Shantilal Bafna Santosh , Gadag V. Income Tax Officer Ward-2 , Gadag

ITA 3206/BANG/2018

• Counselvise Citation: [2019] 118 COUNSELVISE.COM (IT) 3423 (ITAT-BANGALORE)
• Duration Of Justice: 2 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-02-2019
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: A
• Assessment Year: 2013-2014
• Appeal Filed On: 29-11-2018
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Assessee Lawyers: R CHANDRASHEKAR
• Section: 133A; 131

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL SMC, A BENCH : BANGALORE BEFORE SHRI N.V. VASUDEVAN, VICE PRESIDENT ITA NO.3206/BANG/2018 ASSESSMENT YEAR : 2013-14 SHANTILAL BAFNA SANTOSH, SANTOSH MARKETING, BAFNA COMPLEX, NEAR ALUR GURAPPA GIN, NEAR OLD BUS STAND, GADAG. PAN BHDPS 4601Q. VS. THE INCOME TAX OFFICER, WARD -II, GADAG. APPELLANT RESPONDENT APPELLANT BY : SHRI R CHANDRASHEKAR, ADVOCATE RESPONDENT BY : SHRI T SHERING ONGDA, JCIT (DR)(ITAT), BENGALURU. DATE OF HEARING : 07.02.2019 DATE OF PRONOUNCEMENT : 20.02.2019 O R D E R PER N.V VASUDEVAN, VICE PRESIDENT THIS IS AN APPEAL BY THE ASSESSEE AGAINST THE OR DER DATED 26/9/2018 OF CIT(A), HUBLI RELATING TO ASST. YEAR 2 013-14. 2. THE ASSESSEE IS AN INDIVIDUAL CARRYING ON THE BU SINESS AS WHOLE SALE DEALER IN PIPES AND ACCESSORIES UNDER THE NAME AND STYLE SANTOSH MARKETING. THERE WAS A SURVEY IN THE CASE OF THE ASSESSEE CONDUCTED ON 5.8.2013 IN THE BUSINESS PREMISES U/S 133A OF THE I NCOME-TAX ACT 1961 ITA NO.3206/BANG/2018 PAGE 2 OF 4 (THE ACT). IN THE COURSE OF SURVEY CERTAIN LOOSE S HEETS WERE FOUND AND IMPOUNDED. THE LOOSE SHEETS SO IMPOUNDED CONTAINED LEDGER ACCOUNT OF CONSTRUCTION ACCOUNT OF THE BUILDING OWNED BY SHRI SHANTILAL BAFNA, THE ASSESSEES FATHER. THE INFERENCE OF THE AO ON THE BASIS OF THE LOOSE SHEET FOUND WAS THAT THE ASSESSEE MADE PAYMENTS FOR CONST RUCTION OF THE BUILDING OWNED BY HIS FATHER. AT THE TIME OF SURVE Y, A STATEMENT OF THE ASSESSEE WAS RECORDED ON 14/8/2013 U/S 131 OF THE A CT. IN THE SAID STATEMENT IN ANSWER TO QUESTION NO.7 ON THE LOOSE S HEETS, THE ASSESEE EXPLAINED THAT HE WAS UNABLE TO EXPLAIN THE CONTENT S AND WAS PREPARED TO OFFER AN ADDITIONAL INCOME OF RS.3,35,000/-. 3. THE ASSESSEE FILED RETURN OF INCOME FOR ASST. YE AR 2013-14 ON 17/10/2013. IN THE SAID RETURN OF INCOME, THE ASSE SSE DID NOT OFFER SUM OF RS.5,81,278/- WHICH WAS THE DIFFERENCE BETWEEN THE CLOSING BALANCE AS ON 31/3/2012 AND THE CLOSING BALANCE AS ON 10/9/2012 A S FOUND IN THE LOOSE SHEET FOUND AT THE TIME OF SURVEY. THOUGH AT THE T IME OF SURVEY, THE ASSESEE OFFERED TO DECLARE ADDITIONAL INCOME OF RS. 3,50,000/- ON THE BASIS OF LOOSE SHEET FOUND AT THE TIME OF SURVEY, THE AO WAS OF THE VIEW THAT THE DIFFERENCE BETWEEN THE OPENING BALANCE AND THE CLOS ING BALANCE OF RS.5,81,278/- SHOULD BE ADDED TO THE TOTAL INCOME O F THE ASSESSEE. THE ORDER OF THE AO MENTIONS FACTS THAT THE ASSESSEE AG REED IN THE COURSE OF ASST. PROCEEDINGS FOR MAKING ADDITION OF RS.5,81,27 8/- AND ACCORDINGLY THE SAID SUM WAS ADDED TO THE TOTAL INCOME OF THE ASSES SEE. 4. THE CIT(A) CONFIRMED THE ORDER OF THE AO. 5. AGGRIEVED BY THE ORDER OF THE CIT(A), ASSESSEE I S IN APPEAL BEFORE THE TRIBUNAL. ITA NO.3206/BANG/2018 PAGE 3 OF 4 6. I HAVE HEARD THE RIVAL SUBMISSIONS. MY ATTENTIO N WAS DRAWN TO THE PROFIT AND LOSS ACCOUNT FOR THE PERIOD FROM 1/4/201 3 TO 31/3/2014 WHICH SHOWS OTHER INCOME OF RS.65,03,180/- CREDITED THERE IN. THE BREAKUP OF THE OTHER INCOME IS AT PAGE 60 OF ASSESSES PAPER BOOK. ON PERUSAL OF THE SAME IT REVEALS THAT IT INCLUDES SUM OF RS.3,35,000 /- DECLARED AS INCOME BY THE ASSESSEE IN THE COURSE OF SURVEY. IT IS THUS E VIDENT THAT IN THE RETURN OF INCOME FILED FOR THE SUBSEQUENT ASST. YEAR 2014-15, THE ASSESSEE HAS OFFERED A SUM OF RS.3,35,000/- DECLARED AS INCOME. THE SAME AMOUNT OF RS.3,35,000 OFFERED AS INCOME IN THE COURSE OF SURV EY HAS ALSO BEEN TAXED IN ASST. YEAR 2014-15 AND IS A PART OF SUM OF RS.5, 18,278/- BROUGHT TO TAX BY THE AO IN ASST. YEAR 2013-14. THE PLEA OF THE L D DR WAS THAT THE SEIZED PAPERS PERTAIN TO FINANCIAL YEARS 2012-13 RELEVANT TO AY 2013-14. THEREFORE, THE RIGHT ASST. YEAR IN WHICH INCOME IN QUESTION HAS TO BE BROUGHT TO TAX. THE LD. COUNSEL FOR THE ASSESSEE O N THE OTHER HAND SUBMITTED THAT SINCE THE SURVEY TOOK PLACE ON 5/8/2 013, THE INCOME DECLARED AT THE TIME OF SURVEY WAS OFFERED TO TAX I N ASST. YEAR 2014-15 AND THEREFORE TO THE EXTENT OF RS.3,35,000/- THE ADDITI ON MADE IN ASST. YEAR 2014-15 SHOULD BE DELETED. 7. I AM OF THE VIEW THAT WITHOUT GOING INTO THE TEC HNICALITIES OF THE YEAR IN WHICH THE INCOME SHOULD BE BROUGHT TO TAX, IT WO ULD BE JUST AN APPROPRIATE TO EXCLUDE THE SUM OF RS.3,35,000/- ALR EADY OFFERED TO TAX BY THE ASSESSEE OUT OF THE ADDITION OF RS.5,18,278/- M ADE IN ASST. YEAR 2013- 14. THE LAW IS WELL SETTLED THAT THE SAME INCOME C ANNOT BE TAXED TWICE. THEREFORE, THE ADDITION TO THE EXTENT OF RS.3,35,00 0/- IS DIRECTED TO BE DELETED. THE APPEAL OF THE ASSESSEE IS TREATED AS P ARTLY ALLOWED. ITA NO.3206/BANG/2018 PAGE 4 OF 4 8. IN THE RESULT, THE APPEAL FILED BY THE ASSESSE IS PARTLY ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 20 TH FEBRUARY, 2019 . SD/- ( N.V. VASUDEVAN) VICE PRESIDENT BANGALORE, DATED, THE 20 TH FEBRUARY, 2019. / VMS / COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT 4. THE CIT(A) 5. THE DR, ITAT, BANGALORE. 6. GUARD FILE BY ORDER ASS ISTANT REGISTRAR, ITAT, BANGALORE