SHRI SUDHIR MAHESHWARI, Indore V. THE ACIT 2(1), Indore

ITA 339/IND/2015

• Counselvise Citation: 33922714 RSA 2015
• Duration Of Justice: 7 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-12-2015
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2004-2005
• Appeal Filed On: 20-05-2015
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: G S GAUTAM
• Keywords: Gift
• Section: 68

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.339/IND/2015 A.Y. : 2004-05 SHRI SUDHIR MAHESHWARI, ACIT, INDORE. VS. 2(1), INDORE. APPELLANT RESPONDENT PAN NO. AHXPM3325Q A PPELLANT S BY : SHRI ANIL KAMAL GARG, CA RESPONDENT BY : SHRI G.S.GAUTAM, DR O R D E R THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF CIT(A)-I, INDORE, DATED 20.11.2014 FOR THE ASSES SMENT YEAR 2004-05. 2. THE FOLLOWING GROUNDS HAVE BEEN TAKEN BY THE ASSESS EE :- DATE OF HEARING : 29.12.2015 DATE OF PRONOUNCEMENT : 29.12.2015 SHRI SUDHIR MAHESHWARI, INDORE VS. ACIT, 2(1), INDO RE, I.T.A.NO. 339/IND/2015 A.Y. 2004-05 2 2 1. THAT THE LD. CIT(A) GROSSLY ERRED IN LAW IN CONFIRMING THE ADDITION U/S 68 OF THE INCOME-TAX ACT, 1961, AT RS. 9,00,000/- MADE BY THE ASSESSING OFFICER WITHOUT CONSIDERING THE MATERIAL FACT THAT THE APPELLANT WAS NOT MAINTAINING ANY BOOKS OF ACCOUNT AND THEREFORE THE PROVISIONS OF SECTION 68 WERE NOT APPLICABLE TO HIM. 2. THAT, ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE LD. CIT(A) GROSSLY ERRED IN CONFIRMING TH E ADDITION OF RS. 9,00,000/- MADE BY THE ASSESSING OFFICER ON ACCOUNT OF ALLEGED GIFT DESPITE APPELLAN TS CLAIM THAT HE HAD ACTUALLY NOT RECEIVED ANY GIFT FR OM ANY PERSON. 3. THE BRIEF FACTS OF THE CASE ARE THAT THE SEARCH HAD TAKEN PLACE AT THE RESIDENCE OF THE ASSESSEE ON 18. 08.2004 AND 19.08.2004. DURING THE COURSE OF SEARCH SOME PA PERS WERE FOUND AND SEIZED FROM ASSESSEES RESIDENCE. AS PER THESE PAPERS THE ASSESSEE HAS OBTAINED GIFTS FROM SOME OF THE SHRI SUDHIR MAHESHWARI, INDORE VS. ACIT, 2(1), INDO RE, I.T.A.NO. 339/IND/2015 A.Y. 2004-05 3 3 PERSONS, WHICH AMOUNTED TO RS. 9 LAKHS. THE AO MADE THE ADDITION OF RS. 9 LAKHS U/S 68 OF THE ACT. 4. THE MATTER CARRIED TO THE LD. CIT(A) AND THE LD. C IT(A) HAS CONFIRMED THE ADDITION OF RS. 9 LAKHS MADE BY T HE ASSESSING OFFICER U/S 68 OF THE INCOME-TAX ACT, 196 1. 5. I HAVE HEARD THE RIVAL CONTENTIONS OF BOTH THE PART IES. I FIND FROM THE COPY OF ORDER OF THE I.T.A.T. PASSED IN I.T.A.NO. 373/IND/2011 DATED 6 TH AUGUST, 2012, IN THE CASE OF SUDHIR MAHESHWARI AND OTHERS, WHICH IS ON RECORD. I HAVE G ONE THROUGH THE ORDER OF THE I.T.A.T. INDORE BENCH. I F IND THAT THE I.T.A.T. INDORE BENCH, INDORE HAS DECIDED THE SIMIL AR ISSUE AGAINST THE ASSESSEE VIDE ORDER DATED 6 TH AUGUST, 2012, PASSED IN I.T.A.NOS.373/IND/2011 ETC., IN WHICH THE TRIBU NAL HAS HELD AS UNDER :- 27. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS AND HAVE GONE THROUGH THE ORDERS OF THE AUTHORITIES BEL OW AND FOUND FROM RECORD THAT DURING THE COURSE OF SEA RCH AT THE RESIDENTIAL PREMISES OF THE ASSESSEE AT 2/1, NORTH RAJ MOHALLA, INDORE, AS WELL AS IN THE BUSINE SS PREMISES OF THE GROUP COMPANIES, NAMELY, RAJAT GEMS SHRI SUDHIR MAHESHWARI, INDORE VS. ACIT, 2(1), INDO RE, I.T.A.NO. 339/IND/2015 A.Y. 2004-05 4 4 AND JEWELLERIES PRIVATE LIMITED, CERTAIN DOCUMENTS IN THE FORM OF GIFT DEEDS WERE FOUND AND SEIZED BY THE SEARCH PARTY. IN THE GIFT DEEDS VARIOUS ASSESSEES I N THE RAJAT GROUPS SHOWN TO HAVE RECEIVED VARIOUS GIFTS AGGREGATING TO RS. 14 LAKHS FROM VARIOUS STRANGERS, THROUGH ACCOUNT PAYEE CHEQUES. DURING POST SEARCH INVESTIGATION, STATEMENTS OF ALLEGED DONOR WERE RECORDED BY THE INVESTIGATION WING, WHEREIN THEY DENIED TO HAVE GIVEN ANY GIFT. IT WAS ALSO STATED B Y THE ALLEGED DONORS THAT THE AMOUNT OF GIFT WAS DEPOSITE D IN CASH BY THE DONEE FAMILY MEMBERS IN THEIR ACCOUNTS AND THEIR SIGNATURES WERE OBTAINED ON THE BLANK CHEQUES AND GIFT DEEDS. DURING THE COURSE OF POST SEARCH INVESTIGATION, STATEMENT OF SHRI KALYAN MAHESHWARI, A KEY PERSON GROUP LOOKING AFTER ENTIRE BUSINESS AFFAIRS OF THE GROUP COMPANIES, WAS ALSO RECORDED AND SHRI KALYAN MAHESHWARI IN HIS STATEME NT ADMITTED THAT GIFTS WERE MANAGED THROUGH HIS EMPLOYEES SHRI SURESH GUPTA. EVEN DURING THE COURSE OF ASSESSMENT PROCEEDINGS, THE ASSESSEE FAILED TO SHRI SUDHIR MAHESHWARI, INDORE VS. ACIT, 2(1), INDO RE, I.T.A.NO. 339/IND/2015 A.Y. 2004-05 5 5 ESTABLISH GENUINENESS OF GIFT TRANSACTION, THEREFOR E, ADDITIONS WERE CORRECTLY MADE BY THE ASSESSING OFFI CER U/S 68. THE DETAILED FINDING RECORDED BY THE ASSESS ING OFFICER WHICH WAS FURTHER FORTIFIED BY THE LD.CIT(A ) COULD NOT BE CONTROVERTED BY THE LD. AUTHORIZED REPRESENT ATIVE BY BRINGING ANY POSITIVE MATERIAL ON RECORD. 28. IN VIEW OF THE ABOVE, WE CONFIRM THE ACTION OF THE CIT(A) FOR UPHOLDING THE ADDITION MADE BY THE ASSESSING OFFICER IN RESPECT OF DIFFERENT ASSESSEES ON ACCOUNT OF BOGUS GIFTS RECEIVED BY THEM. 28. RESPECTFULLY FOLLOWING THE DECISION OF I.T.A.T. I NDORE BENCH, INDORE (SUPRA), I DISMISS THE APPEAL OF THE ASSESSEE. THIS ORDER HAS BEEN PRONOUNCED IN THE OP EN COURT ON 29 TH DECEMBER, 2015, SD/- ( D.T.GARASIA) JUDICIAL MEMBER DATED : 29 TH DECEMBER, 2015. CPU*