ACIT, Bangalore V. Mr. Raffi Baig, Bangalore

ITSSA 29/BANG/2008

• Counselvise Citation: [2019] 112 COUNSELVISE.COM (IT) 3304 (ITAT-BANGALORE)
• Duration Of Justice: 11 year(s) 7 month(s) 18 day(s)
• Appeal Type: Income Tax (Search & Seizure) Appeal
• Pronouncement Date: 28-11-2019
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: misc
• Appeal Filed On: 10-04-2008
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: K R NARAYANAN
• Assessee Lawyers: V SRINIVASAN
• Keywords: Unexplained cash credit; Unexplained investment; Tax effect
• Section: 68

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH : BANGALORE BEFORE SHRI ARUN KUMAR GARODIA, ACCOUNTANT MEMBER AND SHRI PAVAN KUMAR GADALE, JUDICIAL MEMBER I T (SS) A NO. 29 /BANG/20 08 BLOCK PERIOD : 01.04.1995 TO 26.03.2002) THE ASSISTANT COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE 2 (2), BANGALORE. VS. SHRI RAFFI BAIG, 195/1, KWAJA MANSION, DAS COMPOUND, BASAVANGUDI, BANGALORE 560 004. PAN: ABDPR6537M APPELLANT RESPONDENT ASSESSEE BY : SHRI V. SRINIVASAN, ADVOCATE REVENUE BY : SHRI K.R. NARAYANAN, JCIT (DR) DATE OF HEARING : 20 . 11 .2019 DATE OF PRONOUNCEMENT : 28 . 1 1 .2019 O R D E R PER SHRI A.K. GARODIA, ACCOUNTANT MEMBER THIS APPEAL IS FILED BY THE REVENUE AND THE SAME IS DIRECTED AGAINST THE ORDER OF LD. CIT(A)-V, BANGALORE DATED 06.02.2008 FOR THE BLOCK PERIOD 01.04.1995 TO 26.03.2002. 2. THE GROUNDS RAISED BY THE REVENUE ARE AS UNDER. 1 THE LEARNED CIT(A) HAS ERRED IN GIVING RELIEF OF RS.7.5 LAKHS TO THE ASSESSEE FROM THE ADDITION DONE BY THE ASSESSING OFFICER UNDER THE HEAD 'UNEXPLAINED INVESTMENT' IN OM SHAKTI ENTERPRISES. 2 THE LEARNED CIT(A) OUGHT TO HAVE APPRECIATED THAT THE ASSESSEE HAS FAILED TO PRODUCE ANY EVIDENCE IN RESPECT OF LOAN OF RS.30 LAKHS SHOWN BY HIM IN THE SOURCE OF INVESTMENT OF RS.197 LAKHS. 3 THE LEARNED CIT(A) HAS ERRED IN DELETING THE ADDITION OF RS.10 LAKHS DONE UNDER THE HEAD UNEXPLAINED CASH CREDIT TAKEN FROM SHRI K K SHASHI BABU. 4 THE LEARNED CIT(A) HAD OUGHT TO HAVE APPRECIATED THAT THE ASSESSEE HAS NOT PROVED THE CREDIT-WORTHINESS OF THE CREDITOR, WHICH IS A PRE- IT(SS)A NO. 29/BANG/2008 PAGE 2 OF 3 REQUISITE FOR ADMITTING THE LOAN U/S 68 OF THE ACT. 5 THE LEARNED CIT(A) HAS ERRED IN DELETING THE ADDITION OF RS.5 LAKHS DONE ON THE LOAN FROM MR. MOHD ANWAR AND MR. MOHD ANSAR. 6 THE LEARNED CIT(A) HAS OUGHT TO HAVE APPRECIATED THAT THE ASSESSING OFFICER HAS TRIED TO PROVE THAT THE SOURCE OF LOAN SHOWN BY THE CREDITOR DURING THE A Y 1999-00 IS NOT SUPPORTED BY ANY EVIDENCE. 7 THE LEARNED CIT(A) HAS ERRED IN DELETING THE ADDITION OF RS.2,29,500/- DONE BY THE ASSESSING OFFICER ON ACCOUNT OF UNEXPLAINED SOURCE U/S 68 OF THE ACT. 8 THE LEARNED CIT(A) OUGHT TO HAVE APPRECIATED THAT THE ASSESSEE HAS FAILED TO PRODUCE EVIDENCE FOR THE ADVANCE OF RS.2,29,500/-. 3. THE LD. DR OF REVENUE SUPPORTED THE ASSESSMENT ORDER WHEREAS THE IT IS SUBMITTED BY LD. AR OF ASSESSEE THAT THIS APPEAL OF REVENUE IS NOT MAINTAINABLE BECAUSE OF LOW TAX EFFECT. 4. THIS IS BY NOW SETTLED POSITION OF LAW THAT CBDT INSTRUCTIONS REGARDING LOW TAX EFFECT IS APPLICABLE TO PENDING APPEALS ALSO AND IN THE PRESENT CASE, THE REVENUE COULD NOT SHOW THAT THE TAX EFFECT IN THE PRESENT APPEAL IS NOT BELOW RS. 50 LAKHS. HENCE, WE HOLD THAT THE PRESENT APPEAL OF REVENUE IS NOT MAINTAINABLE BECAUSE OF LOW TAX EFFECT AND THE SAME IS DISMISSED ACCORDINGLY. 5. IN THE RESULT, THE APPEAL FILED BY THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON THE DATE MENTIONED ON THE CAPTION PAGE. SD/- SD/- (PAVAN KUMAR GADALE) (ARUN KUMAR GARODIA) JUDICIAL MEMBER ACCOUNTANT MEMBER BANGALORE, DATED, THE 28 TH NOVEMBER, 2019. /MS/ IT(SS)A NO. 29/BANG/2008 PAGE 3 OF 3 COPY TO: 1. APPELLANT 4. CIT(A) 2. RESPONDENT 5. DR, ITAT, BANGALORE 3. CIT 6. GUARD FILE BY ORDER ASSISTANT REGISTRAR, INCOME TAX APPELLATE TRIBUNAL, BANGALORE.