Shri Sharwan Kumar Sarda, V. DCIT,

ITA 135/RAN/2014

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 85462 (ITAT-RANCHI)
• Duration Of Justice: 7 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-12-2014
• Appeal Filed By: Assessee
• Bench Allotted: SMC
• Assessment Year: 2005-2006
• Appeal Filed On: 07-04-2014
• Court: TRIBUNAL
• Department Lawyers: S K PODDAR; M K CHOUDHARY S LD
• Assessee Lawyers: DEEPAK ROSHAN SENIOR
• Keywords: Unexplained investment; Search and seizure
• Section: 132

Judgement Text

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 . 13 5 /RAN/2014 A.Y 200 5 - 06 S HRI SHARWAN KR. SHARDA VS. DY. CIT, C. - 1, RANCHI PAN: ACBPS9524J [ APPELLANT ] [ RESPONDENT ] FOR THE RESPONDENT /ASSESSEE : S/SHRI S.K PODDAR & M.K.CHOUDHARY, ADVOCATES, LD.AR FOR THE APPELLANT/DEPARTMENT : SHRI DEEPAK ROSHAN, SENIOR S.C/LD.DR DATE OF H EARING : 0 3 - 12 - 2014 DATE OF PRONOUNCEMENT: 0 3 - 12 - 2014 ORDER SHRI B.R. BASKARAN, ACCOUNTANT MEMBER : TH IS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER DATED 2 5 - 02 - 2014 PASSED BY THE LD.C IT(A), JAMSHEDPUR AND IT RELATES TO ASSESSMENT YEAR 200 5 - 06 . 2. WE HAVE HEARD THE PARTIES AND PERUSED THE RECORD. WE NOTICE THAT THE DEPARTMENT HAD CARRIED OUT A SEARCH AND SEIZURE OPERATION U/S. 132 OF THE ACT AT THE RESIDENCE OF THE ASSESSE E ON 16 - 02 - 2010. DURING THE COURSE OF SEARCH OPERATION , THE DEPARTMENT FOUND CERTIFICATES OF KISHAN VIKAS PATRA [K V P] FOR AN AMOUNT OF RS. 1 LAKH AND THE SAME WAS SEEN PURCHASED IN THE NA ME OF ASSESSEE S MINOR CHILDREN NAMED AYUSH KUMAR SHARDA AND ANJU KUM AR SHARDA. THE ASSESSEE SUBMITTED THAT THE INVESTMENT IN KVPS 2 ITA NO . 135 /RAN/2014 SRI SHARWAM KR SHARDA WAS MADE BY HIS WIFE IN THE NAME OF SAID TWO MINOR SONS AND THE SAME W A S DECLARED IN THE I.T RETURN FILED BY HER FOR THE ASSESSMENT YEAR 2005 - 06. HOWEVER, THE ASSESSEE COULD NOT FURNISH THE B ALANCE SHEET , IF ANY, ALONG WITH THE RETURN OF INCOME OF HIS WIFE, SMT. SHIMA SHARDA FOR THE ASSESSMENT YEAR 2005 - 06 . ACCORDINGLY THE ASSESSING OFFICER TOOK THE VIEW THAT THE ASSESSEE COULD NOT FURNISH PROPER EXPLANAT ION WITH REGARD TO THE SAID KVP AND H ENCE ASSESSED THE SAME AS UNEXPLAINED INVESTMENT IN THE HANDS OF THE ASSESSEE . THE LD.CIT(A) ALSO CONFIRMED THE SAME. 3. THE LD.AR APPEARING ON BEHALF OF THE ASSESSEE SUBMITTED THAT THE IMPUGNED INVESTMENT WAS MADE BY THE ASSESSEE S WIFE OUT OF HER SOURC E. HENCE, THE TAX AUTHORITIES ARE NOT JUSTIFIED IN ASSESSING THE SAME IN THE HANDS OF THE ASSESSEE. WE NOTICE THAT THE ASSESSEE HAS BEEN CONSISTENTLY CLAIMING THAT THE INVESTMENT OF RS. 1 LAKH WAS MADE BY HIS WIFE . HOWEVER, THE TAX AUTHORITIES HAVE REJEC TED THE SAID CLAIM FOR WANT OF EVIDENCE. BEFORE US, THE LD A.R ALSO SUBMITTED THAT THE INTEREST EARNED FROM KVP W A S DULY DISCLOSED IN THE RETURN OF INCOME FILED BY ASSESSEE S WIFE. FURTHER , WE NOTICE THAT THE ASSESSEE HAS SUBMITTED THAT HIS WIFE HAS FURN ISHED THE I.T RETURN FOR AY 2009 - 10 ALONG WITH BALANCE SHEET AND THE IMPUGNED INVESTMENT WAS DULY DISCLOSED THEREIN . UNDER THE SE SET OF FACTS, WE ARE OF THE VIEW THAT THE TAX AUTHORITIES ARE NOT JUSTIFIED IN ASSESSING THE AMOUNT OF RS. 1 LAKH RELATING TO INVESTMENT MADE IN KVP IN THE HANDS OF THE ASSESSEE. ACCORDINGLY, WE SET ASIDE THE ORDER OF THE LD.CIT(A) ON THIS ISSUE AND DIRECT THE ASSESSING OFFICER TO DELETE THIS ADDITION. 3 ITA NO . 135 /RAN/2014 SRI SHARWAM KR SHARDA 4 . IN THE RESULT, THE APPEAL FILED BY ASSESSEE IS ALLOWED. PRONOUNCED ACCORDINGLY ON 0 3 - 12 - 2014 SD/ - SD/ - [ H.L. KARWA ] [ B.R. BASKARAN ] PRESIDENT ACCOUN TANT MEMBER DT. 0 3 - 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 4 ITA NO . 135 /RAN/2014 SRI SHARWAM KR SHARDA 1. DATE OF DICTATION ............. 03 - 12= - 2014 . ORDER FINALIZED/ MODIFIED BY THE MEMBER IN HIS LAPTOP ........ DICTATION TAKEN ON 3 - 12 - 14 ............. 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER ........................OTHER MEMBER ............................... 3. DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR. P.S./P.S. ..................... 4. DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE DICTATING MEMBER FOR PRONOUNCEMENT............... ................... 0 3 - 12 - 2014 ................................................... 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. DA TE 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 ..............................................................