M/s. Baroda Conductors Pvt. Ltd., Ahmedabad V. The Dy.CIT, Circle-1(1), Baroda

ITA 171/AHD/2014

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 8190 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 9 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-10-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 13-07-2017
• Assessment Year: 2007-2008
• Appeal Filed On: 17-01-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: ANIL R SHAH
• Keywords: Unexplained cash credit; Business income; Revised return
• Section: 147; 68; 148

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD A BENCH (BEFORE SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER & SHRI MAHAVIR PRASAD, JUDICIAL MEMBER) ITA. NO: 171/AHD/2014 (ASSESSMENT YEAR: 2007-08) M/S. BARODA CONDUCTORS PVT. LTD., G-2, RUSHI APARTMENT, NR. VIZA COURT, SAYEED VASNA ROAD, BARODA V/S DY. COMM. OF INCOME TAX, CIRCLE-1(1), BARODA (APPELLANT) (RESPONDENT) PAN: AAACB8653R APPELLANT BY : SHRI ANIL R. SHAH, AR RESPONDENT BY : SHRI K. MADHUSUDAN, SR. D.R. ( )/ ORDER DATE OF HEARING : 25 -10-201 7 DATE OF PRONOUNCEMENT : 27 -10-2017 PER N.K. BILLAIYA, ACCOUNTANT MEMBER: 1. THIS APPEAL BY THE ASSESSEE IS PREFERRED AGAINST TH E ORDER OF THE LD. CIT(A)-I, BARODA DATED 01.11.2013 PERTAINING TO A.Y. 2007-08. ITA NO . 171 /AHD/2014 . A.Y. 2007-0 8 2 2. THE ASSESSEE HAS RAISED TWO SUBSTANTIVE GROUNDS OF APPEAL. BY GROUND NO. 1, THE ASSESSEE HAS CHALLENGED THE VALIDITY OF THE NOT ICE ISSUED U/S. 148 OF THE ACT AND BY GROUND NO. 2, THE ASSESSEE HAS CHALLENGED TH E MENTIONING OF SECTION 68 OF THE ACT WHILE MAKING THE ADDITION OF RS. 26,26,3 22/-. 3. AT THE VERY OUTSET, THE LD. COUNSEL FOR THE ASSESSE E STATED THAT HE IS NOT PRESSING GROUND NO. 1 AND THE SAME IS DISMISSED AS NOT PRESS ED. 4. COMING TO THE GRIEVANCE RAISED VIDE GROUND NO. 2, T HE FACTS SHOWS THAT THE ASSESSEE WAS HAVING UNDISCLOSED BANK ACCOUNT WHICH FACT HAS BEEN ACCEPTED BY THE ASSESSEE DURING THE COURSE OF INVESTIGATION. WH EN THE ASSESSEE WAS CONFRONTED WITH THE BANK ACCOUNTS, THE ASSESSEE ACC EPTED THAT THE BANK ACCOUNTS ARE NOT SHOWN IN THE BALANCE SHEET AND WER E NOT PART OF THE BOOKS OF ACCOUNTS OF THE ASSESSEE. THE ASSESSEE ACCEPTED THA T THE AMOUNT CREDITED IN THESE BANK ACCOUNTS WERE UNACCOUNTED AND UNDISCLOSE D INCOME OF THE ASSESSEE. 5. THE ASSESSEE FURTHER POINTED OUT THAT SINCE THE PER IOD OF LIMITATION FOR FILING THE REVISED RETURN OF INCOME HAS BEEN EXPIRED BUT O UT OF ABUNDANT PRECAUTION, THE ASSESSEE HAS ALREADY PAID TAXES AND INTEREST ON THE AMOUNT FOUND TO BE UNDISCLOSED INCOME IN THE BANK ACCOUNT OF THE ASSES SEE. TO REGULARIZE THE CONTENTION OF THE ASSESSEE, THE ASSESSMENT WAS REOP ENED U/S. 147 OF THE ACT AND THE ASSESSEE COMPANY REVISED ITS COMPUTATION OF INCOME ADDING RS. 26,26,322/- IN ITS TOTAL INCOME AND THE TAXES WERE ACCORDINGLY PAID. THE ONLY POINT OUT DISPUTE IS THAT WHILE MAKING THE ADDITION OF RS. 26,26,322/-, THE A.O. HAS TREATED THE SAME AS UNEXPLAINED CASH CREDIT U/S . 68 OF THE ACT. ITA NO . 171 /AHD/2014 . A.Y. 2007-0 8 3 6. BEFORE US, THE LD. COUNSEL FOR THE ASSESSEE VEHEMEN TLY STATED THAT SINCE THE ASSESSEE IS CARRYING ON BUSINESS, THEREFORE ANY AMO UNT FOUND TO BE DEPOSITED IN THE BANK ACCOUNT SHOULD HAVE BEEN CONSIDERED AS THE BUSINESS INCOME OF THE ASSESSEE. 7. WE FIND FORCE IN THE CONTENTION OF THE LD. COUNSEL. THE LD. COUNSEL WAS FAIR ENOUGH IN NOT QUESTIONING THE ADDITION BUT THE SECT ION UNDER WHICH THE ADDITIONS HAVE BEEN MADE IS QUESTIONED. IN OUR CONS IDERED OPINION, SINCE THE ASSESSEE IS UNDOUBTEDLY CARRYING ON BUSINESS AND MA INTAINING REGULAR BOOKS OF ACCOUNTS FOR ITS BUSINESS ANY AMOUNT FOUND UNEXPLAI NED IN THE BANK ACCOUNT SHOULD BE TREATED AS BUSINESS INCOME OF THE ASSESSE E. 8. THE ADDITION OF RS. 26,26,322/- STANDS CONFIRMED AS UNDISCLOSED BUSINESS INCOME OF THE ASSESSEE. APPEAL IS ACCORDINGLY ALLOW ED. ORDER PRONOUNCED IN OPEN COURT ON 27 - 10- 20 17 SD/- SD/- (MAHAVIR PRASAD) (N. K. BILLAIYA) JUDICIAL MEMBER TRUE COPY ACCOUNTANT MEMBER AHMEDABAD: DATED 27 /10/2017 RAJESH COPY OF THE ORDER FORWARDED TO: - 1. THE APPELLANT. 2. THE RESPONDENT. 3. THE CIT (APPEALS) 4. THE CIT CONCERNED. 5. THE DR., ITAT, AHMEDABAD. 6. GUARD FILE. BY ORDER DEPUTY/ASSTT.REGISTRAR ITAT,AHME DABAD