THE ACIT, CENTRAL-2, Indore V. SHRI PRAKASH CHAND HOTWANI, Mandsaur

ITSSA 14/IND/2016

• Counselvise Citation: [2016] 122 COUNSELVISE.COM (IT) 2236 (ITAT-INDORE)
• Duration Of Justice: 4 month(s) 24 day(s)
• Appeal Type: Income Tax (Search & Seizure) Appeal
• Pronouncement Date: 12-07-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 12-07-2016
• Assessment Year: 2006-2007
• Appeal Filed On: 18-02-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAJEEV VARSHNEY
• Assessee Lawyers: GIRISH AGRAWAL
• Keywords: Loose papers

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL INDORE BENCH, INDORE BEFORE SHRI D.T.GARASIA, HON'BLE JUDICIAL MEMBER AN D SHRI N.S. SAINI, HONBLE ACCOUNTANT MEMBER I.T.(SS)A.NOS. 14 & 15/IND/2016 (ASST. YEAR : 2006-07 & 2007-08) ACIT, CENTRAL 2, INDORE. VS. SHRI PRAKASH CHAND HOTWANI, 92, YASH NAGAR, MANDSAUR PAN NO. AAFPH1461B (APPELLANT) (RESPONDENT) C.O.NOS. 10 & 11/IND/2016 (ARISING OUT OF I.T.(SS)A.NOS. 14 & 15/IND/2016) (ASST. YEAR : 2006-07 & 2007-08) SHRI PRAKASH CHAND HOTWANI, 92, YASH NAGAR, MANDSAUR VS. ACIT, CENTRAL 2, INDORE. PAN NO. AAFPH1461B (CROSS OBJECTOR) (RESPONDENT) DEPARTMENT BY : SHRI RAJEEV VARSHNEY, CIT DR ASSESSEE BY : SHRI GIRISH AGRAWAL, CA DATE OF HEARING : 12/07/2016. DATE OF PRONOUNCEMENT : 12/07/2016. -: 2:- ACIT CENTRAL 2, INDORE V. SH PRAKASH CHAND HOTWANI O R D E R PER N.S.SAINI, ACCOUNTANT MEMBER THESE APPEALS FILED BY THE REVENUE AND CROSS OBJE CTIONS FILED BY THE ASSESSEE ARE DIRECTED AGAINST THE ORDER OF COM MISSIONER OF INCOME TAX (APPEALS)-III 27.11.2015. 2. THE COMMON GROUND OF APPEAL INVOLVED IN THESE AP PEALS IS THAT THE LD. CIT(A) ERRED IN DELETING THE ADDITION OF RS . 1,65,28,867/- IN ASSESSMENT YEAR 2006-07 AND RS. 2,07,36,092/- IN AS SESSMENT YEAR 2007-08 IN THE CASE OF SHRI PRAKASH HOTWANI. 3. DURING THE COURSE OF SEARCH PROCEEDINGS VARIOUS LOOSE PAPERS WERE FOUND AND SEIZED FROM THE RESIDENTIAL PREMISES OF THE ASSESSEE. SHRI ARJUN DAS HOTWANI, FATHER OF THE ASSESSEE IN H IS REPLY DATED 23.12.2014 SUBMITTED THAT THE LPS-1/4 PERTAINS TO M /S. AMBIKA SOLVEX LIMITED. THE AO DID NOT ACCEPT THE CONTENTION OF TH E ASSESSEE AS THE ASSESSEE WAS UNABLE TO FILE ANY UNDERTAKING FROM M/ S. AMBIKA SOLVEX LIMITED STATING THAT THE SAID LOOSE PAPERS I.E. PAG E 16 AND 17 OF LPS ARE HAND WRITTEN AND NOWHERE BEAR THE NAME OF M/S. AMBIKA SOLVEX LIMITED. AS THE MAIN BUSINESS OF THE ASSESSEE IS OF TRUCK PLYING AND THE SAID LOOSE PAPERS AT PAGE 16 AND 17 OF LPS-1/4 ARE THE DETAILS OF FREIGHT PAYMENTS, THE AO HELD THAT THESE PAPERS CONTAIN ENT RIES OF THE PAYMENTS MADE BY THE ASSESSEE TO VARIOUS PERSONS. F URTHER, AS THE PAPERS WERE SEIZED FORM THE PREMISES OF THE ASSESSE E, THE AO HELD THAT THE ONUS LIES WITH THE ASSESSEE TO EXPLAIN THE LOOS E PAPERS FOUND FROM -: 3:- ACIT CENTRAL 2, INDORE V. SH PRAKASH CHAND HOTWANI HIS PREMISES. THE AO FURTHER OBSERVED THAT THE ASSE SSEE IS ONLY PERSON IN HIS FAMILY INVOLVED IN THE BUSINESS OF TRUCK PLY ING AND ON EXAMINATION OF THE BOOKS OF ACCOUNTS OF THE ASSESSEE, IT WAS FO UND THAT THESE TRANSACTIONS WERE NOT RECORDED IN THE BOOKS OF ACCO UNTS. THEREFORE, THE AO HELD THAT TRANSACTION RECORDED THEREIN ARE THE U NRECORDED AND UNEXPLAINED PAYMENTS MADE BY THE ASSESSEE TO THE VA RIOUS PARTIES AND MADE ADDITION OF RS. 1,65,28,867/- IN ASSESSMENT YE AR 2006-07 AND RS. 2,07,36,092/- IN ASSESSMENT YEAR 2007-08. 4. ON APPEAL, THE LD. CIT(A) DELETED THE ADDITION B Y OBSERVING AS UNDER :- 3.2.3 M/S. AMBIKA SOLVEX LIMITED HAS CLEARLY OWNED UP THE LOOSE PAPERS 16 TO 19 OF LPS AND EXPLAINED THAT THE PAPERS 16 & 17 ARE ROUGH WORKING SHEETS AND THE ENTRIES ARE VERIFIABLE FROM THE QUARTERLY TDS RETUR NS AND ARE DULY REFLECTED IN THE REGULAR BOOKS OF ACCOUNTS . THE JTDS CERTIFICATE COPIES OF M/S. AMBIKA SOLVEX LIMIT ED AND THE QUARTERLY TDS RETURNS FILED BY THEM HAVE BEEN SUBMITTED AS PAPER BOOK IN THE COURSE OF APPEAL PROCEEDINGS. THE SAME WERE ALSO SUBMITTED IN THE COURSE OF ASSESSMENT PROCEEDINGS. PAGE NO. 16, LPS- 1/ IS AVAILABLE AT PAGE 6 OF THE PAPER BOOK. TO VERIFY T HE APPELLANT'S CONTENTION THE FIRST SET OF ENTRIES ON TOP LEFT HAND SIDE WERE CHECKED. ON TOP IS WRITTEN' 06-07' WHICH REFERS TO THE FINANCIAL YEAR 2006-07 RELEVANT TO AY 2007- 08. BELOW THAT IS WRITTEN 'BHARAT TRANSPORT CORP' -: 4:- ACIT CENTRAL 2, INDORE V. SH PRAKASH CHAND HOTWANI WHICH IS THE PARTY TO WHOM M/S AMBIKA SOLVEX LTD. HAS MADE FREIGHT PAYMENT AND DEDUCTED TDS THEREON. BELOW THAT ARE WRITTEN NUMBERS IN ROMAN NUMERIC 'I, II, III, IV. THESE NUMBERS REFER TO FOUR QUARTERS OF THE FINANCI AL YEAR 2006-07. AGAINST 'ROMAN NUMERIC I' IS WRITTEN '468705' AND AFTER SOME SPACE IS WRITTEN' 10546'. THE NUMBER '468705' IS THE PAYMENT OF FREIGHT TO THE CONTRACTOR BHARAT TRANSPORT COMPANY FOR THE PERIOD 01.04.2006 TO 30.06.2006 FALLING IN THE 1 ST QUARTER. THE NUMBER' 1 0546' REFERS TO THE AMOUNT OF TDS DEDUCTED ON THIS FREIGHT PAYMENT. THIS FACTUAL DATA IS VERIFIA BLE FROM THE TDS CERTIFICATE IN FORM 16A VIDE CERTIFICAT E NO. 23 DATED 15/10/2006 ISSUED BY M/S. AMBIKA SOLVEX LIMITED. AGAINST ROMAN NUMERIC II, IS 1340220 AND A FTER SOME SPACE '30158'. THE NUMBER' 1340220' IS THE PAYMENT OF FREIGHT TO BHARAT TRANSPORT COMPANY FOR T HE PERIOD 01.07.2006 TO 30.09.2006 FALLING IN THE 2 ND QUARTER. THE NUMBER '30158' REFERS TO THE AMOUNT OF TDS DEDUCTED ON THIS FREIGHT PAYMENT. THIS IS VERIFIA BLE FROM THE TDS CERTIFICATE NO. 26, 83 AND 89 DATED 15/12/2006. THE AMOUNT '1340220' IS A SUMMATION OF AMOUNT MENTIONED AS PAID / CREDITED IN THE THREE CERTIFICATES VIZ. CERTIFICATE NO. 26 - RS. 470094, CERTIFICATE NO. 89 - RS. 802550 AND CERTIFICATE NO. 83- RS. 67576. SIMILARLY, THE AMOUNT '30158' IS A SUMMATION OF AMOUNT MENTIONED AS TOTAL TAX DEPOSITE D -: 5:- ACIT CENTRAL 2, INDORE V. SH PRAKASH CHAND HOTWANI IN THE SAID THREE CERTIFICATES VIZ. CERTIFICATE NO. 26 - RS. 10578, CERTIFICATE NO. 89 - RS 18061 AND CERTIFICAT E NO. 83 - RS. 1519. AGAINST ROMAN NUMERIC 'III IS WRITTEN '362663' AND AFTER SOME SPACE '8160. THE NUMBER '362663'. IS THE PAYMENT OF FREIGHT TO BHARAT TRANSPORT COMPANY FOR THE PERIOD 01.10.2006 TO 31.12.2006 FALL ING THE 3 RD QUARTER. THE NUMBER '8160 REFERS TO THE AMOUNT OF TDS DEDUCTED ON THIS FREIGHT PAYMENT. THESE FACT UAL DATA IS VERIFIABLE FROM THE TDS CERTIFICATES VIZ. CE RTIFICATE NO. 100 , 19 AND 99 DATED 15/01/2007. THE AMOUNT OF '362663' IS A SUMMATION OF AMOUNT MENTIONED AS PAID / CREDITED IN THE THREE CERTIFICATES VIZ. CERTIFICATE NO. 100 - RS. 171127, CERTIFICATE NO. 19 - RS. 91593 AND CERTIFICATE NO. 99- RS. 99943. SIMILARLY, THE AMOUN T '8160' IS A SUMMATION OF AMOUNT MENTIONED AS TOTAL TAX DEPOSITED IN THE SAID THREE CERTIFICATES VIZ. CERTIF ICATE NO. 100 - RS. 3850, CERTIFICATE NO. 19 - RS. 2061 AND CERTIFICATE NO. 99 - RS. 2249. AGAINST ROMAN NUMERI C 'N' IS WRITTEN '20323' AND AFTER SOME SPACE '457'. THE NUMBER '20323' IS THE PAYMENT OF FREIGHT TO BHARAT TRANSPORT COMPANY FOR THE PERIOD 01.01.2007 TO 31.03.2007 FALLING IN THE 4TH QUARTER. THE NUMBER '457' REFERS TO THE AMOUNT OF TDS DEDUCTED ON THIS FREIGH T PAYMENT. THESE FACTUAL DATA IS VERIFIABLE FROM THE T DS CERTIFICATE NO. 89 DATED 30/05/2007. THE AMOUNT OF '20323' IS THE AMOUNT MENTIONED AS PAID / CREDITED IN -: 6:- ACIT CENTRAL 2, INDORE V. SH PRAKASH CHAND HOTWANI THE CERTIFICATE NO. 89. SIMILARLY, THE AMOUNT '457' IS THE AMOUNT MENTIONED AS TOTAL TAX DEPOSITED IN THE SAID CERTIFICATE NO. 89. BELOW THE FOUR ROMAN NUMERIC NUMBERS IS WRITTEN '2191911' WHICH IS THE SUM TOTAL OF FREIGHT PAYMENT OF FOUR QUARTERS (468705 + 1340220 + 362663 + 20323). SIMILARLY, AFTER SOME SPACE IS WRITTEN '49321' WHICH IS THE SUM TOTAL OF TDS DEDUCTED IN FOUR QUARTERS ( 10546 + 30158 + 8160 + 457 ). THE ABOVE MENTIONED TDS CERTIFICATES ARE AT PAGES 10 - 20 OF THE PAPER BOOK. 3.2.4 THE INSPECTOR MRS. PUJA JAIN IN THE O/O CIT(A)-III, INDORE WAS ALSO DIRECTED TO VERIFY AND CHECK THE ENTRIES IN THE PAPERS 16 & 17 OF LPS WITH THE TDS CERTIFICATES AND QUARTERLY STATEMENT OF TDS OF M/S. AMBIKA SOLVEX LIMITED PROVIDED IN THE PAPER BOOK BY THE ASSESSEE. THE INSPECTOR HAS FURNISHED THE REPORT ON 23.11.2015 STATING THAT ALL TRANSACTIONS REFLECTED ON PAGE NOS. 16 & 17 OF LPS ARE DULY SUPPORTED BY THE CERTIFICATES (FORM NO.16A) ISSUED BY M/S. AMBIKA SOLVEX LIMITED. 3.2.5 IN VIEW OF THE ABOVE DETAILED VERIFICATION IT IS SEEN THAT THE ENTRIES IN SEIZED PAPERS 16 AND 17 OF LPS ARE DULY REFLECTED IN THE BOOKS -: 7:- ACIT CENTRAL 2, INDORE V. SH PRAKASH CHAND HOTWANI OF M/S. AMBIKA SOLVEX LIMITED. I, THEREFORE, DELETE THE ADDITION OF RS. 1,65,28,867/- AND RS. 2,07,36,092/- MADE TO THE TOTAL INCOME OF THE APPELLANT FOR ASSESSMENT YEARS 2006-07 & 2007-08 RESPECTIVELY. 5. THE LD. DEPARTMENTAL REPRESENTATIVE RELIED ON T HE ORDER OF THE AO, WHEREAS THE LD. AUTHORIZED REPRESENTATIVE OF TH E ASSESSEE SUPPORTED THE ORDER OF THE LD. CIT(A). 6. WE HAVE HEARD THE RIVAL SUBMISSIONS AND HAVE GON E THROUGH THE ORDERS OF THE LOWER AUTHORITIES AND PERUSED THE MAT ERIAL AVAILABLE ON RECORD. WE FIND THAT THE LD. DEPARTMENTAL REPRESEN TATIVE COULD NOT BRING ANY SPECIFIC ERROR IN THE ORDER OF THE CIT(A) . HE ALSO COULD NOT BRING ANY MATERIAL ON RECORD TO CONTROVERT THE FIND INGS OF THE CIT(A). THEREFORE, WE FIND NO GOOD AND JUSTIFIABLE REASON T O INTERFERE WITH THE ORDER OF THE CIT(A), WHICH IS HEREBY CONFIRMED AND THE GROUNDS OF APPEAL OF THE REVENUE ARE DISMISSED IN BOTH THE APP EALS. 7. THE LD. AUTHORIZED REPRESENTATIVE OF THE ASSESSE E DID NOT PRESS THE CROSS OBJECTIONS. THE SAME ARE DISMISSED AS NOT PRESSED. -: 8:- ACIT CENTRAL 2, INDORE V. SH PRAKASH CHAND HOTWANI 8. IN THE RESULT, THE APPEALS OF THE REVENUE AS WEL L AS CROSS OBJECTIONS FILED BY THE ASSESSEE ARE DISMISSED. ORDER PRONOUNCED IN THE COURT AT THE CLOSE OF THE H EARING ON DAY OF 12 TH JULY, 2016 AT INDORE. SD/- SD/- (D.T.GARASIA) (N.S.SAINI) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED : 12 TH JULY, 2016. CPU COPY TO: 1. THE ASSESSEE. 2. THE REVENUE. 3. THE CIT 4. THE CIT(A) 5. THE D.R. 6. GUARD FILE. BY ORDER ASSISTANT REGISTRAR I.T.A.T., INDORE -: 9:- ACIT CENTRAL 2, INDORE V. SH PRAKASH CHAND HOTWANI