ASIF ABDUL SATTAR KHOKAR, MUMBAI V. CIT 24, MUMBAI

ITA 3154/MUM/2017

• Counselvise Citation: [2017] 126 COUNSELVISE.COM (IT) 8963 (ITAT-MUMBAI)
• Duration Of Justice: 5 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-10-2017
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2012-2013
• Appeal Filed On: 02-05-2017
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: R P MEENA
• Section: 143(3); 263

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH A, MUMBAI BEFORE SHRI G.S. PANNU, ACCOUNTANT MEMBER AND SHRI RAM LAL NEGI , JUDICIAL MEMBER ITA NO. 3154 /MUM/201 7 : A.Y : 2012 - 13 SHRI ASIF ABDUL SATTAR KHOKAR SHOP NO.9, NIRMAL APARTMENTS CORNER OF JT. ROAD & CEASER ROAD, ANDHERI (W) MUMBAI 400058 PAN NO: AMAPK8080A (APPELLANT) VS. CIT 24 MUMBAI - 400 012 (RESPONDENT) APPELLANT BY : NONE RESPONDENT BY : SHRI R.P.MEENA DATE OF HEARING : 30 / 1 0/2017 DATE OF PRONOUNCEMENT : 30 / 10 /2017 O R D E R PER G.S. PANNU , AM : THE PRESENT APPEAL HAS BEEN PREFERRED BY THE AS SESSEE AGAINST THE ORDER DATED 14 .03.201 7 OF THE COMMISSIONER OF INCOME TAX [HEREINAFTER REFERRED TO AS THE CIT], WHEREBY THE ASSESSMENT ORDER PASSED BY THE ASSESSING OFFICER (HER EINAFTER REFERRED TO AS THE AO) U/S. 143(3) OF THE ACT 2 ITA NO.3154/MUM/2017 SHRI ASIF ABDUL SATTAR KHOKAR DATED 07/03/2015 FOR THE A.Y.2012 - 13 HAS BEEN HELD TO BE ERRONEOUS IN SO FAR AS IT IS PREJUDICIAL TO THE INTEREST OF REVENUE U/S.263 OF THE I T ACT. 2. IT WAS NOTED THAT NONE APPEARED AND NOR ANY APPL ICATION FOR ADJOURNMENT WAS MOVED ON BEHALF OF THE ASSESSEE , A LTHOUGH ON THE EARLIER DATE OF HEARING, TODAYS DATE OF HEARING WAS DULY NOTED BY THE REPRESENTATIVE OF THE ASSESSEE. 3. IN TERMS OF RULE 25 OF THE APPELLATE TRIBUNAL RULES, 1963, THE APPEAL OF THE ASSESSEE IS BEING DISPOSED OFF EXPARTE QUA THE APPELLANT AND AFTER HEARING LEARNED DR ON MERITS. 4. IN TERMS OF MATERIAL ON RECORD, IT IS NOTICEABLE THAT THE ASSESSEE IS ENGAGED IN PROPRIETARY BUSINESS OF SALES AND SERVICE IN AIR CONDITIONERS UNDER THE NAME AND STYLE OF M/S.GLOBAL AIRCON. FOR THE ASSESSMENT YEAR UNDER CONSIDERATION, ASSESSEE FILED RET URN OF INCOME DECLARING TOTAL INCOME OF RS.6,12,810/ - WHICH WAS SUBJECT TO SCRUTINY ASSESSMENT U/S.143(3) OF THE ACT DATED 07/03/2015 WHEREBY THE TOTAL INCOME HAS BEEN ASSESSED AT RS.27,73,010/ - . SUBSEQUENTLY, THE COMMISSIONER HAS INVOKED HIS REVISIONARY J URISDICTION U/S. 263 OF THE ACT AND SHOW - CAUSE D THE ASSESSEE TO EXPLAIN AS TO WHY THE ASSESSMENT ORDER DATED 07/03/2015 (SUPRA) BE NOT TREATED AS ERRONEOUS AND PREJUDICIAL TO THE INTEREST OF REVENUE IN AS MUCH AS IT HAS BEEN PASSED WITHOUT LOOKING AT THE G ENUINENESS OF THE LOAN TRANSACTIONS 3 ITA NO.3154/MUM/2017 SHRI ASIF ABDUL SATTAR KHOKAR UNDERTAKEN BY THE ASSESSEE AND ALSO THE FACT THAT THE LOAN FUNDS HAVE NOT BEEN USED FOR THE PURPOSE OF BUSINESS. 5. IN RESPONSE, THE ASSESSEE FURNISHED THE EXPLANATION WHICH HAS BEEN REPRODUCED BY THE COMMISSIONER IN PA RA 2 OF HIS ORDER. NOT BEEN SATISFIED WITH HIS EXPLANATION, THE COMMISSIONER SET ASIDE THE ASSESSMENT ORDER AND DIRECTED THE ASSESSING OFFICER TO RE - ASSESS THE INCOME O F THE ASSESSEE AFTER AFFORDING REASONABLE OPPORTUNITY OF HEARING TO THE ASSESSEE AND FOL LOWING DUE PROCEDURE OF LAW . AGAINST SUCH DECISION OF THE COMMISSIONER, ASSESSEE IS IN APPEAL BEFORE US. 6. NOTAB LY, BEFORE US ASSESSEE HAS NOT PUT - IN ANY EXPLANATION AS TO HOW THE COMMISSIONER WAS WRONG IN EXERCISING HIS REVISIONARY JURISDICTION U /S.263 OF THE ACT. EVEN IN THE G ROUNDS OF APPEAL FILED ALONGWITH MEMO OF APPEAL BEFORE US, NO SPECIFIC INFIRMITY HAS BEEN POINTED OUT EXCEPT MAKING GENERALISED EXPLANATIONS. THE LEARNED CIT DR HAS ALSO EMPHASISED THAT NEITHER THE GENUINENESS OF THE LOAN TRANSACTI ON AND NOR ITS UTILISATION HAS BEEN EXAMINED AS TO WHETHER IT IS FOR THE PURPOSE OF BUSINESS. 7. CONSIDERING THE TOTALITY OF FACTS AND CIRCUMSTANCES OF THE CASE AND IN THE ABSENCE OF ANY COGENT MATERIAL TO THE CONTRARY, WE HEREBY AFFIRM THE DECISION OF THE COMMISSIONER AND THUS, ASSESSEE FAILS IN ITS APPEAL. 4 ITA NO.3154/MUM/2017 SHRI ASIF ABDUL SATTAR KHOKAR 8. IN THE RESULT, APPEAL OF THE ASSESSEE IS DISMISSED. THE ABOVE DECISION WAS PRONOUNCED IN THE OPEN COURT AT THE CONCLUSION OF HEARING TODAY IN THE PRESENCE OF LEARNED DR. ORDER PRONOUNCED IN THE OPEN COURT ON 30 TH OCTOBER, 2017 SD/ - SD/ - ( RAM LAL NEGI ) JUDICIAL MEMBER (G.S. PANNU) ACCOUNTANT MEMBER MUMBAI, DATE : 30 TH OCTOBER , 201 7 KARUNA COPY TO : 1) THE APPELLANT 2) THE RESPONDENT 3) THE CIT(A) CONCERNED 4) THE CIT CONCERNED 5) THE D.R, A BENCH, MUMBAI 6) GUARD FILE BY ORDER DY./ASSTT. REGISTRAR I.T.A.T, MUMBAI