SHRI RAMAN RAI, Bhopal V. THE ITO 3(1), Bhopal

ITA 223/IND/2015

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 5789 (ITAT-INDORE)
• Duration Of Justice: 1 year(s) 5 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-09-2016
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: DB
• Next Hearing Date: 09-08-2016
• Assessment Year: 2003-2004
• Appeal Filed On: 06-04-2015
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: MOHD JAVED
• Keywords: Business income; Assessment record
• Section: 143(3)

Judgement Text

SHRI RAMAN ROY ITA NO. 223/IND/2015 1 IN THE INCOME TAX APPELLATE TRIBUNAL INDORE BENCH, INDORE BEFORE SHRI D.T. GARASIA, JM & SHRI O.P. MEENA, AM ITA NO. 223/IND/2015 A.Y.2003-04 RAMAN RAI BHOPAL PAN ADMPR 9703Q ::: APPELLANT VS INCOME TAX OFFICER 3(1) BHOPAL ::: RESPONDENT APPELLANT BY SHRI SUMIT NEMA RESPONDENT BY SHRI MOHD.JAVED DATE OF HEARING 18.8.2016 DATE OF PRONOUNCEMENT 0 7 . 9 .2016 O R D E R PER SHRI D.T. GARASIA, JM THIS IS AN APPEAL PREFERRED BY THE ASSESSEE AGAINST THE ORDER OF THE LEARNED CIT(A)-II, BHOPAL, DATED 27.1.20 15. SHRI RAMAN ROY ITA NO. 223/IND/2015 2 2. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE IS DERI VING INCOME FROM TRAVEL BUSINESS AGENCY, LOSS FROM HOUSE PROPERTY AND AGRICULTURAL INCOME. DURING THE COURSE OF ASSESSMENT PROCEEDINGS THE ASSESSING OFFICER TRIED T O VERIFY THE CASH DEPOSITED IN HIS ACCOUNT ON VARIOUS DATES WHIC H READS AS UNDER :- DETAILS DATE OF PAYMENT AMOUNT MODE OF PAYMENT/ DEPOSITS QUALISE/MP04 T 4450 05.05.02 10000 CHEQUE 19.7.02 20000 CASH 03.8.02 10000 CASH 06.8.02 50000 CASH 27.1.03 50000 CHEQUE QUALISE/MP04H 1067 08.7.02 10000 CASH 25.1.03 50000 CASH FLAT ELAJAMALPURA 17.7.02 15000 CASH 02.12.02 14000 CASH SHIVALIK ENKLAVE 08.7.02 10000 CASH ADVANCE FOR FLAT 01.12.02 600000 CASH 09.1.03 1000000 CASH PNB MARWARI ROAD 22.1.03 1077105 CASH A/C CLOSED FDR SELF 27.1.03 1000000 CASH FDR WIFE 27.1.03 500000 CASH THE ASSESSING OFFICER HAS MADE THE ADDITION OF RS.27,56,105/- ON THE GROUND THAT THE ASSESSEE DID NO T SHRI RAMAN ROY ITA NO. 223/IND/2015 3 COOPERATE AND DID NOT FILE THE REQUISITE DOCUMENTS. THEREFORE, THE ASSESSING OFFICER HAS ADDED THIS INCOM E OF RS.27,56,105/- AS UNDISCLOSED INCOME OF THE ASSESSEE. THE MATTER WAS CARRIED IN APPEAL TO THE LEARNED CIT(A) AN D THE LEARNED CIT(A) PARTLY ALLOWED THE APPEAL BY OBSERVI NG AS UNDER :- 6.2 APPELLANTS SUBMISSIONS ALONG WITH ASSESSMENT ORDER AND RECORDS HAVE BEEN CONSIDERED CAREFULLY. ASSESSMENT RECORDS OF THE A.O. ALONG WIT H RELEVANT EARLIER YEARS RETURNS, BALANCE SHEETS AND CASH FLOW STATEMENT, AS RELIED ON HEAVILY BY THE APPELLANT, HAVE ALSO BEEN PERUSED. THE SOURCE OF THESE DEPOSITS AND PAYMENTS HAS BEEN STATED TO BE AGRICULTURAL INCOME, RENTAL INCOME AND BUSINESS INCOME AND OPENING CASH BALANCE OF RS.25,39,308/-. DETAILS OF THESE INCOMES OF LAST THREE YEARS AND TH E YEAR UNDER APPEAL ARE AS UNDER :- SHRI RAMAN ROY ITA NO. 223/IND/2015 4 A.Y . DECLARED INCOME ASSESSED INCOME U/S 143(3) TOTAL INCOM E AGRICULTURA L (RS.) (2)(B) OTHER S (RS.) (2(B) AGRI CULT URAL (RS.) (3)(A) OTHERS (RS.) (3)(B) (RS.) (4) 2000 - 1 7,25,000 NIL 6,00,000 1,25,000 7,25,000 2001 - 02 6,66,613 48,750 5,50,000 1,65,363 7,15,363 2002 - 03 8,15,385 53,250 6,50,000 2,18,635 8,68,635 2003 - 04 10,50,675 68,626 8,35,000 2,84,301 * 11,19,301 2003 - 04 (UNDER APPEAL) *(EXCLUDING AMOUNT OF BANK DEPOSITS/WITHDRAWALS AND ADVANCE GIVEN FOR FLAT) 6.3 ON PERUSAL OF ENTIRE MATERIAL ON RECORD, APPELLANTS SUBMISSIONS ARE FOUND PARTLY ACCEPTABLE . A.O. HAS REJECTED APPELLANTS CONTENTIONS AND HIS EARLIER COMPLETED ASSESSMENTS, HIS BALANCE SHEETS AND CASH FLOW STATEMENTS IN RESPECT OF EVEN COMPLETED ASSESSMENTS WITHOUT BRINGING EVEN A SINGLE PIECE OF ADVERSE DOCUMENTARY EVIDENCE ON RECORD AT ANY STAGE OF THE PROCEEDINGS WHEN APPELLANTS ASSESSMENT HAVE BEEN COMPLETED TWICE EARLIER BY SCRUTINY U/S 143(3). HOWEVER, THE APPELLANT HAS ALSO FAILED TO SATISFACTORILY EXPLAIN THE SHRI RAMAN ROY ITA NO. 223/IND/2015 5 SOURCE OF CASH DEPOSIT OF RS.10,00,000/- MADE ON 22.01.2003 AND OF RS.5,00,000/- ON 27.01.2003 FOR FDR IN HIS WIFES NAME. ACCORDINGLY, ADDITION OF RS.15,00,000/- MADE FOR UNEXPLAINED DEPOSITS AND PAYMENTS IS FOUND SUSTAINABLE OUT OF TOTAL OF RS.27,56,105/- MADE BY THE A.O. THE APPELLANT GETS RELIEF OF RS.12,56,105/ - ON THIS GROUND. 3. THE ASSESSEE IS IN APPEAL AGAINST THE PART RELIEF GRANTED BY THE LEARNED CIT(A). 4. THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE ASSESSEE HAS DECLARED THE INCOME FROM THE ASSESSMEN T YEAR 2000-01 TO 2003-04 TOTALING TO RS.34,27,936/- AND THE ASSESSING OFFICER HAS MADE THE ADDITION OF RS.44,16,105/-, THEREFORE, THE DIFFERENCE IS OF RS.9,88,169/- ON ACCOUNT OF UNEXPLAINED INCOME WHICH SHRI RAMAN ROY ITA NO. 223/IND/2015 6 CAN BE ADDED TO THE INCOME OF THE ASSESSEE AND THE ASSESSEE IS ENTITLED FOR THE RELIEF. 5. ON THE OTHER HAND, THE LEARNED DR RELIED UPON THE ORDERS OF THE AUTHORITIES BELOW. 6. HAVING HEARD BOTH THE PARTIES AND LOOKING TO THE FACT S AND CIRCUMSTANCES OF THE CASE, WE FIND THAT BEFORE GRAN TING RELIEF, THE ASSESSEE HAS GIVEN THE BIFURCATION OF INCO ME OF VARIOUS YEARS TO THE LEARNED CIT(A) AND THE LEARNED CIT (A) HAS NOT CALLED FOR THE REMAND REPORT FROM THE ASSESSIN G OFFICER AND GRANTED THE RELIEF OFRS.12,56,105/-. HOWE VER, AS PER THE ASSESSEE, THIS IS A MISTAKE. THEREFORE, IN OUR OPINION, THIS REQUIRES VERIFICATION AT THE LEVEL OF TH E ASSESSING OFFICER AND WE RESTORE THE ISSUE TO THE FI LE OF THE ASSESSING OFFICER TO VERIFY THE SAME AND GRANT RELIEF, IF PERMISSIBLE, AS PER LAW. SHRI RAMAN ROY ITA NO. 223/IND/2015 7 7. THE NEXT ISSUE RELATES TO THE ADDITION OF RS.16 L ACS FOR ADVANCE GIVEN FOR FLAT TREATING THE SAME AS UNEXPLAINED. THE ASSESSING OFFICER HAS VERIFIED THE CLAIM AND FOUN D THAT THE FLAT WAS BOOKED BY MD. HAMEED KHAN AND THE ENTIRE AMOUNT WAS PAID IN CASH FOR PURCHASING THE FLAT. THE ASSESSEE HAS SUBMITTED VARIOUS EVIDENCES BUT THE ASSESSING OFFICER WAS OF THE VIEW THAT THE PROFIT AND LOSS ACCOUNT AND BALANCE SHEET OF THREE ASSESSMENT YEARS FROM 2001-02 TO 2002-03 WERE NOT VERIFIED AND HE ACCORDING LY MADE THE ADDITION OF RS.16,000/-. THE MATTER CARRIED IN APPEAL AND THE LEARNED CIT(A) UPHELD THE ACTION OF THE ASSESSING OFFICER. NOW THE ASSESSEE IS IN APPEAL BEFOR E US. 8. HAVING HEARD BOTH THE PARTIES, WE ARE OF THE VIEW TH AT SINCE THE PROFIT AND LOSS ACCOUNT AND BALANCE SHEET OF T HREE ASSESSMENT YEARS FROM 2001-02 TO 2002-03 WERE NOT VERIFIED, IT WOULD BE APPROPRIATE TO SET ASIDE THE ORD ERS OF THE AUTHORITIES BELOW AND RESTORE THE ISSUE TO THE FI LE OF THE SHRI RAMAN ROY ITA NO. 223/IND/2015 8 ASSESSING OFFICER TO VERIFY THE SAME. WE, THEREFORE, IN THE INTEREST OF JUSTICE AND FAIR PLAY, RESTORE THE ISSUE TO THE FILE OF THE ASSESSING OFFICER TO VERIFY THE PROFIT AND LO SS ACCOUNT AND BALANCE SHEET OF THREE ASSESSMENT YEARS FROM 2001-02 TO 2002-03 AND THEREAFTER MAKING THE ASSESSMENT ACCORDINGLY. 9. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS PARTLY ALLOWED. PRONOUNCED IN OPEN COURT ON 07 SEPTEMBER, 2016 SD SD (O.P. MEENA) (D.T. G ARASIA) ACCOUNTANT MEMBER JUDICIAL MEM BER 07 SEPTEMBER, 2016 DN/- SHRI RAMAN ROY ITA NO. 223/IND/2015 9