Dharmen Marble & Stone, Ahmedabad V. ACIT, Central Circle-1(2), Ahmedabad

ITSSA 285/AHD/2018

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 3417 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 7 month(s) 27 day(s)
• Appeal Type: Income Tax (Search & Seizure) Appeal
• Pronouncement Date: 11-06-2021
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2011-2012
• Appeal Filed On: 15-10-2018
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: VIRENDARA OJHA
• Keywords: Unexplained cash credit; Tax effect
• Section: 153; 153C; 69; 132; 2; 139

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH, AHMEDABAD [THROUGH VIRTUAL COURT] BEFORE SHRI RAJPAL YADAV, VICE-PRESIDENT AND SHRI PRADIPKUMAR KEDIA, ACCOUNTANT MEMBER IT(SS)A.NO.285/AHD/2018 / ASSTT.YEAR : 2011-12 DHARMEN MARBLE & STONE 16, JADAV CHAMBERS ASHRAM ROAD AHMEDABAD 380 009. PAN : AABFD 5172 B. VS. ACIT, CENT.CIR.1(2)(3) AHMEDABAD. / (APPELLANT) / (RESPONDENT) ASSESSEE BY : SHRI NUPUR SHAH, AR REVENUE BY : SHRI VIRENDARA OJHA, CIT-DR / DATE OF HEARING : 09/06/2021 / DATE OF PRONOUNCEMENT: 11/06/2021 !'/ O R D E R PER RAJPAL YADAV, VICE-PRESIDENT PRESENT APPEAL IS DIRECTED AT THE INSTANCE OF THE A SSESSEE AGAINST ORDER OF THE LD.CIT(A)-11, AHMEDABAD DATED 21.8.201 8 PASSED FOR THE ASSTT.YEAR 2011-12. 2. THE GROUNDS RAISED IN THE APPEAL OF THE ASSESSEE ARE DESCRIPTIVE IN NATURE. IN BRIEF, GRIEVANCE OF THE ASSESSEE IS THAT THE NOTICE ISSUED UNDER SECTION 153C OF THE INCOME TAX ACT, 1961 UPON THE ASSESSEE AND ASKING IT TO FILE RETURN OF INCOME, WAS ILLEGAL AND WITHOUT JURISDICTION. THEREFORE, THE ASSESSMENT ORDER DESERVES TO BE QUAS HED. 3. WE HAVE DULY CONSIDERED RIVAL SUBMISSIONS AND GO NE THROUGH THE RECORD CAREFULLY. THE ASSESSEE HAS FILED ITS ORIGI NAL RETURN OF INCOME IT(SS)A NO.285/AHD/2018 2 UNDER SECTION 139 DECLARING TOTAL INCOME AT RS.2,01 ,640/-. A SEARCH UNDER SECTION 132 OF THE ACT WAS CONDUCTED IN THE G ROUP CASES OF BARTER GROUP/ACCOMMODATION ENTRY PROVIDER GROUP OF AHMEDAB AD ON 4.12.2014. ACCORDING TO THE AO, DURING THE COURSE OF SEARCH CERTAIN INCRIMINATING MATERIALS WERE FOUND AND SEIZED. ON PERUSAL OF THESE MATERIALS, IT INDICATED THAT CERTAIN DETAILS WERE B ELONGED TO THE ASSESSEE, AND THEREFORE, A NOTICE UNDER SECTION 153 C WAS REQUIRED TO BE SERVED UPON IT. ACCORDINGLY, A NOTICE UNDER SECTIO N 153C WAS ISSUED TO THE ASSESSEE ON 26.9.2016. AFTER HEARING THE ASSES SEE, THE LD.AO HAS PASSED ASSESSMENT ORDER ON 30.12.2016. HE DETERMIN ED TAXABLE INCOME AS UNDER: 6. AFTER EXAMINATION OF THE DETAILS, AND DISCUSSIO N HELD WITH THE AR OF THE ASSESSEE & AS IN PRECEDING PARAS OF T HIS ORDER AND SUBJECT TO THE DETAILS MADE AVAILABLE BY THE ASSESS EE, THE TOTAL INCOME OF THE ASSESSEE IS COMPUTED AS UNDER: INCOME AS SHOWN BY THE ASSESSEE RS. 201640 ADD BACK U/S 69 UNEXPLAINED CREDIT ENTRIES IN THE BANK ACCOUNT RS. 6,66,550 U/S.68 UNSECURED LOAN DURING THE YEAR RS. 54,34,280 TOTAL RS. ROUNDED OFF 4. ON APPEAL, THE LD.CIT(A) HAS DELETED BOTH THE AD DITIONS I.E. ADDITION OF RS.53,34,280/- AND RS.6,66,550/-. 5. THE LD.CIT-DR AT THE OUTSET SUBMITTED THAT AGAIN ST THE ORDER OF THE LD.CIT(A), NO APPEAL HAS BEEN PREFERRED BY THE REVENUE. MOREOVER, TAX EFFECT BY VIRTUE OF RELIEF GIVEN BY THE CIT(A) IS LESS THAN THE MANDATORY LIMIT REQUIRED FOR CHALLENGING SUCH ORDER . THEREFORE, EVEN IF THE APPEAL IS BEING FILED BELATEDLY, THEN ALSO IT I S NOT MAINTAINABLE. THE ASSESSEE HAS RAISED A PRELIMINARY ISSUE WITH REGARD TO JURISDICTION OF THE IT(SS)A NO.285/AHD/2018 3 AO. NOW IN VIEW OF THE CIT(A)S ORDER ON MERIT, IT BECOMES AN ACADEMIC ONLY. ON THE OTHER HAND, THE LD.COUNSEL FOR THE ASSESSEE SUBMITTED THAT THIS ISSUE WILL CROP UP IN THE CASE OF LARGE NUMBER OF ASSESSEES BECAUSE NOTICES UNDER SECTION 153C HAVE B EEN ISSUED ON NUMBER PERSONS. THEREFORE, IT IS NECESSARY TO RECO RD A FINDING ON THE LEGAL ISSUE. 6. ON DUE CONSIDERATION OF THE ABOVE FACTS AND CIRC UMSTANCES, WE ARE OF THE VIEW THAT ADDITION MADE BY THE AO HAS AL READY BEEN DELETED BY THE CIT(A) ON MERIT. THE ORDER OF THE CIT(A) HA S NOT BEEN CHALLENGED BY THE REVENUE IN FURTHER APPEAL. THERE FORE, ADJUDICATION OF LEGAL ISSUE AT THIS STAGE WOULD ONLY AN ACADEMIC EX ERCISE. IT IS NOT GOING TO MATERIALLY AFFECT THE ASSESSEE IN ANY MANN ER. NO OTHER PROCEEDINGS, IN CONSEQUENCE TO THIS PROCEEDING QUA THE ASSESSEE ARE PENDING. THEREFORE, WE DO NOT DEEM IT NECESSARY TO DEVOTE TIME ENERGY FOR RESOLVING AN ACADEMIC LITIGATION. TO OU R MIND, TO SOME EXTENT THIS APPEAL OF THE ASSESSEE HAS BECOME REDUN DANT. HOWEVER, KEEPING IN VIEW EVERY ASPECT AND SAFEGUARDING THE A SSESSEE, WE OBSERVE THAT DISMISSAL OF THIS APPEAL WILL NOT CAUS E ANY PREJUDICE TO OTHER ASSESSEE, WHO MAY CHALLENGE IDENTICAL NOTICE ON ACCOUNT OF SEARCH CONDUCTED AT BARTER. IT WILL NOT AFFECT THE CASE O F THE AO QUA OTHER ASSESSEES. IN FUTURE, ON ACCOUNT OF SOME PROCEEDIN GS FOR ADJUDICATION ON THE VALIDITY OF THE NOTICE ARISES, THEN THE ASSE SSEE WILL BE AT LIBERTY TO APPLY FOR RECALL OF THIS ORDER, AND MAY PRESS TH IS GROUND OF APPEAL. WITH THE ABOVE OBSERVATION, THIS APPEAL IS DISMISSE D. 6. IN THE RESULT, APPEAL OF THE ASSESSEE IS DISMISS ED. ORDER PRONOUNCED IN THE COURT ON 11 TH JUNE, 2021 AT AHMEDABAD. SD/- (PRADIPKUMAR KEDIA) ACCOUNTANT MEMBER SD/- (RAJPAL YADAV) VICE-PRESIDENT AHMEDABAD; DATED 11/06/2021