D.Thangaraj, Erode V. ITO, Erode

ITA 33/CHNY/2017

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 4334 (ITAT-CHENNAI)
• Duration Of Justice: 4 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-06-2017
• Appeal Filed By: Assessee
• Bench Allotted: A
• Next Hearing Date: 24-05-2017
• Assessment Year: 2013-2014
• Appeal Filed On: 05-01-2017
• Court: TRIBUNAL
• Department Lawyers: MRS TIRUPURASUNDARI JCIT
• Assessee Lawyers: B RAMAKRISHNAN

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH, CHENNAI ... , , # BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI S. JAYARAMAN, ACCOUNTANT MEMBER ./ I.T.A. NO. 33/MDS/2017 / ASSESSMENT YEAR : 2013-14 D. THAN GARAJ, NO. 21, ERAPPAMPALAYAM, KANDIKATTUVALASU, AVALPOONDURAI, ERODE 638 115. [PAN: ADAPT 0252A] VS. INCOME TAX OFFICER, WARD 2(3), ERODE. ( / APPELLANT) ( / RESPONDENT) % & / APPELLANT BY : SHRI B. RAMAKRISHNAN, CA )*% & / RESPONDENT BY : MRS. TIRUPURASUNDARI, JCIT & /DATE OF HEARING : 24.05.2017 & /DATE OF PRONOUNCEMENT : 01.06.2017 /O R D E R PER S. JAYARAMAN, ACCOUNTANT MEMBER: THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS)-3, COIMBATORE DATED 10.11.2016. :-2-: I.T.A. N0. 33/MDS/2017 2. SHRI D. THANGARAJ, THE ASSESSEE, FILED RETURN OF INCOME FOR THE ASSESSMENT YEAR 2013-14 ON 19.02.2015 ADMITTING THE TOTAL INCOME OF RS. 4,82,080/- AND AN AGRICULTURAL INCOME OF RS. 3,23,2 50/-. DURING THE ASSESSMENT PROCEEDINGS, THE ASSESSEE CLAIMED THAT B OOK OF ACCOUNTS WERE NOT MAINTAINED BY HIM. IN ORDER TO VERIFY HUGE TRA NSACTIONS EFFECTED IN THE VARIOUS BANK ACCOUNTS OF THE ASSESSEE, HIS MINOR DA UGHTER IN THE NAME OF SHRI P. SURESH ETC., THE AO CONDUCTED SURVEY IN THE BUSI NESS PREMISES OF THE ASSESSEE ON 22.02.2016. THE ASSESSEE DEPOSED THAT THE ENTIRE TRANSACTIONS RECORDED IN THE BANK ACCOUNT WERE RELATING TO THE F INANCE BUSINESS. SHRI P. SURESH ALSO DEPOSED THAT THE ENTIRE TRANSACTIONS RE CORDED IN THE ICICI BANK WERE RELATING TO THE FINANCE BUSINESS TRANSACTIONS OF SHRI D. THANGARAJ ONLY. IN THE ABSENCE OF BOOKS OF ACCOUNT, THE AO EXAMINED THE AVAILABLE MATERIAL INCLUDING THE TALLY CD ACCOUNTS, PROVISIONAL BALANC E SHEET AS ON 31.03.2013 AND THE UN-EXPLAINED HUGE TRANSACTIONS IN THE BANK ACCOUNT FOR THE PERIOD OF 01.04.2012 TO 31.03.2013 AND ARRIVED THE PEAK CASH DEFICIT AT RS. 58,72,654/- . WHEN THE AO PROPOSED TO ADD RS. 59 LAKHS, THE AS SESSEE ADMITTED SUCH SUM AS AN ADDITIONAL INCOME AS UN-EXPLAINED CREDIT IN THE CAPITAL ACCOUNT AS ON 01.04.2012 ITSELF. THE AO COMPLETED THE ASSESSM ENT ADDING RS. 73,16,000/- TOWARDS PEAK CASH DEFICIT RS. 58,72,654 /- AND UN-DISCLOSED INTEREST OF RS. 14,16,000/-. THE ASSESSEE FILED AN APPEAL BEFORE THE CIT(A) AND THE CIT(A) CONFIRMED THE ADDITIONS. AGGRIEVED BY THAT ORDER, THE ASSESSEE FILED THIS APPEAL. :-3-: I.T.A. N0. 33/MDS/2017 3. THE AR SUBMITTED THAT SHRI D. THANGARAJ IS THE M ANAGING PARTNER OF THE FIRM M/S. SRI VAIGAI FINANCE, HIS WIFE SMT. ESWARAM URTHY BRINDHA AND OTHERS WERE PARTNERS IN THE FIRM. M/S. SRI VAIGAI FINANCE , SHRI D. THANGARAJ AND SMT. ESWARAMURTHY BRINDHA FILED SETTLEMENT APPLICATION B EFORE THE INCOME TAX SETTLEMENT COMMISSION, CHENNAI IN TNC/CB-II/2016-14 /64/IT, TNC/CB- II/2016-14/65/IT AND TNC/CB-II/2016-14/66/IT FOR TH E ASSESSMENT YEARS 2014-15 TO 2016-17, 2009-10 TO 2012-13 & 2014-15 TO 2016-17 AND 2010-11 & 2013-14 TO 2016-17, RESPECTIVELY. THE SETTLEMEN T COMMISSION HAS ALLOWED THE SETTLEMENT APPLICATION TO BE PROCEEDED WITH BY THE ORDER ENDT NO. TNCB- II/2016-17/64 TO 66/IT DATED 26.12.2016. THE AR SU BMITTED THAT SINCE SHRI THANGARAJS ASSESSMENTS FOR ASSESSMENT YEAR 2009-10 TO 2012-13 ARE BEFORE THE SETTLEMENT COMMISSION, CHENNAI, THE CONCLUSION DRAWN FOR UP TO ASSESSMENT YEAR 2012-13 WOULD HAVE RAMIFICATION IN THE ASSESSMENT FOR THE IMPUGNED ASSESSMENT YEAR 2013-14. IN OTHER WORDS, THE INCOME DETERMINED FOR THE EARLIER YEARS INCLUDING ASSESSMENT YEAR 201 2-13 BY THE SETTLEMENT COMMISSION WOULD GIVE AN OPPORTUNITY FOR THE ASSESS EE TO EXPLAIN INADEQUACY, IF ANY, FOUND IN THE IMPUGNED ASSESSMEN T YEAR 2013-14. 4. WE HEARD THE RIVAL SUBMISSIONS. WE FIND FORCE I N THE ARS SUBMISSION AND HENCE THE ASSESSMENT MADE FOR THE ASSESSMENT YE AR 2013-14 IS SET ASIDE. AFTER OBTAINING THE SETTLEMENT COMMISSIONS ORDER IN THE EARLIER YEARS :-4-: I.T.A. N0. 33/MDS/2017 AND AFTER GIVING DUE OPPORTUNITY TO ASSESSEE, THE A O SHALL COMPLETE THE ASSESSMENT AFRESH. 5. IN THE RESULT, THE ASSESSEES APPEAL IS TREATED AS ALLOWED FOR STATISTICAL PURPOSE. ORDER PRONOUNCED ON THURSDAY, THE 1 ST DAY OF JUNE, 2017 AT CHENNAI. SD/- ( . . . ) (N.R.S. GANESAN) ! ' /JUDICIAL MEMBER SD/- ( ) (S. JAYARAMAN) ' /ACCOUNTANT MEMBER /CHENNAI, 0 /DATED: 1 ST JUNE, 2017 JPV & )12 32 /COPY TO: 1. %/ APPELLANT 2. )*% /RESPONDENT 3. 4 ( )/CIT(A) 4. 4 /CIT 5. 2 ) /DR 6. 7 /GF