RITESH BHANWARLAL JAIN, MUMBAI V. ASST CIT CEN CIR 42, MUMBAI

ITA 8620/MUM/2011

• Counselvise Citation: 862019914 RSA 2011
• Duration Of Justice: 2 year(s) 8 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-09-2014
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: D
• Next Hearing Date: 09-09-2014
• Assessment Year: 2008-2009
• Appeal Filed On: 21-12-2011
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Section: 69C; 144; 68

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH, MUMBAI BEFORE HONBLE S/SHRI H.L. KARWA, PRESIDENT AND B. R.BASKARAN (AM) . . , . . , ./I.T.A. NOS.8616 TO 8621/MUM/2011 ( / ASSESSMENT YEARS :2004-05 TO 2009-2010) M/S RITESH BHANWARLAL JAIN, ROOM NO.8,3 RD FLOOR, BANU MANSION, NADER SHAH STREET, D N ROAD, FORT, MUMBAI-400001 / VS. ASSTT. COMMISSIONER OF INCOME TAX CENTRAL CIRCLE -42, MUMBAI ( / APPELLANT) .. ( !' / RESPONDENT) ./ $% ./ PAN/GIRNO.: AEKPJ0093A & / APPELLANT BY : NONE !' ' & /RESPONDENT BY : SHRI SANTOSH KUMAR ( ) ' * + / DATE OF HEARING : 10.9.2014 ,- ' * + /DATE OF PRONOUNCEMENT : 12.9.2014 / O R D E R PER B.R.BASKARAN, ACCOUNTANT MEMBER : ALL THESE APPEALS HAVE BEEN FILED BY THE ASSESSEE C HALLENGING THE ORDERS PASSED BY LD CIT(A)-38, MUMBAI AND THEY RELATE TO T HE ASSESSMENT YEARS 2004- 05 TO 2009-10. 2. ON THE DATE OF HEARING, A PERSON NAMED SHRI PORT DAR, CLAIMING TO BE THE ASSISTANT OF AN ADVOCATE, APPEARED AND SOUGHT ADJOU RNMENT. THE BENCH NOTICED THAT THE ADJOURNMENT LETTER WAS ALSO SIGNED BY THE ABOVE SAID PERSON. WHEN QUESTIONED ABOUT HIS AUTHORITY TO SIGN THE LETTER O N THE LETTER HEAD OF THE ADVOCATE AND ALSO HIS AUTHORITY TO SEEK THE ADJOURN MENT, HE COULD NOT GIVE ANY CONVINCING REPLY. UNDER THESE CIRCUMSTANCES, THE B ENCH REFUSED TO ENTERTAIN HIM. FROM THE RECORD, WE NOTICE THAT THE ASSESSEE DID NOT APPEAR BEFORE THE ASSESSING OFFICER AS WELL AS BEFORE LD CIT(A). HEN CE THE ASSESSING OFFICER HAS PASSED THE ORDERS TO THE BEST OF HIS JUDGMENT U/S 1 44 OF THE ACT AND THE LD I.T.A. NO. 8616 TO 8621/MUM/2011 2 CIT(A) ALSO PASSED EX-PARTE ORDERS. UNDER THESE SE T OF FACTS, THE BENCH PROCEEDED TO DECIDE THE APPEALS EX-PARTE, WITHOUT T HE PRESENCE OF THE ASSESSEE. 3. WE HEARD LD D.R AND ALSO PERUSED THE RECORD. TH E FACTS THAT EMANATE FROM THE RECORD ARE THAT THE REVENUE CARRIED OUT SE ARCH AND SEIZURE OPERATIONS IN RAJAT PHARMACHEM GROUP OF CASES. DURING THE COURSE OF SEARCH, IT CAME TO LIGHT THAT THE ASSESSEE HAS BEEN INDULGING IN HAWALA TRAN SACTIONS WITH RAJAT PHARMACHEM GROUP. THE ASSESSEE WAS SEEN RECEIVING CHEQUES FROM THE ABOVE SAID GROUP AND RETURNING CASH BY MISUSING DEPB SCHE ME. FOR THIS PURPOSE, THE ASSESSEE HAD PROMOTED ABOUT 74 CONCERNS. SINCE TH E ASSESSEE DID NOT FURNISH ANY DETAILS, THE AO ESTIMATED THE COMMISSION ON HAW ALA TRANSACTIONS AT 2% OF THE TURNOVER OF EVERY YEAR AND ADDED THE SAME IN TH E HANDS OF THE ASSESSEE IN ALL THE ASSESSMENT YEARS UNDER CONSIDERATION. BES IDES THE ABOVE, THE ASSESSING OFFICER ALSO ADDED THE FOLLOWING AMOUNTS AS THE INCOME OF THE ASSESSEE IN THE YEARS MENTIONED BELOW:- ASSESSMENT YEAR : 2004-05 AWARD RECEIVED -RS.4,14,643/- ASSESSMENT YEAR : 2005-06 CASH CREDIT AD DITION U/S 68 -RS.2,00,000/- REJECTION OF EXEMPTION U/S 10 -RS. 24,600/- LOW DRAWINGS -RS. 40,520/- REJECTION OF CHAPTER VIA DEDUCTION -RS. 4,525/- ASSESSMENT YEAR : 2006-07 LOW DRAWINGS -RS. 55,595/- REJECTION OF CHAPTER VIA DEDUCTION -RS. 78,123/- ASSESSMENT YEAR : 2007-08 CASH CREDIT ADDITION U/S 68 -RS.11,02,533/- ADDITION U/S 69C -RS.12,00,000/- ADDITION U/S 69 -RS.2,22,00,000/- REJECTION OF DEDUCTION U/S 80D -RS. 7,188/- ASSESSMENT YEAR 2008-09 ADDITION U/S 69C -RS. 15,00,000/- UNDISCLOSED CASH -RS. 2,00,000/- REJECTION OF CHAPTER VIA DEDUCTION -RS. 1,00,000/- I.T.A. NO. 8616 TO 8621/MUM/2011 3 ASSESSMENT YEAR 2009-10 UNDISCLOSED INCOME -RS. 1,05,27,800/- ADDITION U/S 69C -RS. 50,000/- UNDISCLOSED SALARY -RS. 18,00,000/- UNDISCLOSED BANK INTEREST -RS. 15,000 /- IN THE APPELLATE PROCEEDINGS, THE LD CIT(A) ALSO CO NFIRMED THE ABOVE SAID ADDITIONS. 4. ON A PERUSAL OF THE ORDERS PASSED BY LD CIT (A), WE NOTICE THAT THE FIRST APPELLATE AUTHORITY HAS CONFIRMED THE ADDITIONS MAD E BY THE ASSESSING OFFICER BY GIVING PROPER REASONS. BEFORE US, THE ASSESSEE DID NOT FURNISH ANY MATERIAL TO CONTRADICT THE FINDINGS GIVEN BY LD CIT(A). UNDER THESE CIRCUMSTANCES, WE HAVE NO OTHER OPTION, BUT TO CONFIRM THE ORDERS PASSED B Y LD CIT(A). 5. IN THE RESULT, ALL THE APPEALS FILED BY THE ASSE SSEE ARE DISMISSED. THE ABOVE ORDER WAS PRONOUNCED IN THE OPE N COURT ON 12TH SEPT, 2014. ,- ( . /0 1 2 12TH SEPT , 2014 - ' 3) 4 SD SD ( . . / H.L. KARWA ) ( . . , / B.R. BASKARAN) / PRESIDENT / ACCOUNTANT MEMBER / ( ) MUMBAI : 12TH SEPT, 2014 . . . ./ SRL , SR. PS ! ' / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. !' / THE RESPONDENT. 3. ( 9* ( ) / THE CIT(A)- CONCERNED 4. ( 9* / CIT CONCERNED 5. 6. :; 3 !*< , + < , / ( ) / DR, ITAT, MUMBAI CONCERNED 3 = ) / GUARD FILE. > ( / BY ORDER, TRUE COPY ? $ (ASSTT. REGISTRAR) + < , / ( ) /ITAT, MUMBAI