G.Rukmani, Erode V. DCIT, Salem

ITA 451/CHNY/2015

• Counselvise Citation: [2019] 118 COUNSELVISE.COM (IT) 4061 (ITAT-CHENNAI)
• Duration Of Justice: 3 year(s) 11 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-02-2019
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2006-2007
• Appeal Filed On: 05-03-2015
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: SIRDHAR DORA
• Keywords: Unexplained cash credit
• Section: 133A

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH : CHENNAI [BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI ABRAHAM P. GEORGE, ACCOUNTANT MEMBER ] ./I.T.A. NO. 451/CHNY/2015 / ASSESSMENT YEAR : 2006-2007. SMT. G. RUKMANI, 15, PATTABI LANE, BUDDHAR STREET, KOMARAPLAYAM, NAMAKKAL DIST. 638 183. [PAN AAYPR 3699G] VS. THE DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE II, SALEM. ./I.T.A. NO.452/CHNY/2015 / ASSESSMENT YEAR : 2006-2007. M/S. KUMAR TEXTILES, NO.150, KALAIMAGAL STREET, KOMARAPLAYAM, NAMAKKAL DIST. 638 183. [PAN AABFK 7758A] VS. THE DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE II, SALEM. ( / APPELLANT) ( /RESPONDENT) / APPELLANT BY : NONE /RESPONDENT BY : SHRI. SIRDHAR DORA, JCIT. /DATE OF HEARING : 05 - 0 2 - 201 9 /DATE OF PRONOUNCEMENT : 07 - 0 2 - 201 9 / O R D E R PER ABRAHAM P. GEORGE, ACCOUNTANT MEMBER THESE ARE APPEALS FILED BY THE ASSESSEES DIRECTE D AGAINST ORDERS DATED 30.12.2014 OF LD. CIT(A), SALEM. ITA NOS.451 & 452/2015. :- 2 -: 2. ASSESSEES IN THESE APPEALS ARE SMT. G. RUKMANI IN HER INDIVIDUAL CAPACITY AND M/S. KUMAR TEXTILES, A FIR M IN WHICH G. RUKMANI SEEMS TO BE AN INTERESTED PARTY. THESE APPE ALS WERE EARLIER DISPOSED OFF BY THIS TRIBUNAL THROUGH ORDERS DATED 20.05.2015. BOTH ASSESSEES THEREUPON FILED MISCELLANEOUS PETITIONS S EEKING RECALL OF THE ORDERS OF THE TRIBUNAL, SINCE SUCH ORDERS WERE PASS ED EX-PARTE. THE TRIBUNAL CONSIDERING SUCH MISCELLANEOUS PETITIONS, VIDE ITS ORDER DATED 22.09.2015 IN M.P.NOS.115 & 116/MDS/2015 RECALLED I TS EARLIER ORDERS AND POSTED THE CASES FOR HEARING ON 08.12.2015. ON 08.12.2015, WHEN THE CASES WERE CALLED UP FOR HEARING, NONE APP EARED ON BEHALF OF THE ASSESSEES. THEREAFTER, THE CASES WERE POS TED FOR HEARING ON 25.02.2016, 31.03.2016, 06.06.2016, 24.08.2016, 28. 11.2016, 21.02.2017, 22.05.2017, 27.07.2017, 17.10.2017, 03. 11.2017, 15.01.2018, 26.03.2018, 31.05.2018, 13.08.2018, 12. 12.2018 AND 02.01.2019. EXCEPT FOR FILING ADJOURNMENT PETITIONS ON A FEW OCCASIONS, NOBODY APPEARED ON BEHALF OF THE ASSESSEE, DESPITE NOTICES BEING ISSUED BY REGISTERED POST. TODAY WHEN THE CASES W ERE CALLED UP FOR HEARING ALSO, THERE WAS NO RESPONSE FROM ASSESSEES SIDE. THERE IS AN ADJOURNMENT PETITION FILED BY ADVOCATE SHRI. B. P ARTHASARATHY, SEEKING TIME STATING THAT HE WAS HAVING A FAMILY CE REMONY TODAY. CONSIDERING THE LARGE NUMBER OF ADJOURNMENTS ALRE ADY GRANTED IN THESE CASES, WE ARE NOT INCLINED TO GIVE ANY FURTH ER ADJOURNMENTS. ITA NOS.451 & 452/2015. :- 3 -: 3. GROUNDS TAKEN BY BOTH THE ASSSESSEES ARE SIMILAR A ND QUESTIONS THE PROCEEDINGS U/S.133A OF THE INCOME T AX ACT, 1961, (IN SHORT THE ACT) ISSUE OF NOTICE U/S.143(2) OF TH E ACT, RELIANCE PLACED ON SWORN STATEMENT GIVEN BY PERSONS OTHER THAN THE ASSESSEES AND ALSO THE ADDITIONS MADE BY THE LD. AO FOR EXCESS ST OCK AND UNEXPLAINED CREDITS. 4. WE HAVE CAREFULLY GONE THROUGH THE GROUNDS, ORDERS OF THE LOWER AUTHORITIES AND ALSO HEARD THE ARGUMENTS OF THE LD. DEPARTMENTAL REPRESENTATIVE. THERE WAS A SURVEY IN THE PREMISES OF THE ASSESSEEES ON 21.07.2006. SMT. G. RUKMANI WAS THE PROPRIETOR OF M/S. ASHOK KUMAR TRADERS, MANUFACTURING TEXTILE GO ODS. ASSESSEE M/S. KUMAR TEXTILES, WAS A PARTNERSHIP FIRM IN W HICH SMT. G. RUKMANI WAS INTERESTED. AS PER THE LD. AO, AN EXCE SS STOCK OF RS.10,00,000/- WAS FOUND DURING THE SURVEY, AND AS SESSEES HAD AGREED TO SHOW SUCH STOCK AS ADDITIONAL INCOME. DU RING THE COURSE OF THE ASSESSMENT PROCEEDINGS, ASSESSEES ALSO FILED A STOCK RECONCILIATION STATEMENT WHEREIN IT WORKED OUT AN EXCESS STOCK OF RS.3,68,336/-. APART FROM THIS, ASSESSEE SMT. G. RU KMANI, IN HER BOOKS OF PROPRIETORSHIP CONCERN, M/S. ASHOK KUMAR T RADERS HAD SHOWN CREDIT BALANCE OF RS.4,05,000/- IN THE NAME OF M/S. SENTHIL KUMAR FABRICS AND RS.13,56,176/- IN THE NAME OF ONE M/S. MOHAN KUMAR ITA NOS.451 & 452/2015. :- 4 -: FABRICS. ASSESSEE M/S. KUMAR TEXTILES HAD SHOWN A CREDIT BALANCE OF RS.3,40,000/- IN THE NAME OF M/S. YUVARANI FABRICS AND RS.8,88,805/- IN THE NAME OF M/S. MOHAN KUMAR FABRICS. ASSESSE ES COULD NOT PRODUCE ANY EVIDENCE PROVING THE GENUINENESS OF T HE CREDITORS IN THE NAME OF M/S. SENTHIL KUMAR FABRICS, M/S. MOHAN KUMA R FABRICS, M/S. YUVARANI FABRICS. LD. AO THEREFORE MADE ADDITIONS IN THE HANDS OF EACH ASSESSEES 50% OF THE EXCESS STOCK OF RS.3,68,3 36/-, AND ALSO THE CREDIT BALANCES IN THE NAME OF ABOVE MENTIONED CREDITORS, TREATING IT AS UNPROVED. EVEN BEFORE LD. CIT(A), ASSESSEES D ID NOT ENTER APPEARANCE DESPITE A NUMBER OF OPPORTUNITIES GIVEN. NO EVIDENCE WAS FILED BY THE ASSESSEES IN SUPPORT OF ITS CLAIM FOR CREDIT BALANCE IN THE NAME OF M/S. SENTHIL KUMAR FABRICS, M/S. MOHAN KUMA R FABRICS, M/S. YUVARANI FABRICS AT ANY POINT OF THE PROCEEDINGS, E ITHER BEFORE LD. AO OR LD. CIT(A). THAT APART, THE STOCK SHORTAGE WAS A DMITTED BY THE ASSESSEES ITSELF AND THE ADDITION WAS BASED ON THE RECONCILIATION PROVIDED BY THE ASSESSEES. AS TO THE CLAIM OF THE ASSESSEES THAT PROCEEDINGS U/S.133A OF THE ACT WAS UNLAWFUL AND LD . AO HAD NO AUTHORITY TO ISSUE NOTICE U/S.143(2) OF THE ACT, WE ARE UNABLE TO ACCEPT. SECTION 133A OF THE ACT GIVES VIDE POWERS TO INCOME TAX AUTHORITIES FOR DOING A SURVEY AND SECTION 143(2) OF THE ACT GIVES POWERS TO THE ASSESSING AUTHORITY TO SERVE A NOTICE ON AN ASSESSEE FOR PRODUCING EVIDENCE WHICH THE ASSESSEE RELIES IN SUPPORT OF ITS ITA NOS.451 & 452/2015. :- 5 -: RETURN. IN THESE CIRCUMSTANCES, WE DO NOT FIND ANY REASON TO INTERFERE WITH THE ORDERS OF THE LOWER AUTHORITIES. 5. IN THE RESULT, APPEALS OF THE ASSESSEES ARE DISMISS ED. ORDER PRONOUNCED ON THURSDAY, THE 7TH DAY OF FE BRUARY, 2019, AT CHENNAI. SD/ - (N.R.S. GANESAN) / JUDICIAL MEMBER SD/ - (ABRAHAM P. GEORGE) / ACCOUNTANT MEMBER / CHENNAI / DATED:7 TH FEBRUARY, 2019. KV / COPY TO: 1 . / APPELLANT 3. ( ) / CIT(A) 5. / DR 2. / RESPONDENT 4. / CIT 6. / GF