JITUBHAI H PINGHAR, MUMBAI V. ITO 20(1)(3), MUMBAI

ITA 2978/MUM/2012

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 2881 (ITAT-MUMBAI)
• Duration Of Justice: 4 year(s) 1 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-06-2016
• Appeal Filed By: Assessee
• Bench Allotted: J
• Next Hearing Date: 31-05-2016
• Assessment Year: 2003-2004
• Appeal Filed On: 02-05-2012
• Court: TRIBUNAL
• Department Lawyers: ASGHAR ZAIN V P
• Keywords: Income from undisclosed sources
• Section: 133A; 132; 144

Judgement Text

, , J , IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES J, MUMBAI , , , BEFORE SHRI AMIT SHUKLA, JUDICIAL MEMBER, AND SHRI ASHWANI TANEJA, ACCOUNTANT MEMBER ITA NO.2978/MUM/2012 ASSESSMENT YEAR: 2003-04 JITUBHAI H. PINGHAR, C-502 ASTER, AGRAWAL & DOSHI COMPLEX, KAUL HERIGAGE, BHABOLA RD. VASAI ROAD(W) MUMBAI-401202 / VS. ITO WARD 20(1)(3) PIRAMAL CHAMBERS, LAL BAUG, MUMBAI- (ASSESSEE ) (REVENUE) P.A. NO. AIXPP1836D APPELLANT BY NONE RESPONDENT BY SHRI ASGHAR ZAIN V.P. (D R) / DATE OF HEARING: 31/05/2016 / DATE OF ORDER: 24/06/2016 / O R D E R PER ASHWANI TANEJA (ACCOUNTANT MEMBER): THIS APPEAL HAS BEEN FILED BY THE ASSESSEE AGAINST THE ORDER OF LD. COMMISSIONER OF INCOME TAX (APPEALS), MUMBAI- 31 {(IN SHORT CIT(A)}, DATED 01/02/2012 PASSED AG AINST JITUBHAI H. PINGHAR 2 ASSESSMENT ORDER U/S 144 OF THE ACT, FOR THE ASSESS MENT YEAR 2003-04 ON THE FOLLOWING GROUNDS: THE LEARNED CIT(A) 3 1, MUMBAI ERRED IN THE FACTS AND CIRCUMSTANCES OF CASE AND IN LAW IN APPRECIATING AN D ASCERTAINING THAT ALL THE UNRECORDED LABOUR CHARGES BE TREATED AS INCOME OF THE ASSESSEE , THEREFORE, IN T HESE CIRCUMSTANCES THE ENTIRE UNACCOUNTED LABOUR CHARGES HAVE BEEN WRONGLY BROUGHT TO TAX BY THE LEARNED COMMISSIONER OF INCOME TAX (APPEAL) 31, MUMBAI AND A.O. 1.THEREFORE INCOME OF THE ASSESSEE BE CALCULATED BY APPLYING N P RATIO ON UNACCOUNTED LABOUR CHARGES. 2.YOUR APPELLANT PRAYS THAT THE ORDER PASSED BY THE LEARNED COMMISSIONER OF INCOME TAX (APPEAL) 31, MUM BAI AND ASSESSING OFFICER MAY BE VACATED. 3.YOUR APPELLANT CRAVES LEAVE TO ADD, AMEND, ALTER OR DELETE, MODIFY, OMIT OR SUBSTITUTE THE AFORESAID GR OUNDS OF APPEAL OR ADD NEW GROUND(S) OF APPEAL, AT ANY TIME BEFORE OR AT THE TIME OF HEARINGS. 2 . DURING THE COURSE OF HEARING NONE APPEARED ON BEH ALF OF THE ASSESSEE. LD. DR RELIED UPON THE ORDERS OF THE LOWE R AUTHORITIES. IT IS NOTED THAT THE NOTICE HAS BEEN S ERVED IN THIS CASE BY RPAD. ON MANY EARLIER OCCASIONS ALSO THIS C ASE HAS BEEN ADJOURNED TIME TO TIME, SINCE 20 TH JUNE 2013. UNDER THESE CIRCUMSTANCES, WE HAVE NO OPTION BUT TO PROCE ED WITH THE DISPOSAL OF THIS APPEAL EX-PARTE QUA ASSESSEE. 3. THE SOLITARY ISSUE RAISED IN THIS APPEAL IS WITH R EGARD TO ADDITION MADE ON ACCOUNT OF THE UN-RECORDED LABOUR CHARGES PAID BY THE ASSESSEE. JITUBHAI H. PINGHAR 3 3.1. BRIEF FACTS AND THE BACKGROUND OF THIS CASE AS NOT ED BY THE LOWER AUTHORITIES ARE THAT AS PER THE BRIEF FAC TS OF THE CASE, THE ASSESSEE (AN INDIVIDUAL) WAS ENGAGED IN T HE BUSINESS OF A LABOR CONTRACTOR DURING THE RELEVANT ASSESSMENT YEAR. A SEARCH U/S 132 OF THE ACT WAS CA RRIED OUT IN THE GROUP CASES OF SHRI OMKARNATH N. KAPILA ON 06.07.2004. DURING THE COURSE OF THE SEARCH PROCEED INGS A FILE OF LOOSE PAPER WAS SEIZED. ON THE BASIS OF SAM E IT WAS NOTED BY THE CONCERNED OFFICIALS THAT SHRI OMKARNAT H KAPILA HAD INCURRED HEAVY EXPENDITURE IN CASH ON RENOVATIO N OF HIS RESIDENCE SITUATED AT FLAT NO,1A/1B, FIRST FLOO R, GIRNAR APARTMENT, 55 PALI HILL, BANDRA (W), MUMBAI. THE EX PENDITURE INCURRED THEREON WAS NOT RECORDED IN HIS REGULAR BO OKS OF ACCOUNT. IT WAS ALSO FOUND THAT THE ENTIRE CARPENTR Y WORK WAS CARRIED OUT BY SHRI JITUBHAI H.PINGHAR, THE ASSESSE E ON CONTRACT BASIS. ACCORDINGLY, A SURVEY U/S 133A OF T HE ACT WAS CARRIED OUT IN THE BUSINESS PREMISES OF THE ASSESSE E. DURING THE SURVEY PROCEEDINGS, A DETAILED STATEMENT OF THE ASSESSEE WAS RECORDED. THE INFORMATION AND EVIDENCES GATHERE D WERE ACCORDINGLY TRANSFERRED BY THE DDIT(INV.) TO THE AO HAVING JURISDICTION OVER THE CASE. 3.2. DURING THE COURSE OF ASSESSMENT PROCEEDINGS OF THE ASSESSEE, IT WAS SUBMITTED BY THE ASSESSEE THAT A D ISCLOSURE WAS MADE DURING THE COURSE OF SURVEY ON ACCOUNT OF RECEIPT OF UNACCOUNTED AMOUNT OF RS. 5,50,000/- FROM SHRI KAPI LA ON ACCOUNT OF LABOUR CHARGES FOR CARPENTRY WORK CARRIE D OUT IN HIS RESIDENCE. IT WAS NOTED BY THE AO THAT THE TOTAL AM OUNT OF BILLS JITUBHAI H. PINGHAR 4 UNDISCLOSED WAS FOR RS.16,28,697/-. FINALLY, AO MAD E ADDITION IN THE HANDS OF ASSESSEE ON ACCOUNT OF UND ISCLOSED INCOME ON ACCOUNT OF RS.5,50,000/-, BEING UNACCOUNT ED CASH RECEIPT DECLARED BY THE ASSESSEE + 1,07,870/- I.E. 10% OF RS.10,78,697/-(BEING RS.16,28,697- RS.5,50,000/-). THUS, AGGREGATE ADDITION OF RS.6,57,870/- WAS MADE AS AN UNACCOUNTED INCOME OF THE ASSESSEE. 3.3. BEING AGGRIEVED THE ASSESSEE FILED AN APPEAL BEFOR E THE LD. CIT(A) AND MADE DETAILED SUBMISSIONS. BUT, LD. CIT(A) DID NOT AGREE WITH THE SUBMISSIONS OF THE ASSESSEE. HE ALSO CONSIDERED REMAND REPORT OF THE AO ON THE SUBMISSIO NS OF THE ASSESSEE. 3.4. DURING THE COURSE OF HEARING BEFORE US IT HAS BEEN SUBMITTED BY THE LD. DR THAT LD. CIT(A) HAS EXAMINE D THE FACTS OF THIS CASE IN DETAIL AND ALSO CONSIDERED TH E REMAND REPORT OF THE AO AND ON THE BASIS OF THE SAME LD. C IT(A) HAS GIVEN DETAILED FACTUAL FINDINGS IN HIS ORDER. IT IS NOTED BY US THAT NOTHING HAS BEEN BROUGHT BEFORE US TO NEGATE O R CONTROVERT THE FACTUAL FINDINGS OF THE LD. CIT(A), WHEREIN IT HAS BEEN DISCUSSED AT GREAT LENGTH THAT THE ASSESSEE HA D NOT RECORDED ITS INCOME ON ACCOUNT OF LABOUR CHARGES IN HIS BOOKS OF ACCOUNTS. IT APPEARS THAT THERE IS NOTHING WITH THE ASSESSEE TO COUNTER THE FINDINGS OF LD. CIT(A) AS WELL AS EV IDENCES BROUGHT ON RECORD BY THE DEPARTMENT. THE AMOUNT OF UNDISCLOSED INCOME WAS CORRECTLY COMPUTED BY THE AO . IN VIEW JITUBHAI H. PINGHAR 5 OF THE SAME, WE FIND NO REASONS TO INTERFERE IN THE ORDER OF LD. CIT(A) AND THEREFORE SAME IS UPHELD. 4. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 24 TH JUNE, 2016. SD/- (AMIT SHUKLA ) SD/- (ASHWANI TANEJA) ! / JUDICIAL MEMBER ' ! / ACCOUNTANT MEMBER MUMBAI; # DATED : 24/06/2016 CTX? P.S/. .. #$%&'(')% / COPY OF THE ORDER FORWARDED TO : 1. % &' / THE APPELLANT 2. ()&' / THE RESPONDENT. 3. * * ( % ) / THE CIT, MUMBAI. 4. * * / CIT(A)- , MUMBAI 5. -. / (01 , * % 012 , / DR, ITAT, MUMBAI 6. / 34 5 / GUARD FILE. / BY ORDER, ) -% ( //TRUE COPY// / (DY./ASSTT. REGISTRAR) , / ITAT, MUMBAI