Gunjan P.Kakkad L/h of Late P. P. Kakkad, Ahmedabad V. The DY.CIT., Cent.Circle-2(4), Ahmedabad

ITSSA 127/AHD/2006

• Counselvise Citation: [2012] 124 COUNSELVISE.COM (IT) 7832 (ITAT-AHMEDABAD)
• Duration Of Justice: 5 year(s) 8 month(s)
• Appeal Type: Income Tax (Search & Seizure) Appeal
• Pronouncement Date: 25-01-2012
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 18-01-2012
• Assessment Year: misc
• Appeal Filed On: 25-05-2006
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: KARTAR SINGH
• Assessee Lawyers: J P SHAH
• Keywords: Opportunity of cross examination; Block assessment
• Section: 132

Judgement Text

IT (SS ).NO.127/AHD/2006 IT(SS) NO.183/ AHD/2006 BLOCK PERIOD 1-4-9 6 TO 21-6-2002. 1 IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH, A HMEDABAD (BEFORE SHRI G.C. GUPTA,VICE PRESIDENT AND SHRI B. R. BASKARAN,AM) I.T.(SS) A. N O. 127/AHD/2006 (BLOCK PERIOD 1-4-1996 TO 21-6-2002) GUNJAN P. KAKKAD L.R. OF LATE SHRI PRAVINBHAI P. KAKKAD THROUGH LEGAL HEIR, 7-A, ALAUKIK APARTMENT, NAVRANGPURA, AHMEDABAD. (APPELLANT) VS. DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE 2(4), AAYKAR BHAVAN, ASHRAM, ROAD, AHMEDABAD. (RESPONDENT) I.T.(SS) A. NO. 183/AHD/2006 (BLOCK PERIOD 1-4-1996 TO 21-6-2002) INCOME TAX OFFICER, WARD 2(3), 2 ND FLOOR, INSURANCE BUILDING ASHRAM ROAD, AHMEDABAD. (APPELLANT) VS. GUNJAN P. KAKKAD L.R. OF LATE SHRI PRAVINBHAI P. KAKKAD THROUGH LEGAL HEIR, 7-A, ALAUKIK APARTMENT, NAVRANGPURA, AHMEDABAD. (RESPONDENT) PAN: AGJPK 3869 Q APPELLANT BY : MR. J. P.SHAH. RESPONDENT BY : MR. KARTAR SINGH, CIT (DR) ( )/ ORDER DATE OF HEARING : 18-1-2012 DATE OF PRONOUNCEMENT : 25-1-2012 PER: SHRI B.R. BASKARAN, ACCOUNTANT MEMBER. THESE CROSS APPEALS ARE DIRECTED AGAINST THE ORDER DATED 31.3.2006 PASSED BY LD CIT(A)-III, AHMEDABAD AND THEY RELATE TO THE BLO CK PERIOD FROM 1.4.1996 TO 21.6.2002. IT (SS ).NO.127/AHD/2006 IT(SS) NO.183/ AHD/2006 BLOCK PERIOD 1-4-9 6 TO 21-6-2002. 2 2. THE ASSESSEE WAS SUBJECTED TO SEARCH PROCEED ING U/S 132 OF THE ACT ON 21.6.2002. ACCORDINGLY THE BLOCK ASSESSMENT WAS CO MPLETED BY DETERMINING THE UNDISCLOSED INCOME AT RS.21,31,278/-. THE ASSESSEE CHALLENGED TWO ADDITIONS, WHICH WERE MADE ON THE BASIS OF SLIPS FOUND DURING THE COURSE OF SEARCH VIZ., RS.11.00 LAKHS, RS.7,15,500/- AND ALSO ANOTHER ADDI TION OF RS.3,15,778/- RELATING TO THE DEPOSITS MADE IN A BANK ACCOUNT. THE LD CIT (A) CONFIRMED THE ADDITION OF RS.3,15,778/- AND DELETED OTHER TWO ADDITIONS. AGGR IEVED BY THE ORDER OF LD CIT (A), BOTH THE PARTIES ARE IN APPEAL BEFORE US ON TH E ISSUES DECIDED AGAINST EACH OF THEM. 3. WE HAVE HEARD THE RIVAL CONTENTIONS AND CARE FULLY PERUSED THE RECORD. WITH REGARD TO THE ADDITION OF RS.11.00 LAKHS AND RS.7,1 5,500/-, WE NOTICE THAT THE AO HAS RELIED UPON CERTAIN LOOSE SLIPS, WHICH HE COULD NOT CONCLUSIVELY PROVE THAT THE ENTRIES THEREIN REPRESENT THE UNDISCLOSED INCOME OF THE ASSESSEE. ACCORDINGLY THE LD CIT (A) HAS DELETED BOTH THE ADDITIONS. FOR THE DETAILED REASONS GIVEN BY THE FIRST APPELLATE AUTHORITY, WE DO NOT FIND ANY INFIR MITY IN THE DECISION OF LD CIT (A) IN DELETING BOTH THE ADDITIONS. 4. WITH REGARD TO THE ADDITION OF RS.3,15,778/-, WE NOTICE THAT THE HOLDER OF THE S.B. ACCOUNT NAMED SHRI PRAVIN C PATEL HAS CATEGORI CALLY STATED IN THE SWORN STATEMENT THAT THE SAID ACCOUNT WAS OPENED BY HIM A T THE INSTRUCTION OF HIS EMPLOYER AND THERE AFTER HANDED OVER THE CHEQUES AN D PASS BOOK TO THE ASSESSEE HEREIN. ACCORDINGLY, THE LD CIT (A) CONFIRMED THE SAID ADDITION WITH THE FOLLOWING OBSERVATIONS:- I HAVE CAREFULLY CONSIDERED THE RELEVANT FACTS AND PROVISIONS OF LAW WITH REGARD TO THE ISSUE INVOLVED. I FIND THAT THE APPELLANT HAD PROXIMITY WITH THE EMPLOYER OF SHRI PRAVINBHAI C PATEL AND AC CORDINGLY AN IT (SS ).NO.127/AHD/2006 IT(SS) NO.183/ AHD/2006 BLOCK PERIOD 1-4-9 6 TO 21-6-2002. 3 ACCOUNT IN THE NAME OF SHRI PRAVINBHAI C. PATEL WAS OPENED. THE OPPORTUNITY OF CROSS EXAMINATION OF SHRI PRAVINBHAI C. PATEL WAS ALSO DULY PROVIDED TO THE APPELLANT DURING THE COURSE OF APPELLATE PROCEEDINGS, DURING WHICH, SHRI PRAVINBHAI C. PATEL CLAIMED THAT THE ABOVE ACCOUNT WAS THOUGH STANDING IN HIS NAME, BUT THE TRANSACTIONS IN THE SAME WERE CARRIED OUT BY THE APPELLANT. THE AO HAS ELABORATED ON THE MATTER IN HIS REMAND REPORT OF 30-08-2005, REFE RRED TO ABOVE. I, THEREFORE, FIND THAT THERE WAS ENOUGH MATERIAL ON R ECORD WHICH INDICATED THAT IT WAS THE APPELLANT WHO FACTUALLY OPERATED TH E S.B. ACCOUNT NO.587 WHICH WAS MAINTAINED IN THE NAME OF SHRI PRA VINBHAI C. PATEL. THE AO WAS, THEREFORE, JUSTIFIED IN ADDING THE TOTA L DEPOSITS TO THE TUNE OF RS.3,15,778/- IN THE ABOVE BANK ACCOUNT. THE CON SEQUENTIAL ADDITION OF RS.3,15,778/- MADE BY THE AO ON THIS ACCOUNT IS, THEREFORE, CONFIRMED. THUS ON A CAREFUL PERUSAL OF THE OBSERVATIONS OF LD CIT (A), WE NOTICE THAT THE FIRST APPELLATE AUTHORITY HAS TAKEN A CONSCIOUS DECISION ON THIS ISSUE ON THE BASIS OF FACTS AND CIRCUMSTANCE SURROUNDING THE SAME. ACCORDINGLY , WE DO NOT FIND ANY INFIRMITY IN HIS DECISION ON THIS ISSUE. 5. IN THE RESULT, THE APPEALS OF BOTH THE PA RTIES ARE DISMISSED. ORDER PRONOUNCED IN OPEN COURT ON 25-1-2012 SD/- SD/- (G.C.GUPTA) (B.R.BASKARAN) VICE PRESIDENT ACCOUNTANT MEMBER AHMEDABAD. S.A.PATKI. IT (SS ).NO.127/AHD/2006 IT(SS) NO.183/ AHD/2006 BLOCK PERIOD 1-4-9 6 TO 21-6-2002. 4 COPY OF THE ORDER FORWARDED TO: - 1. THE APPELLANT. 2. THE RESPONDENT. 3. THE CIT (APPEALS)-III, AHMEDZBAD.. 4. THE CIT CONCERNED. 5. THE DR., ITAT, AHMEDABAD. 6. GUARD FILE. BY ORDER DEPUTY/ASSTT.REGISTRAR ITAT,AHMEDAB AD. 1.DATE OF DICTATION 20 - 01 -2012 2.DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE TH E DICTATING 20 /01 / 2012 MEMBER.OTHER MEMBER. 3.DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR. P.S./P.S 23 - 01 -2012. 4.DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE DICTATING MEMBER FOR PRONOUNCEMENT 25 - 01-2012 5.DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR .P.S./P.S 25 - 01 -2012 6.DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 25 - 01 -2012. 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