Subhash Chander Khanna, New Delhi V. ITO, New Delhi

ITA 1701/DEL/2013

• Counselvise Citation: 170120114 RSA 2013
• Duration Of Justice: 1 year(s) 8 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-11-2014
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: G
• Next Hearing Date: 25-09-2014
• Assessment Year: 2004-2005
• Appeal Filed On: 25-03-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SHRI
• Assessee Lawyers: VED JAIN ADV SMT RANU JAIN
• Keywords: Unexplained investment; Business income; Income from undisclosed sources; Principle of natural justice; Peak credit; Source of fund; Additional evidence; Assessment record; Reassessment proceedings
• Section: 40A(3); 133(6); 148; 15; 69

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH G, NEW DELHI) BEFORE SHRI I. C. SUDHIR, JUDICIAL MEMBER AND SHRI T.S. KAPOOR, ACCOUNTANT MEMBER I.T.A. NO.1701 /DEL/2013 ASSESSMENT YEAR : 2004-05 SUBHASH CHANDER KHANNA, VS. ITO, WARD 33(4), R-731, NEW RAJINDEER NAGAR, NEW DELHI NEW DELHI-110 060 GIR / PAN:AIRPK2900N (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI VED JAIN, ADV. SMT. RANU JAIN, CA RESPONDENT BY : SHRI ORDER PER T.S. KAPOOR, AM: THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST TH E ORDER OF LD. CIT(A) DATED 31.012013. THE ASSESSEE HAS TAKEN 9 GROUNDS OF APPEAL OUT OF WHICH GROUND NO.1 AND 9 ARE GENERAL IN NATURE AND DO NOT REQUIRE ANY ADJUDICATION. IN GROUNDS NO.2 & 3, THE ASSESSEE HAS TAKEN LEGAL G ROUNDS FOR INITIATION OF REASSESSMENT PROCEEDINGS. GROUND NO.4 RELATES TO T HE GRIEVANCE OF THE ASSESSEE BY WHICH HE IS AGGRIEVED WITH THE ACTION O F LD. CIT(A) BY WHICH HE HAD NOT ACCEPTED ADDITIONAL EVIDENCES FILED BY HIM. GROUNDS NO.5,6 & 7 RELATE TO THE ACTION OF LD. CIT(A) BY WHICH HE HAD CONFIRMED THE ADDITION OF RS.84,28,128/- ON ACCOUNT OF DEPOSITS IN THE BANK. LD. A.R. IN GROUND NO.7 HAS PRAYED THAT IF AT ALL THE ADDITION WAS TO BE MA DE, THE ADDITION HAS TO BE ONLY ON THE BASIS OF PEAK CREDIT IN THE BANK ACCOUN T AND NOT OF THE WHOLE OF DEPOSITS CAN BE SUBJECTED TO TAX. IN GROUND NO.8, THE ASSESSEE IS AGGRIEVED WITH THE ACTION OF LD. CIT(A) BY WHICH HE HAD ASSES SED THE INCOME OF THE ASSESSEE AT RS.1,26,000/- ON ACCOUNT OF INCOME FROM HOUSE PROPERTY. ITA NO.1701/DEL/2013 2 2. AT THE OUTSET, LD. A.R. SUBMITTED THAT LD. CIT(A ) HAD NOT ADMITTED ADDITIONAL EVIDENCES WHICH IS AGAINST THE RULES OF NATURAL JUSTICE. IT WAS SUBMITTED THAT THE A.O. HAD ADDED BACK TO THE INCOM E OF THE ASSESSEE, THE WHOLE OF DEPOSITS N THE BANK ACCOUNT AND DID NOT CO NSIDER THE PEAK CREDIT AND, THEREFORE IT WAS PRAYED THAT THE MATTER BE REM ANDED BACK TO THE OFFICE OF THE A.O. / CIT(A) FOR RE-ADJUDICATION. 3. LD. D.R. ON THE OTHER HAND SUBMITTED THAT THE AS SESSEE HAD NOT DISCLOSED THE DEPOSITS IN THE BANK IN ITS ORIGINAL RETURN OF INCOME AND IT WAS ONLY DURING REASSESSMENT PROCEEDINGS, THE ASSESSEE CLAIMED THAT THE DEPOSITS WERE ON ACCOUNT OF SALES MADE BY HIM IN VARIOUS PRO PRIETORSHIP CONCERNS. IT WAS FURTHER SUBMITTED THAT IT WAS WRONG TO SAY THAT ADDITIONAL EVIDENCE WAS NOT ADMITTED AS LD. CIT(A) HAS OBTAINED REMAND REPO RT FROM A.O. AND DURING REMAND PROCEEDINGS ALSO, THE ASSESSEE DID NO T SUBSTANTIATE THE DEPOSITS IN THE BANK ACCOUNT. IN THIS RESPECT LD. D.R. INVITED OUR ATTENTION TO LD. CIT(A)S ORDER AT PAGE 10 WHERE LD. CIT(A) H AD REPRODUCED THE REMAND REPORT OBTAINED FROM A.O. LD. A.R. SUBMITTE D IN HIS REJOINDER THAT CASH DEPOSITS RELATE TO PROPRIETORSHIP FIRMS RUN BY THE ASSESSEE AND IN THE SUCCEEDING YEAR, LD. CIT(A) HAS ACCEPTED EXISTENCE OF THESE FIRMS AND HAS ACCEPTED THE TURNOVER OF THESE CONCERNS AND THEREFO RE, REJECTION OF TURNOVER OF THESE CONCERNS IN THE YEAR UNDER CONSIDERATION W AS NOT JUSTIFIED. 4. WE HAVE HEARD RIVAL PARTIES AND HAVE GONE THROUG H THE MATERIAL PLACED ON RECORD. WE FIND THAT ASSESSEE IN HIS ORIGINAL R ETURN OF INCOME DECLARED TOTAL INCOME OF RS.76,175/- ON THE BASIS OF BUSINES S OF PROPRIETORSHIP FIRM OF M/S. TUSHAR FABRICS. THE REVENUE HAD INFORMATION O N THE BASIS OF A REPORT FORM DIT (INV.) THAT ASSESSEE WAS MAINTAINING SEVER AL BANK ACCOUNTS IN THE ITA NO.1701/DEL/2013 3 NAME OF VARIOUS PERSONS WHICH WERE NOT DISCLOSED TO THE DEPARTMENT AND, THEREFORE, THE CASE OF THE ASSESSEE WAS REOPENED AN D ASSESSEE WAS SHOW CAUSED FOR NON DISCLOSURE OF BANK DEPOSITS OF 5 CON CERNS WHEREIN ASSESSEE WAS PROPRIETOR AND WHEREIN HE HAD DEPOSITED IN ALL ACCOUNTS AN AMOUNT OF RS.84,28,128/-. IN RESPONSE TO THE SHOW CAUSE NOTI CE, THE ASSESSEE ADMITTED THAT THESE FIRMS BELONG TO HIM AND HE DECLARED AN I NCOME OF RS.43,331/- FROM THESE CONCERNS AND CLAIMED THAT THE AMOUNT DEP OSITED IN THESE FIRMS RELATE TO SALES MADE BY ASSESSEE FROM TIME TO TIME. THE A.O. TREATED THE ADDITIONAL INCOME AS RETURN FILED IN RESPONSE TO NO TICE U/S 148 OF THE ACT AND ISSUED NOTICE U/S 143(2) ON 24.10.11 AND THE DATE O F HEARING WAS FIXED FOR 31.10.2011. HOWEVER, NOBODY WAS PRESENT ON 31.10.2 011, THEREFORE, THE A.O. MADE AN ADDITION OF RS.84,28,128/- U/S 69 OF T HE ACT BY HOLDING AS UNDER: 7. ACCORDING TO THE ASSESSEE'S OWN ADMISSION THE S ALES IN THE ABOVE 5 PROPRIETARY CONCERNS AMOUNTED TO RS 84.28 LACS BE SIDES TURNOVER OF RS. 37,83,263/- IN M/S TUSHAR FABRICS FOR WHICH A R ETURN WAS FILED ORIGINALLY. EVEN WHEN THE TURNOVER WAS HUGE THE ASS ESSEE CHOSE NOT TO KEEP BOOKS OF ACCOUNTS AS PROVIDED U/S 44AA OF THE I.T.ACT AND TO OBTAIN REPORT OF THE CHARTERED ACCOUNTANT U/S 44AB OF I.T.ACT, 1961. THE PROVISIONS OF SECTION 271 A & 271 B ARE CLEARLY ATTRACTED AND A SHOW CAUSE NOTICE U/S 274 HAS BEEN SEPARATELY ISSUE D FOR THIS PURPOSE. 8. THE ASSESSEE HAS NOWHERE SUBMITTED THE BASIS FOR ARRIVING AT INCOME AS DECLARED IN RETURN TREATED AS FILED IN RE SPONSE TO NOTICE U/S 148 FROM THOSE 5 CONCERNS. EVEN IF THE ASSESSEE'S V ERSION IS PROPOSED TO BE ACCEPTED FOR ARGUMENT SAKE, THAT THE WITHDRAW ALS OF CASH WAS FOR PURCHASES, EVEN THEN, THE PURCHASES BEING IN CA SH THE PROVISIONS OF SECTION' 40A(3) ARE APPLICABLE. AS A MATTER OF F ACT, THE FACT OF PURCHASE/SALE HAS NOT BEEN PROVED BY THE ASSESSEE, AS THE PRIMARILY ONUS WAS TO HIM TO ADDUCE EVIDENCE IN SUPPORT OF HI S ASSERTIONS. 9. IT WAS AT A VERY LATE STAGE, WHEN PERHAPS THERE WAS NO OTHER ALTERNATIVE AVAILABLE WITH THE ASSESSEE, THAT THIS PLEA HAS BEEN TAKEN. ITA NO.1701/DEL/2013 4 THERE IS NO PROOF OF ANY EXPENSES ETC. HAVING BEEN INCURRED AND THEREFORE THE INCOME DECLARED BY THE ASSESSEE FROM THESE 5 CONCERNS CANNOT BE ACCEPTED. 10. THE ASSESSEE HAS BEEN INDULGING IN ACTIVITIES W HICH WERE YIELDING INCOME AND WHICH WERE NEVER DISCLOSED TO THE DEPART MENT. FROM ALL THIS, IT IS BRAYENLY CLEAR THAT THE DEPOSITS OF CAS H IN ALL THESE 5 ACCOUNTS (SO CALLED PROPRIETARY CONCERNS) IS UNEXPL AINED AND IS, THEREFORE DEEMED AS INCOME OF THE ASSESSEE U/S 69 OF THE I. T. ACT, 1961. 5. THE A.O. FURTHER MADE AN ADDITION OF RS.1.26 LAC S ON THE BASIS THAT ASSESSEE HAD TWO HOUSES IN NEW RAJENDER NAGAR ONE O F WHICH WAS USED FOR SELF OCCUPATION AND THE SECOND ONE WAS ALSO UNDER H IS OCCUPATION THEREFORE, HE ESTIMATED AN AMOUNT OF RS.15,000/- PER MONTH AS ANNUAL LETTING VALUE AND THEREFORE, MADE AN ADDITION OF RS.1.26 LACS AFTER A LLOWING THE NECESSARY DEDUCTIONS. AGGRIEVED, THE ASSESSEE FILED APPEAL B EFORE LD. CIT(A) AND FILED ADDITIONAL EVIDENCE ALSO. THE ADDITIONAL EVI DENCES WERE IN THE FORM OF PHOTOCOPIES OF FEW SALE BILLS AND CHALLANS OF GOODS SOLD BY HIM AND ALSO CONTAINED A CHART SHOWING DEPOSITS OF SALES, WITHDR AWALS, IN THE BANK ACCOUNTS. LD. CIT(A) FORWARDED ADDITIONAL EVIDEN CES VIDE ORDER DATED 14.11.2012 FOR A.O.S COMMENTS. DURING REMAND PROC EEDINGS, THE ASSESSEE AGAIN DID NOT FURNISH ANY EVIDENCE SUBSTANTIATING T URNOVER OF THESE FIRMS BUT ONLY FILED AN AFFIDAVIT CLAIMING THAT THE FIRMS BEL ONG TO HIM. FOR THE SAKE OF CONVENIENCE, THE REMAND REPORT AS REPRODUCED IN LD. CIT(A)S ORDER, IS REPRODUCED BELOW: KINDLY REFER TO YOUR LETTER F. NO. DEL/CIT{A)-XXVI /RR/2012- 13/850 DATED 6TH NOVEMBER, 2012 FORWARDING THEREWIT H ADDITIONAL EVIDENCES FOR VERIFICATION AND REPORT U/S 46A OF TH E IT ACT BRIEF FACTS OF THE CASE:- ITA NO.1701/DEL/2013 5 ORIGINAL RETURN OF INCOME FOR THE AY 2004-05 IN THI S CASE WAS FILED DECLARING AN INCOME OF RS. 76,175/-. AS PER COMPUTA TION OF INCOME, THE ASSESSEE HAD DECLARED BUSINESS INCOME FROM ONE PROP. CONCERN, M/S. TUSHAR FABRICS. SUBSEQUENTLY, A RE-ASSESSMENT PROCEEDINGS U/S 147/1 48 WERE INITIATED ON THE BASIS OF A REPORT RECEIVED FROM THE OFFICE O F DIT(LNV), UNIT V(3), NEW DELHI VIDE F.NO ITO(LNV)/UNIT V(3)/TEP/20 10-11 DATED 08.09.2010. IN THEIR REPORT, THE INVESTIGATION WING INFORMED THAT THE ASSESSEE WAS OPERATING BANK ACCOUNTS IN THE FOLLOWI NG PROP. CONCERNS WHICH WERE NOT DECLARED IN THE RETURN OF INCOME: S.NO. NAME OF THE CONCERN BANKER A/C NO. 1 TIRUPATI TEXTILES PNB, NEW DELHI 3075002100043881 2 SHREE BALAIEE FABRICS PNB, NEW DELHI 307500210004 4154 3 BHAAWATI TEXTILES PNB, NEW DELHI 3075002102003300 4 SARASWATI TEXTILES PNB, NEW DELHI 307500210004460 4 5 SHREE MAHALAXMI FABRICS PNB, NEW DELHI 3075009302003060 BANK ACCOUNT STATEMENTS WERE OBTAINED FROM THE RESP ECTIVE BANKS. ON VERIFICATION IT REVEALED TOTAL CREDITS OF RS. 84,28 ,128/- IN THE BANK ACCOUNTS OF THE ABOVE MENTIONED CONCERNS. DURING TH E COURSE OF ASSESSMENT PROCEEDINGS, THE ASSESSEE WAS GIVEN A NU MBER OF OPPORTUNITIES TO EXPLAIN THE SOURCES OF CREDITS APP EARING IN BANK ACCOUNTS OF THE ABOVE CONCERNS. THE ASSESSEE FAILED TO EXPLAIN THE SOURCES OF CREDITS APPEARING IN THESE BANK ACCOUNTS , THEREFORE, THE ADDITION OF RS. 84,28,128/- WAS ADDED TO THE INCOME OF THE ASSESSEE BEING UNEXPLAINED DEPOSITS IN THE BANK. ASSESSMENT WAS FRAMED U/S 143/148 VIDE ORDER DATED 04.11.2011 AT TOTAL INCOME OF RS. 86,30,303/-. THE ASSESSEE FILED AN APPEAL AGAINST ASSESSMENT ORD ER. IN APPEAL, THE ASSESSEE FILED ADDITIONAL EVIDENCES UNDER RULE 46A OF THE I.T. RULES, 1962. IN HIS ADDITIONAL EVIDENCE, THE ASSESSEE HAS SUBMITTED AS UNDER: 'THE ASSESSEE IS PRODUCING HEREWITH THE ADDITIONAL EVIDENCES IN SUPPORT OF TRANSACTIONS OF CREDIT IN THE BANK ACCOU NTS AS SALE PROCEEDS OF UNDISCLOSED SALES WHICH WERE NOT PRODUCED AT THE TIME OF ASSESSMENT PROCEEDINGS. THE PHOTO COPIES OF FEW SAL E BILLS AND CHALLANS OF FABRICS MATERIAL SUPPLIED IS ENCLOSED H EREWITH. ITA NO.1701/DEL/2013 6 CONSIDERING THE FACTS AS EXPLAINED ABOVE, IT IS HUM BLY REQUESTED TO YOUR HONOUR TO KINDLY ADMIT OUR APPLICATION UNDER R ULE 46A FOR THE PRODUCTION OF ADDITIONAL EVIDENCE, WITHIN THE JURIS DICTION AND PRINCIPLES OF NATURAL JUSTICE.' THE ASSESSEE HAS FILED A CHART SHOWING CHEQUE DEPOS IT OF SALE PROCEEDS; CASH DEPOSIT OUT OF CASH WITHDRAWALS; TOT AL DEPOSITS; CHEQUES ISSUED FOR PURCHASES; CASH WITHDRAWALS FOR PURCHASES; TOTAL WITHDRAWALS ETC. ALONG WITH THE SUBMISSION. HE HAS ALSO FILED COPIES OF CERTAIN ROUGH PAPERS CONTAINING RUBBER STAMPS, D ETAILS OF BALE NO. AND QUANTITY OF GOODS ETC. IN ORDER TO VERIFY THE A DDITIONAL EVIDENCES A LETTER DATED 14.11.2012 WAS SENT AT THE ASSESSEE TO FURNISH FOLLOWING DETAILS: I) DETAILS OF PROP. CONCERNS THROUGH WHICH THE ASS ESSEE HAS CARRIED OUT BUSINESS ACTIVITIES DURING THE YEAR REL EVANT TO A. Y. 2004- 05. A BRIEF NOTE ON BUSINESS ACTIVITIES IN RESPECT OF EACH CONCERN. II) SEPARATE BALANCE SHEET, P & L A/C ALONG WHICH R ELEVANT SCHEDULES/ ANNEXURE IN RESPECT OF EACH CONCERN (INCLUDING M/S. BHAGWATI TEXTILES, M/S. SARASWATI TEXTILES, M/S. SHREE BALAJ I FABRICS AND M/S. TIRUPATI TEXTILES) WITH DETAILS OF BANK ACCOUNTS, B ANK STATEMENTS WITH NARRATION OF EACH DEBIT/CREDIT ENTRY: BANK LEDGER; PURCHASE A/C, SALES A/C; PURCHASE & SALES VOUCHERS/FILE ETC. PLEASE ALS O FURNISH RECONCILIATION OF SALE & PURCHASE THROUGH CHEQUES A S WELL AS IN CASH. PLEASE A/SO FURNISH CASH FLOW STATEMENT TO VERIFY T HE CASH DEPOSITS OUT OF WITHDRAWALS. III] BOOKS OF ACCOUNTS WITH TAX AUDIT REPORT U/S 4 4AB OF THE IT ACT, 1961 WITH RELEVANT ANNEXURE/SCHEDULES. IV) SALES TAX VAT/TIN REGN. NO. ALONG WITH QUARTER LY/MONTHLY STATEMENTS IN RESPECT OF FY 2003-04 FILED WITH THES E DEPARTMENTS ALONG WITH RECONCILIATION OF SALES/PURCHASES. CASE WAS FIXED FOR HEARING ON 19.11.2012. NONE APPEARED ON 19.11.2012 NOR HAD THE REQUIRED DETAILS BEEN FILED ON RECORD. SUBSEQUENTLY , THE ASSESSEE VIDE HIS LETTER DATED 26.11.2012 (RECEIVED BY POST IN TH IS OFFICE ON 29.11.2012) ENCLOSING THEREWITH AN AFFIDAVIT COPIES OF ASSESSEE'S REPLY AND AFFIDAVIT ARE ENCLOSED FOR YOUR KIND PERU SAL. IN HIS AFFIDAVIT DATED 25.11.2012, THE ASSESSEE HAS INDEMNIFIED AS UNDER: 1. 'THAT I AM A INCOME TAX ASSESSEE VIDE PAN NO. AL RPK2900N INCOME TAX WARD 33(4),NEW DELHI. ITA NO.1701/DEL/2013 7 2. THAT DURING THE FINANCIAL YEAR 2003-04, I WAS TH E PROPRIETOR OF THE FOLLOWING PROPRIETORSHIP CONCERNS AS PER DETAIL S GIVEN BELOW: M/S. TIRUPATI TEXTILES M/S. SHREE BALAJI FABRICS M/S. BHAGWATI TEXTILES M/S. SARASWATI TEXTILES M/S. SHREE MAHALAXMI FABRICS 3. THAT WHILE FILING INCOME TAX RETURN FOR A. Y. 2 004-05 CORRESPONDING TO FINANCIAL YEAR 2003-04. I HAD NOT DISCLOSED THE AFORESAID PROPRIETORSHIP CONCERNS IN MY INCOME TAX RETURNS FOR THE A Y 2004-05. 4. THAT THE AFORESAID CONCERNS WERE ENGAGED IN TRAD ING OF FABRICS. 5. THAT THESE CONCERNS WERE HAVING CURRENT ACCOUNT WITH PUNJAB NATIONAL BANK, NEW RAJINDER NAGAR, NEW DELHI. . 6. THAT ALL THE TRANSACTION ENTERED IN THESE BANK A CCOUNTS WERE RELATED TO SALE/PURCHASE OF FABRICS. 7. THAT I HAVE NOT INVESTED ANY SUM OUT OF THESE BA NK ACCOUNTS IN ACQUIRING ANY MOVABLE IMMOVABLE ASSETS DURING THE F INANCIAL YEAR 2003-04. 8. THAT I HAD VOLUNTARILY SURRENDERED A SUM OF RS. 43.33 LAC AS UNDISCLOSED INCOME FROM THESE CONCERNS AS INCOME FR OM TRADING OF FABRICS. 9. THAT I HAD NOT MAINTAINED NO REGULAR BOOKS OF A CCOUNTS OF THESE CONCERNS. 10. THAT SINCE THE BOOKS OF ACCOUNTS WERE NOT MAIN TAINED OF THESE CONCERNS HENCE NO AUDIT AS PER THE PROVISIONS OF SE CTION 4MB OF THE INCOME TAX ACT, 1961 WERE CONDUCTED.' RULES 46A PRESCRIBES FOUR CONDITIONS TO BE FULFILLE D BY THE ASSESSEE FOR GETTING THE BENEFIT OF ADDITIONAL EVIDENCE BEFORE T HE APPELLATE AUTHORITY: (A) WHERE THE ASSESSING OFFICER HAS REFUSED TO ADM IT EVIDENCE WHICH OUGHT TO HAVE BEEN ADMITTED; OR (B) WHERE THE APPELLANT WAS PREVENTED BY SUFFICIEN T CAUSE FROM PRODUCING THE EVIDENCE WHICH HE WAS CALLED UPON TO PRODUCE BY THE ASSESSING OFFICER; OR ITA NO.1701/DEL/2013 8 (C) WHERE THE APPELLANT WAS PREVENTED BY SUFFICIEN T CAUSE FROM PRODUCING BEFORE THE ASSESSING OFFICER ANY EVIDENCE WHICH IS RELEVANT TO ANY GROUND OF APPEAL; OR (D) WHERE THE ASSESSING OFFICER HAS MADE THE ORDER APPEALED AGAINST WITHOUT GIVEN SUFFICIENT OPPORTUNITY TO THE APPELLANT TO ADDUCE EVIDENCE RELEVANT TO ANY GROUND OF APPEAL. ON PERUSAL OF CASE RECORD, IT REVEALS THAT NONE OF THE ABOVE CONDITIONS IS FULFILLED BY THE ASSESSEE. THE ASSESSEE WAS ALLOWED SUFFICIENT OPPORTUNITIES D URING ENQUIRIES AND INVESTIGATION PROCEEDINGS AS WELL AS ASSESSMENT PROCEEDINGS TO EXPLAIN THE SOURCES OF INCOME, NATURE OF TRANSACTIO NS APPEARING IN THE ABOVE MENTIONED BANK ACCOUNTS BUT FAILED TO FURNISH ANY SATISFACTORY REPLY. FURTHER THE ASSESSEE IN HIS AFFIDAVIT HAS AD MITTED THAT ALL THESE CONCERNS ARE OWNED BY HIM AND HE IS AUTHORIZED SIGN ATORIES OF THE BANK ACCOUNTS BEING MAINTAINED IN THE NAME OF THESE CONCERNS. HE HAS NOT DISCLOSED THE INCOME FROM THESE CONCERNS IN HIS INCOME TAX RETURN FOR THE A Y 2004-05. THESE CONCERNS HAD CARR IED OUT BUSINESS ACTIVITIES AND WERE ENGAGED IN TRADING OF FABRICS. HE HAD NOT MAINTAINED REGULAR ACCOUNTS OF THESE CONCERNS. IN COMPLIANCE TO YOUR DIRECTION, A SPECIFIC OPPORTU NITY WAS AFFORDED TO THE ASSESSEE TO FURNISH DOCUMENTARY EVIDENCES IN SUPPORT OF ADDITIONAL FIELD BEFORE YOUR GOODSELF. AGAIN TILE ASSESSEE FAILED TO FURNISH THE DETAILS AS CALLED FOR VIDE THIS OFFICE LETTER DATED 14.11.2012. IN VIEW OF THE FACTS AND IN THE CIRCUMSTANCES OF TH E CASE, THE ASSESSEE SHOULD NOT BE ALLOWED ANY RELIEF ON THE BASIS OF AD DITIONAL EVIDENCES.' 6. AFTER OBTAINING REMAND REPORT, LD. CIT(A) DECIDE D THE ISSUE ON MERITS VIDE PARA 7 & 8 WHICH ARE REPRODUCED BELOW: 7. I HAVE CONSIDERED THE FACTS OF THE CASE, WRITTE N SUBMISSIONS OF THE APPELLANT ON THE ISSUES INVOLVED, ADDITIONAL EVIDEN CES FILED IN THE APPLICATION UNDER RULE 46A, THE ASSESSING OFFICER'S COMMENT THEREON AND THE REJOINDER OF THE APPELLANT. FIRST OF ALL WE WILL DECIDE THE ISSUE OF ADMISSIBILITY OF THE ADDITIONAL EVIDENCE UNDER S UB-RULE (1) OF THE ITA NO.1701/DEL/2013 9 RULE 46A OF THE IT RULES 1962. ON PERUSAL OF MATERI AL ON RECORD, I FIND THAT AT NO STAGE DURING THE COURSE OF ASSESSME NT PROCEEDINGS, THE APPELLANT EVER HAD PROPOSED TO FURNISH THESE EVIDEN CES BEFORE THE ASSESSING OFFICER, WHICH HE NOW SOUGHT TO PRODUCE B EFORE ME IN THE COURSE OF APPELLATE PROCEEDINGS. I ALSO FIND THAT T HE APPELLANT WAS ALLOWED SUFFICIENT OPPORTUNITY DURING THE COURSE OF ENQUIRIES CONDUCTED BY THE INVESTIGATION WING OF THE DEPARTME NT AND THEN IN THE SUBSEQUENT COURSE OF ASSESSMENT PROCEEDINGS TO EXPL AIN THE SOURCE OF DEPOSITS MADE IN THE BANK ACCOUNTS OPERATED BY HIM IN THE NAME OF FIVE CONCERNS. THE APPELLANT HAD ALWAYS BEEN NON-CO MPLIANT OF THE REQUIRED DETAILS. HE DID NOT EVEN FILE ANY RETURN I N RESPONSE TO NOTICE U/S 148 NOR DID HE RESPOND TO NOTICE ISSUED U/S 142 OF THE INCOME-TAX ACT, 1961. THE ASSESSING OFFICER HAD TO COLLECT THE INFORMATION ON HIS OWN U/S 133(6) OF THE INCOME-TAX ACT, 1961. IT WAS ONLY AFTER THE FINAL SHOW CAUSE NOTICE THEN THE APPELLANT REALIZED THAT HE WAS CORNERED BY THE DEPARTMENT AND FURNISHED WRITTEN SUBMISSIONS AN D CAME UP WITH A-EXPLANATION THAT THE CASH DEPOSITS REPRESENTED CA SH SALES MADE BY HIM IN THESE CONCERNS ON WHICH HE OFFERED AN ESTIMA TED ADDITIONAL BUSINESS INCOME OF RS.43,331/- IN A SO CALLED REVIS ED RETURN. 7.1 IN VIEW OF THE ABOVE, I THEREFORE, HOLD THAT T HE APPELLANT'S CASE IS NOT COVERED UNDER THE CIRCUMSTANCES ENUMERATED I N SUB RULE (1) OF RULE 46A AS THE APPELLANT HAS FAILED TO MAKE OUT AN Y CASE THAT HIS CASE WAS COVERED UNDER ANY OF THE EXCEPTIONAL CIRCU MSTANCES ENUMERATED IN SUB RULE (1) OF RULE 46A. 7.2 ON THE MERITS OF THE ADDITIONS MADE AMOUNTING T O RS.84,88,128/- UNDER THE HEAD 'INCOME FROM UNDISCLOSED SOURCES' ON ACCOUNT OF UNEXPLAINED CASH DEPOSITS IN THE BANK ACCOUNT, I FI ND THAT THE APPELLANT DID NOT PRODUCE ANY EVIDENCE IN THE COURS E OF ASSESSMENT PROCEEDINGS TO SUPPORT HIS CONTENTION OF HAVING CAR RIED ON ANY BUSINESS ACTIVITIES IN THE NAME OF THE SAID FIVE CO NCERNS. EVEN IN THE REMAND PROCEEDINGS, THE APPELLANT DID NOT FILE ANY EVIDENCE TO PROVE THAT THE BUSINESS ACTIVITIES WERE CLAIMED TO HAVE B EEN CARRIED OUT. THE ASSESSING OFFICER HAD ASKED THE APPELLANT TO FURNIS H SPECIFIC DETAILS/DOCUMENTS IN SUPPORT OF HIS CLAIM, WHICH TH E APPELLANT AGAIN FAILED TO PRODUCE. THE DECLARATION IN AN AFFIDAVIT FILED BEFORE THE ASSESSING OFFICER IN THE REMAND PROCEEDINGS IN NO W AY ESTABLISHES THE ITA NO.1701/DEL/2013 10 FACT THAT THE APPELLANT WAS CARRYING ON ANY BUSINES S IN THE ABOVE SAID FIVE CONCERNS MORE SO WHEN NO DIRECT EVIDENCE OF CL INCHING NATURE WAS PRODUCED BY THE APPELLANT. I ALSO FIND AND APPR ECIATE THAT DESPITE OF TIME CONSTRAINT, THE ASSESSING OFFICER HAD ALSO AFFORDED A SPECIFIC OPPORTUNITY TO THE APPELLANT TO FURNISH DOCUMENTARY EVIDENCE IN SUPPORT OF THE ADDITIONAL EVIDENCES WHICH WERE SENT TO HIM FOR HIS COMMENTS. 7.3 IN THE INSTANT CASE, I FIND THAT THE APPELLANT HAD FAILED TO PROVIDE ANY LINK WHICH WOULD SHOW THAT CASH DEPOSITS IN THE BANK ACCOUNTS WERE RELATED TO UNDISCLOSED SALES OF THE SAID FIVE CONCERNS. IN THE COURSE OF APPELLATE PROCEEDINGS, THE APPELLANT FILE D SOME PHOTOCOPIES OF UNPRINTED BILLS. THESE UNPRINTED BILLS BEAR THE STAMPS OF TIRUPATI TEXTILE AND SARASWATI TEXTILE. ON SOME BILLS THE ST AMPS WERE ON THE TOP AND ON SOME BILLS IT WAS AT THE BOTTOM OF THE B ILLS. A BARE LOOK OF THESE BILLS REVEAL THAT THESE BILLS ARE NOT GENUINE AND ARE FABRICATED IN ORDER TO GIVE IT A COLOUR OF SALE TRANSACTION VIS-A -VIS THE UNACCOUNTED CASH DEPOSITED IN THE BANK ACCOUNT OF THE SAID FIVE CONCERNS. IT IS ALSO PERTINENTLY MENTIONED THAT BILLS OF THIS NATURE WER E NOT FILED IN RESPECT OF THE OTHER THREE CONCERNS NAMELY M/S. MAHALAXMI F ABRICS, M/S. BHAGWATI TEXTILES AND M/S. SHREE BALAJEE FABRICS. I T MAY NOT BE OUT OF PLACE TO MENTION THAT IN THE RETURN FILED FOR TH E YEAR UNDER CONSIDERATION, THE APPELLANT SHOWED A TOTAL SALE OF RS.3,78,263/- AND DECLARED RS. 76,175/- AS A NET PROFIT IN HIS PROPRI ETARY CONCERN M/S. TUSHAR FABRICS. THEREFORE, CONSIDERING ALL THE FACT S AND CIRCUMSTANCES OF THE CASE, I HOLD THAT THE APPELLAN T HAD FAILED TO ESTABLISH THAT THE CASH DEPOSITS MADE IN THE BANK A CCOUNTS OF THESE SAID FIVE CONCERNS REPRESENTED UNDISCLOSED SALES. T HE APPELLANT COULD NOT ESTABLISH THE GENUINENESS OF THESE FIVE ENTITIE S BY ANY KIND OF EVIDENCE WHATSOEVER. ACCORDINGLY, THE ADDITION OF R S.84,28,128/- MADE BY THE ASSESSING OFFICER AS INCOME OF THE APPE LLANT FROM UNDISCLOSED SOURCES ON ACCOUNT OF UNEXPLAINED CASH DEPOSITS IN THE BANK ACCOUNT IS HEREBY CONFIRMED. 8. WITH REGARD THE ADOPTION OF ALV OF THE PROPERTY R-613, NEW RAJINDER NAGAR, NEW DELHI AT RS.1,80,000/-, I DO NO T FIND ANY REASON TO INTERFERE WITH THE ASSESSING OFFICER'S ACTION ON THIS ISSUE ALSO. THE PROPERTY IS SITUATED IN A POSH COLONY LOCATED IN TH E MIDST OF DELHI AND ITA NO.1701/DEL/2013 11 THE AL V OF RS.15, 000/- PER MONTH ADOPTED BY THE A SSESSING OFFICER IS VERY MUCH REASONABLE AND NOT ON THE HIGHER SIDE. AC CORDINGLY, THE ADDITION OF RS.1,26,000/- MADE TO THE INCOME OF THE APPELLANT AS INCOME FROM HOUSE PROPERTY IS ALSO CONFIRMED. 7. FROM THE ABOVE FACTS AND CIRCUMSTANCES OF THE CA SE, WE FIND THAT THE ASSESSEE COULD NOT SUBSTANTIATE THE TURNOVER OF 5 C ONCERNS EVEN DURING REMAND PROCEEDINGS. THE ASSESSEE HAD CLAIMED DURIN G REMAND PROCEEDINGS THAT NO BOOKS OF ACCOUNT WERE MAINTAINED BY HIM. H OWEVER, WE DO NOT UNDERSTAND AS TO HOW IN THE ABSENCE OF BOOKS OF ACC OUNT, THE ASSESSEE HAD CALCULATED THE NET INCOME FROM ABOVE CONCERNS AND H AD OFFERED THE SAME FOR TAXATION. THEREFORE, THE BASIS OF CALCULATION OF T HE INCOME OFFERED BY ASSESSEE IN THESE FIRMS IS NOT RELIABLE AND CANNOT BE ACCEPTED. WE FURTHER FIND FROM THE REMAND REPORT THAT A.O. IN THE CONCLU DING PARAGRAPH HAS HELD THAT ASSESSEE WAS CARRYING OUT BUSINESS ACTIVITIES BUT SINCE ASSESSEE AGAIN DID NOT COOPERATE WITH A.O. HE REQUESTED LD. CIT(A) TO NOT TO CONSIDER ADDITIONAL EVIDENCES. WE ALSO OBSERVE THAT IN SUCC EEDING YEAR, THE LD. CIT(A) HAS ASSESSED THE INCOME OF ASSESSEE FOR DEPO SITS IN THESE BANK ACCOUNTS TREATING THE ENTRIES REPRESENTING SALES/PU RCHASES & EXPENSES. THE RELEVANT FINDINGS ARE REPRODUCED BELOW: 7.2 I HAVE PERUSED THE BANK ACCOUNTS WHERE THE DEP OSITS/CREDITS AGGREGATING TO RS.L,52,L0,935/- HAVE BEEN MADE/SHOW N. ALMOST ALL MAJOR CREDITS/DEPOSITS, ARE THROUGH BANKING CHANNEL S, THE CREDITS APPEARING IN THE BANK ACCOUNT IS NOTHING BUT TRANSF ER ENTRIES BY CLEARING AND VERY FEW IN CASH. EVEN OUTGOINGS/PAYME NTS FROM THESE ACCOUNTS HAVE BEEN MADE/DONE TO VARIOUS PARTIES APP ARENTLY DEALING IN FABRICS AS EVIDENT FROM THEIR NAMES. CERTAIN CRE DITS ARE ON ACCOUNT OF THE APPELLANT'S BUSINESS CONCERNS TRANSFERS. IN FEW CASES THE CLEARING HAVE BEEN CANCELLED 'DUE TO BOUNCING OF CH EQUES RESULTING REVERSAL OF CREDITS. MAJOR WITHDRAWALS ARE IN CASH AND MAINLY IN FEW ITA NO.1701/DEL/2013 12 DAYS FROM THE DATE OF CREDITS (PREFERABLY IN, 4-5 D AYS). CERTAIN PAYMENTS HAVE BEEN DONE TO TRANSPORTERS ALSO THROUG H CHEQUES FROM THESE BANK ACCOUNTS. I HAVE ANALYZED THE ENTIRE IS SUE IN-DEPTH. THE ADDITION OF PEAK CREDIT IN THE BANK ACCOUNT CAN ONL Y BE MADE WHEN IT IS ESTABLISHED THAT THE OUTGOINGS ARE BEING BROUGHT FN BACK TO MAKE RE-DEPOSIT IN THE BOOK. FURTHER, IT IS NOT THE CLAI M OF THE APPELLANT THAT THE WITHDRAWALS FROM THE BANK ACCOUNT ARE UTILIZED FOR RE-DEPOSITING IN BANK. THUS, IN SUCH A SITUATION, I DO NOT SUBSCR IBE THE THEORY 9F THE PEAK CREDIT IN THE BANK ACCOUNT AS ASSESSABLE INCOM E. FURTHER, THE AO HAS NOT BROUGHT ANY MATERIAL ON THE RECORD; WHIC H MAY SUBSTANTIATE HIS FINDINGS THAT THE ENTIRE DEPOSITS ARE INCOME. 7.3 THE ASSESSMENT RECORD FURTHER REVEALS THAT THE AO HAS TREATED THE CREDITS -AGGREGATING TO RS.L,52,L0,935/- IN THE ABOVE MENTIONED UNDISCLOSED BUSINESS CONCERNS OF THE APPELLANT FOR LEVYING THE PENALTY U/S 271B. ACCORDINGLY, THE AO LEVIED PENALTY OF RS. 76,054/- U/S 27L B VIDE HIS ORDER DATED 26.092013 AFTER TAKING APPROVA L OF THE JT. CIT. HOWEVER, DISCLOSED SALES OF RS.37,92,487/- OF M/S. TUSHAR FABRICS REMAINS TO BE CONSIDERED FOR THE PENALTY. BY LEVYIN G PENALTY, THE AO AND THE RANGE HEAD HAVE CATEGORICALLY ADMITTED THAT BANK CREDITS AGGREGATING TO RS.L,52,10,935/- IS NOTHING BUT THE APPELLANT'S BUSINESS TURNOVER AND THEREFORE, THE ENTIRE SALE CONSIDERATI ON CANNOT BE TAXED AS SUCH. AT MOST, INCOME EMBEDDED THEREIN REQUIRES TO BE TAXED IN ADDITION TO OTHER INCOME AS DISCUSSED HEREINAFTER. THEREFORE, IN VIEW OF ABOVE FACTS, I AM INCLINED TO AGREE WITH THE A.O . / JT. CIT THAT THE DEPOSITS AND WITHDRAWALS IN THE ABOVE MENTIONED BAN K ACCOUNTS ARE BUSINESS TRANSACTIONS. HERE, THE DEPOSITS IN THE B ANK ACCOUNTS APPEAR SALE CONSIDERATION (95% OF THESE ARE THROUGH BANK D EALINGS) AND OUT GOINGS ARE EXPENDITURE GETTING REFLECTED IN STOCK I N TRADE, ETC. 7.4 I HAVE PERUSED THE P & L ACCOUNT AND THE BALAN CE SHEET TO M/S TUSHAR FABRICS PLACED ON THE ASSESSMENT RECORD. ACC ORDING TO WHICH, THE SALES, CLOSING STOCK AND DEBTORS ARE RS.37,92,4 87/-; RS.1,65,413/- AND RS.6,22,587/- RESPECTIVELY. THIS FACT INDICATES THAT THE ENTIRE SALE CONSIDERATION IS NOT REALIZED WITHI N THE VEER AND THE APPELLANT IS BOUND TO HAVE CERTAIN STOCK IN TRADE A ND DEBTORS IN HIS DISCLOSED BUSINESS CONCERN; NAMELY, M/S. TUSHAR FA BRICS. SIMILARLY, THE APPELLANT IS BOUND TO HAVE STOCK IN TRADE AND D EBTORS IN RESPECT OF HIS UNDISCLOSED / UNACCOUNTED BUSINESS. TAKING THE DUE EMERGED FROM THE ABOVE-DETAILS OF ACCOUNTED BUSINESS: I AM OF TH E CONSIDERED VIEW ITA NO.1701/DEL/2013 13 THAT THE APPELLANT IS-BOUND TO HAVE CLOSING STOCK A ND DEBTORS IN RESPECT OF HIS UNACCOUNTED BUSINESS WHOSE ADMITTED TURNOVER IS RS.1,52,10,935/-. AS PER THE BOOKS OF ACCOUNT, THE RATIO OF CLOSING STOCK PLUS DEBTORS TO THE SALES IS 20.78% (CLOSING STOCK OFRS.1,65,413/- PLUS DEBTORS OF RS.6,22,578/- DIVID ED BY RS.37,92,487/-). APPLYING THIS RATIO TO THE ADMITT ED UNDISCLOSED SALES OF RS.1,52,10,935/-, THE UNEXPLAINED INVESTMENT IN BUSINESS IN RESPECT OF LOSING STACK AND DEBTORS, WORKS OUT TO RS.31,60 ,480/-, WHICH DOES NOT, GET REFLECTED FROM THE UNDISCLOSED BANK ACCOUN T. THE CASH DEPOSITS IN THE ABOVE MENTIONED BANK ACCOUNTS ONLY REJECT THE REALIZED SALES AND NOT THE STOCK IN TRADE AND DEBTORS. SINCE THE APPELLANT HAS NOT BEEN SEARCHED; THEREFORE, THERE IS NO DETAIL IN RESPECT OF UNDISCLOSED ASSETS IN ANY FORM. 7.5 THE INCOME OF THE APPELLANT HAS TO BE WORKED OU T ON ACCRUAL BASIS OR ASSET-EXPENDITURE BASIS AND HIGHER OF THESE TWO HAS TO BE ASSESSED TO AVOID DOUBLE TAXATION AS THE INCOME ON ACCRUAL/R ECEIPT BASIS, LATER ON, GETS APPROPRIATED/MANIFESTED/EXPENDED IN ASSETS AND OR EXPENDITURE. PRESUMING THAT THE APPELLANT HAS UTIL IZED HIS BUSINESS ESTABLISHMENT TO RUN THE UNDISCLOSED BUSINESS ALSO, THEN IN SUCH A SITUATION, HE IS BOUND TO HAVE THE STOCK IN TRADE A ND DEBTORS AS UNDISCLOSED ASSETS OF HIS UNDISCLOSED/ UNACCOUNTED BUSINESS. THE AGGREGATE OF UNEXPLAINED INVESTMENT OF RS.31,60,480 /- IN CLOSING STOCK & DEBTORS IN THE UNDISCLOSED/UNACCOUNTED BUSI NESS AND INCREASE OF RS. 1,23,259/- [(I) BALANCE OF RS. 22,705/- AS O N 31.03.2005 MINUS RS. 1,370/- BALANCE AS ON 01.04.2004 IN BANK ACCOUN T OF TIRUPATI TEXTILES, (II) BALANCE OF RS. 91/706/- AS ON 31.03. 2005 MINUS RS.1,952/- BALANCE AS ON 01.04.2004 IN BANK ACCOUNT OF SHRI BALAJI FABRICS, (III) BALANCE OF RS.7I32-~S:37/- AS ON 3-1 .03.200.5 MINUS RS. 10.,04,284/- BALANCE AS ON O.L~04.2004 IN BANK ACCO UNT OF SHREEMAH LAXMI FABRICS (IV) BALANCE OF RS.495/- AS- ON 31.0 3.2005 MINUS RS. 22,315/- BALANCE AS ON 01.0.4.200.4 IN BANK ACCOUN T OF BHAGAWTI TEXTILES AND (V) BALANCE OF RS.2,61,811J- AS ON 31. 0.3.-2005 MINUS, RS.84/- BALANCE AS ON 0.1.0.4.2004 IN BANK ACCOUNT OF SARASWTI TEXTILES) IN THE BANK BALANCE OF ABOVE MENTIONED 'F IVE BANK ACCOUNTS, WHICH WORKS OUT TO RS. 32,83,739/- IS THE INCOME OF THE APPELLANT ON ASSET- EXPENDITURE BASIS. ALTERNATIVELY, FOLLOWING THE GROSS PROFIT (GP) RATE OF 20.75% ''AS PER THE BOOKS OF ACCOUNT O F THE APPELLANT THE GROSS PROFIT ON ADMITTED UNDISCLOSED SALES OF RS.L~ 52,LO.I935/- IS ITA NO.1701/DEL/2013 14 WORKED OUT TO RS.31,60,832/-, WHICH IS INCOME ON AC CRUAL / RECEIPT BASIS. SINCE THE INCOME OF THE APPELLANT WORKED OUT ASSET EXPENDITURE BASIS IS HIGHER THAN THE INCOME ON ACCRUAL/REEE.IPT BASIS THEREFORE, I AM OF THE CONSIDERED VIEW THAT THE APPELLANT'S INCO ME FROM ADMITTED UNACCOUNTED/ UNDISCLOSED BUSINESS IS RS.32,83,739/- , WHICH REQUIRES TO BE ASSESSED OVER AND ABOVE THE INCOME SHOWN IN T HE ROI. ACCORDINGLY, I ORDER SO. 8. THE ENTRIES IN SUCCEEDING YEAR ARE IN THE SAME BANK ACCOUNTS AS IN THE PRESENT YEAR AND BUSINESS ENTITIES ALSO REMAIN THE SAME LD. CIT(A) IN ASSESSMENT YEAR 2005-06 HAS DECIDED THE APPEAL OF A SSESSEE HOLDING THE TRANSACTION AS BUSINESS TRANSACTION, THEREFORE, WE ARE OF THE OPINION THAT IN THE PRESENT YEAR ALSO, THE INCOME OF ASSESSEE FROM THESE FIVE CONCERNS SHOULD BE CALCULATED AS PER METHOD ADOPTED BY LD. CIT(A) I N ASSESSMENT YEAR 2005-06. THEREFORE, THE CASE OF THE ASSESSEE IS RE MITTED BACK TO THE OFFICE OF LD. CIT(A) WHO AFTER AFFORDING REASONABLE OPPORTUNI TY TO THE ASSESSEE SHOULD DECIDE AS PER METHOD ADOPTED IN ASSESSMENT Y EAR 2005-06. 9. IN VIEW OF THE ABOVE, GROUNDS NO.4 TO 7 OF THE A PPEAL FILED BY THE ASSESSEE ARE ALLOWED FOR STATISTICAL PURPOSES. THE LD. A.R. HAD NOT ARGUED ON GROUNDS NO.1 TO 3 THEREFORE, THE SAME ARE DISMIS SED AS NOT PRESSED. LD. A.R. HAS ALSO NOT ARGUED GROUND NO.8 THEREFORE, SAM E IS DISMISSED AS NOT PRESSED. 10. IN VIEW OF THE ABOVE, APPEAL FILED BY THE ASSES SEE IS ALLOWED FOR STATISTICAL PURPOSE. 11. ORDER PRONOUNCED IN THE OPEN COURT ON 28 TH NOV., 2014. SD./- SD./- ( I. C. SUDHIR) (T.S . KAPOOR) JUDICIAL MEMBER ACCOUNTANT MEMBER DATE: 28 TH NOV., 2014 ITA NO.1701/DEL/2013 15 SP COPY FORWARDED TO:- 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT 4. THE CIT (A)-, NEW DELHI. 5. THE DR, ITAT, LOKNAYAK BHAWAN, KHAN MARKET, NEW DEL HI. TRUE COPY. BY ORDER (ITAT, NEW DELHI). S.NO. DETAILS DATE INITIALS DESIGNATION 1 DRAFT DICTATED ON SR. PS/PS 2 DRAFT PLACED BEFORE AUTHOR SR. PS/PS 3 DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER JM/AM 4 DRAFT DISCUSSED/APPROVED BY SECOND MEMBER AM/AM 5 APPROVED DRAFT COMES TO THE SR. PS/PS SR. PS/PS 6 KEPT FOR PRONOUNCEMENT SR. PS/PS 7 FILE SENT TO BENCH CLERK SR. PS/PS 8 DATE ON WHICH THE FILE GOES TO HEAD CLERK 9 DATE ON WHICH FILE GOES TO A.R. 10 DATE OF DISPATCH OF ORDER