SARVAN B . KOTHARI, MUMBAI V. ACIT CEN CIR 14, MUMBAI

ITA 3807/MUM/2009

• Counselvise Citation: [2011] 119 COUNSELVISE.COM (IT) 6786 (ITAT-MUMBAI)
• Duration Of Justice: 2 year(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-06-2011
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: J
• Next Hearing Date: 27-06-2011
• Assessment Year: 2005-2006
• Appeal Filed On: 11-06-2009
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Assessee Lawyers: KUSUM INGALE
• Section: 143(3); 153A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, J BENCH, MUMBAI. BEFORE SHRI PRAMOD KUMAR, ACCOUNTANT MEMBER AND SHRI VIJAY PAL RAO, JUDICIAL MEMBER I.T.A NOS.3807 & 3808/ MUM/2009 ASSESSMENT YEARS: 2005-06 & 2004-05 SARVAN B .KOTHARI, .. APPELLANT 50/52, KOTHARI CHAMBERS, RAMWADI, KALBADEVI ROAD, MUMBAI. PA NO.AACPK 3500 H VS ACIT, CENTRAL CIRCLE-14 ,. RESPONDEN T AAYAKAR BHAVAN, M.K. ROAD, MUMBAI. APPEARANCES: NONE, FOR THE APPELLANT KUSUM INGALE, FOR THE RESPONDENT O R D E R PER VIJAY PAL RAO, JM 1. BOTH THE APPEALS ARE FILED BY THE ASSESSEE AGAINST THE ORDER DATED 31.3.2009 OF THE CIT(A)-C-III, IN THE MATTER OF ASSESSMENT UNDER SECTION 143(3) R.W.S. 153A OF THE I.T.ACT, 1961, FOR THE ASSESSMENT YEARS 2005-06 & 2 004-05, RESPECTIVELY. 2. THE ONLY GROUND TAKEN IN BOTH THE APPEALS IS THAT THE CIT(A) ERRED IN CONFIRMING THE ADDITION OF ` .1,26,792 AND ` .3,18,138 IN BOTH THE ASSESSMENT YEARS PAID ON ACCOUNT OF COMMISSION @ 5% OF UNACCOUNTED MONEY FOR OBTAINING ACCOMMODATI ON ENTRIES OF LONG TERM CAPITAL GAINS. I.T.A NOS.3807 & 3808/ MUM/2009 ASSESSMENT YEARS: 2005-06 & 2004-05 SARVAN B .KOTHARI, 2 3. WE FIND THAT THE HEARING HAD TO ADJOURN SEVERA L TIMES IN THIS CASE. TODAY WHEN THE MATTER WAS CALLED ON FOR HEARING, NONE APPE ARED ON BEHALF OF THE ASSESSEE, NOR THERE WAS ANY APPLICATION FOR ADJOURNMENT. W E ARE THEREFORE, OF THE VIEW THAT THE ASSESSEE IS NOT INTERESTED IN PROSECUTING THE APPEALS B EFORE THE TRIBUNAL. 4. IN ANY CASE, EVEN ON MERITS, THE CONCLUSIONS ARRIVED AT BY THE CIT(A) DO NOT CALL FOR ANY INTERFERENCE. THE ADDITIONS IMPUGNED I N APPEALS ARE ON ACCOUNT OF ALLEGED COSTS INCURRED ON ACCOUNT OF ORGANIZING BOGUS ENTRIES FOR LONG TERM CAPITAL GAIN. ONCE THE ASSESSEE HIMSELF ACCEPTS THAT LONG TERM C APITAL GAINS DISCLOSED BY THE ASSESSEE ARE BOGUS AND SURRENDERS THE SAID INCOME, IT IS A N ATURAL COROLLARY OF THE SAME THAT COSTS INCURRED ON ARRANGING THESE ENTRIES, WHI CH HAVE NOT BEEN ACCOUNTED FOR IN THE BOOKS ANYWAY, HAVE ALSO TO BE ADDED TO ASSESSE ES INCOME THE ADDITIONS MADE BY THE ASSESSING OFFICER, WHICH HAVE BEEN SUSTAINED IN APPEAL BY THE CIT(A), ARE THUS QUITE JUSTIFIED. THERE IS NO MATERIAL WHATSOE VER, OR ANY JUDICIAL PRECEDENT CITED BEFORE US, SO AS TO DISTURB THE FINDINGS OF THE A UTHORITIES BELOW. WE, THEREFORE, CONFIRM THE ACTION OF THE CTI(A) AND DECLINE TO INT ERFERE IN THE MATTER. 5. IN THE RESULT, APPEALS ARE DISMISSED. PRONOUNCED IN THE OPEN COURT AT THE TIME OF HEARI NG I.E. ON 27.6.2011. SD/- (PRAMOD KUMAR) ACCOUNTANT MEMBER SD/- (VIJAY PAL RAO) JUDICIAL MEMBER MUMBAI, DATED 27 TH JUNE, 2011 PARIDA COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. COMMISSIONER OF INCOME TAX (APPEALS)C-III, MUMBAI 4. COMMISSIONER OF INCOME TAX, C-I , MUMBAI 5. DEPARTMENTAL REPRESENTATIVE, BENCH J, MUMBAI //TRUE COPY// BY ORDER ASSTT. REGISTRAR, ITAT, MUMBAI