PANKAJ ENTERPRISES, MUMBAI V. ASSISTANT COMMISSIONER OF INCOME TAX 25(3), MUMBAI

ITA 604/MUM/2018

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 2180 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 4 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-06-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2013-2014
• Appeal Filed On: 01-02-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ARIVIND KUMAR
• Assessee Lawyers: SHANKARLAL JAIN
• Keywords: Loose papers
• Section: 69C; 143(3); 133A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, MUMBAI BENCH C, MUMBAI BEFORE SHRI MAHAVIR SINGH, JUDICIAL MEMBER AND SHRI RAJESH KUMAR, ACCOUNTANT MEMBER ITA NO.604/M/2018 ASSESSMENT YEAR: 2013-14 M/S. PANKAJ ENTERPRISES, C/O. SHANKARLAL JAIN & ASSOCIATES LLP, 12, ENGINEER BUILDING, 265, PRINCESS STREET, MUMBAI-400 002 PAN: AACFP 3044K VS. ACIT 25(3), PRATYAKSHA KAR BHAVAN, BANDRA KURLA COMPLEX, BANDRA (E), MUMBAI - 400051 (APPELLANT) (RE SPONDENT) PRESENT FOR: ASSESSEE BY : SHRI SHANKARLAL JAIN, A.R. REVENUE BY : SHRI ARIVIND KUMAR, D.R. DATE OF HEARING : 17.06.2019 DATE OF PRONOUNCEMENT : 25.06.2019 O R D E R PER RAJESH KUMAR, ACCOUNTANT MEMBER: THE PRESENT APPEAL HAS BEEN PREFERRED BY THE ASSES SEE AGAINST THE ORDER DATED 18.04.2016 OF THE COMMISSIO NER OF INCOME TAX (APPEALS) [HEREINAFTER REFERRED TO AS TH E CIT(A)] RELEVANT TO ASSESSMENT YEAR 2013-14. 2. THE ONLY ISSUE RAISED BY THE ASSESSEE IN THE VAR IOUS GROUNDS OF APPEAL IS AGAINST THE CONFIRMATION OF AD DITION OF RS.19,54,500/- MADE BY THE AO UNDER SECTION 69C OF THE ACT BASED UPON THE IMPOUNDED MATERIAL DURING THE COURSE OF SURVEY UNDER SECTION 133A OF THE ACT. ITA NO.604/M/2018 M/S. PANKAJ ENTERPRISES 2 3. THE FACTS IN BRIEF ARE THAT A SURVEY WAS CONDUCT ED ON THE ASSESSEE ON 21.11.2012 AT THE BUSINESS PREMISES OF THE ASSESSEE AND SOME DOCUMENTS, LOOSE PAPERS WERE FOUN D AND IMPOUNDED IN WHICH VARIOUS ENTRIES WERE FOUND TO B E RECORDED, THE DETAILS WHEREOF ARE GIVEN AT PARA 5.3 OF THE AS SESSMENT ORDER AGGREGATING TO RS.19,54,500/- WHICH COULD NOT BE EX PLAINED SATISFACTORILY BY THE ASSESSEE AND FINALLY THE SAME WERE ADDED TO THE INCOME OF THE ASSESSEE UNDER SECTION 69C OF THE ACT BY FRAMING ASSESSMENT UNDER SECTION 143(3) DATED 30.03 .2015. 4. IN THE APPELLATE PROCEEDINGS ALSO THE LD. CIT(A) AFFIRMED THE ORDER OF AO AFTER TAKING THE SUBMISSIONS AND CO NTENTIONS OF THE ASSESSEE BY HOLDING AS UNDER: 5.3 I HAVE DULY CONSIDERED THE SUBMISSIONS MADE BY THE APPELLANT AND THE FACTS FOUND BY AO IN THE ASSESSMENT ORDER SHRI SURESH PAT EL HAS SUBMITTED DURING THE APPELLATE PROCEEDINGS THAT THESE IMPOUNDED DOCUMENT S CONTAINED ROUGH NOTINGS AND WERE NOT ON REGULAR BOOKS OF ACCOUNTS. CERTAIN EXPENDITURES WERE OF CAPITAL NATURE AND DULY REFLECTED IN THE BOOKS OF ACCOUNTS OF THE CONCERNS. THE IMPOUNDED DOCUMENTS CONTAINED EXPENDITURE AS WELL AS RECEIPTS . HOWEVER, SHRI SURESH PATEL, WHO IS ALSO A PARTNER OF THE FIRM, FAILED TO PRODUC E EVIDENCES TO SUBSTANTIATE THE CLAIM THAT ALL THE INCOMES AND EXPENSES WERE INCURR ED OUT OF EXPLAINED SOURCES. IN VIEW OF LACK OF ANY SUCH PROOF BEING PRODUCED EVEN IN APPELLATE PROCEEDINGS, NO FAULT CAN BE FOUND IN THE FINDINGS RECORDED IN THE ASSESSMENT ORDER. GROUND NOS.1 TO 3 STAND REJECTED. 5. AFTER HEARING BOTH THE PARTIES AND PERUSING THE MATERIAL ON RECORD, WE OBSERVE THAT A SURVEY U/S 133A OF THE AC T WAS CONDUCTED ON THE ASSESSEE AND THE AO HAS MADE ADDIT ION OF RS. 19,54,500/-ON THE BASIS OF NOTINGS IN THE LOOSE SH EETS AS FOUND DURING THE SURVEY WHICH WERE STATED TO BE IN RESPEC T OF CASH RECEIPTS AND EXPENSES. THE LD CIT(A) ALSO AFFIRMED THE ORDER OF AO ON THE GROUND THAT NO DETAILS OR EVIDENCES WERE PRODUCED IN THE APPELLANT PROCEEDINGS TO SUBSTANTIATE THAT INCO MES AND EXPENSES WERE OUT OF EXPLAINED SOURCES. THE ASSESSE E HAS FURNISHED VARIOUS EVIDENCES BEFORE US WHICH IN OUR OPINION ITA NO.604/M/2018 M/S. PANKAJ ENTERPRISES 3 NEEDS VERIFICATION AT THE LEVEL OF AO AND THEREFOR E THE CASE IS RESTORED TO THE FILE OF THE AO WITH THE DIRECTION T O EXAMINE AND DECIDE THE SAME AS PER FACTS AND LAW AFTER AFFORDIN G A REASONABLE OPPORTUNITY TO THE ASSESSEE. 6. THE APPEAL OF THE ASSESSEE IS ALLOWED FOR STATIS TICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 25.06.2019. SD/- SD/- (MAHAVIR SINGH) (RAJESH KUMAR) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI, DATED: 25.06.2019. * KISHORE, SR. P.S. COPY TO: THE APPELLANT THE RESPONDENT THE CIT, CONCERNED, MUMBAI THE CIT (A) CONCERNED, MUMBAI THE DR CONCERNED BENCH //TRUE COPY// [ BY ORD ER DY /ASSTT. REGISTRAR, ITAT, MUMBAI.