Manoj Vishwanath Patil, Jalgaon V. Deputy Commissioner of Income-Tax, Circle -1, Nashik

ITA 937/PUN/2022

AI Insights

The case involves Manoj Vishwanath Patil, the proprietor of Vishwanath R. Patil Jewellers, who appealed against the order of the CIT(A) confirming the addition of Rs.4,18,259 to his income for the assessment year 2018-19. This amount was initially identified during a survey under section 133A of the Income-tax Act, 1961, where a paper showing Majuri payments to job workers was found. The assessee admitted to the payment and included it as income in his tax return. However, the Assessing Officer made a separate addition, which was contested in the appeal. The Tribunal, after considering the written submissions and the circumstances of the case, decided in favor of the assessee, leading to the deletion of the addition.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 124183 (ITAT-PUNE)
• Duration Of Justice: 2 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-03-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 13-03-2023
• Assessment Year: 2018-2019
• Appeal Filed On: 21-12-2022
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 250

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH, PUNE BEFORE SHRI R.S. SYAL, VICE PRESIDENT आयकर अपील सं. /ITA No.937/PUN/2022 नधा रण वष / Assessment Year : 2018-19 Manoj Vishwanath Patil, Prop. of Vishwanath R. Patil Jewellers, Shop No.16, D.H. Plaza Market, Saraf Bazar, Jalgaon – 425 001 Maharashtra PAN : AKEPP6782E Vs. DCIT, Central Circle-1, Nashik Appellant Respondent आदेश / ORDER PER R.S. SYAL, VP: This appeal by the assessee arises out of the order dated 30-11-2022 passed by the CIT(A) u/s. 250 of the Income-tax Act, 1961 (hereinafter also called ‘the Act’) in relation to the assessment year 2018-19. 2. The only issue raised through various grounds is against the confirmation of addition of Rs.4,18,259/-. 3. Briefly stated, the facts of the case are that a survey action was taken against the assessee u/s.133A of the Act on 25-10-2018. A paper containing Majuri payment to job workers amounting to Assessee by None Revenue by Shri Mahesh Jasnani Date of hearing 14-03-2023 Date of pronouncement 15-03-2023 ITA No. 937/PUN/2022 Manoj Vishwanath Patil 2 Rs.4,18,259/- was found. As per this paper, the payment was made through cheques. When asked about the proof of payment with the help of bank statement, the assessee submitted that he had already paid the said amount in cash and it was still appearing as payable in records. This all was submitted in response to question No.23 raised during the course of survey. In the same answer, the assessee also offered the unrecorded payment of Rs.4,18,259/- as his additional income for the A.Y. 2018-19 under consideration. Return was filed declaring total income at Rs.32,15,710/-. On perusal of the return, the Assessing Officer (AO) observed that the total income of Rs.32,15,710/- included a sum of Rs.4,18,259/- on account of income declaration u/s.133 as shown in the Profit and loss account. He noticed that if the amount of Rs.4,18,259/- was removed from the total net profit declared at Rs.34,92,838/-, the remaining net profit would come to Rs.30,74,579/- as against the net profit of Rs.32,02,636/- offered during the course of survey. He, therefore, made an addition of Rs.1,28,057/- on this score, apart from making addition of Rs.4,20,271/- in question as ‘Income from other sources’ determining total income at Rs.36,23,209/-. No relief was allowed in the first appeal, against which the assessee has come up in appeal before the Tribunal. ITA No. 937/PUN/2022 Manoj Vishwanath Patil 3 4. I have heard the ld. DR and gone through the relevant material on record. There is no appearance from the side of the assessee despite notice. However, the assessee had filed written submissions and requested for disposal of the appeal based on such submissions only. As such, I am proceeding to dispose of the appeal ex parte qua the assessee but on the strength of the written submissions. 5. The addition of Rs.4,18,259/- is based on the paper found during the course of survey, containing payment of Majuri which was made in cash outside the books but the amount was still shown as payable. Pursuant to this, the assessee offered income of Rs.4,18,259/- during the course of survey. Thereafter, e-return was filed, as noted by the AO on page 4 of his order: “showing total income of Rs.32,15,710/- (including Rs.4,18,259/- on account of INCOME DECLARATION u/s.133 as shown in profit and loss account for the year ended 31-03- 2018)”. Thus, it is apparent that the assessee did include a sum of Rs.4,18,259/- in its income-tax return for the year under consideration. If the income offered was included in the return of income, the AO ought not to have treated this amount as separate calling for an addition u/s.69C of the Act. At this stage, it is relevant to mention that income-tax return for the year under consideration was due at the ITA No. 937/PUN/2022 Manoj Vishwanath Patil 4 time of survey. Once the position is such that the assessee agreed for income during the course of survey and included it in his total income while filing the return, in my considered opinion, there was no point of making a separate addition on this score. I, therefore, order to delete the addition. 6. In the result, the appeal is allowed. Order pronounced in the Open Court on 15 th March, 2023. Sd/- (R.S.SYAL) VICE PRESIDENT पुणे Pune; िदनांक Dated : 15 th March, 2023 सतीश आदेश की ितिलिप अ ेिषत/Copy of the Order is forwarded to : 1. अपीलाथ / The Appellant; 2. थ / The Respondent 3. 4. 5. The Pr.CIT concerned DR, ITAT, ‘SMC’ Bench, Pune गाड फाईल / Guard file. आदेशानुसार/ BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अिधकरण ,पुणे / ITAT, Pune ITA No. 937/PUN/2022 Manoj Vishwanath Patil 5 Date 1. Draft dictated on 14-03-2023 Sr.PS 2. Draft placed before author 14-03-2023 Sr.PS 3. Draft proposed & placed before the second member JM 4. Draft discussed/approved by Second Member. JM 5. Approved Draft comes to the Sr.PS/PS Sr.PS 6. Kept for pronouncement on Sr.PS 7. Date of uploading order Sr.PS 8. File sent to the Bench Clerk Sr.PS 9. Date on which file goes to the Head Clerk 10. Date on which file goes to the A.R. 11. Date of dispatch of Order. *