Dharmendra Nathmal Bafna, Jalgaon V. Assistant Commissioner of Income-tax, Central Circle -2, Nashik

ITSSA 20/PUN/2019

• Counselvise Citation: [2022] 104 COUNSELVISE.COM (IT) 3182 (ITAT-PUNE)
• Duration Of Justice: 3 year(s) 5 month(s) 11 day(s)
• Appeal Type: Income Tax (Search & Seizure) Appeal
• Pronouncement Date: 17-08-2022
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 17-08-2022
• Assessment Year: 2014-2015
• Appeal Filed On: 07-03-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Unexplained cash credit; Search and seizure
• Section: 132; 139; 143(3); 153A; 250

Judgement Text

ITAT-Pune Page 1 of 8 आयकर अपीलीय न्यायाधिकरण, पुणे न्यायपीठ, “बी” बेंच, पुणे में। IN THE INCOME TAX APPELLATE TRIBUNAL, PUNE “B” BENCH, PUNE BEFORE SHRI S.S. GODARA, JUDICIAL MEMBER AND SHRI G. D. PADMAHSHALI, ACCOUNTANT MEMBER आयकर अपील सं. / ITA(SS) No. 32/PUN/2018 करधििाारण वर्ा/ Assessment Year :2014-15 Smt. Babita Dharmendra Bafna, 204, Nayantara Residency, 2 nd Floor, Ishwar Colony, Jalgaon – 425001 PAN :BKUPB0292G . . . . . . . अपीलाथी / Appellant बिाम / V/s. Assistant Commissioner of Income Tax, Central Circle – 2, Nashik . . . . . . . प्रत्यथी / Respondent आयकर अपील सं. / ITA(SS) No. 33/PUN/2018 करधििाारण वर्ा/ Assessment Year :2010-11 Smt. Aarti Nathmal Bafna, 204, Nayantara Residency, 2 nd Floor, Ishwar Colony, Jalgaon – 425001 PAN : BLXPB5928F . . . . . . . अपीलाथी / Appellant बिाम / V/s. Assistant Commissioner of Income Tax, Central Circle – 2, Nashik . . . . . . . प्रत्यथी / Respondent आयकर अपील सं. / ITA(SS) No. 34/PUN/2018 करधििाारण वर्ा/ Assessment Year :2014-15 Mr. Pankaj Nathmal Bafna, 203, Nayantara Residency, 2 nd Floor, Ishwar Colony, Jalgaon – 425001 PAN : BONPB0415G . . . . . . . अपीलाथी / Appellant बिाम / V/s. Assistant Commissioner of Income Tax, Central Circle – 2, Nashik . . . . . . . प्रत्यथी / Respondent Bafna Group IT(SS)A Nos. 32 to 35/PUN/2018 & 20/PUN/2019 ITAT-Pune Page 2 of 8 आयकर अपील सं. / ITA(SS) No. 35/PUN/2018 करधििाारण वर्ा/ Assessment Year :2014-15 Smt. Priyanka Nathmal Bafna, 204, Nayantara Residency, 2 nd Floor, Ishwar Colony,Jalgaon – 425001 PAN : BKUPB0332H . . . . . . . अपीलाथी / Appellant बिाम / V/s. Assistant Commissioner of Income Tax, Central Circle – 2, Nashik . . . . . . . प्रत्यथी / Respondent आयकर अपील सं. / ITA(SS) No. 20/PUN/2019 करधििाारण वर्ा/ Assessment Year :2014-15 Shri Dharmendra Nathmal Bafna, Bafna House, Swatantra Chowk, Behind Gandhi Udyan, Jilha Peth,Jalgaon – 425001 PAN : AQYPB0670H . . . . . . . अपीलाथी / Appellant बिाम / V/s. Assistant Commissioner of Income Tax, Central Circle – 2, Nashik . . . . . . . प्रत्यथी / Respondent द्वारा / Appearances Assessee by : Shri Abhay Avachat Revenue by : Shri Sardar Singh Meena सुनवाई की तारीख / Date of conclusive Hearing : 18/08/2022 घोषणा की तारीख / Date of Pronouncement : 18/08/2022 आदेश / ORDER PER G.D. PADMAHSHALI, AM; The present bunch of appeals of the different appellant assessee are assailed against separate orders of Commissioner of Income Tax (Appeals)-12, Pune [for short “CIT(A)”] passed u/s 250 of the Income-tax Act,1961 [for short “the Act”] which in turn sprung out of separate Bafna Group IT(SS)A Nos. 32 to 35/PUN/2018 & 20/PUN/2019 ITAT-Pune Page 3 of 8 assessment orders dt. 22/12/2016 passed by Asstt. Commissioner of Income Tax Central Circle-2, Nashik [for short “AO”] u/s 143(3) r.w.s. 153A of the Act for the assessment year [for short “AY”] 2010-11and 2014-15. 2. Since the facts and circumstance and issues involved in these appeals are identical, with the agreement of both the parties; the matter is heard together for a consolidated order, resultantly theadjudication laid in succeeding paragraphs,shall mutatis mutandis apply to all the appeals under adjudication. 3. Common facts as born out of the records are; 3.1 The DDIT(Inv)-I, Nashik u/s 132 of the Act conducted a search and seizure action on 10/09/2014 at the residential & business premises of assessee family “Bafna Group”, and pursuant thereto a statement of Karta of the said family ‘Mr Nathmal Manoharmal Bafna’ as main person was recorded on 11/09/2014 u/s 132(4) of the Act. The statement recorded confirms the incriminating documents and its contents to the extent Bafna Group IT(SS)A Nos. 32 to 35/PUN/2018 & 20/PUN/2019 ITAT-Pune Page 4 of 8 of advancing of money to M/s Sanmar Industries, Chincholi by each one of his family members as under; Sr Appellant Assessee Relation with Karta Mr Nathmal Bafna Amt (₹) Advanced to M/s Sanmar Industries 1 Dharmendra Nathmal Bafna Son 5,00,000 2 Babita Dharmendra Bafna Son's Wife 5,00,000 3 Priyanka Nathmal Bafna Daughter 5,00,000 4 Pankaj Nathmal Bafna Son 5,00,000 5 Aarati Nathmal Bafna Wife Nil 3.2 While confirming the monies advanced to M/s Sanmar Industries, Chincholi in a statement tendered u/s 132(4) of the Act, it was also explained that, the said loans advanced by his family members were out of proceeds from sale of old gold and silver owned by each of them and transactionswere incorporated or shown in the returns of income filed for respective year. It is noteworthy to mention that, the assesseeunder appeals have filed their respective return of income post search & seizure action invariably on 31/03/2015 (except Sr no 5) and subsequently pursuant to notice u/s 153A on unvaryingly 13/07/2015 as detailed hereunder; Bafna Group IT(SS)A Nos. 32 to 35/PUN/2018 & 20/PUN/2019 ITAT-Pune Page 5 of 8 Sr Appellant Assessee ROI u/s 139 ROI Pursuant to 153A Date Income Returned (₹) Date Income Returned (₹) 1 Dharmendra Nathmal Bafna 31/03/2015 2,35,940 13/07/2015 2,35,940 2 Babita Dharmendra Bafna 31/03/2015 7,560 13/07/2015 7,560 3 Priyanka Nathmal Bafna 31/03/2015 80,800 13/07/2015 80,800 4 Pankaj Nathmal Bafna 31/03/2015 1,82,060 13/07/2015 1,82,060 5 Aarati Nathmal Bafna Not-filed - 13/07/2015 1,78,970 3.3 From the incriminating documents seized during the course of search & seizure action u/s 132 of the Act, it was also noticed that, as against the money advanced to the M/s Sanmar Industries by a solitary bank entry, a penultimate cash found deposited into respective saving bank accounts, which explained to have been made out of sale proceeds of gold & silver held, however during the course of assessment proceeding each one of them failed to produce acceptable documentary evidence including (at the time of search) and explain source thereof vis-à-vis no explanation found tendered about the cash balances held, in the event the assessments were culminated u/s 143(3) r.w.s. 153A with an addition u/s 68 as unexplained cash credit. Bafna Group IT(SS)A Nos. 32 to 35/PUN/2018 & 20/PUN/2019 ITAT-Pune Page 6 of 8 4. During the course of physical hearing, the learned authorised representative [for short “AR”] adverting to material placed on record contended that, the assessment in these cases were carried out merely on the statement of ‘Mr Nathmal Bafna’ without appreciating the evidences and explanation tendered with respect to business carried out by each of these appellant. It was also contended that, since the case of Mr Nathmal Bafna, [ITA(SS) No 67- 69/PUN/2019] Tribunal has restored the file to the assessing officer for assessing the income in the light of incriminating material seized, hence similar relief may be given to these assessee to adduce apt evidences in support of claims and offer explanation therefore. The learned departmental representative [for short “DR”] on the hand seeking our attention to deviating explanation tendered during the course of search vis-à-vis during the course of assessment proceedings, conceded for de-nova computation of income by restoring the matter back to Ao. 5. After hearing to the rival contentions of both the parties; and subject to the provisions of rule 18 of Income Bafna Group IT(SS)A Nos. 32 to 35/PUN/2018 & 20/PUN/2019 ITAT-Pune Page 7 of 8 Tax Appellate Tribunal Rules, 1963 [for short “ITAT, Rules”] perused the material placed on records in the light of settled legal position and considering the case laws relied upon by the appellant as well respondent revenue, we are of the considered view that, the appellant assessee although produced cash book, copy of loan ledger account etc., but failed to adduce apt evidences in support of claims and offer acceptable explanation, whereas the Ld. AO brush aside the entire submission and carried away by cash deposits made into bank accounts by the appellants prior to advancing said loan to M/s Sanmar Industries, which resulted in violation of principle of natural justice. However, the said violation does neither invalidate whole proceedings nor the jurisdiction to assessee, consequently we restore the file back to Ld. AO for de- nova computation of income in the light of applicable provision of law, considering the material placed by the appellants and affording sufficient hearing to offer explanation therefore. Needless to state that, the appellant shall not seek unreasoned adjournment and Bafna Group IT(SS)A Nos. 32 to 35/PUN/2018 & 20/PUN/2019 ITAT-Pune Page 8 of 8 shall co-operate the assessment proceedings for early completion. 6. Resultantly, all the appeals of the appellant assessee(s) are allowed for statistical purpose in terms of aforestated observation. In terms of rule 34 of ITAT Rules, the order pronounced in the open court on this Thursday 18 th day of August, 2022. -S/d- -S/d- S.S. GODARA G. D. PADMAHSHALI JUDICIAL MEMBER ACCOUNTANT MEMBER पुणे / PUNE ; ददनाांक / Dated : 30 th day of August, 2022. आदेश की प्रधिधलधप अग्रेधर्ि / Copy of the Order forwarded to : 1.अपीलाथी / The Appellant. 2. प्रत्यथी / The Respondent. 3. The Pr. CIT, Central, Nagpur (Mh-India) 4. The CIT(A)-12, Pune (Mh-India) 5. दवभागीय प्रदतदनदध,आयकरअपीलीय न्यायादधकरण, पुणे “बी ”बेंच, पुणे / DR, ITAT, Pune “B” Bench, Pune. 6. गार्डफ़ाइल / Guard File. आदेशानुसार / BY RDER, वररष्ठदनजीसदचव / Sr. Private Secretary आयकरअपीलीयन्यायादधकरण, पुणे / ITAT, Pune.