RHEEMA HASSAN ALI KHAN, MUMBAI V. ASST CIT CEN CIR 2, MUMBAI

ITA 4997/MUM/2013

• Counselvise Citation: [2015] 121 COUNSELVISE.COM (IT) 0657 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 10 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-05-2015
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: D
• Next Hearing Date: 11-02-2015
• Assessment Year: 2009-2010
• Appeal Filed On: 02-07-2013
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: LOVE KUMAR
• Keywords: Onus to prove
• Section: 143(3)

Judgement Text

D IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH, MUMBAI BEFORE SHRI D. MANMOHAN, V.P. AND SHRI R.C. SHARMA, ACCOUNTANT MEMBER ./ I.T.A. NO. 4997 /MUM/2013 ( / ASSESSMENT YEAR 2009-10) MRS. RHEEMA HASSAN ALI KHAN, 39C, 4 TH FLOOR, ANAND DARSHAN CO-OP. SOCIETY, 13, PEDDAR ROAD, MUMBAI 400 026. / VS. ACIT CENTRAL CIRCLE - 2, OLD CGO ANNEX. BLDG., M.K. ROAD, MUMBAI 400 020. ./ PAN : AOMPK8156M ( / APPELLANT ) .. ( / RESPONDENT ) A PPELLANT BY NONE R E SPONDENT BY : SHRI LOVE KUMAR / DATE OF HEARING : 27-05-2015 / DATE OF PRONOUNCEMENT : 27-05-2015 [ !' / O R D E R PER R.C. SHARMA, AM : THIS IS AN APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF LD. CIT(A) -36 MUMBAI DATED 20-3-2013 FOR A.Y. 2009 -10 IN THE MATTER OF ORDER PASSED U/S 143(3) OF THE INCOME TAX ACT, 1961 . 2. AT THE TIME OF HEARING, NOBODY FROM ASSESSEES S IDE HAS APPEARED INSPITE OF NOTICE SERVED THROUGH REGISTERED A/D. WE FOUND THAT ON EARLIER OCCASION ALSO APPEAL WAS FIXED FOR HEARING ON 27-10 -2014, HOWEVER, NOBODY APPEARED ON BEHALF OF THE ASSESSEE, HENCE, HEARING WAS ADJOURNED. UNDER THESE CIRCUMSTANCES, THE BENCH DECIDED TO DISPOSE O F THE APPEAL AFTER HEARING THE LD. D.R. AND CONSIDERING THE MATERIAL PLACED ON RECORD. ITA 4997/M/13 2 3. FROM THE RECORD, WE FOUND THAT THE ASSESSEE HAS SET OFF LOSS OF RS. 4,52,463/- INCURRED IN THE ACTIVITY OF OWNING AND M AINTAINING RACE HORSES AGAINST THE INCOME FROM OTHER ACTIVITY OF BETTING O N HORSES (SPECULATION IN NATURE) AND INTEREST INCOME. THE A.O. DENIED THE SE T OFF BY OBSERVING AS UNDER:- THE INCOME FROM THE ACTIVITY OF OWNING AND MAINTAI NING HORSE RACES IS DIFFERENT FROM THE INCOME FROM BETTING ON RACE HORS ES AS THE INCOME FROM BETTING ON RACE HORSES IS IN THE NATURE OF SPE CULATION BUSINESS AND CANNOT BE SET OFF AGAINST THE INCOME FROM ACTIV ITY OF OWNING AND MAINTAINING RACE HORSES, WHICH IS RECEIVED IN THE F ORM OF STAKE MONEY, BONUS AND SUBSIDY RECEIVED FROM RWITC LTD. 4. THE A.O. ALSO MADE AN ADDITION OF RS. 2,95,000/- AF TER OBSERVING AS UNDER:- IT IS SEEN FROM THE PERUSAL OF INFORMATION PROVIDE D BY ROYAL WESTERN INDIA TURF CLUB LTD., MUMBAI VIDE THEIR LET TER DT. 22.09.2011 THAT AN AMOUNT OF RS. 2,95,000/- IS SHOWN TO BE DEP OSITED INTO THE ACCOUNT OF ASSESSEE MAINTAINED WITH ROYAL WESTERN I NDIA TURF CLUB LTD., MUMBAI. HOWEVER, THE SAME HAS NOT BEEN DISCLO SED BY THE ASSESSEE IN THE PROFIT AND LOSS ACCOUNT FILED FOR T HE YEAR ENDED 31.03.2009. THEREFORE, THE AMOUNT OF RS.2,95,OOOI- IS TREATED AS UNDISCLOSED RECEIPTS IN THE HANDS OF THE ASSESSEE A ND ADDED BACK TO THE TOTAL INCOME OF THE ASSESSEE. HAVING REGARD TO THE NATURE OF DISALLOWANCES REFERRED TO ABOVE, I AM SATISFIED THA T THE ASSESSEE HAS CONCEALED PARTICULARS OF HIS INCOME AND FURNISHED I NACCURATE PARTICULARS WITHIN THE MEANING OF SECTION 271(1)(C) OF THE I.T. ACT. ACCORDINGLY, PENALTY PROCEEDINGS U/S. 271(1)(C) R.W .S. 274 ARE BEING INITIATED SEPARATELY. 5. THE A.O. ALSO MADE ADDITION OF RS. 6,39,702/- ON AC COUNT OF CESSATION OF LIABILITY AFTER OBSERVING AS UNDER:- THE ASSESSEE HAS SHOWN FOLLOWING LIABILITIES UNDER THE HEAD SUNDRY CREDITORS IN THE BALANCE SHEET FILED BY HIM FOR THE YEAR UNDER CONSIDERATION: I. SUNDRY CREDITORS (IN BALANCE SHEET FOR RACING A/C)- RS. 6,13,968 II. SUNDRY CREDITORS (IN BALANCE SHEET FOR GENERAL A/C) -RS.25,734/- THESE ARE OLD LIABILITIES OUTSTANDING FOR A LONG TI ME AND THE ASSESSEE HAS NOT FILED ANY DETAILS W.R.T THESE. NO DETAILS WHATSOEVER WERE FILED TO ESTABLISH THAT THESE ARE STIII PAYABL E AND EVEN THE NAME, ADDRESS OF THE SUNDRY CREDITORS WERE NOT FILED SO T HAT INDEPENDENT ITA 4997/M/13 3 ENQUIRIES COULD NOT BE MADE. THE ASSESSEE HAS CLEAR LY FAILED TO DISCHARGE HIS ONUS TO PROVE THAT THE THERE IS NO CE SSATION OR REMISSION OF THE LIABILITIES AS OCCURRING IN THE BALANCE SHEE T THEREFORE, IN VIEW OF THE ABOVE, THE LIABILITIES AMOUNTING TO RS. 6,39,70 2/- ARE ADDED BACK TO THE TOTAL INCOME AS CESSATION OR REMISSION OF LIABI LITY. 6. BY THE IMPUGNED ORDER, THE LD. CIT(A) CONFIRMED THE ADDITIONS BY RECORDING DETAIL FINDINGS. NOTHING WAS PLACED BEFO RE US SO AS TO PERSUADE US TO DEVIATE FROM THE CONCLUSION ARRIVED AT BY THE LO WER AUTHORITIES. ACCORDINGLY, WE DISMISS THE APPEAL FILED BY THE ASS ESSEE. 7. IN THE RESULT, APPEAL OF THE ASSESSEE IS DISMISS ED. ORDER PRONOUNCED IN THE OPEN COURT ON 27 TH JULY, 2015. !' # $% &! ' 27 TH JULY, 2015 ( ) SD/- SD/- (D. MANMOHAN) (R.C. SHARMA) VICE PRESIDENT ACCOUNTANT MEMB ER $ 4 MUMBAI ; &! DATED 8-7-2015 .<../ RK RKRK RK , SR. PS ! '#$% &%# / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. = () / THE CIT(A) 36, MUMBAI 4. = / CIT -CENTAL -!,MUMBAI 5. @A( <