ACIT CC 47, MUMBAI V. TANGER INVESTMENT P.LTD, MUMBAI

ITA 1412/MUM/2013

• Counselvise Citation: [2014] 120 COUNSELVISE.COM (IT) 8295 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 9 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-12-2014
• Appeal Filed By: Department
• Bench Allotted: E
• Next Hearing Date: 20-11-2014
• Assessment Year: 2005-2006
• Appeal Filed On: 19-02-2013
• Court: TRIBUNAL
• Department Lawyers: IN CIRCUMSTANCES OF CA SE
• Section: 143(3); 132

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL E BENCH, MUMBAI BEFORE SHRI VIJAY PAL RAO, JUDICIAL MEMBER AND SHRI B.R. BASKARAN, ACCOUNTANT MEMBER ITA NO.1412/MUM/2013 ASSESSMENT YEAR: - 2005-06 AC.CC. 47, MUMBAI ROOM NO. 658, 6 TH FLOOR, AAYAKAR BHAVAN, M.K. ROAD, MUMBAI 400 020 VS.` M/S TANAGERINVESTMENT PVT. LTD. 2, THE ANGLE, KRISHNA SANGHI PATH, GAMDEVI MUMBAI 400007. PAN:- AAACR2763E APPELLANT RESPONDENT ORDER PER VIJAY PAL RAO, JM THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER DATED 30.11.2012 OF CIT(A) FOR THE A.Y. 2005-06. THE REVE NUE HAS RAISED FOLLOWING GROUNDS: ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW, THE LD. CIT(A) ERRED IN DELETING ADDITION OF RS. 1,34,11,000/- ON THE GROUND THAT THE ADDITION MADE IN THE HANDS OF THE ASSESSEE IS DISCLOSED AS A DDITIONAL INCOME BY MR. PUJIT AGGARWAL IN APPLICATION BEFORE SETTLEMENT COMMISSIO N WITHOUT APPRECIATING THAT THE ORDER OF THE SETTLEMENT COMMISSION IN THE CASE WAS STILL AWAITED. 2. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE IS A PRIVATE LIMITED COMPANY, ENGAGED IN THE BUSINESS OF INVESTMENT AND INCIDENTA L ACTIVITIES. THE ASSESSEE FILED ITS RETURN OF INCOME ON 28.10.2005, DECLARING TOTAL INCOME OF RS. 82.830/-. A SEARCH & SEIZURE OPERATION U/S. 132 OF THE INCOM E TAX ACT WAS CONDUCTED REVENUE BY SHRI MANJUNATH SWAMY ASSESSEE BY MS. VINITA SHAH DATE OF HEARING 20.11.2014 DATE OF PRONOUNCEMENT 10.12.2014 M/S TANAGERINVESTMENT PVT. LTD. 2 | P A G E ON 22.11.2006 AT THE PREMISES OF THE ORBIT GROUP AN D THE ASSESSEE COMPANY WAS ALSO COVERED. THE ASSESSEE FILED ITS RETURN OF INCOME U/S 153C OF THE INCOME TAX ACT, DECLARING THE SAME TOTAL INCOME OF RS. 82,830/-. THE ASSESSING OFFICER FRAMED THE ASSESSMENT ORDER U/S 153C R.W.S 143(3) ON 30.12.2008 ASSESSING A TOTAL INCOME OF RS. 1,34,93,830/-. WHIL E PASSING THE ASSESSMENT ORDER, THE ASSESSING OFFICER HAS MADE AN ADDITION OF RS. 1,34,11,000/- AS UNDISCLOSED INCOME BY TREATING ALL THE CREDIT ENTRI ES OF A BANK ACCOUNT STATEMENT, WHICH WAS FOUND AND SEIZED DURING THE SE ARCH & SEIZURE OPERATION. THE ASSESSEE CHALLENGED THE ACTION OF ASSESSING OFF ICER BEFORE THE CIT(A). THE CIT(A) DELETED THE ADDITION MADE BY ASSESSING OFFIC ER ON THE GROUND THAT THE ASSESSEE HAS ALREADY APPROACHED TO THE SETTLEMENT C OMMISSION WHO HAS ADMITTED THE APPLICATION OF THE ASSESSEE IN PARA 8. 1 AS UNDER:- IT IS CLEAR FROM THE REPORT OF THE ASSESSING OFFI CER THAT THE ADDITION MADE IN THE HANDS OF THE APPELLANT IS ALSO DISCLOSED AS AN ADDI TIONAL INCOME BY MR. PUJIT AGARWAL, WHOSE APPLICATION IS ADMITTED BY THE HONB LE SETTLEMENT COMMISSION AND SUCH A DISCLOSURE HAS NOT BEEN OBJECTED TO OR DISPUTED BY THE DEPARTMENT. THEREFORE, THE ADDITION MADE IN THE HANDS OF THE AP PELLANT AMOUNTS TO A DOUBLE ADDITION IN THE SAME GROUP OF CASES, ONE IN THE HAN DS OF MR. PUJIT AGGARWAL AND ANOTHER IN THE HANDS OF THE APPELLANT. HAVING REGAR D TO THE DISCLOSURE OF THE SAME AMOUNT BY MR. PUJIT AGARWAL BEFORE HONBLE SET TLEMENT COMMISSION, ADDITION OF AN IDENTICAL AMOUNT IN THE HANDS OF THE APPELLANT IS FOUND TO BE UNWARRANTED AND THEREFORE, THE ADDITION MADE IS HER EBY DELETED. 3. WE HAVE HEARD THE LD. DR AS WELL AS LD. AR AND C ONSIDERED THE RELEVANT MATERIAL ON RECORD. THERE IS NO DISPUTE THAT THE AS SESSEE HAS APPROACHED SETTLEMENT COMMISSION REGARDING THE UNDISCLOSED INCOME IN QUES TION. WE FIND THAT AN IDENTICAL ISSUE CAME BEFORE THIS TRIBUNAL IN THE CASE OF SHRI PUJIT AGARWAL, THE DIRECTOR OF THE ASSESSEE COMPANY, WHEREIN, THE TRIBUNAL HAD RESTOR ED THE MATTER BACK TO THE FILE OF ASSESSING OFFICER VIDE ORDER DATED 18.05.2009 IN IT A NO. 2365/MUM/2009 WITH THE DIRECTION TO DECIDE THE ISSUE AFRESH DEPENDING ON T HE FINAL OUTCOME OF THE PROCEEDINGS BEFORE THE SETTLEMENT COMMISSIONER. AC CORDINGLY, IN THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN THE INTEREST OF JU STICE, WE SET ASIDE THIS ISSUE TO THE M/S TANAGERINVESTMENT PVT. LTD. 3 | P A G E RECORD OF ASSESSING OFFICER TO DECIDE THE ISSUE AFT ER THE FINAL OUTCOME OF THE PROCEEDINGS BEFORE THE SETTLEMENT COMMISSION. 4. IN THE RESULT APPEAL OF THE REVENUE IS ALLOWED F OR STATISTICAL PURPOSE. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 10 TH DAY OF DECEMBER 2014. SD/- SD/- ( B.R.BASKARAN ) (VIJAY PAL RAO) (ACCOUNTANT MEMBER/ YS[KK LNL; YS[KK LNL; YS[KK LNL; YS[KK LNL; ) (JUDICIAL MEMBER/ U;KF;D LNL; U;KF;D LNL; U;KF;D LNL; U;KF;D LNL; ) MUMBAI DATED 10-12-2014 SKS SR. P.S, COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CONCERNED CIT(A) 4. THE CONCERNED CIT 5. THE DR, E BENCH, ITAT, MUMBAI BY ORDER ASSISTANT REGISTRAR INCOME TAX APPELLATE TRIBUNAL, MUMBAI BENCHES, MUMBAI