The ACIT, Circle-10, Ahmedabad V. Saritaben N. Patel,L/h of Late Natverlal B.Patel, Ahmedabad

ITSSA 192/AHD/2006

• Counselvise Citation: [2013] 121 COUNSELVISE.COM (IT) 9651 (ITAT-AHMEDABAD)
• Duration Of Justice: 7 year(s) 5 month(s) 5 day(s)
• Appeal Type: Income Tax (Search & Seizure) Appeal
• Pronouncement Date: 17-12-2013
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Next Hearing Date: 19-12-2012
• Assessment Year: misc
• Appeal Filed On: 12-07-2006
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: D C PATWARI; SHANKARLAL MEENA
• Keywords: Peak credit

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, AHMEDABAD BEFORE SHRI MUKUL KR. SHRAWAT, JUDICIAL MEMBER AND SHRI T.R. MEENA, ACCOUNTANT MEMBER IT(SS)A NO.192/AHD/2006 THE ACIT, CIRCLE 10, AHMEDABAD. V/S. SARITABEN N. PATEL, L/H. OF LATE NATVERLAL B. PATEL, 15 PRITAM SOCIETY NAVRANGPURA, AHMEDABAD PAN: ACCPP 4365P (APPELLANT) (RESPONDENT) REVENUE BY : S/SHRI D.C. PATWARI AND SHANKARLAL MEENA, D.R. ASSESSEE(S) BY : S/SHRI DHIREN SHAH AND SURESH GANDHI, A.R. / DATE OF HEARING : 19/09/2013 / DATE OF PRONOUNCEMENT: 17/12/2013 / O R D E R PER SHRI MUKUL KUMAR SHRAWAT, J.M. THIS IS AN APPEAL FILED BY THE REVENUE ARISING FROM THE ORDER OF LEARNED CIT(A)-III, AHMEDABAD, DATED 31.03.2003. THE SUBSTANTIVE GROUND OF THE REVENUE IS REPRODUCED BEL OW:- THE LD. CIT(A) HAS ERRED IN LAW AND ON FACTS DELETE D THE ADDITION OF RS.77,47,500/- MADE ON PROTECTIVE BASIS AND RS.90,5 0,000/- MADE ON THE BASIS OF PEAK CREDIT BALANCE AS UNDISCLOSED INC OME OF THE ASSESSEE ON SUBSTANTIVE BASIS. 2. CONSEQUENCE UPON A SEARCH U/S.132, THE PROCEEDIN GS AGAINST THIS ASSESSEE WERE INITIATED U/S. 158 R.W.S. 158 BC OF IT ACT. THEREUPON AN ORDER WAS PASSED ON 31 ST OF JANUARY, 2005, WHEREIN IT WAS OBSERVED THAT AN ACCOUNT WAS FOUND ON PAGES 89 TO 93 OF THE IT(SS)A NO.192/AHD/2006 ACIT, CENTRAL CIRCLE-1(1), AHMEDABAD VS. SARITABEN N. PATEL - 2 - SEIZED MATERIAL IN THE NAME OF NATUBHAI POPULAR. ON EXAMINATION OF THE ACCOUNTANT, SRI ARVINDBHAI A. SH AH AND SRI JIVRAJ V. DESAI, IT WAS HELD THAT THE SAID ACCOUNT BELONGED TO SRI NATWARLAL BHOLIDAS PATEL. IT IS ALSO WORTH TO MENTI ON THAT DUE TO THE SAD DEMISE OF THE ASSESSEE THE ASSESSMENT WAS M ADE IN THE HANDS OF THE LEGAL HEIR, NAMELY, SMT. SARITABEN NAT WARLAL PATEL. THE AO HAS DISCUSSED AT LENGTH, THE PROCEEDINGS WHI CH WERE CONDUCTED IN THE CASE OF SRI J.V. DESAI. THE AO HAS ALSO DISCUSSED THE WORKING OF THE NEGATIVE PEAK CREDIT AND THEREUP ON HELD THAT THE PEAK CREDIT BALANCE OF RS.90,50,000/- TO BE TAXED I N THE HANDS OF THE ASSESSEE. FURTHER, HE HAS MADE AN OBSERVATION I N RESPECT OF THE FINDINGS OF LEARNED CIT(A) WHILE DECIDING THE APPEA L OF SRI JIVRAJ V. DESAI, WHEREIN, A NOTICE OF ENHANCEMENT WAS MADE OF RS.77,47,500/-. ALTHOUGH, LEARNED CIT(A) HAD ADDED THAT AMOUNT IN THE HANDS OF SRI JIVRAJ V. DESAI, BUT THE AO IN THE PRESENT CASE HAS TAXED THAT AMOUNT OF RS.77,47,500/- PROTECTIVEL Y IN THE HANDS OF THE ASSESSEE. THE MATTER WAS CARRIED BEFORE THE FIRST APPELLATE AUTHORITY. 3. AFTER DETAILED DISCUSSION, LEARNED CIT(A) HAS HE LD THAT THE AO WAS NOT JUSTIFIED TO MAKE THE ADDITIONS IN THE H ANDS OF THE ASSESSEE BECAUSE NO PEAK AMOUNT AS WELL AS THE ENHA NCEMENT AMOUNT BELONGED TO THE ASSESSEE. 4. THE PRESENT POSITION IS THAT BOTH THE IMPUGNED A DDITIONS AS MADE IN THE CASE OF THIS ASSESSEE HAVE NOW BEEN CON SIDERED BY US IN THE CASE OF SRI JIVRAJ V. DESAI FOR THE SAID BLO CK PERIOD WHILE IT(SS)A NO.192/AHD/2006 ACIT, CENTRAL CIRCLE-1(1), AHMEDABAD VS. SARITABEN N. PATEL - 3 - DECIDING IT(SS)A NO.99 & 106/AHD/2004, ORDER DATED 13.12.2013, WHEREIN WE HAVE CONFIRMED THE ADDITION IN HIS HANDS . RESPECTFULLY FOLLOWING THE SAID DECISION OF THE CO-ORDINATE BENC H, WE FIND NO FORCE IN THIS GROUND OF THE REVENUE; HENCE DISMISSE D. 5. IN THE RESULT, REVENUES APPEAL IS DISMISSED. SD/- SD/- (T.R. MEENA) (MUKUL KR. SHRAWAT) ACCOUNTANT MEMBER JUD ICIAL MEMBER AHMEDABAD; DATED 17/12/2013 PRABHAT KR. KESARWANI, SR. P.S. TRUE COPY / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. / CONCERNED CIT 4. ( ) / THE CIT(A)-III, AHMEDABAD 5. , , / DR, ITAT, AHMEDABAD 6. / GUARD FILE. / BY ORDER, / ( DY./ASSTT.REGISTRAR) , / ITAT, AHMEDABAD