Shri Dhanji Premji Panchani, Bhuj V. The Income Tax Officer, Ward-2, Bhuj

ITA 347/RJT/2015

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 2292 (ITAT-RAJKOT)
• Duration Of Justice: 7 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-02-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 03-12-2015
• Assessment Year: 2010-2011
• Appeal Filed On: 02-07-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: C S ANJARIA
• Assessee Lawyers: DEEPAK RINDANI
• Keywords: Income from undisclosed sources
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL RAJKOT BENCH , RAJKOT BEFORE: S H RI PRAMOD KUMAR , ACCOUNTANT MEMBER AND SHR I S. S. GODARA , JUDICIAL MEMBER [CONDUCTED THROUGH E - C OURT AT AHMEDABAD] SHRI DHANJI PREMJI PANCHANI C/O SIGMA ELECTRONICS AND ELECTRICALS, BHUJ - KUTCH PAN: AEEPP7460B (APPELLANT) VS THE ITO, WARD - 2, BHUJ (RESPONDENT) REVENUE BY : S H RI C.S. ANJARIA , D . R. ASSESSEE BY: S H RI DEEPAK RINDANI , A.R. DATE OF HEARING : 03 - 12 - 2 015 DATE OF PRONOUNCEMENT : 12 - 02 - 2 016 / ORDER P ER : S. S. GODARA , JUDICIAL MEMBER : - THI S ASSESSEE S APPEAL FOR A.Y. 2010 - 11 , AR ISES FROM ORDER OF THE CIT(A) - 3, RAJKOT DATED 15 - 04 - 2015 IN APPEAL NO. CIT(A) - 3 / RJT/0099/13 - 14 , IN PROCEEDINGS UNDER SECTION 143(3) OF THE INCOME TAX ACT, 1961; IN SHORT THE ACT . I T A NO . 347 / RJT /20 15 A SSESSMENT YEAR 2010 - 11 I.T.A NO. 34 7/RJT /20 15 A.Y. 2010 - 11 PAGE NO SHRI DHANJI PREMJI PANCHANI VS. ITO 2 2. THE ASSESSEE S SOLE SUBSTANTIVE GROUND RAISED IN THE INSTANT APPEAL CHALLENGES ACTION OF BOTH THE LOWER AUTHORITIES IN ADDING A SUM OF RS. 5,10,700/ - AS DIFFERENCE IN OPENING BALANCE OF CASH IN HAND. THE ASSESSEE DERIVES INCOME FROM HIS PARTNER SHIP BUSINESS. THE ASSESSING OFFICER NOTICED CASH IN HAND AS ON 31 - 03 - 2009 AND 01 - 04 - 2009 TO BE OF RS. 9,67,201/ - AND RS. 14,77,901/ - ;RESPECTIVELY RESULTING IN THE IMPUGNED DIFFERENTIAL AMOUNT OF RS. 5,10,000/ - . THE ASSESSING OFFICER MADE ADDITION OF THI S AMOUNT UNDER THE HEAD UNACCOUNTED INCOME QUOTING ASSESSEE S FAILURE IN EXPLAINING THE SAME. 3. THE CIT(A) UPHOLDS THE ASSESSING OFFICER S ACTION. 4. WE HAVE HEARD BOTH THE PARTIES. THE DISPUTE IN THE INSTANT APPEAL IS QUA THE IMPUGNED CASH IN H A ND DIFFERENCE IN CASH IN HAND FIGURE OF RS. 5,10,700/ - AS ON 31 - 03 - 2009 AND 01 - 04 - 2009. THE ASSESSEE S EXPLANATION BEFORE THE LOWER AUTHORITIES IS THAT THE ASSESSING OFFICER HAD COMPLETED A REGULAR ASSESSMENT FOR PRECEDING ASSESSMENT YEAR 2009 - 10 ACCEPTIN G THE CASH IN HAND OF RS. 9,67,201/ - AS WELL AS ACQUISITION OF TWO PERSONAL LOAN BUSINESS ASS E TS OF HOUSE HOLD FURNITURE AND ELECTRONIC ITEMS WORTH RS. 4,70,700/ - AND RS. 40,000/ - ; RESPECTIVELY TOTALING TO RS. 5,10,700/ - IN QUESTION. HE DRAWS OUR ATTENTIO N TOWARDS RELEVANT BOOKS OF ACCOUNT, BALANCE SHEET FORMING PART OF THE CASE FILE. HIS CASE IS THAT THERE WAS CHANGE IN AUDITOR LEADING TO SUBMISSION OF UN - FINALIZ ED DATA BASED ON OLD ACCOUNT. IT IS FURTHER CLARIFIED THAT THERE IS NO OTHER BUSINESS EXCEPT I.T.A NO. 34 7/RJT /20 15 A.Y. 2010 - 11 PAGE NO SHRI DHANJI PREMJI PANCHANI VS. ITO 3 THAT OF EARNING PROFITS FROM SHARES IN T H E PARTNERSHIP FIRM . WE FIND THAT CIT(A) HAS NOWHERE REJECTED THIS SPECIFIC CONTENTION BY REFERRING TO ABOVE STATED REGULAR ASSESSMENT FRAMED IN THE PRECEDING ASSESSMENT YEAR. THE SAME FACTUAL POSITION CONTINUES BEFORE THE TRIBUNAL AS WELL WHEREIN THE ASSESSEE REITERATES HIS RECONCILIATION ON THE BASIS OF ABOVE SAID PURCHASES OF FURNITURE AND ELECTRONIC ITEMS PIN POINTING TOWARDS RECONCILIATION OF THE ADDITION AMOUNT IN QUESTION. WE ACCEPT ASSESSEE S SOLE SUBSTANT IVE GROUND IN THESE FACTS AND CIRCUMSTANCES. THE IMPUGNED ADDITION OF RS. 5,10,700/ - AS DIFFERENCE IN CLOSING BALANCE AND OPENING BALANCE AS ON 31 - 03 - 2009 AND 01 - 04 - 2009; RESPECTIVELY IS DELETED. 5. THIS ASSESSEE S APPEAL IS ALLOWED. OR DER PR ONOUNCED IN THE OPEN C OUR T ON 12 - 02 - 201 6 SD/ - SD/ - (PRAMOD KUMAR ) ( S. S. GODARA ) ACCOUNTANT MEMBER JUDICIAL MEMBER AHMEDABAD : DATED 12 /02 /2016 AK / COPY OF ORDER FORWARDED TO: - 1. ASSESSEE 2. REVENUE 3. CONCERNED CIT 4. CIT (A) 5. DR, ITAT, AHMEDABAD 6. GUARD FILE. BY ORDER, I.T.A NO. 34 7/RJT /20 15 A.Y. 2010 - 11 PAGE NO SHRI DHANJI PREMJI PANCHANI VS. ITO 4 ASSISTANT REGISTRAR, INCOME TAX APPELLATE TRIBUNAL, RAJKOT