ACIT, Trichy V. Shri D.Virudhachalam, Trichy

ITA 193/CHNY/2011

• Counselvise Citation: [2011] 134 COUNSELVISE.COM (IT) 5311 (ITAT-CHENNAI)
• Duration Of Justice: 2 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-04-2011
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2008-2009
• Appeal Filed On: 09-02-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: S SRIVATSAN

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL CHENNAI BENCH A BEFORE DR. O.K.NARAYANAN, VICE-PRESIDENT AND SHRI HARI OM MARATHA, JUDICIAL MEMBER I.T.A. NO.193/MDS/2011 ASSESSMENT YEAR : 2008-09 THE ASSISTANT COMMISSIONER OF INCOME TAX, CCENTRAL CIRCLE I, TIRUCHIRAPPALLI. VS. SHRI D. VIRUDHACHALAM, NO.100C, GANDHI ROAD, SRIRANGAM, TRICHY. PAN AADPV 2115 N (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI SHAJI P. JACOB RESPONDENT BY : SHRI S.SRIVATSAN O R D E R PER DR. O.K.NARAYANAN, VICE PRESIDENT THIS APPEAL IS FILED BY THE REVENUE. THE RELEVANT ASSESSMENT YEAR IS 2008-09. THE APPEAL IS DIRECT ED AGAINST THE ORDER OF THE COMMISSIONER OF INCOME-TAX (APPEALS), TIRUCHIRAPALLI DATED 30.11.2010. THE APPEAL ARISES OUT OF THE ASS ESSMENT COMPLETED UNDER SEC.143[3] OF THE I.T. ACT, 1961. 2. THE GRIEVANCE OF THE REVENUE IS THAT THE COMMIS SIONER OF INCOME-TAX (APPEALS) HAS ERRED IN GIVING THE BENEFI T OF TELESCOPING WHILE FIXING THE TAXABLE INCOME OF THE ASSESSEE. THE ITA 193/11 :- 2 -: ASSESSING AUTHORITY HAS MADE AN ADDITION OF ` 19,67,340/- AS UNEXPLAINED CASH FOUND AT THE TIME OF SEARCH. THE COMMISSIONER OF INCOME-TAX (APPEALS) FOUND THAT THE ASSESSEE HAD OFFERED A SUBSTANTIAL AMOUNT OF INCOME PRIOR TO SEARCH AND SE IZURE AND THEREFORE, THE SEIZED AMOUNT COULD RIGHTLY BE SET O FF AGAINST THE EARLIER ADDITIONAL INCOME OFFERED BY THE ASSESSEE. ON THE SAME PRINCIPLE, THE COMMISSIONER OF INCOME-TAX (APPEALS) HAS DELETED AN ADDITION OF ` 1,80,000/- AND ANOTHER ADDITION OF ` 3 LAKHS STATED TO BE THE AMOUNTS GIVEN TO ONE SHRI SHANTAKU MAR AND SHRI M. RAJALINGAM. 3. WE HEARD BOTH SIDES IN DETAIL AND CONSIDERED THE ISSUE. THE FACTUM OF OFFERING ADDITIONAL INCOME IN THE HAN DS OF THE ASSESSEE EARLIER TO THE IMPUGNED ASSESSMENT YEAR HA S BEEN PROVED BEYOND DOUBT IN THE LIGHT OF THE INCOME-TAX DETAILS AVAILABLE ON RECORD. THEREFORE, IT IS A REASONABLE FINDING THAT, THAT MUCH AMOUNT WAS AVAILABLE IN THE HANDS OF THE ASSES SEE. THAT AMOUNT IS OVERLAPPING ALL THE THREE ITEMS OF THE RE LIEFS GRANTED BY THE COMMISSIONER OF INCOME-TAX (APPEALS). IT IS AL SO TO BE SEEN THAT THE AVAILABILITY OF ADDITIONAL FUNDS IN THE HA NDS OF THE ASSESSEE AND THE EVENTS LEADING TO THE ADDITION OF THREE AMOUNTS ITA 193/11 :- 3 -: WERE VERY PROXIMATE AND IT IS ONLY A PLAUSIBLE EXPL ANATION WITH CONVICTION THAT THE ASSESSEE HAD IN HIS HANDS THAT MUCH AMOUNTS TO MEET THE THREE EXIGENCIES POINTED OUT BY THE ASS ESSING AUTHORITY. 4. IN THE FACTS AND CIRCUMSTANCES, WE FIND TH AT THERE IS NO ERROR IN THE ORDER OF THE COMMISSIONER OF INCOME-TA X (APPEALS) EITHER IN LAW OR ON FACTS IN GIVING THE RELIEFS TO THE ASSESSEE. HIS ORDER IS JUST AND PROPER IN LAW. 5. IN RESULT, THIS APPEAL FILED BY THE REVENUE I S DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT AT THE TIME OF H EARING ON MONDAY, THE 11 TH DAY OF APRIL, 2011 AT CHENNAI. SD/- SD/- (HARI OM MARATHA) JUDICIAL MEMBER (DR. O.K.NARAYANAN) VICE-PRESIDENT CHENNAI, DATED : 11 TH APRIL, 2011 MPO* COPY TO: APPELLANT/RESPONDENT/CIT(A)/CIT/DR