ACHIN AGARWAL, Jaipur V. DCIT, Alwar

ITA 864/JPR/2013

• Counselvise Citation: 86423114 RSA 2013
• Duration Of Justice: 3 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-03-2014
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: A
• Assessment Year: 2009-2010
• Appeal Filed On: 18-11-2013
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: A K KHANDELWAL
• Assessee Lawyers: S L PODDAR
• Keywords: Income from undisclosed sources; Loose papers; Revised return
• Section: 153A

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL JAIPUR BENCH, JAIPUR ( BEFORE SHRI HARI OM MARATHA AND SHRI N.K. SAINI ) ITA NO. 864/JP/2013 ASSESSMENT YEAR: 2009-2010 PAN: AGSPA 3547 J SHRI ACHIN AGARWAL VS. THE DCIT 5/2, PUNJABI BAGH EXTN. CENTRAL CIRCLE CLUB ROAD, DELHI ALWAR (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI S.L.PODDAR DEPARTMENT BY : SHRI A.K. KHANDELWAL DATE OF HEARING : 28.01.2014. DATE OF PRONOUNCEMENT : 05.03.2014 ORDER PER HARI OM MARATHA, J.M. THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST TH E ORDER OF THE LD CIT(A), ALWAR DATED 18-10-2013 FOR THE A.Y. 2009-10 . 2.1 BRIEFLY STATED, THE FACTS OF THE CASE ARE THAT DURING SEARCH IN THE AGARWAL GROUP, SHRI PRADEEP AGARWAL, FATHER OF THE ASSESSEE HAD SURRENDERED AND DISCLOSED INCOME OF RS. 2.50 CRORES AS UNEXPLAINED INCOME 2 OF M/S. RAGHUVEER METAL INDUSTRIES FOR THE F.Y. 200 8-09 THROUGH HIS LETTER DATED 02-12-2008. HE HAS MENTIONED THAT THE AMOUNT OF RS. 2.50 CRORES WOULD COVER ENTIRE LOOSE PAPERS PERTAINING TO M/S. RAGHUVEER METAL INDUSTRIES AND SHRI PRADEEP AGARWAL AND SHRI ASHIS H AGARWAL WHO HAVE ROUTED THROUGH AND INTRODUCED THE UNDISCLOSED INCOM E AS CAPITAL AND LOAN IN THE BOOKS OF ACCOUNT OF THE COMPANY MENTIONED IN PA GE NO. 21 TO 23 OF ANNEXURE A-5 SEIZED DURING THE COURSE OF SEARCH AN D WILL FILE THE ASSESSEE WISE BIFURCATION AFTER RECEIVING THE PHOTOCOPIES AN D SEIZED PAPER. IN HIS LETTER DATED 20-01-2009, HE GAVE BIFURCATION OF UNA CCOUNTED INCOME INTRODUCED INCLUDING THIS ASSESSEE NAMELY SHRI ACHI N AGARWAL IN WHOSE SHARE RS. 5,04,690/- HAS BEEN MENTIONED AND WAS ST ATED TO BE UNACCOUNTED INCOME BUT IN THE RETURN OF INCOME [ROI] FILED IN C OMPLIANCE OF NOTICE U/S 153A OF THE ACT, THE ASSESSEE DID NOT INCLUDE THIS SURRENDERED AMOUNT. WHEN THE ASSESSEE WAS ASKED TO EXPLAIN, IT WAS STATED TH AT DUE TO INADVERTENCE OF THE ACCOUNTANT OF THE ASSESSEE, THE INCOME OF RS. 5 ,04,690/- WHICH WAS SURRENDERED DURING SEARCH COULD NOT BE DISCLOSED IN THE RETURN OF INCOME FILED, THEREAFTER. HE ALSO SUBMITTED A REVISED COMP UTATION OF INCOME BUT DID NOT FILE A REVISED RETURN. ON THESE FACTS, THE A.O. HAS FOUND THAT THE ASSESSEE HAS DELIBERATELY RETRACTED FROM SURRENDER MADE DURI NG POST SEARCH PROCEEDINGS AND HAS MISREPRESENTED THE FACTS BY FIL ING THE REVISED 3 COMPUTATION. ACCORDINGLY, THIS ENTIRE AMOUNT HAS BE EN ADDED IN THE HANDS OF THE ASSESSEE AND CONSEQUENTLY PENALTY PROCEEDINGS U /S 271AAA HAS BEEN INITIATED. 2.2 BEFORE, THE LD CIT(A), IT WAS STATED THAT THE A .O. HAS NOT DISCUSSED OR SPECIFIED ANY INCRIMINATING MATERIAL FOUND DURING T HE COURSE OF SEARCH RELATING TO THIS ASSESSEE PERTAINING TO A.Y.2009-1 0 WHICH IS UNDER CONSIDERATION. THE ADDITION IS STATED TO BE BASED S OLELY ON THE STATEMENTS OF SURRENDER MADE BY SHRI PRADEEP AGARWAL, FATHER OF T HE ASSESSEE BEFORE THE INVESTIGATION WING. IT WAS STATED THAT THE ASSESSEE DID NOT MAKE ANY SURRENDER OF INCOME AND THAT NO INVESTMENT IN M/S. RAGHUVEER METAL INDUSTRIES HAS BEEN MADE BY HIM IN THE FORM OF UNSE CURED LOANS AND CAPITAL. IT WAS ALSO STATED THAT THIS ADDITION IS BASED ON NO EVIDENCE AS NO INCRIMINATING EVIDENCE WAS FOUND DURING SEARCH. HOW EVER, AFTER CONSIDERING THE ABOVE CONTENTIONS OF THE ASSESSEE VIS A VIS THE OBSERVATIONS OF THE A.O., THE LD CIT(A) HAS CONFIRMED THIS ADDITION OF RS. 5, 04,690/-. 2.3 THE ASSESSEE IS FURTHER AGGRIEVED AND HAS FILED THIS APPEAL. IN ALL TWO MATERIAL GROUNDS HAVE BEEN RAISED. GROUND NO 1 IS A LEGAL GROUND WHICH CHALLENGES THE VERY FRAMING OF ASSESSMENT ORDER U/S 153A/143(3) OF THE ACT ON THE PLEA THAT IT IS VOID AB-INITIO. THIS GROUND WAS NOT PRESSED BY THE LD. 4 AR AT THE TIME OF HEARING. THEREFORE, THIS GROUND O F THE ASSESSEE STANDS DISMISSED AS NOT PRESSED. 3.1 THE FACTS APROPOS GROUND NO.2, PERTAINING TO TH E IMPUGNED ADDITION OF RS. 5,04,690/- HAS ALREADY BEEN NARRATED ABOVE. 3.2 WE HAVE HEARD THE RIVAL SUBMISSIONS AND HAVE CA REFULLY PERUSED THE ENTIRE MATERIAL ON RECORD. BOTH THE PARTIES HAVE RE ITERATED THEIR EARLIER SUBMISSIONS, CONTENTIONS AND ARGUMENTS MADE OR ADVA NCED BEFORE THE AUTHORITIES BELOW. IN OTHER APPEALS OF THIS GROUP R ELATING TO DIFFERENT PERSONS LIKE SMT. GEETA AGARWAL AND SHRI PRADEEP AGARWAL WH ERE SIMILAR ADDITIONS WERE MADE ON THE BASIS OF SIMILAR REASONINGS HAVE BEEN DELETED BY US VIDE SEPARATE ORDERS. THE FACTS IN RE ADDITION OF RS. 5,04,690/- ARE MUTATIS MUTANDIS IDENTICAL. WE HAVE FOUND THAT THE SURRENDE R WAS NEVER MADE BY THIS ASSESSEE. THIS ASSESSEE NEVER AGREED EITHER BEFORE HIM OR BEFORE THE INVESTIGATION WING WITH THE SURRENDER IS MADE BY HI S FATHER. HIS FATHER WAS NOT AUHORISED BY HIM TO MAKE ANY SUCH STATEMENT. NO INVESTIGATION IN THE CASE OF M/S. RAGHUVEER METAL INDUSTRIES WAS DONE. A CCORDINGLY, WITH THE SIMILAR REASONINGS AND DECISIONS, WHICH ARE REPEAT ED IN THE WRITTEN SUBMISSION OF THIS ASSESSEE, WE DELETE THE IMPUGNE D ADDITION AND ALLOW GROUND NO 2 OF THIS APPEAL. 5 4.0 IN THE RESULT, APPEAL OF THE ASSESSEE IS PARTL Y ALLOWED. THE ORDER IS PRONOUNCED IN THE OPEN COURT ON 05-0 3-2014. SD/- SD/- ( N.K. SAINI ) (HARI OM MARATHA ) ACCOUNTANT MEMBER JUDICIAL MEMBER *MISHRA COPY FORWARDED TO :- 1. SHRI ACHIN AGARWAL, DELHI 2. THE DCIT, CENTRAL CIRCLE, ALWAR 3. THE LD.CIT(A) 3. THE LD CIT 4. THE D/R 5. GUARD FILE (ITA NO.864/JP/2013) BY ORDER, AR ITAT, JAIPUR 6