Shrichanra Valecha, Indore V. ACIT Circle 2 (1), Indore

ITSSA 193/Ind/2017

• Counselvise Citation: [2019] 118 COUNSELVISE.COM (IT) 2524 (ITAT-INDORE)
• Duration Of Justice: 1 year(s) 7 month(s) 16 day(s)
• Appeal Type: Income Tax (Search & Seizure) Appeal
• Pronouncement Date: 11-03-2019
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: misc
• Appeal Filed On: 25-07-2017
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: ASHIMA GUPTA

Judgement Text

SHRICHAND VALECHA IT(SS) NO. 193/IND/2017 1 , , IN THE INCOME TAX APPELLATE TRIBUNAL, INDORE BENCH, INDORE BEFORE HON'BLE KUL BHARAT, JUDICIAL MEMBER AND HON'BLE MANISH BORAD, ACCOUNTANT MEMBER IT(SS) NO.193/IND/2017 ASSESSMENT YEAR 1991-92 TO 2001-02 REVENUE BY SMT. ASHIMA GUPTA ASSESSEE BY SHRI HITESH CHIMNANI , CA DATE OF HEARING 0 7 .03 .2019 DATE OF P RONOUNCEMENT 11 .0 3 .2019 O R D E R PER MANISH BORAD. THE ABOVE CAPTIONED APPEAL IS FILED AT THE INSTANC E OF ASSESSEE PERTAINING TO ASSESSMENT YEAR 1991-92 TO 2001-02 AND IS DIRECTED AGAINST THE ORDERS OF LD. COMMISSIONER OF INCOME TA X (APPEALS)-III (IN SHORT LD.CIT(A)], INDORE DATED 19.05.2017 WH ICH IS ARISING OUT OF THE ORDER U/S 158BFA(2) OF THE INCOME TAX ACT 19 61(IN SHORT THE ACT) DATED 19.06.2012 FRAMED BY ACIT, CIRCLE-2(1) , INDORE. SHRI SHRICHAND VALECHA 33-34, LARKANA NAGAR, INDORE VS. ACIT CIRCLE 2(1) , INDORE ( APPELLANT ) (RESPONDENT ) PAN NO. AATPV2034Q SHRICHAND VALECHA IT(SS) NO. 193/IND/2017 2 2. THE ASSESSEE HAS RAISED FOLLOWING GROUNDS OF APP EAL; ( 1) THAT ON FACTS ON THE FACTS AND IN THE CIRCUMSTAN CES OF THE CASE, THE LD. CIT(A)-III HAS ERRED IN CONFIRMING PENALTY U/S 158B FA(2) OF RS.90,000/- IN RESPECT OF ADDITION MADE ON ACCOUNT OF HUNDIES FOUN D AMOUNTING TO RS.1,50,000/- (2) THE APPELLANT CRAVES TO LEAVE, ADD, AMEND, MODI FY, OR WITHDRAW ANY OF THE GROUNDS OF APPEALS AT THE TIME OF HEARING 3. WE HAVE HEARD RIVAL CONTENTIONS AND PERUSED THE RECORDS PLACED BEFORE US. THE SOLE ISSUE RAISED BY THE ASS ESSEE IS WITH REGARD TO PENALTY U/S 158BFA(2) OF THE ACT AT RS.90 ,000/- CONFIRMED BY LD. CIT(A). WE OBSERVE THAT A SEARCH WAS CONDUCTED AT THE RESIDENTIAL PREMISES OF THE ASSESSEE ON 26.9 .2000. DURING THE COURSE OF SEARCH VARIOUS INCRIMINATING MATERIAL INCLUDING HUNDIES, JEWELLERY AND CASH WERE FOUND. ASSESSEE G OT MAJOR RELIEF FROM LD. CIT(A)AS WELL AS FROM THE TRIBUNAL. HOWEV ER AS REGARDS TO THE SEIZED MATERIAL PLACED AT HS-1 PAGE 164 TO 166 RELATING TO HUNDIES OF RS.50,000/- EACH IN THE NAME OF MINOR S ON AMIT, SHOWING THE AMOUNT ADVANCED TO SHRI SHYAMLAL ARYA, FINANCE BROKER. THE ADDITION RELATING TO THESE HUNDIES OF RS.1,50,000/- STANDS CONFIRMED BY THE TRIBUNAL AND PENALTY OF RS. 90,000/-WAS SHRICHAND VALECHA IT(SS) NO. 193/IND/2017 3 LEVIED ON THE ADDITION OF RS.1,50,000/- WHICH IS CH ALLENGED BEFORE US. 4. LD. COUNSEL FOR THE ASSESSEE FAILED TO REBUT THE FINDINGS OF FACT BY LD. CIT(A) AND ONLY GAVE GENERAL SUBMISSION THAT AS THE BROKER SHRI SHYAMLAL ARYA IS ABSCONDING AFTER SEARCH AND R EMAINS UNTRACEABLE THE ASSESSEE COULD NOT PROVIDE EVIDENC E BEFORE ANY OF THE APPELLATE AUTHORITIES THAT THESE HUNDIES WERE K EPT AS A GUARANTEE FROM THE BROKER SHRI SHYAMLAL ARYA. 5. IN THE GIVEN FACTS AND CIRCUMSTANCES OF THE CASE THERE REMAINS NO DISPUTES THAT RS.1,50,000/- WAS AN UN ACCOUNTED AND UNDISCLOSED INVESTMENT OF THE ASSESSEE AND THEREFOR E PENALTY HAS BEEN RIGHTLY LEVIED ON THE ALLEGED ADDITION OF RS.1 ,50,000/-. WE THEREFORE CONFIRM THE PENALTY OF RS.90,000/- LEVIED BY THE LD. A.O U/S 158BFA(2) OF THE ACT. GROUND NO.1 OF THE ASSES SEE STANDS DISMISSED. 6. GROUND NO.2 IS GENERAL IN NATURE WHICH NEEDS NO ADJUDICATION. SHRICHAND VALECHA IT(SS) NO. 193/IND/2017 4 11. IN THE RESULT THE APPEAL OF THE ASSESSEE IS DIS MISSED. THE ORDER PRONOUNCED IN THE OPEN COURT ON 11.03.201 9. SD/- SD/- ( KUL BHARAT) (MANISH BORAD) JUDICIAL MEMBER ACCOUNTANT MEMBER / DATED : 11 MARCH, 2019 /DEV COPY TO: THE APPELLANT/RESPONDENT/CIT CONCERNED/CIT (A) CONCERNED/ DR, ITAT, INDORE/GUARD FILE. BY ORDER, ASSTT.REGISTRAR, I.T.A.T., INDORE