M/s. Real Net Work, Surat V. The ACIT.,Cent.Circle-3, Surat

ITA 2150/AHD/2010

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 72925 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 7 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-01-2014
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: D
• Next Hearing Date: 29-01-2014
• Assessment Year: 2007-2008
• Appeal Filed On: 23-06-2010
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: K C MATHEWS
• Assessee Lawyers: M K PATEL
• Keywords: Income from undisclosed sources

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD D BENCH BEFORE: SRI D.K TYAGI, JUDICIAL MEMBER AND SHRI ANIL CHATURVEDI, ACCOUNTAN T MEMBER M/S REAL NET WORK, 201, RATNA SAGAR APARTMENT, VARACHHA ROAD, SURAT PAN: AADFR9691P (APPELLANT) VS THE ASSTT. COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-3, SURAT (RESPONDENT) REVENUE BY: SRI K.C.MATHEWS, SR.D.R. ASSESSEE BY: SRI M.K. PATEL, A.R. DATE OF HEARING : 29-01-2014 DATE OF PRONOUNCEMENT : 30-01-20 14 / ORDER PER : D.K. TYAGI, JUDICIAL MEMBER:- THIS IS THE ASSESSEES APPEAL AGAINST THE ORDER OF LD. CIT(A)-II AHMEDABAD DATED 28-04-2010. 2. THE ASSESSEE HAS TAKEN FOLLOWING EFFECTIVE GROUN D:- ITA NO. 2150/AHD/2010 ASSESSMENT YEAR 2007-08 I.T.A NO.2150/AHD/2010 A.Y. 2007-08 PAGE NO M/S REAL NET WORK VS. ACIT 2 ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AS WELL AS LAW ON THE SUBJECT, THE LD. CIT(A) HAS ERRED IN CONFIRMING THE ACTION OF THE ASSESSING OFFICER IN MAKING ADDITION OF RS. 10,00,0 00/- AS ALLEGED UNACCOUNTED INCOME. 3. ASSESSING OFFICER WHILE MAKING THIS DISALLOWANCE HAS OBSERVED AS UNDER:- 6. DURING THE COURSE OF SEARCH/SURVEY, THE ASSESSE E HAS DISCLOSED RS. 10,00,000/- FOR A.Y. 2007-08. HOWEVER, ON VERIFICAT ION, IT REVEALS THAT THE ASSESSEE HAS SHOWN THE DISCLOSED AMOUNT IN THE PROFIT AND LOSS ACCOUNT AND CLAIMED VARIOUS EXPENSES FROM THE DISCL OSURE. THUS, IT CAN BE SEEN THAT THE ASSESSEE HAS CLEVERLY ACCEPTED THE UNACCOUNTED INCOME DISCLOSED IN THE P&L ACCOUNT AND CLAIMED VAR IOUS EXPENSES FROM IT THEREBY THE ASSESSEE NOT BROUGHT TO TAX THE UNACCOUNTED INCOME ADMITTED DURING THE COURSE OF SEARCH/SURVEY. THE ASSESSEE HAS DISCLOSED THE NET UNACCOUNTED INCOME OVER AND ABOVE THE REGULAR PROFIT OF THE RESPECTIVE YEARS. THEREFORE, THE ASSE SSEE WAS ASKED VIDE THIS OFFICE LETTER DATED 21.11.2008 AND 27.11-2008 WHY THE UNACCOUNTED INCOME DISCLOSED SHOULD NOT BE TAXED AS NET INCOME OVER AND ABOVE THE REGULAR INCOME. IN SPITE OF GIVING SUFFICIENT OPPORTUNITIES, THE AS SESSEE HAS NOT FILED ANY REPLY IN THIS REGARD. SINCE THE ASSESSEE HAS NO T OFFERED THE UNACCOUNTED INCOME DISCLOSED DURING THE COURSE OF S EARCH/SURVEY FOR TAXATION, THE SAME IS TAXED IN THE HANDS OF THE ASS ESSEE AS NET UNACCOUNTED INCOME. FOR A.Y. 2007-08, THE ASSESSEE HAS DISCLOSED NET UNACCOUNTED INCOME OF RS. 10,00,000/-, WHICH IS TAX ED AS NET UNACCOUNTED INCOME OVER ABOVE THE REGULAR INCOME. P ENALTY PROCEEDINGS U/S. 271(L)(C) OF THE ACT IS INITIATED ON RS. 10,00,000/- FOR FURNISHING INACCURATE PARTICULARS OF INCOME THEREBY CONCEALING THE PARTICULARS OF INCOME. 4. IN APPEAL THIS ACTION OF AO HAS BEEN CONFIRMED B Y LD. CIT(A). 5. BEFORE US LEARNED COUNSEL OF THE ASSESSEE REITER ATED SUBMISSION MADE BEFORE LOWER AUTHORITIES. LD. DR RELIED ON THE ORD ER OF LOWER AUTHORITIES. I.T.A NO.2150/AHD/2010 A.Y. 2007-08 PAGE NO M/S REAL NET WORK VS. ACIT 3 6. AFTER HEARING BOTH THE PARTIES AND PERUSING THE RECORD, WE FIND THAT ASSESSEE IS CONNECTED WITH THE TUITION GROUP OF EAG LE INSTITUTE OF EDUCATION PVT LTD. DURING THE COURSE OF SEARCH OPERATION AT THIS GROUP BOOKS OF ACCOUNT AND DOCUMENTS WERE SEIZED. ASSESSEE-GROUP DISCLOSED RS. 1,01,00,000/- DURING THE COURSE OF THIS SEARCH OUT OF WHICH RS. 10 LACS WAS DISCLOSED IN THE HANDS OF THE ASSESSEE. AT THAT TI ME DISCLOSER WAS MADE OF UNACCOUNTED INCOME AND NOT THAT OF UNACCOUNTED GROS S RECEIPTS. THEREFORE AO WAS JUSTIFIED IN MAKING THIS ADDITION AND WE FIN D NO INFIRMITY IN THE ORDER OF LD. CIT(A) IN CONFIRMING THIS, AND THE ORD ER PASSED BY HIM IS HEREBY UPHELD. 7. IN THE RESULT, ASSESSEES APPEAL IS DISMISSED. ORDER PRONOUNCED IN OPEN COURT ON THE DATE MENTIONE D HEREINABOVE AT CAPTION PAGE SD/- SD/- (ANIL CHATURVEDI) ( D.K. TYAGI) ACCOUNTANT MEMBER J UDICIAL MEMBER AHMEDABAD : DATED 30/01/2014 AK / COPY OF ORDER FORWARDED TO:- 1. ASSESSEE 2. REVENUE 3. CONCERNED CIT 4. CIT (A) 5. DR, ITAT, AHMEDABAD 6. GUARD FILE. BY ORDER/ , / ,