Shri Kishor Mohanlal Karia, RAJKOT-GUJARAT V. The Assistant Commissioner of Income Tax, Circle-5, RAJKOT-GUJARAT

ITA 639/RJT/2012

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 76372 (ITAT-RAJKOT)
• Duration Of Justice: 1 year(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-01-2014
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 31-12-2013
• Assessment Year: 2007-2008
• Appeal Filed On: 18-12-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DR J B JHAVERI DR
• Assessee Lawyers: KALPESH DOSHI; G C DOMADIA C AS
• Keywords: Unexplained investment; Gift; Retraction
• Section: 143(3); 133A

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBULAL; RAJKOT BENCH, RAJKOT. BEFORE SHRI T. K. SHARMA JM AND SHRI B. R. JAIN AM ITA NO. 1247/RJT/2010 / ASSESSMENT YEAR 2007-08. M/S M.P. SCRAP TRADERS, DHEBAR ROAD, SOUTH, NEAR WELDOR, ATIKA, RAJKOT. PAN : AADFM5841N ( / APPELLANT V/S THE ASSTT. CIT, CIRCLE-5, RAJKOT. / RESPONDENT ITA NO. 639/RJT/2012 / ASSESSMENT YEAR 2007-08. SHRI KISHOREBHAI MOHANLAL KARIA, C/O M/S M.P. SCRAP TRADERS, DHEBAR ROAD, SOUTH, NEAR WELDOR, ATIKA, RAJKOT. PAN : ADGPK8151R ( / APPELLANT V/S THE ASSTT. CIT, CIRCLE-5, RAJKOT. / RESPONDENT ! ' #$ / ASSESSEES BY SHRI KALPESH DOSHI & SHRI G.C. DOMADIA, C.AS. % ! ' #$ / REVENUE BY DR. J.B. JHAVERI, D.R. # & ' ! ( / DATE OF HEARING 31-12-2013 ) ! ( / DATE OF PRONOUNCEMENT 01-01-2014 / ORDER PER B. R. JAIN, A. M. : THESE TWO APPEALS ARISE FROM THE ORDERS DATED 09/10 /2012 OF SHRI YOGESH PANDEY, LD. COMMISSIONER OF INCOME TAX (APPE ALS)-IV, RAJKOT IN THE CASE OF SHRI KISHORE MOHANLAL KARIA AND ORDER DATED 04 TH AUGUST, 2010 OF SHRI PREM PRAKASH, LD. COMMISSIONER OF INCOME TAX (APPEA LS)-IV, RAJKOT IN THE CASE OF M/S M.P. SCRAP TRADERS FOR THE ASSESSMENT Y EAR 2007-08 BY RAISING GROUNDS IN RESPECTIVE APPEALS AS UNDER: THE GROUNDS OF APPEAL MENTIONED HEREIN UNDER ARE WITHOUT PREJUDICE TO EACH ANOTHER. 1. THAT ORDER OF THE LEARNED CIT(A) IS BAD IN LAW A ND ON THE FACTS OF THE CASE AND IS BASED ON THE SURMISES AND CONJECTUR E ONLY AND WITHOUT CONSIDERING THE FACTS AND SUBMISSION MADE. ITA 1247/RJT/2010 & 639/RJT/2012 2 2. THE LD. CIT(A) ERRED IN LAW IN CONFIRMING ADDITI ON OF RS. 6 LACS AS DISCLOSED IN STATEMENT UNDER SECTION 133A OF THE AC T BUT RETRACTED THEREAFTER. 3. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CAS E, THE LD CIT(A) HAS ERRED IN ENDORSING THE FINDINGS RECORDED BY THE A.O. IN CONNECTION WITH THE RETRACTION ARE PERVERSE AND BEY OND RECORDS. AS IT IS SETTLED LAW THAT CONFESSION MADE BY THE AS SESSEE DURING SURVEY PROCEEDING IS NOT CONCLUSIVE AND IT IS OPEN TO THE ASSESSEE TO ESTABLISH BY FILLING COGENT EVIDENCE. 4. THE ADDITION IN SUB AND SUBSTANCE MADE BY THE A. O. AND CONFIRM BY THE LD. CIT(A) IS CLEARLY NOT SUPPORTED ANY MATE RIAL, WHICH CAN POINT OUT TO UNEXPLAINED INVESTMENT OUTSIDE THE BOO KS OF THE APPELLANT. 5. THAT THE REVENUE IS OF THE VIEW THAT ENTIRE RS. 6 LACS HAS BEEN INVESTED FROM UNDISCLOSED SOURCE. INSPITE OF THE FA CT THAT PROPERLY STANDS ON THE NAME OF TWO PERSONS AND BOTH OF THEM WERE HAVING SHARE IN PROPORTIONATE TO THEIR INVESTMENT IN THE P ROPERTY. 6. WHETHER ON THE FACTS OF THE CASE, THE LD. CIT(A) WAS JUSTIFIED IN ENDORSING THE ORDER OF THE A.O. THAT THE A.O. DISRE GARDED THE BOOKS OF ACCOUNTS PRODUCED BY THE APPELLANT DURING ASSESSMENT PROCEEDINGS U/S 143(3) OF THE ACT AND OTHER PRIMARY RECORDS SOLELY ON THE GROUNDS THAT THE APPELLANT HAD MADE CONFESSI ONAL STATEMENT DURING THE SURVEY PROCEEDINGS. GROUNDS OF ITA NO. 1247/RJT/2010 ARE AS UNDER:- 1. THAT THE LEARNED CIT(A) HAS GROSSLY ERRED ON FA CTS AND IN LAW IN CONFIRMING ACTION OF THE A.O. THAT INCOME ADMITTED DURING THE COURSE OF SURVEY PROCEEDINGS IN THE STATEMENT RECOR DED IS THE INCOME OF THE APPELLANT WITHOUT ANY CORROBORATIVE E VIDENCES. 2. THAT, IN VIEW OF THE SUBMISSION, EVIDENCES AND M ATERIAL PLACED ON RECORDS, THE LEARNED CIT(A) AS WELL AS A.O. WERE NO T JUSTIFIED IN CONSIDERING RS. 7,00,500/- AS UNEXPLAINED CASH AS W ELL AS UNEXPLAINED EXCESS CASH WITHIN THE MEANING OF SECTI ON 69A OF THE I.T. ACT, 1961 AND ADDING IN TOTAL INCOME OF THE AP PELLANT. 3. THAT, LEARNED CIT(A) HAS ERRED IN LAW AND ON FAC TS IN CONFIRMING THE ADDITION IN THE INCOME AT RS. 25,50,320/- U/S 6 9B OF THE I.T. ACT, 1961 ON ACCOUNT OF ALLEGED UNEXPLAINED EXCESS BUSINESS STOCK WAS FOUND DURING SURVEY AND APPELLANT FAILED TO EXPLAIN EXCESS STOCK IN THE HANDS OF THE APPELLANT FIRM AND HAS WRONGLY MADE THE ADDITION TO THE TOTAL INCOME. 4. THAT, THE ORDERS AND FINDING OF THE AUTHORITIES BELOW ARE BASED PURELY ON CONJECTURES, SURMISES, SUSPICIOUS AND HYP OTHESIS AND ARE LIABLE TO BE SET ASIDE. THE FINDING IN CONNECTI ON WITH THE ITA 1247/RJT/2010 & 639/RJT/2012 3 RETRACTION OF ERRONEOUS ADMISSION DURING THE COURSE OF SURVEY IN THE STATEMENT RECORDED ARE NOT JUSTIFIED, IMPROPER AND BAD IN LAW. THUS, THE RETRACTION SHOULD BE CONSIDERED AS VALID AND TRUE. 2. BRIEFLY THE FACTS ARE THAT AN ACTION U/S 133A OF THE I.T. ACT, 1961 (HEREINAFTER TO BE REFERRED AS THE ACT) WAS CARRIED ON 04 TH JANUARY, 2007 AT THE BUSINESS PREMISES OF THE PARTNERSHIP FIRM NAMELY M/ S M.P. SCRAP TRADERS, RAJKOT, IN WHICH, SHRI KISHOREBHAI MOHANLAL KARIA, ONE OF THE APPELLANT, IS ALSO A PARTNER. DURING THE COURSE OF SURVEY PROCEEDINGS, STATEMENT OF SAID SHRI KISHOREBHAI MOHANLAL KARIA WAS TAKEN IN WHICH, FIXE D DEPOSITS AND BANK TRANSACTIONS IN THE NAME OF VARIOUS FAMILY MEMBERS AND PARTNERS FOUND STOOD SURRENDERED AS UNDISCLOSED INCOME IN VARIOUS YEARS I.E. ASSESSMENT YEARS 2000-01 TO 2004-05. IN HIS STATEMENT, SHRI KISHOREB HAI MOHANLAL KARIA ALSO ADMITTED OF UNEXPLAINED INVESTMENT IN CONSTRUCTION OF HOUSE PROPERTY AND FURNITURE ETC. PURCHASED BY HIM. HE ALSO ADMITTED T O MAKE SURRENDER OF RS. 6 LACS ON THIS ACCOUNT OVER AND ABOVE THE AMOUNT OF A FORESAID INVESTMENTS OF RS. 96,38,410/-. THE ASSESSEE ACTED UPON HIS STATEMENT AND SURRENDERED AN INCOME OF RS. 96,38,410/-. THE SAME STOOD DISCLOSE D AS HIS INCOME IN THE RETURN OF INCOME FILED FOR ASSESSMENT YEARS 2000-01 TO 2004-05. HE, HOWEVER, DID NOT ACT ON THE SURRENDER SO MADE DURING THE COU RSE OF SURVEY WITH RESPECT TO UNEXPLAINED INVESTMENT IN HOUSE PROPERTY AND FUR NITURE FOR RS. 6 LACS. THE A.O. WHILE COMPLETING THE ASSESSMENT, TREATED THE S AID INVESTMENT OF RS. 6 LACS AS UNEXPLAINED INVESTMENT IN THE YEAR UNDER CONSIDE RATION BEING THE YEAR OF SURVEY. THAT APART, THE ASSESSEES EXPLANATION THAT AFTER MATURITY OF FIXED DEPOSIT RECEIPTS, THE SAID AMOUNT OF INVESTMENT IN FIXED DEPOSITS WAS CLAIMED TO HAVE BEEN INVESTED BY THE ASSESSEE IN THE FOLLOWING ASSETS I.E. (I) INVESTMENT IN RESIDENTIAL BUILDING/FURNITURE RS. 6,00,000/-, (II) GIFT TO HIREN DATTANI RS. 1,00,000/-, (III) INVESTMENT IN GOLD BULLION RS. 27 ,34,500/-, (IV) INVESTMENT IN STOCK HELD BY PARTNERSHIP FIRM M/S M.P. SCRAP TRADE RS RS. 25,50,320/-,(V) EXCESS CASH FOUND IN BUSINESS PREMISES RS. 7,00,500 /- AND (VI) BALANCE AMOUNT STOOD UTILIZED TOWARDS PAYMENT OF TAXES FOR THE AFORESAID YEARS, IN WHICH, IT WAS SURRENDERED. THE A.O. MERELY ACCEPTED THE APPLICATION OF MONEY ITA 1247/RJT/2010 & 639/RJT/2012 4 TOWARDS GIFT TO HIREN DATTANI FOR RS. ONE LAC, GOLD BULLION RS. 27,34,500/- AND PAYMENT OF TAXES. HE, HOWEVER, DID NOT ACCEPT THE I NVESTMENT IN EXCESS STOCK FOR RS. 25,50,320/- AND EXCESS CASH FOUND RS. 7,00, 500/-AND MADE THE ADDITIONS THEREON AS UNDISCLOSED INVESTMENT IN THE CASE OF PARTNERSHIP FIRM M/S M.P. SCRAP TRADERS OVER AND ABOVE THE ADDITION OF R S. 6 LACS AS STATED HEREINBEFORE. THE REASON TAKEN IN NOT ACCEPTING THE SAID APPLICATION BY THE ASSESSING AUTHORITY AS WELL AS BY THE LD. CIT(A) IS THAT THE APPELLANT SHRI KISHOREBHAI MOHANLAL KARIA HAD FILED TWO AFFIDAVITS DATED 23 RD JANUARY, 2007. IN ONE OF THE AFFIDAVIT, THE ASSESSEE HAS RETRACTED TH E STATEMENT MADE DURING THE COURSE OF SURVEY PROCEEDINGS, STATING THAT STATEMEN T OBTAINED DURING THE COURSE OF SURVEY PROCEEDINGS WAS NEITHER VOLUNTARY NOR BIN DING UPON THE ASSESSEE. IN THE SECOND AFFIDAVIT, THE ASSESSEE HAD GIVEN APPLIC ATION OF THE MATURITY PROCEEDS OF THE AFORESAID UNEXPLAINED INVESTMENT IN FIXED DEPOSITS FOR RS. 96,38,410/-. THE REVENUE AUTHORITIES LOOK IT A RETR ACTION OF STATEMENT IN ONE OF THE AFFIDAVITS AND DISBELIEVED THE ASSESSEE AND ACC ORDINGLY MADE THE ADDITIONS AS AFORESAID. 3. DURING THE COURSE OF APPELLATE PROCEEDINGS BEFOR E THE APPELLATE TRIBUNAL, THE ASSESSEES COUNSEL CONTENDS THAT THE A FFIDAVIT RETRACTING THE STATEMENT WAS WITH RESPECT TO THE EVIDENTIARY VALUE OF THE STATEMENT OBTAINED DURING THE SURVEY PROCEEDINGS. THE PARTNER SHRI KIS HOREBHAI MOHANLAL KARIA, WHO IS ALSO THE APPELLANT BEFORE THIS TRIBUNAL, HO WEVER, HAS ACTED ON THE BASIS OF THE SURRENDER MADE DURING THE SURVEY PROCEEDING S AND DISCLOSED THE SAID AMOUNT AS HIS INCOME IN THE RETURNS OF INCOME FILED FOR THE ASSESSMENT YEARS 2000-01 TO 2004-05. THEREFORE, THERE REMAINS NOTHIN G WITH THE REVENUE AUTHORITIES TO SAY THAT THE ASSESSEE HAS RETRACTED THE STATEMENT. RESTING THEIR CONCLUSION BY THE A.O. AS WELL AS BY THE LD. CIT(A) IS THUS ON ERRONEOUS ASSUMPTION OF FACTS ON RECORD. IN SO FAR AS SECOND AFFIDAVIT OF THE ASSESSEE OF THE EVEN DATE I.E. ON 23 RD JANUARY, 2007 IS CONCERNED, THE SAID AFFIDAVIT IS IN CONSONANCE WITH THE ASSESSEES REPLY TO QUESTION NO. 9 REGARDING APPLICATION OF THE AMOUNT REALIZED OF THE UNDISCLOSED INVESTMENT T O WHICH THE ASSESSEE AT ITA 1247/RJT/2010 & 639/RJT/2012 5 THAT TIME HAD ANSWERED THAT AT THE RELEVANT TIME, H E IS NOT ABLE TO EXACTLY STATE AS TO WHERE THE SAID DISCLOSED AMOUNT OF RS. 96,38, 410/- HAS BEEN APPLIED. HE, THEREFORE, TOOK TIME TO COME WITH THE APPLICATION O F SAID AMOUNT ON A LATER DATE. IT IS THROUGH THIS AFFIDAVIT DATED 23/1/2007, WHICH WAS JUST AFTER ABOUT 19 DAYS OF THE DATE OF SURVEY AND AFTER RECONCILING HIS AFFAIR S, THE ASSESSEE MADE A DISCLOSURE OF CORRECT INVESTMENT AND APPLICATION TH ERETO AND FILED THE RETURNS OF INCOME ACCORDINGLY. THE A.O. HAS NO MATERIAL OR EVI DENCE ON RECORD TO DISBELIEVE THE APPLICATION OF THE AFORESAID AMOUNT OF RS. 96,38,410/- STATED BY THE ASSESSEE, WHEREAS THE APPELLANT HAS MADE A GENU INE AND BONAFIDE CLAIM THEREOF THROUGH THE AFFIDAVIT, WHICH OUGHT TO HAVE BEEN ACCEPTED BY THE A.O. AS WELL AS BY THE LD. CIT(A) AND APPLICATION THEREOF S HOULD HAVE BEEN ALLOWED. RELIANCE HAS BEEN PLACED TO THE JUDGMENT BY I.T.A.T . MUMBAI BENCH IN THE CASE OF JAGMOHAN SINGH ARORA & ORS. VS. DEPUTY COMM ISSIONER OF INCOME TAX & ANR IN IT(SS)A NOS. 51 TO 57, 178, 246/MUM/2004 ( 2006) 101 TTJ (MUMBAI) 682. 4. ON THE OTHER HAND, THE LD. D.R. SUPPORTS THE FIN DINGS AND CONCLUSIONS REACHED BY THE LD. CIT(A) AS A VALID SHOW CAUSE NOT ICE WAS ISSUED ON THE ASSESSEE TO EXPLAIN THE SOURCE OF RS. 6 LACS IN THE HANDS OF SHRI KISHOREBHAI MOHANLAL KARIA AND STOCK AND CASH IN HAND IN THE HA NDS OF THE FIRM M/S M.P. SCRAP TRADERS AND AFTER CONSIDERING THE ASSESSEES R EPLY AND AFFIDAVIT VIS A VIS THE RETRACTION, THE ADDITIONS HAVE BEEN SUSTAINED I N THE HANDS OF BOTH THE APPELLANTS. 5. WE HAVE HEARD PARTIES WITH REFERENCE TO MATERIAL ON RECORD. SHRI KISHOREBHAI MOHANLAL KARIA, PARTNER OF M/S M.P. SCR AP TRADERS HAS ADMITTED OF UNEXPLAINED INVESTMENT IN FIXED DEPOSITS AND DEPOSI TS IN BANK ACCOUNTS AND SURRENDERED THE SAME AS HIS INCOME FOR RETURNS OF I NCOME FILED FOR ASSESSMENT YEARS 2000-01 TO 2004-05. THE TOTAL SURRENDER MADE DURING THESE YEARS AMOUNTED TO RS. 96,38,410/-. THE SAID SHRI KISHOREB HAI MOHANLAL KARIA IN HIS REPLY TO QUESTION NO. 9 IN HIS STATEMENT RECORDED D URING THE COURSE OF SURVEY PROCEEDINGS, INFORMED THE SURVEY PARTY TO SUBMIT AP PLICATION OF THE AMOUNT OF ITA 1247/RJT/2010 & 639/RJT/2012 6 REALIZATION OF THE AFORESAID INVESTMENTS ON A LATER DATE. THIS WAS ALSO DULY ACTED UPON BY FILING AN AFFIDAVIT ON 23/1/2007 GIVI NG DETAILS OF APPLICATION OF INVESTMENTS AS UNDER:- I. RESIDENTIAL BUILDING OF THE PARTNER RS. 6,00,0 00/- II. GIFT TO HIREN DATTANI RS. 1,00,000/- III. GOLD BULLION RS. 27,34,500/- IV. PURCHASE OF STOCK AS DISCLOSED BY A FIRM RS. 25,50,320/- V. EXCESS CASH FOUND IN A PREMISES RS. 7,00,500 /- VI DIFFERENCE AMOUNT IS PAID AS INCOME TAX. THE SECOND AFFIDAVIT DATED 23/1/2007 FILED ALONGWIT H THE AFORESAID AFFIDAVIT WAS WITH RESPECT TO RETRACTION OF STATEMENT TO THE EFFE CT THAT THE STATEMENT ELUCIDATED DURING THE SURVEY PROCEEDINGS DO NOT HAVE ANY EVIDE NTIARY VALUE AND THE SAME SHOULD NOT BE USED AGAINST THE ASSESSEE, EVEN THOUG H, HE HAD MADE A CORRECT DISCLOSURE OF INVESTMENTS OF RS. 96,38,410/- IN THE RETURNS OF INCOME FILED FOR THE AFORESAID FIVE YEARS. THE HONBLE APEX COURT IN THE CASE OF CIT VS. S. KHADER KHAN SONS, (2013) 352 ITR 480 (SC) CLEARLY A DMITTED THE PRINCIPLE THAT SECTION 133A OF THE I.T. ACT DOES NOT EMPOWER ANY I .T. AUTHORITY TO EXAMINE ANY PERSON ON OATH AND THEREFORE ANY ADMISSION MADE IN SURVEY CANNOT BY ITSELF BE MADE A BASIS FOR ADDITION. AS THE APPELLA NT SHRI KISHOREBHAI MOHANLAL KARIA IN APPEAL BEFORE US HAS ACTED ON THE SURRENDE R OF RS. 96,38,410/-, THE RETRACTION MADE THROUGH SUCH AN AFFIDAVIT DATED 23/ 1/2007 WAS OF NO CONSEQUENCE. HIS RETRACTION OTHERWISE WITH RESPECT TO ANY OTHER OFFER OF SURRENDER CONTAINED IN THE STATEMENT WAS NOT ACTED UPON BY HIM AS THE SAME WERE STATED TO HAVE BEEN EXPLAINED OUT OF APPLICATI ON OF THE REALIZATION OF THE AFORESAID FIXED DEPOSITS. FOR THIS PURPOSE, HIS AFF IDAVIT WAS FILED BEFORE THE AUTHORITIES BELOW. THERE WAS NO MATERIAL FOUND AS A RESULT OF SURVEY INDICATING UNEXPLAINED INVESTMENT IN THE CONSTRUCTION OF HOUSE PROPERTY OR PURCHASE OF FURNITURE THEREOF FOR RS. 6 LACS EXCEPT THAT THERE WAS ADMISSION BY THE ASSESSEE IN HIS STATEMENT. LIKEWISE THE ITEMWISE STOCK INVEN TORY IS NOT SHOWN TO HAVE BEEN TAKEN PHYSICALLY BY THE SURVEY PARTY. MERELY I N HIS STATEMENT, THE EXCESS STOCK FOUND IN THE HANDS OF THE PARTNERSHIP FIRM ST ATED IN THE SAID STATEMENT WAS TAKEN AS SURRENDER THEREOF SEPARATELY OVER AND ABOVE THE EXCESS CASH ITA 1247/RJT/2010 & 639/RJT/2012 7 FOUND. THE ASSESSEE IN HIS REPLY TO THE SHOW CAUSE NOTICES PLACED HEAVY RELIANCE ON THE AFFIDAVIT DATED 23/1/2007 IN WHICH THE AFORESAID INVESTMENTS WERE CLAIMED TO HAVE BEEN MADE OUT OF REALIZATION O F THE FIXED DEPOSITS AND OTHER BANK DEPOSITS FOR WHICH SURRENDER OF INCOME W AS MADE IN THE EARLIER YEARS. THE REVENUE AUTHORITIES DID NOT FIND ANY OTH ER APPLICATION OF SUCH AMOUNT OF SURRENDERED INCOME. THEY HAVE RESTED THEI R DECISION ONLY ON THE RETRACTION OF STATEMENT MADE SUBSEQUENTLY WHICH WAS FOR A LIMITED PURPOSE ONLY. AFTER THE ASSESSEE HAD FILED THE AFFIDAVIT, H E WAS NEITHER CROSS EXAMINED ON THAT POINT NOR WAS HE CALLED UPON TO PRODUCE ANY DOCUMENTARY EVIDENCE. CONSEQUENTLY THE ASSESSEE WAS ENTITLED TO ASSUME TH AT THE INCOME TAX AUTHORITIES WERE SATISFIED WITH THE AFFIDAVIT AS SU FFICIENT PROOF ON THIS POINT. IN FACT, THE A.O. HAS NOT EVEN REJECTED SUCH AN AFFIDA VIT OF THE ASSESSEE IN THE ENTIRE PROCEEDINGS BEFORE HIM. UNDER THE CIRCUMSTAN CES AND HAVING REGARD TO THE JUDGMENT BY THE HONBLE ALLAHABAD HIGH IN THE CA SE OF SOHAN LAL GUPTA VS. CIT (1958) 33 ITR 786 AT PAGE 791, AS ALSO WAS CONS IDERED AT THE TIME OF HEARING IN PRESENCE OF THE PARTIES IN APPEAL, WE AR E SATISFIED THAT THE ASSESSEE HAS MADE A BONAFIDE CLAIM OF APPLICATION OF THE INC OME THAT STOOD SURRENDERED IN THE AFORESAID FIVE YEARS I.E. 2000-01 TO 2004-05 AND THERE BEING NO CONTRARY MATERIAL ON RECORD, THE ADDITION OF RS. 6 LACS IN T HE HANDS OF SHRI KISHOREBHAI MOHANLAL KARIA AND RS. 7,00,500/- CASH IN HAND AND RS. 25,50,320/- AS UNEXPLAINED INVESTMENT IN STOCK IN THE HANDS OF M/S M.P. SCRAP TRADERS ARE UNWARRANTED ON THE PECULIAR FACTS OF THE CASE AND S AME ARE HEREBY DIRECTED TO BE DELETED. 6. IN THE RESULT, BOTH THESE APPEALS BY THE ASSESSE ES STAND ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 01/01/2014. SD/- SD/- ( T. K. SHARMA ) ( B. R. JAIN ) #*% /JUDICIAL MEMBER $( #*% / ACCOUNTANT MEMBER *$+ ,*-/ ORDER DATE 01/01/2014 /RAJKOT *RANJAN ITA 1247/RJT/2010 & 639/RJT/2012 8 / COPY OF ORDER FORWARDED TO:- 1. /APPELLANT- (I) M/S M.P. SCRAP TRADERS, RAJKOT (II) SHRI KISHOREBHAI MOHANLAL KARIA, RAJKOT. 2. /RESPONDENT- THE ASSTT. CIT, CIRCLE-5, RAJKOT. 3. #-2- & 3 / CIT-I, RAJKOT. 4. & 3 - / CIT (A)-IV, RAJKOT. 5. 789 , , / DR, ITAT, RAJKOT 6. 9; <= / GUARD FILE. *$+ #$ / BY ORDER , PRIVATE SECRETARY, , INCOME TAX APPELLATE TRIBUNAL, RAJKOT.