M/s. Gandhi Jamnadas Chhaganlal & Sons, Bharuch V. The Income Tax Officer, Ward-1, Bharuch

ITA 2107/AHD/2014

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 9669 (ITAT-AHMEDABAD)
• Duration Of Justice: 1 year(s) 6 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-02-2016
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: SMC
• Next Hearing Date: 08-02-2016
• Assessment Year: 2008-2009
• Appeal Filed On: 14-07-2014
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: B PANDA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD A BENCH BEFORE: S H RI N. K. BILLAIYA , ACCOUNTANT MEMBER AND SHR I KUL BHARAT , JUDICIAL MEMBER M/S. GANDHI JAM NADAS CHHAGANLAL & SONS, SHOP NO. A - 1427, MOGULPURA, DHOL IKUI BAZAR, BHARUCH - 392001 P AN: AACFG 2 3 11E (APPELLANT) VS THE INCOME TAX OFFICER, WARD - 1, BHARUCH (RESPONDENT) REVENUE BY : S H RI B. PANDA , SR. D . R. ASSESSEE BY: NONE DATE OF HEARING : 08 - 0 2 - 2 016 DATE OF PRONOUNCEMENT : 08 - 02 - 2 016 / ORDER P ER : N.K. BILLAIYA , ACCOUNTANT MEMBER : - THIS APPEAL BY THE ASSESSEE IS PREFERRED AGAINST THE ORDER OF THE CIT(A) - II, BARODA DATED 03 - 03 - 2014 PERTAINING TO ASSESSMENT YEAR 2008 - 09. THE SOLE GRIEVANCE OF THE ASSESSEE RELATES TO THE ADDITION OF RS. 1,47,632/ - BEING LOSS CLAIMED BY THE ASSESSEE ON SALE OF FIXED DEPOSIT. I T A NO . 2107 / A HD/20 14 A SSESSMENT YEAR 200 8 - 09 I.T.A NO. 2107 /AHD/20 14 A.Y. 2008 - 09 PAGE NO M/S. GANDHI JAMNADAS CHH A GANLAL & SONS VS. ITO 2 2. THIS APPEAL WAS FIRST POS T ED FOR HEARING ON 14 - 07 - 2014 WHICH WAS ADJOURNED TO 08 - 09 - 2015. ON WHICH DATED MU KUND & ROHIT, CHARTERED ACCOUNTANTS SOUGHT ADJOURNMENT TO 10 - 09 - 2015. ON 10 - 09 - 2015 ONCE AGAIN MUKUND & ROHIT, CHARTERED ACCOUNTANTS TOOK ADJOURNMENT AND THE HEARING WAS POSTED FOR 16 - 11 - 2015. ON WHICH DATE AGAIN, THE CHARTERED ACCOUNTS SOUGHT ADJOURNMENT. THE APPEAL WAS POSTED FOR HEARING ON 21 - 12 - 2015 AND FINALLY IT WAS POSTED FOR HEARING ON THIS DATE, I.E. 08 - 02 - 2016. 3. NONE ATTENDED ON BEHALF OF THE ASSESSEE. WITH SO MANY ADJOURNMENTS , WE DECIDED TO PROCEED EX - PARTE. THE DR WAS HEARD AT LENGTH. 4. ASSESSEE IS IN THE BUSINESS OF TRADING OF GROCERY ITEMS. THE RETURN FOR THE YEAR WAS SELECTED FOR SCRUTINY ASSESSMENT. 5. DURING THE COURSE OF SCRUTINY ASSESSMENT PROCEEDINGS, THE ASSESSING OFFICER NOTICED THAT THE ASSSESSEE HAS CLAIMED AN AMOUNT OF RS. 1,47,632/ - AS LOSS OF INTEREST IN ITS PROFIT AND LOSS ACCOUNT. THE ASSESSEE WAS ASKED TO EXPLAIN THE SAME. ASSESEE FI LED A DETAILED REPLY STATING THAT IT WAS HAVING FIXED DEPOSIT WITH AN K LE SHWAR NAGRIK SAHKARI BANK LTD. WHICH WAS CLOSED BY THE RESERVE BANK OF INDIA DUE TO FINANCIAL IRREGULARITIES. THE FIXED DEPOSIT AMOUNTING TO RS. 12,80,822/ - IN THE SAID BANK WERE SO LD TO MA GAN BHAI PATEL FOR RS. 6,90,295/ - . ASSESSEE FURTHER EXPLAINED THAT OF THE SAME HAS BEEN CLAIMED AS A LOSS DURING THE YEAR AND REMAINING WILL BE CLAIMED IN I.T.A NO. 2107 /AHD/20 14 A.Y. 2008 - 09 PAGE NO M/S. GANDHI JAMNADAS CHH A GANLAL & SONS VS. ITO 3 NEX T THREE YEARS. THIS EXPLANATION OF THE ASSESSEE DID NOT FIND A N Y FAVOUR WITH THE ASSE SSING OFFICER TO DISALLOW THE CLAIM OF LOSS OF RS. 1,47,632/ - . 6 . ASSESSEE CARRIED THE MATTER BEFORE THE CIT(A) BUT WITHOUT ANY SUCCESS. 7 . AS MENTIONED ELSEWHERE, NONE APPEARED BEFORE US. WE HAVE GIVEN A THOUGHTFUL CONSIDERATION TO THE FACTUAL MATRIX DISCUSSED HEREINABOVE. WE FAILED TO UNDERSTAND HOW FIXED DEPOSIT WITH A BANK CAN BE SOLD TO A THIRD PARTY. WE ALSO FAILE D TO UNDERSTAND WHY WOULD A PERSON PURCHASE FIXED DEPOSIT OF A BANK WHICH HAS BEEN CLOSED BY THE ORDER OF THE RESERVE BANK OF INDIA . WE ALSO DO NOT FIND ANY PROVISION IN THE ACT UNDER WHICH SUCH A LOSS CAN BE ALLOWED. WE THEREFORE DECLINE TO INTERFERE WITH THE FINDINGS OF THE CIT (A). APPEAL FILED BY THE ASSESSEE IS ACCORDINGLY DISMISSED ON 08 - 02 - 2016. 8. APPEAL FILED BY THE ASSESSE E IS ACCORDINGLY DISMISSED. ORDER PR ONOUNCED IN THE OPEN C OURT ON 08 - 02 - 201 6 SD/ - SD/ - ( KUL BHARAT ) ( N.K. BILLAIYA) JUDICIAL MEMBER ACCOUNTANT MEMBER AHMEDABAD : DATED 08 /02 /2016 AK / COPY OF ORDER FORWARDED TO: - I.T.A NO. 2107 /AHD/20 14 A.Y. 2008 - 09 PAGE NO M/S. GANDHI JAMNADAS CHH A GANLAL & SONS VS. ITO 4 1. ASSESSEE 2. REVENUE 3. CONCERNED CIT 4. CIT (A) 5. DR, ITAT, AHMEDABAD 6. GUARD FILE. BY ORDER/ , / ,