SHRI PRAKASH CHAND GHOTA L/H OF LATE SMT SAJJAN BAI GHOTA, Neemuch V. THE ITO, Neemuch

ITA 325/IND/2015

• Counselvise Citation: 32522714 RSA 2015
• Duration Of Justice: 7 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-12-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2006-2007
• Appeal Filed On: 15-05-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R A VERMA
• Assessee Lawyers: S S MUNDRA; ARPIT MUNDRA
• Keywords: Accommodation entries
• Section: 147; 148

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, INDORE BENCH, INDORE (SINGLE MEMBER CASE) BEFORE SHRI D.T. GARASIA, JUDICIAL MEMBER I.T.A.NO.325/IND/2015 A.Y. : 2006-07. SHRI PRAKASH CHANDRA GHOTA, ITO, NEEMUCH L/H OF SMT. SAJJAN BAI GHOTA, VS. NEEMUCH APPELLANT RESPONDENT PAN NO.AIMPG1850A A PPELLANT S BY : SHRI S.S.MUNDRA AND SHRI ARPIT MUNDRA RESPONDENT BY : SHRI R. A. VERMA, DR DATE OF HEARING : 18.11 .2015 . DATE OF PRONOUNCEMENT : 21 . 1 2 .2015 SHRI PRAKASH CHANDRA GHOTA, L/H OF LATE SMT. SAJJAN BAI GHOTA, NEEMUCH. I.T.A.NO. 325/IND/2015 A.Y. 2006-07 2 2 O R D E R THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF CIT(A), UJJAIN, DATED 19.03.2015 FOR THE ASSESSM ENT YEAR 2006-07. 2. FOLLOWING GROUNDS HAVE BEEN TAKEN BY THE ASSESSEE : - 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE LD. CIT(A) IS NOT AT ALL JUSTIFIED IN :- A) DISMISSING THE GROUND TO THE EFFECT THAT THE INITIATION OF PROCEEDINGS U/S 148 OF INCOME-TAX ACT, 1961, IS ILLEGAL, ARBITRARY, BASELESS AND UNJUST BY HOLDING THAT AO HAS FOLLOWED PROPER PROCEDURE BEFORE ISSUING THE NOTICE, WITHOUT PROPERLY CONSIDERING, APPRECIATING AND ADJUDICATING THE SUBMISSIONS MADE BEFORE HIM IN THIS BEHALF. B) CONFIRMING THE ADDITION MADE BY AO WITHOUT PROPERLY CONSIDERING, APPRECIATING AND SHRI PRAKASH CHANDRA GHOTA, L/H OF LATE SMT. SAJJAN BAI GHOTA, NEEMUCH. I.T.A.NO. 325/IND/2015 A.Y. 2006-07 3 3 ADJUDICATING THE SUBMISSIONS MADE BEFORE HIM. 3. THE LD. AUTHORIZED REPRESENTATIVE SUBMITTED THAT TH IS CASE IS COVERED BY THE DECISION OF I.T.A.T. INDORE BENCH PASSED IN I.T.A.NO. 641/IND/2014 FOR THE ASSESSMENT YEAR 2 006-07 DATED 21 ST OCTOBER, 2015 IN THE CASE OF MISS SHWETA KUMARI, NEEMUCH, IN WHICH THE I.T.A.T., INDORE BENCH, OBSER VED AND HELD AS UNDER :- 2. THE RETURN OF INCOME WAS FILED BY THE ASSESSEE ON 28.7.2006 DECLARING INCOME AT RS.1,06,730/-. THE ASSESSMENT WAS REOPENED BY ISSUING NOTICE U/S 148 OF THE ACT ON 26.3.2009. THE ASSESSEE WAS SUPPLIED COPY OF REASONS RECORDED U/S 147 PRIOR TO ISSUING NOTICE U/S 148 OF THE ACT. THE OBJECTIONS RAISED BY THE ASSESSEE WERE CONSIDERED BY THE ASSESSING OFFICER AND DISMISSED. ONE OF SHRI PRAKASH CHANDRA GHOTA, L/H OF LATE SMT. SAJJAN BAI GHOTA, NEEMUCH. I.T.A.NO. 325/IND/2015 A.Y. 2006-07 4 4 THE GROUNDS OF THE ASSESSEES APPEAL IS AGAINST SUSTAINING THE INITIATION OF PROCEEDINGS U/S 148 OF THE ACT. 3. I HAVE HEARD BOTH THE SIDES ON THIS ISSUE AND AFTER HEARING I HOLD THAT THERE WAS SUFFICIENT MATERIAL WITH THE ASSESSING OFFICER IN THE FORM OF INFORMATION FROM THE INVESTIGATION WING ON WHICH THE ASSESSING OFFICER CAN FORM REASONABLE BELIEF THAT THE INCOME HAS ESCAPED ASSESSMENT. THEREFORE, THIS GROUD OF THE ASSESSEE HAS NO MERIT. THE SAME IS DISMISSED. 4. ANOTHER ISSUE IN THE APPEAL IS SUSTAINING THE ADDITION WITHOUT SHRI PRAKASH CHANDRA GHOTA, L/H OF LATE SMT. SAJJAN BAI GHOTA, NEEMUCH. I.T.A.NO. 325/IND/2015 A.Y. 2006-07 5 5 CONSIDERING THE SUBMISSIONS OF THE ASSESSEE BY THE LEARNED CIT(A). 5. I HAVE HEARD BOTH THE SIDES. ONE OF THE REASONS FOR SUSTAINING THE ADDITION IS THAT THE DIRECTOR OF INVESTIGATION CONDUCTED SURVEY IN THE CASE OF M/S MAHASAGAR SECURITIES PVT. LTD. OF WHICH SHRI MUKESH M. CHOKSI WAS A DIRECTOR AND HE HAS ACCEPTED THAT HE WAS PROVIDING ACCOMMODATION ENTRIES OF LONG TERM CAPITAL GAINS. SINCE THE LEARNED CIT(A) HAS CONFIRMED THE ADDITION ON THE BASIS OF STATEMENTS RECORDED BY SHRI MUKESH CHOKSI, THEREFORE, IN MY OPINION, THE ASSESSEE SHOULD HAVE BEEN PROVIDED AN OPPORTUNITY TO CROSS-EXAMINE SHRI SHRI PRAKASH CHANDRA GHOTA, L/H OF LATE SMT. SAJJAN BAI GHOTA, NEEMUCH. I.T.A.NO. 325/IND/2015 A.Y. 2006-07 6 6 MUKESH CHOKSI WITH REGARD TO THE STATEMENT MADE BY HIM IN THE ABSENCE OF THE ASSESSEE. THEREFORE, THIS ISSUE IS RESTORED TO THE FILE OF THE ASSESSING OFFICER TO BE DECIDED AFTER PROVIDING REASONABLE OPPORTUNITY TO CROSS-EXAMINE MUKESH CHOKSI WITH REGARD TO THE STATEMENT GIVEN. THE ASSESSEE SHOULD BE PROVIDED WITH A COPY OF STATEMENT WHICH IS BEING USED AGAINST THE ASSESSEE FOR MAKING THE ADDITION. 4. I HAVE HEARD THE RIVAL CONTENTIONS OF BOTH THE PART IES. I FIND THAT SINCE THE GROUNDS AND FACTS OF THIS CASE ARE IDENTICAL TO THE CASE OF MISS SHWETA KUMARI, NEEMUCH (SUPRA), I, RESPECTFULLY FOLLOWING THE SAME ALLOW THE APPEAL FO R STATISTICAL PURPOSES. SHRI PRAKASH CHANDRA GHOTA, L/H OF LATE SMT. SAJJAN BAI GHOTA, NEEMUCH. I.T.A.NO. 325/IND/2015 A.Y. 2006-07 7 7 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOWE D FOR STATISTICAL PURPOSES. THIS ORDER HAS BEEN PRONOUNCED IN THE OP EN COURT ON 21 ST DECEMBER, 2015. SD/- ( D.T.GARASIA) JUDICIAL MEMBER DATED : 21 ST DECEMBER, 2015. CPU* 1815