Sri Suresh Kumar Jain, Visakhapatnam V. The ACIT, Circle-2, Visakhapatnam

ITSSA 42/HYD/1996

• Counselvise Citation: [2012] 121 COUNSELVISE.COM (IT) 8054 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 15 year(s) 4 month(s) 18 day(s)
• Appeal Type: Income Tax (Search & Seizure) Appeal
• Pronouncement Date: 09-04-2012
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 09-04-2012
• Assessment Year: misc
• Appeal Filed On: 21-11-1996
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: T LUCAS PETER
• Keywords: Gift; Block assessment

Judgement Text

IT(SS)A NOS.41 TO 44/HYD/1996 SAMPATH KR. JAIN & OR S., VSKP. IN THE INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM BENCH, VISAKHAPATNAM BEFORE: SHRI SUNIL KUMAR YADAV, JUDICIAL MEMBER AND SHRI BR BASKARAN, ACCOUNTANT MEMBER IT (SS) A NO. 41 / HYD / 1996 (ARISING OUT OF ITA NO.2064/HYD/1996) BLOCK PERIOD FROM 1. 4.1985 TO 18.10.1995 SHRI SAMPATH KUMAR JAIN VISAKHAPATNAM VS. ACIT, CIRCLE - 2 VISAKHAPATNAM (APPELLANT) (RESPONDENT) GIR NO.S - 726 IT(SS)A NO.42/ HYD /1996 BLOCK PERIOD FROM 1.4.1985 TO 18.10.1995 (ARISING OUT OF ITA NO.2065/HYD/1996) SHRI SURES H KUMAR JAIN VISAKHAPATNAM VS. ACIT, CIRCLE - 2 VISAKHAPATNAM (APPELLANT) (RESPONDENT) GIR NO.S - 736 IT(SS)A NO.43/ HYD /1996 BLOCK PERIOD FROM 1.4.1985 TO 18.10.1995 (ARISING OUT OF ITA NO.2066/HYD/1996) SHRI KISHORE KUMAR JAIN VISAKHAPATNAM VS. ACI T, CIRCLE - 2 VISAKHAPATNAM (APPELLANT) (RESPONDENT) GIR NO.K - 708 IT(SS)A NO.44/ HYD /1996 BLOCK PERIOD FROM 1.4.1985 TO 18.10.1995 (ARISING OUT OF ITA NO.2067/HYD/1996) SHRI MUKESH KUMAR JAIN VISAKHAPATNAM VS. ACIT, CIRCLE - 2 VISAKHAPATNAM (APPELLA NT) (RESPONDENT) GIR NO.M-706 APPELLANT BY: SHRI G.V.N. HARI, CA RESPONDENT BY: SHRI T. LUCAS PETER, SR.DR DATE OF HEARING : 09.04.2012 DATE OF PRONOUNCEMENT: 09.04.2012 IT(SS)A NOS.41 TO 44/HYD/1996 SAMPATH KR. JAIN & OR S., VSKP. 2 ORDER (U/S 255(4) OF THE INCOME-TAX ACT) PER SHRI S.K. YADAV, JUDICIAL MEMBER:- THESE APPEALS ARE PREFERRED BY THE ASSESSEE ON CO MMON GROUNDS AGAINST THE ORDER OF THE CIT(A). FOR THE SAKE OF R EFERENCE THE GROUNDS IN APPEAL NO.2064/HYD/1996 ARE EXTRACTED HEREUNDER: 1. IT IS TO BE SUBMITTED THAT A PIECE OF PAPER IS AVAI LABLE EVEN BEFORE THE DATE OF SEARCH AND SUCH PAPER CONSTITUTES AS A VALUABLE DOCUMENT AND SHOULD HAVE BEEN CONSIDERED AS THE DOC UMENT CONTAINS THE TRANSACTION WITH EVIDENCES. 2. THE ASSESSING OFFICER HAVING ACCEPTED CERTAIN OUTFL OWS DULY REFLECTED IN THE SAID CASH FLOW STATEMENTS SHOULD N OT HAVE IGNORED THE RECEIPT SIDE OF THE CASH FLOW STATEMENTS. 3. THE LEARNED ASSESSING OFFICER IS NOT CORRECT AND JU STIFIED IN ACCEPTING A PART OF THE CASH FLOW AND IGNORING THE OTHER PART OF THE SAME CASH FLOWS. 4. IT IS A COMMON UNDERSTANDING AND A FACT THAT FOR A FAMILY OF APPELLANTS STATUS AND COMMUNITY, THE GIFTS RECEIVE D AS PER THE YEARWISE BREAKUP FURNISHED IS QUITE REASONABLE AND OUGHT TO HAVE CONSIDERED. 5. THE FINDING OF THE LEARNED ASSESSING OFFICER IN THE ORDER IS NOT BASED ON FACTS AND IS ALSO SELF DEFEATING. THE DEP ARTMENT IS IN THE POSSESSION OF THE CASH FLOWS CONTAIN THE OUTFLOW TO WARDS THE LOANS GIVEN AND THE INTEREST RECEIVED THEREON IS ALSO AVA ILABLE IN THE SAME CASH FLOW STATEMENTS. 6. IT IS NOT CORRECT TO CONCLUDE THAT THE CASH FLOW ST ATEMENTS ARE BUILD UP AS THE APPELLANT AND THE FAMILY MEMBERS WOULD HA VE TAKEN CARE IN EXPLAINING THE ENTIRE CASH AVAILABLE WITH THEM I NSTEAD OF EXPLAINING A PART OF THE CASH FOUND. 7. RECORDED THE STATEMENTS AT THE RESIDENTIAL PREMISES IN THE PRESENCE OF TWO WITNESS DOES NOT SIMPLY LEAD TO A C ONCLUSION THAT THE APPELLANT IS NOT UNDER PRESSURE. 8. FOR THESE AND SUCH OTHER GROUNDS OF APPEAL THAT MAY BE SUBMITTED AT THE TIME OF HEARING OF THE APPEAL, THE APPELLANT PRAYS FOR THE APPEAL MAY BE ALLOWED IN HIS FAVOUR. 2. WHILE DISPOSING OF THESE APPEALS, THERE WAS A DI FFERENCE OF OPINION AMONGST THE MEMBERS AND ONE MEMBER HAS ALLOWED THE APPEAL IN THE CASE OF SHRI SAMPATH KUMAR JAIN, SURESH KUMAR JAIN AND K ISHORE KUMAR JAIN BUT IN THE CASE OF MUKESH KUMAR JAIN, THE APPEAL WAS PA RTLY ALLOWED. WHERE AS IT(SS)A NOS.41 TO 44/HYD/1996 SAMPATH KR. JAIN & OR S., VSKP. 3 THE OTHER MEMBER HAS DISMISSED ALL THE FOUR APPEALS . REFERENCE WAS MADE TO THIRD MEMBERS AND THIRD MEMBER HAS FRAMED THE FO LLOWING QUESTIONS FOR ADJUDICATION: 1. WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES OF TH E CASE THE STATEMENTS RECORDED UNDER SECTION 132(4) DATED 18/1 9.10.1995, 23.11.1995 AND 04.12.1995 DESERVE TO BE TAKEN INTO CONSIDERATION TO HOLD THAT THE CASH FOUND DURING THE COURSE OF SE ARCH AS WELL AS THE INVESTMENTS MADE IN THE FORM OF SHARES, ETC. AR E NOT SUPPORTED BY ANY EXPLAINABLE SOURCE RECORDED OR OTHERWISE BY THE ASSESSEES? 2. WHETHER THE CASH-FLOW STATEMENTS FOUND DURING THE C OURSE OF SEARCH CAN BE PRESUMED TO BE CORRECT AS TO ITS CONT ENT, IN THE CIRCUMSTANCES OF THE CASE? 3. WHETHER THE ADDITIONS MADE IN THE BLOCK ASSESSMENTS DESERVE TO BE UPHELD OR DELETED, EITHER IN FULL OR PARTLY? ALL THE THREE QUESTIONS ARE ANSWERED BY THE THIRD M EMBER IN THE FOLLOWING MANNER: A. POINT NO.1 IS DECIDED IN THE AFFIRMATIVE AND IN FAVOUR OF THE REVENUE. B. AS REGARDS POINT NO.2 I HOLD THAT THE CASH-FLOW STATEMENTS FOUND DURING THE COURSE OF SEARCH CANNOT BE PRESUMED TO B E CORRECT, IN THE CIRCUMSTANCES OF THE CASE. C. POINT NO.3 IS ANSWERED IN AFFIRMATIVE, I.E. ADDI TIONS MADE IN THE BLOCK ASSESSMENTS DESERVE TO BE UPHELD. 3. ACCORDINGLY, THESE APPEALS ARE DISPOSED OF IN TE RMS INDICATED ABOVE. 4. IN THE RESULT, THE APPEALS OF THE ASSESSEE ARE DISMISSED AND ADDITIONS MADE THEREIN ARE CONFIRMED. PRONOUNCED IN THE OPEN COURT ON 09.04.2012 SD/- SD/- (BR BASKARAN) (SUNIL KUMAR YADAV) ACCOUNTANT MEMBER JUDICIAL MEMBER VG/SPS VISAKHAPATNAM, DATED 9 TH APRIL, 2012 IT(SS)A NOS.41 TO 44/HYD/1996 SAMPATH KR. JAIN & OR S., VSKP. 4 COPY TO 1 SHRI SAMPATH KUMAR JAIN, 27 - 3 - 21, DYKES TANK ROAD, VISAKHAPATNAM 2 SHRI SURESH KUMAR JAIN, 9.19.14/ A, CBM COMPOUND, VIZAG 3 SHRI KISHORE KUMAR JAIN, 27 - 3 - 21, DYKAS TANK ROAD, VISAKHAPATNAM 4 SHRI MUKESH KUMAR JAIN, 27 - 3 - 21, JAIN TEMPLE ROAD, NEAR ALANKAR THEATRE, VISAKHAPATNAM 5 THE ACIT, CIRCLE - 2, VISAKHAPATNAM 6 THE CI T, VISAKHAPATNAM 7 THE CIT (A ) , VISAKHAPATNAM 8 THE DR, ITAT, VISAKHAPATNAM. 9 GUARD FILE. BY ORDER SENIOR PRIVATE SECRETARY INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM