Assistant Commissioner of Income-tax, Central Circle - 2, Nashik V. Asha B Chaudhari, Girish B Chaudhari & Mahesh B Chaudhari, L/h. of Bhagwat Narayan Chaudhary, Jalgaon

ITSSA 52/PUN/2017

• Counselvise Citation: [2022] 104 COUNSELVISE.COM (IT) 5049 (ITAT-PUNE)
• Duration Of Justice: 4 year(s) 8 month(s) 29 day(s)
• Appeal Type: Income Tax (Search & Seizure) Appeal
• Pronouncement Date: 07-03-2022
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2011-2012
• Appeal Filed On: 08-06-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Tax effect; Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL ‘A’ BENCH, PUNE SHRI PARTHA SARATHI CHAUDHURY, JM AND DR. DIPAK P. RIPOTE, ACCOUNTANT MEMBER IT(SS) A No. 52/PUN/2017 Assessment year: 2011-12 The Asstt. C.I.T. CC-2, Nashik Appellant Vs. Late Shri Bhagwat Narayan Chaudhari L/H 1. Mrs. Asha Bhagwat Chaudhari (wife), 2. Mr. Girish Bhagwat Chaudhari (son) and 3. Mr. Mahesh Bhagwat Chaudhari (son) 11 Swed Bindu, Shanti Nagar Yawal Road, Bhusawal, Jalgaon. PAN: AALPC O512G Respondent IT(SS) A No. 1132/PUN/2017 Assessment year: 2011-12 Late Shri Bhagwat Narayan Chaudhari L/H 1. Mrs. Asha Bhagwat Chaudhari (wife), 2. Mr. Girish Bhagwat Chaudhari (son) and 3. Mr. Mahesh Bhagwat Chaudhari (son) 11 Swed Bindu, Shanti Nagar Yawal Road, Bhusawal, Jalgaon. PAN: AALPC O512G Appellant Vs. The I.T.O (Central) 1, Nashik. Respondent Assessee by : Shri Nikhil Pathak Department by : Shri Deepak Garg Date of Hearing : 02-03-2022 Date of Pronouncement : 08-03-2022 ORDER PER PARTHA SARATHI CHAUDHURY, JM : These appeals preferred by the Revenue and the Assessee in IT(SS) A No. 52/PUN/2017 and IT(SS) A No. 1132/PUN/2017 respectively emanate from the order of the ld. CIT(A) dated 20-3-2017 for A.Y. 2011-12. 2 I.T.(SS)A No. 52 and 1132/PUN/2017 Bhagwat N. Chaudhary Assessment year : 2011-12 2. We first take up Revenue’s Appeal in IT(SS) A No. 52/PUN/2017 for adjudication. The Grounds in Revenue’s appeal are as follows: “1. Whether on the facts and circumstances of the case and in law, the ld. CIT(A) was justified in deleting the addition of Rs. 66,000/- made by the A.O on account of undisclosed expenditure fund recorded on the seized material by holding that the assessee had debited bogus purchases in the A.Ys 2006-07, 2007-08, 2008-09 and 2009-10 and there was availability of cash for telescoping against the unexplained expenditure, when the impugned bogus purchases and the unexplained expenditure were of different periods and no linkages or cash flow has been established by the assessee. (Note: The order of ld. CIT(A) is a composite order for A.Y 2009-10, 2010-11, 2011-12 and 2012-13. On identical issue, in A.Y 2009-10, appeal is filed before the Hon’ble ITAT and therefore the appeal before Hon’ble ITAT is being filed in this assessment year even though the tax effect involved is below the prescribed monetary limits as per the CBDT Instruction No. 21/2015, as the condition of monetary limit is exempted in terms of para 5 of the said Instructions) ii) Any other ground that may be urged at the time of hearing. 3. At the outset, the ld. D.R submitted that the Revenue’s appeal is having low tax effect, hence to be dismissed. The ld. A.R conceded to the submissions made by the ld. D.R. That after hearing the parties, we dismiss the Revenue’s appeal on the ground of low tax effect. 4. In the result, appeal of the Revenue is dismissed. 5. Now, we take up assessee’s appeal in IT(SS) A. No. 1132/PUN/2017. The grounds raised by the assessee in this appeal are as follows: “1] The ld. CIT(A) erred in confirming the addition on account of deemed rental of Rs. 3,09,357/- u/s 23(4) of the Act. 1.1] The ld. CIT(A) failed to appreciate that the said addition of Rs. 3,09,357/- was not justified since no incriminating evidence was found relating to this issue in the course of search and hence, the said addition ought to have been deleted. 1.2] The ld. CIT(A) failed to appreciate that the various properties in respect of which the deemed rental income was being taxed were used for the business purposes by the appellant and therefore, there was no reason to tax deemed rental income u/s 23(4) of the Act. 2] The ld. CIT(A) erred in confirming an addition of Rs. 5,229/- on account of undisclosed rental income received by the appellant without appreciating that no incriminating evidence was found relating to this issue in the course of search and hence, the said addition was not justified at all. 3 I.T.(SS)A No. 52 and 1132/PUN/2017 Bhagwat N. Chaudhary Assessment year : 2011-12 2.1] The ld. CIT(A) erred in not appreciating that the addition made was on presumptions and surmises and therefore, such addition was not justified at all. 3] The appellant craves leave to add, alter, amend or delete any of the above grounds of appeal.” 6. That at the very outset, the ld. A.R submitted that the assessee does not wish to press this appeal and neither also any of the grounds in this appeal before the Tribunal. The ld. D.R did not raise any objection. That on hearing the submissions of the parties we dismiss the assessee’s appeal as not pressed. 7. In the result, appeal of the Assessee is dismissed. 8. In the result, both the appeals of the Revenue as well as of the Assessee are dismissed as indicated hereinabove. Sd/- sd/- (DR. DIPAK R. RIPOTE) (PARTHA SARATHI CHAUDHURY) (ACCOUNTANT MEMBER) (JUDICIAL MEMBER) Pune; Dated : 8 th March 2022 Ankam Copy of the Order forwarded to : 1. The Appellant. 2. The Respondent. 3. The CIT(A) concerned 4. The Pr. CIT concerned 5. The CIT (DR) ITAT. 6. Guard File BY ORDER, Sr. Private Secretary ITAT, Pune. /// TRUE COPY /// 4 I.T.(SS)A No. 52 and 1132/PUN/2017 Bhagwat N. Chaudhary Assessment year : 2011-12 Date 1 Draft dictated on 03-03-2022 Sr.PS 2 Draft placed before author 07-03-2022 Sr.PS 3 Draft proposed and placed before the second Member JM/AM 4 Draft discussed/approved by second Member AM/JM 5 Approved draft comes to the Sr. PS/PS Sr.PS 6 Kept for pronouncement on 08-03-2022 Sr.PS 7 Date of uploading of order 08-03-2022 Sr.PS 8 File sent to Bench Clerk 08-03-2022 Sr.PS 9 Date on which the file goes to the Head Clerk 10 Date on which file goes to the A.R 11 Date of dispatch of order