M/S VIDARBHA SPRINGS PRIVATE LIMITED , NAGPUR V. INCOME TAX OFFICER ,WARD -6(1), NAGPUR

ITA 273/NAG/2018

AI Insights

The case involves M/s. Vidarbha Springs Pvt. Ltd., which appealed against the order of the CIT(A)-4, Nagpur, concerning the addition of Rs.30 lakhs to their income as undisclosed income for the assessment year 2006-2007. This addition was based on seized documents during a search operation under section 132 of the Income Tax Act, 1961, which indicated cash payments made by the assessee for acquiring property. The Tribunal noted that the addition was supported by the presumption of correctness under section 292C of the Act, despite the assessee's argument that there was no proven nexus between them and the person to whom the payments were made.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 136611 (ITAT-NAGPUR)
• Duration Of Justice: 4 year(s) 8 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-09-2023
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 29-08-2023
• Assessment Year: 2006-2007
• Appeal Filed On: 30-12-2018
• Other Referred Cases: Shri Vilas Harde's case
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Search and seizure
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL NAGPUR BENCH : NAGPUR [THROUGH VIRTUAL HEARING AT INCOME TAX APPELLATE TRIBUNAL ; PUNE BENCHES; PUNE] BEFORE SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER AND DR. DIPAK RIPOTE, ACCOUNTANT MEMBER I.T.A.No.273/NAG./2018 Assessment Year 2006-2007 M/s. Vidarbha Springs Pvt. Ltd., Plot No.K-11, 5 Star Industrial Area, MIDC Butiboki, Nagpur - 440 108 Maharashtra. PAN AABCV8591R vs. The Income Tax Officer, Ward – 6 (1), Aayakar Bhavan, Telangkhedi Road, Civil Lines, Nagpur. Maharashtra. (Appellant) (Respondent) For Assessee : Shri Abhay Agrawal, Advocate For Revenue : Shri Kailash Kanojiya, Sr. DR Date of Hearing : 01.09.2023 Date of Pronouncement : 28.09.2023 ORDER PER SATBEER SINGH GODARA, J.M. : This assessee’s appeal for assessment year 2006-2007, arises against the CIT(A)-4, Nagpur’s Order No.CIT(A)-4/ 249/13- 14, dated 31.01.2017, involving proceedings u/s.153A r.w.s. 143(3) of the Income Tax Act, 1961 (in short “the Act”). Heard both the parties. Case file perused. 2. Coming to the assessee’s sole substantive grievance that both the lower authorities have erred in law and on facts in adding the alleged undisclosed income of Rs.30 lakhs, we note that the CIT(A)'s corresponding detailed discussion to this effect reads as under : 2 ITA.No.273/NAG./2018 3 ITA.No.273/NAG./2018 4 ITA.No.273/NAG./2018 5 ITA.No.273/NAG./2018 6 ITA.No.273/NAG./2018 3. Suffice to say, it has come on record with the able assistance coming from both the sides that this is an instance of a search action dated 07.11.2006 carried out by the department u/sec.132 of the Act. And that the departmental authorities had come across the relevant seized material representing a book marked as “Annexure B-1 to 6” [pages 1 to 17] during this search indicating assessee’s cash payments of Rs.30 lakhs for acquiring plot/flat/shop, as the case may be, involving four instances of Rs.10 lakhs, Rs.5 lakhs and Rs.7.5 lakhs [twice], respectively made to the another searched person Shri Vilas Harde. This made the learned lower authorities to treat the sum total of the foregoing four instances to the tune of Rs.30 lakhs as assessee’s undisclosed income. It is in this backdrop that the things are crystal clear before us that the impugned addition is indeed based in seized material only carrying presumption of correctness u/sec.292C of the Act. 4. Faced with the situation, the assessee’s case before us is that the department has failed to prove the clinching nexus that Shri Vilas Harde herein is assessee’s director or share holder, as the case may be and, therefore, the impugned addition deserves to be deleted. Learned counsel next invited our attention to the tribunal’s first round order dated 26.06.2011 setting aside the matter to the Assessing Officer in very terms. We are afraid that even if it is accepted that the 7 ITA.No.273/NAG./2018 learned lower authorities have failed to prove assessee’s nexus with Shri Vilas Harde, we are of the considered view that such a lapse would not invalidate the impugned addition itself which is based on seized incriminating material only. We reiterate that this tribunal’s another coordinate bench’s order in Shri Vilas Harde’s case (supra) has already examined the entire facts and circumstances in concluding that the said cash entries of Rs.30 lakhs indeed involved cash payments by assessee only. We find no merit in assessee’s instant technical arguments in these facts and circumstances. The impugned addition stand confirmed therefore. Ordered accordingly. 5. This assessee’s appeal is dismissed. Order pronounced in the open Court on 28.09.2023. Sd/- Sd/- [DR. DIPAK P. RIPOTE] [SATBEER SINGH GODARA] ACCOUNTANT MEMBER JUDICIAL MEMBER Pune, Dated 28 th September, 2023 VBP/- Copy to 1. The applicant 2. The respondent 3. The CIT(A)-2, Nagpur. 4. The PCIT concerned 5. D.R. ITAT, Nagpur Bench, Nagpur. 6. Guard File. //By Order// //True Copy // Assistant Registrar, ITAT, Pune Benches, Pune. 8 ITA.No.273/NAG./2018 S.No. Details Date 1 Draft dictated on 25.09.2023 Sr.PS 2 Draft placed before author 26.09.2023 Sr.PS 3 Draft proposed & placed before the Author .09.2023 J.M. 4 Draft discussed/approved by Second Member .09.2023 A.M. 5 Approved Draft comes to the Sr. PS/PS .09.2023 Sr.PS 6 Kept for pronouncement on .09.2023 Sr.PS 7 Date of uploading of Order .09.2023 Sr.PS 8 File sent to Bench Clerk .09.2023 Sr.PS 9 Date on which the file goes to the Head Clerk 10 Date on which file goes to the A.R. 11 Date of Dispatch of order