Mr. Ashwin Trambaklal Sanghavi, RAJKOT-GUJARAT V. The Assistant Commissioner of Income Tax, Central Circle-2, RAJKOT-GUJARAT

ITSSA 30/RJT/2011

• Counselvise Citation: [2012] 121 COUNSELVISE.COM (IT) 8276 (ITAT-RAJKOT)
• Duration Of Justice: 5 month(s) 30 day(s)
• Appeal Type: Income Tax (Search & Seizure) Appeal
• Pronouncement Date: 08-06-2012
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2003-2004
• Appeal Filed On: 09-12-2011
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: MK SINGH
• Assessee Lawyers: WRITTEN SUBMISSIONS FILED
• Section: 153A

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBULAL; RAJKOT BENCH, RAJKOT. . .. . . .. . , , , , . .. . . .. . , , , , $ $ $ $ BEFORE SHRI T. K. SHARMA, JM AND SHRI D. K. SRIVAST AVA, AM IT(SS)A NO. 30/RJT/2011. / ASSESSMENT YEAR 2003-04. SHRI ASHWIN TRAMBAKLAL SANGHVI, KARM, 11, RAMKRISHNANAGAR, NEAR GARDEN, RAJKOT. PAN : AGBPS 6851 N. ( */ APPELLANT) VS. THE ASSTT. COMMISSIONER OF INCOME TAX, CENTRAL CIRCLLE,-2, RAJKOT. +,*/ RESPONDENT -. / ASSESSEE BY WRITTEN SUBMISSIONS FILED. . / REVENUE BY SHRI. M. K. SINGH, D.R. . / DATE OF HEARING 28-05-2012 . / DATE OF PRONOUNCEMENT 08-06-2012 / / / / ORDER . .. . . . . . , , , , / T. K. SHARMA, J. M. THIS APPEAL BY THE ASSESSEE IS AGAINST THE ORDER DATED 18-10-2011 OF C IT (A)-IV, AHMEDABAD CONFIRMING THE ADDITION OF RS.2,15,373/- AS INCOME FROM NSS WITHDRAWALS, IN AN ASSESSMENT FRAMED U/S.153A OF THE INCOME TAX ACT, 1 961 FOR THE ASSESSMENT YEAR 2003-04. 2. ON THE DATE OF HEARING, NONE WAS PRESENT FROM TH E SIDE OF THE ASSESSEE. HOWEVER, WRITTEN SUBMISSIONS WERE FURNISHED. WE TH EREFORE, PROCEED TO DECIDE THIS APPEAL ON THE BASIS OF WRITTEN SUBMISSIONS AND COMMENTS OF THE LD. D.R. THEREON. 3. IN THE WRITTEN SUBMISSIONS, IT IS CONTENDED THAT ADDITION ON ACCOUNT OF INCOME FROM NSS WITHDRAWAL CANNOT BE MADE IN AN ASS ESSMENT FRAMED U/S.153A IT(SS)A 30/RJT/2011 2 OF THE INCOME TAX ACT, 1961. IN SUPPORT OF THIS, RE LIANCE WAS PLACE ON THE FOLLOWING DECISIONS:- 1) ABHAY KUIMAR SHROFF VS.CIT (HIGH COURT OF JARKH AND) 290 ITR 114 2) ANIL KUMAR BHATIA & ORS.(2010) 1 ITR (TRIB) 484 (DEL) 3) MEGHMANI ORGANICS LTD. (2010) 129 TTJ (AHD) 255 4) SUNCITY ALLOYS (P) LTD. (2009) 124 TTJ (JD) 674 , AND 5) LMJ INTERNATIONAL LTD. (2008) 119 TTJ (KOL) 214 . 4. ON THE OTHER HAND, SHRI M. K. SINGH, D.R. APPEAR ED ON BEHALF OF THE REVENUE POINTED OUT THAT THE HONBLE ANDHRA PRADESH HIGH COURT IN THE CASE OF MR. GOPAL LAL BHADRUKA & ORS.VS. DCIT REPORTED IN 2 012-TIOL-357-HC-AP-IT HELD THAT FOR THE PURPOSE OF COMPUTING INCOME U/S. 153A OF THE INCOME-TAX ACT THE AO IS NOT REQUIRED TO CONFINE HIMSELF ONLY TO T HE MATERIALS FOUND DURING THE COURSE OF SEARCH OPERATIONS. HE SUBMITTED THAT AO CAN TAKE INTO CONSIDERATION MATERIAL OTHER THAN WHAT WAS AVAILABLE DURING THE S EARCH AND SEIZURE OPERATION FOR MAKING OF ASSESSMENT OF UNDISCLOSED INCOME OF T HE ASSESSEE. 5. RIVAL SUBMISSIONS WERE CONSIDERED. WE HAVE ALSO GONE THROUGH THE ORDER OF AUTHORITIES BELOW. IT IS PERTINENT TO NOTE THAT IN THIS CASE, SEARCH ACTION U/S.132 OF THE I.T. ACT WAS CARRIED OUT AT THE PREMISES OF ASSESSEE ON 12-01-2009. THE AO ASKED THE ASSESSEE TO FILE RETURN OF INCOME U/S. 153 WITHIN 30 DAYS. THE ASSESSEE FILED RETURN OF INCOME ON 28-08-2009 (AFTE R THE SEARCH) DECLARING TOTAL INCOME OF RS.2,71,840/- WHICH INCLUDED CAPITAL GAIN OF RS.14,634/-. ADMITTEDLY, IN THIS RETURN OF INCOME, THE ASSESSEE HAS NOT DECL ARED THE INCOME TO THE TUNE OF RS.2,15,373/-. AS PER THE PROVISIONS CONTAINED IN SEC.153A, AO IS REQUIRED TO ASSESS OR REASSESS THE TOTAL INCOME AS PROVIDED IN SEC.153A OF THE I.T. ACT. THIS IS WHAT EXACTLY HAS BEEN DONE BY AO IN THE IMPUGNED ORDER. WE ARE THEREFORE, OF THE VIEW THAT ADDITION WAS RIGHTLY MADE AS NSS WITH DRAWAL IS TAXABLE AND IT WAS DUTY OF THE ASSESSEE TO DECLARE THIS INCOME IN THE RETURN OF INCOME FILED U/S.153A OF THE I.T. ACT. SINCE THE ASSESSEE FAILED TO DISC LOSE IT IN THE RETURN OF INCOME, IT IT(SS)A 30/RJT/2011 3 WAS RIGHTLY TAXED AS UNDISCLOSED INCOME U/S.153A OF THE INCOME-TAX ACT. WE THEREFORE, DECLINED TO INTERFERE. 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS DIS MISSED. THIS ORDER IS PRONOUNCED IN THE OPEN COURT ON THE DATE MENTIONED HEREINABOVE. SD/- SD/- ( .. / D. K. SRIVASTAVA) ( .. / T. K. SHARMA) / ACCOUNTANT MEMBER /JUDICIAL MEMBER 3/ ORDER DATE : 08-06-2012. /RAJKOT . .. . +4 +4 +4 [phone] / COPY OF ORDER FORWARDED TO:- 1. * / APPELLANT-MR. ASHWIN TRAMBAKLAL SANGHVI, RAJKOT. . 2. +,* / RESPONDENT- THE ASSTT. CIT, CENTRAL CIRCLE-2, RA JKOT.. 3. : / CONCERNED CIT(CENTRAL)-II, AHMEDABAD. 4. :- / CIT (A)-IV, AHMEDABAAD... 5. 4 +, , / DR, ITAT, RAJKOT 6. / GUARD FILE. / BY ORDER , ASSTT. REGISTRAR , INCOME TAX APPELLATE TRIBUNAL, RAJKOT.