M/s. G.S. Investment, Anand V. The ACIT.,Cent.Circle-1, Baroda

ITSSA 122/AHD/2009

• Counselvise Citation: [2011] 124 COUNSELVISE.COM (IT) 7921 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 2 month(s) 7 day(s)
• Appeal Type: Income Tax (Search & Seizure) Appeal
• Pronouncement Date: 21-12-2011
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Next Hearing Date: 19-12-2011
• Assessment Year: 2006-2007
• Appeal Filed On: 14-10-2009
• Result in Favour of: Assessee
• Court: TRIBUNAL

Judgement Text

- 1 - IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCH C AHMEDABAD BEFORE S/SHRI D.K.TYAGI, JM AND A. MOHAN ALANKAMON Y, AM. IT(SS)A NO.122/AHD/2009 ASST. YEAR:2006-07 M/S G. S. INVESTMENT, 57, SARDARGUNJ BAZAR, ANAND. VS. ASSTT. C.I.T., CEN.CIR- 1, BARODA. (APPELLANT) .. (RESPONDENT) APPELLANT BY :- SHRI ASEEM L. THAKKAR, AR RESPONDENT BY:- SHRI VINOD TANWANI, SR.DR DATE OF HEARING :21/12/2011 DATE OF PRONOUNCEMENT : 21.12.11. O R D E R PER D. K. TYAGI, JUDICIAL MEMBER . THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST TH E ORDER OF LD. CIT(A) DATED MARCH 18, 2009 FOR ASST. YEAR 2006-07. THE ASSESSEE HAS RAISED FOLLOWING GROUNDS IN THIS APPEAL :- (1) THE LD. CIT(A) HAS ERRED IN CONFIRMING THE ADDITION OF RS.35,000/- MADE BY THE AO FOR ALLEGED INFLATED EXP ENSES THOUGH NONE OF THE EXPENSES ARE INFLATED AND THE SA ME ARE INCURRED FOR THE BUSINESS. (2) THE LD. CIT(A) HAS ERRED IN CONFIRMING THE ADDITION MADE BY THE AO SOLELY ON THE BASIS OF STATEMENT OF ONE OF T HE PARTNERS OF THE FIRM RECORDED DURING THE COURSE OF SURVEY U/S 1 33A OF THE IT ACT, 1961. IT(SS)A NO.122/AHD/2009 ASST. YEAR 2006-07 2 (3) THE LD. CIT(A) HAS ERRED IN CONFIRMING THE ADDITION MADE BY THE AO WITHOUT POINTING OUT ANY DEFECT OR IRREGULAR ITY IN THE ACCOUNTS OF THE FIRM REGARDING INFLATION OF EXPENSE S. 2. BRIEF FACTS OF THE CASE ARE THAT DURING COURSE O F SURVEY, STATEMENT OF ONE OF THE PARTNERS OF THE ASSESSEE FIRM MR. PANKAJ J. PATEL WAS RECORDED IN WHICH HE HAD ADMITTED THAT THE FIRM HAD INFLATED EXPENSES TO THE TUNE OF RS.35,000/- FOR ASST. YEAR 2006-07 AND RS.1,27,5 00/- FOR ASST. YEAR 2005-06. AFTER THE SURVEY THE ASSESSEE FILED ITS RE TURN OF INCOME SHOWING NIL INCOME. WHEN THE ASSESSEE WAS CONFRONTED BY THE AO ABOUT THE STATEMENT RECORDED AT THE TIME OF SURVEY, THE ASSES SEES CONTENTION WAS THAT STATEMENT WAS RECORDED UNDER MISS-REPRESENTATI ON OF FACTS BY THE SURVEY TEAM. KEEPING IN MIND THE ADMISSION, THIS AD DITION OF RS.35,000/- WAS MADE TO THE TOTAL INCOME OF ASSESSEE FOR ASST. YEAR 2006-07 AND RS.1,27,500/- FOR ASST. YEAR 2005-06. THIS ACTION O F THE AO WAS CONFIRMED BY THE LD. CIT(A) WHEN ASSESSEE WENT IN A PPEAL BEFORE HIM. 3. SINCE WE HAVE SET ASIDE THE ORDER OF LD. CIT(A) RESTORING THE MATTER BACK TO HIS FILE FOR FRESH ADJUDICATION FOR ASST. Y EAR 2005-06VIDE OUR ORDER OF EVEN DATE IN IT(SS)A NO. 121/AHD/2009, FOR THIS YEAR ALSO THE MATTER IS RESTORED BACK TO THE FILE OF LD. CIT(A) F OR FRESH ADJUDICATION, AS THE BASIS FOR THE ADDITIONS IN BOTH THE YEARS, IS T HE STATEMENT OF THE PARTNER AT THE TIME OF SURVEY. THE APPEAL FILED BY THE ASS ESSEE IS ALLOWED FOR STATISTICAL PURPOSES. IT(SS)A NO.122/AHD/2009 ASST. YEAR 2006-07 3 4. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER WAS PRONOUNCED IN OPEN COURT ON 21.12.11. SD/- SD/- (A. MOHAN ALANKAMONY) (D.K. TYAGI) ACCOUNTANT MEMBER JUDICI AL MEMBER AHMEDABAD, MAHATA/- COPY OF THE ORDER FORWARDED TO :- 1. THE ASSESSEE. 2. THE REVENUE. 3. THE CIT(APPEALS)- 4. THE CIT CONCERNS. 5. THE DR, ITAT, AHMEDABAD 6. GUARD FILE. BY ORDER, DEPUTY / ASSTT.REGISTRAR ITAT, AHMEDABAD 1.DATE OF DICTATION 21/12/2011. 2.DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE TH E DICTATING MEMBER.OTHER MEMBER 22/12/2011 3.DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR. P.S./P.S. 4.DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE DICTATING MEMBER FOR PRONOUNCEMENT.. 5.DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR .P.S./P.S 6.DATE ON WHICH THE FILE GOES TO THE BENCH CLERK .. 7.DATE ON WHICH THE FILE GOES TO THE HEAD CLERK . 8.THE DATE ON WHICH THE FILE GOES TO THE ASSTT. REG ISTRAR FOR SIGNATURE ON THE ORDER 9.DATE OF DESPATCH OF THE ORDER..