Karan Janahavi Development Corporation, Pune V. Deputy Commissioner of Income-tax, Central Circle -2 (4), Pune

ITSSA 22/PUN/2019

AI Insights

The case involves Karan Janahavi Development Corporation appealing against the order of the Commissioner of Income Tax (Appeals)-12, Pune, which confirmed the additions made by the Assessing Officer following a search operation under section 132 of the Income Tax Act, 1961. The search revealed unaccounted payments related to the assessee's project, leading to additions in the income for the assessment years 2012-13 and 2013-14. The Tribunal examined the legal and factual grounds raised by the assessee, including the challenge to the validity of the proceedings under section 153C and the merits of the income additions. The Tribunal found no merit in the assessee's arguments and upheld the additions.

• Counselvise Citation: [2022] 140 COUNSELVISE.COM (IT) 137859 (ITAT-PUNE)
• Duration Of Justice: 6 month(s)
• Appeal Type: Income Tax (Search & Seizure) Appeal
• Pronouncement Date: 08-12-2022
• Appeal Filed By: Assessee
• Order Result: DismissedDismissed
• Bench Allotted: A
• Next Hearing Date: 05-12-2022
• Assessment Year: misc
• Appeal Filed On: 07-06-2022
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Document seized; Documents seized
• Section: 143(3); 153C

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCHES “A” : PUNE BEFORE SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER AND SHRI DR. DIPAK P. RIPOTE, ACCOUNTANT MEMBER I.T.(SS)A No.21 & 22/PUN/2019 Assessment Years 2012-13 & 2013-14 Karan Janahavi Development Corporation, 4, Abhinav Apartments, 1284, Shivaji Nagar, Pune – 411 005 Maharashtra. vs The DCIT, Central Circle 2 (4), Aayakar Sadan, Bodhi Towers, Salisbury Park, Gultekdi, Pune – 411037 Maharashtra. Appellant Respondent Assessee by : Shri Deepak S. Sasar Revenue by : Shri Keyur Patel, CIT-DR Date of hearing : 06.12.2022 Date of pronouncement : 09.12.2022 ORDER PER SATBEER SINGH GODARA, J.M. : These assessee’s twin appeals for Assessment Years 2012-13 and 2013-2014 are directed against the Commissioner of Income Tax (Appeals)-12, Pune’s common order dated 21.01.2019 passed in case No.PN/CIT(A)- 12/10509, 10510/2017-18, respectively, in proceedings u/s.153C r.w.s. 143(3) of the Income Tax Act, 1961 [in short “the Act”]. 2. Heard both the parties. Case files perused. 3. The assessee has raised the following identical substantive grounds in the instant twin appeals : 2 I.T.(SS).A.No.21 & 22/PUN/2019 Karan Janhavi Development Corporation, Pune. 1. The Ld. CIT (A)-12 has erred in confirming the action of Assessing Officer of wrongly addition of Rs.19,20,000/- as income without appreciating the facts on the record and confrontation with various parties. 2. The Ld. CIT (A)-12 erred in not allowing Telescoping of income & the addition made by the Ld. Assessing Officer is double additions. 3. The Ld. CIT (A)-12 has erred in confirming the action of Assessing Officer regarding non consideration of the various submissions, made after post survey action to the investigation Department by the assessee in which the assessee has retracted the declaration of search statement given u/s 132(4) of the Income Tax Act 1961. 4. The Ld. CIT (A)-12 has erred in not recording the satisfaction u/s 153C of the Act. 5. The Ld. CIT (A)-12 has erred in by considering the addition of income in A.Y.2013-14, though the assessee has declared their income in A.Y.2018-19 i.e. FY. 2017- 18. 6. The Appellant crave leave to add, delete, amend, alter, vary and/ or withdraw all or any one of the above grounds of appeal. 3 I.T.(SS).A.No.21 & 22/PUN/2019 Karan Janhavi Development Corporation, Pune. 4. We first of all advert to the assessee’s legal ground challenging validity of the impugned sec.153C proceedings for want of a proper satisfaction note. There is no dispute between the parties that the department herein had carried out its search action in case of M/s. Kalyan Taware on 28.03.2016. We note from perusal of Assessing Officer’s assessment order that the said search led to “page-90 bundle No.10” containing an excel sheet indicating the assessee to have made unaccounted payments totalling to Rs.53.77 lakhs in these twin assessment years. The Assessing Officer has duly incorporated the said incriminating document in his impugned assessment order wherein it is noticed that the same “pertains to” “Karan City” project of the taxpayer’s. The Assessing Officer who is common in both the searched party as well as assessee’s case, recorded his statutory satisfaction on 25.09.2017 to proceed against the latter u/s. 153C of the Act. We thus find no merit in assessee’s forth substantive ground. The same stands rejected therefore. 5. Next comes the assessee’s remaining identical substantive grounds on merits seeking to reverse the impugned additions of Rs.33 lakhs and Rs.19.20 lakhs 4 I.T.(SS).A.No.21 & 22/PUN/2019 Karan Janhavi Development Corporation, Pune. [made as per the foregoing seized document]. Learned counsel could hardly dispute that the contents of the said seized documents indeed carry presumption of correctness regarding contents thereof u/s.292C of the Act. Faced with this situation, Mr. Deepak S. Sasar reiterated the assessee's pleadings that it had already declared the foregoing income in assessment year 2018-19 [ground no.5]. All these assessee's arguments fail to evoke our concurrence. This is for the precise reason that we are dealing with the assessee's unaccounted on-money payments made in assessment years 2012-13 and 2013-14 and, therefore, it ought to be assessed as undisclosed income in these twin assessment years only than in assessment year 2018-19. We, thus, reject the assessee's all remaining substantive grounds on merits as well. Ordered accordingly. 6. No other ground or arguments has been pressed before us. 7. These assessee's twin appeals are dismissed in above terms. A copy of this common order be placed in the respective case files. 5 I.T.(SS).A.No.21 & 22/PUN/2019 Karan Janhavi Development Corporation, Pune. Order pronounced in the open Court on 09 th December, 2022. Sd/- Sd/- (DR. DIPAK P. RIPOTE) (SATBEER SINGH GODARA) ACCOUNTANT MEMBER JUDICIAL MEMBER Pune, Dated 09 th December, 2022 VBP/- Copy of the Order forwarded to : 1. The Appellant. 2. The Respondent. 3. The CIT(A), concerned. 4. The Pr. CIT, concerned. 5 . DR, ITAT, “A” Bench, Pune. 6. Guard File. BY ORDER, // TRUE COPY // Senior Private Secretary ITAT, Pune.