Sri.E.C.Antony, Thrissur V. DCIT, Trichur

ITA 148/COCH/2014

• Counselvise Citation: [2015] 120 COUNSELVISE.COM (IT) 8791 (ITAT-COCHIN)
• Duration Of Justice: 10 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-02-2015
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 29-12-2014
• Assessment Year: 2009-2010
• Appeal Filed On: 31-03-2014
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: K K JOHN
• Assessee Lawyers: C B M WARRIER
• Keywords: Unexplained investment
• Section: 147

Judgement Text

1 ITA NO. 148/COCH/2014 IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH, COCHIN BEFORE SHRI N.R.S. GANESAN (JM) AND SHRI CHANDRA PO OJARI (AM) I.T.A NO. 148/COCH/2014 (ASSESSMENT YEAR 2009-10) SHRI E.C. ANTONY VS DY.CIT, CENT.CIR. ELUVATHINGAL HOUSE THRISSUR KODANOOR, THRISSUR PAN : AGWPA4424A (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI CBM WARRIER RESPONDENT BY : SHRI K.K. JOHN DATE OF HEARING : 29-12-2014 DATE OF PRONOUNCEMENT : 06-02-2015 O R D E R PER N.R.S. GANESAN (JM) THIS APPEAL OF THE ASSESSEE IS DIRECTED AGAINST TH E ORDER OF THE CIT(A)-I, KOCHI DATED 03-12-2013 AND PERTAINS TO AS SESSMENT YEAR 2009- 10. 2. SHRI CBM WARRIER, THE LD.REPRESENTATIVE FOR THE ASSESSEE SUBMITTED THAT THE ONLY ISSUE ARISES FOR CONSIDERATION IN THI S APPEAL IS WITH REGARD TO ADDITION OF THE SO-CALLED UNEXPLAINED INVESTMENT IN THE LANDED PROPERTY TO THE EXTENT OF RS.24,77,697. THE LD.REPRESENTATIVE SUBMITTED THAT THERE WAS 2 ITA NO. 148/COCH/2014 A SEARCH IN THE PREMISES OF ST. ANTONYS TIMBER DEP OT. CONSEQUENT TO THE SEARCH NOTICE U/S 147 WAS ISSUED TO THE ASSESSEE. ACCORDING TO THE LD.REPRESENTATIVE, THE SO-CALLED SEIZED DOCUMENT SJ -III DOES NOT CONTAIN THE NAME OF THE ASSESSEE. ACCORDING TO THE LD.REPR ESENTATIVE, THE ASSESSEE HAS PURCHASED PART OF THE LAND ALONG WITH THE PARTNERS OF ST. ANTONYS TIMBER DEPOT. NO MATERIAL WAS FOUND DURIN G THE COURSE OF SEARCH OPERATION AGAINST THE ASSESSEE. THE ASSESSI NG OFFICER, HOWEVER, FOUND THAT THE ASSESSEE HAS PURCHASED A PORTION OF THE LAND. THEREFORE, THE ASSESSEE MIGHT HAVE INVESTED UNEXPLAINED INVEST MENT. ACCORDING TO THE LD.REPRESENTATIVE, IN THE ABSENCE OF ANY CORROB ORATIVE MATERIAL TO SHOW THAT THE ASSESSEE HAS INVESTED ANY MONEY OVER AND A BOVE THE VALUE SHOWN IN THE REGISTERED DOCUMENT, THERE CANNOT BE A NY ADDITION. IN THE ABSENCE OF ANY REFERENCE IN THE SEIZED MATERIAL SJ- III AND REFERENCE ABOUT THE NAME OF THE ASSESSEE, ACCORDING TO THE LD.REPRE SENTATIVE, THERE CANNOT BE ANY ADDITION IN THE HANDS OF THE PRESENT ASSESSE E. THEREFORE, THE CIT(A) IS NOT JUSTIFIED IN CONFIRMING THE ADDITION OF RS.24,77,697. 3. ON THE CONTRARY, SHRI K.K. JOHN, THE LD.DR SUBMI TTED THAT THERE WAS A SEARCH IN THE PREMISES OF ST. ANTONYS TIMBER DEP OT AND THE SEIZED DOCUMENT SJ-III SHOWS THAT THE VALUE OF THE LAND I S RS.56,900 PER CENT. DURING THE COURSE OF EXAMINATION THE ASSESSEE CONFI RMED THAT HE PURCHASED PORTION OF THE LAND ALONG WITH THE PARTNE RS OF ST. ANTONYS 3 ITA NO. 148/COCH/2014 TIMBER DEPOT. HOWEVER, DENIED PAYMENT OF ON-MONEY OVER AND ABOVE THE SALE CONSIDERATION DISCLOSED IN THE SALE DEED. THE MANAGING DIRECTOR OF ST. ANTONYS TIMBER DEPOT WAS EXAMINED U/S 132(4) O F THE ACT. SHRI BABU JOHN, THE MANAGING DIRECTOR REFERRING TO THE SEIZED MATERIAL, COPY OF WHICH IS FILED BY THE ASSESSEE AT PAGE 16 OF THE PAPER BO OK CONFIRMED THAT THE SALE CONSIDERATION WAS RS.56,900 PER CENT. AN OPPO RTUNITY WAS GIVEN TO THE ASSESSEE TO CROSS EXAMINE SHRI BABU JOHN. HOWE VER, THE ASSESSEE HAS NOT AVAILED THE OPPORTUNITY GIVEN BY THE ASSESS ING OFFICER TO CROSS EXAMINE SHRI BABU JOHN. SINCE THE ASSESSEE PURCHAS ED PORTION OF THE LAND ALONGWITH ST. ANTONYS TIMBER DEPOT AND ITS PA RTNER, AND THE MATERIAL FOUND DURING THE COURSE OF SEARCH OPERATION SHOWS T HE VALUE OF THE LAND AT RS.56,900 PER CENT AND THE ASSESSEE FAILED TO CROSS EXAMINE SHRI BABU JOHN, THE ASSESSING OFFICER FOUND THAT THE ASSESSEE HAS PAID ON-MONEY OVER AND ABOVE THE SALE CONSIDERATION DISCLOSED IN THE SALE DEED. ACCORDING TO THE LD.DR, SINCE THE MATERIAL FOUND ON RECORD CLEARLY SHOWS THAT THE LAND WAS SOLD FOR A SALE CONSIDERATION OF RS.56,900 PER CENT, THE CIT(A) HAS RIGHTLY CONFIRMED THE ADDITION. REFERRI NG TO THE DECISION OF THIS TRIBUNAL IN SHRI A A DAVIS IN ITA NOS 316 318/COC H/2012 ORDER DATED 27-12-2013, THE LD.DR SUBMITTED THAT THIS TRIBUNAL CONFIRMED THE SALE CONSIDERATION OF THE VERY SAME LAND AT RS.56,900 PE R CENT ON THE BASIS OF THE VERY SAME SEIZED MATERIAL SJ-III. THEREFORE, A CCORDING TO THE LD.DR, THE CIT(A) HAS RIGHTLY CONFIRMED THE ADDITION. 4 ITA NO. 148/COCH/2014 4. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS ON EITH ER SIDE AND ALSO PERUSED THE MATERIAL AVAILABLE ON RECORD. THE ONLY ISSUE ARISES FOR CONSIDERATION IS REGARDING ADDITION OF RS.24,77,697 . THE MAIN CONTENTION OF THE ASSESSEE IS THAT THE MATERIAL FOUND DURING T HE COURSE OF SEARCH OPERATION IN THE PREMISES OF ST. ANTONYS TIMBER DE POT DOES NOT CONTAIN THE NAME OF THE ASSESSEE. IT IS NOT IN DISPUTE THA T THE ASSESSEE HAS PURCHASED A PORTION OF THE LAND ALONG WITH ST. ANTO NYS TIMBER DEPOT AND ITS PARTNER. ON THE BASIS OF THE SEIZED MATERIAL S J-III, THIS TRIBUNAL, IN THE CASE OF A.A. DAVIS (SUPRA), ONE OF THE PARTNERS OF ST. ANTONYS TIMBER DEPOT CONFIRMED THE SALE CONSIDERATION OF THE VERY SAME LAND AT RS.56,900 PER CENT. SHRI BABU JOHN WAS EXAMINED U/S 132(4), WHO ALSO CONFIRMED THE SALE CONSIDERATION AT RS.56,900 PER CENT. TO C ONTROVERT THE SEIZED DOCUMENT SJ-III FROM SHRI BABU JOHN, THE ASSESSING OFFICER OFFERED AN OPPORTUNITY TO THE ASSESSEE; HOWEVER, THE ASSESSEE HAS NOT AVAILED THE OPPORTUNITY GRANTED BY THE ASSESSING OFFICER. THE FACT REMAINS IS THAT THE SEIZED MATERIAL SJ-III DISCLOSES THE SALE PRICE OF THE LAND AT RS.56,900 PER CENT. THIS WAS ALSO FURTHER CONFIRMED BY THE MANAG ING DIRECTOR OF ST. ANTONYS TIMBER DEPOT, SHRI BABU JOHN. THE ASSESSE E HAS NOT CONTROVERTED THE MATERIAL AVAILABLE ON RECORD BY CR OSS EXAMINE SHRI BABU JOHN EVEN THOUGH AN OPPORTUNITY WAS GIVEN. IN THE CASE OF SHRI A.A. DAVIS (SUPRA), THIS TRIBUNAL CONFIRMED THAT THE SALE CONS IDERATION WAS RS.56,900 PER CENT BY AN ORDER DATED 27-12-2013. IN THESE CI RCUMSTANCES, THIS 5 ITA NO. 148/COCH/2014 TRIBUNAL IS OF THE CONSIDERED OPINION THAT THE CIT( A) HAS RIGHTLY CONFIRMED THE ADDITION MADE BY THE ASSESSING OFFICER TO THE E XTENT OF RS.24,77,697. THIS TRIBUNAL DO NOT FIND ANY INFIRMITY IN THE ORDE R OF THE LOWER AUTHORITY. ACCORDINGLY, THE SAME IS CONFIRMED. 5. IN THE RESULT, APPEAL OF THE ASSESSEE IS DISMISS ED. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 06 TH FEBRUARY, 2015. SD/- SD/- (CHANDRA POOJARI) (N.R.S. GANESAN) ACCOUNTANT MEMBER JUDICIAL MEMBER COCHIN, DT : 06 TH FEBRUARY, 2015 PK/- COPY TO: 1. E.C. ANTONY, ELUVANTHINGAL HOUSE, KODANOOR, THRI SSUR 2. THE DY.CIT, CNET.CIR., THRISSUR 3. THE COMMISSIONER OF INCOME-TAX, KOCHI 4. THE COMMISSIONER OF INCOME-TAX(A)-I, KOCHI 5. THE DR (TRUE COPY) BY ORDER ASSTT. REGISTRAR, INCOME-TAX APPELLATE TRIBUNAL, COCHIN BENCH