J.S. Ananth, V. ACIT, Bangalore

ITA 329/BANG/2013

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 7455 (ITAT-BANGALORE)
• Duration Of Justice: 4 year(s) 7 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-10-2017
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 10-08-2017
• Assessment Year: 2008-2009
• Appeal Filed On: 13-03-2013
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Assessee Lawyers: H N KHINCHA

Judgement Text

ITA.329/BANG/2013 PAGE - 1 IN THE INCOME TAX APPELLATE TRIBUNAL BENGALURU BENCH 'B', BENGALURU BEFORE SHRI. A. K. GARODIA, ACCOUNTANT MEMBER AND SHRI. LALIET KUMAR, JUDICIAL MEMBER I.T.A NO.329/BANG/2013) (ASSESSMENT YEAR : 2008-09) SHRI. J. S. ANANTH, NO.3, SUDARSHAN NILAYA, 5 TH CROSS, CUBBONPET, BENGALURU .. APPELLANT PAN : ACHPA5995P V. ASST. COMMISSIONER OF INCOME-TAX, CENTRAL CIRCLE -2(1), BENGALURU .. RESPONDENT ASSESSEE BY : SHRI. H. N. KHINCHA, CA REVENUE BY : MS. NEERA MALHOTRA, CIT - DR HEARD ON : 22.08.2017 PRONOUNCED ON : 13.10.2017 O R D E R PER LALIET KUMAR, JUDICIAL MEMBER : THIS APPEAL IS FILED BY THE ASSESSEE, AGAINST THE ORDER OF THE CIT (A), MYSURU, DT.13.12.2012, FOR THE ASSESSMENT YEA R 2008-09. THE ASSESSEE HAD FILED THE GROUNDS OF APPEAL IN WHICH H E HAS RAISED SEVERAL GROUNDS. THEREAFTER THE ASSESSEE HAS FILED THE ADD ITIONAL GROUNDS WHICH IS AS UNDER : ITA.329/BANG/2013 PAGE - 2 AFTER FILING THE ADDITIONAL GROUNDS, THE ASSESSEE H AS NOT PRESSED THE GROUNDS RAISED EARLIER AND THEREFORE, WE WOULD ONLY BE ADJUDICATING THE ADDITIONAL GROUNDS. 02. IT IS THE CASE OF THE ASSESSEE THAT THE AO HAS MADE AN ADDITION OF RS.10 LAKHS ON ACCOUNT OF MARRIAGE EXPENSES OF THE ASSESSEES SON, J. S. SANTOSH, ON THE GROUND THAT THE SAME IS NOT SHOW N IN THE RETURN OF INCOME FILED BY THE APPELLANT. A SEARCH WAS CARRIE D OUT U/S.132 OF THE ACT, IN THE PREMISES OF THE ASSESSEE ALONG WITH OTH ERS OF SUDARSHAN SILKS GROUP ON 11.10.2007, DURING THE COURSE OF WHI CH VARIOUS DOCUMENTS WERE FOUND AND SEIZED. NOTICE U/S.153A W AS ISSUED IN RESPONSE TO WHICH ASSESSEE FILED THE RETURN. IT WA S THE CASE OF THE ITA.329/BANG/2013 PAGE - 3 ASSESSEE THAT THE AMOUNT FOR WHICH ADDITION WAS MAD E BY THE AO WAS PART OF THE SURRENDER MADE BY SUDARSHAN SILKS OF WH ICH THE ASSESSEE WAS A PARTNER AND DULY ACCOUNTED FOR THE SAME IN TH E SURRENDER AMOUNT OF RS.3.04 CRORES. IT WAS FURTHER CONTENDED THAT O NCE THE AMOUNT HAS BEEN SURRENDERED BY THE FIRM OF THE ASSESSEE, IT CA NNOT BE ADDED AGAIN IN THE HANDS OF THE INDIVIDUAL ASSESSEE. AGGRIEVED BY THE ADDITION MADE BY THE AO, ASSESSEE FILED AN APPEAL BEFORE THE CIT (A), WHO CONFIRMED THE ORDER OF THE AO. FURTHER AGGRIEVED T HE ASSESSEE IS IN APPEAL BEFORE US. 03. BEFORE US, THE LD. AR MADE THE SUBMISSIONS AND PLEADED THAT THE ADDITION IS TO BE DELETED. 04. ON THE OTHER HAND THE LD. DR VEHEMENTLY ARGUED THAT THE AUTHORITIES HAVE GIVEN COGENT REASON FOR MAKING THE ADDITION AND THEREFORE THE APPEAL OF THE ASSESSEE IS DEVOID OF M ERIT AND IS REQUIRED TO BE DISMISSED. 05. WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE MATERIAL ON RECORD. THE ASSESSEE HAS SUBMITTED THAT THE AMOUNT OF RS.10 LAKHS WAS INCLUDED IN THE ADMITTED AMOUNT OF RS.3.04 CROR ES AS PER THE LETTER DT.06.12.2007. THERE IS NO DISPUTE ON THIS ASPECT BECAUSE AS PER THE ORDER OF THE CIT (A) RENDERED IN THE CASE OF SUDARS HAN SILKS, DT.26.09.2011 FOR AYS. 2004-05 TO 1008-09, IT WAS N OTED BY THE CIT (A), IN PARA 5.91 THAT THERE IS AN AMOUNT DECLARED OF RS.3,04,25,500/- INCLUDING THE AMOUNT OF RS.10 LAKHS ON ACCOUNT OF UNACCOUNTED AMOUNTS SPENT ON THE MARRIAGE OF SANTOSH. THE DISC USSION ON THIS ITA.329/BANG/2013 PAGE - 4 ISSUE BY THE CIT (A) AS IN PARA 5.9.3 OF THE ORDER (SUPRA) IS REPRODUCED BELOW FOR THE SAKE OF READY REFERENCE : 06. FROM THE ABOVE EXTRACT FROM THE ORDER OF THE CI T (A), IT IS CLEAR THAT THE AMOUNT OF RS.55,29,600/- WHICH IS INCLUSIV E OF THE AMOUNT OF RS.10 LAKHS IS TO BE CONSIDERED IN THE HANDS OF THE PARTNER, I.E., THE PRESENT ASSESSEE, AS PER THE PRESENT ASSESSMENT OR DER IN THE HANDS OF THE ASSESSEE BEFORE US. IT IS SEEN THAT NEITHER AN Y AMOUNT HAS BEEN DECLARED AS INCOME ON THIS ACCOUNT NOR ANY SEPARATE ADDITION WAS MADE BY THE AO ON THIS ACCOUNT, APART FROM MAKING A N ADDITION OF RS.10 LAKHS IN THE HANDS OF THE ASSESSEE. IN VIEW OF THE ABOVE, WE ARE OF THE CONSIDERED OPINION THAT NO INTERFERENCE IS C ALLED FOR IN THE ORDER OF THE CIT (A) ON THIS ISSUE. WE UPHOLD THE ORDER OF THE CIT(A). ITA.329/BANG/2013 PAGE - 5 07. IN THE RESULT, APPEAL OF THE ASSESSEE IS DISMIS SED. ORDER PRONOUNCED IN THE OPEN COURT ON 13 TH DAY OF OCTOBER, 2017. SD/- SD/- (A. K. GARODIA) (LALIET KUMAR) ACCOUNTANT MEMBER JUDICIAL M EMBER BENGALURU DATED : 13.10.2017 MCN* COPY TO: 1. THE ASSESSEE 2. THE ASSESSING OFFICER 3. THE COMMISSIONER OF INCOME-TAX 4. COMMISSIONER OF INCOME-TAX(A) 5. DR 6. GF, ITAT, BANGALORE BY ORDER SENIOR PRIVATE SECRETARY