Shri S.D. Jadeja, JAMNAGAR V. The Income Tax Officer, Ward-3(2), JAMNAGAR

ITA 465/RJT/2011

• Counselvise Citation: 46524914 RSA 2011
• Duration Of Justice: 2 year(s) 7 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-09-2013
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 22-08-2013
• Assessment Year: 2006-2007
• Appeal Filed On: 04-02-2011
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: VILAS V SHINDE DR I
• Assessee Lawyers: VIMAL DESAI CA I
• Keywords: Unexplained cash credit
• Section: 147

Judgement Text

I , IN THE INCOME TAX APPELLATE TRIBULAL; RAJKOT BENCH, RAJKOT. 3 . . $ < . . BEFORE SHRI T. K. SHARMA JM AND SHRI D. K. SRIVASTAVA AM ITA NO S . 465 & 466/RJT/2011 C C / ASSESSMENT YEAR S 200 6 - 0 7 & 2007 - 08. SHRI S. D. JADEJA, MUFF VILLA, SARU SECTION ROAD, JAMNAGAR. PAN : A AYPJ3666M ( A / APPELLANT) THE INCOME - TAX OFFICER, WARD - 3 (2 ), JAMNAGAR. HA / RESPONDENT CEI / ASSESSEE BY SHRI VIMAL DESAI , CA I / REVENUE BY SHRI VILAS V. SHINDE, DR I / DATE OF HEARING 22 - 08 - 2013 I / DATE OF PRONOUNCEMENT 13 - 0 9 - 2013 / ORDER 3 . . $ , < / T. K. SHARMA, J. M. : TH E S E TWO APPEAL S BY THE ASSESSEE ARE AGAINST THE TWO SEPARATE ORDER S BOTH DATED 23 - 09 - 2011 OF LD. CIT (A ), JAM NAGAR FOR THE ASSESSMENT YEAR S 200 6 - 0 7 AND 2007 - 08 RESPECTIVELY. BOTH THESE APPEALS WERE HEARD ON THE DATE DAY, ARGUED BY COMMON REPRESENTATIVE THEREFORE, THEY ARE DECIDED BY THIS COMMON ORDER FOR THE SAKE OF CONVENIENCE. 2 . T HE FACTS , IN BRIEF, ARE THAT THE ASSESSEE IS A N EX - RULER OF JAMNAGAR. HE IS 74 YEARS OLD. FOR THE ASSESSMENT YEAR S UNDER APPEAL, HE DID NOT FILE THE RETURN OF INCOME . O N RECEIPT OF CERTAIN INFORMATION BY THE AO, HE ISSUED A NOTICE U/S.148 OF THE I.T. ACT ON 25 - 09 - 2009. IN RESPONSE TO THIS NOTICE ALSO, THE ASSESSEE DID NOT FILE THE RETURN OF INCOME FOR THE ASSESSMENT YEARS 2006 - 07 AND 2007 - 08 . AO THEREAFTER FRAMED THE ASSESSMENT U/S.144 R. W. S. 147 OF THE I.T. ACT, 1961 ON 24 - 12 - 2010 WHEREIN HE MADE ADDITION OF RS.20,83,548/ - IN RESPECT OF UNEXPLAINED CREDIT S /DEPOSIT S IN VARIOUS BANK ACCOUNTS. THE FACTS FOR THE ASSESSMENT YEAR 2007 - 08 ARE A LSO IDENTICAL. FOR THIS YEAR ALSO THE AO FRAMED ASSESSMENT U/S.144 R.W.S. 147 OF T HE I.T. ACT, 1961 ON 24 - 12 - 2010 WHEREIN HE MADE ADDITION OF RS.59,31,086/ - ON ACCOUNT OF UNEXPLAINED CREDIT S /DEPOSIT S IN VARIOUS BANK ACCOUNTS. 3. ON APPEAL, THE LD. CIT (A) IN THE IMPUGNED ORDER FOR THE ASSESSMENT YEAR 2006 - 07 CONFIRMED THE ADDITION OF RS.20,83,548/ - MADE BY AO ON ACCOUNT OF ITA 465 & 466 - 2011 2 UNEXPLAINED CREDIT S /DEPOSIT S IN VARIOUS BANK ACCOUNTS. FOR THE ASSESSMENT YEAR 2007 - 08, THE LD. CIT (A) CONFIRMED THE ADDITION TO THE EXTENT OF RS.31,81,086/ - OUT OF TOTAL ADDITION OF RS. 59,31,086/ - MADE BY AO ON ACCOUNT OF UNEXPLAINED CREDIT S /DEPOSIT S IN VARIOUS BANK ACCOUNTS. AGGRIEVED WITH THE ORDER OF LD. CIT (A) FOR BOTH THE ASSESSMENT YEARS, THE ASSESSEE IS IN APPEAL BEFORE THE TR IBUNAL. THE GROUND RAISED IN THE RESPECTIVE YEARS IS AS UNDER: - ASSESSMENT Y EAR 2006 - 07: - THE ASSESSMENT ORDER U/S.144 R.W.S. 147 IS PER SE NOT BAD IN LAW, BUT THE LEARNED ASSESSING OFFICER HAS ERRED ON FACTS IN CONSIDERING DEPOSITS AMOUNTING TO RS.20,83,5 48/ - IN VARIOUS BANK ACCOUNTS AS ALLEGED UNEXPLAINED CREDITS U/S.69. THE LEARNED CIT (A) HAS ERRED IN CONFIRMING THE SAME. ASSESSMENT Y EAR 200 7 - 0 8 : - THE ASSESSMENT ORDER U/S.144 R.W.S. 147 IS PER SE NOT BAD IN LAW, BUT THE LEARNED ASSESSING OFFICER HAS ER RED ON FACTS IN CONSIDERING DEPOSITS AMOUNTING TO RS.59,31,086/ - IN VARIOUS BANK ACCOUNTS AS ALLEGED UNEXPLAINED CREDITS U/S.69. THE LEARNED CIT (A) HAS ERRED IN CONFIRMING THE SAME TO THE EXTENT OF RS.31,81,086/ - . 4. AT THE TIME OF HEARING BEFORE US, ON BEHALF OF ASSESSEE, SHRI VIMAL DESAI, CA, APPEARED AND POINTED OUT THAT ASSESSEE IS AN INDIVIDUAL AND EX - RULER OF JAMNAGAR. HE IS 74 YEARS OLD. IN ABSENCE OF ANY REGULAR INCOME GENERATING ACTIVITY , HE IS NOT REQUIRED TO MAINTAIN BOOKS OF ACCOUNTS. THE MAT TERS OF BOTH THE ASSESSMENT YEARS ARE VERY OLD AND DUE TO NON - AVAILABILITY OF ADMINISTRATIVE INFRASTRUCTURE SUCH AS ACCOUNTANT / ADMINISTRATIVE STAFF, ASSESSEE HAS TO DO RECORD KEEPING AND DUE TO CHANGE OVER OF BANKING ACCOUNTING SOFTWARE, THE ASSESSEE COU LD NOT ASCERTAIN THE NATURE OF TRANSACTION AND COULD NOT PRODUCE THESE DOCUMENTS DURING THE COURSE OF ASSESSMENT PROCEEDINGS. HE ACCORDINGLY SUBMITTED THAT NOW THE ASSESSEE HAS COLLECTED INFORMATION THEREFORE MATTER BE RESTORED TO THE FILE OF AO AND FURTHE R DETAILS/EVIDENCES SHALL BE FURNISHED BEFORE THE AO FOR BOTH THE ASSESSMENT YEARS. THE LD. DR STRONGLY OBJECTED TO THIS PRAYER OF LD. COUNSEL OF THE ASSESSEE ON THE GROUND THAT ASSESSEE HAS NOT FURNISHED VOLUNTARILY RETURN FOR BOTH THE ASSESSMENT YEARS BE FORE THE AO . THE ASSESSEE COULD NOT FURNISH THE DETAILS. THE AO FRAMED THE ASSESSMENT FOR BOTH THE YEAR U/S.144 R.W.S.147 OF THE IT ACT, 1961. FOR THE ASSESSMENT YEAR 2006 - 07, ITA 465 & 466 - 2011 3 ASSESSEE COULD NOT EXPLAIN BEFORE BOTH THE DEPARTMENTAL AUTHORITIES BELOW NATURE OF THE ENTRIES AGGREGATING TO RS.20,83,548/ - . FOR THE ASSESSMENT YEAR 2007 - 08, THE AO MADE ADDITION OF RS. 59,31,086/ - IN RESPECT OF UNEXPLAINED CREDITS/DEPOSITS IN VARIOUS BANK ACCOUNTS WHICH WAS REDUCED BY LD. CIT (A) TO RS.31,81,086/ - . THE LD. DR SUBMI TTED THAT TO THE THIS EXTENT BEFORE LD. CIT (A) EXPLAINED THE ENTRIES WITH EVIDENCES, ADDITION HAS BEEN DELETED BY THE LD. CIT (A) THEREFORE, VIEW TAKEN BY LD. CIT (A) FOR BOTH THE ASSESSMENT YEARS BE UPHELD. 5. IN REJOINDER, COUNSEL OF THE ASSESSEE REITER ATED THE SUBMISSIONS MADE BEFORE THE AUTHORITIES BELOW. HE SUBMITTED THAT ASSESSEE IS IN THE PROCESS OF ASCERTAINING THE DETAILS / NATURE IN RESPECT OF REMAINING DEPOSITS IN THE BANK ACCOUNT. THEREFORE, IN THE INTEREST OF JUSTICE, LOOKING TO THE AGE OF THE ASSESSEE, ONE MORE OPPORTUNITY BE ALLOWED SO THAT ASSESSEE MAY FURNISH THE EXPLANATION WITH EVIDENCES IN RESPECT OF REMAINING ENTRIES ALLEGED UNEXPLAINED CREDITS/DEPOSITS IN VARIOUS BANK ACCOUNTS. 6. HAVING HEARD BOTH SIDES, WE HAVE CAREFULLY GONE THROUGH THE ORDERS OF AUTHORITIES BELOW. IT IS PERTINENT TO NOTE THAT FOR BOTH THE ASSESSMENT YEARS, AO FRAMED THE ASSESSMENT U/S.144 R.W.S.147 OF THE I.T. ACT, 1961. TO THIS EXTENT, THE ASSESSED EXPLAINED THE DEPOSITS WITH NECESSARY EVIDENCE IN THE VARIOUS BANK ACCOUNTS. THE LD. CIT (A) ALLOWED THE RELIEF. THE COUNSEL OF THE ASSESSEE HIMSELF HAS ADMITTED THAT THE MATTER IS AN OLD AND HE IS IN PROCESS OF COLLECTING FURTHER DETAILS. IN VIEW OF THESE FACTS , WE ARE OF THE OPINION THAT NO USEFUL PURPOSE WILL BE SERVE D IN REMANDING THE MATTER BACK TO THE FILE OF AO FOR FRESH DECISION OF BOTH THE ASSESSMENT YEARS. WE THEREFORE, DECLINED TO INTERFERE AND DISMISS BOTH THE APPEALS FILED BY THE ASSESSEE. 7. IN THE RESULT, BOTH THE APPEAL S OF THE ASSESSEE ARE DISMISSED. 8 . T HIS O RDER IS PRONOUNCED IN OP EN COURT ON THE DATE MENTIONED HEREINABOVE. SD/ - SD/ - ( . . . D. K. SRIVASTAVA ) ( . . C / T. K. SHARMA) / ACCOUNTANT MEMBER / JUDICIAL MEMBER U / ORDER DATE 13 - 0 9 - 2013. /RAJKOT NVA/ - ITA 465 & 466 - 2011 4 JO AO / COPY OF ORDER FORWARDED TO: - 1 . A /APPELLANT - SHRI S.D. JADEJA,MUFF VILLA, SARU SECTION ROAD, JAMNAGAR. 2 . HA / RESPONDENT - THE INCOME - TAX OFFICER, WARD - 3 (2 ), JAMNAGAR. 3 . I T / CONCERNED CIT , JAM NAGAR . 4 . JAMN GAR. - / CIT (A ), JAM NAGAR. 5 . I , I , / DR, ITAT, RAJKOT 6 . C / GUARD FILE. / BY ORDER TRUE COPY. PRIVATE SECRETARY, ITAT, RAJKOT