The ACIT- 1(2), Bhopal V. Arihant Coal Sales India Pvt. Ltd., Bhopal

ITA 179/IND/2013

• Counselvise Citation: 17922714 RSA 2013
• Duration Of Justice: 6 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-10-2013
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2009-2010
• Appeal Filed On: 04-04-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R A VERMA
• Assessee Lawyers: H P VERMA; N D PATWA
• Section: 2

Judgement Text

1 INCOME TAX APPELLATE TRIBUNAL INDORE BENCH, INDORE BEFORE SHRI JOGINDER SINGH, JUDICIAL MEMBER AND SHRI R.C. SHARMA, ACCOUNTANT MEMBER ITA NO. 179/IND/2013 A.Y. 2009-10 ASSTT. COMMISSIONER OF INCOME TAX 1(2) BHOPAL :: APPELLANT VS ARIHANT COAL SALES INDIA P. LTD. BHOPAL PAN AAFCA0718F :: RESPONDENT ASSESSEE BY SHRI H.P.VERMA AND SHRI N.D.PATWA REVENUE BY SHRI R.A. VERMA DATE OF HEARING 25.10.2013 DATE OF PRONOUNCEMENT 25.10.2013 O R D E R PER JOGINDER SINGH, JUDICIAL MEMBER THE ONLY GROUND RAISED IN THIS APPEAL PERTAINS TO DELETING THE ADDITION OF RS.55,50,000/- MADE ON ACCOUNT OF INVES TMENT U/S 69B 2 CHALLENGING THE ORDER OF THE LEARNED CIT(A), BHOPAL DATED 15.1.2013. 2. THE CRUX OF ARGUMENTS ON BEHALF OF THE REVENUE I S IN SUPPORT TO THE ADDITION MADE BY THE ASSESSING OFFICER WHERE AS THE LEARNED COUNSEL FOR THE ASSESSEE DEFENDED THE IMPUGNED ORDE R BY SUBMITTING THAT THE AMOUNT OF RS.55,50,000/- WAS EX PENDITURE OF MR. ANIL JAIN FOR CONSTRUCTION OF HIS HOUSE WHICH W AS RETURNED AND SURRENDERED IN HIS INDIVIDUAL RETURN OF INCOME FOR WHICH OUR ATTENTION WAS INVITED TO PAPER BOOK PAGE 3 AND THE FINDING OF THE LEARNED CIT(A). FOR THE REMAINING AMOUNT IT WAS ACC EPTED BY THE ASSESSEE THAT DUE TO MISPOSTING THE SAME COULD NOT BE SHOWN IN THE RETURN AND THE ASSESSEE AGREED TO PAY THE TAX ON TH E SAME. 3. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS AND PER USED THE MATERIAL AVAILABLE ON RECORD. THE FACTS, IN BRIEF, ARE THAT THE ASSESSEE, A PRIVATE LIMITED COMPANY, ENGAGED IN TH E BUSINESS OF COAL TRADING TO VARIOUS CORPORATES, DECLARED TOTAL INCOME OF RS.4,61,76,844/- AND FILED E-RETURN. SURVEY U/S 13 3A OF THE ACT WAS CONDUCTED AT THE BUSINESS PREMISES OF THE ASSES SEE ON 28.1.2009 WHEREIN TWO HAND-WRITTEN BOOKS WERE FOUND CONTAINING 3 ENTRIES. AS PER THE REVENUE, THESE ENTRIES WERE NO T ENTERED IN THE REGULAR BOOKS OF ACCOUNTS OF THE ASSESSEE. THE MANA GER OF THE ASSESSEE SURRENDERED RS.2,05,52,000/- AS UNEXPLAINE D EXPENDITURE/INVESTMENT. OUT OF THIS SURRENDERED AMO UNT, THE ASSESSEE CLAIMED THAT SHRI ANIL KUMAR JAIN, PROPRIE TOR, ARIHANT SALES CORPORATION, HAS DECLARED RS. 55,50,000/- AS HIS ADDITIONAL INCOME IN HIS INDIVIDUAL RETURN FOR THE A.Y. 2009-1 0. THE ASSESSING OFFICER DID NOT ACCEPT THIS EXPLANATION. 3. DURING THE FIRST APPELLATE STAGE, THE IDENTICAL CLAIM WAS MADE BY THE ASSESSEE AND THE BALANCE AMOUNT OF RS.1,50,0 0,000/- WAS SURRENDERED IN THE NAME OF THE ASSESSEE AND SHRI AN IL JAIN, PROMOTER OF THE COMPANY, AGREED FOR THE ADDITION. T HE LEARNED CIT(A) VERY JUSTIFIABLY CONSIDERED THE SUBMISSIONS AND FOUND THAT SHRI ANIL KUMAR JAIN DECLARED TOTAL TAXABLE INCOME AT RS. 1,33,89,462/- AND PAID TAX ON THE SURRENDERED INCOM E OF RS. 55,50,000/- AT THE MAXIMUM RATE OF 30% WHICH IS ALS O AN APPLICABLE RATE FOR THE COMPANY, THUS THERE IS NO L OSS TO THE REVENUE. THE STATEMENT OF TOTAL INCOME OF SHRI ANIL KUMAR JAIN HAS BEEN REPRODUCED AT PAGE 5 OF THE IMPUGNED ORDER. I N VIEW OF THESE 4 FACTS, WE ARE OF THE CONSIDERED OPINION THAT NO DOU BLE ADDITION IS WARRANTED, THEREFORE, WE FIND NO JUSTIFICATION TO I NTERFERE WITH THE CONCLUSION DRAWN BY THE LEARNED CIT(A). IT IS AFFI RMED. FINALLY, THE APPEAL OF THE REVENUE IS DISMISSED. THIS ORDER WAS PRONOUNCED IN THE OPEN COURT IN THE PRESENCE OF LD. REPRESENTATIVES FROM BOTH SIDES AT THE CONCL USION OF THE HEARING ON 25.10.2013. SD/- SD/- (R.C.SHARMA) (JOGINDER SINGH ) ACCOUNTANT MEMBER JUDICIAL ME MBER DATED: 25.10.2013 COPY TO: APPELLANT, RESPONDENT, CIT, CIT(A), DR, GU ARD FILE VYAS-