ACIT, Cir-4(1), Hyderabad V. Sri Inderjeet Singh Makhija, Hyderabad

ITA 293/HYD/2011

• Counselvise Citation: [2011] 140 COUNSELVISE.COM (IT) 53587 (ITAT-HYDERABAD)
• Duration Of Justice: 6 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-09-2011
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2008-2009
• Appeal Filed On: 25-02-2011
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: T VENKAT REDDY
• Assessee Lawyers: P MURALI MOHANA RAO
• Keywords: Income from undisclosed sources

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD B BENCH, HYDERABAD BEFORE SHRI G.C. GUPTA, VICE PRESIDENT AND SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER ITA NO. 293/HYD/2011 (ASSESSMENT YEAR 2008-09) ACIT, CIRCLE-4(1) HYDERABAD VS SHRI INDERJEET SINGH MAKHIJA HYDERABAD PAN: AGQPS2107N APPELLANT RESPONDENT APPELLANT BY: SHRI T. VENKAT REDDY RESPONDENT BY: SHRI P. MURALI MOHANA RAO DATE OF HEARING: 30.08.2011 DATE OF PRONOUNCEMENT: 09.09.2011 ORDER PER CHANDRA POOJARI, A.M. THIS APPEAL BY THE REVENUE IS DIRECTED AGAINS T THE ORDER OF THE CIT(A)-V, HYDERABAD DATED 02.12.2010 FOR ASSESSMENT YEAR 2008- 09. 2. THE REVENUE RAISED THE FOLLOWING GROUNDS OF APPE AL: 1. THE CIT(A) ERRED BOTH ON FACTS AND IN LAW. 2. THE CIT(A) IS NOT CORRECT IN HOLDING THAT THE CA SH FOUND DURING THE COURSE OF SEARCH REFLECTS THE INCOME EARNED FROM THE BUSINESS CARRIED OUT OUTSIDE THE BOOKS. 3. THE CIT(A) SHOULD HAVE CONFIRMED THE ADDITION MADE ON ACCOUNT OF UNEXPLAINED CASH FOUND DURING THE COURSE OF SEARCH WHERE THE ASSESSEE HAS NOT OFFERED ANY EXPLANATION REGARDING THE SOURCE OF THE CASH FOUND. 3. BRIEF FACTS OF THE ISSUE ARE THAT AN AMOUNT OF R S. 23,37,110 WAS FOUND DURING THE COURSE OF SEARCH & SEIZURE ACT ION. THE ASSESSING OFFICER NOTICED THAT THE ASSESSEE WAS NOT MAINTAINING ANY REGULAR BOOKS OF ACCOUNT AND ALSO FOUND THAT NO EXPLANATION I.T.A. NO. 293/HYD/2011 SHRI INDERJEET SINGH MAKHIJA ==================== 2 WAS GIVEN REGARDING THE CASH. THE ASSESSEE SUBMITT ED BEFORE THE ASSESSING OFFICER THAT THE ASSESSEE HAS ALREADY INF ORMED ALL THE DETAILS OF CASH BALANCE AVAILABLE DURING THE COURSE OF SEARCH. HOWEVER, THE ASSESSING OFFICER DID NOT SATISFY AND MADE THE ADDITION OF RS. 23,37,110. 4. ON APPEAL, THE CIT(A) DELETED THE ADDITION HOLDI NG THAT DURING THE ASSESSMENT PROCEEDINGS, THE ASSESSING OF FICER HAS NOT FOUND ANY OTHER SOURCE OF INCOME BEYOND THE ONE DIS CUSSED. THE BUSINESS OF AUTO-FINANCE IS BEING CARRIED OUT OUTSI DE THE BOOKS, MOSTLY IN CASH. SINCE SUBSTANTIAL AMOUNTS HAVE BEE N ADDED DURING EACH YEAR, IT IS CLEAR THAT THE CASH AVAILABILITY P ERTAINS TO THE ABOVE MENTIONED SOURCE OF INCOME ONLY. IT IS NOT THE CAS E OF THE ASSESSEE THAT THE CASH FOUND DURING THE COURSE OF S EARCH HAS EMANATED FROM A DIFFERENT SOURCE. IT IS CLEAR THAT THE ASSESSEE HAS BEEN TAXED ON HIS UNACCOUNTED INCOME, HE CANNOT AGA IN BE TAXED ON THE SAME INCOME. THE CASH FOUND DURING THE COUR SE OF SEARCH REFLECTS THE SAME INCOME. IN VIEW OF THESE FACTS A ND CIRCUMSTANCES, THE CIT(A) HELD THAT NO ADDITION ON ACCOUNT OF CASH CAN BE MADE SINCE THE INCOME FROM WHICH CASH HAS EM ANATED HAS ALREADY BEEN BROUGHT TO TAX. ACCORDINGLY, THE CIT( A) DELETED THE ADDITION. 5. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE M ATERIAL AVAILABLE ON RECORD. FOR THIS ASSESSMENT YEAR THE ASSESSEE WAS IN APPEAL BEFORE THIS TRIBUNAL IN I.T.A. NO. 17/HYD/20 11. THE TRIBUNAL VIDE ORDER DATED 28 TH JULY, 2011 SET ASIDE THE ISSUE IN THAT APPEAL TO THE FILE OF THE ASSESSING OFFICER FOR FRESH CONSIDE RATION WITH A DIRECTION. BEING SO, THE ASSESSING OFFICER WHILE P ASSING THE CONSEQUENTIAL ORDER, SHOULD CONSIDER THE DISPUTE BE FORE US IN THIS APPEAL AND IF THERE IS SUFFICIENT CASH BALANCE AVAI LABLE FROM THE MONEY LENDING BUSINESS, THE SAME HAS TO BE CONSIDER ED AS CASH I.T.A. NO. 293/HYD/2011 SHRI INDERJEET SINGH MAKHIJA ==================== 3 AVAILABLE WITH THE ASSESSEE TOWARDS THE UNEXPLAINED CASH AND GIVE SET OFF TO THAT EXTENT AND DECIDE THE ISSUE ACCORDI NGLY. 6. THE APPEAL OF THE REVENUE IS ALLOWED FOR STATIST ICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 9 TH SEPTEMBER, 2011. SD/- (G.C. GUPTA) VICE PRESIDENT SD/- (CHANDRA POOJARI) ACCOUNTANT MEMBER HYDERABAD, DATED THE 9 TH SEPTEMBER, 2011 TPRAO COPY FORWARDED TO: 1. THE ACIT, CIRCLE-4(1), 5 TH FLOOR, AAYAKAR BHAVAN, BASHEERBAGH, HYDERABAD. 2. SHRI INDERJEET SINGH MAKHIJA, 3-5-45/2, RAMKOTI, HYDERABAD. 3. THE CIT(A)-V, HYDERABAD. 4. THE CIT-IV, HYDERABAD. 5. THE DR, B-BENCH, ITAT, HYDERABAD.