The ITO, Ward-9(2), Surat V. Shri Jagdishchandra V.Deluxe,HUF, Surat

ITA 2074/AHD/2008

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 62929 (ITAT-AHMEDABAD)
• Duration Of Justice: 4 year(s) 3 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-08-2012
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 22-08-2012
• Assessment Year: 2000-2001
• Appeal Filed On: 30-05-2008
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: RAHUL KUMAR
• Assessee Lawyers: R B SHAH
• Section: 147; 144

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AT AHMEDABAD A BENCH BEFORE: SHRI D.K. TYAGI, JUDICIAL MEMBER AND SHRI T.R. MEENA, ACCOUNTANT MEMBER I.T.A. NO.2074/AHD/2008 A.Y. 2000-01 INCOME TAX OFFICER, WARD-9(2), SURAT APPELLANT VS. SHRI JAGDISHCHANDRA V. DELUXE, HUF B/36, TIRUPATI NAGAR B/H NANAVATI MOTORS, PIPLOD, SURAT RESPONDENT DEPARTMENT BY : SHRI RAHUL KUMAR, SR. D.R. ASSESSEE BY : SHRI R.B. SHAH, A.R. DATE OF HEARING : 22.08.2012 DATE OF PRONOUNCEMENT : 31.08.2012 / ORDER PER : D.K. TYAGI, JUDICIAL MEMBER THIS IS REVENUES APPEAL AGAINST THE ORDER OF LD. C IT(A)-V, SURAT DATED 17.03.2012. 2. REVENUE HAS TAKEN FOLLOWING GROUNDS OF APPEAL:- 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CA SE AND IN LAW, THE CIT(A) HAS ERRED IN DELETING THE ADDITION OF RS.6,66,000/- MADE BY A.O. ON ACCOUNT OF INCOME FRO M UNDISCLOSED SOURCES, VIDE ASSESSMENT ORDER U/S 144 R.W.S. 147 OF THE I.T. ACT DT. 29.12.2006. 2. IT IS, THEREFORE, PRAYED THAT THE APPEAL ORDER PASSED BY THE HONBLE CIT(A) BE SET ASIDE AND THAT THE ASSESS MENT ORDER PASSED BY THE ASSESSING OFFICER U/S 144 R.W.S. 147 OF THE ACT DATED 29.12.2006 BE RESTORED. I.T.A. NO.2074/AHD/2008 A.Y. 2000-01 2 3. BRIEF FACTS OF THE CASE ARE THAT INCOME FOR THE YEAR UNDER APPEAL WAS FILED BY THE ASSESSEE SHOWING TOTAL INCOME OF RS.52 ,150/-. THE RETURN WAS PROCESSED U/S 143(1). SUBSEQUENTLY THE CASE WAS SE LECTED FOR SCRUTINY AND DURING THE ASSESSMENT PROCEEDINGS, ON VERIFICATION OF THE CAPITAL ACCOUNT IT WAS NOTICED BY THE A.O. THAT ASSESSEE HAS SHOWN LON G TERM CAPITAL GAIN OF RS.9,90,000/- AND THE SAME AMOUNT WAS ALSO SHOWN IN THE ASSETS SIDE OF BALANCE SHEET UNDER THE HEAD RESIDENTIAL UNIT. THE ASSESSEE WAS HAVING 1/3 RD SHARE OF RESIDENTIAL UNIT WHICH WERE SOLD FOR RS.9, 99,000/-. HIS SHARE WAS WORKED OUT TO BE OF RS.3,33,000/- WHEREAS HE HAS CR EDITED HIS CAPITAL GAIN FOR RS.9,99,000/-. THE A.O. CASE IS THAT THE ENTIRE SA LE CONSIDERATION OF RS.9,99,000/- WAS SHOWN WITH A VIEW TO INFLATE ITS CAPITAL AND THEREFORE 2/3 RD SHARE BEING RS.6,66,000/- BELONGING TO OTHERS REPRE SENTED AS ASSESSEES UNDISCLOSED INCOME WAS ADDED BY THE A.O. LD. CIT(A ) DELETED THE ADDITION ON THE GROUND THAT THERE IS NO LOGIC TO MAKE THE ADDIT ION ON THE BELIEF THAT ANY TEMPORARY AND FICTIONAL LOCATION CANNOT DECIDE NATU RE AND CHARACTER OF THE AMOUNT. HE FURTHER OBSERVED THAT SALE CONSIDERATIO N OF A COMMON PROPERTY CANNOT TAKE CHARACTER OF UNEXPLAINED INCOME. 4. AGGRIEVED BY THIS ORDER OF LD. CIT(A) NOW THE RE VENUE IS IN APPEAL. 5. AT THE TIME OF HEARING BOTH THE PARTIES AGREED T HAT THE FULL FACTS WERE NOT ON RECORD AND THEREFORE, THE MATTER REQUIRES TO BE SENT BACK TO THE FILE OF THE A.O. FOR FRESH ADJUDICATION AFTER BRINGING ALL THE RELEVANT FACTS ON RECORD. THEREFORE, THE ISSUE IS RESTORED BACK TO THE FILE O F THE A.O. FOR FRESH I.T.A. NO.2074/AHD/2008 A.Y. 2000-01 3 ADJUDICATION AFTER PROVIDING ADEQUATE OPPORTUNITY O F BEING HEARD TO THE ASSESSEE. 6. IN THE RESULT, REVENUES APPEAL IS ALLOWED FOR S TATISTICAL PURPOSE. ORDER PRONOUNCED IN OPEN COURT ON 31.08.2012 SD/- SD/- (T.R. MEENA) (D.K. TYAGI) ACCOUNTANT MEMBER JUDICIAL MEMBER TRUE COPY N.K. CHAUDHARY, SR. P.S. COPY OF THE ORDER FORWARDED TO: 1. THE APPLICANT 2. THE RESPONDENT 3. THE CIT CONCERNED 4. THE LD. CIT (APPEALS) 5. THE DR, AHMEDABAD 6. THE GUARD FILE BY ORDER AR,ITAT,AHMEDABAD