ACIT, Jaipur V. LAL CHAND MITTAL, Jaipur

ITA 946/JPR/2013

• Counselvise Citation: 94623114 RSA 2013
• Duration Of Justice: 1 year(s) 11 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-11-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2008-2009
• Appeal Filed On: 03-12-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MEENA DHK
• Keywords: Retraction

Judgement Text

VK;DJ VIHYH; VF/KDJ.K] T;IQJ U;K;IHB] T;IQJ IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES (SMC), JAIPUR JH VKJ-IH-RKSYKUH] U;KF;D LNL; DS LE{K BEFORE: SHRI R.P. TOLANI, JUDICIAL MEMBER VK;DJ VIHY LA-@ ITA NO. 946/JP/2013 FU/KZKJ.K O'K Z@ ASSESSMENT YEAR : 2008-09 THE ACIT CENTRAL CIRCLE- 3, JAIPUR CUKE VS. SHRI LAL CHAND MITTAL B-18, CHOMU HOUSE, SARDAR PATEL ROAD, JAIPUR LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN/GIR NO .: ANSPC 9789 P VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT FU/KZKFJRH DH VKSJ LS@ ASSESSEE BY : SHRI VIJAY GOYAL AND SHRI GULSHAN AGARWAL, CA JKTLO DH VKSJ LS@ REVENUE BY :SHRI M.S. MEENA,- CIT-DR LQUOKBZ DH RKJH[K@ DATE OF HEARING : 30/11/2015 ?KKS'K .KK DH RKJH[K@ DATE OF PRONOUNCEMENT : 30 /11/2015 VKNS'K@ ORDER PER R.P. TOLANI, JM THIS IS REVENUE APPEAL, ARISING FROM THE ORDER OF L D. CIT(A) CENTRAL JAIPUR; DATED. 1-10-13. SOLE GROUND RAISED IS AS UNDER: ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE , THE LD. CIT(A) HAS ERRED IN DELETING THE ADDITION OF RS . 10.00 LACS ON ACCOUNT OF UNDISCLOSED INCOME ADMITTED IN THE STATEMENT RECORDED U/S 132(4) OF THE I.T. ACT DURIN G THE COURSE OF SEARCH ON 28-8-2008 AND THIS STATEMENT WA S ALSO ITA NO. 946/JP/2013 THE ACIT, CENTRAL CIRCLE- 3, JAIPUR VS. SHRI LAL CH AND MITTAL, JAIPUR . 2 CONFIRMED BY SHRI RADHEY SHAYM MITTAL, KEY PERSON O F THE GROUP INITIALLY DURING THE COURSE OF SEARCH AND AGA IN REAFFIRMED DURING POST SEARCH PROCEEDINGS ON 5-09-2 008. FURTHER THE STATEMENT WAS NOT RETRACTED TILL 31-03- 2009. 2.1 LD. CIT(DR) RELIED ON THE ORDER OF AO AND CONTE NDS THAT LD. CIT(A) DELETED THE ADDITION MERELY RELYING ON ASSES SEES RETRACTION. IT HAS NOT BEEN APPRECIATED THAT DURING THE COURSE OF SEAR CH OPERATIONS, UNDISCLOSED INCOME OF RS. 10 LACS WAS ADMITTED BY A SSESSEE WITHOUT ANY PRESSURE AND TAXES WERE UNDERTAKEN TO BE PAID ON TH E OFFERED INCOME. 2.2 LD. COUNSEL FOR THE ASSESSEE FILED WRITTEN SUBM ISSIONS AND CONTENDS THAT DURING THE SEARCH NEITHER ANY INCRIMI NATING DOCUMENTS, PAPERS OR ACCOUNTS OF ANY BUSINESS OF MEDICINES WAS SEIZED. BUSINESS OF PHARMACEUTICAL OR MEDICINE CANNOT BE CARRIED OUT WI THOUT STATUTORY DRUG LICENSE. IT HAS NOWHERE MENTIONED THAT ASSESSEE HAD ANY LICENSE. THE STATEMENT WAS RECORDED AND SIGNED BY ASSESSEE AS DI RECTED BY CONCERNED OFFICER. COPY THEREOF WAS NOT SUPPLIED TO ASSESSEE, WHICH GAVE AN IMPRESSION THAT THERE WAS NOTHING ADVERSE THEREIN A GAINST HIM. AFTER REPEATED REQUESTS THE COPY WAS PROVIDED AFTER ONE Y EAR. FINDING THIS WRONG STATEMENT ABOUT CARRYING ON OF MEDICINE BUSIN ESS AND UNJUSTIFIED DISCLOSURE OF RS. 10 LACS, ASSESSEE IMMEDIATELY RET RACTED THE STATEMENT BY ITA NO. 946/JP/2013 THE ACIT, CENTRAL CIRCLE- 3, JAIPUR VS. SHRI LAL CH AND MITTAL, JAIPUR . 3 AN AFFIDAVIT WHICH HAS NOT BEEN CONTROVERTED. SIMIL AR ADDITIONS IN OTHER GROUP CONCERNS HAVE BEEN DELETED BY ITAT, COPIES TH EREOF ARE ON THE PAPER BOOK AND GIST IS MENTIONED IN THE WRITTEN SUB MISSIONS. 2.3 LD. CIT(A) DELETED THE ADDITION BY FOLLOWING IT AT DECISION IN OTHER GROUP CONCERNS OF THE SAME GROUP BY FOLLOWING OBSERVATIONS:- 4.3 I HAVE CAREFULLY PERUSED THE ORDER OF THE AO, SUBMISSION OF THE A.R. AND EVIDENCE AVAILABLE ON RE CORD AND CONCUR WITH THE SUBMISSIONS OF THE A.R. ON THE FOLL OWING GROUNDS:- THE HON'BLE ITAT IN ITS ORDER IN THE CASE OF SHRI RADHEY SHYAM MITTAL VS. DCIT CC-3, (SUPRA) HAS OBSE RVED AS FOLLOWS: THE RELIANCE PLACED BY THE ASSESSEE ON THE JUDGEM ENT BY HON'BLE APEX COURT IN THE CASE OF PULLANGODE RU BBER PRODUCE CO. LTD. (SUPRA) AND HON'BLE RAJASTHAN HIG H COURT IN THE CASE OF ASHOK KUMAR SONI (SUPRA) ARE W ELL PLACED AS THE ASSESSEE HAS SUCCESSFULLY DEMONSTRAT ED THAT THE ADMISSION MADE DURING THE COURSE OF SEARCH IS N OT CORRECT. THE INGREDIENT FOR RETRACTION OF STATEMENT MADE DURING THE SEARCH, THEREFORE, STAND DULY SATISFIED AS THE ASSESSEE IS FOUND TO HAVE MADE RETRACTION WITHIN A REASONABLE TIME IMMEDIATELY AFTER THE COPIES OF STA TEMENT WERE PROVIDED TO HIM. FURTHER MORE, THERE BEING NO MATERIAL OR EVIDENCE ON RECORD TO SHOW THAT APPELLANT HAS CA RRIED ANY BUSINESS OUTSIDE THE BOOKS FOR SALE AND PURCHASE OF ITEMS OF PHARMACEUTICAL COMPANIES THAT COULD GIVE RISE TO IN COME TO THE EXTENT OF RS. 30,00,000/- ADDITION MERELY ON TH E BASIS OF SUCH STATEMENT WHICH STOOD VALIDLY RETRACTED COULD NOT HAVE ITA NO. 946/JP/2013 THE ACIT, CENTRAL CIRCLE- 3, JAIPUR VS. SHRI LAL CH AND MITTAL, JAIPUR . 4 BEEN MADE. ON SIMILAR BASIS AND REASONING IN THE CA SE OF SURESH MEDICAL AGENCY ANOTHER A OF THE GROUP WHO WE RE ALSO SEARCHED ON THE SAME DAY ALONGWITH THIS APPELL ANT VIDE OUR ORDER DATED 21-08-2013 IN ITA NO. 443/JP/2012 H AVE FOUND THE RETRACTION MADE AS VALID AND ALSO DELETED THE ADDITION. WE THEREFORE, FIND NO FACTUAL OR LEGAL JU STIFICATION IN SUSTENANCE OF ADDITION BY LD. CIT(A) IN THIS REG ARD. AS A RESULT, THE ADDITION SUSTAINED BY LD. CIT(A) IS DEL ETED AND GROUND NO. 1 RAISED IN APPEAL IS ALLOWED. CONSIDERING THAT THE HON'BLE ITAT HAS ADJUDICATED ON IDENTICAL FACTS IN THE RELATED CASE OF THE GROUP OF THE APPELLANT, ITS FINDING IS APPLICABLE TO THE FACTS O F THE CASE OF THE APPELLANT. THEREFORE, THE ADDITION OF RS. 10 LA CS MADE ON THE BASIS OF THE STATEMENT OF APPELLANT WITHOUT ANY OTHER CORROBORATING INCRIMINATING EVIDENCE FOUND DURING S EARCH IS COVERED BY THE FINDING OF THE HON'BLE ITAT IN FAVO UR OF THE APPELLANT AND SO DELETED. 2.4 I HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. THE AFFIDAVIT FURNISHED BY THE ASSESSEE HAS NOT BEEN CONTROVERTED IN EFFECTIVE TERMS. ITAT ON SIMILAR FA CTS IN OTHER GROUP CONCERNS BY ORDERS DATED. 26-8-2013 IN THE CASES OF S/SHRI RADHESHYAM MITTAL; MADAN LAL MITTAL; SURESH KUMAR MITTAL AND M /S SURESH MEDICAL AGENCY DELETED THE SIMILAR ADDITIONS. THERE IS NO I NFIRMITY IN THE ORDER OF LD. CIT(A) IN DELETING THE ADDITION BY FOLLOWING TH E ITAT JUDGMENT IN OTHER CASE OF SAME GROUP. SAME IS UPHELD. ITA NO. 946/JP/2013 THE ACIT, CENTRAL CIRCLE- 3, JAIPUR VS. SHRI LAL CH AND MITTAL, JAIPUR . 5 3.0 IN THE RESULT, REVENUE APPEAL IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 30 /11/201 5 SD/- VKJ-IH-RKSYKUH (R.P.TOLANI) U;KF;D LNL;@ JUDICIAL MEMBER TK;IQJ@ JAIPUR FNUKAD@ DATED:- 30/11/ 2015 *MISHRA VKNS'K DH IZFRFYFI VXZSF'KR@ COPY OF THE ORDER FORWARDED TO: 1. VIHYKFKHZ@ THE APPELLANT- THE ACIT, CENTRAL CIRCLE- 3, JAIPUR 2. IZR;FKHZ@ THE RESPONDENT- SHRI LAL CHAND MITTAL, JAIPUR 3. VK;DJ VK;QDRVIHY@ CIT(A). 4. VK;DJ VK;QDR@ CIT, 5. FOHKKXH; IZFRFUF/K] VK;DJ VIHYH; VF/KDJ.K] T;IQJ@ DR, ITAT, JAIPUR 6. XKMZ QKBZY@ GUARD FILE (ITA NO. 946/JP/2013) VKNS'KKUQLKJ@ BY ORDER, LGK;D IATHDKJ@ ASSISTANT. REGISTRAR