Assistant Commissioner of Income Tax, Central Circle-1,Belgaum., Belgaum V. Sri. Goutamchand W. Bafna., Hubli

ITA 261/PAN/2014

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 93473 (ITAT-PANAJI)
• Duration Of Justice: 10 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-06-2015
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 15-06-2015
• Assessment Year: 2006-2007
• Appeal Filed On: 08-08-2014
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: NISHANT K LD
• Assessee Lawyers: SHRIKRISHNA KELKAR
• Keywords: Peak credit
• Section: 143(3); 37(1); 12A; 263; 132

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PANAJI BENCH, PANAJI BEFORE SHRI GEORGE MATHAN , HONBLE JUDICIAL MEMBER AND SHRI N.K. BILLAIYA, HON'BLE ACCOUNTANT MEMBER ITA N OS . 257 TO 259 /PNJ/20 14 : (A.Y S 2005 - 06 TO 2007 - 08 ) ACIT, CENTRAL CIRCLE - 1, BELGAUM ( APPELLANT) VS. GIRDHARILAL W. BAFNA PROP. M/S. MUTHA WAGMAL BHURAJI & CO., ALAGUNDAGI ONI, HUBLI PAN : ACKPB4314Q (RESPONDENT) ITA N O . 282 /PNJ/20 14 : (A.Y 2005 - 06 ) GIRDHARILAL W. BAFNA MWB PLAZA, OPP. TRAFFIC POLICE STATION, NEW COTTON MARKET, HUBLI 580 020 (APPELLANT) PAN : ACKPB4314Q ACIT, CENTRAL CIRCLE - 1, BELGAUM ( RESPONDENT) ITA N OS . 260 TO 262 /PNJ/20 14 : (A.Y S 2005 - 06 TO 2007 - 08 ) ACIT, CENTRAL CIRCLE - 1, BELGAUM ( APPELLANT) VS. GAUTAMCHAND W. BAFNA BAFNA NIWAS, DESHPANDE NAGAR, HUBLI (RESPONDENT) PAN : ACKPB4315R ASSESSEE S BY : SHRIKRISHNA KELKAR, CA & OMKAR GODBOLE, CA REVENUE BY : NISHANT K., LD. DR DATE OF HEARING : 15 / 06 /201 5 DATE OF PRONOUNCEMENT : 15 / 06 /201 5 2 ITA NOS. 257 TO 262 & 282/PNJ/2014 (A.YS : 2005 - 06 TO 2007 - 08) O R D E R PER GEORGE MATHAN : ITA NOS. 257 TO 259/PNJ/2014 & 282/PNJ/2014 : 1. ITA NOS. 257 TO 259/PNJ/2014 ARE APPEALS FILED BY THE REVENUE IN THE CASE OF GIRDHARILAL W. BAFNA AGAINST THE ORDER OF CIT(A) - VI, BANGALORE IN ITA NOS. 63, 64, 65A/ACIT,CC 1, BELGAUM/CI T(A) - VI/BLORE/2013 - 14 DT. 2.5.2014 FOR THE A.YS 2005 - 06 TO 2007 - 08. ITA NO. 282/PNJ/2014 IS AN APPEAL FILED BY THE ASSESSEE, GIRDHARILAL W. BAFNA AGAINST THE ORDER OF CIT(A) - VI, BANGALORE IN ITA NOS. 63, 64, 65A/ACIT,CC 1, BELGAUM/CIT(A) - VI/BLORE/2013 - 1 4 DT. 2.5.2014 FOR THE A.Y 2005 - 06. ITA NOS. 260 TO 262/PNJ/2014 : 2. ITA NOS. 260 TO 262/PNJ/2014 ARE APPEALS FILED BY THE REVENUE AGAINST THE ORDER OF THE CIT(A) IN ITA NOS. 63A, 64A, 65/ACIT,CC - 1, BGM/CIT(A) - VI/BLORE/2013 - 2014 DT. 2.5.2014 FOR THE A.YS 2005 - 06 TO 2007 - 08. 3. SHRI NISHANT K., LD. DR REPRESENTED ON BEHALF OF THE REVENUE AND SHRI SHRIKRISHNA KELKAR AND SHRI OMKAR GODBOLE, CAS REPRESENTED ON BEHALF OF THE ASSESSEES. AS THE ISSUES IN ALL THESE APPEALS ARE IDENTICAL AN D INTER - CONNECTED, ALL THESE APPEALS ARE BEING DISPOSED OFF BY THIS COMMON ORDER. 4. IN REVENUES APPEAL IN ITA NOS. 257 TO 259/PNJ/2014 IT WAS SUBMITTED BY THE LD. DR THAT THE ONLY ISSUE WAS AGAINST THE ACTION OF LD. CIT(A) IN DIRECTING THAT THE PEAK CRE DIT IN RESPECT OF THE UNDISCLOSED BANK ACCOUNT WAS LIABLE TO BE ASSESSED IN THE HANDS OF SHRI GIRDHARILAL W. BAFNA. IT WAS THE 3 ITA NOS. 257 TO 262 & 282/PNJ/2014 (A.YS : 2005 - 06 TO 2007 - 08) SUBMISSION THAT THAT THERE WAS A SEARCH U/S 132 IN THE CASE OF SHRI GIRDHARILAL W. BAFNA AND OTHERS ON 9.9.2010. IT WAS THE SUB MISSION THAT IN THE COURSE OF THE SEARCH, BANK ACCOUNT NO. 70647 IN THE NAME OF ONE, SHRI B. ROMESH MAINTAINED WITH AXIS BANK, HUBLI WAS NOTICED TO BELONG TO SHRI GIRDHARILAL W. BAFNA. IT WAS THE SUBMISSION THAT THE ASSESSEE HAD SPECIFICALLY CLAIMED THAT THE SAID BANK ACCOUNT BELONGED TO THE ASSESSEES BROTHER, SHRI GAUTAMCHAND W. BAFNA AND THE TRANSACTIONS THEREIN WERE THE TRADING TRANSACTIONS OF THE PROPRIETORSHIP CONCERN, M/S. BALAJI TRADERS BELONGING TO SHRI GAUTAMCHAND W. BAFNA. IT WAS THE SUBMISSION THAT SHRI GAUTAMCHAND W. BAFNA HAD REVISED HIS EARLIER RETURN OF INCOME FOR THE A.YS 2005 - 06 TO 2007 - 08 DECLARING ADDITIONAL INCOME OF 3% OF THE TURNOVER IN THE SAID BANK ACCOUNT AND THE AO HAD COMPLETED THE ASSESSMENT AT 3.5% OF THE TURNOVER FOR THE A.YS 2005 - 06 AND 2006 - 2007. IT WAS THE SUBMISSION THAT THE ASSESSMENT ORDER FOR THE A.Y 2005 - 06 WAS CANCELLED BY THE LD. CIT, HUBLI U/S 263 ON THE GROUND THAT THE AO HAD NOT EXAMINED THE TRANSACTIONS IN THE BANK ACCOUNT CLAIMED TO BE OF PURCHASES AND SALES. IT WAS THE SUBMISSION THAT THE TRANSACTIONS CANNOT BE TREATED AS TRANSACTIONS OF THE ASSESSEES BROTHER, SHRI GAUTAMCHAND W. BAFNA, PROPRIETOR OF M/S BALAJI TRADERS. THOUGH THE ASSESSEE HAD PRODUCED THE SALES TAX ASSESSMENT ORDER ON THE BASIS OF THE REVI SED SALES TAX RETURN FILED BY M/S. BALAJI TRADERS DISCLOSING THE TURNOVER IN THE SAID BANK ACCOUNT, THE SAME WAS NOT ACCEPTED AS MOST OF THE TURNOVER WAS OF THE EXEMPT CATEGORY. CONSEQUENTLY, THE AO IN THE SEARCH ASSESSMENT HAD TREATED THE CLOSING BALANCE IN THE SAID ACCOUNT FOR EACH OF THE ASSESSMENT YEARS IN QUESTION AS THE INCOME OF THE ASSESSEE AND HAD BROUGHT THE SAME TO TAX. IT WAS THE SUBMISSION THAT THE SAME WAS ALSO ASSESSED IN THE HANDS OF THE ASSESSEES BROTHER, SHRI GAUTAMCHAND W. BAFNA ON PRO TECTIVE BASIS AND THE ADDITION WAS MADE ON SUBSTANTIVE BASIS IN THE HANDS OF SHRI GIRDHARILAL W. BAFNA BECAUSE THE SAID BANK ACCOUNT WAS BEING OPERATED BY SHRI GIRDHARILAL W. BAFNA. IT WAS THE SUBMISSION THAT THIS FINDING THAT THE 4 ITA NOS. 257 TO 262 & 282/PNJ/2014 (A.YS : 2005 - 06 TO 2007 - 08) INCOME WAS LIABLE TO BE ASSESSED IN THE HANDS OF SHRI GIRDHARILAL W. BAFNA HAD BEEN ACCEPTED BY THE LD. CIT(A), HOWEVER, THE LD. CIT(A) HAD DIRECTED THAT ONLY THE PEAK CREDIT RELEVANT TO EACH OF THE ASSESSMENT YEARS WERE LIABLE TO BE ASSESSED. CONSEQUENTLY, THE CLOSING BALANCE A S ON 31.3.2005 WHICH WAS ADDED BY THE AO FOR THE A.Y 2005 - 06 WAS CONFIRMED AND THE ADDITION MADE FOR THE A.Y 2006 - 07 AND 2007 - 08 HAD BEEN DELETED AS THE PEAK CREDIT REPRESENTING THE BALANCE AS ON 31.3.2005 HAD ALREADY BEEN BROUGHT TO TAX. IT WAS THE SUBMI SSION THAT IT WAS THE CLOSING BALANCE AT THE END OF EACH YEAR THAT WAS LIABLE TO BE ASSESSED AND NOT THE PEAK CREDIT. THE LD. DR VEHEMENTLY SUPPORTED THE ORDER OF THE AO. 5. IN REPLY, THE LD. AR SUBMITTED THAT THE PEAK CREDIT HAD BEEN RIGHTLY ADDED AND T HERE WAS NO ERROR IN THE FINDING OF THE LD. CIT(A) THAT IT WAS ONLY THE PEAK CREDIT THAT WAS LIABLE TO BE ADDED. IT WAS, HOWEVER, THE SUBMISSION THAT IN ITA NO. 282/PNJ/2014 THE ASSESSEE HAS CHALLENGED THE ACTION OF THE LD. CIT(A) IN HOLDING THAT THE SAID PEAK CREDIT WAS LIABLE TO BE ASSESSED IN THE HANDS OF SHRI GIRDHARILAL W. BAFNA WHEN THE SAME BELONGED TO THE TRADING BUSINESS OF SHRI GAUTAMCHAND W. BAFNA AND ADEQUATE PROOF HAD BEEN PRODUCED TO SHOW THAT THE SAME HAD ALSO BEEN OFFERED IN THE HANDS OF SH RI GAUTAMCHAND W. BAFNA. IT WAS THE SUBMISSION THAT THE ADDITION WAS NOT LIABLE TO BE MADE IN THE HANDS OF SHRI GIRDHARILAL W. BAFNA BUT OUGHT TO HAVE BEEN CONSIDERED IN THE HANDS OF SHRI GAUTAMCHAND W. BAFNA. IT WAS FURTHER SUBMISSION THAT SHRI GAUTAMCH AND W. BAFNA HAVING DECLARED AN INCOME AT 3% OF THE TURNOVER IN THE BANK ACCOUNT AND THE SAME HAVING BEEN ASSESSED AT 3.5%, NO FURTHER ADDITION WAS LIABLE TO BE MADE. 6. IT WAS THE FURTHER SUBMISSION THAT GROUND NO. 5 IN ITA NO. 282/PNJ/2014 WAS AGAINST THE ACTION OF THE LD. CIT(A) IN NOT ADJUDICATIN G THE GROUND RELATING 5 ITA NOS. 257 TO 262 & 282/PNJ/2014 (A.YS : 2005 - 06 TO 2007 - 08) TO ADDITION OF RS. 70,000/ - ON ACCOUNT OF SALARY RECEIVED FROM M/S. GAUTAM TRADING CO. WHICH WAS INADVERTENTLY SHOWN AS INCOME WHILE FILING THE ORIGINAL RETURN BUT WHICH HAD BEEN RECTIFI ED WHEN FILING THE RETURN U/S 153A. IT WAS THE SUBMISSION THAT THAT HE HAD NO OBJECTION IF THIS ISSUE WAS RESTORED TO THE FILE OF THE LOWER AUTHORITIES FOR RE - ADJUDICATION. 7. THE LD. AR ALSO DREW OUR ATTENTION TO PGS. 39 TO 41 OF THE PAPER BOOK , WHICH I S THE COPY OF THE ASSESSMENT ORDER IN THE CASE OF SHRI GAUTAMCHAND W. BAFNA FOR THE A.Y 2005 - 06 DT. 10.4.2008 WHEREIN , THE INCOME FROM THE SAID BANK ACCOUNT HAS BEEN ASSESSED AT 3.5% OF THE TURNOVER OF THE SAID BANK ACCOUNT FOR THE A.Y 2005 - 06. HE ALSO DR EW OUR ATTENTION TO THE S ALES TAX ORDER U/S 12A OF THE K.S.T ACT, 1957 WHEREIN THE ASSESSEE HAS SHOWN THE GROSS TURNOVER OF RS.2,52,9 4 ,430/ - AND A TAXABLE TURNOVER OF RS. 42,900/ - . IT WAS THE FURTHER SUBMISSION THAT THE SAID BANK ACCOUNT RELATES TO SHRI G AUTAMCHAND W. BAFNA AND THE TRANSACTIONS ARE LIABLE TO BE ASSESSED ONLY IN THE HANDS OF SHRI GAUTAMCHAND W. BAFNA. 8. IN RESPECT OF ITA NOS. 260 TO 262/PNJ/2014 IT WAS SUBMITTED BY THE LD. DR THAT THESE APPEALS WERE AGAINST THE ACTION OF THE LD. CIT( A) IN DELETING THE PROTECTIVE ADDITION MADE IN THE HANDS OF SHRI GAUTAMCHAND W. BAFNA APPLYING THE SAME PRINCIPLES OF PEAK CREDIT APPLIED BY THE LD. CIT(A) IN THE CASE OF SHRI GIRDHARILAL W. BAFNA. IT WAS THE SUBMISSION THAT ADMITTEDLY THE INCOME WAS LIAB LE TO BE ASSESSED ONLY IN ONE HAND. REVENUE HAS ASSESSED IT SUBSTANTIVELY IN THE HANDS OF SHRI GIRDHARILAL W. BAFNA AND PROTECTIVELY IN THE HANDS OF SHRI GAUTAMCHAND W. BAFNA. LD. CIT(A) HAS CONFIRMED THE SUBSTANTIVE ADDITION IN THE HANDS OF SHRI GIRDHAR ILAL W. BAFNA AND SUBJECT TO THE SUBSTANTIVE ADDITION IN THE HANDS OF SHRI GIRDHARILAL W. BAFNA HAS DELETED THE ADDITION IN THE HANDS OF SHRI GAUTAMCHAND W. BAFNA. 6 ITA NOS. 257 TO 262 & 282/PNJ/2014 (A.YS : 2005 - 06 TO 2007 - 08) 9. IN REPLY, THE LD. AR SUBMITTED THAT THE ADDITION, IF ANY, WAS LIABLE TO BE MADE ONLY I N THE HANDS OF SHRI GAUTAMCHAND W. BAFNA. IT WAS THE SUBMISSION THAT IT WAS NOT THE PEAK CREDIT THAT WAS LIABLE TO BE ADDED BUT ONLY 3.5% OF THE SAID TURNOVER AS HAD BEEN ASSESSED BY THE LD. AO ORIGINALLY IN HIS ASSESSMENT ORDER IN THE CASE OF SHRI GAUTAM CHAND W. BAFNA DT. 10.4.2008. 10. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS. AT THE OUTSET, THE MAIN ISSUE IS WHETHER THE INCOME FROM THE SAID UNDISCLOSED BANK ACCOUNT WAS LIABLE TO BE ASSESSED IN WHOSE HANDS. ADMITTEDLY, WE HAVE SHRI GAUTAMCHAND W. BAFNA STANDING UP AND OWNING UP THE TRANSACTIONS IN THE SAID ACCOUNT. SHRI GAUTAMCHAND W. BAFNA HAS ALSO FILED HIS RETURN OF INCOME ACCEPTING THE TRANSACTIONS IN THE SAID UNDISCLOSED BANK ACCOUNT. THE SAME WAS ALSO THE SUBJECT MATTER OF AN ASSESSMENT U/S 143(3) R.W.S. 147 VIDE ORDER DT. 10.4.2008 FOR THE A.Y 2005 - 06. THIS ASSESSMENT ORDER FOR THE A.Y 2005 - 06 WAS SUBJECT MATTER OF REVISION U/S 263 BY THE COMMISSIONER OF INCOME - TAX, HUBLI WHEREIN THE AO WAS DIRECTED TO VERIFY THE TRANSACTIONS IN THE SAID B ANK ACCOUNT. THE LD. CIT IN HIS ORDER U/S 263 HAS SPECIFICALLY HELD THAT THERE WAS NO MATERIAL EVIDENCE FURNISHED BEFORE THE AO TO HOLD THAT THE DEPOSITS IN THE IMPUGNED BANK ACCOUNT REPRESENTED THE ASSESSEES UNACCOUNTED SALES OR FOR THAT MATTER, THAT TH E CLOSING BALANCE AS ON 31.3.2005 REPRESENTED THE AMOUNT PAYABLE TO SUNDRY CREDITORS. THEREFORE, IN HIS CONSIDERED VIEW EVEN IF IT IS PRESUMED, BUT NOT ACCEPTED, THAT THE TRANSACTIONS IN THE IMPUGNED ACCOUNT REPRESENTS ASSESSEES UNACCOUNTED SALES, THE SA ID CLOSING BALANCE WAS REQUIRED TO BE CONSIDERED BY THE AO AS THE ASSESSEES UNACCOUNTED AND UNEXPLAINED ASSETS AND THUS ASSESSABLE AS INCOME FROM OTHER SOURCES, MORE SO, WHEN THE ASSESSEE HAS OWNED UP THE SAID AMOUNT. IT MUST BE MENTIONED HERE THAT SUR PRISINGLY EVEN AFTER SUCH A DETAILED DIRECTION BY THE LD. CIT, HUBLI U/S 263 AND EVEN AFTER 7 ITA NOS. 257 TO 262 & 282/PNJ/2014 (A.YS : 2005 - 06 TO 2007 - 08) SPECIFIC SEARCH ON THE ASSESSEE AND HIS BROTHER, THE AO HAS DONE NOTHING NOR HAS THE ASSESSEE PRODUCED ANY EVIDENCE TO PROVE THAT THE SAID TRANSACTIONS IN THE SAID UNDISCLOSED BANK ACCOUNT ARE THE TRADING TRANSACTIONS, MORE SO, THE UNACCOUNTED TRADING TRANSACTIONS OF THE ASSESSEE. ADMITTEDLY, UNLESS IT IS SHOWN THAT THE TRANSACTIONS IN THE SAID UNDISCLOSED BANK ACCOUNT, MORE SO, THE EXPENDITURE REPRESENTING THE WITH DRAWALS ARE LAID DOWN OR EXPENDED WHOLLY AND EXCLUSIVELY FOR THE PURPOSES OF THE BUSINESS, SUCH EXPENDITURE IS NOT ALLOWABLE U/S 37(1) ITSELF. MORE SO, WHEN THE ASSESSEE MAKES A CLAIM THAT A PARTICULAR TRANSACTION IS OF A PARTICULAR NATURE, IT IS FOR THE ASSESSEE TO PROVE THE SAME WITH SUBSTANTIAL EVIDENCE. HERE, AS A RESULT OF THE SEARCH ALSO NO EVIDENCE HAS BEEN FOUND TO SHOW THAT THE ASSESSEE HAS BEEN DOING UNACCOUNTED PURCHASE AND SALES. ALL THAT HAS BEEN FOUND IS THAT THERE IS UNACCOUNTED BANK ACCOU NT IN WHICH THERE IS SUBSTANTIAL NUMBER OF CASH TRANSACTIONS AND CHEQUE TRANSACTIONS. NO VERIFICATION IN RESPECT OF THE ENTRIES IN THE SAID BANK ACCOUNT HA S BEEN DONE. ADMITTEDLY, THIS BANK ACCOUNT HAS BEEN CLAIMED AND PART OF THE SAME HAS BEEN OFFERED A S INCOME AND IS ADMITTED TO BE EXPENDITURE AS THE TRANSACTION CONNECTED WITH SHRI GAUTAMCHAND W. BAFNA. THIS BEING SO, THERE IS NO IOTA OF EVIDENCE ON THE BASIS OF WHICH THE SAID BANK ACCOUNT HAS BEEN LINKED TO SHRI GIRDHARILAL W. BAFNA. CONSEQUENTLY, TH E ADDITION IN RESPECT OF THE SAID BANK ACCOUNT MADE IN THE HANDS OF SHRI GIRDHARILAL W. BAFNA BY THE AO AND AS CONFIRMED BY THE LD. CIT(A) STANDS DELETED. IN THE RESULT, THE SUBSTANTIVE ADDITION MADE IN THE HANDS OF SHRI GIRDHARILAL W. BAFNA STANDS DELETE D IN RESPECT OF THE SAID UNDISCLOSED BANK ACCOUNT. 11. IN RESPECT OF GROUND NO. 5 OF THE ASSESSEES APPEAL REPRESENTING THE ADDITION OF RS. 70,000/ - WHICH HAD BEEN WRONGLY DISCLOSED AS SALARY RECEIVED BY THE ASSESSEE FROM M/S GAUTAM TRADING CO., THIS IS SUE IS RESTORED TO THE FILE OF THE AO FOR RE - ADJUDICATION AND RE - VERIFICATION. THE ASSESSEE SHALL PRODUCE 8 ITA NOS. 257 TO 262 & 282/PNJ/2014 (A.YS : 2005 - 06 TO 2007 - 08) ADEQUATE EVIDENCE TO SUBSTANTIATE HIS CLAIM THAT THE ASSESSEE HAS NOT RECEIVED THE SALARY OF RS. 70,000/ - AND THE SALARY OF RS. 70,000/ - FROM M/S. GAU TAM TRADING CO. WAS NOT PAID TO THE ASSESSEE AND TO WHOM IT WAS PAID. IF THE ASSESSEE IS ABLE TO SUBSTANTIATE HIS CASE THAT THE SAID AMOUNT OF RS. 70,000/ - WAS NOT RECEIVED BY THE ASSESSEE AS SALARY FROM M/S. GAUTAM TRADING CO., THE AO SHALL DELETE THE SA ME, FAILING WHICH THE ADDITION SHALL REMAIN CONFIRMED. 12. IN THE RESULT, THE APPEALS FILED BY THE REVENUE BEING ITA NOS. 257 TO 259/PNJ/2014 STAND DISMISSED AND THE APPEAL OF THE ASSESSEE BEING ITA NO. 282/PNJ/2014 STANDS PARTLY ALLOWED FOR STATISTICAL PURPOSES. 13. IN THE CASE OF SHRI GAUTAMCHAND W. BAFNA, AS MENTIONED EARLIER, THE ASSESSEE HAS CLAIMED THE UNDISCLOSED BANK ACCOUNT AS BELONGING TO HIM AND HE HAS ALSO CLAIMED THAT THE SAID UNDISCLOSED BANK ACCOUNT CONTAINS UNDISCLOSED TRADING TRANSACT IONS. HE HAS CLAIMED THIS BEFORE THE AO AND BEFORE THE SALES TAX AUTHORITIES. HOWEVER, INTERESTINGLY A PERUSAL OF THE SALES TAX ASSESSMENT ORDER U/S 12A OF THE K.S.T ACT SHOWS THAT THE GROSS TURNOVER DECLARED IN THE REVISED FORM - IV IS RS. 2,52,94,430/ - A ND THE EXEMPTED TURNOVER IS RS.2,52,51,53 0 / - AND THE TAXABLE TURNOVER IS ONLY RS. 42,900/ - . COMPUTATION OF THE SAME SHOWS THAT THE ALLEGED PURCHASES IN RESPECT OF THE SAID UNDISCLOSED BANK ACCOUNT FOR THE YEAR ENDED 31.3.2005 IS RS. 1,20,07,218/ - AND THE ALLEGED SALES IS RS. 1,15,24,380/ - , T HE RESULTANT FIGURE BEING A LOSS OR AVAILABILITY OF CLOSING STOCK . IT IS AFTER CONSIDERING THESE TWO FIGURES , BEING THE ALLEGED PURCHASES AND ALLEGED SALES , THAT THE TURNOVER OF RS. 2,52,94,430/ - HAS BEEN ARRIVED AT. THEREFORE, ADMITTEDLY NOT ONE TRANSACTION IN THE SAID UNDISCLOSED BANK ACCOUNT IS A TRANSACTION ON WHICH LEVY OF SALES TAX IS CALLED FOR AS PER THE ASSESSEE HIMSELF. SURPRISINGLY, EVEN THE SALES TAX AUTHORITIES HAVE NOT DONE ANY VERIFICATION. IN THESE CIRCUMSTANCES, AS THE TRANSACTIONS IN THE SAID 9 ITA NOS. 257 TO 262 & 282/PNJ/2014 (A.YS : 2005 - 06 TO 2007 - 08) UNDISCLOSED BANK ACCOUNT REMAINS COMPLETELY UNVERIFIED AND EVEN THE ORDER OF THE LD. CIT U/S 263 HAS NOT BEEN COMPLIED WIT H IN LETTER OR IN SPIRIT, THE ISSUE OF THE UNDISCLOSED BANK ACCOUNT IS RESTORED TO THE FILE OF THE AO WITH THE FOLLOWING DIRECTIONS : I) IN RESPECT OF THE CASH TRANSACTIONS IN THE SAID BANK ACCOUNT, THE PEAK CREDIT IS TO BE ASSESSED. II) IN RESPECT OF THE C HEQUE OR MICR TRANSACTIONS, THE ASSESSEE IS TO PROVE THE SOURCE OF THE SAID FUNDS AND THE BANK ACCOUNT FROM WHICH THE SAID FUNDS HAVE FLOWN OR TRANSFERRED TO THE SAID UNDISCLOSED ACCOUNT AND THE PURPOSE FOR WHICH THE SAID TRANSACTIONS WERE INVOLVED. IF TH E ASSESSEE IS UNABLE TO EXPLAIN THE TRANSACTIONS IN RESPECT OF THE CHEQUES/ MICR TRANSACTIONS, THE SAME IS TO BE TREATED AS THE INCOME OF THE ASSESSEE. 14. IN THE RESULT, THE ISSUE OF UNDISCLOSED INCOME IN RESPECT OF THE UNDISCLOSED S.B ACCOUNT NO. 70647 W ITH AXIS BANK, HUBLI IS RESTORED TO THE FILE OF THE AO FOR RE - ADJUDICATION AFTER VERIFICATION AND FOR CONSIDERATION IN THE HANDS OF SHRI GAUTAMCHAND W. BAFNA AFTER GRANTING THE ASSESSEE ADEQUATE OPPORTUNITY TO SUBSTANTIATE HIS CASE. IN THE RESULT, THE APP EAL S OF THE REVENUE IN ITA NOS. 260 TO 262/PNJ/2014 ARE ALLOWED FOR STATISTICAL PURPOSE. ORDER PRONOUNCED IN THE OPEN COURT ON 15/06/2015. S D / - (N.K. BILLAIYA) ACCOUNTANT MEMBER S D / - ( GEORGE MATHAN ) JUDICIAL MEMBER PLACE : PANAJI / GOA DATED : 1 5 /06/ 201 5 *SSL* 10 ITA NOS. 257 TO 262 & 282/PNJ/2014 (A.YS : 2005 - 06 TO 2007 - 08) COPY TO : (1) APPELLANT (2) RESPONDENT S (I) SHRI GIRDHARILAL W. BAFNA & (II) SHRI GAUTAMCHAND W. BAFNA (3) CIT(A) CONCERNED (4) CIT CONCERNED (5) D.R (6) GUARD FILE TRUE COPY, BY ORDER , 11 ITA NOS. 257 TO 262 & 282/PNJ/2014 (A.YS : 2005 - 06 TO 2007 - 08) DATE INITIAL ORIGINAL DICTATION PAD & DRAFT ORDER ARE ENCLOSED IN THE FILE 1. DRAFT DICTATED ON 15/06/2015 SR.PS 2. DRAFT PLACED BEFORE AUTHOR 1 6 /06/2015 SR.PS 3. DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER 1 6 /06/2015 JM/AM 4. DRAFT DISCUSSED/APPROVED BY SECOND MEMBER 1 7 /06/2015 JM/AM 5. APPROVED DRAFT COMES TO THE SR.PS/PS 1 7 /06/2015 SR.PS 6. DATE OF PRONOUNCEMENT 15/06/2015 SR.PS 7. FILE SENT TO THE BENCH CLERK 1 7 /06/2015 SR.PS 8. DATE ON WHICH FILE GOES TO THE HEAD CLERK 9. DATE OF DISPATCH OF ORDER