Shri Bharat Sevantilal Shah, Surat V. The Income tax Officer,Ward-5(1), Surat

ITA 406/AHD/2012

• Counselvise Citation: 40620514 RSA 2012
• Duration Of Justice: 3 year(s) 6 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-08-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 14-08-2015
• Assessment Year: 2008-2009
• Appeal Filed On: 13-02-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DINESH SINGH
• Assessee Lawyers: MODI
• Keywords: Unexplained investment; Capital asset
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD A BENCH BEFORE: S H RI G. D. AGRAWAL , VICE PRESIDENT AND SHR I S. S. GODARA , JUDICIAL MEMBER SHRI BHARAT SEVANTILAL SHAH, PROP. M/S. BHARAT TEXTILE, 1/3735, SURAJ BHAWAN, NANABHAI ROAD SONI FALIA, SURAT - 395007 PAN: ACOPS2624J (APPELLANT) VS THE INCOME TAX OFFICER, WARD 5(1), AAYAKAR BHAVAN, MAJURAGATE, S URAT (RESPONDENT) ASSESSEE BY: S H RI M.S. MODI , A.R. REVENUE BY: S HRI DINESH SINGH , SR. D.R. DATE OF HEARING : 06 - 08 - 2 015 DATE OF PRONOUNCEMENT : 20 - 08 - 2 015 / ORDER P ER : S. S. GODARA , JUDICIAL MEMBER : - THIS ASSESSEE S APPEAL FOR ASSESSMENT YEAR 2008 - 09 , AR ISES FROM ORDER OF THE CIT(A) - I, SURAT DATED 30 - 11 - 2011 IN APPEAL NO. CAS - I/184/ 11 - 12 , IN PROCEEDINGS UNDER SECTION 143(3) OF THE INCOME TAX ACT, 196 1; IN SHORT THE ACT . I T A NO . 406 / A HD/20 12 A SSESSMENT YEAR 200 8 - 09 I .T.A NO. 406 /AHD/20 12 A.Y. 2008 - 09 PAGE NO SHRI BHARAT SEVANTILAL SHAH VS. ITO 2 2. FOR THE REASON IN ASSESSEE S CONDONATION AFFIDAVIT DATED 11/08/2015 AND FOR WANT OF ANY OPPOSITION FOR M THE REVENUE, WE CON DONE DELAY OF 3 DAYS IN FILING OF THIS APPEAL. THE CAS E IS TAKEN UP FOR DECISION ON MERITS. THE SOLE SUB STANTIVE GROUND RAISED IN THIS APPEAL CHALLENGES THE COMMISSIONER OF INCOME TAX(A) S ORDER AFFIRMING THE ASSESSING OFFICER S ACTION ADDING A SUM FOR RS. 4.2 LACS AS UNEXPLAINED INVESTMENT. 3. FACTS OF THE CAS E ARE IN A NARROW COMPASS. THE ASSESSEE - INDIVI DUAL MANUFACTURES GREY CLOTH. THE ASSESSING OFFICER IN THE COURSE OF SCRUTINY NOTICED THE ASSESSE E TO HAVE SHOWN FACTORY SHED AS A CAPITAL ASSET HAVING VALUE OF RS. 80,000/ - IN FINANCIAL YEAR 2006 - 07 AND RS. 5 LACS IN THE RELEVANT PREVIOUS YEAR. THIS RESU LTED IN DIFFERENCE OF RS. 4,20,000/ - . HE SOUGHT FOR DETAILS OF THE SAME WITH COPY OF THE CORRESPONDING PURCHASE BILLS. THE ASSESSEE DOE NOT SEEM TO HAV E FI L E D ANY REPLY. THIS MADE THE ASSESSING AUTHORITY TO ADD THE IMPUGNED DIFFERENTIAL SUM AS UNEXPLAIN ED INVESTMENT. THE COMMISSIONER OF INCOME TAX(A) ALSO UPHOLDS THE SAME IN THE ORDER UNDER CHALLENGE 4. WE HAVE HEARD RIVAL CONTENTION AND GONE THROUGH CASE FILE. RELEVANT FACTS ALREADY STOOD NARRATED HEREINABOVE. THE AUTHORITIES BELOW HAVE ADDED DIFFER ENCE IN BOOKS OF RS. 4.2 LACS ARISING F R O M THE VALUE OF FACTORY SHED SHOWN IN PRECEDING AND IMPUGNED ASSESSMENT YEAR. THE ASSESSEE S CASE IS THAT THE SAME HAD ARISEN FRO M COLOUR AND REPAIRS CARRIED OUT DULY EXPLAINED IN SCRUTINY. THIS ALTERNATIVE PLEA HA S GONE UN - REBUTTED. S ECONDLY , EVEN IF, THE SAME IS TURN ED DOWN , THE FACT REMAINS THAT THERE IS NO EVIDENCE APART FROM BOOK ENTRIES WHATSOEVER , IN FAVOUR OF THE ASSESSING A UTHORITY S OPINION MAKING THE PRESENT CASE AS IN INSTANCE OF AN UNEXPLAINED INVESTME NT. WE DEEM IT PROPER TO OBSERVE THAT IT WAS VERY I .T.A NO. 406 /AHD/20 12 A.Y. 2008 - 09 PAGE NO SHRI BHARAT SEVANTILAL SHAH VS. ITO 3 MUCH IMPERATIVE FOR THE LOWER AUTHORITIES TO HAVE BROUGHT ON RECORD ACTUAL EVIDENCE OF INVESTMENTS. THE SAME HAS NOWHERE BEEN DONE. WE ACCEPT ASSESSEE S GROUNDS AGAINST THE LOWER AUTHORITIES ACTION IN QU ESTION. 5. THIS ASSESSEE S APPEAL IS ALLOWED. ORDER PR ONOUNCED IN THE OPEN C OURT ON 20 - 08 - 2015 SD/ - SD/ - ( G.D. AGRAWAL ) ( S. S. GODARA ) VICE PRESIDENT JUDICIAL MEMBER AHMEDABAD : DATED 20 /08 /2015 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/ , / ,