DCIT, Trichur V. Chinnansons Jewellers, Perinthalmanna

ITSSA 45/COCH/2005

• Counselvise Citation: [2012] 121 COUNSELVISE.COM (IT) 8140 (ITAT-COCHIN)
• Duration Of Justice: 7 year(s) 4 month(s) 3 day(s)
• Appeal Type: Income Tax (Search & Seizure) Appeal
• Pronouncement Date: 22-06-2012
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 18-04-2012
• Assessment Year: misc
• Appeal Filed On: 18-02-2005
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S VIJAYAPRABHA
• Assessee Lawyers: JOSE POTTOKKARAN
• Keywords: Unexplained cash credit; Block assessment
• Section: 154

Judgement Text

1 IT(SS)A NO. 45/COCH/2005 IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH, COCHIN BEFORE SHRI N.R.S. GANESAN (JM) AND SHRI B.R. BASKA RAN(AM) I.T(SS)A NO. 45/COCH/2005 (BLOCK PERIOD 01-04-1995 TO 20-11-2001) DY.CIT, CENT.CIR. VS M/S CHINNANSONS JEWELLERS THRISSUR CALICUT ROAD, PERINTHALMANNA PAN : AACFC7130R (APPELLANT) (RESPONDENT) APPELLANT BY : SMT. S VIJAYAPRABHA RESPONDENT BY : SHRI JOSE POTTOKKARAN DATE OF HEARING : 18-04-2012 DATE OF PRONOUNCEMENT : 22-06-2012 O R D E R PER N.R.S. GANESAN (JM) THIS APPEAL OF THE REVENUE IS DIRECTED AGAINST THE ORDER OF COMMISSIONER OF INCOME-TAX(A)-I, KOCHI DATED DATED 05-11-2004 AND P ERTAINS TO BLOCK PERIOD 01-04-1995 TO 20-11-2001. 2. SMT. VIJAYAPRABHA, THE LD.DR SUBMITTED THAT AFTE R COMPLETION OF THE ASSESSMENT, THE ASSESSEE FILED AN APPLICATION U/S 154 ON THE GR OUND THAT AN ERROR IN THE ORDER OF THE ASSESSING OFFICER HAS OCCURRED. THE ASSESSING OFFI CER ADMITTED THE CLAIM OF THE ASSESSEE PARTLY; HOWEVER, IN RESPECT OF ADDITION OF RS.1,10, 51,555 BEING THE UNEXPLAINED CREDIT IN THE CAPITAL ACCOUNT OF THE PARTNERS, THE ASSESSING OFFICER REJECTED THE APPLICATION FILED BY THE ASSESSEE. HOWEVER, ON APPEAL FILED BY THE ASSE SSEE THE COMMISSIONER OF INCOME- TAX(A) FOUND THAT THE CREDIT FOUND IN THE BOOKS OF ACCOUNT OF THE FIRM IN THE NAME OF PARTNERS AND THEIR FAMILY MEMBERS ARE EXPLAINED BY REFERRING TO THE RETURNS FILED BY THE RESPECTIVE PARTNER AND THEIR FAMILY MEMBERS DISCLOS ING THE INCOME. ONCE THE PARTNERS 2 IT(SS)A NO. 45/COCH/2005 EXPLAINED THE INCOME BY FILING THE RETURNS OF INCOM E BEFORE THE DATE OF SEARCH, THE COMMISSIONER OF INCOME-TAX(A), FOUND THAT THERE CAN NOT BE ANY UNDISCLOSED INCOME. ACCORDING TO THE LD.DR, MERE FILING OF RETURN OF IN COME BEFORE THE DATE OF SEARCH CANNOT BE A REASON FOR DELETING THE ADDITION. 3. ON THE CONTRARY, SHRI JOSE POTTOKKARAN, THE LD.R EPRESENTATIVE SUBMITTED THAT THE COMMISSIONER OF INCOME-TAX(A) FOUND THAT THE ASSESS ING OFFICER ADMITTEDLY TO REASSESS THE INCOME IN A PROCEEDINGS U/S 154 OF THE INCOME-T AX ACT. THE COMMISSIONER OF INCOME-TAX(A) FOUND THAT ALL THE MATERIALS ARE AVAI LABLE BEFORE THE ASSESSING OFFICER AT THE TIME OF ORIGINAL BLOCK ASSESSMENT PROCEEDINGS, THEREFORE, THE ASSESSING OFFICER CANNOT MAKE ANY ADDITION IN PROCEEDINGS U/S 154 OF THE ACT. 4. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS ON EITH ER SIDE AND ALSO PERUSED THE MATERIAL AVAILABLE ON RECORD. THE ASSESSING OFFICE R MADE AN ADDITION OF RS.1,10,51,555 IN A PROCEEDING U/S 154 OF THE ACT. THE FACT THAT THE ASSESSEES PARTNERS AND THEIR FAMILY MEMBERS HAVE FILED THEIR RETURNS OF INCOME IN THE R EGULAR COURSE BEFORE THE DATE OF SEARCH IS NOT IN DISPUTE. DURING THE COURSE OF ASS ESSMENT PROCEEDINGS, THE ASSESSING OFFICER EXAMINED ALL THE MATERIALS AND MADE THE ADD ITION. THEREFORE, THERE IS NO QUESTION OF ANY REOPENING OF THE ASSESSMENT OR REAS SESSING THE INCOME IN A PROCEEDING U/ 154 OF THE ACT. THE PROVISIONS OF SECTION 154 A RE TO RECTIFY AN ERROR ON THE FACE OF THE RECORD. THE ASSESSING OFFICER CANNOT RE-ASSESS THE INCOME IN A PROCEEDING U/S 154 OF THE ACT. THEREFORE, THE ADDITION MADE BY THE ASSESSING OFFICER TO THE EXTENT OF RS.1,10,51,555 IN A PROCEEDING U/S 154 IS BEYOND TH E JURISDICTION OF THE ASSESSING OFFICER. THEREFORE, THIS TRIBUNAL FIND THAT THE COMMISSIONER OF INCOME-TAX(A) HAS RIGHTLY DELETED THE ADDITION MADE BY THE ASSESSING OFFICER. THEREF ORE, THE ORDER OF COMMISSIONER OF INCOME-TAX(A) IS CONFIRMED AND THE APPEAL OF THE RE VENUE STANDS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 22 ND JUNE, 2012. SD/- SD/- (B.R. BASKARAN) (N.R.S. GANESAN) ACCOUNTANT MEMBER JUDICIAL MEMBER COCHIN, DT : 22 ND JUNE, 2012 PK/- 3 IT(SS)A NO. 45/COCH/2005 COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE COMMISSIONER OF INCOME-TAX 4. THE COMMISSIONER OF INCOME-TAX(A) 5. THE DR (TRUE COPY) BY ORDER ASSTT. REGISTRAR, INCOME-TAX APPELLATE TRIBUNAL, COCHIN BENCH