Shri Ravi R. Varma, Ahmedabad V. The Income Tax Officer, Ward-10(4), Ahmedabad

ITSSA 410/AHD/2013

• Counselvise Citation: [2016] 122 COUNSELVISE.COM (IT) 2775 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 1 month(s) 18 day(s)
• Appeal Type: Income Tax (Search & Seizure) Appeal
• Pronouncement Date: 13-12-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Next Hearing Date: 09-12-2016
• Assessment Year: 2006-2007
• Appeal Filed On: 25-10-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: JAYANT JAVERI
• Assessee Lawyers: P M MEHTA; GM THAKOR
• Section: 132

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD D BENCH (BEFORE SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER & SHRI MAHAVIR PRASAD, JUDICIAL MEMBER) IT(SS)A. NO: 410/AHD/2013 (ASSESSMENT YEAR: 2006-7) SHRI RAVI R. VARMA 31-B, GOVERNMENT SERVANT SOCIETY, NR. MUNICIPAL MARKET, C.G. ROAD, NAVRANGPURA, AHMEDABAD-380006 V/S INCOME TAX OFFICER, WARD- 10(4), AHMEDABAD (APPELLANT) (RESPONDENT) PAN: AAPPV6505L APPELLANT BY : SHRI P.M. MEHTA AND G.M. THAKOR, A R RESPONDENT BY : SHRI JAYANT JAVERI, SR. D.R. ( )/ ORDER DATE OF HEARING : 09 -12-201 6 DATE OF PRONOUNCEMENT : 13 -12-2016 PER N.K. BILLAIYA, ACCOUNTANT MEMBER: 1. THIS APPEAL BY THE ASSESSEE IS PREFERRED AGAINST TH E ORDER OF LD. CIT(A)-XVI, AHMEDABAD DATED 29.08.2013 PERTAINING TO A.Y. 2006- 07. IT(SS)A NO . 410/AHD/2013 . A.Y. 2006-0 7 2 2. THE ONLY GRIEVANCE OF THE ASSESSEE RELATES TO THE L EVY OF PENALTY OF RS. 14,99,350/- U/S. 271(1)(C) OF THE ACT ON THE ADDITI ON OF RS. 49,97,832/- BEING UNEXPLAINED CASH FOUND IN THE BANK LOCKER OF THE APPELLANT. 3. A SEARCH ACTION U/S. 132 OF THE ACT WAS CARRIED OUT IN THE GROUP CASES OF SWAGAT GROUP ON 10.05.2006. DURING THE COURSE OF TH E SEARCH PROCEEDINGS AMOUNT OF RS. 49,97,832/- WAS, INTERALIA, FOUND FRO M BANK LOCKER NO. 919 OF THE ASSESSEE AT RAJKOT NAGRIK SAHAKARI BANK LTD. , MITHAKALI, AHMEDABAD. 4. THE EXPLANATION OF THE ASSESSEE REGARDING THE SOURC E OF THE CASH FOUND IN THE LOCKER WAS DISMISSED BY THE A.O. ADDITION OF RS . 49,97,832/- WAS MADE AND SIMULTANEOUSLY PENALTY PROCEEDINGS U/S. 271(1)( C) OF THE ACT WERE INITIATED. 5. DISMISSING THE EXPLANATION ONCE AGAIN THE A.O. PROC EEDED BY LEVYING PENALTY OF RS. 14,99,350/- ON THE IMPUGNED ADDITION OF RS. 49,97,832/-. 6. ASSESSEE CARRIED THE MATTER BEFORE THE LD. CIT(A) B UT WITHOUT ANY SUCCESS. 7. BEFORE US, THE LD. COUNSEL FOR THE ASSESSEE BROUGHT TO OUR NOTICE ORDER OF THE TRIBUNAL IN IT(SS)A NO. 97/AHD/2011 FOR A.Y. 20 06-07 AND POINTED OUT THAT THE IMPUGNED ADDITION HAS BEEN DELETED BY THE TRIBUNAL. THE LD. D.R. FAIRLY CONCEDED TO THIS. IT(SS)A NO . 410/AHD/2013 . A.Y. 2006-0 7 3 8. AFTER GIVING A THOUGHTFUL CONSIDERATION TO THE ORDE RS OF THE AUTHORITIES BELOW, WE HAVE CAREFULLY PERUSED THE ORDER OF THE T RIBUNAL IN QUANTUM PROCEEDINGS. 9. THE RELEVANT PART OF THE TRIBUNALS ORDER (SURPA) R EADS AS UNDER:- 7. IN IT(SS)A NO. 97/AHD/2011 FOR A.Y. 2006-07 IN C ASE OF SHRI RAVI RAMLABHAYA VARMA, THE ASSESSEE HAS TAKEN FOLLOWING GROUND OF A PPEAL:- 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CA SE, THE LEARNED CIT(A) ERRED IN CONFIRMING ADDITION OF RS. 49,97,832/- MAD E BY THE ASSESSING OFFICER ON THE GROUND THAT CASH OF RS. 49,97,832/- FOUND AT THE TIME OF SEARCH IN THE LOCKER NO. 919 OF THE APPELLANT WITH RAJKOT NAGRIK SAHAKARI BANK LTD., MITHAKALI AHMEDABAD, REMAINED UNEXPLAINE D, INSPITE OF THE FACT THAT THE SAID CASH BELONGED TO RALSON INFRASTR UCTURE PVT. LTD., DULY RECORDED IN THE REGULAR AUDITED BOOKS OF ACCOUNT OF THE AFORESAID COMPANY IN WHICH THE APPELLANT IS ONE OF THE DIRECT ORS. IN FACTS AND CIRCUMSTANCES, WE ARE OF THE VIEW THAT CASH FOUND FROM CUSTODY OF ASSESSEES AS DISCUSSED ABOVE IS NOTHING BUT INCOME OF RALSON INFRASTRUCTURE PVT. LTD. FROM ON GOING HARIOM VILLA SCHEME KEPT WITH AS SESSEE FOR ABOVE SAID PURPOSES. THIS TAKE CARE OF CASH OF RS. 6,13,921/- FROM RESIDENCE OF MAHESH VARMA IN A.Y. 2007.08 AND RS. 49,97,832/- FOUND FRO M LOCKER NO. 919 WITH RAJKOT NAGRIK SAHAKARI BANK LTD. OF RAVI VARMA FOR A.Y. 20 06-07. 10. ACCORDINGLY, THE TRIBUNAL HELD AS UNDER:- IT(SS)A NO . 410/AHD/2013 . A.Y. 2006-0 7 4 ASSESSEES APPEAL IN IT(SS)A NO. 97/AHD/2011 FOR A .Y. 2006-07 IS ALLOWED. 11. SINCE THE QUANTUM ADDITIONS HAVE BEEN DELETED BY TH E TRIBUNAL, WE DO NOT FIND ANY REASON FOR THE LEVY OF PENALTY U/S. 271(1) (C) OF THE ACT. THE A.O. IS DIRECTED TO DELETE THE IMPUGNED PENALTY. 12. APPEAL FILED BY THE ASSESSEE IS ACCORDINGLY ALLOWED . ORDER PRONOUNCED IN OPEN COURT ON 13 - 12- 201 6. SD/- SD/- (MAHAVIR PRASAD) (N. K. BILLAIYA) JUDICIAL MEMBER TRUE COPY ACCOUNTANT MEMBER AHMEDABAD: DATED 13 /12/2016 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