Sri V.G.S.Rajesh, CHENNAI V. ACIT, CHENNAI

ITA 2086/CHNY/2012

• Counselvise Citation: 208621714 RSA 2012
• Duration Of Justice: 2 year(s) 7 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-07-2015
• Appeal Filed By: Assessee
• Bench Allotted: C
• Next Hearing Date: 16-06-2015
• Assessment Year: 2008-2009
• Appeal Filed On: 20-11-2012
• Court: TRIBUNAL
• Department Lawyers: N RENGARAJ
• Assessee Lawyers: S SRIDHAR
• Keywords: Unexplained cash credit
• Section: 2

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH : CHENNAI . . . , . ! , ' # $ [ BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER ] ./ I.T.A.NOS.2081 TO 2086/MDS/2012 / ASSESSMENT YEARS : 2003-04 TO 2008-09 SHRI V.G.S. RAJESH VGP HOUSE, OLD NO.52, NEW NO.102 HOSPITAL ROAD (VGP SALAI) SAIDAPET, CHENNAI - 15 VS. THE ASSTT. COMMISSIONER OF INCOME-TAX CENTRAL CIRCLE IV(3) CHENNAI [PAN AAGPN 7489 N] ( %& / APPELLANT) ( '(%& /RESPONDENT) / APPELLANT BY : SHRI S. SRIDHAR, ADVOCATE /RESPONDENT BY : SHRI N. RENGARAJ, CIT / DATE OF HEARING : 16 - 0 6 - 2015 ! / DATE OF PRONOUNCEMENT : 03 - 07 - 2015 / ORDER PER N.R.S.GANESAN, JUDICIAL MEMBER ALL THE APPEALS OF THE ASSESSEE ARE DIRECTED AGA INST THE COMMON ORDER PASSED BY THE COMMISSIONER OF INCOME-T AX (APPEALS)-I, CHENNAI, DATED 24.9.2012 AND PERTAIN TO ASSESSMENT YEARS 2003-04 TO 2008-09. SINCE COMMON ISSUE ARISES FOR CONSIDERATI ON IN ALL THE APPEALS, WE HEARD THEM TOGETHER AND DISPOSE OF THE SAME BY THIS COMMON ORDER. ITA NOS. 2081 TO 2086/12 :- 2 -: 2. SHRI S. SRIDHAR, LD. COUNSEL FOR THE ASSESSEE SUBMI TTED THAT FOR THE ASSESSMENT YEARS 2003-04 TO 2006-07, THE A SSESSEE FILED THE RETURN OF INCOME IN THE REGULAR COURSE AND THE TIM E LIMIT FOR ISSUING NOTICE U/S 143(2) HAS EXPIRED. THEREFORE, THE ASS ESSMENT PROCEEDINGS ON THE DATE OF THE SEARCH ARE NOT PENDI NG. THE LD. COUNSEL FURTHER SUBMITTED THAT NO MATERIAL WAS FOUN D IN THE COURSE OF SEARCH. THE ENTIRE ADDITION WAS MADE WITHOUT ANY R EFERENCE TO THE SEARCH MATERIAL. THE ASSESSING OFFICER HAS NOT STA TED ANY REASON FOR MAKING THE ADDITION. REGARDING THE RETURNS FILED B Y THE ASSESSEE BEFORE THE DATE OF SEARCH, THE LD. COUNSEL SUBMITTE D THAT THE ADDITIONS MADE BY THE ASSESSING OFFICER WITH REGARD TO DONATI ON AND SUNDRY CREDITS ARE ALL DISCLOSED IN THE RETURN OF INCOME. THEREFORE, THE ADDITIONS MADE BY THE ASSESSING OFFICER WAS WITHIN THE KNOWLEDGE OF THE DEPARTMENT BEFORE THE DATE OF SEARCH HENCE, IN THE ABSENCE OF ANY MATERIAL, THERE CANNOT BE ANY ADDITION. 3. ON THE CONTRARY, SHRI N. RENGARAJ, LD. DEPARTMENTAL REPRESENTATIVE SUBMITTED THAT THE ASSESSEE HAS FIL ED THE RETURN OF INCOME IN THE REGULAR COURSE BEFORE THE DATE OF SEA RCH. THE LD. DR FURTHER SUBMITTED THAT NO MATERIAL WAS FOUND DURING THE COURSE OF SEARCH OPERATION. THE ONLY OBJECTION OF THE LD. DR IS THAT THE DONATION AND SUNDRY CREDITS DISCLOSED BY THE ASSESSEE IN TH E RETURN OF INCOME ITA NOS. 2081 TO 2086/12 :- 3 -: WAS NOT EXAMINED EARLIER, THEREFORE, THE ASSESSING OFFICER DISALLOWED THE CLAIM OF THE ASSESSEE. 4. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS ON EITHER SIDE AND ALSO PERUSED THE MATERIAL AVAILABLE ON RECORD. AD MITTEDLY, THE ASSESSEE FILED THE RETURN OF INCOME BEFORE THE DATE OF SEARCH FOR THE ASSESSMENT YEARS 2003-04 TO 2006-07 AND THE TIME LI MIT FOR ISSUING NOTICE U/S 143(2) HAS EXPIRED. THEREFORE, THE ASSE SSMENT PROCEEDINGS ARE TERMINATED BY OPERATION OF LAW. IN OTHER WORDS, NO ASSESSMENT PROCEEDINGS ARE PENDING ON THE DATE OF SEARCH. THE REFORE, THIS TRIBUNAL IS OF THE CONSIDERED OPINION THAT UNLESS T HERE IS ANY MATERIAL FOUND DURING THE COURSE OF SEARCH, THERE CANNOT BE ANY ASSESSMENT FOR THE BLOCK PERIOD. IN OTHER WORDS, THE ASSESSING OF FICER IS NOT JUSTIFIED IN MAKING ADDITION FOR ASSESSMENT YEARS 2003-04 TO 2006-07. ACCORDINGLY, THE ORDERS OF THE LOWER AUTHORITIES AR E SET ASIDE AND THE ENTIRE ADDITION MADE BY THE ASSESSING OFFICER AND C ONFIRMED BY THE CIT(A) IS DELETED FOR THE ASSESSMENT YEARS 2003-04 TO 2006-07. 5. NOW COMING TO THE ASSESSMENT YEARS 2007-08 AND 2008 -09, THE LD. COUNSEL SUBMITTED THAT THE ASSESSEE FILED THE RETURN OF INCOME IN THE REGULAR COURSE. HOWEVER, THE TIME LIMIT FOR ISSUING NOTICE U/S 143(2) HAS NOT EXPIRED. THEREFORE, THE ASSESSMENT PROCEEDINGS FOR THE ASSESSMENT YEARS 2007-08 AND 2008-09 ARE PENDIN G ON THE DATE OF ITA NOS. 2081 TO 2086/12 :- 4 -: THE SEARCH HENCE, THE ASSESSING OFFICER HAS TO PASS A COMPOSITE ORDER IN RESPECT OF THE INCOME WHICH WAS DISCLOSED IN THE REGULAR RETURN FOR THE BLOCK PERIOD. REFERRING TO THE ASSESSMENT ORDE R, THE LD. COUNSEL POINTED OUT THAT THE ASSESSING OFFICER MADE ADDITIO N FOR THE ASSESSMENT YEAR 2007-08 WITH REGARD TO UNEXPLAINED CASH CREDIT TO THE EXTENT OF ` 7,67,000/-. FOR THE ASSESSMENT YEAR 2008-09, THE ADDITION WAS MADE WITH REGARD TO UNEXPLAINED CASH CREDIT TO THE EXTENT OF ` 17,17,000/-. ACCORDING TO THE LD. COUNSEL, THE MAT TER MAY BE REMITTED BACK TO THE FILE OF THE ASSESSING OFFICER FOR FRESH CONSIDERATION. 6. WE HEARD LD. DR ALSO. 7. ADMITTEDLY, THE ASSESSEE FILED RETURN OF INCOME FO R THE ASSESSMENT YEARS 2007-08 AND 2008-09 AND THE TIME L IMIT FOR ISSUING NOTICE U/S 143(2) HAS NOT EXPIRED. IN OTHER WORDS , THE ASSESSMENT PROCEEDINGS FOR THE ASSESSMENT YEARS 2007-08 AND 20 08-09 ARE PENDING ON THE DATE OF SEARCH. THEREFORE, THE ASSE SSING OFFICER HAS TO PASS A COMPOSITE ORDER SINCE PENDING OF THE PROCEE DINGS WILL ABATE IN VIEW OF THE SPECIFIC PROVISIONS OF SECTION 153BA OF THE ACT. THE ASSESSING OFFICER HAS MADE ADDITION ON THE GROUND T HAT THE ASSESSEE COULD NOT FURNISH ANY EVIDENCE WITH REGARD TO CASH CREDITS. WHEN THE ASSESSEE CLAIMS AN AMOUNT AS CASH CREDIT, IT IS FO R THE ASSESSEE TO EXPLAIN THE IDENTITY OF THE CREDITOR, CREDITWORTHIN ESS OF THE CREDITOR AND ITA NOS. 2081 TO 2086/12 :- 5 -: GENUINENESS OF THE TRANSACTION. THEREFORE, THE ASS ESSING OFFICER HAS TO EXAMINE THESE DETAILS. ACCORDINGLY, THE ORDERS OF THE LOWER AUTHORITIES FOR THE ASSESSMENT YEARS 2007-08 AND 20 08-09 ON THE ISSUE OF CASH CREDITS ARE REMITTED BACK TO THE FILE OF TH E ASSESSING OFFICER. THE ASSESSING OFFICER SHALL RECONSIDER THE ISSUE AF RESH IN THE LIGHT OF THE MATERIAL THAT MAY BE PRODUCED BY THE ASSESSEE AND THEREAFTER DECIDE THE ISSUE IN ACCORDANCE WITH LAW AFTER GIVIN G A REASONABLE OPPORTUNITY OF HEARING TO THE ASSESSEE. 8. IN THE RESULT, THE APPEALS OF THE ASSESSEE FOR ASS ESSMENT YEARS 2003-04 TO 2006-07 ARE ALLOWED. HOWEVER, THE APPEALS OF THE ASSESSEE FOR ASSESSMENT YEARS 2007-08 AND 2008-09 A RE ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 03 RD OF JULY, 2015, AT CHENNAI. SD/- SD/- ( . ! ) (A. MOHAN ALANKAMONY) ' / ACCOUNTANT MEMBER ( . . . ' ) (N.R.S. GANESAN) / JUDICIAL MEMBER #$ / CHENNAI %& / DATED: 03 RD JULY, 2015 RD &' ()*) / COPY TO: 1 . / APPELLANT 4. + / CIT 2. / RESPONDENT 5. ),- . / DR 3. +/' / CIT(A) 6. -01 / GF