The ACIT, Central Circle-1(1), Ahmedabad V. Shri Navinchandra D.Karodia, Kutch

ITSSA 300/AHD/2011

• Counselvise Citation: [2015] 122 COUNSELVISE.COM (IT) 0794 (ITAT-AHMEDABAD)
• Duration Of Justice: 4 year(s) 3 month(s) 28 day(s)
• Appeal Type: Income Tax (Search & Seizure) Appeal
• Pronouncement Date: 21-07-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 30-04-2015
• Assessment Year: 2007-2008
• Appeal Filed On: 24-03-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: P B KEDIA
• Section: 143(3)

Judgement Text

IT(SS)A NO.300/AHD/2011 & CO NO.113/AHD/2011 ASSESSMENT YEAR: 2007-08 PAGE 1 OF 3 IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD A BENCH, AHMEDABAD [CORAM: PRAMOD KUMAR AM AND S.S. GODARA JM] IT(SS)A NO.300/AHD/2011 ASSESSMENT YEAR: 2007-08 ASSISTANT COMMISSIONER OF INCOME TAX, ........ .....APPELLANT CENTRAL CIRCLE-1(1), AHMEDABAD. VS. NAVINCHANDRA D. KORADIA, ............... .........RESPONDENT A-315, KATIRA SHOPPERS CITY, 1 ST FLOOR, A-WING, RTO RELOCATION SITE, BHUJ-KACHCHH. [PAN: ADSPK 1518 N] C.O. NO.113/AHD/2011 (IN IT(SS)A NO.300/AHD/2011) ASSESSMENT YEAR: 2007-08 NAVINCHANDRA D. KORADIA, ............ ............APPELLANT A-315, KATIRA SHOPPERS CITY, 1 ST FLOOR, A-WING, RTO RELOCATION SITE, BHUJ-KACHCHH. [PAN: ADSPK 1518 N] VS. ASSISTANT COMMISSIONER OF INCOME TAX, ....... ...RESPONDENT CENTRAL CIRCLE-1(1), AHMEDABAD. APPEARANCES BY: SUBHASH BAINS, FOR THE REVENUE P.B. KEDIA, FOR THE ASSESSEE DATE OF CONCLUDING THE HEARING : APRIL 30, 2015 DATE OF PRONOUNCING THE ORDER : JULY 21, 2015 O R D E R PER PRAMOD KUMAR AM: 1. THIS APPEAL FILED BY THE ASSESSING OFFICER, AS A LSO CROSS OBJECTION FILED BY THE ASSESSEE, ARE DIRECTED AGAINST THE ORDER DATED 25 TH JANUARY, 2011, PASSED BY THE IT(SS)A NO.300/AHD/2011 & CO NO.113/AHD/2011 ASSESSMENT YEAR: 2007-08 PAGE 2 OF 3 LEARNED CIT(A) IN THE MATTER OF ASSESSMENT UNDER SE CTION 153A(1)(B) R.W.S. 153C R.W.S. 143(3) OF THE INCOME TAX AT, 1961 (HEREINAFTER REFERRED TO AS THE ACT), FOR THE ASSESSMENT YEAR 2007-08. 2. IN THE APPEAL FILED BY THE ASSESSING OFFICER, TH E FOLLOWING GRIEVANCES ARE RAISED:- 1. LD. COMMISSIONER OF INCOME TAX (A) ERRED IN LAW AND ON FACTS IN DELETING THE ADDITION OF RS.77,36,080/- MADE ON ACC OUNT OF SUPPRESSION OF PROFIT BY THE ASSESSEE BY WAY OF CLI ENT CODE MODIFICATIONS BY THE BROKERS IN A LARGE NUMBER OF C OMMODITY TRANSACTIONS. 2. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CAS E AND IN LAW, THE CIT(A) OUGHT TO HAVE UPHELD THE ORDER OF THE A.O. 3. IT IS, THEREFORE, PRAYED THAT THE ORDER OF THE C IT(A) BE SET ASIDE AND THAT OF THE A.O. BE RESTORED TO THE ABOVE EXTEN T. 3. THE ASSESSE IS CARRYING ON BUSINESS OF TRADING I N SHARES AND COMMODITIES. HE IS A PART OF KUNWARJI GROUP WHICH WAS SUBJECTED TO SEARC H AND SEIZURE OPERATIONS AT VARIOUS PLACES ON 25 TH MARCH 2008. SOME OF THE PAPERS FOUND IN THIS OPERA TION, I.E. ANNEXURE 63, 64 AND 65, BELONGED TO THIS ASSESSE AS WELL. ONE O F THE COMMON FEATURES IN THIS GROUP OF CASES WAS THAT THE ASSESSING OFFICER HAS ALLEGED TH AT THE GROUP ENTITIES WERE INVOLVED IN CLIENT CODE MODIFICATIONS IN A VERY LARGE NUMBER OF CASES SO AS TO TRANSFER PROFITS AND LOSSES FROM ONE CLIENT TO ANOTHER. IT WAS FOR THIS REASON AND IN THIS BACKDROP THAT AN ADDITION OF RS 77,36,075 WAS MADE IN THE HANDS OF T HE ASSESSE. IN APPEAL, LEARNED CIT(A) DELETED THE SAID ADDITION FOLLOWING HIS ORDER IN TH E CASE OF KUNWARJI FINANCE PVT LTD. THE ASSESSING OFFICER IS AGGRIEVED AND IS IN APPEAL BEF ORE US. 4. LEARNED REPRESENTATIVES FAIRLY AGREE THAT THE IS SUE IN THIS APPEAL IS SQUARELY COVERED BY THE DECISION DATED 19 TH MARCH 2015 OF THIS TRIBUNAL IN THE CASE OF ACIT VS KUNVARJI FINANCE PVT LTD & ORS, EVEN AS LEARNED DEP ARTMENTAL REPRESENTATIVE VEHEMENTLY RELIED UPON THE STAND OF THE ASSESSING O FFICER. WE HAVE ALSO NOTICED THAT IN THE IMPUGNED ORDER, LEARNED CIT(A) HAS MERELY FOLLO WED HIS ORDER IN THE CASE OF KUNVARJI FINANCE PVT LTD WHICH HAS BEEN CONFIRMED IN THE AFO RESAID TRIBUNAL ORDER. IT(SS)A NO.300/AHD/2011 & CO NO.113/AHD/2011 ASSESSMENT YEAR: 2007-08 PAGE 3 OF 3 5. IN VIEW OF THE ABOVE POSITION, AND RESPECTFULLY FOLLOWING COORDINATE DENCH DECISION DATED 19 TH MARCH 2015 IN THE CASE OF KUNWERJI FIANCE PVT LTD (SUPRA), WE UPHOLD THE ORDER OF THE CIT(A) AND DECLINE TO INTER FERE IN THE MATTER. THE SAID TRIBUNAL ORDER WILL BE DEEMED TO BE ATTACHED TO, AND FORMING PART OF , THIS ORDER AS WELL. 6. LEARNED COUNSEL FOR THE ASSESSE DID NOT PRESS TH E CROSS OBJECTION. THE SAME IS, ACCORDINGLY, DISMISSED FOR WANT OF PROSECUTION. 7. IN THE RESULT, THE APPEAL AS ALSO THE CO ARE DIS MISSED. PRONOUNCED IN THE OPEN COURT TODAY ON 21 ST DAY OF JULY, 2015. SD/- SD/- S. S. GODARA PRAMOD KUM AR (JUDICIAL MEMBER) (ACCOUNTANT MEMBER) AHMEDABAD, THE 21 ST DAY OF JUNE, 2015 COPIES TO: (1) THE APPELLANT (2) THE RESPON DENT (3) COMMISSIONER (4) CIT(A) (5) DEPARTMENTAL REPRESENTATIVE (6) GUARD FILE BY ORDER ETC ASSISTANT/DEPUTY REGISTRAR INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCHES, AHMEDABAD