Palace Infratech Pvt Ltd., Ludhiana V. The Dy Commissioner of Income Tax, Ludhiana

ITA 154/CHANDI/2017

• Counselvise Citation: [2019] 112 COUNSELVISE.COM (IT) 6519 (ITAT-CHANDIGARH)
• Duration Of Justice: 2 year(s) 1 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-02-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: Not Allotted
• Next Hearing Date: 26-09-2018
• Assessment Year: 2012-2013
• Appeal Filed On: 20-01-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ASHISH GUPTA
• Keywords: Income from undisclosed sources; Document seized; Documents seized

Judgement Text

, , , IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH, B, CHANDIGARH , ! '# $ % & '# , () BEFORE SHRI SANJAY GARG, JUDICIAL MEMBER AND MS. ANNAPURNA GUPTA, ACCOUNTANT MEMBER ./ ITA NO. 154/CHD/2017 / ASSESSMENT YEAR : 2012-13 PALACE INFRATECH PVT. LTD., B-XIX-546, COLLEGE ROAD, CIVIL LINES, LUDHIANA THE DCIT, CENTRAL CIRCLE-III, LUDHIANA ./PAN NO: AAGCP3488G / APPELLANT /RESPONDENT ! /ASSESSEE BY : SHRI ASHWANI KUMAR, CA - PROXY FOR SHRI TEJ MOHAN SINGH, ADVOCATE ' ! / REVENUE BY : SHRI ASHISH GUPTA, CIT DR # $ % /DATE OF HEARING : 31.01.2019 &'() % / DATE OF PRONOUNCEMENT : 26.02.2019 (* / ORDER PER SANJAY GARG, JUDICIAL MEMBER: THE PRESENT APPEAL HAS BEEN PREFERRED BY THE ASSESS EE AGAINST THE ORDER DATED 18.11.2016 OF THE COMMISSIONER OF INCOM E TAX (APPEALS )- 5, LUDHIANA [HEREINAFTER REFERRED TO AS CIT(A)] AGIT ATING THE ADDITION OF RS. 5,30,000/- MADE BY THE ASSESSING OFFICER INTO THE I NCOME OF THE ASSESSEE. 2. THE BRIEF FACTS OF THE CASE ARE THAT DURING THE COURSE OF SEARCH AT THE PREMISES OF THE ASSESSEE, THE ASSESSEE WAS FOUND TO HAVE INCURRED AFORESAID EXPENDITURE ON ITS ONGOING CONSTRUCTION / REAL ESTA TE PROJECT. HOWEVER, THE SAID EXPENDITURE WAS NOT RECORDED IN THE BOOKS OF A CCOUNT. ITA NO. 154/CHD/2017- PALACE INFRATECH PVT. LTD, LUDHIANA 2 3. ON BEING ASKED TO EXPLAIN, THE ASSESSEE SUBMITTE D THAT THE SOURCE OF SUCH EXPENDITURE WAS FROM THE BOOKING / ADVANCES RE CEIVED FROM THE CUSTOMERS. IT HAS ALSO BEEN SUBMITTED THAT THE ENTR IES IN THE SEIZED DOCUMENTS RELATING TO THE AFORESAID EXPENDITURE WAS PERTAINING TO TWO YEARS I.E. 2011-12 & 2012-13 AND THAT ONLY A SUM OF RS. 1,18,000/- WAS RELATABLE TO THE FINANCIAL YEAR RELEVANT TO ASSESSM ENT YEAR UNDER CONSIDERATION. IT HAS ALSO BEEN EXPLAINED THAT THE ASSESSEE HAD ALREADY SURRENDERED A SUM OF RS. 1.90 CRORES IN HIS STATEME NT RECORDED OF SHRI RAKESH JAIN, DIRECTOR OF THE ASSESSEE COMPANY AND T HAT THE AFORESAID UNACCOUNTED INCOME WILL BE COVERED UNDER THE SAID S URRENDER OF RS. 1.90 CRORES. 4. THE LD. DR HAS RELIED UPON THE FINDINGS OF THE L OWER AUTHORITIES. 5. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS AND HAV E ALSO PERUSED THE MATERIALS AVAILABLE ON RECORD. THE AFORESAID ADDIT ION OF RS. 5,30,000/- HAS BEEN MADE ON THE BASIS OF SEIZED DOCUMENTS SHOWING CERTAIN EXPENDITURE INCURRED BY THE ASSESSEE. THERE IS NO REBUTTAL TO T HE FACT ON THE FILE THAT THE DIRECTOR OF THE COMPANY HAS SURRENDERED A SUM OF RS . 1.90 CORES AS ADDITIONAL INCOME COVERING THE ASSESSEE COMPANY AS WELL AS OTHER COMPANY. THERE IS NO CONTENTION OR EVIDENCE BROUGHT ON RECORD THAT THE SAID EXPENDITURE OF RS. 1.90 CRORES WAS IN ADDITION TO THE AFORESAID UNACCOUNTED INCOME OF RS. 5.30 LACS. 6. IN VIEW OF THIS, WE DO NOT FIND ANY JUSTIFICATIO N ON THE PART OF THE LOWER AUTHORITIES IN MAKING THE IMPUGNED ADDITION S EPARATELY. THE IMPUGNED ADDITION MADE BY THE LOWER AUTHORITIES IS ORDERED TO BE DELETED. ITA NO. 154/CHD/2017- PALACE INFRATECH PVT. LTD, LUDHIANA 3 IN THE RESULT, THE PRESENT APPEAL OF THE ASSESSEE I S HEREBY ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 26.02.2019. SD/- SD/- ( $ % & '# / ANNAPURNA GUPTA) () / ACCOUNTANT MEMBER ( / SANJAY GARG) / JUDICIAL MEMBER DATED : 26.02.2019 .. '+ ,- .- / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT 3. # / / CIT 4. # / ( )/ THE CIT(A) 5. -01 2 , % 2 , 34516 / DR, ITAT, CHANDIGARH 6. 15 7$ / GUARD FILE '+ # / BY ORDER, 8 ' / ASSISTANT REGISTRAR