Shri Arunbhai Maneklal Jhaveri, HUF, Ahmedabad V. The Income Tax Officer, Ward-10(2), Ahmedabad

ITA 3172/AHD/2014

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 9452 (ITAT-AHMEDABAD)
• Duration Of Justice: 1 year(s) 2 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-02-2016
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: SMC
• Next Hearing Date: 19-02-2016
• Assessment Year: 2009-2010
• Appeal Filed On: 02-12-2014
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Income from undisclosed sources; Accommodation entries

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH, AHMEDABAD BEFORE SHRI B.P. JAIN, ACCOUNTANT MEMBER ./ ITA.NO.3172/AHD/2014 / ASSTT. YEAR: 2009-2010 ARUNBHAI MANEKLAL JHAVERI HUF 1 ST FLOOR, SARVODAYA COMPLEX SWASTIK CROSS ROAD NAVRANGPURA AHMEDABAD 380 009. PAN : AACHA 4401 M VS ITO, WARD-10(2) AHMEDABAD. ! / (APPELLANT) '# ! / (RESPONDENT) ASSESSEE BY : SHRI KARAN SHAH, AR REVENUE BY : PRAJNA PARAMITA, SR.DR / DATE OF HEARING : 19/02/2016 / DATE OF PRONOUNCEMENT: 19/02/2016 $%/ O R D E R THIS APPEAL OF THE ASSESSEE AROSE FROM THE ORDER OF THE LD.CIT(A)-XVI, AHMEDABAD DATED 17.9.2014 FOR THE ASSTT.YEAR 2009-1 0. 2. THE ASSESSEE HAS RAISED FOLLOWING GROUNDS OF APP EAL: 1 . THE LD. CIT (A) HAS GROSSLY ERRED IN LAW AND ON F ACTS IN DISMISSING THE APPEAL. HE OUGHT TO HAVE ALLOWED THE APPEAL FUL LY IN ACCORDANCE WITH THE GROUNDS OF APPEAL RAISED BY THE APPELLANT BEFORE HIM. I TREATING THE COMMODITY EXCHANGE SALES INCOME AS I NCOME FROM UNDISCLOSED SOURCES - RS. 2.03.630/- ITA NO.3172/AHD/2014 2 1. THE LD. CIT (A) HAS ERRED IN LAW AND ON FACTS IN CONFIRMING THE ACTION OF THE LD. A.O IN TREATING THE COMMODITY EXC HANGE SALE INCOME AS INCOME FROM UNDISCLOSED SOURCES AMOUNTING TO RS. 2,03,630/- 2. THELD.CIT(A) AS WELL AS THE AO FAILED TO PROPERL Y CONSIDER THE SUBMISSION MADE BY APPELLANT BEFORE THEM AND THE LD .AO HAS FAILED TO PROVIDE THE MATERIAL RELIED UPON BY HIM FOR MAKING THE ADDITION IN THE CASE OF APPELLANT. 3. BRIEF FACTS OF THE CASE ARE THAT DURING ASSESSME NT PROCEEDINGS THE A O NOTICED THAT THE ASSESSEE HAD DISCLOSED INCOME OF R S. 2,03,630/- AS INCOME FROM OTHER SOURCES THROUGH SALE OF COMMODITY MCX(OR ANGE COMMODITY SERVICES PVT LTD)(OCSPL). THE A O HAD RECEIVED INFO RMATION THAT OCSPL WAS PROVIDING/FAKE BILLS AND HAD ALREADY ADMITTED T O THE SAME DURING A SURVEY CONDUCTED AT ITS PREMISES. THE MODUS OPERAND WAS TH AT CASH WAS FIRST ACCEPTED FROM VARIOUS PARTIES AND DEPOSITED IN DUMM Y ACCOUNT OF PERSONS AND THEREAFTER THE SAID CASH WAS TRANSFERRED TO BANK AC COUNT OF OCSPL BY CHEQUE. THE CASH RECEIVED FROM VARIOUS PARTIES WAS NOT UTIL ISED FOR ANY TRANSACTION IN THE COMMODITY MARKET. ON THE OTHER HAND ACCOMMODATI ON ENTRIES WERE PROVIDED TO THE SAID PARTIES @ 2% TO 5% ON THE BILL ED AMOUNT. AS PER THE DETAILS AND LIST AVAILABLE WITH THE AO, THE ASSESSE E WAS ONE OF THE PARTIES WHO HAD AVAILED ACCOMMODATION ENTRIES. DURING ASSESSME NT PROCEEDINGS, THE ASSESSEE WAS ASKED TO FILE CONFIRMATION FROM OCSPL TO ESTABLISH THAT THE SAME WAS A GENUINE TRANSACTION. HOWEVER NO CONFIRMA TION WAS FILED BY THE ASSESSEE. FURTHER, THE COPIES OF BILLS AND ACCOUNT COPY SUBMITTED DURING ASSESSMENT PROCEEDINGS WERE MERE COMPUTER PRINTOUTS WITHOUT ANY SIGNATURES. THE AO FURTHER ASKED THE ASSESSEE TO FURNISH THE CO NTRACT NOTE IN RESPECT OF TRANSACTIONS CARRIED OUT. THIS WAS ALSO NOT PRODUCE D BY THE ASSESSEE. IN VIEW OF THESE FACTS, THE AO HELD THIS AMOUNT OF CAPITAL INTRODUCED AS UNDISCLOSED INCOME OF THE ASSESSEE. 4. THE LD.CIT(A) CONFIRMED THE ACTION OF THE AO. ITA NO.3172/AHD/2014 3 5. I HAVE HEARD RIVAL CONTENTIONS AND PERUSED THE F ACTS ON RECORD. THE ADDITION HAS BEEN BASED ON THE CONCRETE EVIDENCE RE CEIVED FROM THE OFFICE OF DDIT, AHMEDABAD WHICH MENTIONED THE NAME OF THE ASS ESSEE IN THE ENCLOSURE AND WHICH WAS PROVIDED TO THE ASSESSEE DU RING THE ASSESSMENT PROCEEDINGS. ACCORDINGLY, OPPORTUNITY TO SUBSTANTI ATE AND PROVE THE GENUINENESS THE TRANSACTION WAS GIVEN TO THE ASSESS EE, BUT NOT EVEN ONE EVIDENCE WAS PROVIDED BY THE ASSESSEE EXCEPT BANK S TATEMENT. EVERY SUBMISSIONS, AS STATED BY THE LD.CIT(A), GIVEN BY T HE ASSESSEE, IS REITERATION OF SYNOPSIS OF THE ASSESSEE AND WHAT HAS BEEN PROVI DED AT THE TIME OF ASSESSMENT PROCEEDINGS. THE DOCUMENTARY EVIDENCES IN RESPECT OF ORANGE COMMODITIES SERVICES PVT. LTD., AND THE TRANSACTION DONE WITH IT, HAVE NOT BEEN SUBMITTED BY THE ASSESSEE. NO EFFORT HAS BEEN MADE TO PROVE THE GENUINENESS OF THE TRANSACTIONS BY THE ASSESSEE. T HEREFORE, IN THE CIRCUMSTANCES AND THE FACTS OF THE CASE, WE DO NOT FIND ANY INFIRMITY IN THE ORDER OF THE LD.CIT(A), WHICH IS CONFIRMED AND THE GROUNDS OF APPEAL OF THE ASSESSEE ARE DISMISSED. 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS DIS MISSED. ORDER PRONOUNCED IN THE COURT ON 19 TH FEBRUARY, 2016 AT AHMEDABAD. SD/- ( B.P. JAIN ) ACCOUNTANT MEMBER AHMEDABAD; DATED 19/02/2016