Archit Agarwal, Maharashtra V. ACIT, Circle-2(1), Bhubaneswar

ITSSA 1/CTK/2016

• Counselvise Citation: [2017] 122 COUNSELVISE.COM (IT) 3538 (ITAT-CUTTACK)
• Duration Of Justice: 1 year(s) 7 month(s) 22 day(s)
• Appeal Type: Income Tax (Search & Seizure) Appeal
• Pronouncement Date: 28-12-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2006-2007
• Appeal Filed On: 06-05-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PIYUSH KOLHE
• Assessee Lawyers: NONEWRITTEN SUBMISSION
• Keywords: Unexplained cash credit; Salary income
• Section: 15

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL CUTTACK BENCH CUTTACK BEFORE SHRI N.S.SAINI, AM & SHRI PAV AN KUMAR GADALE, JM IT (SS) A NO. 01&02 / CTK /20 1 6 ( / ASSESSMENT YEAR S : 20 06 - 2007 & 2007 - 08 ) SHRI ARCHIT AGARWA L, A - 301, OM ASHISH CHS LTD, LIBERTY GARDEN CROSS ROAD NO.4, MALAD (WEST), MUMBAI - 751007 VS. ACIT, CIRCLE - 2(1), BHUBANESWAR ./ ./ PAN/GIR NO. : A H W PA 5329 G ( / APPELLANT ) .. ( / RESPONDENT ) /AS SESSEE BY : NONE(WRITTEN SUBMISSION) /REVENUE BY : SHRI PIYUSH KOLHE , CIT DR / DATE OF HEARING : 26 / 1 2 /201 7 / DATE OF PRONOUNCEMENT 28 / 1 2 /201 7 / O R D E R PER BENCH : TH ESE APPEALS HAVE B EEN FILED BY THE ASSESSEE AGAINST THE ORDER OF CIT(A) - 3 , BHUBANESWAR , BOTH DATED 27.01.2016 FOR THE ASSESSMENT YEARS 2006 - 07 & 2007 - 08. IT(SS)A NO.01/CTK/2016 (AY: 2006 - 2007) 2. IN THIS APPEAL THE GRIEVANCE OF THE ASSESSEE IS THAT THE CIT(A) HAS ERRED IN P ARTLY CONFIRMING THE ADDITION OF THE AO WITH RESPECT TO INVESTMENT IN PPF AND LIC . 3. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE HAS EARNED INCOME AS EMPLOYEE OF M/S ARSS INFRASTRUCTURE PROJECT LTD., WHERE SEA RCH & SEIZURE WAS CONDUCTED ON 06.10.2010 AND ALSO CONSEQUENTIAL SEARCH & SEIZURE OPERATION S IN THE PREMISE S OF THE ASSESSEE. IN RESPONSE TO NOTICE U/S.153A, THE ASSESSEE FILED RETURN OF INCOME ON 14.01.2013 DECLARING IT (SS) A NO. 01&02 /CTK/201 6 2 TOTAL INCOME OF RS. 63 , 060 / - . THE AO COMPLETED THE ASSESSMENT MAKING ADDITION OF OPENING BALANCE OF CAPITAL AS UNEXPLAINED CASH CREDIT RS.4,82,315/ - AND ASSESSED THE TOTAL INCOME OF THE ASSESSEE AT RS. 5,45,380 / - VIDE ORDER U/S.153A/143(3) OF THE ACT, DATED 31.3.2013 . 4. AGAINST THE ORDER OF A O, THE ASSESSEE PREFERRED AN APPEAL BEFORE THE CIT(A). THE CIT(A) AFTER CONSIDERING THE SUBMISSIONS OF ASSESSEE AND FINDINGS OF AO HAS DELETED THE ADDITION OF OPENING BALANCE OF CAPITAL ACCOUNT BUT DUE TO NON - SUBMISSION OF SOURCES FOR INVESTMENT IN PPF AN D LIC AND HAS RESTRICTED THE ADDITION TO RS.94,890/ - AND PARTLY ALLOWED THE APPEAL OF THE ASSESSEE. 5. AGAINST THE ORDER OF CIT(A), THE ASSESSEE IS IN FURTHER APPEAL BEFORE WITH THE TRIBUNAL. 6 . NONE APPEARED ON BEHALF OF THE ASSESSEE, HOWEVER, THE ASSESSE E HAS FILED WRITTEN SUBMISSION. 7 . CONTRA, LD. DR RELIED ON THE ORDERS OF AUTHORITIES BELOW. 8 . WE HAVE HEARD THE LD. DR AND CONSIDERED THE WRITTEN SUBMISSIONS FILED BY THE ASSESSEE AND PERUSED THE MATERIAL ON RECORD. LD. DRS CONTENTION THAT THE CIT(A) HA S GRANTED RELIEF DELETING THE ADDITION OF THE OPENING BALANCE IN THE CAPITAL ACCOUNT BUT SUSTAINED THE ADDITION TO THE EXTENT OF RS.94,890/ - AS THE ASSESSEE COULD NOT EXPLAIN IN THE APPELLATE PROCEEDING THE SOURCE S OF INVESTMENT IN PPF RS.50000/ - AND LIC O F RS.46,890/ - , WHEREAS THE ASSESSEE HAS FILED COPY OF CONFIRMATION OF ACCOUNTS / ADVANCES AND ALSO SALARY CERTIFICATE TO SUPPORT THE SOURCES. W E ARE OF THE OPINION THAT THE DOCUMENTS EXPLAINING SOURCE S FOR INVESTMENT IN IT (SS) A NO. 01&02 /CTK/201 6 3 PPF & LIC WERE NOT EXAMINED AND VERIFI ED BY THE AO . A CCORDINGLY, WE REMIT THIS DISPUTED ISSUE TO THE FILE OF AO TO VERIFY THE CLAIM AND PROVID E ADEQUATE OPPORTUNITY OF HEARING TO THE ASSESSEE BEFORE PASSING THE ORDER . TH E APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. IT(SS)A NO. 0 2 /CTK/2016 (AY: 200 7 - 200 8 ) 9 . IN THIS APPEAL THE GRIEVANCE OF THE ASSESSEE THAT THE CIT(A) IS NOT JUSTIFIED IN CONFIRMING THE ADDITION ON ACCOUNT OF PROFIT EARNED FROM SHARE TRADING AND DENIAL OF CLAIM UNDER CHAPTER VI - A OF THE ACT . 10 . BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE HA S DISCLOSED SALARY INCOME WHEREAS SEARCH & SEIZURE OPERATION WAS CONDUCTED ON 06.10.2010 AT M/S ARSS INFRASTRUCTURE PROJECT LTD. AND CONSEQUENTIAL SEARCH & SEIZURE OPERATION WAS CONDUCTED IN THE PREMISES OF THE ASSESSEE. IN R ESPONSE TO NOTICE U/S.153A, THE ASSESSEE FILED RETURN OF INCOME ON 14.01.2013 DECLARING TOTAL INCOME OF RS.56,940/ - . THE AO COMPLETED THE ASSESSMENT MAKING ADDITION OF RS.72,462/ - AS PROFIT EARNED FROM SHARE TRADING AND DENIED CLAIM OF RS.41,624/ - UNDER CHAPTER VI - A FOR WANT OF EVIDENCE AND ASSESSED INCOME OF RS.1,71,026/ - U/S.153A/143(3) OF THE ACT, DATED 31.3.2013 . 11 . AGAINST THE ORDER OF AO, THE ASSESSEE PREFERRED APPEAL BEFORE THE CIT(A). THE CIT(A) CONFIRMED THE ADDITION OF RS.72,462/ - AS THE ASSESSEE NEITHER FILED ANY PLAUSIBLE REPLY BEFORE THE AO NOR BEFORE HIM AND CONFIRMED THE ADDITION OF RS.41,624/ - UNDER CHAPTER VI - A AS THE SAME WAS NOT CLAIMED IN RETURN OF INCOME. IT (SS) A NO. 01&02 /CTK/201 6 4 12 . NONE APPEARED ON BEHALF OF THE ASSESSEE, HOWEVER, THE ASSESSEE HAS FILED WRITTEN SUBMISSION. 13 . CONTRA, LD . DR RELIED ON THE ORDERS OF AUTHORITIES BELOW. 14 . WE HAVE HEARD THE LD. DR AND THE WRITTEN SUBMISSIONS FILED BY THE ASSESSEE AND MATERIAL ON RECORD. ON THE FIRST ISSUE OF DISALLOWANCE MADE BY THE AO IN RESPECT OF INCOME FROM SHARE PROFIT . THE ASSESSEE H AS NOT FILED THE DETAILS IN THE APPELLATE PROCEEDINGS OR BEFORE THE TRIBUNAL. HENCE, WE ARE OF THE OPINION THAT THE CIT(A) HAS DEALT ON THE SUBMISSIONS OF THE ASSESSEE AND FINDINGS OF AO AND TOOK A REASONED DECISION . HENCE, WE ARE NOT INCLINED TO INTERFERE WITH THE ORDER OF CIT(A) ON THIS GROUND AND CONFIRM THE SAME AND T HIS GROUND OF APPEAL OF ASSESSEE IS DISMISSED. 15 . ON THE SECOND DISPUTED ISSUE OF CLAIM OF DEDUCTION U/S.80C UNDER CHAPTER VI - A OF THE ACT THE ASSESSEE HAS MADE THE PAYMENT OF LIC OF RS.41 ,624/ - AND SUPPORTED WITH THE COPY OF INCOME TAX RETURN ACKNOWLEDGEMENT AND THE COMPUTATION SHEET DISCLOSING THE CLAIM MADE A CLAIM OF DEDUCTION BUT THE CIT(A) OBSERVED THAT THE ASSESSEE HAS NOT CLAIMED THE DEDUCTION UNDER CHAPTER VI - A OF THE ACT IN THE I NCOME TAX RETURN. PRIMA FACIE, WE ARE OF THE OPINION THESE FACTS WERE NEITHER CONSIDERED BY THE AO NOR BY THE CIT(A). THEREFORE, IN THE INTEREST OF SUBSTANTIAL JUSTICE AND THE FACT THAT THE ASSESSEE HAS MADE PAYMENT /LIC PREMIUM WHICH IS NOT IN DISPUTE . ACC OR D INGLY , WE REMIT THE ISSUE TO THE FILE OF AO TO VERIFY AND ALLOW THE CLAIM OF ASSESSEE AFTER AFFORDING ADEQUATE OPPORTUNITY OF HEARING TO THE ASSESSEE. THIS GROUND OF APPEAL OF ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. IT (SS) A NO. 01&02 /CTK/201 6 5 16 . IN THE RESULT, APPEAL OF T HE ASSESSEE I.E. IT(SS)A NO. 01/CTK/2016 IS ALLOWED FOR STATISTICAL PURPOSES AND IT(SS)A NO.02/CTK/2016 IS ALLOWED PARTLY FOR STATISTICAL PURPOSES. O RDER PRONOUNCED IN THE OPEN COURT ON THIS 28 / 12 / 201 7 . SD/ - ( N. S. SAINI ) SD/ - ( PA V AN KUMAR G ADALE ) / ACCOUNTANT MEMBER / JUDICIAL MEMBER CUTTACK ; DATED 28 / 1 2 /201 7 . . / PKM , SENIOR PRIVATE SECRETARY / COPY OF THE ORDER FORWARDED TO : / BY ORDER, ( SENIOR PRIVATE SECRETARY ) , / ITAT, CUTTACK 1. / THE APPELLANT - 2. / THE RESPONDENT - 3. ( ) / THE CIT(A), 4. / CIT 5. , , / DR, ITAT, CUTTACK 6. / GUARD FILE. //TRUE COPY//