Income-tax Officer, V. Mrs. Manisha Chimbalkar, Pune

ITA 480/PUN/2015

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 9482 (ITAT-PUNE)
• Duration Of Justice: 2 year(s) 9 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-01-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 22-01-2018
• Assessment Year: 2005-2006
• Appeal Filed On: 16-04-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Bogus purchase; Income from undisclosed sources
• Section: 132

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH, PUNE . , , , BEFORE SHRI D. KARUNAKARA RAO , AM AND SHRI VIKAS AWASTHY, JM . / I TA NO. 480 /PUN/20 15 / ASSESSMENT YEAR : 2005 - 06 THE INCOME - TAX OFFICER, WARD - 8(1), PUNE. ....... / APPELLANT / V/S. MRS. MANISHA CHIMBALKAR, B - 1, SWAPNA NAGARI, PLOT NO. 502, NEHRU NAGAR, PIMPRI, PUNE - 411 018 PAN :ADBPC8684J / RESPONDENT REVENUE BY : SHRI AJAY MODI A SSESSEE BY : SHRI NIKHIL PATHAK / DATE OF HEARING : 22.01.2018 / DATE OF PRONOUNCEMENT : 24 .01.2018 / ORDER PER VIKAS AWASTHY, JM THIS APPEAL BY REVENUE IS DIRECTED AGAINST THE ORDER OF COMMISSIONER OF INCOME TAX (APPEALS) - 12, PUNE DATED 27.01.2015 FOR THE ASSESSMENT YEAR 2005 - 06. 2 ITA NO. 480/PUN/2015 A.Y.2005 - 06 2. THE BRIEF FACTS OF THE CASE AS EMANATING FROM RECORDS ARE: A SEARCH ACTION U/S. 132 OF THE INCOME TAX ACT, 1961 (HEREINAFTER REFERRED TO AS THE ACT) WAS CARRIED OUT AT THE PREMISES OF M/S. FABTECH PROJECT & ENGINEER ING ON 31.01.2012. THE ASSESSEE IS A PROPRIETOR OF THERMCON ENGINEERS AND PART OF FABTECH GROUP. STATEMENT OF SHRI B.A. RUPNAR, CHAIRMAN OF FABTECH GROUP WAS RECORDED U/S.132(4) OF THE ACT ON 02.04.2012 , WHEREIN HE HAD DISCLOSED ADDITIONAL INCOME OF RS. 39 CRORES AS UNACCOUNTED INCOME OF THE GROUP ON ACCOUNT OF BOGUS PURCHASES. IN HIS STATEMENT, HE DECLARED ADDITIONAL INCOME OF RS.75,35,721/ - FOR ASSESSMENT YEAR 2005 - 06 IN THE HANDS OF ASSESSEE. IN VIEW OF SEARCH ACTION, THE ASSESSING OFFICER RE - OPENED THE CASE OF ASSESSEE FOR ASSESSMENT YEAR 2005 - 06. IN RESPONSE TO NOTICE U/S. 148, THE ASSESSEE FILED RETUR N OF INCOME ON 31.12.2012 DECLARING TOTAL INCOME OF RS.43,17,016/ - FOR ASSESSMENT YEAR 2005 - 06 . THE ASSESSING OFFICER HELD THAT SINCE THE ASSESSEE IN HER ORIGINAL RETURN OF INCOME HAD DECLAR ED TOTAL INCOME ASSESSEE IN HER ORIGINAL RETURN OF INCOME HAD DECLAR ED TOTAL INCOME RS.3,03,730/ - , O N THE BASIS OF STATEMENT MADE BY S HRI B.A. RUPNAR, THE ASSESSEE SHOULD HAVE DECLARED HER INCOME AT RS.78,39,451/ - . HOWEVER, THE ASSESSEE DECLARED HER INCOME AT RS.43,17,016/ - ONLY. THUS, THE ASSESSI NG OFFICER MADE ADDITION OF RS. 35,22,435/ - IN THE INCOME DECLARED BY ASSESSEE AND ASSESSED T OTAL INCOME OF ASSESSEE AS RS.78,39,451/ - . 3. AGGRIEVED BY THE ASSESSMENT ORDER DATED 15.03.2013 PASSED U/S. 143 (3) R.W.S. 148 OF THE ACT, ASSESSEE FILED APPEAL BEFORE COMMISSIONER OF INCOME TAX (APPEALS). IN PROCEEDINGS BEFORE COMMISSIONER OF INCOME TAX (APPEALS) , THE ASSESSEE EXPLAINED THAT WHILE DECLARING AMOUNT OF RS.75,35,721/ - , THE ASSESSEE HAD INCLUDED OPENING BALANCE AS ON 01.04.2004 AND PURCHASES MADE DURING THE YEAR. IN ASSESSMENT YEAR 2005 - 06, ONLY BOGUS PURCHASES DEBITED DURING THE RELEVANT PER IOD I.E. 3 ITA NO. 480/PUN/2015 A.Y.2005 - 06 FINANCIAL YEAR 2004 - 05 COULD BE ADDED. THE COMMISSIONER OF INCOME TAX (APPEALS) ACCEPTED THE CONTENTIONS OF ASSESSEE AND DELETED THE ADDITION OF RS.35,22,435/ - MADE DURING ASSESSMENT PROCEEDINGS. AGAINST THE FINDINGS OF COMMISSIONER OF INCOME TAX (APPEALS), DEPARTMENT IS IN APPEAL BEFORE THE TRIBUNAL. 4. SHRI NIKHIL PATHAK APPEARING ON BEHALF OF ASSESSEE SUBMITTED AT THE OUTSET THAT SIMILAR ADDITIONS WERE MADE BY THE ASSESSING OFFICER ON THE BASIS OF STATEME NT MADE BY SHRI B.A. RUPNAR IN THE CASE OF STEEL VISION INDIA PVT. LTD . I N FIRST APPELLATE PROCEEDINGS, COMMISSIONER OF INCOME TAX (APPEALS) DELETED THE ADDITION . THE DEPARTMENT CARRIED THE MATTER IN APPEAL BEFORE TRIBUNAL VIDE ITA NO.488/PUN/2015 FOR ASSESSMENT YEAR 2005 - 06. THE TRIB UNAL VIDE ORDER DATED 26.05.2017 UPHELD THE FINDINGS OF COMMISSIONER OF INCOME TAX (APPEALS). 4.1 THE LD. AR FURTHER STATED THAT IN THE CASE OF SHRI RA JABHAU ANANDA RUPNAR SIMILAR ADDITIONS WERE MADE BY ASSESSING OFFICER IN ASSESSMENT YEAR 2005 - 06. THE C OMMISSIONER OF INCOME TAX (APPEALS) DELETED THE ADDITIONS. THE DEPARTMENT CARRIED THE MATTER IN APPEAL BEFORE TRIBUNAL VIDE ITA NO.654/PUN/2015 AND CO - ORDINATE BENCH OF TRIBUNAL UPHELD THE FINDINGS OF COMMISSIONER OF INCOME TAX (APPEALS) AND DISMISSED THE APPEAL OF REVENUE. THE LD. A.R. PRAYED THAT SINCE THE CO - ORDINATE BENCH OF TRIBUNAL HAS CONFIRMED THE ACTION OF COMMISSIONER OF INCOME TAX (APPEALS) IN DELETING THE ADDITIONS MADE IN SIMILAR FASHION IN THE CASES OF GROUP CONCERN S/MEMBERS, THE ADDITION MADE BY ASSESSING OFFICER IN THE PRESENT CASE MAY ALSO BE DELETED. 4 ITA NO. 480/PUN/2015 A.Y.2005 - 06 5. ON THE OTHER HAND, SHRI AJAY MODI REPRESENTING THE DEPARTMENT VEHEMENTLY SUPPORTED THE FINDINGS OF ASSESSING OFFICER AND PRAYED FOR REVERSING THE FINDINGS OF COMMISSIONER OF I NCOME TAX (APPEALS). THE LD. DR SUBMITTED THAT IT IS NOT EMANATING FROM RECORDS AS TO WHETHER THE AMOUNT OFFERED BY SHRI B.A. RUPNAR IS INCLUSIVE OF OPENING BALANCE AS ON 01.04.2004 ON ACCOUNT OF BOGUS PURCHASES OR IT IS AN AFTERTHOUGHT TO REDUCE TAX LIABILITY. HO WEVER, THE LD. DR FAIRLY ADMITTED THAT IN THE CASES OF GROUP ENTITIES, THE CO - ORDINATE BENCH OF TRIBUNAL CONFIRMED THE ACTION OF COMMISSIONER OF INCOME TAX (APPEALS) IN DELETING SUCH ADDITION S . 6. BOTH SIDES HEARD. ORDERS OF THE AUTHORITIES BELOW PERUSED. THE SOLITARY ISSUE RAISED BY DEPARTMENT IN APPEAL IS AGAINST THE ACTION OF COMMISSIONER OF INCOME TAX (APPEALS) IN DELETING THE ADDITION OF RS.35,22,435/ - I.E. DIFFERENCE BETWEEN ADDITIONAL INCOME DECLARED IN THE STATEMENT MADE BY SHRI B.A. RUPNAR AND ADD ITIONAL INCOME OFFERED IN STATEMENT MADE BY SHRI B.A. RUPNAR AND ADD ITIONAL INCOME OFFERED IN RETURN OF INCOME IN RESPONSE TO NOTICE U/S. 148 OF THE ACT. WE FIND THAT IN THE CASES OF OTHER GROUP CONCERN/MEMBERS, SIMILAR ADDITIONS WERE MADE BY THE ASSESSING OFFICER. IN THE FIRST APPELLATE PROCEEDINGS, THE COMMISSIONER OF IN COME TAX (APPEALS) DELETED THE ADDITIONS ON THE PREMISE THAT ADDITIONAL INCOME OFFERED ON ACC OUNT OF BOGUS PURCHASES INCLUDES OPENING BALANCE AS ON 01.04.2004. THE TRIBUNAL HAS UPHELD THE FIND INGS OF COMMISSIONER OF INCOME T AX (APPEALS) IN THE CASES OF OTH ER GROUP CONCERN VIZ. DCIT VS. STEEL VISION INDIA PVT. LTD. (SUPRA) AND DCIT VS. SHRI RAJABHAU ANANDA RUPNAR (SUPRA) IN DELET ING TH E ADDITIONS. SINCE THE FACTS IN THE PRESENT CASE ARE IDENTICAL, WE FIND NO REASON TO TAKE A DIFFERENT VIEW . A CCORDINGLY, THE FINDINGS OF COMMISSIONER OF INCOME TAX (APPEALS ) ARE UPHELD AND THE APPEAL OF REVENUE IS DISMISSED . 5 ITA NO. 480/PUN/2015 A.Y.2005 - 06 7. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSED. ORDER PRO NOUNCED ON WEDNESDAY , THE 24TH DAY OF JANUARY , 201 8 . SD/ - SD/ - ( . / D. KARUNAKARA RAO ) ( /VIKAS AWASTHY) / ACCOUNTANT MEMBER / JUDICIAL MEMBER / PUNE; / DATED : 24 TH JANUARY , 201 8 . SB / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT. 2. / THE RESPONDENT. 3. THE CIT (APPEALS) - 12, PUNE. 4. THE CIT (CENTRAL) PUNE. 5 . , , , / DR, ITAT, A BENCH, PUNE. 6 . / GUARD FILE. / / TRUE COPY / / / BY ORDER, / PRIVATE SECRETARY , / ITAT, PUNE .