Ajay Kumar Jain, Gwalior V. A.C.I.T.-Circle-1, Gwalior

ITA 159/AGR/2010

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 56948 (ITAT-AGRA)
• Duration Of Justice: 1 year(s) 10 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-03-2012
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 15-03-2012
• Assessment Year: 2005-2006
• Appeal Filed On: 17-05-2010
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Assessee Lawyers: V BAPNA
• Keywords: Unexplained investment

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, AGRA BENCH, AGRA BEFORE : SHRI BHAVNESH SAINI, JUDICIAL MEMBER & SHRI A. L. GEHLOT, ACCOUNTANT MEMBER ITA NO. 159/AGRA/2010 ASST. YEAR : 2005-06 SHRI AJAY KUMAR JAIN, VS. A.C.I.T., CIRCLE-1, SARAFA BAZAR, GWALIOR. GWALIOR. (PAN : ABWPJ 4307 J) (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI V. BAPNA, C.A. RESPONDENT BY : SHRI WASEEM ARSHAD, SR. DR DATE OF HEARING : 15.03.2012 DATE OF PRONOUNCEMENT : 23.03.2012 ORDER PER BHAVNESH SAINI, J.M. : THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST TH E ORDER OF LD. CIT(A), GWALIOR DATED 08.03.2010 FOR THE ASSESSMENT YEAR 20 05-06. 2. THE LD. COUNSEL FOR THE ASSESSEE DID NOT PRESS G ROUND NO. 1 OF APPEAL OF THE ASSESSEE. THE SAME IS ACCORDINGLY, DISMISSED AS WIT HDRAWN. 3. ON GROUND NO. 2, THE ASSESSEE CHALLENGED THE CON FIRMING OF ADDITION OF RS.20,588/- ESTIMATED TOWARDS LOW HOUSEHOLD EXPENSE S. THE ASSESSEE HAS SHOWN TOTAL HOUSEHOLD EXPENSES AT RS.37,412/-. THE DETAIL S OF HOUSEHOLD EXPENSES WERE ITA NO. 159/AGRA/2010 2 CALLED FOR. HOWEVER, COMPLETE DETAILS WERE NOT FILE D. THE ASSESSEES FAMILY CONSISTS OF HIMSELF, HIS WIFE AND TWO CHILDREN. CON SIDERING THE LIVING STANDARD OF ASSESSEE AND HIS FAMILY AND INFLATION COST, THE HOU SEHOLD EXPENSES WERE ESTIMATED AT RS.95,000/-. THE AO ALSO TOOK INTO CONSIDERATION THAT THE WITHDRAWALS SHOWN BY HIS WIFE AT RS.7,000/- AND 20,000/- WAS ADDED IN HE R CASE. THEREFORE, ADDITION OF RS.30,588/- WAS MADE IN THE HANDS OF THE ASSESSEE. THE ASSESSEE EXPLAINED THAT HE WAS LIVING IN ANCESTRAL HOUSE HAVING ONE ROOM ONLY AND TELEPHONE & ELECTRICITY EXPENSES HAVE BEEN CLAIMED IN THE BOOKS OF ACCOUNT. NO OTHER MAJOR EXPENSES HAVE BEEN INCURRED. THE LD. CIT(A) AFTER CONSIDERIN G THE EXPLANATION OF THE ASSESSEE REDUCED THE ADDITION BY RS.10,000/- AND CO NFIRMED THE ADDITION OF RS.20,558/-. 4. ON CONSIDERATION OF RIVAL SUBMISSION, WE ARE OF THE VIEW THAT THE ADDITION IS STILL ON EXCESSIVE SIDE. CONSIDERING THE ASSESSEES LIVING IN ANCESTRAL HOUSE, SMALL SIZE OF HIS FAMILY, WITHDRAWALS OF ASSESSEES WIFE AND THE FACT THAT NO MATERIAL IS BROUGHT AGAINST THE ASSESSEE FOR SPENDING EXORBITAN T AMOUNT OF HOUSEHOLD EXPENSES, WE REDUCE THE ADDITION TO RS.15,000/- IN ALL AS AGAINST RS.20,588/- CONFIRMED BY THE LD. CIT(A). THE AO SHALL MAKE ADDI TION OF RS.15,000/- AND THE ORDERS OF AUTHORITIES BELOW ARE, ACCORDINGLY, MODIF IED TO THAT EXTENT. IN THE RESULT, GROUND NO.2 OF APPEAL OF ASSESSEE IS PARTLY ALLOWED . ITA NO. 159/AGRA/2010 3 5. ON GROUND NO. 3, THE ASSESSEE CHALLENGED THE ADD ITION OF RS.72,587/- OUT OF STOCK IN TRADE. THE AO FROM THE RECORD NOTED THAT S INCE THERE WAS NO PURCHASE OR OPENING STOCK OF GOLD GINNIES, THE DIFFERENCE OF 40 GMS. OF GOLD GINNIES WAS CONSIDERED FOR ADDITION AND BY APPLYING THE RATE OF GOLD GINNIES PER GRAM, ADDITION OF RS.24656/- WAS MADE AS UNEXPLAINED STOCK OUT OF BOOKS. SIMILARLY, ADDITION OF RS.47931/- WAS MADE ON ACCOUNT OF UNEXPLAINED SILVE R COINS IN THE ABSENCE OF PURCHASE VOUCHERS ETC. THE LD. CIT(A) ALSO CONFIRME D THE ADDITIONS BECAUSE IT IS A CASE OF SEARCH, IN WHICH THE GOLD GINNIES AND SILVE R COINS FOUND IN SEARCH HAVE NOT BEEN EXPLAINED THROUGH EVIDENCE ON RECORD AND IN TH E ABSENCE OF PURCHASE VOUCHERS. ADDITION OF RS.72,587/- ON ACCOUNT OF BOT H THE ITEMS WAS CONFIRMED BY THE LD. CIT(A) IN PARA 6.3 AND 6.4 OF THE APPELLATE ORDER. 6. THE LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE ASSESSEE HAS SHOWN THE PURCHASE VALUE OF GINNIES AND SILVER COINS IN THE B ALANCE SHEET OF THE ASSESSEE PRODUCED IN SEVERAL PROCEEDINGS OF ASSESSMENT AND T HEREFORE, IT CANNOT BE TREATED AS UNEXPLAINED GOLD GINNIES AND SILVER COINS. HE HA S SUBMITTED THAT THESE WERE KEPT ON ASSET SIDE IN THE BALANCE SHEET FOR THE PUR POSE OF WORSHIP OF GOD, WHICH MATCHED WITH THE QUANTITY NOTED BY THE AO. THEREFOR E, ADDITION IS UNJUSTIFIED. ON THE OTHER HAND, THE LD. DR RELIED UPON THE ORDERS O F THE AUTHORITIES BELOW AND ITA NO. 159/AGRA/2010 4 SUBMITTED THAT NO PURCHASE BILLS AND DETAILS WERE F URNISHED BEFORE THE AUTHORITIES BELOW. THEREFORE, THE ADDITION WAS RIGHTLY MADE BY THE LD. CIT(A) 7. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS AND GON E THROUGH THE BALANCE SHEET FILED IN THE PAPER BOOK FOR PRECEDING ASSESSM ENT YEARS. AT PAGE 24 OF THE PAPER BOOK, THE ASSESSEE FILED BALANCE SHEET FOR AS SESSMENT YEAR 1999-2000, IN WHICH 5 GINNIES HAVE BEEN MENTIONED ON ASSET SIDE I N A SUM OF RS.16,000/-. THE SAME CONTINUED IN SUBSEQUENT YEAR ALSO, WHICH ARE M ENTIONED AT PAGE PB-28 AND IN PRECEDING ASSESSMENT YEAR 2004-05 ALSO (PB-46). SIM ILARLY FOR ASSESSMENT YEAR 2000-01, SILVER COINS HAVE BEEN SHOWN AT ASSET SIDE IN A SUM OF RS.21,433/- (PB- 31) AND FOR ASSESSMENT YEAR 2004-05, SAME VALUE OF SILVER COINS IS SHOWN IN THE BALANCE SHEET ON ASSET SIDE. THESE FACTS WOULD SHOW THAT GOLD GINNIES AND SILVER COINS FOUND DURING THE COURSE OF SEARCH ARE PART OF RECORD OF THE ASSESSEE AND HAVE BEEN DULY SHOWN IN THE BALANCE SHEET ON ASSET SIDE IN THE PRECEDING ASSESSMENT YEARS. THEREFORE, THEY COULD NOT BE TREATED AS UNEX PLAINED. MOREOVER, THE AO HAS MADE ADDITION ON ACCOUNT OF UNACCOUNTED INVESTMENT IN THE STOCK OF SILVER AND GOLD. SINCE THE ASSESSEE HAS SHOWN GOLD GINNIES AND SILVER COINS ON THE ASSET SIDE IN THE BALANCE SHEET, THEREFORE, SAME COULD NOT BE TAKEN INTO CONSIDERATION IN UNACCOUNTED STOCK. THE ASSESSEE IS, THEREFORE, ABLE TO EXPLAIN THE INVESTMENT IN GOLD GINNIES AND SILVER COINS AND AS SUCH BOTH THE ADDITIONS ARE UNJUSTIFIED. WE ITA NO. 159/AGRA/2010 5 ACCORDINGLY SET ASIDE THE ORDERS OF THE AUTHORITIES BELOW AND DELETE THE ADDITION OF RS.72,587/-. GROUND NO. 3 OF APPEAL OF ASSESSEE IS ALLOWED. NO OTHER POINT IS ARGUED OR PRESSED. 8. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS PAR TLY ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT. SD/- SD/- (A.L. GEHLOT) (BHAVNESH SAINI) ACCOUNTANT MEMBER JUDICIAL MEMBER *AKS/- COPY OF THE ORDER FORWARDED TO : 1. APPELLANT 2. RESPONDENT 3. CIT(A), CONCERNED BY ORDER 4. CIT, CONCERNED 5. DR, ITAT, AGRA 6. GUARD FILE ASSISTANT REGISTRAR TRUE COPY