Shri Dilip S. Kedia, Gandhidham-Kutch V. The Assistant Commissioner of Income Tax, Central Circle-2, Rajkot

ITSSA 101/RJT/2017

• Counselvise Citation: [2022] 104 COUNSELVISE.COM (IT) 4901 (ITAT-RAJKOT)
• Duration Of Justice: 4 year(s) 4 month(s) 29 day(s)
• Appeal Type: Income Tax (Search & Seizure) Appeal
• Pronouncement Date: 29-03-2022
• Appeal Filed By: Assessee
• Order Result: PartlyAllowed
• Bench Allotted: DB
• Assessment Year: 2013-2014
• Appeal Filed On: 31-10-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 132; 143(3); 153A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL RAJKOT BENCH, RAJKOT (THROUGH VIRTUAL COURT) BEFORE SHRI WASEEM AHMED, ACCOUNTANT MEMBER & Ms. MADHUMITA ROY, JUDICIAL MEMBER I .T .( SS ) A . N o .1 0 1 / R j t/2 0 1 7 ( A ss es s me n t Y e a r : 20 1 3 - 1 4 ) Sh ri D i li p S . K e d ia ( Pr op . of M /s . De e k a y I m pe x) , C / o Sa r da & S a r da , C h ar te re d A cc ou n t an ts , 1 s t F l oo r , “ Sak a r ” , O p p . R aj k u ma r C o lle ge , Dr . R a dha kr i s h na n R o a d, R a jk o t- 36 00 0 1 Vs . A C IT C e n tr al C ir cle - 2 , R aj k o t [P A N N o.AF P P K 1 0 9 8 E] (Appellant) .. (Respondent) Appellant by : Shri Vimal Desai, AR. Respondent by : Shri Aarsi Prasad, CIT D.R. D a t e o f H e a r i n g 09/02/2022 D a t e o f P r o n o u n c e m e n t 30/03/2022 O R D E R PER Ms. MADHUMITA ROY - JM: The instant appeal filed by the assessee is directed against the order dated 27.07.2017 passed by the Commissioner of Income Tax (Appeals)-11, Ahmedabad arising out of the order dated 27.03.2015 passed by the DCIT, Central Circle – 1(4), Ahmedabad under Section 143(3) of the Income Tax Act, 1961 (hereinafter referred to as “the Act”) for the Assessment Year (A.Y.) 2013-14. 2. The assessee originally filed its return of income on 25.09.2013 under Section 139(1) of the Act declaring income at Rs. 49,94,070/-. Prior to that a search under Section 132 of the Act was carried out at the premises of the assessee on 16.05.2012 and 17.05.2012. Thus, proceeding under Section 153A of the Act was initiated for the A.Ys. 2007-08 to 2012-13. Revised return was filed by the assessee on 15.01.2014 declaring - 2 - IT(SS)A No. 101/Rjt/2017 Shri Dilip S. Kedia vs. ACIT Asst.Year – 2013-14 loss of Rs.(-)1,01,25,935/- including undisclosed income of Rs. 14,00,000/-. The assessment was finalized upon making addition of Rs. 18,56,732/- as unaccounted cash thereby assessing the income of the assessee loss at Rs. (-)82,69,203/-. The same was confirmed by the First Appellate Authority. Hence, the instant appeal before us. 3. We have heard the rival submissions made by the respective parties and we have also perused the relevant materials available on record. 4. The fact remains that the assessee during the search proceeding disclosed an amount of Rs. 14,00,000/- to cover up the probable discrepancies and to adhere to the overall disclosure of Rs. 3.5 crores. It is also a fact that cash of Rs. 18,56,732/- was also found during the course of search. Apart from that during the survey at the business premises of the sister concern M/s. Deekay Pince Board Pvt. Ltd. total cash of Rs. 2,80,520/- was found whereas as per book the cash position of the said business as on 16.05.2012 was of Rs. 2,28,288/-. So far as the cash component of Rs. 18,04,500/- found during the course of search is concerned the appellant’s explanation that the said cash was arising from the unaccounted income offered in the earlier years. Except the said unaccounted income no other income was found during the course of search which could be the source of search excess cash. The pleas taken by the assessee that the said income pertains to the earlier was not found acceptable by the Ld. AO since the cash was found in the current year. Further that the excess cash of Rs. 52,232/- found in the business premises of the sister concern was also not explained by the assessee as of the view of the Ld. AO and therefore, the excess cash of Rs. 18,04,500 plus 52,232 is equal to 18,56,732/- has been added to the total income of the assessee which is further been confirmed by the Ld. CIT(A). It is the case of the assessee that the undisclosed income of Rs. 14,00,000/- was arising from the unaccounted income offered in the earlier and therefore, he prays for - 3 - IT(SS)A No. 101/Rjt/2017 Shri Dilip S. Kedia vs. ACIT Asst.Year – 2013-14 setting off of the said amount of Rs. 14,00,000/- as undisclosed income of the assessee against the excess cash found to the tune of Rs. 18,56,732/- during the course of search. 5. In fact, upon perusal of the records it appears that the declaration of total income at Rs. 1,01,25,935/- included the undisclosed income of Rs. 14,00,000/- and therefore, the said amount of Rs. 14,00,000/- has been prayed to be set off against the addition made by the Revenue. 6. It is relevant to mention that such submission made by the Ld. AO has not been controverted by the Ld. DR. Furthermore, under this facts and circumstances of the case we also do not find any reason to deny such stand taken by the assessee and therefore, we allow the set of Rs. 14,00,000/- as undisclosed income of the assessee. The Ld. AO is directed to give relief in terms of the observation made hereinabove. Assessee’s appeal is, therefore, partly allowed. 8. In the result, the appeal preferred by the assessee is partly allowed. This Order pronounced in Open Court on 30/03/2022 Sd/- Sd/- (WASEEM AHMED) (Ms. MADHUMITA ROY) ACCOUNTANT MEMBER JUDICIAL MEMBER Ahmedabad; Dated 30/03/2022 TANMAY, Sr.PS TRUE COPY आदेश क त ल प अ े षत/Copy of the Order forwarded to : 1. अपीलाथ / The Appellant 2. यथ / The Respondent. 3. संबं धत आयकर आय ु त / Concerned CIT 4. आयकर आय ु त(अपील) / The CIT(A). 5. वभागीय त न ध, आयकर अपील!य अ धकरण, अहमदाबाद / DR, ITAT, Rajkot 6. गाड' फाईल / Guard file. आदेशान ु सार/ BY ORDER, उप/सहायक पंजीकार (Dy./Asstt.Registrar) आयकर अपील य अ धकरण, राजोकट / ITAT, Rajkot