The Income-tax Officer, Amritsar. V. Sh. Ramesh Kumar, Amritsar.

ITA 217/ASR/2011

• Counselvise Citation: [2013] 120 COUNSELVISE.COM (IT) 0583 (ITAT-AMRITSAR)
• Duration Of Justice: 1 year(s) 8 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-01-2013
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2001-2002
• Appeal Filed On: 05-05-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R L CHHANALIA
• Keywords: Income from undisclosed sources; Accommodation entries

Judgement Text

ITA NOS. 446, 448 & 217(ASR)/2010 & 11 1 1 IN THE INCOME TAX APPELLATE TRIBUNAL AMRITSAR BENCH; AMRITSAR. BEFORE SH. H.S. SIDHU, JUDICIAL MEMBER AND SH. B.P.JAIN, ACCOUNTANT MEMBER I.T.A. NO.486(ASR)/2010 ASSESSMENT YEAR:2002-03 PAN :AAMPR2429Q THE INCOME TAX OFFICER, VS. SH. VIPUL RAWELLY, WARD 1(2), AMRITSAR. H/NO.20-A, SANT AVENUE, AMRITSAR. (APPELLANT) (RESPONDENT) APPELLANT BY:SH.R.L.CHHANALIA, DR RESPONDENT BY:NONE I.T.A. NO.448(ASR)/2010 ASSESSMENT YEAR:1998-99 PAN :AAZPB7224L DY. COMMR. OF INCOME TAX, VS. SH. AMAR NATH BHARGAV CIRCLE-1, JAMMU. C/O M/S. BHARGAV ARMS CO. INDUSTRIAL ESTATE AREA, JAMMU. (APPELLANT) (RESPONDENT) APPELLANT BY: SH.R.L.CHHANALIA, RESPONDENT BY:SH. VINAMAR GUPTA, CA I.T.A. NO.217(ASR)/2011 ASSESSMENT YEAR:2001-02 PAN :AGCPK0275D THE INCOME TAX OFFICER, VS. SH. RAMESH KUMAR, ITA NOS. 446, 448 & 217(ASR)/2010 & 11 2 2 WARD 2(2), AMRITSAR. AMRITSAR. (APPELLANT) (RESPONDENT) APPELLANT BY: SH.R.L.CHHANALIA,DR RESPONDENT BY: SH. P.N.ARORA, ADV. DATE OF HEARING: 18/01/2013 DATE OF PRONOUNCEMENT:18/01/2013 ORDER PER BENCH ; THESE THREE APPEALS FILED BY THE DEPARTMENT ARE DI RECTED AGAINST DIFFERENT ORDERS OF CIT(A), BHATINDA AND CIT(A), AM RITSAR & JAMMU. SINCE THE ISSUES INVOLVED IN THESE APPEALS ARE COMM ON, THESE WERE HEARD TOGETHER AND ARE BEING DISPOSED OF BY THIS COMMON O RDER FOR THE SAKE OF CONVENIENCE, AS THE GROUNDS OF APPEALS AND ISSUES I NVOLVED THEREIN ARE IDENTICAL, EXCEPT FOR VARIATION IN THE AMOUNTS. 2. THE REVENUE HAS RAISED ALMOST FOLLOWING COMMON GROUNDS IN ALL THE APPEALS. THE GROUNDS RAISED IN ITA NO. 486(ASR)/201 0 ARE REPRODUCED AS UNDER: 1. WHETHER ON THE FACTS AND CIRCUMSTANCES OF THE C ASE, LD. CIT(A) WAS JUSTIFIED IN LAW AND ON FACTS IN DELETIN G THE ADDITION MADE BY THE AO ON ACCOUNT OF TRANSACTION OF SALE OF JEWELLERY WITHOUT APPRECIATING THE FACTS OF THE CASE AND MATE RIAL BROUGHT ON RECORD. 2. WHETHER ON THE FACTS AND CIRCUMSTANCES OF THE CA SE, LD. CIT(A), AMRITSAR ERRED IN LAW IN FOLLOWING THE ORDE R OF THE HONBLE ITAT, AMRITSAR IN THE CASE OF SHRI RISHI GR OVER, PROPRIETOR: M/S. VISHNU JEWELLERS, AMRITSAR VS. ACI T IN ITA NO.198 TO 202(ASR)/2006, AS THE SAID ORDER HAS NOT BEEN ITA NOS. 446, 448 & 217(ASR)/2010 & 11 3 3 ACCEPTED BY THE DEPARTMENT ON MERITS ON THE GROUND THAT IT IS PERVERSE ON FACTS AND DEFICIENT IN LAW. 3. WHETHER ON THE FACTS AND CIRCUMSTANCES OF THE CA SE, LD. CIT(A) WAS JUSTIFIED IN FOLLOWING THE ORDER OF TH E HONBLE ITAT, AMRITSAR IN THE CASE OF SHRI RISHI GROVER, PR OPRIETOR: M/S. VISHNU JEWELLERS, AMRITSAR VS. ACIT IN ITA NO. 198 TO 202(ASR)/2006, WHICH IN TURN HAD FOLLOWED THE ORDER OF THE ITAT, SPECIAL BENCH IN THE CASES OF SH. MANOJ. AGGA RWAL, AND OTHERS VS. DCIT WHICH HAS BEEN CHALLENGED BEFORE TH E JURISDICTIONAL HIGH COURT ON THE GROUND THAT IT IS EX-FACIE PERVERSE. 4. WHETHER ON THE FACTS AND CIRCUMSTANCES OF THE CA SE, LD. CIT(A) WAS JUSTIFIED IN ACCEPTING THE GENUINENESS O F SALE OF JEWELLERY BY THE ASSESSEE WHEN THE ASSESSEES CONDU CT WAS IN DIRECT CONLICT WITH TEST OF NORMAL HUMAN CONDUCT AS LAID DOWN BY THE HONBLE SUPREME COURT IN THE CASES OF I) SUMATI DAYAL VS. CIT (1995) 214 ITR 801 (SC) II) CIT VS. DURGA PRASAD MORE (1971) 82 ITR 540 (SC ) 5. THAT THE APPELLANT CRAVES LEAVE TO AMEND OR ADD ANY OR MORE GROUND(S) OF APPEAL. 2. AT THE TIME OF HEARING BOTH THE LD. DR AND LD. COUNSEL FOR THE ASSESSEES APPEARED ON BEHALF SH. AMAR NATH BHARGAV & SH. RAMESH KUMAR IN ITA NO.448(ASR)/2010 & 217 (ASR)/2011 AND CONCE DED THAT THE ISSUE IN DISPUTE HAVE ALREADY BEEN DECIDED IN FAVOUR OF THE ASSESSEE BY THE DECISION OF THIS BENCH DATED 26 TH JUNE, 2009 IN THE CASE OF SHRI RISHI GROVER, PROPRIETOR: M/S. VISHNU JEWELLERS, AMRITSAR VS. ACI T IN ITA NO.198 TO 202(ASR)/2006. NOBODY APPEARED ON BEHALF OF SH. VIP UL RAWELLY IN ITA ITA NOS. 446, 448 & 217(ASR)/2010 & 11 4 4 NO.486(ASR)/2010. THE LD. CIT(A) HAS ALSO FOLLOWED THE AFORESAID ORDER OF THE TRIBUNAL WHILE DECIDING THE ISSUES IN DISPUTE I N ALL THE PRESENT APPEALS. 4. AFTER HEARING THE PARTIES AND PERUSING THE MATER IAL AVAILABLE ON RECORDS, WE ARE OF THE VIEW THAT THE ISSUES IN DIS PUTE ARE SQUARELY COVERED BY THE DECISION OF THIS BENCH IN THE CASE OF SHRI R ISHI GROVER, PROPRIETOR: M/S. VISHNU JEWELLERS, AMRITSAR VS. ACIT IN ITA NO. 198 TO 202(ASR)/2006. WHILE DECIDING THE ISSUES IN DISPUTE, THE LD. CIT(A ) HAS FOLLOWED THE AFORESAID DECISION OF THE TRIBUNAL. WE CONCUR WITH THE FINDINGS OF THE LD. CIT(A), WHO HAS PASSED A WELL REASONED ORDER. THE R ELEVANT PART OF THE FINDINGS OF THE LD. CIT(A) IN PARA 6 & 6.1 IS REPRO DUCED AS UNDER FOR THE SAKE OF CONVENIENCE: 6. AS REGARDS GROUNDS ON THE ISSUE OF ADDITIONS M ADE, THE LD. COUNSEL FOR THE APPELLANT HAS SUBMITTED THAT HONBL E TAT, AMRITSAR BENCH, AMRITSAR, IN ITS CONSOLIDATED ORDER DATED 26 .06.2009 IN ITA NO.314(ASR)/2006 & OTHERS IN THE CASE OF SMT. SUKIR TI GUPTA & OTHERS HAS ACCEPTED THE APPEAL OF ASSESSEES AND DELETED TH E ADDITIONS. 6.1. I HAVE CONSIDERED THE SUBMISSION OF THE LD. CO UNSEL FOR THE APPELLANT AND HAVE GONE THROUGH THE CONSOLIDATED OR DER DATED 26.06.2009 PASSED BY THE HONBLE ITAT, AMRITSAR, IN ITA NO.314(ASR)/2008 & OTHERS IN THE CASES OF SMT. SUKI RTI GUPTA & OTHERS. THE HONBLE ITAT IN PARA 3 OF THE ORDER HAS HELD THAT: THE RESULT OF THE ORDER PASSED IN THE CASE OF RISHI GROVER PROP. M/S.VISHNU GROVER, AMRITSAR IS DIRECTLY EFFE CTED UPON THE ITA NOS. 446, 448 & 217(ASR)/2010 & 11 5 5 PRESENT ASSESSEES CASES. WE HAVE PASSED A DETAI LED ORDER OF EVEN DATE IN THE CASE OF SHRI RISHI GROVER PROP. M /S.VISHNU GROVER, AMRITSAR IN I.T.A. NOS.198 TO 202 (ASR)/20 06, ASSESSMENT YEARS 1998-99 TO 2002-03 IN WHICH WE HAVE HELD TH AT THERE ARE SUBSTANTIAL EVIDENCE AVAILABLE ON RECORD TO ESTAB LISH THE FACT THAT SHRI RISHI GROVER PROP. M/S.VISHNU GROVER, A MRITSAR WAS ENGAGED IN THE PURCHASE AND SALE OF JEWELLERY BUS INESS AND WAS NOT PROVIDING ACCOMMODATION ENTRIES AND IS GENUINE PUR CHASER. IN PARA 5 OF THE ABOVE ORDER, HONBLE ITAT HAS FURT HER DECIDED THAT: 5. AS REGARDS TO THE MERITS OF THE CASE, WE HAVE DECID ED THE ISSUE IN FAVOUR OF THE ASSESSEES BY DECLARING THE PURCHAS ES MADE BY SHRI RISHI GROVER PROP. M/S.VISHNU JEWELLERS, AMRITSAR T O BE GENUINE AND HAVE ALSO HELD THAT HE WAS ENGAGED IN THE BUSINESS OF PURCHASES AND SALE OF JEWELLERY. NONE OF THE DOCUMENT AND EVIDEN CE COLLECTED BY THE REVENUES AUTHORITIES GOES TO ESTABLISH THAT PURCHA SER WAS MAINLY ENGAGED IN PROVIDING ACCOMMODATION ENTRIES. THEREF ORE, KEEPING IN VIEW OUR ORDER OF EVEN DATE PASSED IN THE CASE OF S HRI RISHI GROVER PROP. M/S.VISHNU GROVER, AMRITSAR (SUPRA), ALL THE APPEALS FILED BY THE ASSESSEES ARE PARTLY ALLOWED AND THE CROSS OBJE CTIONS FILED BY THE ASSESSEES AND THE APPEALS FILED BY THE REVENUE ARE DISMISSED. 6.2. SINCE THE FACTS OF THE PRESENT CASE ARE EXACTLY IDE NTICAL TO THE CASES IN WHICH HONBLE ITAT HAS DECIDED THE ISSUE IN FAVOUR OF ASSESSEES BY DELETING THE ADDITIONS, MADE ON ACCOU NT OF INCOME FROM UNDISCLOSED SOURCES BY TREATING THE SALE PROCEEDS OF JEWELLERY /DRAFT RECEIVED BY CHEQUES AS ACCOMMODATION ENTRY, THE A DDITIONS OF RS.6,67,513/- AND RS.3400/- IN THE CASE OF THE APP ELLANT ARE DELETED BY RESPECTFULLY FOLLOWING THE JUDGMENTS OF ITAT (SUPR A). THIS GROUND OF APPEAL IS ALLOWED. 5. KEEPING IN VIEW THE ABOVE DISCUSSIONS, WE DO NOT FIND ANY INFIRMITY IN THE ORDER OF THE LD. CIT(A) AND THE SAME IS UPHE LD. ACCORDINGLY, ALL THE APPEALS OF THE REVENUE ARE DISMISSED. ITA NOS. 446, 448 & 217(ASR)/2010 & 11 6 6 6. IN THE RESULT, ALL THE THREE APPEALS FILED BY T HE DEPARTMENT ARE DISMISSED, IN THE MANNER, AS INDICATED ABOVE. ORDER PRONOUNCED IN THE OPEN COURT ON 18TH JANUARY, 2013. SD/- SD/- (B.P. JAIN) (H.S. SIDHU) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 18TH JANUARY, 2013 /SKR/ COPY OF THE ORDER FORWARDED TO: 1. THE ASSESSEES.I) SH. VIPUL RAWELLY, AMRITSAR (II) S H. AMAR NATH BHARGAV (III) SH. RAMESH KUMAR, AMRITSAR. 2. THE ITO WARD 1(2), DCIT CIR.1, JAMMU, ITO WARD 2(2 ), ASR. 3. THE CIT(A), AMRITSAR/ JAMMU 4. THE CIT 5. THE SR DR, ITAT, AMRITSAR. TRUE COPY BY ORDER (ASSISTANT REGISTRAR) INCOME TAX APPELLATE TRIBUNAL, AMRITSAR BENCH: AMRITSAR.