NAZNEEN SAGIR DOND, THANE V. DCIT CEN CIR-2, THANE

ITA 4928/MUM/2008

• Counselvise Citation: [2013] 120 COUNSELVISE.COM (IT) 3682 (ITAT-MUMBAI)
• Duration Of Justice: 4 year(s) 9 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-05-2013
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: SMC
• Next Hearing Date: 21-02-2013
• Assessment Year: 2001-2002
• Appeal Filed On: 05-08-2008
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: PRITAM SINGH
• Assessee Lawyers: SAGIR M DOND
• Keywords: Unexplained investment; Search and seizure
• Section: 132

Judgement Text

. , IN THE INCOME TAX APPELLATE TRIBUNAL SMC , BENCH MUMBAI , BEFORE SHRI R. K. GUPTA , JM ITA NO S . 4926 TO 4931 / MUM/ 20 08 ( A SSESSMENT YEAR S : 1999 - 2000, 2000 - 01, 20 01 - 02, 20 02 - 03, 20 03 - 04 & 2004 - 05) MRS. NAZNEEN SAGIR DOND, 214, 4 TH NIZAMPURA, BHIWANDI, DISTRICT THANE (MAHARASHTRA) - 421 302 VS. DCIT, CENTRAL CIRCLE - 2, THANE (MAHARASHTRA) PAN/GIR NO. : ADNPD 2680 D ( APPELLANT ) .. ( RESPONDENT ) /ASSESSEE BY : SHRI SAGIR M. DOND /REVENUE BY : SHRI PRITAM SINGH DATE OF HEARING : 10 TH APRIL , 201 3 DATE OF PRONOUNCEMENT : 8 TH MAY , 2013 O R D E R TH ESE SIX APPEALS HAVE BEEN PREFERRED BY THE ASSESSEE AGAINST THE ORDER OF LEANED CIT(A) - I , THANE (MAHARASHTRA) RELA TING TO THE ASSESSMENT YEAR S 1999 - 2000, 2000 - 01, 2 001 - 02, 2002 - 03, 2003 - 04 & 2004 - 05 . 2 . SINCE COMMON ISSUES ARE INVOLVED IN ALL THE CASES, THEREFORE, FOR THE SAKE OF CONVENIENCE, ALL THESE CASES HAVE BEEN HEARD AND DISPOSED OF BY THIS CONSOLIDATED ORDER. ITA NO S . 4926 TO 4931 /20 08 2 3 . FACTS GIVING RISE TO ALL THESE APPEALS ARE TH AT A SEARCH AND SEIZURE OPERATION UNDER SECTION 132 OF THE ACT WAS CONDUCTED ON 24 - 3 - 2005. RETURN FOR THE BLOCK PERIOD WERE FILED OFFERING RS. 60,000/ - OF INCOME IN EACH YEAR. THE AO BY NOTHING THAT THERE ARE CERTAIN NEW BUFFALOS DURING THE BLOCK PERIOD WER E PURCHASED AND NO INVESTMENT HAS BEEN EXPLAINED. THE AO ALSO NOTED THAT THE ASSESSEE IS NOT KEEPING ANY ACCOUNT OF ITS INCOME OR EXPENDITURE ON ACCOUNT OF MILK PROCURED FROM BUFFALOS AND COWS. DISCUSSING THE ISSUE IN DETAIL AND PLACING RELIANCE ON THE REP ORT NILEGEKAR COMMITTEE DATED 19 - 2 - 1982 , CONSTITUTED BY THE GOVERNMENT OF MAHARASHTRA, FOUND THAT THE ASSESSEE HAS SUPPRESSED THE SALE CONSIDERATION. THEREFORE, AFTER REJECTING THE BOOKS OF ACCOUNTS, THE AO APPLIED 21% OF PROFIT ON SALE PRICE AND MADE ADDI TIONS IN EACH OF THE YEAR PERTAINING TO BLOCK PERIOD. THE TOTAL INCOME WAS COMPUTED AT RS. 24,35,399/ - , BESIDES UNEXPLAINED INVESTMENT OF RS.3,50,000/ - . 4 . BEING AGGRIEVED WITH THE ADDITIONS MADE BY THE AO, THE ASSESSEE PREFERRED APPEAL S BEFORE THE CIT(A ) , WHO ALLOWED THE APPEALS OF THE ASSESSEE IN PART. IN RESPECT OF ADDITION BY ESTIMATING THE PROFIT AT THE RATE OF 21%, THE CIT(A) ESTIMATED THIS PROFIT AT 10.10%, WHICH RESULTED AN ADDITION OF RS. 9,62,722/ - FOR WHOLE OF THE BLOCK PERIOD I.E. FROM ASSESSME NT YEARS 1999 - 2000 TO 2005 - 0 6 . LEARNED CIT(A) REDUCED THE PROFIT FOR THE REASONING THAT THE AO HAS PLACED ITA NO S . 4926 TO 4931 /20 08 3 RELIANCE ON THE NILEGEKAR COMMITTEE REPORT, WHICH WAS GIVEN IN THE YEAR OF 1982, HOWEVER, THE BLOCK PERIOD CONSISTING OF 7 YEARS I.E. FROM ASSESSMENT YEARS 1999 - 2000 TO 2005 - 06, THEREFORE, HE UPGRADED THE COMMITTEES REPORT FOR THE BLOCK PERIOD BY WHICH PROFIT COMES TO 10.10% AND REDUCED THE ADDITION. LEARNED CIT(A) ALSO DELETED THE ADDITION MADE ON ACCOUNT OF UNEXPLAINED INVESTMENT IN BUYING BUFFALO S DURING THE BLOCK PERIOD. THE ADDITION WAS REDUCED TO RS. 75,470/ - FOR ASSESSMENT YEAR 2001 - 02 AS THE REMAINING ADDITION WAS FOUND COVERED BY THE ADDITION SUSTAINED BY THE CIT(A) BY ESTIMATING THE PROFIT @ 10.10%. 5 . NOW, THE ASSESSEE IS IN APPEALS FOR T HE RELEVANT ASSESSMENT YEARS HERE BEFORE THE TRIBUNAL. 6 . ON EARLIER OCCASION, APPEALS OF THE ASSESSEE WERE DECIDED TWICE, HOWEVER, ON ACCOUNT OF MISCELLANEOUS APPLICATION FILED BY THE ASSESSEE AND THE DEPARTMENT, ORDERS OF THE TRIBUNAL WAS RECALLED AGAI N. NOW, THESE APPEALS ARE REFIXED FOR HEARING . D URING THE COURSE OF HEARING OF THE PRESENT APPEALS, THE HUSBAND OF THE ASSESSEE SHRI SAGIR M. DOND, WHO APPEARED ON BEHALF OF HIS WIFE, REQUESTED THE TRIBUNAL THAT HE MAY BE PERMITTED TO WITHDRAW THESE APPEAL S AS HE WANTS TO BUY PEACE AND TO AVOID THE PROLONGED LITIGATION. IT WAS ALSO SUBMITTED BY HIM THAT HE WAS NOT ADVISED PROPERLY AND TO AVOID ANY PENAL ACTIONS, THESE APPEALS WERE FILED. HOWEVER, IT WAS SUBMITTED THAT SINCE ADDITION ITA NO S . 4926 TO 4931 /20 08 4 HAS BEEN SUSTAINED ON TH E BASIS OF ESTIMATED PROFIT, THEREFORE, HE WANTS TO WITHDRAW THESE APPEALS. 7 . IN VIEW OF THE AFORESAID FACTS AND CIRCUMSTANCES OF THE CASE, ALL THE APPEALS FILED BY THE ASSESSEE ARE DISMISSED AS WITHDRAWN. 8 . IN THE RESULT, ALL THE APPEALS OF THE ASSESSE E ARE DISMISSED . ORDER PRONOUNCED IN THE OPEN COURT ON THIS 8 TH DAY OF M AY .2013 201 3 SD/ - ( ) ( R.K.GUPTA ) / JUDICIAL MEMBER MUMBAI ; DATED : 0 8/05 /2013 /PKM , PS COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RES PONDENT. 3. / THE CIT(A) , MUMBAI. 4. / CIT 5. / DR, ITAT, MUMBAI 6. GUARD FILE. //TRUE COPY// / BY ORDER, ( ASSTT. REGISTRAR) / ITAT, MUMBAI