Ranjit Kumar Jain, Visakhapatnam V. The Assistant Commissioner of Income Tax, Centeral Circle-1, Visakhapatnam

ITA 568/VIZ/2019

• Counselvise Citation: [2019] 114 COUNSELVISE.COM (IT) 2243 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 1 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-11-2019
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: DB
• Assessment Year: 2016-2017
• Appeal Filed On: 01-10-2019
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: T.S.N. MURTHY
• Keywords: Search and seizure; Application of stay
• Section: 132; 201; 69A; 20

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM BENCH, VISAKHAPATNAM BEFORE SHRI V. DURGA RAO , HONBLE JUDICIAL MEMBER & SHRI D.S. SUNDER SINGH , HONBLE ACCOUNTANT MEMBER S.A.NO. 67/VIZ/2019 AND ITA NO. 568 / VIZ /201 9 (ASST. YEAR : 20 1 6 - 1 7 ) RANJIT KUMAR JAIN, D.NO. 50 - 50 - 38/9 , TPT COLONY, SEETHAMMADHARA, VISAKHAPATNAM . V S . A CIT, CENTRAL CIRCLE - 1 , VISAKHAPATNAM. PAN NO. ABEPJ 9099 F (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI G.V.N. HARI ADV OCATE . DEPARTMENT BY : SHRI T.S.N. MURTHY SR. DR SMT. SUMAN MALIK SR.DR DATE OF HEARING : 18 / 1 1 /201 9 . DATE OF PRONOUNCEMENT : 20 / 1 1 /201 9 . O R D E R PER V. DURGA RAO , JUDICIAL MEMBER BY FILING THIS STAY APPLICATION, ASSESSEE SEEKS DIRECTION TO THE ASSESSING OFFICER TO REFUND THE AMOUNT PAID TOWARDS OUTSTANDING DEMAND . TH E ASSESSEE ALSO FILED THIS APPEAL AGAINST THE ORDER OF COMMISSIONER OF INCOME TAX (APPEALS) - 3 , VISAKHAPATNAM , DATED 1 4 /0 7 /201 9 FOR THE ASSESSMENT YEAR 201 6 - 1 7 . 2 ITA NO. 568/VIZ/2019 S.A.NO.67/VIZ/2019 ( RANJIT KUMAR JAIN ) 2. GROUND NOS. 1 & 4 ARE GENERAL IN NATURE, NO ADJUDICATION IS REQUIRED, THEREFORE SAME ARE DISMISSED. GROUND NO.3 IS CONSEQUENTIAL IN NATURE , NO SEPARATE ADJUDICATION IS REQUIRED, THEREFORE SAME IS DISMISSED . THE ONLY GROUND FOR ADJUDICATION BEFORE US IS GROUND NO.2, WHICH IS AS FOLLOWS: - 2. THE LD. CIT(A) IS NOT JUSTIFIED IN PARTLY SUSTAINING TO THE EXTENT OF RS. 22,99,813/ - ADDITION MADE BY THE ASSESSING OFFICER TOWARDS UNEXPLAINED JEWELLERY AND SILVER ARTI CLES. RS. 7,10,642/ - 3 . IN THIS CASE, A SEARCH AND SEIZURE OPERATION U/SEC. 132 WAS CONDUCTED ON 24/11/2015 IN THE BUSINESS PREMISES OF THE ASSESSEE . DURING THE COURSE OF SEARCH PROCEEDINGS , IT WAS FOUND THAT ASSESSEE WAS IN POSSESSION OF GOLD JEWELLERY WEIGHTING 1860 GRAMS . THE ASSESSING OFFICER HAS MADE THE ENTIRE ADDITION IN THE HANDS OF THE ASSESSEE U/SEC. 69A OF THE ACT ON THE GROUND OF UNEXPLAINED MONEY . 4 . ON APPEAL , THE LD. CIT(A) HAS GIVEN RELIEF TO THE EXTENT OF 50% . 5. AGGRIEVED BY THE ORDER OF THE LD. CIT(A), THE ASSESSEE IS IN APPEAL BEFORE THIS TRIBUNAL. 6 . BEFORE US, LD. COUNSEL FOR THE ASSESSEE HAS SUBMITTED THAT ASSESSEE IS HAVING WIFE, TWO DAUGHTERS AND MOTHER. ACCORDING TO 3 ITA NO. 568/VIZ/2019 S.A.NO.67/VIZ/2019 ( RANJIT KUMAR JAIN ) THE ASSESSEE , WIFE SHOULD BE GIVEN 500 GRAMS, TWO DA UGHTERS SHOULD BE GIVEN 100 GRAMS EACH , MOTHER SHOULD BE GIVEN 500 GRAMS AND ASSESSEE SHOULD BE GIVEN 100 GRAMS , TOTALLING TO 1300 GRAMS. THE ONLY ADDITION HAS TO BE MADE ON THE REMAINING 560 GRAMS (1860 GRAMS 1300 GRAMS) . 7 . LD.DR STRONGLY SUPPORTED THE ORDERS OF THE AUTHORITIES BELOW. 8 . WE HAVE HEARD BOTH THE SIDES AND PERUSED THE MATERIAL AVAILABLE ON RECORD. WE FIND THA T AS PER CBDT INSTRUCTION NO. 1916 , DATED 11.05.1994 , THE ASSESSEE IS ENTITLED FOR EXEMPTION TO THE EXTENT OF 1300 GRAMS. THEREFORE, TAKING INTO CONSIDERATION OF TOTAL GOLD JEWELLERY FOUND DURING THE COURSE OF SEARCH , 560 GRAMS (1860 GRAMS 1300 GRAMS) HAS TO BE CONSIDERED FOR ADDITION. ACCORDINGLY, WE DIRECT THE ASSESSING OFFICER TO CONSIDER THE ADDITION ON 560 GRAMS. THUS, THIS APPEAL FILED BY THE ASSESSEE IS PARTLY ALLOWED. 9 . SO FAR AS STAY APPLICATION FILED BY THE ASSESSEE IS CONCERNED, AS WE HAVE DISPOSED OF THE ASSESSEES APPEAL (SUPRA) , THE STAY APPLICATION FILED BY THE ASSESSEE HAS BECOME INFRUCTUOUS AND IS DISMISSED ACCORDINGLY. 4 ITA NO. 568/VIZ/2019 S.A.NO.67/VIZ/2019 ( RANJIT KUMAR JAIN ) 10 . IN THE RESULT, APPEAL FILED BY THE ASSESSEE IS PARTLY ALLOWED AND THE S.A. IS DISMISSED. ORDER PRONOUNCED IN OPEN COURT ON TH IS 2 0 T H DAY OF NOV . , 201 9 . S D / - S D / - (D.S. SUNDER SINGH) (V. DURGA RAO) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 2 0 T H NOVEMBER , 201 9 . VR/ - COPY TO: 1. THE ASSESSEE RANJIT KUMAR JAIN, D.NO. 50 - 50 - 38/9, TPT COLONY, SEETHAMMADHARA, VISAKHAPATNAM. 2. THE REVENUE ACIT, CENTRAL CIRCLE - 1, VISAKHAPATNAM. 3. THE PR. CIT (CENTRAL), VISAKHAPATNAM. 4. THE CIT(A) - 3, VISAKHAPATNAM. 5. THE D.R . , VISAKHAPATNAM. 6. GUARD FILE. BY ORDER (VUKKEM RAMBABU) SR. PRIVATE SECRETARY, ITAT, VISAKHAPATNAM.