The ACIT, Circle-12, Ahmedabad V. M/s. New Timber Market Association, Ahmedabad

ITSSA 124/AHD/2005

• Counselvise Citation: [2012] 124 COUNSELVISE.COM (IT) 7825 (ITAT-AHMEDABAD)
• Duration Of Justice: 6 year(s) 9 month(s) 3 day(s)
• Appeal Type: Income Tax (Search & Seizure) Appeal
• Pronouncement Date: 19-01-2012
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 20-12-2011
• Assessment Year: misc
• Appeal Filed On: 15-04-2005
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: JASBIR S CHOUHAN
• Keywords: Block assessment

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, A BENCH, AHMEDABAD BEFORE SHRI G. C. GUPTA, HONBLE VICE PRESIDENT AND SHRI A. K. GARODIA, ACCOUNTANT MEMBER I.T.(SS). NO.124 / AHD/2005 (BLOCK PERIOD 1.4.1989 TO 31.3.1999 & 1.4.1999 TO 2.12.1999) ACIT, CIRCLE 12, AHMEDABAD VS. M/S. NEW TIMBER MARKET ASSOCIATION, BEHRAMPURA, AHMEDABAD PAN/GIR NO. : -- (APPELLANT) .. (RESPONDENT) APPELLANT BY: SHRI JASBIR S CHOUHAN, SR. DR RESPONDENT BY: SHRI DHIREN SHAH, AR DATE OF HEARING: 20.12.2011 DATE OF PRONOUNCEMENT: 19.01.2012 O R D E R PER SHRI A. K. GARODIA, AM:- THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER OF LD. CIT (A) XVIII, AHMEDABAD DATED 10.02.2005 FOR THE BLOCK PERIOD 01.04.1989 TO 02.12.1999. THE GROUNDS RAISED BY THE REVENUE A RE AS UNDER: 1) THE LD. CIT(A) ERRED ON FACTS AND IN LAW IN DEL ETING THE ADDITION OF RS.33,91,111/- MADE BY THE A.O. ON ACCO UNT OF UNDISCLOSED INCOME. 2) ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CAS E, THE LD. CIT (A) OUGHT TO HAVE UPHELD THE ORDER OF THE A.O. 2. LD. D.R. SUPPORTED THE ASSESSMENT ORDER WHEREAS THE LD. A.R. SUPPORTED THE ORDER OF LD. CIT (A). HE FURTHER SUB MITTED THAT THE GROUND RAISED BY THE REVENUE ARE REGARDING MERITS OF THE A DDITION MADE BY THE I.T.(SS).NO. 124 /AHD/2005 2 A.O. AND DELETED BY LD. CIT (A) BUT IN THE IMPUGNED ORDER, LD. CIT (A) HAS ALSO HELD THAT THE PROCEEDINGS U/S 158BD ARE BA D IN LAW AND ON THIS LEGAL ASPECT, NO GROUND HAS BEEN RAISED BY THE REVE NUE AND HENCE, THE ISSUE RAISED BY THE REVENUE ON MERIT IS OF ACADEMIC INTEREST ONLY. 3. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS, PERUSE D THE MATERIAL ON RECORD AND HAVE GONE THROUGH THE ORDERS OF AUTHORIT IES BELOW. WE FIND THAT AS PER PARA 10 OF HIS ORDER, IT IS HELD BY THE LD. CIT(A) THAT PROCEEDINGS U/S 158 BD IN THE PRESENT CASE ARE UNWA RRANTED AND BAD IN LAW AND CONSEQUENTLY, BLOCK ASSESSMENT ORDER PASSED DESERVES TO BE CANCELLED. FOR THE SAKE OF READY REFERENCE, WE REP RODUCE THE RELEVANT PARA 10 OF THE ORDER OF LD. CIT (A):- 10. THE STATEMENT OF FACTS', THE WRITTEN SUBMISS IONS AND THE PAPER BOOK CONTAINING COPIES OF EVIDENCES HAVE BEEN PERUSED AND CONSIDERED SO ALSO THE, CONTENTIONS OF THE A',O. TA KEN IN THE ASSESSMENT ORDER. THE REASONING OF THE A.O. PRECISE LY IS THAT IF SHRI RAJAIWALA RECEIVED SOME AMOUNT, IT MUST HAVE B EEN PAID BY SOMEBODY. MOREOVER, SHRI RAJAIWALA AGITATED NOT TO HAVE CONTESTED THE ADDITION OF RS.17 LAKHS MADE IN HIS T HE A.O. THEREFORE HAS HELD THAT THE UNACCOUNTED BY THE APPE LLANT. HOWEVER, IT IS STRONGLY ARGUED ON BEHALF OF THE APPELLANT TH AT ITS' NAME HAS NOT APPEARED ON ANY OF THE PAPERS SEIZED FROM SHRI RAJAIWALA. THE A.O. WHO MADE ASSESSMENT IN THE CASE OF RAJAIWALA H AS NOT MADE ANY REFERENCE OF THE APPELLANT IN HIS ORDER. IN THE CIRCUMSTANCES, PROCEEDINGS U/S 158 BD IN THE CASE OF THE APPELLANT WERE UNWARRANTED AND ALSO BAD INLAW. CONSEQUENTLY, BLOCK ASSESSMENT ORDER PASSED DESERVES TO BE CANCELLED. THIS ARG UMENT HAS CONSIDERABLE FORCE IN VIEW : OF THE FACTS AND CIRCUMSTANCES SUBMITTED, .MOREOVER, IN THE ASSESSMENT ORDER MADE IN THE CASE OF SHRI JAYANTIBHAI P. PATEL U/S.158BC THE NAME OF THE APPELLANT IS NOT APPEARING. IN THE CIRCUMSTANCES, THE CHALLENGE TO THE LEGALITY OF THE ASSESSMENT ORDER CANNOT BE OUTRIGHT REJECTED. N OW, LET US EXAMINE THE ADDITIONS MADE, ON MERITS. 4. AS PER ABOVE PARA OF THE ORDER OF LD. CIT(A), WE FIND THAT ON TECHNICAL ASPECT, IT IS HELD BY THE LEARNED CIT (A) THAT THE BLOCK I.T.(SS).NO. 124 /AHD/2005 3 ASSESSMENT ORDER PASSED BY THE A.O. IS BAD IN LAW A ND DESERVES TO BE CANCELLED. NO GROUND HAS BEEN RAISED BY THE REVENU E AGAINST THIS FINDING OF LD. CIT(A) AND HENCE, GROUND RAISED BY THE REVEN UE ON MERIT IS OF ACADEMIC INTEREST ONLY AND HENCE, THE SAME ARE NOT BEING DECIDED. 5. IN THE RESULT, THE APPEAL OF THE REVENUE STANDS DISMISSED IN THE TERMS INDICATED ABOVE. 6. ORDER PRONOUNCED IN THE OPEN COURT ON THE DATE M ENTIONED HEREINABOVE. SD.- SD./- (G. C. GUPTA) (A. K. GARODIA) VICE PRESIDNET ACCOUNTANT MEMBER SP COPY OF THE ORDER FORWARDED TO: 1. THE APPLICANT 2. THE RESPONDENT 3. THE CIT CONCERNED 4. THE LD. CIT (APPEALS) 5. THE DR, AHMEDABAD BY ORDER 6. THE GUARD FILE AR,ITAT,AHMEDABAD 1. DATE OF DICTATION 12/01/2012. 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER 13/01/2012.OTHER MEMBER 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 D ICTATING MEMBER FOR PRONOUNCEMENT 19/01 5. DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR. P.S./P.S.23/01 6. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 23/01/2012 7. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK .. 8. THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT RE GISTRAR FOR SIGNATURE ON THE ORDER . 9. DATE OF DESPATCH OF THE ORDER.