Shri A. Ramesh Kumar, CHENNAI V. ACIT, Trichy

ITA 181/CHNY/2014

• Counselvise Citation: 18121714 RSA 2014
• Duration Of Justice: 2 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-04-2014
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: D
• Next Hearing Date: 03-04-2014
• Assessment Year: 2009-2010
• Appeal Filed On: 20-01-2014
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: HARI RAO IRS
• Keywords: Unexplained cash credit
• Section: 143(3); 68

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH, CHENNAI . , . . , ! ' BEFORE SHRI A.MOHAN ALANKAMONY, ACCOUNTANT MEMBER & SHRI S.S. GODARA, JUDICIAL MEMBER ./ I.T.A. NO. 181/MDS/2014. ( / ASSESSMENT YEAR : 2009-2010) SHRI. A. RAMESH KUMAR NEW NO.45, AGRAHARAM, ARANTHANGI 614616. [PAN:ACFPR5984D] ( #$ /APPELLANT) VS THE ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE III, TRICHY. ( %&#$ /RESPONDENT) / APPELLANT BY : SHRI. PHILIP GEORGE, ADVOCATE / RESPONDENT BY : SHRI. HARI RAO, IRS, JCIT. /DATE OF HEARING : 03.04.2014. ! /DATE OF PRONOUNCEMENT : 10.04.2014 ' / O R D E R PER S.S. GODARA, JUDICIAL MEMBER THIS ASSESSEES APPEAL ARISES FROM O RDER OF THE COMMISSIONER OF INCOME TAX (APPEALS), TIRUCHIRAPALL I DATED 05.09.2013, PASSED IN ITA NO.231/2011-12/CIT(A)/TRY FOR ASSESSMENT I.T.A.NO.181/MDS/2014 :- 2 -: YEAR 2009-2010, IN PROCEEDINGS UNDER SECTION 143(3) OF THE INCOME TAX ACT 1961 [IN SHORT THE ACT]. 2. A PERUSAL OF THE GROUNDS RAISED REVEALS THAT THE A SSESSEES GRIEVANCE APPEARS TO BE THREE FOLDED I.E. HE CHALLE NGES ACTION OF THE CIT(A) IN NOT TREATING ENTIRE SUM OF F25,00,000/- AS CONSIDERATION FROM SALE OF AGRICULTURAL LAND LEADING TO ADDITION UNDER SECTION 68 IN THE NATURE OF UNEXPLAINED CREDITS OF F14,35,800/- . HIS LAST SUBSTANTIVE PLEA IS THAT SINCE THE LAND SOLD IS AGRICULTURAL, L ONG TERM CAPITAL GAIN OF F9,93,555/- OUGHT NOT TO HAVE BEEN UPHELD IN THE LO WER APPELLATE PROCEEDINGS. 3. IN THE COURSE OF HEARING, THE ASSESSEE IS FAIR ENOU GH TO CLARIFY THAT ALL THREE ISSUES ARISE FROM SALE OF THE VERY C HUNK OF LAND. SO, WE DISPOSE ALL GROUNDS BY A CONSOLIDATED ORDER INSTEAD OF DECIDING THEM SEPARATELY. 4. THE ASSESSEE IS AN INDIVIDUAL; ENGAGED IN MONEY L EADING BUSINESS. ON 07.09.2009, HE HAD FILED HIS RETURN DECLARING TOTAL INCOME OF F26,45,075/- WHICH WAS SUMMARILY PROCES SED. IN SCRUTINY, THE ASSESSING OFFICER NOTICED THE ASSES SEE TO HAVE PURCHASED LAND ALONGWITH HIS BROTHER FOR F60,00,000 /-. HIS CASH FLOW STATEMENT ALSO STATED A SUM OF F25,00,000/- TO HAV E BEEN RECEIVED ON I.T.A.NO.181/MDS/2014 :- 3 -: ACCOUNT OF SALE OF ANOTHER LAND IN VILLAGE AVUDAYAR KOIL, TOWN PANCHAYAT ARANTHANGI. THE ASSESSEE HAD CALCULATED CAPITAL GAINS TO THE TUNE OF F24,29,355/-. IN HIS VIEW, SINCE THE L AND WAS AGRICULTURAL, THESE CAPITAL GAINS WERE EXEMPTED FROM BEING TAXED. IN ASSESSMENT ORDER DATED 30.12.2011, THE ASSESSING OFFICER DID N OT AGREE WITH THE ABOVE SAID EXPLANATION AND OBSERVED THAT ACCORDING TO SUB-REGISTRAR CONCERNED AND PER SALE DOCUMENTS FILED, LAND IN QUE STION WAS SOLD FOR F10,64,200/- ONLY. HE FURTHER HELD LAND SOLD TO BE NON AGRICULTURAL BEING LOCATED IN NOTIFIED AREA OF THE TOWN PANCHA YAT. ON BEING GRANTED OPPORTUNITY, THE ASSESSEE HAD FAILED TO PRO VE THAT HE HAD RECEIVED BALANCE SUM OF F14,35,800/- I.E F 25,00,00 0/- - 10,64,200/-. IN THIS MANNER, THE ASSESSING OFFICER ADDED THE ABO VE SAID AMOUNT OF F14,35,800/- AS UNEXPLAINED CASH CREDITS U/S 68 AND ALSO COMPUTED CAPITAL GAINS OF F9,93,555/- IN ASSESSEES TAXABLE INCOME. 5. IN ASSESSEES APPEAL, THE CIT(A) HAS UPHELD THE FIN DINGS OF THE ASSESSING OFFICER. THEREFORE, THE ASSESSEE IS IN APPEAL. 6. WE HAVE HEARD BOTH PARTIES AND GONE THROUGH THE CAS E FILE. IT IS MADE CLEAR THAT NO EVIDENCE OR PAPER BOOK HAS BEEN FILED BEFORE US TO REPEL FINDINGS AFFIRMED BY THE CIT(A) THAT THE ASSE SSEE HAD NOT I.T.A.NO.181/MDS/2014 :- 4 -: RECEIVED SALE CONSIDERATION OF F 25,00,000/- AND TH E LAND SOLD IS NOT AGRICULTURAL. IN THIS BACKDROP AND IN ABSENCE OF C OGENT EVIDENCE, WE DO NOT DEEM IT PROPER TO DIFFER WITH FINDINGS OF TH E LOWER APPELLATE AUTHORITIES UNDER CHALLENGE QUA ALL THREE ISSUES(SU PRA). IT IS MADE CLEAR THAT ALL ASSESSEES PLEAS ARE FACTUAL GROUNDS WHICH CANNOT BE ACCEPTED WITHOUT ANY EVIDENCE FILED. THUS, WE CONFI RM IMPUGNED ADDITIONS AND REJECT ALL GROUNDS RAISED BY THE ASSE SSEE. 7. IN RESULT, THE ASSESSEES APPEAL IS DISMISSED. ORDER PRONOUNCED ON THURSDAY, THE 10 TH OF APRIL, 2014, AT CHENNAI. SD/- SD/- ( . ) ( . . ) ! (A.MOHAN ALANKAMONY) ACCOUNTANT MEMBER (S.S. GODARA) JUDICIAL MEMBER '# /CHENNAI, $% /DATED, THE , 2014 OF 10 TH APRIL. KV %& '( )( /COPY TO: 1. * APPELLANT 2. /RESPONDENT 3. + ( )/CIT(A) 4. + /CIT 5. (,- . /DR 6. -/ 0 /GF. I.T.A.NO.181/MDS/2014 :- 5 -: