ISHWARSINGH BALWANT SINGH DEORA (ALIAS KISHOREKUMAR JAGDISHKUMAR SHAH), MUMBAI V. DEPUTY COMMISSIONER OF INCOME TAX- CENTRAL CIRCLE - 2(4), MUMBAI

ITA 773/MUM/2018

• Counselvise Citation: [2018] 124 COUNSELVISE.COM (IT) 7240 (ITAT-MUMBAI)
• Duration Of Justice: 7 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-09-2018
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2009-2010
• Appeal Filed On: 08-02-2018
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: SWA
• Keywords: Unexplained cash credit; Search and seizure; Corroborative evidences
• Section: 153A; 68; 132

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH, MUMBAI BEFORE SHRI SAKTIJIT DEY , JUDICIAL MEMBER ITA NO. 773 / MUM . /2018 ( ASSESSMENT YEAR : 20 09 10 ) ISHWARSINGH BALWANT SINGH DEORA (ALIAS KOSHOREKUMAR JAGDISHKUMAR SHAH) 404, WING B, COZY HOME OVERIPADA, DAHISAR (EAST) MUMBAI 400 068 PAN AACPD8770C . APPELLANT V/S DY . COMMISSIONER OF INCOME TAX CENTRAL CIRCLE 2( 4 ), MUMBAI . RESPONDENT ITA NO.774/MUM./2018 ( ASSESSMENT YEAR : 2011 12 ) ISHWARSINGH BALWANT SINGH DEORA (ALIAS KOSHOREKUMAR JAGDISHKUMAR SHAH) 404, WING B, COZY HOME OVERIPADA, DAHISAR (EAST) MUMBAI 400 068 PAN AACPD8770C . APPELLANT V/S DY. COMMISSIONER OF INCOME TAX CENTRAL CIRCLE 2(4), MUMBAI . RESPONDENT 2 ISHWARSINGH BALWANT SINGH DEORA (ALIAS KOSHOREKUMAR JAGDISHKUMAR SHAH) ITA NO.775/MUM./2018 ( ASSESSMENT YEAR : 2012 13 ) ISHWARSINGH BALWANT SINGH DEORA (ALIAS KOSHOREKUMAR JAGDISHKUMAR SHAH) 404, WING B, COZY HOME OVERIPADA, DAHISAR (EAST) MUMBAI 400 068 PAN AACPD8770C . APPELLANT V/S DY. COMMISSIONER OF INCOME TAX CENTRAL CIRCLE 2(4), MUMBAI . RESPONDENT ITA NO.776/MUM./2018 ( ASSESSMENT YEAR : 2014 15 ) ISHWARSINGH BALWANT SINGH DEORA (ALIAS KOSHOREKUMAR JAGDISHKUMAR SHAH) 404, WING B, COZY HOME OVERIPADA, DAHISAR (EAST) MUMBAI 400 068 PAN AACPD8770C . APPELLANT V/S DY. COMMISSIONER OF INCOME TAX CENTRAL CIRCLE 2(4), MUMBAI . RESPONDENT ASSESSEE BY : NONE REVENUE BY : SHRI S WAPAN K UMAR BEPARI DATE OF HEARING 25.09 .2018 DATE OF ORDER 28.09.2018 O R D E R A FORESAID APPEAL S HA VE BEEN FILED BY THE ASSESSEE CHALLENGING COMMON ORDER DATED 3 1 ST OCTOBER 2017 , PASSED BY THE LEARNED 3 ISHWARSINGH BALWANT SINGH DEORA (ALIAS KOSHOREKUMAR JAGDISHKUMAR SHAH) COMMISSIONER (APPEALS) 4 8 , MUMBAI, FOR THE ASSESSMENT YEAR S 2009 10, 2011 12, 2012 1 3 AND 2014 15 . 2 . T HE BASIC COMMON ISSUE ARISING FOR CONSIDERATION IN THESE APPEALS RELATES TO ADDITION OF DIFFERENT AMOUNT S MADE UNDER SECTION 68 OF THE INCOME TAX ACT, 1961 (FOR SHORT THE ACT ) IN DIFFERENT ASS ESSMENT YEARS UNDER APPEAL. OF COURSE, THE ASSESSEE HAS ALSO CHALLENGED THE DECISION OF THE LEARNED COMMISSIONER (APPEALS) DECIDING THE APPEALS EX PARTE. 3 . B RIEF FACTS ARE, THE ASSESSEE IS AN INDIVIDUAL. DURING A SEARCH AND SEIZURE OPERATION CONDUCTED UNDER SECTION 132 OF THE ACT ON 18 TH NOVEMBER 2012, IT WAS FOUND THAT M/S. GOLD SUKH SAFETY VAULTS LTD. WAS PROVIDING LOCKERS ON RENT WITHOUT VERIFICATION OF KNOW YOUR CUSTOMER ( KYC ) DETAILS. IN COURSE OF SEARCH AND SEIZURE OPERATION, IT WAS ALSO FOUND THAT IN A LOCKER NO.101 HELD BY THE ASSESSEE CONTAINED CASH OF ` 53.50 LAKH. IN THE STATEMENT RECORDED UNDER SECTION 132( 4) OF THE ACT ON 20 TH NOVEMBER 2012, THE ASSESSEE COULD NOT EXPLAIN THE SOURCE OF CASH FOUND FROM HIS LOCKER. HE ALSO STATED THAT THE CASH FOUND FROM THE LOCKER IS NOT RECORDED IN HIS BOOKS OF ACCOUNT AND ADMITTED IT AS HIS UNDISCLOSED INCOME FOR FINANCIAL YEAR 2012 13 AND OFFERED IT TO TAX. SUBSEQUENTLY, IN COURSE OF ASSESSMENT PROCEEDINGS INITIATED UNDER SECTION 153A OF THE ACT FOR ASSESSMENT YEARS 2009 10, 4 ISHWARSINGH BALWANT SINGH DEORA (ALIAS KOSHOREKUMAR JAGDISHKUMAR SHAH) 2011 12 AND 2012 13 THE ASSESSING OFFICER WHILE EXAMINING THE RETURN OF INCOME FILED BY THE ASSESSE E THE ASSESSING OFFICER NOTICED THAT THE ASSESSEE HAS TAKEN UNSECURED LOAN S FROM VARIOUS PERSONS INCLUDING RELATIVES. SIMILARLY, DURING THE REGULAR ASSESSMENT PROC EEDINGS FOR ASSESSMENT YEAR 2014 15 THE ASSESSING OFFICER FOUND SIMILAR LOAN TRANSACTION. AFT ER CALLING FOR NECESSARY INFORMATION AND EXAMINING THE SUBMISSIONS MADE BY THE ASSESSEE THE ASSESSING OFFICER OBSERVED THAT THE ASSESSEE WAS UNABLE TO ESTABLISH THE GENUINENESS OF UNSECURED LOANS AVAILED BY HIM. ACCORDINGLY, HE TREATED THE UNSECURED LOANS APPEARING IN HIS BOOKS OF ACCOUNT AS UNEXPLAINED CASH CREDIT UNDER SECTION 68 OF THE ACT AND MADE ADDITIONS IN THE RESPECTIVE ASSESSMENT YEARS . THE ADDITIONS MADE BY ASSESSING OFFICER IN THIS REGARD IN DIFFERENT ASSESSMENT YEAR S ARE AS UNDER: A.Y. 2009 10 ` 32,500 A.Y. 2011 11 ` 2,65,000 A.Y. 2012 13 ` 1,39,500 A.Y. 2014 15 ` 3,59,500 BEING AGGRIEVED OF SUCH ADDITION S , THE ASSESSEE PREFERRED APPEAL BEFORE THE FIRST APPELLATE AUTHORITY. 4 . AS COULD BE SEEN FROM THE IMPUGNED ORDER OF THE LEARNED COMMISSIONER (APPEALS) , IN SPITE OF A NUMBER OF OPPORTUNITIES BEING GIVEN TO THE ASSESSEE TO REPR ESENT HIS CASE, NO ONE APPEARED. HENCE , 5 ISHWARSINGH BALWANT SINGH DEORA (ALIAS KOSHOREKUMAR JAGDISHKUMAR SHAH) THE LEARNED COMMISSIONER (APPEALS) PROCEEDED TO DECIDE THE APPEALS EX PARTE AND ULTIMATELY SUSTAINED THE ADDITIONS MADE BY THE ASSESSING OFFICER BY DISMISSING THE APPEALS. 5 . WHEN THE APPEALS WERE CALLED FOR HEARING, NO ONE APPEARED ON BEHALF OF THE ASSESSEE IN SPITE OF SERVICE OF HEARING NOTICE WHICH IS EVIDENT FROM THE POSTAL ACKNOWLEDGMENT KEPT ON RECORD. EVEN THE ASSESSE E HAS NOT FILED ANY APPLICATION SEEKING ADJOURNMENT. IT IS SEEN FROM THE FACTS ON RECORD, IN COURSE OF ASSESSMENT PROCEEDINGS FOR ASSESSMENT YEAR S 2009 10, 2011 12 AND 2012 13, THOUGH, THE ASSESSING OFFICER HAD GRANTED SUFFICIENT OPPORTUNITY TO TH E ASSESSE E TO FURNISH EVIDENCES TO PROVE THE UNSECURED LOANS, STILL , THE ASSESSEE HAS FAILED TO COMPLY WITH THEM . FURTHER, IT IS SEEN THAT FOR THE ASSESSMENT YEAR 2014 15, THE ASSESSING OFFICER COMPLETED THE ASSESSMENT EX PARTE , SINCE , THE ASSESSEE FAILED TO APPEAR BEFORE HIM. T HE RE IS NO CHANGE IN SITUATION EVEN BEFORE THE LEARNED COMMISSIONER (APPEALS) AS THE ASSESSEE FAILED TO APPEAR TO REPRESENT HIS CASE . THUS, IT BECOMES CLEAR THAT THE ASSESSEE IS NOT ONLY A CHRONIC DEFAULTER BUT T OO CASUAL IN HIS APPROACH AND NOT DILIGENT IN PURSUING THE APPEALS FILED BY HIM. IN VIEW OF THE AFORESAID, I PROCEED TO DISPOSE OFF THE APPEAL EX PARTE QUA THE ASSESSEE AFTER HEARING THE LEARNED DEPARTMENTAL REPRESENTATIVE. 6 ISHWARSINGH BALWANT SINGH DEORA (ALIAS KOSHOREKUMAR JAGDISHKUMAR SHAH) 6 . I HAVE CONSIDERED THE SUBMISSIONS OF LEARNED DEPARTMENTAL REPRESENTATIVE AND PERUSED MATERIALS ON RECORD. THE DISPUTE IN THE PRESENT APPEAL IS CONFINED TO THE ADDITIONS OF DIFFERENT AMOUNT S MADE UNDER SECTION 68 OF THE ACT ON ACCOUNT OF UNEXPLAINED CASH CREDIT. ON A PERUSAL OF THE ASSESSMENT ORDERS IT IS EVIDENT, THE ASSESSEE HAS NOT FURNISHED ANY SUPPORTING EVIDENCE TO ESTABLISH THE GENUINENESS OF THE UNSECURED LOANS AND THE CREDITWORTHINESS OF THE CREDITORS. THE FACTUAL POSITION REMAINED SAME BEFORE THE LEARNED COMMISSIONER ( APPEALS) AS WELL AS BEFORE THE TRIBUNAL. THUS, THE ASSESSEE HAVING FAILED TO ESTABLISH THE GENUINENESS OF THE LOAN TRANSACTION AS WELL AS THE CREDIT WORTHINESS OF THE CREDITOR S , THE ADDITION S MADE DESERVE TO BE SUSTAINED. 7 . AS REGARDS THE GRIEVANCE OF THE ASSESSEE AGAINST EX PARTE DISPOSAL OF THE APPEALS BY THE LEARNED COMMISSIONER (APPEALS), I MUST OBSERVE, IF THE ASSESSEE DELIBERATELY REMAINS ABSENT AND IS NOT DILIGENT IN PURSUING ITS APPEAL, IT CANNOT COME FORWARD AND CHALLENGE THE DECISION OF THE LEARNE D COMMISSIONER (APPEALS) IN DECIDING THE APPEAL EX PARTE . I F THE ASSESSEE CHOOSES NOT TO AVAIL THE OPPORTUNITY GRANTED TO HIM TO REPRESENT HIS CASE , IT CAN DO SO AT HIS OWN PERIL AND HE CANNOT BLAME OTHERS FOR HIS OWN MISTAKE. WITH THE AFORESAID OBSERVATIO NS, GROUNDS RAISED ARE DISMISSED. 7 ISHWARSINGH BALWANT SINGH DEORA (ALIAS KOSHOREKUMAR JAGDISHKUMAR SHAH) 8 . I N THE RESULT, ASSESSEES APPEALS ARE DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 28.09.2018 SD/ - SAKTIJIT DEY JUDICIAL MEMBER MUMBAI, DATED: 28.09.2018 COPY OF THE ORDER FORWARDED TO : ( 1 ) THE ASSESSEE; ( 2 ) THE REVENUE; ( 3 ) THE CIT(A); ( 4 ) THE CIT, MUMBAI CITY CONCERNED; ( 5 ) THE DR, ITAT, MUMBAI; ( 6 ) GUARD FILE . TRUE COPY BY ORDER PRADEEP J. CHOWDHURY SR. PRIVATE SECRETARY (SR. PRIVATE SECRETARY) ITAT, MUMBAI