Sri Gopalan Natrajan, V. DCIT,

ITA 264/RAN/2014

• Counselvise Citation: [2015] 134 COUNSELVISE.COM (IT) 0425 (ITAT-RANCHI)
• Duration Of Justice: 1 year(s) 2 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-11-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2007-2008
• Appeal Filed On: 12-08-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: CHOUDHARY ORAON
• Keywords: Documents seized
• Section: 132

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL RANCHI CIRCUIT BENCH, RANCHI BEFORE SHRI N.S. SAINI, HONBLE ACCOUNTANT MEMBER AND SHRI GEORGE MATHAN, HONBLE JUDICIAL MEMBER ITA NO. 264/RAN/2014 (ASST. YEAR : 2007-08) SHRI GOPALAN NATRAJAN, NEELKAMAL BARIATU ROAD, RANCHI. VS. DCIT, CENTRAL CIRCLE-1, RANCHI. PAN NO. AAXPN 5092 N (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI S.K. PODDAR WITH SHRI M.K. CHOUDHARY ADV. DEPARTMENT BY : SHRI CHOUDHARY ORAON - DR DATE OF HEARING : 02/11/2015. DATE OF PRONOUNCEMENT : 02/11/2015. O R D E R PER N.S. SAINI, ACCOUNTANT MEMBER THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST TH E ORDER OF COMMISSIONER OF INCOME TAX (APPEALS), RANCHI, DATED 29/05/2014. 2. THE SOLE ISSUE INVOLVED IN THIS APPEAL IS THAT TH E COMMISSIONER OF INCOME TAX (APPEALS) ERRED IN CONFIRMING THE ADDITI ON OF RS. 2,35,000/- UNDER THE HEAD UNDISCLOSED SALARY TO THE TOTAL IN COME OF THE ASSESSEE. 3 . WE HAVE HEARD RIVAL SUBMISSIONS AND PERUSED THE O RDERS OF THE LOWER AUTHORITIES AND THE MATERIALS AVAILABLE ON RE CORD. IN THE INSTANT CASE, THE ASSESSING OFFICER OBSERVED THAT FROM A PE RUSAL OF BOOKS OF ACCOUNTS/DOCUMENTS/PAPERS SEIZED FROM THE EMPLOYER OF THE ASSESSEE M/S. RUNGTA PROJECTS LTD. DURING THE COURSE OF SEAR CH UNDER SECTION 132 OF THE ACT ON 07/09/2007, MARKED AS SKD-16, PAGE NO . 110 WHICH IS A 2 ITA NO. 264/RAN/2014 SALARY PARTICULARS AS ON 30/06/2006 SHOWED THAT SAL ARY OF SHRI GOPALAN NATRAJAN WAS RS. 30,000/- P.M., BUT SHRI GOPALAN NA TRAJAN DID NOT FILE HIS INCOME TAX RETURN FOR THE ASSESSMENT YEAR 2008- 09 ONWARDS ON THE GROUND THAT HIS INCOME WAS BELOW TAXABLE LIMIT. AC CORDING TO THE ASSESSING OFFICER, AS PER THE DOCUMENTS SEIZED FROM THE PREMISES OF M/S. RUNGTA PROJECTS LTD., THE ASSESSEE WAS GETTING SALARY OF RS.30,000/- P.M. WHICH ANNUALLY COMES TO RS. 3,60,0 00/-. THE ASSESSEE HAD SHOWN OF RS. 1,25,000/- FOR THE ASSESSMENT YEAR 2008-09 AND HENCE, THE ASSESSING OFFICER ADDED THE DIFFERENCE A MOUNT OF RS.2,35,000/- AS UNDISCLOSED INCOME TO THE TOTAL IN COME OF THE ASSESSEE. 4. ON APPEAL, COMMISSIONER OF INCOME TAX (APPEALS) CO NFIRMED THE ACTION OF THE ASSESSING OFFICER ON THE GROUND THAT THE ESTIMATION MADE BY THE ASSESSING OFFICER IS BASED ON SEIZED MATERIA L FROM THE OFFICE OF THE EMPLOYER OF THE ASSESSEE. HE OBSERVED THAT IT IS SEEN THAT THE ASSESSEE WAS WORKING WITH THE EMPLOYER FOR THE FULL FINANCIAL YEAR 2006- 07 AND DRAWING MONTHLY SALARY. THE TRUE DETAILS OF MONTHLY EMOLUMENTS PAID TO ASSESSEE AS ON 30/06/2006 WERE R S. 30,000/- P.M. AS PER THE SEIZED DOCUMENT. THE ASSESSEE HAS NOT A BLE TO ESTABLISH THAT THE FIGURES OF SALARY RECORDED IN THE SEIZED D OCUMENTS ARE INCORRECT. THEREFORE, HE CONFIRMED THE ACTION OF T HE ASSESSING OFFICER. 5. AUTHORIZED REPRESENTATIVE OF THE ASSESSEE ARGUED B EFORE US THAT THE SEIZED DOCUMENT REPRESENTED PARTICULARS OF SALA RY AS ON 30/06/2006, THEREFORE IT WAS HIS SUBMISSION THAT NO ADDITION TO THE INCOME OF THE ASSESSEE COULD BE MADE BEYOND 30/06/2 006. HE ALSO SUBMITTED THAT ON THE BASIS OF SEIZED DOCUMENT FROM M/S. RUNGTA PROJECTS LTD., NO ADDITION WAS MADE IN THE HANDS OF M/S. RUNGTA PROJECTS LTD. ON ACCOUNT OF UNDISCLOSED EXPENDITURE . THEREFORE, IT WAS THE SUBMISSION THAT NO ADDITION COULD BE MADE IN TH E HANDS OF THE ASSESSEE. 3 ITA NO. 264/RAN/2014 6 . ON THE OTHER HAND, DEPARTMENTAL REPRESENTATIVE SU PPORTED THE ORDERS OF THE LOWER AUTHORITIES. 7 . WE FIND THAT IT IS NOT IN DISPUTE THAT THE SEIZED DOCUMENT MARKED AS SKD-16, PAGE NO. 110 FROM THE PREMISES OF M/S. R UNGTA PROJECTS LTD. DURING THE COURSE OF SEARCH CARRIED OUT UNDER SECTION 132 OF THE ACT ON 07/09/2007. THE AUTHORIZED REPRESENTATIVE OF TH E ASSESSEE HAS MADE A STATEMENT AT THE BAR THAT NO ADDITION ON ACC OUNT OF UNDISCLOSED EXPENDITURE WAS MADE IN THE HANDS OF THE M/S. RUNGT A PROJECTS LTD. FROM WHOSE PREMISES THE SAID DOCUMENT WAS SEIZED. THEREFORE, IN OUR CONSIDERED OPINION WHEN IN THE HANDS OF THE SEARCHE D PERSON, THERE IS NO ADDITION MADE ON ACCOUNT OF UNDISCLOSED EXPENDIT URE IN THE BOOKS OF ACCOUNTS, THEN AS A COROLLARY NO ADDITION ON ACCOUN T OF UNDISCLOSED INCOME OF SALARY CAN BE MADE IN THE HANDS OF THE AS SESSEE. WE FIND FORCE IN THE ARGUMENT OF THE AUTHORIZED REPRESENTAT IVE OF THE ASSESSEE THAT THE SEIZED DOCUMENT TALKS OF SALARY PAID AS ON 30/06/2006 AND THEREFORE, ON THE BASIS OF THIS DOCUMENT, ADDITION CANNOT BE MADE FOR THE PERIOD AFTER 30/06/2006 FOR UNDISCLOSED INCOME AS THERE IS NO EVIDENCE FOR THE SAME. WE, THEREFORE SET ASIDE THE ORDERS OF THE LOWER AUTHORITIES AND DELETE THE ADDITION OF RS. 2,35,000 /- MADE IN THE HANDS OF THE ASSESSEE ON ACCOUNT OF UNDISCLOSED INCOME FR OM SALARY EARNED FROM M/S. RUNGTA PROJECTS LTD. AND ALLOW THE GROUND OF APPEAL OF THE ASSESSEE. 8 . IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED. ORDER PRONOUNCED IN THE COURT AT THE CLOSE OF THE H EARING ON MONDAY, THE 2 ND DAY OF NOVEMBER, 2015 AT RANCHI. SD/- SD/- (GEORGE MATHAN) (N.S.SAINI) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED : 02 ND NOVEMBER, 2015. 4 ITA NO. 264/RAN/2014 VR/- COPY TO: 1. THE ASSESSEE. 2. THE REVENUE. 3. THE CIT 4. THE CIT(A) 5. THE D.R. 6. GUARD FILE. BY ORDER ASSISTANT REGISTRAR I.T.A.T., RANCHI 5 ITA NO. 264/RAN/2014 DATE INITIAL ORIGINAL DICTATION PAD & DRAFT ARE ENCLOSED IN THE FILE 1. DRAFT DICTATED ON 02/11/2015 SR.PS 2. DRAFT PLACED BEFORE AUTHOR 03/11/2015 SR.PS 3. DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER 03/11/2015 JM/AM 4. DRAFT DISCUSSED/APPROVED BY SECOND MEMBER 03/11/2015 JM/AM 5. APPROVED DRAFT COMES TO THE SR.PS/PS 03/11/2015 SR.PS 6. DATE OF PRONOUNCEMENT 02/11/2015 SR.PS 7. FILE SENT TO THE BENCH CLERK 03/11/2015 SR.PS 8. DATE ON WHICH FILE GOES TO THE HEAD CLERK 9. DATE OF DISPATCH OF ORDER