SHRI MANJEET SINGH, Bhopal V. THE ITO 3(1), Bhopal

ITA 9/IND/2016

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 5998 (ITAT-INDORE)
• Duration Of Justice: 5 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-06-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 20-06-2016
• Assessment Year: 2010-2011
• Appeal Filed On: 06-01-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MOHD JAVED
• Assessee Lawyers: S S DESHPANDE
• Section: 133A; 148; 139

Judgement Text

MANJEET SINGH ITA NOS. 9 & 10/IND/2016 1 IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH, INDORE BEFORE SHRI D.T. GARASIA, HONBLE JUDICIAL MEMBER ITA NOS. 9 & 10/IND/2016 A.YS.2009-10 & 2010-11 SHRI MANJIT SINGH BHOPAL PAN ACRPS 3030M ::: APPELLANT VS INCOME TAX OFFICER 3(1) BHOPAL ::: RESPONDENT APPELLANT BY SHRI S.S. DESHPANDE RESPONDENT BY SHRI MOHD. JAVED DATE OF HEARING 20.6.2016 DATE OF PRONOUNCEMENT 22.6.2016 O R D E R THESE ARE THE APPEALS FILED BY THE ASSESSEE AGAINST DIFFERENT ORDERS DATED 30.10.2015 OF THE LEARN ED CIT(A), BHOPAL-2. SINCE THE GROUNDS OF APPEAL ARE COMMO N IN BOTH THE APPEALS, WE PROPOSE TO DISPOSE OF THE SAME BY THIS CONSOLIDATED ORDER FOR THE SAKE OF CONVENIENCE. MANJEET SINGH ITA NOS. 9 & 10/IND/2016 2 2. THE ASSESSEE IS AN INDIVIDUAL AND A REGULAR TAX PAYER CARRYING ON BUSINESS OF SUPPLY OF BUILDING MATERIAL AND CIVIL CONTRACTORS. 3. THE FIRST COMMON GROUND IN THESE APPEALS RELATING T O INITIATION OF PROCEEDINGS U/S 148 OF THE ACT WAS NOT PRESSED BY THE LEARNED COUNSEL FOR THE ASSESSEE AT THE TIME OF HEARING. AS SUCH, THE SAME IS DISMISSED. 4. THE SUM AND SUBSTANCE OF GROUND NOS. 2 TO 4 IN THE SE APPEALS IS THAT THE LEARNED CIT(A) WAS NOT JUSTIFIED IN CONFIRMING THE ADDITIONS MADE ON THE BASIS OF DECLARATIO N DURING SURVEY AND WITHOUT ANY EVIDENCE AMOUNTING TO RS .2 LACS (A.Y. 2009-10) AND RS.5,50,000/- (A.Y. 2010-11) AND ON THE ALLEGED UNRECORDED PURCHASES AT RS.1,26,231/- (A.Y.2009-10) AND OF RS.2,97,812/- (A.Y. 2010-11) 5. BRIEFLY STATED, THE FACTS OF THE CASE ARE THAT THE ASSESSEE FILED RETURN OF INCOME U/S 139 OF THE ACT. A SURVEY MANJEET SINGH ITA NOS. 9 & 10/IND/2016 3 U/S 133A OF THE ACT WAS CONDUCTED AT THE BUSINESS PREMISES OF THE ASSESSEE ON 15.4.2010. AS A RESULT OF SURVEY, THE ASSESSEE SURRENDERED AN AMOUNT OF RS. 2 LAC S FOR THE F.Y. 2008-09 AND RS.5.50 LACS FOR THE F.Y. 20 09-10. THE ASSESSING OFFICER, THEREFORE, HOLDING THAT THE S AID INCOME HAD ESCAPED ASSESSMENT, ADDED THE SAME TO THE TOTAL INCOME OF THE ASSESSEE. THE ASSESSING OFFICER ALSO FOUND THAT PURCHASES AMOUNTING TO RS.1,26,231/- (A.Y. 2009-10) AND OF RS.2,97,812/- (A.Y. 2010-11) HAVE NOT BEEN ENTERED IN THE BOOKS OF ACCOUNTS OF THE ASSESSEE . THE LEARNED ASSESSING OFFICER, THEREFORE, ADDED THE SAME T O THE TOTAL INCOME OF THE ASSESSEE AS INCOME FROM UNDISCLOSE D SOURCES. ON APPEAL, THE LEARNED CIT(A) CONFIRMED THE ACTION OF THE ASSESSING OFFICER. NOW THE ASSESSEE IS IN APPEAL BEFORE THE TRIBUNAL. MANJEET SINGH ITA NOS. 9 & 10/IND/2016 4 6. BEFORE ME, THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE SURRENDERED AMOUNT WAS ON ACCOUNT OF UNRECORDED EXPENSES WHICH HAVE BEEN ADDED BY THE ASSESSING OFFICER. HE FURTHER SUBMITTED THAT THIS IN CLUDES THE AMOUNT OF UNRECORDED PURCHASES ALSO. THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED THAT SINCE THE AMOU NT SURRENDERED BY THE ASSESSEE INCLUDES ALL THE UNRECORD ED TRANSACTIONS, NO SEPARATE ADDITION IS CALLED FOR. THE LEA RNED COUNSEL FOR THE ASSESSEE, THEREFORE, PRAYED THAT SINC E THE ACTION OF THE ASSESSING OFFICER AMOUNTS TO MAKING OF DOUBLE ADDITION, THE SAME DESERVES DELETION AS IT WOUL D BE AGAINST THE VERY SPIRIT OF THE INCOME TAX ACT. THE LE ARNED COUNSEL FOR THE ASSESSEE FAIRLY SUBMITTED THAT THE AMO UNT SURRENDERED OF RS. 2 LACS FOR THE ASSESSMENT YEAR 2009 -10 AND RS. 5,50,000/- FOR THE ASSESSMENT YEAR 2010-11 HA S NOT BEEN OFFERED AS INCOME IN THE RETURN. HE, HOWEVE R, MANJEET SINGH ITA NOS. 9 & 10/IND/2016 5 SUBMITTED THAT THAT SINCE THE AMOUNT SURRENDERED BY THE ASSESSEE INCLUDES RS.1,26,231/- (A.Y. 2009-10) AND RS.2,97,812/- (A.Y. 2010-11), IT WOULD BE IN THE IN TEREST OF JUSTICE TO DELETE THE SAME. 7. ON THE OTHER HAND, THE LEARNED DR RELIED UPON THE ORDERS OF THE AUTHORITIES BELOW. 8. I HAVE HEARD BOTH THE SIDES. IT IS CLEAR FROM THE R ECORD THAT THE SURRENDERED AMOUNTS OF RS. 2 LACS AND RS.5,50,000/- IN THE ASSESSMENT YEARS 2009-10 AND 2010 - 11 HAVE NOT BEEN OFFERED AS INCOME IN THE RETURN OF I NCOME. THE ASSESSEE COULD NOT SATISFACTORILY EXPLAIN THE REASON S FOR NOT OFFERING THE SAME AS INCOME, HENCE THE ADDITIO NS IN RESPECT OF SURRENDERED INCOME ARE CONFIRMED. HOWEVER , THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED BEFORE ME THAT THE SURRENDERED AMOUNTS OF RS.2 LACS AND RS. 5,50,000/ - MANJEET SINGH ITA NOS. 9 & 10/IND/2016 6 IN THE ASSESSMENT YEARS, UNDER APPEAL, INCLUDE UNRECORD ED PURCHASES ALSO. I AM, THEREFORE, OF THE VIEW THAT SINC E THE SURRENDERED AMOUNT IS ALREADY INCLUDED AS INCOME, NO SEPARATE ADDITION IS CALLED FOR. THE ADDITION MADE BY THE ASSESSING OFFICER AND CONFIRMED BY THE LEARNED CIT(A) THUS AMOUNTED TO DOUBLE ADDITION. I, THEREFORE, DELETE THE ADDITION OF RS. 1,26,231/- IN THE ASSESSMENT YEAR 2009 -10 AND OF RS.2,97,812/- IN THE ASSESSMENT YEAR 2010-11. I ORDER ACCORDINGLY. 9. IN THE RESULT, BOTH THE APPEALS OF THE ASSESSEE STAN D ALLOWED. PRONOUNCED IN OPEN COURT ON 21 ST JUNE, 2016 SD/- (D.T. GARASIA) JUDICIAL MEMBER 21 ST JUNE, 2016 MANJEET SINGH ITA NOS. 9 & 10/IND/2016 7 DN/- MANJEET SINGH ITA NOS. 9 & 10/IND/2016 8