DCIT CIR 6(3)(2), MUMBAI V. KAPADIA ASSOCIATES P.LTD, MUMBAI

ITA 89/MUM/2016

• Counselvise Citation: [2018] 126 COUNSELVISE.COM (IT) 0638 (ITAT-MUMBAI)
• Duration Of Justice: 2 year(s) 1 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-02-2018
• Appeal Filed By: Department
• Order Result: Partly Allowed
• Bench Allotted: Not Allotted
• Assessment Year: 2012-2013
• Appeal Filed On: 07-01-2016
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: RAJESH KUMAR YADAV
• Assessee Lawyers: GAUTAM R MOTA
• Keywords: Assessment record

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, MUMBAI BENCH A, MUMBAI BEFORE SHRI D.T. GARASIA, JUDICIAL MEMBER AND SHRI RAJESH KUMAR, ACCOUNTANT MEMBER ITA NO.89/M/2016 ASSESSMENT YEAR: 2012-13 DCIT, CIR. 6(3)(2), R.NO.522, 5 TH FLOOR, AAYAKAR BHAVAN, M.K. ROAD, MUMBAI - 20 VS. M/S. KAPADIA ASSOCIATES PVT. LTD., 112/114, PENINSULA CENTRE, DR. S.S. RAO ROAD, OFF. DR. AMBEDKAR ROAD, PAREL, MUMBAI-400 012 PAN: AAACK2687E (APPELLANT) (RESPONDENT) CO NO.215/M/2016 ASSESSMENT YEAR: 2012-13 M/S. KAPADIA ASSOCIATES PVT. LTD., 112/114, PENINSULA CENTRE, DR. S.S. RAO ROAD, OFF. DR. AMBEDKAR ROAD, PAREL, MUMBAI-400 012 PAN: AAACK2687E VS. DCIT, CIR. 6(3)(2), R.NO.522, 5 TH FLOOR, AAYAKAR BHAVAN, M.K. ROAD, MUMBAI - 20 (APPELLANT) (RESPONDENT) PRESENT FOR: ASSESSEE BY : SHRI GAUTAM R. MOTA, A.R. REVENUE BY : SHRI RAJESH KUMAR YADAV, D.R. DATE OF HEARING : 04.01.2018 DATE OF PRONOUNCEMENT : 09.02.2018 O R D E R PER D.T. GARASIA , JUDICIAL MEMBER: THE ABOVE TITLED APPEAL BY THE REVENUE AND THE CROS S OBJECTION BY THE ASSESSEE HAVE BEEN PREFERRED AGAINST THE ORD ER DATED 07.10.2015 OF THE COMMISSIONER OF INCOME TAX (APPEA LS) ITA NO.89/M/2016 CO NO.215/M/2016 M/S. KAPADIA ASSOCIATES PVT. LTD. 2 [HEREINAFTER REFERRED TO AS THE CIT(A)] RELEVANT TO ASSESSMENT YEAR 2012-13. 2. THE SHORT FACTS OF THE CASE ARE AS UNDER: THE ASSESSEE IS ENGAGED IN THE BUSINESS OF ARCHITE CT AND DESIGNING. ON PERUSAL OF RECONCILIATION OF 26AS TH E ASSESSING OFFICER (HEREINAFTER REFERRED TO AS THE AO) FOUND T HAT THERE WAS AN UNACCOUNTED AND UNDISCLOSED INCOME OF RS.1,50,000/- RECEIVED FROM SAVVY SIDDHI REALITY & INFRASTRUCTURE LLP WHICH IS IN PATTERN OF 26AS AND WHICH IS IN DISAGREEMENT WITH THE ASSESSEE S BOOKS OF ACCOUNT. 3. MATTER CARRIED TO THE LD. CIT(A) AND THE LD. CIT (A) HAS PARTLY ALLOWED THE APPEAL OF THE ASSESSEE BY OBSERVING AS UNDER: IT IS SEEN THAT THE INCOME OF RS.1,50,000/- HAS BE EN OFFERED FOR INCOME BY THE APPELLANT IN THE NEXT ASSESSMENT YEAR AFTER DUE REC ONCILIATION OF 26AS STATEMENT. THUS, THE A.O. IS DIRECTED TO VERIFY THE SAME FROM THE ASSESSMENT RECORD OF 2013- 14 AND THEN ALLOW IT. GROUND OF APPEAL NO. 4 IS PAR TLY ALLOWED. 4. SECOND ISSUE IS THAT DURING THE COURSE OF ASSESS MENT PROCEEDINGS ASSESSEE WAS ASKED TO RECONCILE THE AIR INFORMATION IN RESPECT OF MUTUAL FUND INVESTMENT. THE ASSESSEE WAS UNABLE TO EXPLAIN THE INVESTMENT. THEREFORE, THE AO MADE THE ADDITION. THE MATTER CARRIED TO THE LD. CIT(A) AND THE LD. CIT(A) HAS ALLOWED BY OBSERVING AS UNDER: IT IS SEEN THAT THE ENTIRE RECONCILIATION OF THE M UTUAL FUNDS INVESTMENT ALONG WITH THE SOURCE THEREOF AS PER THE AIR INFORMATION HAS B EEN SUBMITTED BY THE APPELLANT BEFORE THE A.O. DURING THE COURSE OF ASSESSMENT. HO WEVER, IT IS SEEN THAT THE A.O. HAS MADE THE ADDITION OF RS. 80,00,000/- WITHOUT VE RIFYING THE DIFFERENCE BETWEEN THE AIR INFORMATION ALONG WITH THE APPELLANT'S BOOK S OF ACCOUNT. THE A.O. IS ITA NO.89/M/2016 CO NO.215/M/2016 M/S. KAPADIA ASSOCIATES PVT. LTD. 3 DIRECTED TO CARRY OUT NECESSARY VERIFICATION AND TH EN ALLOW THE SAME, IF IT IS TO BE ALLOWED. THEREFORE, GROUND OF APPEAL NO. 5 IS PARTL Y ALLOWED. 5. DURING THE COURSE OF HEARING, WE FIND THAT THE L D. D.R. HAS OBJECTED TO THE DIRECTION GIVEN BY THE LD. CIT(A) O N THE GROUND THAT LD. CIT(A) HAS NO POWER TO GIVE DIRECTION. THEREFO RE, DEPARTMENT HAS FILED THE APPEAL. 6. WE FIND THAT LD. CIT(A) HAS NO POWER TO SET ASIDE THE ISSUE BUT TRIBUNAL HAS ALL THE POWERS. THEREFORE, WE DIRECT ACCORDINGLY. 7. IN THE RESULT, THE APPEAL OF THE REVENUE IS PAR TLY ALLOWED AND THE CROSS OBJECTION OF THE ASSESSEE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 09.02.2018. SD/- SD/- (RAJESH KUMAR) (D.T. GARASIA) ACCOUNTANT MEMBER JUDICIAL MEMBER MUMBAI, DATED: 09.02.2018. * KISHORE, SR. P.S. COPY TO: THE APPELLANT THE RESPONDENT THE CIT, CONCERNED, MUMBAI THE CIT (A) CONCERNED, MUMBAI THE DR CONCERNED BENCH //TRUE COPY// [ BY ORD ER DY/ASSTT. REGISTRAR, ITAT, MUMBAI.