Smt. Sujatadevi Sarawagi, Surat V. The ACIT.,Cent.Circle-4, Surat

ITA 712/AHD/2012

• Counselvise Citation: 71220514 RSA 2012
• Duration Of Justice: 3 year(s) 2 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-06-2015
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 29-05-2015
• Assessment Year: 2009-2010
• Appeal Filed On: 27-03-2012
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: O P VAISHNAV
• Assessee Lawyers: MEHUL R SHAH

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, AHMEDABAD BEFORE SHRI G.D. AGRAWAL, VICE PRESIDENT AND SHRI KUL BHARAT, JUDICIAL MEMBER ./ ././ ./ ITA NO. 712/AHD/2012 / ASSESSMENT YEAR: 2009-10 SMT SUJATADEVI SARAWAGI, V-2131, SURAT TEXTILE MARKET, RING ROAD, SURAT PAN : AVTPS 2330 K V/S. ACIT, CENTRAL CIRCLE-4, SURAT ./ ././ ./ ITA NO. 786/AHD/2012 / ASSESSMENT YEAR: 2009-10 ACIT, CENTRAL CIRCLE-4, SURAT V/S. SMT SUJATADEVI SARAWAGI, SURAT PAN : AVTPS 2330 K / // / (APPELLANT) / // / (RESPONDENT) ASSESSEE(S) BY : SHRI MEHUL R. SHAH, AR REVENUE BY : SHRI O.P. VAISHNAV, CIT-DR !' # $%&/ // / DATE OF HEARING : 29/05/2015 '( # $%& / // / DATE OF PRONOUNCEMENT: 05/06/2015 )* )* )* )*/ // / O R D E R PER G.D. AGRAWAL, VICE PRESIDENT: THESE ARE THE CROSS APPEALS FILED BY THE ASSESSEE A ND THE REVENUE AGAINST THE ORDER OF THE COMMISSIONER OF INCOME-TAX (APPEALS)-II, AHMEDABAD DATED 12.01.2012 FOR ASSESSMENT YEAR 2009 -10. 2. THE ONLY GROUND RAISED IN THESE CROSS-APPEALS IS AGAINST THE ADDITION FOR UNEXPLAINED JEWELLERY WHICH IS PARTLY SUSTAINED BY THE CIT(A). THE ASSESSING OFFICER MADE THE ADDITION OF RS.20,57,452 /- FOR UNEXPLAINED JEWELLERY. ON APPEAL, THE CIT(A) REDUCED THE SAME T O RS.7,39,772/-. THE ITA NOS. 712 & 786/AHD/2012 SMT SUJATADEVI SARAWAGI-CROSS FOR AY 2009-10 2 REVENUE IS IN APPEAL AGAINST THE RELIEF ALLOWED BY THE CIT(A) WHILE THE ASSESSEE IS IN APPEAL AGAINST THE ADDITION SUSTAINE D BY THE CIT(A). 3. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE M ATERIAL PLACED BEFORE US. THE ASSESSING OFFICER MADE THE ADDITION OF RS.20,57,452/- WITH THE FOLLOWING FINDINGS:- THEREFORE, OUT OF TOTAL UNEXPLAINED JEWELLERY FOU ND DURING THE COURSE OF SEARCH ACTION, RS.73 LAKHS IS ADJUSTED AGAINST THE TOTAL UNEXPLAINED JEWELLERY OF RS.93,57,452/- TOGETHER WITH ADJUSTMENT OF ALL S HORT FALLS OF THE ASSESSEE GROUP AND PARTLY ADJUSTMENT WITH ASSESSEE ALSO. THE REMAINING UNEXPLAINED JEWELLERY OF RS.20,57,452/- IS ADDED TO THE TOTAL I NCOME OF THE ASSESSEE. PENALTY PROCEEDINGS U/S 271(1)(C) IS INITIATED FOR FURNISHING INACCURATE PARTICULARS AND CONCEALMENT OF INCOME. 4. THE CIT(A) REDUCED THE SAME TO RS.7,39,772/- WIT H THE FOLLOWING FINDINGS:- 5. I HAVE CONSIDERED THE SUBMISSION MADE BY THE LEARNED A R AND PERUSED THE WORKING OF UNDISCLOSED JEWELLERY AND CHART OF D ISCLOSURE SUBMITTED BY GOVIND SARAWAGI HUF AFTER SEARCH. IN THE CHART OF D ISCLOSURE OF RS.7,56,61,229/-, JEWELLERY PURCHASED OF RS. 86,17, 680/- IS SHOWN IN ADDITION TO STOCK, ON MONEY, AMOUNT DEPOSITED IN BANK, CASH SEIZED AND BALANCE DISCLOSURE OF RS.1,58,23,472/-. IN THE TOTAL DISCLO SURE, STOCK OF RS2,97,77,700/- IS ALSO DISCLOSED. ON PERUSAL OF CA PITAL ACCOUNT AND BALANCE SHEET AS ON 31 MARCH, 2009 IT IS FOUND THAT FABRIC STOCK OF RS. 4,47,18,852/- IS DISCLOSED AS AGAINST DISCLOSURE OF THE STOCK OF RS 2,97,77,700/- .SHOWN IN THE CHART FILED BY GOVIND PRASAD SARAWAGI HUF, SO T HE HUF HAS ACCOUNTED FOR ADDITIONAL STOCK FOR RS.1,49,41,152/- AS AGAINS T BALANCE DISCLOSURE OF RS.1,58,23,472/-. THE TOTAL UNEXPLAINED JEWELLERY C OMES TO RS. 93,57,452/- WHICH IS NOT IN DISPUTE, AND THE ASSESSEE GROUP HAS SHOWN JEWELLERY OF RS.86,17,680/- IN THE DISCLOSURE CHART. FOR BALANCE AMOUNT OF RS. 7, 39,772/-, THE APPELLANT OR THE AR HAS NOT FILED ANY SATISFACT ORY EXPLANATION BECAUSE THE GOLD PURCHASE OF RS. 8,82,235/- IS ALSO SHOWN SEPAR ATELY IN THE SHEET AS ON 31 ST MARCH, 2009. THE BALANCE AMOUNT OF DISCLOSURE HAS BEEN UTILIZED AS ON MONEY' PAID IN LAND, AMOUNT DEPOSITED IN BANK AND C ASH SEIZED FROM RESIDENCE OF FAMILY MEMBERS AND ADJUSTED AGAINST PA YMENT OF TAX. IN VIEW OF THE ABOVE ACTS AND CIRCUMSTANCES, IT IS HELD THAT T HE ASSESSING OFFICER WAS NOT JUSTIFIED TO MAKE ADDITION OF RS. 20,57,452/- O UT OF UNEXPLAINED JEWELLERY ITA NOS. 712 & 786/AHD/2012 SMT SUJATADEVI SARAWAGI-CROSS FOR AY 2009-10 3 OF RS.93,57,4527- AS JEWELLERY WORTH RS. 86,17,680/ - HAS TO BE ADJUSTED AGAINST THE DISCLOSURE AMOUNT OF RS. 7.56 CRORES OF FERED BY THE GROUP AS SHOWN IN THE CHART AND THE BALANCE AMOUNT OF RS. 7, 39,772/- HAS TO BE ADDED TO THE TOTAL INCOME OF THE APPELLANT AS UNDISCLOSED JEWELLERY AND THE APPELLANT WILL GET RELIEF OF RS.13,17,680/-. 5. AT THE TIME OF HEARING BEFORE US, THE LD. COUNS EL STATED THAT THE TOTAL DISCLOSURE MADE BY THE GROUP IS RS.7,56,61,229/- AN D AFTER THE ADJUSTMENT OF DISCLOSURE AGAINST THE VARIOUS ASSETS, THE BALAN CE DISCLOSURE REMAINS RS.1,58,23,472/-. HE, THEREFORE, SUBMITTED THAT TH E BALANCE DISCLOSURE WILL TAKE CARE OF THE DIFFERENCE, IF ANY, IN THE DISCLOS URE OF JEWELLERY. HOWEVER, THE LD. DEPARTMENTAL REPRESENTATIVE, ON THE OTHER H AND, POINTED OUT THAT THE ASSESSEES WRITTEN SUBMISSIONS BEFORE THE CIT(A) WH ICH READS AS UNDER:- 7. IN THE COURSE OF APPELLATE PROCEEDINGS BEFOR E YOUR HONOUR, WE MAKE THE FOLLOWING SUBMISSION: A. OUT OF TOTAL DISCLOSURE OF RS.7,56,61,229/-, THE DI SCLOSURE OF RS.86,17,680/- WAS MADE ON ACCOUNT OF JEWELLERY PUR CHASED. HOWEVER, DISCLOSURE OF RS. 1.46 CRORES AS BALANCE DISCLOSURE OUT OF TOTAL DISCLOSURE OF RS.7,56,61,229/- WAS MADE TO COVER UP ANY DISCRE PANCY THAT MAY BE FOUND LATER ON AFTER STUDYING VARIOUS MATERIALS GAT HERED AT THE TIME OF SEARCH, SO THE DISCLOSURE OF RS.1.46 CRORES INCLUDE D SHORT FALL OF DISCLOSURE OF RS.7,39,7227- MADE ON ACCOUNT OF JEWELLERY. B. NECESSARY ENTRIES OF DISCLOSURE OF RS.7,56,61,229/- WAS DULY PASSED IN THE BOOKS OF ACCOUNT OF GOVIND SARAWAGI HUF IN WHOSE CA SE THE DISCLOSURE WAS MADE. IN THE BOOKS OF GOVIND SARAWAGI HUF, THE UNACCOUNTED JEWELLERY OF RS. 95,00,000/- WAS DEBITED BY CREDITI NG DISCLOSED INCOME. SO THERE IS DIFFERENCE OF RS.1,42,548/-. IN THIS WAY, ASSESSEE HAS MADE MORE DISCLOSURE OF RS.1,42,5487-. C. ASSESSEE DID NOT GIVE ANY BIFURCATION EITHER ON 21 .01.2009 OR 09.02.2009 WHEN DISCLOSURE OF RS.6,10,41,769/- AND RS.1.46 CRO RES WAS MADE RESPECTIVELY. THIS BIFURCATION WAS GIVEN LATER ON. ASSESSING OFFICER ERRED IN GIVING CREDIT OF ONLY RS.73,00,000/- AGAINST JEW ELLERY, ALTHOUGH, NO SUCH BIFURCATION WAS GIVEN AT TIME OF FURTHER DECLA RATION OF RS.1.46 CRORES ITA NOS. 712 & 786/AHD/2012 SMT SUJATADEVI SARAWAGI-CROSS FOR AY 2009-10 4 ON 09.02.2009. GOVIND SARAWGI HUF EARMARKED THE AMO UNT OF RS.86,17,680/- AGAINST JEWELLERY AND NEVER RS. 73,0 0,000/- OUT OF TOTAL DISCLOSURE AND SHORTFALL OF RS.7,39,722/- IS COVERE D AGAINST RESIDUAL DISCLOSURE OF RS. 1,58,23,472/-. D. IT IS TO BE NOTED THAT GOVIND SARAWAGI HUF CAPITALI SED DISCLOSURE OF RS.7,56,61,229/- MADE IN ITS BOOKS OF ACCOUNT. THE CAPITALISATION MADE BY GOVIND SARAWAGI HUF COVERS UNEXPLAINED JEWELLERY OF RS.93,57,452/-. 6. FROM THE ABOVE, IT IS EVIDENT THAT EVEN AS PER A SSESSEE IN THE BIFURCATION OF DISCLOSURE, THE AMOUNT SHOWN AGAINST THE JEWELLERY WAS RS.86,17,860/-. NOW, THE ASSESSEES CONTENTION THA T THERE IS A BALANCE DISCLOSURE OF RS.1.46 CRORES WHICH WILL TAKE CARE O F REMAINING DIFFERENCE; HOWEVER, NEITHER THE COMPLETE BIFURCATION OF RS.7.5 6 CRORES IS SUBMITTED BEFORE US NOR WE HAVE THE DETAILS OF THE CASES OF O THER ASSESSEES WHERE THE BALANCE DISCLOSURE HAVE BEEN OFFERED OR ASSESSED. WHEN THE ASSESSEE HAS GIVEN THE SPECIFIC AMOUNT OF DISCLOSURE FOR JEWELLE RY, THEN THE CONTENTION OF THE ASSESSEE THAT RESIDUAL ALSO INCLUDED THE DISCLO SURE OF JEWELLERY CANNOT BE ACCEPTED UNLESS SOME CONTRARY EVIDENCE IS BROUGHT O N RECORD. IN VIEW OF THESE FACTS, WE DO NOT FIND ANY JUSTIFICATION TO IN TERFERE WITH THE ORDER OF THE CIT(A) AND THE SAME IS SUSTAINED. 7. IN THE RESULT, THE ASSESSEES APPEAL AS WELL AS REVENUES APPEAL, BOTH ARE DISMISSED. ORDER PRONOUNCED IN THE COURT ON 5 TH JUNE, 2015 AT AHMEDABAD. SD/- SD/- (KUL BHARAT) JUDICIAL MEMBER (G.D. AGRAWAL) VICE-PRESIDENT AHMEDABAD; DATED 05/06/2015 BIJU T., PS ITA NOS. 712 & 786/AHD/2012 SMT SUJATADEVI SARAWAGI-CROSS FOR AY 2009-10 5 )* # $+ ,)+$ )* # $+ ,)+$ )* # $+ ,)+$ )* # $+ ,)+$/ COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. $ !- / CONCERNED CIT 4. !- ( ) / THE CIT(A) 5. +01 $ , , / DR, ITAT, AHMEDABAD 6. 13 4' / GUARD FILE . )*! )*! )*! )*! / BY ORDER, TRUE COPY 5 55 5/ // / 6 6 6 6 ( DY./ASSTT.REGISTRAR) , , , , / ITAT, AHMEDABAD