B.Kamaraj, Erode V. ITO, Erode

ITA 2974/CHNY/2014

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 86254 (ITAT-CHENNAI)
• Duration Of Justice: 1 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-02-2015
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: B
• Next Hearing Date: 30-01-2015
• Assessment Year: 2010-2011
• Appeal Filed On: 09-12-2014
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: A V SREEKANTH
• Assessee Lawyers: S SRIDHAR
• Section: 68

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH : CHENNAI . . , . . , !' [BEFORE SHRI B.R. BASKARAN, ACCOUNTANT MEMBER AND SHRI S. S. GODARA, JUDICIAL MEMBER] ./ I.T.A.NO.2974/MDS/2014 !' #$! / ASSESSMENT YEAR : 2010-11 SHRI B. KAMARAJ 74, JINNAH STREET ERODE 638 001 VS. THE INCOME TAX OFFICER WARD I(2) ERODE [PAN BJUPK 9323 G ] ( #$ / APPELLANT) ( %&#$ /RESPONDENT) %& ' ( / APPELLANT BY : SHRI S. SRIDHAR, ADVOCATE *+%& ' ( /RESPONDENT BY : SHRI A.V.SREEKANTH, JCIT , # - ' . /0 / DATE OF HEARING : 30-01-2015 12$' ' . /0 / DATE OF PRONOUNCEMENT : 06-02-2015 ' / O R D E R PER S.S.GODARA, JUDICIAL MEMBER THIS ASSESSEES PETITION SEEKS STAY OF THE IMPUG NED DEMAND OF ` 2,46,410/- ARISING FROM ADDITIONS OF ` 4 LAKHS PERTAINING TO VALUE OF STOCK ADMITTED IN THE COURSE OF SURVEY AND CASH D EPOSITS IN THE BANK ACCOUNT OF ` 1,50,500/-, MADE IN COURSE OF A REGULAR ASSESSMEN T S.P.NO.528/14 I.T.A.NO.2974/14 :- 2 -: FRAMED ON 28.3.2013 AND AFFIRMED IN THE CIT(A)S OR DER UNDER CHALLENGE. 2. AFTER ARGUING FOR SOMETIME, BOTH PARTIES EXPRESS NO OBJECTION IN CASE THE MAIN APPEAL ITSELF IS TAKEN U P FOR HEARING. THEREFORE, WE PROCEED TO DECIDE THE APPEAL ON MERIT S. 3. THE ASSESSEE, AN INDIVIDUAL, DEALS IN WHOLESALE AND RETAIL RICE BUSINESS. THE DEPARTMENT HAD CARRIED OUT A S URVEY IN HIS BUSINESS PREMISES ON 2.3.2010. THERE IS NO DISPUTE THAT THE REGULAR ACCOUNT BOOKS LIKE DAY BOOK, LEDGER, PURCHASE AND S ALE REGISTER PERTAINING TO THE AFORESAID COMMODITIES STOCK ARE NOT MAINTAINED. THE ASSESSEES FATHER SHRI G.BALAKRISHNAN HAD GOT RECORDED HIS STATEMENT. HE DEPOSED THAT THE IMPUGNED SURVEY H AD DISCLOSED PHYSICAL STOCK OF TWO CONCERNS NAMELY M/S G. BALAKR ISHNAN RICE MANDY OF ` 40,24,630/- AND PERIYAR TRADERS OF ` 11,04,840 TOTALLING TO ` 51,29,470/-. THIS WAS STATED TO BE THEIR ACCUMULAT ED INCOME SINCE THE YEAR 2007. SHRI G. BALAKRISHNAN UNDERTOOK TO ADMI T A SUM OF ` 40,24,630/- IN HIS CASE AND THE BALANCE AMOUNT OF ` 11,04,840/- TO BE DECLARED IN THE ASSESSEES CASE. THE ASSESSEE AL SO APPEARS TO HAVE AGREED WITH THE SAID STATEMENT. S.P.NO.528/14 I.T.A.NO.2974/14 :- 3 -: 4. THE ASSESSEE FILED HIS RETURN ON 31.8.2010 DISCLOS ING TOTAL INCOME OF ` 4,93,870/-. THE SAME WAS SUMMARILY PROCESSED. THE ASSESSING OFFICER TOOK UP SCRUTINY. HE INTER ALI A NOTICED FROM THE ASSESSEES COMPUTATION OF TOTAL INCOME THAT ONLY A SUM OF ` 7,04,840/- HAD BEEN DECLARED AS AGAINST THAT UNDERTAKEN IN TH E COURSE OF SURVEY AT ` 11,04,840/- GIVING RISE TO A DIFFERENTIAL AMOUNT O F ` 4 LAKHS. THE ASSESSEE PLEADED THAT THIS AMOUNT OF ` 4 LAKHS STOOD SPLIT OVER AND ALREADY DECLARED AS INCOME TO THE EXTENT OF ` 1.50 LAKHS IN ASSESSMENT YEAR 2008-09 AND ` 2.50 LAKHS IN 2009-10; RESPECTIVELY. THE ASSESSIN G OFFICER HEAVILY RELIED ON THE SURVEY STATEMENT AFORESAID AND REJECTED THE ASSESSEES EXPLANATION. HE ALSO ADDED A FURTHE R SUM OF ` 1,50,500/- CASH DEPOSITED BY QUOTING SECTION 68 OF THE ACT. 5. THE ASSESSEE PREFERRED AN APPEAL. THE CIT(A) HAS A FFIRMED BOTH THE THESE ADDITIONS. THIS LEAVES THE ASSESSEE AGGRIEVED. 6. WE HAVE HEARD BOTH PARTIES AND GONE THROUGH THE CAS E FILE. THE ASSESSEE HAS PLEADED TWO SUBSTANTIVE GROUNDS. NO ARGUMENT IS ADVANCED QUA THE LATTER ISSUE. THIS LEAVES US WITH THE FORMER ISSUE OF VALUE OF STOCK NOT ADMITTED OF ` 4 LAKHS ONLY. THERE IS NO DISPUTE THAT THE ASSESSEE/HIS FATHER IN THE COURSE OF SURVEY ITSELF HAD MADE IT CLEAR THAT THIS STOCK DENOTED ACCUMULATED INCOME S INCE THE YEAR 2007. S.P.NO.528/14 I.T.A.NO.2974/14 :- 4 -: THE REVENUE DOES NOT ALTOGETHER REJECT THE CONTENTS THEREOF. THE ASSESSEE HAS ALREADY DECLARED THIS DIFFERENTIAL SUM OF ` 4 LAKHS BY SPLITTING UP AMOUNT IN THE PRECEDING TWO ASSESSMENT YEARS (SUPRA). HE HAS ALSO FAILED TO MAINTAIN REGULAR BOOKS AND OT HER MATERIAL IN SUPPORT OF THE CLAIM. FACED WITH THIS SITUATION, W E DEEM IT APPROPRIATE IN THE LARGER INTEREST OF JUSTICE THAT THIS ADDITIO N OF ` 4 LAKHS DESERVES TO BE MAINTAINED TO THE EXTENT OF ` 1 LAKH ONLY. WE ORDER ACCORDINGLY. THE ISSUE IS SET AT REST. THE BALANCE ADDITION OF ` 3 LAKHS IS DELETED. 7. THE ASSESSEES APPEAL IS PARTLY ALLOWED. THE STAY PETITION IS RENDERED INFRUCTUOUS. ORDER PRONOUNCED ON FRIDAY, THE 6 TH OF FEBRUARY, 2015, AT CHENNAI. SD/- SD/- ( . . ) (B.R. BASKARAN) / ACCOUNTANT MEMBER ( . . ) (S. S. GODARA) 3 45 / JUDICIAL MEMBER 63- / CHENNAI 74 / DATED: 6 TH FEBRUARY, 2015 RD 48'*.9:;:$. / COPY TO: 1 . %& / APPELLANT 4. , <. / CIT 2. *+%& / RESPONDENT 5. :#= >*.? / DR 3. , <.@A / CIT(A) 6. > B!C - / GF