Industrial and Mining Associates, Ranchi V. ITO,Ward-2(4), Ranchi

ITA 161/RAN/2019

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 2504 (ITAT-RANCHI)
• Duration Of Justice: 11 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-03-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2015-2016
• Appeal Filed On: 04-04-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Unexplained investment; Assessment record
• Section: 144; 143(3); 201; 13; 20

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL RANCHI BENCH, RANCHI BEFORE SHRI S.S.GODARA, JUDICIAL MEMBER AND DR. A.L. SAINI, ACCOUNTANT MEMBER ITA NO. 161 / RAN / 201 9 ASSESSMENT YEAR :2015-16 INDUSTRIAL AND MINING ASSOCIATES, SUNDAR-VIHAR, TIRIL, KOKAR, RANCHI- 834001 [ PAN NO. AABFI 3219 G ] V/S . INCOME TAX OFFICER, WARD-2(4), CENTRAL REVENUE BUILDING (ANNEXE), RANCHI-834001 /APPELLANT .. / RESPONDENT /BY APPELLANT SHRI M.K.CHOWDHARY, ADVOCATE /BY RESPONDENT SMT. NISHA ORAON SINGHMAAR, JCIT-DR /DATE OF HEARING 04-03-2020 /DATE OF PRONOUNCEMENT 04-03-2020 / O R D E R PER BENCH (ORAL):- THIS ASSESSEES APPEAL FOR ASSESSMENT YEAR 2015-16 ARISES AGAINST THE COMMISSIONER OF INCOME TAX (APPEALS) RANCHIS O RDER DATED 17.12.2018 PASSED IN CASE NO.CIT(A), RANCHI/10286/2017-18 INVO LVING PROCEEDINGS U/S 144 R.W.S 143(3) OF THE INCOME TAX ACT, 1961; IN SH ORT THE ACT. HEARD BOTH THE PARTIES. CASE FILE PERUSED 2. THE ASSESSEES FORMER SUBSTANTIVE GRIEVANCE CHAL LENGING CORRECTNESS OF BOTH THE LOWER AUTHORITIES ACTION ADDING AN AMO UNT OF RS.1,01,66,177/- AS ITS ALLEGED UNEXPLAINED INVESTMENT FOR ACQUIRING TW O RESIDENTIAL FLATS IN THE RELEVANT PREVIOUS YEAR. LEARNED DEPARTMENTAL REPRE SENTATIVE REFERRED THE ASSESSMENT AND LOWER APPELLATE FINDINGS MAKING THE IMPUGNED ADDITION AFTER ITA NO.161/RAN/2019 A.Y. 2015-16 INDUSTRIAL & MINING ASSOCIATES VS. ITO W D-2(4), RANCHI PAGE 2 QUOTING ASSESSEES FAILURE IN EXPLAINING SOURCE OF THE IMPUGNED UNEXPLAINED INVESTMENT. CASE RECORD, MORE PARTICULARLY PAGE 1 ( ASSESSEES PAPER BOOK ), SUGGESTS THAT THIS SUM IN DISPUTE OF RS.1,01,66,177 /- COMPRISES OF THREE HEAD(S) OF RS.35,60,000/- RS.6,06,207 AND RS.60,00, 000/-; RESPECTIVELY. ALL THESE THREE HEADS ALSO REVEAL CORRESPONDING DATE-WI SE DETAILS STARTING FROM 12.04.2014 TO 11.10.2014. LEARNED DR AT THIS STAGE REFERRED TO THE CIT(A)S FINDINGS DECLINING THE ASSESSEES PLEA OF ITS ADDIT IONAL EVIDENCE. HER CASE THEREFORE IS THAT THE ASSESSING OFFICER MUST BE GIV EN AT LEAST AN OPPORTUNITY TO CONSIDER ALL THESE FACTUAL ASPECTS. WE SEE NO REASO N TO ACCEPT THE REVENUES FOREGOING ARGUMENT. THE FACT REMAINS THAT THE FOREG OING THREE HEAD(S) FORM- PART OF ASSESSMENT RECORDS RIGHT FROM SCRUTINY TILL DATE. THE CORRESPONDING DETAILS OF DATE-WISE PAYMENTS WHICH HAD EARLIER BEE N RECORDED AS SUNDRY CREDITORS ARE NOW SHOWN UNDER THE HEAD LAND AND BUILDING . WE HOLD IN THESE FACTS AND CIRCUMSTANCES THAT THE IMPUGNED ADD ITION OF UNEXPLAINED INVESTMENT OF RS.1,01,6,177/- IS NOT SUSTAINABLE. T HE SAME IS DIRECTED TO BE DELETED. 3. NEXT COMES THE LATTER ISSUE OF GROSS PROFIT ADDI TION AMOUNTING TO RS.10,42,789/- @ 9.48% QUA ASSESSEES ALLEGED NON-DISCLOSED TURNOVER OF RS.1,09,99,879/-. WE SEE NO REASON TO SUSTAIN THIS LATER ADDITION AS WELL SINCE PAGE 13 OF THE ASSESSEES PAPER BOOK INDICATES NON- TRADING TURNOVER OF RS.91,22,750/- COMPRISING OF VARIOUS BANKING TRANS ACTIONS THROUGH CHEQUES AND CASH. ALL THE FOREGOING FIGURE(S) HAVE GONE UNR EBUTTED FROM THE REVENUE SIDE. THE SAME ALSO INCLUDE CREDITS IN BANK ACCOUNT S OTHER THAN RELATING TO SALES OF RS.91,22,750/- AND EXCESS CREDIT FOR RS.21 ,26,640/-. WE THUS HOLD IN THESE FACTS AND CIRCUMSTANCES THAT THE LEARNED LOWE R AUTHORITIES HAVE ERRED IN TAKING NON-TRADING TRANSACTION AS TRADING ONES THER EBY ADDING THE IMPUGNED GROSS PROFIT ELEMENT. THIS LATTER ADDITION IS ALSO DIRECTED TO BE DELETED THEREFORE. NECESSARY COMPUTATION INCLUDING THAT OF INTEREST TO FOLLOW AS PER LAW. ITA NO.161/RAN/2019 A.Y. 2015-16 INDUSTRIAL & MINING ASSOCIATES VS. ITO W D-2(4), RANCHI PAGE 3 4. THIS ASSESSEES APPEAL IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT AT T HE CLOSE OF HEARING ON WEDNESDAY, 4 TH MARCH 2020 SD/- SD/- ( ) ('# ) (DR. A.L. SAINI) (S.S.GODARA) (ACCOUNTANT MEMBER) (JUDICIAL MEMBER) RANCHI, *DKP SR.P.S $- 04 / 03 /20 20 / COPY OF ORDER FORWARDED TO:- 1. /APPELLANT-INDUSTRIAL & MINING ASSOCIATES, SUNDAR-V IHAR, TIRIL, KOKAR, RANCHI 2. /RESPONDENT-ITO WD-2(4), CENTRAL REVENUE BUILDING ( ANNEXE), RANCHI-834001 3. / 2 / CONCERNED CIT RANCHI 4. 2- / CIT (A) RANCHI 5. 5 ##/, /, / DR, ITAT, RANCHI 6. ; / GUARD FILE. BY ORDER/ , /TRUE COPY/ SR.PS, (ON TOUR), RANCHI