Shreem Soil Development Pvt. Ltd., Ahmedabad V. The Dy. CIT, Central Circle-1(4), Ahmedabad

ITSSA 403/AHD/2017

• Counselvise Citation: [2017] 122 COUNSELVISE.COM (IT) 3500 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 month(s) 14 day(s)
• Appeal Type: Income Tax (Search & Seizure) Appeal
• Pronouncement Date: 20-12-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2011-2012
• Appeal Filed On: 06-10-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: A C SHAH
• Keywords: Income from undisclosed sources; Assessment record

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD B BENCH (BEFORE SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER & SHRI MAHAVIR PRASAD, JUDICIAL MEMBER) IT(SS)A. NOS: 403 TO 405/AHD/2017 & ITA NO. 2226/AHD/2017 (ASSESSMENT YEARS: 2011-12 TO 2013-14 & 2014-15) SHREEM SOIL DEVELOPMENT PVT. LTD., 3 RD FLOOR, SOLITAIRE BUILDING, OPP. BOMBAY GARAGE, SAHIBAUG, AHMEDABAD-380004 V/S THE D.C.I.T. CENTRAL CIRCLE-1(4), AHMEDABAD (APPELLANT) (RESPONDENT) PAN: AAOCS2566A APPELLANT BY : SHRI A.C. SHAH, AR RESPONDENT BY : SHRI MUDIT NAGPAL, SR. D.R. ( )/ ORDER DATE OF HEARING : 19 -12-201 7 DATE OF PRONOUNCEMENT : 20-12-2017 PER N.K. BILLAIYA, ACCOUNTANT MEMBER 1. THESE FOUR APPEALS BY THE ASSESSEE ARE PREFERRED AG AINST SEPARATE ORDERS OF THE LD. CIT(A)-11, AHMEDABAD DATED 27.07.2017 PERTAININ G TO A.Y. 2011-12, 2012- 13, 2013-14 & 2014-15. IT(SS)A NOS. 403 TO 405/AHD/2017 & ORS. . A.YS. 2011-12 TO 2 014-15 2 2. SINCE IN THIS BUNCH OF APPEALS, THE GRIEVANCE OF TH E ASSESSEE IS COMMON, THEREFORE, THEY WERE HEARD TOGETHER AND ARE DISPOSE D OF BY THIS COMMON ORDER FOR THE SAKE OF CONVENIENCE AND BREVITY. 3. THE SUM AND SUBSTANCE OF THE GRIEVANCE OF THE ASSES SEE IS THAT THE ASSESSING OFFICER AND THE FIRST APPELLATE AUTHORITY HAVE NOT CONSIDERED THE DISCLOSURE MADE BY THE ASSESSEE IN HIS STATEMENT RECORDED U/S. 132(4) OF THE ACT IN TRUE PERSPECTIVE. 4. BEFORE US, THE LD. COUNSEL FOR THE ASSESSEE VEHEMEN TLY STATED THAT THE DISCLOSURE MADE BY THE GROUP WAS BIFURCATED IN THE HANDS OF DI FFERENT MEMBERS OF THE GROUP AND THE DISCLOSURE WAS HONOURED BY INCLUDING THE UNDISCLOSED INCOME DECLARED AT THE TIME OF SEARCH IN THE HANDS OF THE OTHER ASSESSEES OF THE GROUP. THE LD. COUNSEL FURTHER STATED THAT BY ADDING THE S AME INCOME IN THE HANDS OF THE ASSESSEE AMOUNTED TO DOUBLE ADDITION OF THE SAM E UNDISCLOSED INCOME. 5. A PERUSAL OF THE RECORD SHOWS THAT FOLLOWING QUESTI ON WAS ASKED AND ANSWERED WHILE RECORDING THE STATEMENT U/S. 132(4) OF THE AC T OF SHRI VIJAYNARAYAN JAJU ON 14.06.2013:- 60. . . 58 RS. 16,42,51,000/- TOTAL AMOUNT SHREEM GROUP INCOME BOOKS OF ACCOUNTS !' AMOUNT RS. 16,42,51,000/- SHREEM GROUP # CASH SALE PLOTS $ SHREEM GROUP # % COMPANY FIRM BOOKS OF ACCOUNTS !' & SHREEM GROUP UNACCOUNTED INCOME & ' IT(SS)A NOS. 403 TO 405/AHD/2017 & ORS. . A.YS. 2011-12 TO 2 014-15 3 6. THE STATEMENT WAS CONCLUDED WITH THE FOLLOWING : 75. () # * + ' , . . 60 RS. 16,42,51,000/- SHREEM GROUP UNACCOUNTED INCOME - # TAX )# % .(/ , & ' RS. 16,42,51,000/- UNACCOUNTED INCOME ! 01.(2' UNACCOUNTED INCOME 3.( , (1) )4 56#7 # UNACCOUNTED INCOME DECLARE 8 )# RS. 1.96 CRORE (2) VIJAY JAJU, RESIDENCE # GOLD - DIAMOND .( )# AMOUNT PURCHASE (3) ANANT GREENS PROJECT SCHEME # CASH AMOUNT RECEIVE )# RS. 6.08 CRORE )# % RS. 16,42,51,000/- 3.( (4) PLOT NO. 203- SANJAY J. PANCHAL # RS. 13 LACS CASH RECEIVE )# 3.( (5) B.NO. 72- SHILPA S. PANCHAL # CASH RS. 7 LACS RECEIVE )# % RS. 16,42,51,000/- 3.( (6) ANANT DHARA SCHEME # CASH AMOUNT RECEIVE )# RS. 69.43 LACS % 3.( $ YEARWISE BREAK UP - 9 COMPANY FIRM DISCLOSURE # )# , # ! : ;))< ! ! * () , FARMERS # # CASH RS. 45 LACS ! )# % AMOUNT RS. 16,42,51,000/- 3.( #= 0)! , #> , ? !) 4 , * 8 ! # * & 7. ON 22.11.2013 BY A LETTER ADDRESSED TO ITO (INV.), THE ASSESSEE BIFURCATED THE DISCLOSURE AS UNDER:- SHRI M.J. RANA DT. 22/11/13 INCOME TAX OFFICER (INV.) UNIT-1/WARD-1, AHMEDABAD IT(SS)A NOS. 403 TO 405/AHD/2017 & ORS. . A.YS. 2011-12 TO 2 014-15 4 SUB: MY STATEMENT RECORDED U/S. 132(4) SIR, WITH REFERENCE TO MY STATEMENT RECORDED U/S. 132(4) DURING THE COURSE OF SEARCH, I AM ENCLOSING HEREWITH THE YEAR WISE & COMPANY WISE BREAK UP OF I NCOME DISCLOSE, AS PER DETAILS GIVEN BELOW. FINANCEIER YEAR PARTICULARS PROJECT NAME 09 - 10 10 - 11 11 - 12 12 - 13 13 - 14 TOTAL SHREEM DEVELOPERS ANANT GREENZ 7200000.00 16200000. 00 1800000.00 25800000.00 40207400.00 91207400.00 SHREEM SOIL DEVELOPME NT PVT. LTD. ANANT DREAMZ 0.00 0.00 90000.00 14000000.00 24000000.00 38900000.00 SHREEM CONSTRUCTIO N ANANT AKSHAR 0.00 0.00 0.00 500000 .00 0.00 500000.00 SHREEM BUILDERS ANANT DHARA 0.00 0.00 0.00 0.00 6843600.00 6843600.00 MARWADI STORES EXTENTION TEXTILE C/O. MARWADI STORE EXE. 0.00 0.00 0.00 0.00 19300000.00 19300000.00 VIJAY JAJU PERSONAL 0.00 0.00 0.00 2000000.00 2500000.00 4 500000.00 ANAND PATEL PERSONAL 0.00 0.00 0.00 1500000.00 1500000.00 3000 000.00 TOTAL 7200000.00 16200000. 00 2700000.00 43800000.00 94351000.00 164251000.00 THANKS & REGARDS, FOR, SHREEM GROUP OF COMPANIES VIJAYNARAYAN R. JAJU 8. WE HAVE CAREFULLY PERUSED THE ASSESSMENT ORDERS IN THE CASE OF SHREEM DEVELOPERS WHICH ARE EXHIBITED AT PAGES 2 TO 35 OF THE PAPER BOOK. THE ASSESSMENT ORDER OF SHREEM CONSTRUCTION IS EXHIBITE D AT PAGES 36 TO 38 , SHREEM BUILDERS AT PAGES 39 TO 43, SHRI VIJAYNARAYA N R. JAJU AT PAGES 44 TO 47 AND SHRI ANAND PATEL FROM PAGES 48 TO 50 OF THE PAP ER BOOK. 9. WE FIND THAT NOBODY ATTENDED DURING THE ASSESSMENT PROCEEDINGS OF THE ASSESSEE NOR ANYBODY ATTENDED PROCEEDINGS BEFORE TH E FIRST APPELLATE AUTHORITY. THEREFORE, IT APPEARS THAT THE ASSESSMEN TS MADE IN THE CASES OF OTHER ASSESSEES OF THE GROUP WERE NOT VERIFIED AND THE EN TIRE DISCLOSURE AMOUNT HAS BEEN ADDED IN THE HANDS OF THE APPELLANT ASSESSEE. IT(SS)A NOS. 403 TO 405/AHD/2017 & ORS. . A.YS. 2011-12 TO 2 014-15 5 10. IN OUR CONSIDERED OPINION, A GRAVE PREJUDICED HAS B EEN CAUSED TO THE ASSESSEE BY SUCH NON VERIFICATION. THEREFORE, IN THE INTERES T OF JUSTICE, WE RESTORE THESE APPEALS TO THE FILES OF THE A.O. THE A.O. IS DIRECT ED TO VERIFY FROM THE ASSESSMENT RECORDS OF SHREEM DEVELOPERS AND OTHERS, THE AMOUNT OF UNDISCLOSED INCOME OFFERED DURING THE COURSE OF THE SEARCH PROCEEDINGS AS PER THE STATEMENT MENTIONED HEREINABOVE. IF THE A.O. IS SATISFIED THAT THE UNDISCLOSED INCOME HAS BEEN TAXED IN THE HANDS OF O THER MEMBERS OF THE GROUP THEN THERE IS NO REASON WHY THE SAME INCOME S HOULD BE TAXED IN THE HANDS OF THE ASSESSEE. THE ASSESSEE IS DIRECTED TO FURNISH NECESSARY DETAILS AND SUBSTANTIATE ITS CLAIM BEFORE THE ASSESSING OFFICER . 11. IN THE RESULT, ALL THESE APPEALS ARE TREATED AS ALL OWED FOR STATISTICAL PURPOSE. ORDER PRONOUNCED IN OPEN COURT ON 20- 12- 20 17 SD/- SD/- (MAHAVIR PRASAD) (N. K. BILLAIYA) JUDICIAL MEMBER TRUE COPY A CCOUNTANT MEMBER AHMEDABAD: DATED 20/12/2017 RAJESH COPY OF THE ORDER FORWARDED TO: - 1. THE APPELLANT. 2. THE RESPONDENT. 3. THE CIT (APPEALS) 4. THE CIT CONCERNED. 5. THE DR., ITAT, AHMEDABAD. 6. GUARD FILE. BY ORDER DEPUTY/ASSTT.REGISTRAR ITAT,AHME DABAD