Jaya.G, Kollam V. DCIT, Kollam

ITSSA 2/COCH/2010

• Counselvise Citation: [2012] 124 COUNSELVISE.COM (IT) 7683 (ITAT-COCHIN)
• Duration Of Justice: 1 year(s) 11 month(s)
• Appeal Type: Income Tax (Search & Seizure) Appeal
• Pronouncement Date: 09-03-2012
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 29-02-2012
• Assessment Year: misc
• Appeal Filed On: 09-04-2010
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: VIJAYAPRABHA
• Assessee Lawyers: K KRISHNAKUMAR
• Section: 154

Judgement Text

1 ITSSA NO.02/COCH/2010 IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH, COCHIN BEFORE SHRI N.R.S. GANESAN (JM) AND SHRI B.R. BASKA RAN(AM) I.T(SS)A NO. 02/COCH/2010 (BLOCK PERIOD 01-04-1988 TO 03-12-1998) SMT. JAYA G VS THE DY.CIT, INV.CIR. SIMLA COTTAGE KOLLAM AMBALATHUMKALA PO EZHUKONE, KOLLAM PAN : AJUPJ4745K (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI K KRISHNAKUMAR RESPONDENT BY : SMT. VIJAYAPRABHA DATE OF HEARING : 29-02-2012 DATE OF PRONOUNCEMENT : 09-03-2012 O R D E R PER N.R.S. GANESAN (JM) THIS APPEAL OF THE ASSESSEE IS DIRECTED AGAINST TH E ORDER OF THE COMMISSIONER OF INCOME-TAX(A)-I, TRIVANDRUM DATED 04-11-2009 AND PE RTAINS TO BLOCK PERIOD 01-04-1988 TO 03-12-1998. 2. SHRI K KRISHNAKUMAR, THE LD.REPRESENTATIVE FOR T HE ASSESSEE SUBMITTED THAT WHILE GIVING EFFECT TO THE ORDER OF THIS TRIBUNAL DATED 0 5-10-2006 THE ASSESSING OFFICER MADE THE ADDITION OF RS.1,20,000 LAKH IN THE HANDS OF TH E ASSESSEE. THE ASSESSEE FILED APPLICATION U/S 154 CLAIMING THAT SHRI K KRISHNAKUM AR, THE MANAGING PARTNER OF M/S KUMAR BANKERS OWNS THE INVESTMENT OF RS.1,20,000 LA KH IN HARSHAKUMAR HIRE PURCHASE AND LEASING CO LTD AND HENCE THE ADDITION MADE IN T HE HANDS OF THE PRESENT ASSESSEE HAS TO BE DELETED. HOWEVER, THE ASSESSING OFFICER REJECTED THE APPLICATIONS OF THE 2 ITSSA NO.02/COCH/2010 ASSESSEE ON THE GROUND THAT IT IS A DEBATABLE ONE. ON FURTHER APPEAL BY THE ASSESSEE BEFORE THE COMMISSIONER OF INCOME-TAX(A), THE COMMI SSIONER OF INCOME-TAX(A) FOUND THAT CERTIFICATE SAID TO BE ISSUED BY THE MANAGING DIRECTOR M/S KUMAR BANKERS WAS NOT SIGNED AND THE ISSUE IS DEBATABLE ONE. ACCORDING T O THE LD.REPRESENTATIVE, THE MATERIAL AVAILABLE ON RECORD CLEARLY SHOWS THAT THE MANAGING PARTNER OF M/S KUMAR BANKERS INVESTED THE FUNDS, THEREFORE, THE ADDITION MADE IN THE HANDS OF THE ASSESSEE IS NOT JUSTIFIED. 3. ON THE CONTRARY, SMT. VIJAYAPRABHA, THE LD.DR SU BMITTED THAT DURING THE PROCEEDINGS WHILE GIVING EFFECT TO THE ORDER OF THI S TRIBUNAL, THE ASSESSEE HAS NOT PRODUCED ANY MATERIAL TO SHOW THAT THE INVESTMENT W AS MADE BY SHRI K KRISHNAKUMAR, MANAGING DIRECTOR OF KUMAR BANKERS IN M/S HARSHAKUM AR HIRE PURCHASE & LEASING CO LTD. THEREFORE, THE ASSESSING OFFICER, BY AN ORDER DATED 04-02-2008 REPEATED THE ADDITION IN THE HANDS OF THE PRESENT ASSESSEE. NO APPEAL WAS FILED BY THE ASSESSEE CHALLENGING THE ORDER OF THE ASSESSING OFFICER DATE D 04-02-2008. HOWEVER, SUBSEQUENTLY, THE ASSESSEE FILED AN APPLICATION U/S 154 OF THE INCOME-TAX ACT ON THE GROUND THAT THERE IS AN ERROR IN THE ORDER OF THE A O. ON THAT APPLICATION THE ASSESSING OFFICER REJECTED THE CLAIM OF THE ASSESSEE ON THE G ROUND THAT THE ISSUE ARISES FOR CONSIDERATION IS DEBATABLE ONE. THE ORDER OF THE A SSESSING OFFICER AGAINST THE APPLICATION U/S 154 WAS CONFIRMED BY THE COMMISSION ER OF INCOME-TAX(A). THEREFORE, ACCORDING TO THE LD.REPRESENTATIVE, IN THE ABSENCE OF ANY MATERIAL, THE ASSESSING OFFICER HAS RIGHTLY MADE THE ADDITION IN THE HANDS OF THE P RESENT ASSESSEE. 4. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS ON EITH ER SIDE AND ALSO PERUSED THE MATERIAL AVAILABLE ON RECORD. ADMITTEDLY, CONSEQUE NT TO THE ORDER OF THIS TRIBUNAL, THE ASSESSING OFFICER MADE ADDITION OF RS.1,20,000 LAKH IN THE HANDS OF THE PRESENT ASSESSEE IN THE ABSENCE OF ANY MATERIAL TO SUPPORT THE CLAIM OF THE ASSESSEE. SUBSEQUENTLY, THE ASSESSEE FILED AN APPLICATION U/S 154 OF THE INCOME -TAX ACT WHICH WAS REJECTED BY THE ASSESSING OFFICER ON THE GROUND THAT THE ISSUE RAIS ED IN THE APPLICATION U/S 154 WAS 3 ITSSA NO.02/COCH/2010 DEBATABLE ONE. IT IS PERTINENT TO NOTE THAT THE AS SESSEE HAS NOT CHALLENGED THE ORDER OF THE ASSESSING OFFICER DATED 04-02-2008 PASSED CONSE QUENT TO THE ORDER OF THIS TRIBUNAL. IF AT ALL THE ASSESSEE IS AGGRIEVED, IT IS FOR THE ASSESSEE TO CHALLENGE THE ORDER OF THE ASSESSING OFFICER DATED 04-02-2008. RAISING THE IS SUE IN THE MISCELLANEOUS APPLICATION IN RESPECT OF ADDITION MADE BY THE ASSESSING OFFICER, IN OUR OPINION, IS NOT JUSTIFIED. THE CLAIM OF THE ASSESSEE THAT THE INVESTMENT OF RS.1,2 0,000 LAKH WAS MADE BY SHRI K KRISHNAKUMAR, MANAGING PARTNER OF KUMAR BANKERS IN M/S HARSHAKUMAR HIRE PURCHASE & LEASING CO LTD IS TO BE EXAMINED ON THE BASIS OF THE MATERIALS AVAILABLE ON RECORD. THIS CANNOT BE DONE IN PROCEEDINGS U/S 154 OF THE I NCOME-TAX ACT. THE POWERS OF THE ASSESSING OFFICER UNDER SECTION 154 OF THE INCOME-T AX ACT ARE CONFINED ONLY TO RECTIFY AN ERROR WHICH IS APPARENT ON THE FACE OF THE RECORD. THE ASSESSING OFFICER IS NOT EXPECTED TO MAKE A THOROUGH ENQUIRY IN PROCEEDINGS U/S 154 OF THE ACT. THEREFORE, THE COMMISSIONER OF INCOME-TAX(A) HAS RIGHTLY CONFIRMED THE ORDER OF THE ASSESSING OFFICER ON THE GROUND THAT THE ISSUE RAISED BY THE ASSESSEE IS A DEBATABLE ONE. WE DO NOT FIND ANY INFIRMITY IN THE ORDER OF THE LOWER AUTHORITY. ACCORDINGLY, THE SAME IS CONFIRMED. 5. IN THE RESULT, APPEAL OF THE ASSESSEE STANDS DIS MISSED. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 09 TH DAY OF MARCH, 2012. SD/- SD/- (B.R. BASKARAN) (N.R.S. GANESAN) ACCOUNTANT MEMBER JUDICIAL MEMBER COCHIN, DT : 09 TH MARCH, 2012 PK/- COPY TO: 1. SMT. JAITHA G, SIMLA COTTAGE, AMBALATHUMKALA, PO EZ HUKONE, KOLLAM 2. DY.CIT, INV.CIR., KOLLAM 3. THE COMMISSIONER OF INCOME-TAX(A)-I, TRIVANDRUM 4. THE COMMISSIONER OF INCOME-TAX, TRIVANDRUM 5. THE DR (TRUE COPY) BY ORDER ASSTT. REGISTRAR, INCOME-TAX APPELLATE TRIBUNAL, COCHIN BENCH