SHRI SUNIL KUMAR PANJWANI, Dewas V. THE ITO, Dewas

ITA 142/IND/2015

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 99162 (ITAT-INDORE)
• Duration Of Justice: 8 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-12-2015
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2007-2008
• Appeal Filed On: 04-03-2015
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: R A VERMA
• Assessee Lawyers: S S DESHPANDE; K RAMESHWAR
• Keywords: Business income; Loose papers
• Section: 133A

Judgement Text

SUNIL KUMAR ITA NO. 142/IND/2015 1 IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH, INDORE BEFORE SHRI B.C. MEENA, HONBLE ACCOUNTANT MEMBER ITA NO. 142/IND/2015 A.Y.2007-08 SUNIL KUMAR PANJWANI DEWAS ::: APPELLANT VS INCOME TAX OFFICER DEWAS ::: RESPONDENT APPELLANT BY SHRI S.S. DESHPANDE AND SHRI K. RAMESHWAR RESPONDENT BY SHRI R.A. VERMA DATE OF HEARING 17.11.2015 DATE OF PRONOUNCEMENT 1.12.2015 O R D E R PER SHRI B.C. MEENA, AM THIS APPEAL FILED BY THE ASSESSEE EMANATES FROM THE ORDER OF THE LEARNED CIT(A), UJJAIN, DATED 31.12.2 014. SUNIL KUMAR ITA NO. 142/IND/2015 2 2. THE ASSESSEE IS AN INDIVIDIAUL DOING RETAIL BUSINES S OF PAN MASALA AND KIRANA GOODS. SURVEY U/S 133A WAS CARRIED OUT ON 16.10.2006 AT THE BUSINESS PREMISES OF THE ASSESSEE. DURING THE SURVEY IT IS FOUND THAT THE BOO KS OF ACCOUNTS WERE WRITTEN UP TO 30.9.2006. CERTAIN LOOSE PAPERS AND PURCHASE BILLS WERE FOUND DURING THE COURS E OF SURVEY. A STATEMENT ON OATH WAS RECORDED AND THE ASSESS EE SURRENDERED AN AMOUNT OF RS. 8 LACS ON ACCOUNT OF VARIO US IRREGULARITIES FOUND IN THE BOOKS OF ACCOUNTS. HOWEV ER, THE ASSESSEE HAS NOT OFFERED THE INCOME IN THE RETURN OF INCOME FILED. THE ASSESSING OFFICER ISSUED A SHOW CAU SE NOTICE TO THE ASSESSEE AND MADE AN ADDITION OF RS. 3,02,720/- ON ACCOUNT OF CASH SURRENDERED DURING SURV EY AND RS. 5,62,750/- ON ACCOUNT OF ESTIMATED BUSINESS INCOME. THE LEARNED CIT(A) CONFIRMED THE ADDITION OF RS. 3,02,720/- AND PARTLY CONFIRMED THE ADDITION OF RS. 4,97,280/- OUT OF RS. 5,62,150/-. THUS, THE APPEAL OF THE SUNIL KUMAR ITA NO. 142/IND/2015 3 ASSESSEE WAS PARTLY ALLOWED. NOW THE ASSESSEE IS IN APPEAL BEFORE ME ON THE FOLLOWING GROUNDS :- 1. THE LD. CIT(A) HAS ERRED IN MAINTAINING THE ADDITION OF RS. 8,00,000/- BEING THE AMOUNT DECLARED DURING THE COURSE OF SURVEY. 1. IT WAS PROVED BEFORE THE LD. A.O. AND THE LD. CIT( A) THAT THE CASH DECLARED WAS APPEARING IN THE CASH BOOK AND THE SAME HAS NOT BEEN CHALLENGED. THE LESSER CASH BALANCE FOUND CANNOT BE ADDED AS AN INCOME AND THE SURRENDER WAS TOTALLY UNWARRANTED FOR AND ON THAT BASIS THE ADDITIONS MADE WERE ILLEGAL AND BAD IN LAW. 2. THE LD. CIT(A) HAS ERRED IN SUSTAINING THE ADDITION ONLY ON THE BASIS OF THE ADDITIONAL INCOME OFFERED IN THE STATEMENT TAKEN DURING THE COURSE OF SURVEY. NO DISCREPANCIES WERE FOUND IN THE BOOKS SUNIL KUMAR ITA NO. 142/IND/2015 4 WHICH WERE PRODUCED DURING THE COURSE OF THE ASSESSMENT AND AS SUCH THE ADDITIONS MAINTAINED ON THE BASIS OF STATEMENT RECORDED U/S 133A DESERVES TO BE QUASHED. 3. THE ASSESSEE PRAYS TO ALTER, AMEND OR ADD ANY OF THE GROUNDS OF APPEAL. 3. I HAVE HEARD BOTH THE SIDES. I HAVE ALSO CONSIDERED VARIOUS CASE LAWS RELIED UPON. DURING THE SURVEY OPE RATION THE ASSESSEE HAS SURRENDERED AN AMOUNT OF RS. 8 LACS AS ADDITIONAL INCOME ON THE BASIS OF VARIOUS IRREGULARITIES IN BOOKS OF ACCOUNTS AND DISCREPANCIES FOUND IN BOOKS OF ACCOUNTS. THE ASSESSEE HAS NEVER RETRACTED FROM THE SURRENDERED INCOME EXCEPT NOT DISCLOSING THE SAME IN THE RETURN OF INCOME. THE ADMISSION OF THE ASSESSEE WAS B ASED ON VARIOUS DISCREPANCIES NOTED DURING SURVEY OPERATION U/S 133A OF THE ACT AND SUCH ADMISSIONS ARE GOOD PIECE OF EVIDENCE IN ABSENCE OF ANY CONTRARY MATERIAL. THIS SUNIL KUMAR ITA NO. 142/IND/2015 5 STATEMENT WAS VOLUNTARILY AND WITHOUT ANY COERCION, THRE AT AND INFLUENCE. THE ASSESSEE HAS FAILED TO DISCHARGE THE BURDEN BY GIVING POSITIVE EVIDENCE THAT THE SURRENDE R MADE AND THE STATEMENT RECORDED U/S 133A WAS NOT CORRECT. CONSIDERING ALL ASPECTS OF THE CASE AND VARIOUS FACTS RECORDED BY THE LEARNED CIT(A), I FIND NO MERIT IN THIS APPEAL OF THE ASSESSEE. 4. IN THE RESULT, THE APPEAL OF THE ASSESSEE STANDS DISMISSED. PRONOUNCED IN OPEN COURT ON IST DECEMBER, 2015 SD/- (B.C. MEENA) ACCOUNTANT MEMBER IST DECEMBER, 2015 DN/- SUNIL KUMAR ITA NO. 142/IND/2015 6