SURAJ DINESH SINGHAL, MUMBAI V. ITO-20(3)(3), MUMBAI

ITA 7483/MUM/2018

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 4547 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 1 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-02-2020
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2011-2012
• Appeal Filed On: 28-12-2018
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: AMIT PRATAP SINGH
• Keywords: Sale consideration of property below Jantri Value; Salary income; Capital Gains
• Section: 143(3); 69A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH SMC, MUMBAI BEFORE SHRI R.C.SHARMA, ACCOUNTANT MEMBER AND SHRI VIKAS AWASTHY, JUDICIAL MEMBER ITA NO.7483/MUM/2018(A.Y.2011-12) SURAJ DINESH SINGHAL, B-601/602, GREEN ACRES, LOKHANDWALA COMPLEX, ANDHERI WEST, MUMBAI 400053 PAN:AOWPS 3343E ...... APPELLANT VS. INCOME TAX OFFICER , WARD 20(3)(3), 4 TH FLOOR,PIRAMAL CHAMBERS, LALBAUG , MUMBAI 400 007 ..... RESPONDE NT APPELLANT BY : NONE RESPONDENT BY : SHRI AMIT PRATAP S INGH DATE OF HEARING : 10/02/2020 DATE OF PRONOUNCEMENT : 10/02/2020 ORDER PER VIKAS AWASTHY, JM: THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST T HE ORDER OF COMMISSIONER OF INCOME TAX (APPEALS) 5, MUMBAI ( IN SHORT THE CIT(A) ) DATED 18/09/2018 FOR ASSESSMENT YEAR 2011-12. 2. THE NOTICE OF APPEAL WAS SENT TO THE ASSESSEE T HROUGH RPA. AS IS EVIDENT FROM THE ACKNOWLEDGEMENT CARD AVAILABLE ON RECORD, THE NOTICE FOR 2 ITA NO.7483/MUM/2018(A.Y.2011-12) HEARING FIXED ON 07/01/2020 WAS DULY SERVED ON THE ASSESSEE. DESPITE SERVICE OF NOTICE, NEITHER THE ASSESSEE NOR ANY AUTHORIZED REPRESENTATIVE OF THE ASSESSEE APPEARED IN THE COURT. ON 07/01/2020 A FR ESH NOTICE WAS ISSUED TO THE ASSESSEE THROUGH RPAD FOR TODAY. AGAIN NEITHER THE ASSESSEE NOR ANY AUTHORIZED REPRESENTATIVE OF THE ASSESSEE HAS COME TO ATTEND THE HEARING. NO REQUEST FOR ADJOURNMENT HAS BEEN RECEIVED EITHER. IT SEEMS THAT THE ASSESSEE IS NOT KEEN TO PURSUE HIS APPEAL. UNDER SUCH CIRCU MSTANCES, WE ARE CONSTRAINED TO DECIDE THE APPEAL WITH THE ASSISTANC E OF LD.DEPARTMENTAL REPRESENTATIVE AND MATERIAL AVAILABLE ON RECORD. 3. THE ASSESSEE HAS ASSAILED THE FINDING OF CIT(A) BY RAISING FOLLOWING GROUNDS OF APPEAL:- 1. ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW, THE HON. CIT-A HAS ERRED IN CONFIRMING THE ADDITION OF RS.9,58,725/- AS SHOR T TERM CAPITAL GAINS BY INVOKING THE PROVISIONS OF S.50C OF THE ACT. 2. ON THE FACTS AND CIRCUMSTANCES OF THE CASE AN D IN LAW, HON. CIT-A HAS ERRED IN CONFIRMING THE ADDITION OF RS.4,69,500/- AS UNEXPLA INED MONEY U/S 69A OF THE ACT. 3. ON THE FACTS AND CIRCUMSTANCES OF THE CASE AN D IN LAW, HON. CIT-A HAS ERRED IN CONFIRMING THE DISALLOWANCE OF APPELLANT'S CLAIM FO R EXEMPTION IN RESPECT OF HOUSE RENT ALLOWANCE OF RS.3,37,562/- AS NOT GENUINE DEDU CTION. 4. ON THE FACTS AND CIRCUMSTANCES OF THE CASE AN D IN LAW, HON. CIT-A HAS ERRED IN CONFIRMING THE ADDITION OF RS,2,99,714/- AS UNDISCL OSED SALARY INCOME. 5. ON THE FACTS AND CIRCUMSTANCES OF THE CASE AN D IN LAW, HON. CIT-A HAS ERRED IN CONFIRMING THE DISALLOWANCE OF RS.1,34,628/- TOWARD S DEDUCTION U/S 80 C OF THE ACT AS NOT VERIFIED. 4. THE BRIEF FACTS OF THE CASE AS EMANATING FROM RECORDS ARE: THE ASSESSEE IS A SALARIED EMPLOYEE. THE ASSESSEE FILED HIS RE TURN OF INCOME FOR THE IMPUGNED ASSESSMENT YEAR ON 02/09/2011 DECLARING TO TAL INCOME OF RS..12,68,290/-. IN SCRUTINY ASSESSMENT PROCEEDING S, THE ASSESSING OFFICER MADE FOLLOWING ADDITIONS: 3 ITA NO.7483/MUM/2018(A.Y.2011-12) (I) INCOME FROM CAPITAL GAINS : RS.9,58,725/- (II) UNEXPLAINED CASH DEPOSITS : RS.4,69,500/- (III)DISALLOWANCE OF HRA EXEMPTION : RS.3,37,562/- (IV) SALARY RECEIVED FROMM/S.ACCOR : RS.2,99,714/- SERVICES PVT. LTD. AGGRIEVED AGAINST THE ASSESSMENT ORDER DATED 04/03 /2014 PASSED UNDER SECTION 143(3) OF THE INCOME TAX ACT, 1961 ( IN SHO RT THE ACT), THE ASSESSEE FILED APPEAL BEFORE THE CIT(A). THE FIRST APPELLAT E AUTHORITY DISMISSED THE APPEAL OF ASSESSEE IN TOTO AND CONFIRMED THE ADD ITIONS. HENCE, THE PRESENT APPEAL. 5. SHRI AMIT PRATAP SINGH, REPRESENTING THE DEPARTM ENT SUBMITTED THAT AIR INFORMATION WAS RECEIVED BY THE ASSESSING OFFICER R EGARDING ASSESSEES TRANSACTION OF SALE OF IMMOVABLE PROPERTY. THE SAL E CONSIDERATION AS PER THE AGREEMENT WAS RS.78,67,595/-, WHEREAS, ACCORDING TO COLLECTOR RATE THE VALUE OF PROPERTY WAS RS.92,83,500/-. THE ASSESSEE COULD NOT FURNISH ANY PLAUSIBLE REASON FOR DISCLOSING SALE VALUE LESS THAN THE COLL ECTOR RATE. HENCE, THE DIFFERENCE OF RS.9,58,725/- WAS TAXED AS SHORT TERM CAPITAL GAIN. 5.1 THE LD.DEPARTMENTAL REPRESENTATIVE SUBMITTED T HAT THERE WERE ALSO UNEXPLAINED CASH DEPOSITS OF RS.4,69,500/- IN THE S AVING BANK ACCOUNT OF THE ASSESSEE WITH VIJAYA BANK. THE ASSESSEE COULD NOT EXPLAIN THE SOURCE DEPOSIT EITHER BEFORE THE ASSESSING OFFICER OR BEFORE THE C IT(A). HENCE, ADDITION WAS MADE UNDER SECTION 69A BY THE ASSESSING OFFICER AND CONFIRMED BY THE CIT(A). 5.2 THE THIRD ADDITION IS IN RESPECT OF DISALLOWANC E OF HRA CLAIMED. NO DETAILS WERE FURNISHED BY THE ASSESSEE BEFORE BOTH THE AUTHORITIES BELOW. THE LD.DEPARTMENTAL REPRESENTATIVE FURTHER POINTED THAT THERE WAS AN ADDITION OF 4 ITA NO.7483/MUM/2018(A.Y.2011-12) RS. 2,99,714/- ON ACCOUNT OF UNDISCLOSED SALARY IN COME. THE SAME COME TO THE KNOWLEDGE OF ASSESSING OFFICER FROM26AS STATEM ENT. 6. WE HAVE HEARD THE SUBMISSIONS MADE BY LD.DEPARTM ENTAL REPRESENTATIVE AND HAVE EXAMINED THE ORDERS OF AUTH ORITIES BELOW. A PERUSAL OF THE IMPUGNED ORDER SHOWS THAT THE FIRST APPELLAT E AUTHORITY HAS CONFIRMED THE ADDITIONS PRIMARILY FOR THE REASON THAT THE ASS ESSEE HAS NOT FURNISHED ANY DETAILS/EVIDENCES TO CONTROVERT THE FINDINGS OF A SSESSING OFFICER. EVEN BEFORE US, THERE IS NO MATERIAL TO REBUT THE ADDITIONS CON FIRMED BY THE FIRST APPELLATE AUTHORITY. IN THE ABSENCE OF ANY CONTRARY MATERIAL , WE FIND NO REASON TO INTERFERE WITH THE IMPUGNED ORDER. ACCORDINGLY, TH E SAME IS UPHELD AND THE APPEAL OF ASSESSEE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT AFTER HEARING ON MONDAY , THE 10 TH DAY OF FEBRUARY, 2020. SD/- SD/- (R.C.SHARMA) (VIKAS AWASTHY) ACCOUNTANT MEMBER JUDICIAL MEMBER MUMBAI, DATED 10/02/2020 VM , SR. PS(O/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