Shri Vishwas Vyankatrao Ingale, Ahmedabad V. The Income Tax Officer, Ward-5(3), Baroda

ITA 1913/AHD/2016

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 1392 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 10 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-06-2019
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2009-2010
• Appeal Filed On: 20-07-2016
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Unexplained investment; Corroborative evidences
• Section: 143(3); 142(1); 143(2)

Judgement Text

, SMC IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH, AHMEDABAD BEFORE SHRI RAJPAL YADAV, JUDICIAL MEMBER &SHRI AMARJIT SINGH, ACCOUNTANT MEMBER ./I.T.A. NO. 1913/AHD/2016 ( / ASSESSMENT YEAR:2009-10) SHRI VISHWAS VYANKATRAO INGALE PROP. OF AKAAR OFFSET SB-1, TOWER-A, KUNJ PLAZA NEXT TO POLO CLUB OPP. RAJMAHAL PALACE BARODA- 390001 / VS. ITO WARD-5(3) BARODA ./ ./PAN/GIR NO. : AAC PI9 218 C ( /APPELLANT ) .. ( / RESPONDENT ) / APPELLANT BY : SHRI KINJAL SHAH, A.R. / RESPONDENTBY: SHRI VIRENDRA SINGH, SR. DR !' /DATE OFHEARING 11/06/2019 #$!' / DATE OF PRONOUNCEMENT 14/06/2019 %& /O R D E R PER AMARJIT SINGH - AM: THE APPEAL FILED BY THE ASSESSEE FOR A.Y. 2009-10, ARISE FROM ORDER OF THE CIT(A)-3, VADODARA DATED 02.05.2016, IN PROCEEDINGS UNDER SECTION 143(3) OF THE INCOME TAX ACT, 1961; IN SHORT THE ACT. 2. THE BRIEF FACT IS THAT THE ASSESSEE HAS FILED RET URN OF INCOME ON 30.09.2009 DECLARING TOTAL INCOME AT RS. 2,81,521/-. SUBSEQUE NTLY THE CASE WAS SELECTED UNDER SCRUTINY BY ISSUING OF NOTICE U/S. 143(2) OF THE AC T ON 18.08.2010. THE RELEVANT FACTS OF THE CASE WERE DISCUSSED WHILE ADJUDICATING THE GROUND OF APPEAL FILED BY THE ASSESSEE AS UNDER. ITA NO. 1913/AHD/2016 A.Y. 2009-10 2 GROUND OF APPEAL NO. 1& 2:- 3. BOTH THESE GROUND OF APPEAL ARE INTERCONNECTED T O THE ISSUE OF DISALLOWANCE OF RS. 5,62,200/- BEING 10% OF EXPENSES LIKE PRINTI NG MATERIAL, JOB WORKS EXPENSES, STATIONERY, LABOUR CHARGES ETC. FOR WANT OF SUPPORTING BILL, VOUCHERS. THEREFORE, THESE TWO GROUNDS OF APPEAL ARE ADJUDICAT ED TOGETHER. DURING ASSESSMENT ON VERIFICATION OF THE RECORD TH E ASSESSING OFFICER HAS NOTICED THAT ASSESSEE FURNISHED COPY OF BALANCE SHE ET, PROFIT AND LOSS ACCOUNT ALONG WITH TAX ORDER REPORT. ON VERIFICATION OF THE VARI OUS SCHEDULE AS WELL AS PROFIT AND LOSS ACCOUNT THE AO HAS NOTICED THAT ASSESSEE HAS D EBITED VARIOUS EXPENSES TO THE PROFIT AND LOSS ACCOUNT. IN ORDER TO VERIFY THE GE NUINENESS OF THE EXPENSES CLAIMED BY THE ASSESSEE THE AO HAS ASKED THE ASSESSEE TO FU RNISH SUPPORTING EVIDENCES I.E. BILL/VOUCHER ETC. IN SPITE OF GIVING A NUMBER OF O PPORTUNITIES THE ASSESSEE HAS FAILED TO FURNISH THE SUPPORTING BILL AND VOUCHER A S REQUIRED BY THE AO. CONSEQUENTLY, THE AO HAS HELD THAT IN THE ABSENCE O F SUPPORTING BILL AND VOUCHER THE GENUINENESS OF THE VARIOUS EXPENDITURE COULD NO T BE VERIFIED. THEREFORE, THE AO HAS DISALLOWED 10% OF THE EXPENSES TO THE AMOUNT OF RS. 5,62,200/-. 4. AGGRIEVED ASSESSEE HAS FILED BEFORE THE LD. CIT(A ). THE LD. CIT(A) HAS DISMISSED THE APPEAL OF THE ASSESSEE. 5. WE HAVE HEARD THE RIVAL CONTENTION ON THIS ISSUE AND PERUSED THE MATERIAL ON RECORD CAREFULLY. THE ASSESSEE HAS CLAIMED DIRECT A ND INDIRECT EXPENDITURE TO THE AMOUNT OF RS. 5,62,200/- IN THE PROFIT AND LOSS ACC OUNT. DURING THE COURSE OF ASSESSMENT AO HAS GIVEN A NUM BER OF OPPORTUNITIES TO THE ASSESSEE TO PRODUCE BILL AND VOUCHER AND BOOKS OF ACCOUNT TO VERIFY THE GENUINENESS OF THESE EXPENSES. HOWEVER, THE ASSESS EE HAS FAILED TO MAKE ITA NO. 1913/AHD/2016 A.Y. 2009-10 3 NECESSARY COMPLIANCE. THEREAFTER DURING THE COURSE OF APPELLATE PROCEEDING BEFORE THE LD.CIT(A) THE CASE OF THE ASSESSEE WAS REMANDED TO THE AO TO VERIFY THE CLAIM OF THE ASSESSEE ON THE BASIS OF DETAIL/INFORMATION AND DOCUMENTARY EVIDENCES OF EXPENSES TO BE PRODUCED BY THE ASSESSEE. HOWEVER, THE ASSESSEE HAS AGAIN FAILED TO MAKE NECESSARY COMPLIANCE AND NOT PRODUCE BILL AND VOUCHER IN SUPPORT OF THE EXPENDITURE DEBITED IN THE PROFIT AND LOSS ACCOUNT, THEREFORE, THE AO COULD NOT VERIFY THE GENUINENESS OF THE EXPENSES DEBITED IN T HE PROFIT AND LOSS ACCOUNT. WITH THE ASSISTANCE OF THE LD. REPRESENTATIVE WE HAVE GON E THROUGH THE MATERIAL ON RECORD AND NOTICED THAT AO HAS ISSUED VARIOUS NOTIC ES U/S. 142(1) OF THE ACT AND ASK THE ASSESSEE TO FURNISH THE DETAIL/DOCUMENT AS SUPPORTING EVIDENCES FOR THE PURPOSE OF VERIFICATION AND THE LD. CIT(A) HAS ALSO EXTENDED A NUMBER OF OPPORTUNITIES BUT THE ASSESSEE HAS FAILED TO PRODUC E PRIMARY INFORMATION I.E. BILLS/VOUCHERS IN SUPPORT OF CLAIM OF EXPENDITURE D EBITED TO THE PROFIT AND LOSS ACCOUNT. THE SUBMISSION OF THE ASSESSEE AS MENTION ED IN PARA 11 OF THE LD. CIT(A) THAT HIS BOOKS OF ACCOUNT WERE SUBJECT TO AUD IT AND NOWHERE DURING THE COURSE OF AUDIT IT WAS FOUND THAT ANY EXPENSES WAS NOT SUPPORTED BY PROPER DOCUMENTARY EVIDENCES. THIS CONTENTION OF THE ASSES SEE IS NOT ACCEPTABLE ANDWE OBSERVE THAT BEFORE COMPLETION OF ASSESSMENT U/S. 1 43(3) THE AO CAN MAKE ENQUIRY AND ASK THE ASSESSEE TO PRODUCE, OR CAUSE TO BE PRO DUCED SUCH ACCOUNT OR DOCUMENT AS THE AO MAY REQUIRE. CONSIDERING THE ABOVE FACTS AND CIRCUMSTANCES WE DO NOT FIND ANY ERROR IN THE DECISION OF THE CIT(A) EVEN D URING THE COURSE OF APPELLATE PROCEEDING BEFORE US THE ASSESSEE HAS NOT DEMONSTRA TED THAT HE HAS PRODUCED THE BILL AND VOUCHER FOR VERIFICATION BEFORE THE AO OR AT THE TIME OF APPELLATE PROCEEDING. THEREFORE, THIS GROUND OF ASSESSEE IS DISMISSED. GROUND OF APPEAL NO. 3:- 6. DURING THE COURSE OF ASSESSMENT PROCEEDINGS THE AO NOTICED THAT ASSESSEE HAS PURCHASED IMMOVABLE PROPERTY TO THE AMOUNT OF R S. 33,00,000/- ON 27.06.2008. THE ASSESSEE HAS FURNISHED COPY OF DEE D OF PROPERTY PURCHASED ALONG ITA NO. 1913/AHD/2016 A.Y. 2009-10 4 WITH BANK STATEMENT ETC. ON VERIFICATION OF THESE DOCUMENTS FURNISH BY THE ASSESSEE THE AO NOTICED THAT THE ASSESSEE HAS TAKEN A LOAN OF RS. 26,00,000/- FROM BANK OF BARODA TOWARD PURCHASE OF THE SAID PROPERTY . HOWEVER, THE AO HAS NOTICED THAT ASSESSEE HAS MADE FURTHER PAYMENT OF R S. 7,00,000/- ON VARIOUS DATES BUT THE ASSESSEE HAS NOT EXPLAINED THE SOURCE OF PA YMENT OF THIS REMAINING AMOUNT TOWARDS PURCHASE OF PROPERTY. THEREFORE, THE AO HA S MADE ADDITION OF RS. 7,00,000/- AS UNEXPLAINED INVESTMENT AND ADDED TO T HE TOTAL INCOME OF THE ASSESSEE. 7. THE ASSESSEE HAS FILED BEFORE THE LD. CIT(A). THE LD. CIT(A) HAS PROVIDED PART RELIEF TO THE ASSESSEE AND RESTRICTED THE ADDI TION TO THE AMOUNT OF RS. 4,20,000. 8. WE HAVE HEARD RIVAL CONTENTION ON THIS ISSUE AND PERUSED THE MATERIAL ON RECORD. THE ASSESSEE HAS MADE INVESTMENT IN THE ADD ITION OF RS. 7,00,000/- ON ACCOUNT OF UNEXPLAINED PROPERTY TO THE AMOUNT OF RS . 33,00,000/-. ON VERIFICATION THE A.O. HAS NOTICED SOURCE OF INVESTMENT TO THE EX TENT OF RS. 26,00,000/- WAS BANK LOAN AVAILED FROM BANK OF BARODA. HOWEVER, TH E REMAINING SOURCE OF INVESTMENT TO THE AMOUNT OF RS. 7,00,000/- COULD NO T BE ESTABLISHED BY THE ASSESSEE BEFORE THE A.O. SUBSEQUENTLY, DURING THE COURSE OF APPELLATE PROCE EDING BEFORE LD. CIT(A) THE ASSESSEE HAS FURNISHED FURTHER DETAIL DOCUMENTS THEREFORE FURTHER RELIEF TO THE AMOUNT OF RS. 2,80,000/- GIVEN AS ADVANCE FOR PURCH ASE OF PROPERTY WAS PROVIDED. HOWEVER, THE ASSESSEE HAS FAILED TO SUBSTANTIATE TH E SOURCE OF PAYMENT OF RS. 4,20,000/- MADE ON VARIOUS DATE FOR THE PURCHASE OF IMPUGNED PROPERTY. WITH THE ASSISTANCE OF LD. REPRESENTATIVE WE HAVE GONE THROU GH THE PAPER BOOK SUBMITTED BY THE LD. COUNSEL DURING THE COURSE OF APPELLATE P ROCEEDING BEFORE US AND IT IS NOTICED THAT AS PER PAGE NO. 46 OF THE PAPER BOOK T HE DETAIL OF INVESTMENT MADE IN THE PURCHASE OF SHOP TO THE AMOUNT OF RS. 33,00,000 /- WAS GIVEN IN THE FORM OF LEDGER ACCOUNT. HOWEVER, IT IS NOTICED THAT ASSESS EE HAS NOT EXPLAINED SOURCE OF PAYMENT TO THE AMOUNT OF RS. 4,20,000/- MAINLY MADE IN CASH ON VARIOUS DATES. WE DO NOT FIND ANY RELEVANT DOCUMENT OR SUPPORTING EVIDENCES IN THE PAPER BOOK ITA NO. 1913/AHD/2016 A.Y. 2009-10 5 WHICH CAN DEMONSTRATE THE SOURCE OF INVESTMENT OF R S. 4,20,000/- IN THE IMPUGNED PROPERTY.IN THE LIGHT OF ABOVE FACTS AND CIRCUMSTAN CES WE DO NOT FIND ANY INFIRMITY IN THE DECISION OF LD. CIT(A) IN SUSTAINING THE ADD ITION TO THE EXTENT OF RS. 4,20,000/-. THEREFORE, WE DO NOT CONSIDER ANY SUBS TANCE IN THE APPEAL OF THE ASSESSEE ON THIS ISSUE. ACCORDINGLY THIS GROUND OF APPEAL OF THE ASSESSEE IS ALSO DISMISSED. 9. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS DIS MISSED. SD/- SD/- (RAJPAL YADAV) (AMARJIT SINGH) JUDICIAL MEMBER ACCOUNTAN T MEMBER AHMEDABAD: DATED 14/06/2019 TANMAY TRUE COPY / COPY OF ORDER FORWARDED TO:- 1. / REVENUE 2. % / ASSESSEE 3. '( ! )! / CONCERNED CIT 4. )! - / CIT (A) 5. *+, ! ( , ' ( , -.%'% / DR, ITAT, AHMEDABAD 6. ,/ 0 / GUARD FILE. BY ORDER / %& , 1 / - ' ( , -.%'% 2 1.DATE OF DICTATION ON 12.06.2019 2.DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE TH E DICTATING MEMBER 13.06.2019 3.DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR. P.S./P.S. 13.06.2019 4.DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE DICTATING MEMBER FOR PRONOUNCEMENT 14.06.2019 5.DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR .P.S./P.S 14.06.2019 6.DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 14 .06.2019 7.DATE ON WHICH THE FILE GOES TO THE HEAD CLERK . 8.THE DATE ON WHICH THE FILE GOES TO THE ASSTT. REG ISTRAR FOR SIGNATURE ON THE ORDER 9.DATE OF DESPATCH OF THE ORDER THIS ORDER PRONOUNCED IN OPEN COURT ON 14/06/2019