M/s Parth Enterprise, RAJKOT-GUJARAT V. The Dy. Commr. of Income Tax, Cen. Cir.-2, RAJKOT-GUJARAT

ITSSA 41/RJT/2013

• Counselvise Citation: [2016] 122 COUNSELVISE.COM (IT) 2087 (ITAT-RAJKOT)
• Duration Of Justice: 2 year(s) 5 month(s)
• Appeal Type: Income Tax (Search & Seizure) Appeal
• Pronouncement Date: 05-05-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2009-2010
• Appeal Filed On: 05-12-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Unexplained expenditure
• Section: 153A; 132

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL RAJKOT BENCH, RAJKOT [CONDUCTED THROUGH E-COURT AT AH MEDABAD] (BEFORE SHRI RAJPAL YADAV, JUDICIAL MEMBER & SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER) IT(SS)A. NO: 41/RJT/2013 (ASSESSMENT YEAR: 2009-10) M/S. PARTH ENTERPRISE 101, SHANKUTAL, OPP. LALAKIA PARIMAL SCHOOL, KALAVAD ROAD, RAJKOT V/S THE DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-2, RAJKOT (APPELLANT) (RESPONDENT) PAN: AAACW1838K APPELLANT BY : NONE RESPONDENT BY : SHRI YOGESH PANDEY, CIT/DR ( )/ ORDER DATE OF HEARING : 03 -05-201 6 DATE OF PRONOUNCEMENT : 05 -05-2016 PER N.K. BILLAIYA, ACCOUNTANT MEMBER: 1. THIS APPEAL BY THE ASSESSEE IS PREFERRED AGAINST TH E ORDER OF LD. CIT(A)-IV, AHMEDABAD DATED 23.10.2013 PERTAINING TO A.Y. 2009-10. IT(SS)A NO. 41/RJT/2013 . A.Y. 2009-10 2 2. THE SOLE GRIEVANCE OF THE ASSESSEE RELATES TO THE A DDITION OF RS. 3,23,387/- MADE BY THE A.O OUT OF UNEXPLAINED BOGUS EXPENDITURE. 3. BRIEFLY STATED THE FACTS OF THE CASE ARE THAT A SEA RCH ACTION U/S. 132 OF THE ACT WAS CARRIED OUT AT THE PREMISES OF THE ASSE SSEE ON 24.06.2010. DURING THE COURSE OF SEARCH, VARIOUS MA TERIALS WERE FOUND AND SEIZED AND ACCORDINGLY PROCEEDINGS U/S. 153A OF THE ACT WAS INITIATED. 4. DURING THE COURSE OF THE SEARCH PROCEEDINGS, CERTAI N UNSIGNED VOUCHERS WERE FOUND AND SEIZED AMOUNT TOTALING TO R S. 4,92,850/-. ASSESSEE WAS CONFRONTED WITH THESE VOUCHERS AND EXP LANATION WAS SOUGHT. IT WAS STATED THAT THE VOUCHERS BELONGS TO THE FIRM M/S. PARTH ENTERPRISE AND, THEREFORE, NECESSARY ACTION SHOULD BE TAKEN IN ITS CASE. 5. ON FURTHER PROBE, THE OFFICER FOUND THAT THE ASSESS EE HAS RECEIVED SUB- CONTRACT PAYMENT FOR THE SITE AT BHANWAD FOR A.Y. 2 009-10 RS. 43,36,310/- AND FOR A.Y. 2010-11 RS. 16,57,240/-. T HE A.O WAS OF THE FIRM BELIEF THAT THESE VOUCHERS ARE IN RESPECT OF E XPENSES OF BHANWAD SITE. THE A.O STRENGTHENED HIS VIEW BY THE FACT THA T THE ASSESSEE ITSELF HAS SUO MOTU DISALLOWED RS. 1,69,463/- IN ITS COMPU TATION OF INCOME WHILE FILING THE RETURN OF INCOME FOR A.Y. 2010-11. THE A.O ACCORDINGLY DISALLOWED THE BALANCE OF RS. 3,23,387/- DURING THE YEAR UNDER CONSIDERATION. 6. ASSESSEE CARRIED THE MATTER BEFORE THE LD. CIT(A) B UT WITHOUT ANY SUCCESS. BEFORE US, THE LD. COUNSEL FOR THE ASSESSE E COULD NOT EXPLAIN WHY ON THE BASIS OF THE SAME VOUCHERS RS. 1,69,463/ - WAS DISALLOWED SUO MOTU IN A.Y. 2010-11. NOR THE LD. COUNSEL COULD ADDUCE ANY IT(SS)A NO. 41/RJT/2013 . A.Y. 2009-10 3 EVIDENCE IN DEFENSE FOR THE DELETION OF THE ADDITIO N OF RS. 3,23,387/-. THE LD. D.R. SUPPORTED THE FINDINGS OF THE LD. CIT( A). 7. WE HAVE GIVEN A THOUGHTFUL CONSIDERATION TO THE ORD ERS OF THE AUTHORITIES BELOW. IT IS AN UNDISPUTED FACT THAT OU T OF RS. 4,92,850/-, THE ASSESSEE ACCEPTED THE UNEXPLAINED EXPENDITURE A MOUNTING TO RS. 1,69,463/- FOR A.Y 2010-11. IT IS ALSO AN UNDISPUTE D FACT THAT THE ASSESSEE HAS RECEIVED SUB-CONTRACT PAYMENT OF BHANW AD SITE FOR A.Y. 2009-10 & 2010-11. IT IS MOST LOGICAL TO ASSUME THE BALANCE AMOUNT OF RS. 3,23,387/- PERTAINING TO A.Y. 2009-10. 8. AS NO PLAUSIBLE EXPLANATION HAS COME FROM THE ASSES SEE NEITHER BEFORE THE LOWER AUTHORITIES NOR BEFORE US. WE DO NOT FIND ANY REASON TO INTERFERE WITH THE FINDINGS OF THE LD. CIT(A); APPE AL FILED BY THE ASSESSEE IS ACCORDINGLY ALLOWED. ORDER PRONOUNCED IN OPEN COURT ON 05 - 05 - 2016. SD/- SD/- (RAJPAL YADAV) (N. K. BILLAIYA) JUDICIAL MEMBER ACCOUNTANT MEMBER AHMEDABAD: TRUE COPY 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, RAJKO T