Appeal details
Counselvise Citation
[2011] 140 COUNSELVISE.COM (IT) 54631 (ITAT-KOLKATA)
Assessee PAN
Bench
Appeal Number
Duration Of Justice
4 month(s) 3 day(s)
Appellant
Respondent
Appeal Type
Income Tax Appeal
Pronouncement Date
28-10-2011
Appeal Filed By
Assessee
Bench Allotted
A
Assessment Year
2006-2007
Appeal Filed On
24-06-2011
Judgement Text
, , IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH: KOL KATA () BEFORE , /AND , ! . '# . ) [BEFORE SRI MAHAVIR SINGH, JM & SHRI C. D. RAO, AM] $ $ $ $ / I.T.A NO. 936/KOL/2011 %& '( %& '( %& '( %& '(/ // / ASSESSMENT YEAR : 2006-07 SARDAR JODH SINGH VS. ASST. COMMISSIONER OF IN COME-TAX, (PAN : AJVPS 5033 M) CENTRAL CIRCLE-XXIII, KOLKA TA. (*+ /APPELLANT ) (,-*+/ RESPONDENT ) DATE OF HEARING: 20.10.2011 DATE OF PRONOUNCEMENT: 28.10.2011 FOR THE APPELLANT : SHRI S. L. KOCHAR FOR THE RESPONDENT: SHRI D. R. SINDHAL . / ORDER PER MAHAVIR SINGH, JM ( , , , , ) THIS APPEAL BY ASSESSEE IS ARISING OUT OF ORDER OF CIT(A), CENTRAL(A)-III, KOLKATA IN APPEAL NO 292/CC-XXIII/CIT(A)/C-III/08-09 DATED 12. 05.2011. ASSESSMENT WAS FRAMED BY ACIT, C.C-XXIII, KOLKATA U/S. 153A/143(3) OF THE INCOME TAX ACT, 1961 (HEREINAFTER REFERRED TO AS THE ACT) FOR ASSESSMENT YEAR 2006- 07 VIDE DATED 31.12.2009. 2. THE ONLY ISSUE IN THIS APPEAL OF ASSESSEE IS AG AINST THE ORDER OF CIT(A) CONFIRMING THE ADDITION OF RS. 2 LACS OUT OF ADDITION MADE BY ASSESSING OFFICER AT RS.4 LACS BEING UNEXPLAINED EXPENDITURE ON ACCOUNT OF HOUSEHOLD EXP ENSES IN VIEW OF SEIZED PAPERS IDENTIFIED AND MARKED AS JS-7, U/S. 69 OF THE ACT. 3. WE HAVE HEARD RIVAL SUBMISSIONS AND GONE THROUGH FACTS AND CIRCUMSTANCES OF CASE. WE FIND THAT ASSESSING OFFICER DURING THE COURSE OF ASSESSMENT PROCEEDINGS NOTED THAT OUT OF BUNCH OF SEIZED PAPERS, ONE SEIZED PAPER IDENTIF IED AND MARKED AS JS-7, PAGES 2 TO 18 DISCLOSED HOUSEHOLD EXPENSES INCURRED BY ASSESSEE A ND HIS FAMILY MEMBERS, WHICH WAS FOUND DURING THE COURSE OF SEARCH ON THE PREMISES O F THE ASSESSEE ON 16.11.2006. WE FIND THAT THE ASSESSING OFFICER REQUIRED THE ASSESSEE TO EXPLAIN THE EXPENDITURE AND ASSESSEE WHILE DEPOSING BEFORE ASSESSING OFFICER VIDE QUESTI ON/ANSWER NO. 16 DATED 17.12.2008 WAS ASKED AS TO WHETHER ALL EXPENSES NOTED IN SEIZE D PAPER MARKED AS JS-7 PAGES 2 TO 18 IS FROM REGULAR ACCOUNTS OR OUT OF UNDISCLOSED INCOME. THE ASSESSEE REPLIED THAT PART OF THE EXPENDITURE HAVE BEEN MET BY HIM AND HIS FAMILY MEM BERS FROM THEIR REGULAR ACCOUNTS AND BALANCE HAS BEEN MET OUT OF UNDISCLOSED INCOME NOT ACCOUNTED FOR. ACCORDINGLY, 2 ITA 936/K/2011 SARDAR JODH SINGH.., A.Y.2006-07 ASSESSING OFFICER IN VIEW OF ORDER SHEET NOTING FOR ASSESSMENT YEAR 2001-02 DATED 19.12.2008 WHERE ASSESSEE ADMITTED THAT THIS BALANC E EXPENDITURE PERTAINS TO FAMILY MEMBERS OF THE ASSESSEE FOR THE RELEVANT ASSESSMENT YEAR 2006-07 AND 2007-08 AND WAS MET BY ASSESSEE, HE ESTIMATED HOUSEHOLD EXPENSES AT RS.4 LACS AS UNEXPLAINED EXPENDITURE AND ADDED THE SAME U/S. 69C OF THE ACT IN VIEW OF S EIZED PAPER MARKED AS JS-7 PAGES 2 TO 18. THE CIT(A) RESTRICTED THE ADDITION AT RS.2 LAC S AND DELETED THE BALANCE RS.2 LACS BY HOLDING THAT THE ESTIMATE OF EXPENDITURE IS ON HIGH ER SIDE AND HE RESTRICTED THE ESTIMATION AT RS.2 LACS BY HOLDING THAT THE ASSESSEE HIMSELF ADMI TTED SOME UNEXPLAINED EXPENDITURE. AGGRIEVED NOW, ASSESSEE IS IN APPEAL BEFORE US. 4. WE FIND THAT BOTH THE AUTHORITIES BELOW HAVE ADM ITTED THAT THE HOUSEHOLD EXPENDITURE MENTIONED IN THE SEIZED PAPERS WERE FOU ND FROM THE RESIDENCE OF THE ASSESSEE DURING THE COURSE OF SEARCH AND WERE AVAILABLE BEFO RE ASSESSING OFFICER DURING THE COURSE OF ASSESSMENT PROCEEDINGS. WHEN THESE WERE CONFRONT ED TO THE ASSESSEE, HE CLEARLY ADMITTED PART OF EXPENDITURE HAVING BEEN MET BY HIM AND HIS FAMILY MEMBERS FROM REGULAR ACCOUNTS AND PART FROM UNDISCLOSED SOURCES FOR WHIC H INCOME IS NOT ACCOUNTED FOR. EVEN BEFORE US, THE ASSESSEE COULD NOT EXPLAIN PROPERLY AS TO HOW THE ESTIMATION MADE BY CIT(A) IS WRONG PARTICULARLY IN VIEW OF THE FACT TH AT HE HAS RELIED ON SEIZED PAPER IDENTIFICATION MARK JS-7 SEIZED DURING THE COURSE O F SEARCH, WHICH RECORDED HOUSEHOLD EXPENSES AT PAGES 2 TO 18. SINCE THE REVENUE HAS N OT POINTED OUT THE TOTAL EXPENDITURE BONE BY ASSESSEE ON ACCOUNT OF UNEXPLAINED INCOME O R THE EXPENDITURE BEING UNDISCLOSED, WE ARE OF THE VIEW THAT A FURTHER REDUCTION OF RS.1 LAC WILL MEET THE END OF JUSTICE. HENCE, WE RETAIN THE ADDITION AT RS. 1 LAC OUT OF TOTAL AD DITION MADE BY ASSESSING OFFICER AT RS.4 LACS. ACCORDINGLY, WE DELETE THE ADDITION OF RS. 1 LAC AND RETAIN THE BALANCE RS.1 LAC. APPEAL OF ASSESSEE IS PARTLY ALLOWED. 5. IN THE RESULT, APPEAL OF THE ASSESSEE IS PARTLY ALLOWED. 6. ORDER PRONOUNCED IN OPEN COURT ON 28.10.2011. SD/- SD/- . '# '#'# '# . ! , (C. D. RAO) (MAHAVIR SINGH) ACCOUNTANT MEMBER JUDICIAL MEMBER ( #! #! #! #!) )) ) DATED : 28TH OCTOBER, 2011 /0 %12 3 JD.(SR.P.S.) 3 ITA 936/K/2011 SARDAR JODH SINGH.., A.Y.2006-07 . 4 ,5 6 5'7- COPY OF THE ORDER FORWARDED TO: 1 . *+ / APPELLANT SHRI SARDAR JODH SINGH, C/O, S. L. KOCH AR, ADVOCATE, 86, CANNING STREET, KOL-1. 2 ,-*+ / RESPONDENT, ACIT, C.C-XXIII, KOLKATA. 3 . .% ( )/ THE CIT(A), KOLKATA 4. .% / CIT, KOLKATA 5 . >? ,% / DR, KOLKATA BENCHES, KOLKATA -5 ,/ TRUE COPY, .%@/ BY ORDER, 2 /ASSTT. REGISTRAR .
