The DCIT, Central Circle-2, RAJKOT-GUJARAT V. Shri Ashwin H. Ajani, Bhuj

ITA 266/RJT/2011

• Counselvise Citation: 26624914 RSA 2011
• Duration Of Justice: 2 year(s) 6 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-01-2014
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 09-01-2014
• Assessment Year: 2009-2010
• Appeal Filed On: 13-06-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DR J B JHAVERI
• Assessee Lawyers: J C RAMPURA C A
• Keywords: Unexplained expenditure
• Section: 132; 69C

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBULAL; RAJKOT BENCH, RAJKOT. BEFORE SHRI T. K. SHARMA JM AND SHRI B. R. JAIN AM ITA NO. 266/RJT/2011 / ASSESSMENT YEAR 2009-10. THE DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-2, RAJKOT. ( / APPELLANT V/S ASHWIN HARISHANKAR AJANI, KRISHNA BHUVAN, A-46, GARBI CHOWK, BHUJ. PAN- AMFPG9887L / RESPONDENT ! '# / REVENUE BY DR. J.B. JHAVERI, D.R. $% ! '# / ASSESSEE BY SHRI J.C. RAMPURA, C.A. ' & ' %( / DATE OF HEARING 09/01/2014 ) %( / DATE OF PRONOUNCEMENT 09/01/2014 / ORDER PER B. R. JAIN, A. M. : THIS APPEAL BY THE REVENUE AGAINST THE ORDER DATED 01/04/2011 OF SHRI N.S. DAYAM, THE LEARNED CIT(A)-IV, AHMEDABAD R AISES GROUNDS AS UNDER:- 1 THE LEARNED CIT(A) ERRED IN LAW AND ON FACTS IN DELETING THE ADDITION OF RS. 15,22,006/- WHICH WAS MADE ON ACCOU NT OF UNEXPLAINED EXPENDITURE U/S 69C OF THE ACT. 2 ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE , THE LD. CIT(A) OUGHT TO HAVE UPHELD THE ORDER OF THE ASSESS ING OFFICER. 2. BRIEFLY THE FACTS ARE THAT DURING THE COURSE OF SEARCH U/S 132 OF THE I.T. ACT, 1961 (IN SHORT THE ACT), THE CASH FOUND A MOUNTED TO RS. 1,42,300/- AS AGAINST BOOK CASH OF RS. 16,64,306/-. THE DIFFER ENCE OF RS. 15,22,006/- WAS TREATED AS UNEXPLAINED EXPENDITURE U/S 69C OF T HE ACT. ACCORDINGLY, THE ADDITION STOOD MADE TO THE DECLARED INCOME OF T HE ASSESSEE. 3. IN APPEAL, THE LD. CIT(A) FOUND THAT THE SOURCE OF CASH IS FOUND EXPLAINED. MERELY BECAUSE THE CASH WAS DEFICIT, THE SAME CANNOT BE TREATED AS UNEXPLAINED EXPENDITURE U/S 69C OF THE A CT. HE FOLLOWED UNREPORTED DECISION OF THE RAJKOT BENCH OF THE TRIB UNAL VIDE ORDER DATED 22/01/2010 IN THE CASE OF SHRI VALJIBHAI B KHUNT V S. ACIT IN ITA NO. 1010/RJT./2009 AND DELETED THE ADDITION. 4. HEARD PARTIES WITH REFERENCE TO MATERIAL ON RECO RD. THE REVENUE HAS NOT BEEN ABLE TO SHOW THAT THE CASH PHYSICALLY FOUN D LESS DURING THE SEARCH HAS BEEN UTILIZED FOR INCURRING ANY EXPENDIT URE. MERELY ON THE BASIS OF PRESUMPTION, SHORTAGE OF CASH CANNOT BE TREATED AS UNEXPLAINED EXPENDITURE. THE SHORTAGE MAY BE BECAUSE THE SEARCH PARTY MIGHT NOT HAVE CARRIED OUT PROPER RUMMAGE OF THE SEARCHED PRE MISES OR THE SHORTAGE MAY BE ATTRIBUTABLE TO ANY OTHER REASON. F OR LACK OF EVIDENCE, IT DOES NOT GIVE RISE TO PRESUMPTION OF EXPENDITURE FO R INVOKING PROVISIONS OF SECTION 69-C OF THE ACT. WE, THEREFORE, DO NOT FIN D ANY INFIRMITY IN THE DECISION TAKEN BY THE LD. CIT(A) IN DELETING THE AD DITION. FINDING NO MERIT IN THE GROUNDS RAISED IN APPEAL, THE SAME STAND REJ ECTED. 5. IN THE RESULT, APPEAL BY REVENUE STANDS DISMISSE D. ORDER PRONOUNCED IN THE OPEN COURT ON 09/01/2014. SD/- SD/- ( T. K. SHARMA ) ( B. R. JAIN ) '* /JUDICIAL MEMBER #( '* / ACCOUNTANT MEMBER *#+ ,*-/ ORDER DATE 09/01/2014 /RAJKOT *RANJAN / COPY OF ORDER FORWARDED TO:- 1. /APPELLANT- THE D.C.I.T., CENTRAL CIRCLE-2, RAJKOT . 2. /RESPONDENT- ASHWIN HARISHANKAR AJANI, BHUJ. 3. '-2- % & 3% / CIT-I, RAJKOT. 4. & 3%- / CIT (A)-IV, AHMEDABAD. 5. 789 % , , / DR, ITAT, RAJKOT 6. 9; <= / GUARD FILE. *#+ '# / BY ORDER , TRUE COPY PRIVATE SECRETARY, , INCOME TAX APPELLATE TRIBUNAL, RAJKOT.