Anumalisetty Jagadeesh, Anakapalle V. The Deputy Commissioner of Income Tax, Central Circle-2, Visakhapatnam

ITA 168/VIZ/2019

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 6613 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 3 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-08-2019
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: misc
• Appeal Filed On: 15-04-2019
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: D K SONAWAL
• Keywords: Unexplained investment; Search and seizure
• Section: 132

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM BENCH, VISAKHAPATNAM BEFORE SHRI V. DURGA RAO , HONBLE JUDICIAL MEMBER & SHRI D.S. SUNDER SINGH , HONBLE ACCOUNTANT MEMBER ITA NO. 168 / VIZ /201 9 (ASST. YEAR : 20 13 - 14 ) ANUMALISETTY JAGADEESH, D.NO. 11 - 3 - 30, JAMPAVARI STREET, ANAKAPALLE. V S . D CIT, CENTRAL CIRCLE - 2 , VISAKHAPATNAM. PAN NO. ACFPA 3143 F (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI G.V.N. HARI ADV OCATE . DEPARTMENT BY : SHRI D.K. SONAWAL CIT DR DATE OF HEARING : 20 / 0 6 /201 9 . DATE OF PRONOUNCEMENT : 02 / 0 8 /201 9 . O R D E R PER V. DURGA RAO, JUDICIAL MEMBER TH IS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF COMMISSIONER OF INCOME TAX (APPEALS) - 3 , VISAKHAPATNAM , DATED 31 /0 1 /201 9 FOR THE ASSESSMENT YEAR 20 13 - 14 . 2. FACTS OF THE CASE, IN BRIEF, ARE THAT THERE WAS A SEARCH AND SEIZURE OPERATIONS U/SEC. 132 OF THE ACT ON 11/10/2012 IN AS STEEL GROUP . DURING THE COURSE OF SEARCH , SEARCH TEAM HAS FOUND AN EXCESS GOLD OF 1010.847 GRAMS VALUE AT RS. 25,31,584/ - AND ASKED THE ASSESSEE TO EXPLAIN THE SOURCE . IN QUESTION NO.8 , THE ASSESSEE HAS SUBMITTED BEFORE THE SEARCH TEAM THAT HE IS NOT ABLE 2 ITA NO. 168 /VIZ/2019 ( ANUMALISETTY JAGADEESH ) TO PRODUCE ANY EVIDENCE, BUT ASKED OPPORTUNITY TO EXPLAIN THE SAME AT THE TIME OF FRAMING THE ASSESSMENT . DURING THE COURSE OF ASSESSMENT PROCEEDINGS , THE ASSESSEE HAS SUBMITTED THAT THE EXCESS GOLD FOUND DURING THE COURSE OF SEARCH IS BELONGING TO MR. G.RAMESH GUPTA , WHO IS BROTHER - IN - LAW OF THE ASSESSEE . MR.G.RAMESH GUPTA S HOUSE WAS UNDER INNOVATION , THEREFORE HE WAS STAYING WITH THE ASSESSEE AND THE GOLD BELONGING OF MR.G.RAMESH GUPTA IS MIXED WITH THE ASSESSEE S GOLD AND THEREFORE, SUBMITTED THAT THERE IS NO EXCESS GOLD FOUND DURING TH E SEARCH , WHATEVER EXCESS GOLD FOUND , IS BELONG TO MR. G.RAMESH GUPTA AND NOT BELONGING TO THE ASSESSEE. 3 . THE ASSESSING OFFICER EXAMINED THE EXPLANATION GIVEN BY THE ASSESSEE AND WAS FOUND THAT DURING THE COURSE OF SEARCH , THE ASSESSEE HAS NOT SUBMITTED THAT MR. G.RAMESH GUPTA IS NOT STAYING WITH THE ASSESSEE , WHO IS BROTHER - IN - LAW OF THE ASSESSEE AND WHOSE HOUSE IS UNDER INNOVATION. IN THE CASE OF MR.G.RAMESH GUPTA ALSO A SEARCH WAS CONDUCTED IN HIS RESIDENTIAL PREMISES, THEREFORE, THE EXPLANATION GIVEN BY THE ASSESSEE CANNOT BE ACCEPTED FOR THE REASON THAT BOTH ARE STAYING IN DIFFERENT HOUSES. IT IS NEITHER CASE OF MR. G.RAMESH GUPTA THAT AT THE TIME OF SEARCH , RE SIDENTIAL PREMISES WHERE HE WAS STAYING BELONGING TO THE ASSESSEE NOR IT IS THE CASE OF THE ASSESSEE THAT MR. G.RAMESH 3 ITA NO. 168 /VIZ/2019 ( ANUMALISETTY JAGADEESH ) GUPTA IS STAYING WITH HIM . THEREFORE, THE ASSESSING OFFICER DENIED THE EXPLANATION GIVEN BY THE ASSESSEE AND THE EXCESS GOLD JEWELLERY F OUND DURING THE COURSE OF SEARCH WAS TREATED AS UNEXPLAINED INVESTMENT IN THE HANDS OF THE ASSESSEE AND ACCORDINGLY TAXED. 4 . ON APPEAL BEFORE THE LD. CIT(A), ASSESSEE REITERATED THE SUBMISSIONS MADE DURING THE COURSE OF ASSESSMENT PROCEEDINGS . T HE LD. CIT(A) CONFIRMED THE ORDER OF THE ASSESSING OFFICER. 5. ON APPEAL BEFORE US , THE ASSESSEE HAS REITERATED THE SUBMISSIONS WHICH HE MADE BEFORE THE ASSESSING OFFICER AND THE LD. CIT(A) . 6 . LD. DEPARTMENTAL REPRESENTATIVE RELIED ON THE ORDERS OF THE AUTHORITIES BELOW. 7 . WE HAVE HEARD BOTH THE SIDES, PERUSED THE MATERIAL AVAILABLE ON RECORD AND ORDERS OF THE AUTHORITIES BELOW. 8 . IN THIS CASE, THERE IS A SEARCH AND SEIZURE OPERATION CARRIED U/SEC. 132 OF THE ACT ON 11/10/2012 WHEREIN EXCESS GOLD JEWE LLERY OF 1010.847 GRAMS VALUE AT RS. 25,31,584/ - WAS FOUND AND ASKED THE ASSESSEE TO EXPLAIN THE SOURCE. THE ASSESSEE HAS SUBMITTED BEFORE THE SEARCH TEAM THAT NO BILLS/ EVIDENCE IS AVAILABLE , HOWEVER, OPPORTUNITY MAY BE GIVEN TO EXPLAIN THE SAME BEFORE THE ASSESSING OFFICER DURING THE COURSE OF ASSESSMENT 4 ITA NO. 168 /VIZ/2019 ( ANUMALISETTY JAGADEESH ) PROCEEDINGS. DURING THE COURSE OF ASSESSMENT PROCEEDINGS, IT WAS SUBMITTED THAT THE EXCESS GOLD FOUND IS NOT BELONGING TO THE ASSESSEE AND IS BELONGING TO MR. G.RAMESH GUPTA , WHO IS BROTHER - IN - LAW OF THE ASSESSEE. HE ALSO SUBMITTED THAT MR.G.RAMESH GUPTA S HOUSE WAS UNDER INNOVATION, THEREFORE , HIS FAMILY IS STAYING WITH THE ASSESSEE. THE GOLD JEWELLERY OF MR.G.RAMESH GUPTA IS MIXED WITH THE ASSESSEES GOLD, THEREFORE THERE IS AN EXCESS GOLD. THE ASSESSING OFFICER HAS CONSIDERED THE EXPLANATION OF THE ASSESSEE AND REJECTED THE SAME ON THE GROUND THAT SEARCH WAS COVERED IN THE CASE OF ASSESSEE AS WELL AS MR.G.RAMESH GUPTA IN TWO DIFFERENT PLACES. MR. G.RAMESH GUPTA NOW HERE STATED THAT HIS HOUSE IS UNDER INNOVATION AND IS STAYING IN THE ASSESSEES BUILDING. THE ASSESSEE ALSO NOT MENTIONED DURING THE COURSE OF SEARCH THAT MR. G.RAMESH GUPTA IS STAYING ALONG WITH THE ASSESSEE AND HIS HOUSE IS UNDER INNOVATION . ACCORDINGL Y, THE EXCESS GOLD FOUND DURING THE COURSE OF SEARCH IS TREATED AS UNEXPLAINED INVESTMENT AND ADDED THE SAME IN THE HANDS OF THE ASSESSEE. ON APPEAL, LD. CIT(A) CONFIRMED THE ORDER OF THE ASSESSING OFFICER. IN THIS CONTEXT , IT IS TO BE NOTED THAT WHEN THERE IS A SEARCH, CERTAIN GOLD JEWELLERY FOUND IN THE ASSESSEES PREMISES. IT IS THE DUTY OF THE ASSESSEE TO EXPLAIN THE SOURCE WITH ALL RELEVANT EVIDENCE. AS PER SECTION 292C, WHERE ANY 5 ITA NO. 168 /VIZ/2019 ( ANUMALISETTY JAGADEESH ) BOOKS OF ACCOUNT , OTHER DOCUMENTS, MONEY, BULLION , JEWELLERY OR OTHER VALUABLE ARTICLE OR THING IS FOUND IN THE POSSESSION OR CONTROL OF ANY PERSON IN THE COURSE OF SEARCH UNDER SECTION 132, IT IS PRESUMED THAT SUCH BOOKS OF ACCOUNT , OTHER DOCUMENTS , MONEY, BULLION, JEWELLERY OR OTHER VALUABLE ARTI CLE OR THING IS BELONG S TO THE ASSESSEE. IF IT IS NOT BELONGING TO THE ASSESSEE, IT IS THE DUTY OF THE ASSESSEE TO EXPLAIN BY BRINGING RELEVANT EVIDENCE TO SHOW T H A T IT IS NOT BELONG ING TO HIM. IN THIS CASE, THE ASSESSEE HAS FAILED TO DISCHARGE BURDEN CASTED UPON HIM TO SHOW THAT EXCESS JEWELLERY FOUND DURING THE COURSE OF SEARCH IS NOT BELONGING TO HIM. THEREFORE, THE ASSESSING OFFICER AS WELL AS LD. CIT(A) RIGHTY MADE THE ADDITION IN THE HANDS OF THE ASSESSEE. WE FIND NO INFIRMITY IN THE ORDER PASSED BY T HE LD.CIT(A). THUS, THIS APPEAL FILED BY THE ASSESSEE IS DISMISSED. 9. IN THE RESULT, APPEAL FILED BY THE ASSESSEE IS DISMISSED. ORDER PRONOUNCED IN OPEN COURT ON TH IS 0 2 N D DAY OF A U G U S T , 201 9 . S D / - S D / - ( D.S. SUNDER SINGH ) ( V. DURGA RAO ) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 0 2 N D A U G U S T , 201 9 . VR/ - 6 ITA NO. 168 /VIZ/2019 ( ANUMALISETTY JAGADEESH ) COPY TO: 1. THE ASSESSEE ANUMALISETTY JAGADEESH, D.NO. 11 - 3 - 30, JAMPAVARI STREET, ANAKAPALLE. 2. THE REVENUE DCIT, CENTRAL CIRCLE - 2, VISAKHAPATNAM. 3. THE PR. CIT (CENTRAL), VISAKHAPATNAM. 4. THE CIT(A) - 3, VISAKHAPATNAM. 5. THE D.R . , VISAKHAPATNAM. 6. GUARD FILE. BY ORDER (VUKKEM RAMBABU) SR. PRIVATE SECRETARY, ITAT, VISAKHAPATNAM.