THE ITO WD 23(2)(4), MUMBAI V. M/S. M.R. INDUSTRIES, MUMBAI

ITA 6132/MUM/2007

• Counselvise Citation: [2017] 126 COUNSELVISE.COM (IT) 9418 (ITAT-MUMBAI)
• Duration Of Justice: 9 year(s) 11 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-09-2017
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: H
• Next Hearing Date: 21-06-2017
• Assessment Year: 2003-2004
• Appeal Filed On: 03-10-2007
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: M C OMI NINGSHEN

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH H MUMBAI BEFORE SHRI SAKTIJIT DEY (JUDICIAL MEMBER) AND SHRI N.K. PRADHAN (ACCOUNTANT MEMBER) ITA NO. 6132/MUM/2007 ASSESSMENT YEAR: 2003 - 04 ITO - 23(2)(4) 2 ND FLOOR, PRATYAKSHAKAR BHAVAN BKC, BANDRA (E) MUMBAI VS. M.R. INDUSTRIES RAW HOUSE NO.4, AFGA R.P. ROAD, NEAR VARDHAMAN NAGAR MULUND (W) MUMBAI - 400080. PAN NO. AAC FM 7019B APPELLANT RESPONDENT REVENUE BY : MR. M.C. OMI NINGSHEN , DR ASSESSEE BY : NONE DATE OF HEARING : 21 /06/2017 DATE OF PRONOUNCEMENT : 18/09/2017. ORDER PER N.K. PRADHAN, A.M. THIS IS AN APPEAL FILED BY THE REVENUE . THE RELEVANT ASSE SSMENT YEAR IS 2003 - 04 . THE APPEAL IS DIRECTED AGAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS) - XXIII , MUMBAI AND ARISES OUT OF THE ASSESSMENT COMPLETED U/S 143(3 ) R.W.S. 147 OF THE INCOME TAX ACT 1961, (T HE ACT). 2. WE FIND FROM THE PERUSAL OF THE RECORD THAT THERE WAS NO COMPLIANCE BY THE ASSESSEE TO THE HEARING FIXED BEFORE THE TRIBUNAL ON 04.02.2015, 03.08.2015, 07.03.2016, 20.09.2016 AND 21.06.2017. ITA NO. 6132/MUM/2007 2 THEREFORE, WE ARE PROCEEDING TO DISPOSE OFF THE PRESENT APPEAL ON THE BASIS OF DOCUMENTS AVAILABLE ON RECORD AND THE CONTENTIONS OF THE LD. DR. 3. WE FIND THAT IN THE INSTANT CASE THE REVENUE HAD CONDUCTED A SURVEY IN THE BUSINESS PREMISES OF THE ASSESSEE. DURING THE COURSE OF SURVEY, THE ASSESSEE MADE A DECLARATION OF RS.40,00,000/ - . DURING THE COURSE OF ASSESSMENT , THE ASSESSEE MADE A C LAIM OF HAVING DISCLOSED INCOME OF RS.10,00,000/ - . THE AO RELIED ON THE JUDGMENT OF THE HONBLE SUPREME COURT IN THE CASE OF SURJIT SINGH CHABRA VS. UNION OF INDIA 135 TAXATION 711/712 AND BROUGHT TO TAX RS.40,00,000/ - . IN APPEAL, THE LD. CIT(A) ALLOWED RE LIEF OF RS.30,00,000/ - OUT OF SURRENDERED INCOME OF RS.40,00,000/ - FOR THE FY 2002 - 03 RELEVANT TO THE AY 2003 - 04 STATING THAT THERE HAD BEEN NO SPECIFIC FINDING BY THE SURVEY TEAM REGARDING RS.40,00,000/ - . WE FIND THAT THE ABOVE ORDER OF THE LD. CIT(A) I S NOT BASED ON TRUE APPRECIATION OF FACTS AS RS.200,00,000/ - WAS SURRENDERED BY MR. GULAB J. GALA, PARTNER OF THE ASSESSEE - FIRM IN RESPECT OF SEVEN ENTITIES OF WHICH ONE IS THE ASSESSEE - FIRM AND THE SAID RS.40,00,000/ - IS A PART OF THE ABOVE AMOUNT. WE FIND THAT THE AO HAS GIVEN SPECIFIC FINDING ON THE ABOVE IN THE ASSESSMENT ORDER DATED 06.12.2006 PASSED BY HIM. IN VIEW OF THE ABOVE, WE SET ASIDE THE ORDER OF THE LD. CIT(A) AND RESTORE THE ORDER OF THE AO. ITA NO. 6132/MUM/2007 3 4 . IN THE RESULT, THE APPEAL IS ALLOWED . ORDER PRONOUNCED IN THE OPEN COURT ON 18/09/2017. SD/ - SD/ - ( SAKTIJIT DEY ) (N.K. PRADHAN) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI ; DATED:18/09/2017 RAHUL SHARMA, SR. P.S. COPY OF THE ORDER FORWARDED TO : 1. THE APPELLANT 2. THE RESPONDENT. 3. THE CIT(A) - 4. CIT 5. DR, ITAT, MUMBAI 6. GUARD FILE . BY ORDER, //TRUE COPY// (DY./ASSTT. REGISTRAR) ITAT, MUMBAI