M/s. New Matha Jewellers, Karaikudi V. ITO, Karaikudi

ITA 3097/CHNY/2016

• Counselvise Citation: [2017] 130 COUNSELVISE.COM (IT) 7794 (ITAT-CHENNAI)
• Duration Of Justice: 3 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-02-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 16-02-2017
• Assessment Year: 2012-2013
• Appeal Filed On: 07-11-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SHIVA SRINIVAS

Judgement Text

, , [ : ] IN THE INCOME TAX APPELLATE TRIBUNAL A SMC BENCH, CHENNAI [ CAMP: MADURAI ] ... ! , ' # $ BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER %./ ITA NO.3097/MDS/2016 ' ' (' / ASSESSMENT YEAR : 2012-13 M/S NEW MATHA JEWELLERS, NO.10-11, KALLUKATTI EAST, KARAIKUDI, SIVAGANGAI DISTRICT. PAN : AAIFN 5346 G V. THE INCOME TAX OFFICER, WARD 2, KARAIKUDI. (*+/ APPELLANT) (,-*+/ RESPONDENT) *+ . / / APPELLANT BY : NONE ,-*+ . / / RESPONDENT BY : SHRI SHIVA SRINIVAS, JCIT . 01 / DATE OF HEARING : 17.02.2017 23( . 01 / DATE OF PRONOUNCEMENT : 17.02.2017 / O R D E R THIS APPEAL OF THE ASSESSEE IS DIRECTED AGAINST T HE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS) -3, MADURA I, DATED 29.08.2016 AND PERTAINS TO ASSESSMENT YEAR 2012-13. 2. THE ONLY ISSUE ARISES FOR CONSIDERATION IS WITH REGARD TO ADDITION OF 2,50,000/- TOWARDS UNEXPLAINED EXPENDIT URE. 2 I.T.A. NO.3097/MDS/16 3. NO ONE APPEARED FOR THE ASSESSEE INSPITE OF SERV ICE OF NOTICE. HOWEVER, THE LD.COUNSEL FOR THE ASSESSEE F ILED WRITTEN SUBMISSION WHICH IS ON RECORD. 4. SHRI SHIVA SRINIVAS, THE LD. DEPARTMENTAL REPRES ENTATIVE, SUBMITTED THAT THE ASSESSEE INCURRED AN EXPENDITURE OF ` 12,73,372/- TOWARDS INTERIOR DECORATION OF THE JEWELLERY SHOW R OOM FROM 01.04.2011 TO 31.03.2012. THE ASSESSEE COULD NOT E XPLAIN THE SOURCE OF EXPENDITURE TO THE EXTENT OF ` 2,50,000/-. THEREFORE, THE CIT(APPEALS) CONFIRMED THE ADDITION MADE BY THE ASS ESSING OFFICER. 5. I HAVE CONSIDERED THE SUBMISSION OF THE LD. DEPA RTMENTAL REPRESENTATIVE AND PERUSED THE RELEVANT MATERIAL AV AILABLE ON RECORD INCLUDING THE WRITTEN SUBMISSION FILED BY TH E ASSESSEE. ADMITTEDLY, THE EXPENDITURE WAS INCURRED FROM 01.04 .2011 TO 31.03.2012. THE FACT REMAINS THAT THE PARTNERSHIP FIRM CAME INTO EXISTENCE ONLY ON 12.05.2011. THEREFORE, IT IS OBV IOUS THAT SOME OF THE EXPENDITURE WAS INCURRED BY THE PARTNERS OF THE FIRM BEFORE THE PARTNERSHIP FIRM CAME INTO EXISTENCE. THEREFORE, T HIS TRIBUNAL IS OF THE CONSIDERED OPINION THAT AT THE BEST, THE ADDITI ON CAN BE MADE ONLY IN THE HANDS OF THE INDIVIDUALS AND DEFINITELY NOT IN THE HANDS OF THE PARTNERSHIP FIRM. THEREFORE, THIS TRIBUNAL IS UNABLE TO UPHOLD THE 3 I.T.A. NO.3097/MDS/16 ORDER OF THE LOWER AUTHORITY. THEREFORE, THE ADDIT ION MADE BY THE LOWER AUTHORITIES TO THE EXTENT OF ` 2,50,000/- IS DELETED. 6. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 17 TH FEBRUARY, 2017 AT MADURAI. SD/- ( ... ! ) (N.R.S. GANESAN) ' # /JUDICIAL MEMBER /CHENNAI, 5% /DATED, THE 17 TH FEBRUARY, 2017. KRI. . ,'0 6(0 /COPY TO: 1. *+ /APPELLANT 2. ,-*+ /RESPONDENT 3. 70 () /CIT(A)-3, MADURAI 4. PRINCIPAL CIT-2, MADURAI 5. 8! ,'0' /DR 6. !9' : /GF.