURAM, VELLORE 632 104. PAN : AAHPR 7339 C (%,/ APPELLANT) (-.%,/ RESPONDENT) %, / 0 / APPELLANT BY : SHRI DURGESH SUMROTT, CIT -.%, / 0 / RESPONDENT BY : SHRI D. ANAND, ADVOCATE 1 # / 2 / DATE OF HEARING : 31 ST JULY, 2014 3* / 2 / DATE OF PRONOUNCEMENT : 18 TH AUGUST, 2014 / O R D E R PER VIKAS AWASTHY, JUDICIAL MEMBER: THE APPEAL HAS BEEN FILED BY REVENUE AGAINST THE ORDER OF COMMISSIONER OF INCOME TAX (APPEALS)-I, CHENNAI, DA TED 2 I.T.A. NO. 1345/MDS/12 26.03.2012 RELEVANT TO THE ASSESSMENT YEAR 2007-08. THE REVENUE HAS ASSAILED THE FINDINGS OF CIT(APPEALS) I N DELETING THE ADDITION MADE TOWARDS UNACCOUNTED INVESTMENT IN STO CK-IN-TRADE OF SILVER VALUING ` 13,36,284/-. 2. THE FACTS AS EMANATING FROM RECORDS ARE: A SEAR CH UNDER SECTION 132 OF THE INCOME-TAX ACT, 1961 WAS CARRIED OUT AT BUSINESS-CUM-RESIDENCE OF SHRI SAJJANRAJ, FATHER OF THE ASSESSEE, ON 29.8.2006. DURING THE COURSE OF SEARCH, APART F ROM OTHER MATERIALS, SILVERWARE WEIGHING 74.238 KGS WAS FOUND IN EXCESS. THE TOTAL PHYSICAL STOCK WAS FOUND TO BE 173.996 KG S, WHEREAS, STOCK AS PER THE BOOKS WAS 99.758 KGS. THUS THERE WAS EXCESS STOCK OF 74.238 KGS. THE ASSESSING OFFICER VALUED THE EXCESS STOCK AT ` 13,36,284/- AND ADDED THE SAME TO THE INCOME OF ASSESSEE FOR ASSESSMENT YEAR 2007-08. AGGRIEVED BY THE ASSESSMENT ORDER DATED 30.12.200 8, THE ASSESSEE PREFERRED AN APPEAL BEFORE THE CIT(APPEALS ). THE CIT(APPEALS), VIDE IMPUGNED ORDER HELD, THAT THE AS SESSEE HAS BEEN ABLE TO EXPLAIN ALLEGED EXCESS STOCK AND DELET ED THE ADDITION. NOW, THE REVENUE HAS COME IN APPEAL BEFORE THE TR IBUNAL ASSAILING THE FINDINGS OF CIT(APPEALS). 3 I.T.A. NO. 1345/MDS/12 3. SHRI DURGESH SUMROTT, CIT, APPEARING FOR THE REV ENUE, STRONGLY SUPPORTED THE ORDER OF ASSESSING OFFICER. 4. SHRI D. ANAND, ADVOCATE, APPEARING ON BEHALF OF ASSESSEE, SUPPORTED THE ORDER OF CIT(APPEALS) AND PRAYED FOR DISMISSING THE APPEAL OF REVENUE. 5. WE HAVE HEARD THE SUBMISSIONS MADE BY THE REPRESENTATIVES OF BOTH THE PARTIES AND HAVE PERUSE D THE ORDERS OF AUTHORITIES BELOW. THE CIT(APPEALS) IN THE IMPUGNE D ORDER HAS CATEGORICALLY MENTIONED THAT THE ALLEGED EXCESS STO CK WEIGHING 74.238 KGS REPRESENTS THE PERSONAL EFFECTS OF THE A SSESSEE. THE LD. A.R. OF ASSESSEE HAD FURNISHED COPIES OF RETURN S OF WEALTH BEFORE CIT(APPEALS), WHEREIN, SILVER ARTICLES WEIGH ING 73.383 KGS WERE SHOWN IN THE HANDS OF THE FAMILY MEMBERS. SIN CE, THE ASSESSEE HAD OFFERED SILVERWARE IN HIS WEALTH TAX R ETURNS PRIOR TO SEARCH, THERE IS NO REASON TO DISBELIEVE THE EXPLAN ATION OFFERED BY THE ASSESSEE. WE DO NOT FIND ANY INFIRMITY IN THE FINDINGS OF CIT(APPEALS). 6. IN RESULT, THE APPEAL OF REVENUE IS DISMISSED BE ING DEVOID OF MERITS. 4 I.T.A. NO. 1345/MDS/12 ORDER PRONOUNCED ON MONDAY, THE 18 TH OF AUGUST, 2014 AT CHENNAI. SD/- SD/- ( . ) ( $# #'% ) (A. MOHAN ALANKAMONY) (VIKAS AWASTHY) !' /ACCOUNTANT MEMBER & !' /JUDICIAL MEMBER /CHENNAI, D! /DATED, THE 18 TH AUGUST, 2014. KRI. !E / -&2F$ G$*2 /COPY TO: 1. %, /APPELLANT 2. -.%, /RESPONDENT 3. 1 H2 () /CIT(A)-I, CHENNAI. 4. 1 H2 /CIT, CENTRAL-I, CHENNAI. 5. $#IJ -&2& /DR 6. J) K /GF.