HIRALAL NANDLAL GOYAL (AOP), ULHASNAGAR V. DCIT CIR 22(3), NAVI MUMBAI

ITA 3445/MUM/2012

• Counselvise Citation: 344519914 RSA 2012
• Duration Of Justice: 2 year(s) 4 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-09-2014
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: H
• Next Hearing Date: 17-09-2014
• Assessment Year: 2007-2008
• Appeal Filed On: 15-05-2012
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: PITAMBAR DAS
• Keywords: Reopening of assessment
• Section: 143(3); 68; 6; 144

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL H , BENCH MUMBAI , BEFORE : SHRI R.C.SHARMA , A M & SHRI SANJAY GARG, J M ITA NO S . 3444 & 3445 / MUM/20 1 2 ( ASSESSMENT YEAR S : 200 6 - 07 & 2007 - 08 ) HIRALAL NANDLAL GOYAL (AOP), AMIT ASHIANA, GR. FLOOR, NEAR BRAHMAKUMARIS ASHRAM GOL MAIDAN, ULHASNAGAR - 421 002 VS. DCIT, CIR - 22(3), NAVI MUMBAI PAN/GIR NO. : A A AAH 2583 C ( APPELLANT ) .. ( RESPONDENT ) AND ITA NO. 3529/ MUM/20 12 ( ASSESSMENT YEAR :2006 - 07 ) DCIT, CIR - 22(3), NAVI MUMBAI VS. HIRALAL NANDLAL GOYAL (AOP), AMIT ASHIANA, GR. FL OOR, NEAR BRAHMAKUMARIS ASHRAM GOL MAIDAN, ULHASNAGAR - 421 002 PAN/GIR NO. : AA AAH 2583 C ( APPELLANT ) .. ( RESPONDENT ) /ASSESSEE BY : SHRI VIJAY MEHTA & SHRI ANUJ KISNADWAL A /REVENUE BY : SHRI PITAMBAR DAS DATE OF HEARING : 1 7 TH SEPT , 201 4 DATE OF PRONOUNCEMENT : 24 TH SEPT , 201 4 O R D E R PER R.C.SHARMA ( A .M.) : THE ASSESSEE HAS FILED APPEALS I.E. ITA NOS.3444 & 34445/MUM/2012 FOR THE A.Y.2006 - 07 & 2007 - 08, WHEREAS THE REVENUE HAS FILED CROSS APPEAL I.E. ITA NO. 3529/MUM/2012 , IN THE MATTER OF ORDER PASSED U/S. 144 OF TH E I.T. ACT . ITA NO S . 3444&3445 /1 2 & ITA NO. 3529/12 2 2 . IN THE APPEAL FILED BY THE ASSESSEE , THE ASSESSEE AGGRIEVED F OR THE ADDITION MADE U/S. 68 OF THE ACT ON ACCOUNT OF UNEXPLAINED CAPITAL IN THE HANDS OF HUF. 3. RIVAL CONTENTIONS HAVE BEEN HEARD AND RECORD PERUSED. BRIEF FACTS ARE THAT DURING THE YEAR UNDER CONSIDERATION ASSESSEE HIRALAL NANDLAL GOYAL FILED ITS RETURN OF INCOME IN THE STATUS OF AOP . THE ASSESSEE HAS SHOWN RECEIPT OF CERTAIN MONEY FROM VARIOUS PERSONS. THE AO FOUND THAT SOURCE OF MONEY FROM VARIOUS PERSONS WERE NOT PROVED, THEREFORE, HE MADE ADDITION OF RS. 93,50,000/ - IN THE HANDS OF AOP BY PASSING ORDE R U/S. 144 OF THE ACT, DATED 31 - 12 - 2008. IN AN APPEAL FILED BEFORE THE CIT(A) , THE CIT(A) HELD THAT THE AOP NEVER CAME INTO EXISTENCE AND THE ENTIRE TRANSACTION WAS CARRIED OUT BY HIRALAL NANDLAL GOYAL (INDIVIDUAL) . THE CIT(A) FOUND THAT RS. 6,50,000/ - WAS C ONTRADICTED BY HIRALAL NANDLAL GOYAL (INDIVIDUAL), THEREFORE, HE CONFIRMED THE BALANCE ADDITION OF RS. 87,00,000/ - (RS. 93,50,000 - 6,50,000/ - ) . AGAINST WHICH BOTH ASSESSEE AND REVENUE ARE IN APPEALS BEFORE THE TRIBUNAL. 4 . WE HAVE CONSIDERED RIVAL CONTENTIONS AND FOUND FROM THE RECORD THAT AFTER THE ORDER WAS PASSED BY THE CIT(A) DATED 21.3.2012 HOLDING THAT THE AOP NEVER CAME INTO EXISTENCE AND THE ENTIRE TRANSACTION WAS CARRIED OUT BY HIRALAL NANDLAL GOYAL(INDIVIDUAL), THE DEPARTMENT HAS REOPENED THE ASSESSM ENT OF H IRALAL NAND LAL GOYAL(INDIVIDUAL) ON 17 - 10 - 2012 AND PASSED AN ORDER U/S. 143(3) R.W.S. 147 OF THE ACT, DATED 28 - 3 - 2014 AND MADE AN ADDITION OF RS. 93,50,000/ - IN THE HANDS OF HIRALAL NANDLAL GOYAL(INDIVIDUAL) . THE PRECISE OBSERVATION OF THE AO IN HIS ORDER ITA NO S . 3444&3445 /1 2 & ITA NO. 3529/12 3 PASSED U/S.143(3) R.W.S.147 TREATING THE AMOUNT OF RS. 93,50,000/ - IN THE HANDS OF ASSESSEE HIRALAL NANDLAL GOYAL(INDIVIDUAL) IS AS UNDER : - FROM THE ABOVE DISCUSSION, IT CAN BE .ASCERTAINED THAT THE AOP WAS NOT EXISTENCE AT ALL AND THAT THE ENTIRE T RANSACTIONS STATED TO HAVE DONE IN THE NAME OF AOP WAS HANDLED BY SHRI HIRALAL N. GOYAL ONLY AND IT IS ESTABLISHED THAT THE INVESTMENT OF RS.87, 00 , 000 / - STATED TO HAVE BEEN MADE BY THE AOP IS NOTHING BUT INCOME OF SHRI HIRALAL N. GOYAL FROM UNEXPLAINED SOU RCES AND HENCE THE INCOME OF RS.93,50,000/ - WHICH INCLUDES AN AMOUNT OF RS.6,50,000/ - STATED TO HAVE BEEN CONTRIBUTED BY SHRI HIRALAL N. GOYAL ASSESSED IN THE HANDS OF THE AOP IS TAXED IN THE HANDS OF SHRI HIRALAL N. GOYAL. INCIDENTALLY, EVEN DURING THE AP PELLATE PROCEEDINGS IN THE CASE OF M/ S.HIRALAL GOYAL & OTHERS (AOP), THE LEARNED CIT(A) HAS ALSO MADE THE FINDING THAT THE IN VIEW OF VARIOUS ENQUIRIES CONDUCTED AND AFTER VERIFICATION OF THE GENUINENESS OF THE DOCUMENTS SUBMITTED IN RESPECT OF .THE AOP D URING REMAND PROCEEDINGS AND APPELLATE PROCEEDINGS, IT IS PROVED WITHOUT ANY DOUBT THAT THE AOP IN THE NAME OF M/S.HIRALAL GOYAL & OTHERS DOES NOT EXIST AT ALL AND HENCE THE AMOUNT OF RS.93,50, 000 / - BEING THE CAPITAL STATED TO HAVE BEEN BROUGHT BY THE MEMB ERS OF THE AOP IS TAXED IN THE HANDS OF SHRI HIRALAL N. GOYAL. PENALTY PROCEEDINGS U/S. 271(1)(C) OF THE INCOME - TAX ACT, 1961 ARE INITIATED SEPARATELY FOR FURNISHING INACCURATE PARTICULARS OF INCOME/ CONCEALMENT OF INCOME. IT IS CLEAR FROM THE ORDER PAS SED BY THE AO U/S. 143(3) R.W.S.147 IN RESPECT OF HIRALAL NANDLAL GOYAL(INDIVIDUAL) THAT ENTIRE AMOUNT OF RS. 93,50,000/ - WA S BELONGING TO HIRALAL NANDLAL GOYAL(INDIVIDUAL). SINCE THE ENTIRE AMOUNT HAS BEEN ADDED IN THE HANDS OF THE CORRECT PERSON I.E. HI RALAL NANDLAL GOYAL(INDIVIDUAL) , WHICH IS ALSO IN CONSONANCE WITH THE FINDINGS OF CIT(A) IN ITS ORDER DATED 21 - 3 - 2012 IN CASE OF ASSESSEES AOP, WHERE HE HAS OBSERVED THAT THE AOP NEVER CAME INTO EXISTENCE AND THE ENTIRE TRANSACTION WAS CARRIED OUT BY HIR ALAL NANDLAL GOYAL(INDIVIDUAL) , WE DO NOT FIND ANY MERIT FOR SUSTAINING THE SAME ADDITI ON IN THE HANDS OF ASSESSEE(HUF) . ITA NO S . 3444&3445 /1 2 & ITA NO. 3529/12 4 5 . IN VIEW OF THE ABOVE DISCUSSION, APPEAL OF THE ASSESSEE FOR ASSESSMENT YEAR 2007 - 08 IS DISMISSED, WHEREAS THE APPEAL OF THE ASSESSE E FOR ASSESSMENT YEAR 2006 - 07 IS ALLOWED FOR STATISTICAL PURPOSES, SUBJECT THE ADDITION HAVING BEEN MADE IN THE HANDS OF HIRALAL NANDLAL GOYAL(INDIVIDUAL) BY REOPENING THE ASSESSMENT U/S. 147. AND, THE APPEAL OF THE DEPARTMENT IS ALSO DISMISSED AS THERE IS NO INFIRMITY IN THE ORDER OF CIT(A) IN OBSERVING THAT AOP NEVER CAME INTO EXISTENCE AND AMOUNT SO INTRODUCED BELONG TO HIRA LAL NANDLAL GOYAL (INDIVIDUAL). THE REOPENING OF ASSESSMENT OF HIRALAL NANDLAL GOYAL (INDIVIDUAL) WAS ON THE BASIS OF THIS FINDING OF CIT(A), THEREAFTER ENTIRE ADDITION WAS MADE IN THE HANDS OF HIRA LAL NANDLAL GOYAL(INDIVIDUAL), WHILE PASSING ORDER U/S. 143(3) R.W.S.147. 6 . IN THE RESULT, ITA NO. 3444/MUM/2012 IS ALLOWED FOR STATISTICAL PURPOSES, WHEREAS ITA NOS.3445/MUM/2012 & ITA NO. 35 29/MUM/2012 ARE DISMISSED . ORDER PRONOUNCED IN THE OPEN COURT ON THIS 24 /0 9 / 201 4 . 24 / 09 / 2014 SD/ - SD/ - ( ) ( SANJAY GARG ) ( ) ( R.C.SHARMA ) / JUDICIAL MEMBER / ACCOUNTANT MEMBER MUMBAI ; DATED 24 /0 9 /2014 /PKM , PS COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. / THE CIT(A) , MUMBAI. 4. / CIT ITA NO S . 3444&3445 /1 2 & ITA NO. 3529/12 5 / BY ORDER, ( ASSTT. REGISTRAR) / ITAT, MUMBAI 5. / DR, ITAT, MUMBAI 6. GUARD FILE. //TRUE COPY//