Shri Biren V. Shah, Ahmedabad V. The ACIT, Circle-10, Ahmedabad

ITSSA 53/AHD/2014

• Counselvise Citation: [2017] 122 COUNSELVISE.COM (IT) 3437 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 9 month(s) 20 day(s)
• Appeal Type: Income Tax (Search & Seizure) Appeal
• Pronouncement Date: 10-11-2017
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: D
• Next Hearing Date: 01-08-2017
• Assessment Year: misc
• Appeal Filed On: 21-01-2014
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: VASHUNDHARA UPMANYUCIT
• Assessee Lawyers: BHAVESH SHAH
• Keywords: Corroborative evidences; Block assessment
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD D BENCH BEFORE: SHR I MAHAVIR PRASAD , JUDICIAL MEMBER AND SHRI AMARJIT SINGH, ACCOUNTANT MEMBER SHRI BIREN V. SHAH, 101, SHANTI TOWER, NR. TULSI PARTY PLOT, VASNA, AHMEDABAD - 380007 PAN: AKVPS6194C (APPELLANT) VS THE ACIT, CIRCLE - 10, AHMEDABAD (RESPONDENT) REVENUE BY : SMT. VASHUNDHARA UPMANYU,CIT - D . R. ASSESSEE BY: S H RI BHAVESH SHAH , A.R. DATE OF HEARING : 02 - 11 - 2 017 DATE OF PRONOUNCEMENT : 10 - 11 - 2 017 / ORDER P ER : AMARJIT SINGH, ACCOUNTANT MEMBER : - THIS ASSESSEE S APPEA L FOR BLOCK PERIOD 01/04/95 TO 20/02/2002 , AR ISES FROM ORDER OF THE CIT(A) - XVI, AHMEDABAD DATED 25 - 11 - 2013 , IN PROCEEDINGS UNDER SECTION 143(3) R.W.S. 158BC & SECTION 254 OF THE INCOME TAX ACT, 1961; IN SHORT THE ACT . 2. THE ASSESSEE HAS RAISED FOLLO WING GROUNDS OF APPEAL: - I T (SS) A NO . 53 / A HD/20 14 BLOCK PERIO D 01/04/95 TO 20/02/2002 I.T(SS). A NO. 53 /AHD/20 14 BLOCK PERIOD 1/4/95 TO20/2/2002 PAGE NO SHRI BIREN V. SHAH VS. ACIT 2 1. THE LD. CIT (A) HAS ERRED IN LAW AND ON FACTS IN ALLOWING THE APPEAL PARTLY. HE OUGHT TO HAVE ALLOWED THE APPEAL FULLY IN ACCORDANCE WITH THE GROUNDS OF APPEAL RAISED BY THE N APPELLANT BEFORE HIM. I. ADDITION ON THE BASIS O F IMPROPER MAINTENANCE OF BOOKS OF ACCOUNTS AND ACCOUNTS GENERATED FROM SEIZED COMPUTER DATA - RS. 6,31,967/ - 1. THE LD. CIT (A) HAS ERRED IN LAW AND ON FACTS IN CONFIRMING THE ADDITION OF RS. 6,31,967/ - AS MADE BY THE A.O ON THE BASIS OF IMPROPER MAINTENA NCE OF BOOKS OF ACCOUNTS AND ACCOUNTS GENERATED FROM SEIZED COMPUTER DATA. 2. THE LD. CIT (A) HAS ERRED IN LAW AND ON FACTS IN FAILING TO PROPERLY CONSIDER APPELLANT'S WRITTEN SUBMISSIONS AND VARIOUS CONTENTION TAKEN THEREIN. 3. THE BRIEF FACTS OF THE CASE PERTAINING TO THE ISSUE IN THE APPEAL ARE THAT THE ORIGINAL BLOCK ASSESSMENT U/S. 158BC OF THE ACT WAS COMPLETED ON 27 TH FEB, 2004. DURING THE COURSE OF THE BLOCK ASSESSMENT, THE ASSESSING OFFICER HAS MADE ADDITION ON ACCOUNT OF IMPROPER MAINTENANCE OF ACCOUNT FOR RS. 6 , 31 , 967/ - . SUBSEQUENTLY, THE ITAT HAS SET ASIDE THIS MATTER TO THE FILE OF THE ASSESSING OFFICER TO RECONCILE THE CORRECT INCOME AFTER OBTAINING EXPLANATION OF THE ASSES SEE ON THIS ISSUE. FROM THE COMPUTER PRINT OUT, THE ASSESSING OFF ICER HAS NOTICED THAT THE ASSESSEE HAS NOT SHOWN ACTUAL RECEIPT PERTAINING TO THE FINANCIAL YEAR 1999 - 2000. HE HAD NOTICED THAT THE ACTUAL RECEIPT WAS RS. 9,99,353/ - WHEREAS THE ASSESSEE HAD SHOWN RECEIPT OF RS. ONLY 3,67,386/ - . DURING THE COURSE OF SE T ASIDE ASSESSMENT PROCEEDINGS THE ASSESSEE HAS NOT FURNISHED ANY EVIDENCES TO RECONCILE THE DIFFERENCES THEREFORE THE SAME WAS ADDED TO THE INCOME OF THE ASSESSEE. 4. AGGRIEVED AGAINST THE DECISION OF THE ASSESSING OFFICER, ASSESSEE PREFERRED APPEAL B EFORE THE LD. CIT(A). THE LD. CIT(A) HAS SUSTAINED THIS ADDITION BY OBSERVING AS UNDER: I.T(SS). A NO. 53 /AHD/20 14 BLOCK PERIOD 1/4/95 TO20/2/2002 PAGE NO SHRI BIREN V. SHAH VS. ACIT 3 3.1 THE GROUND OF APPEAL NO. 1 IS REGARDING DISALLOWANCES OF RS. 6,31,967/ - ON ACCOUNT OF CERTAIN EXPENSES WHICH WERE BASED UPON PRINT OUTS OF COMPUTER DATA SEIZED A T THE TIME OF SEARCH. THE A O HAS DISCUSSED THIS ISSUE IN PARA - 2(A) OF THE ASSESSMENT ORDER. THE A O REJECTED THE ARGUMENT OF THE APPELLANT THAT NO ADVERSE INFERENCE CAN BE DRAWN FROM THE PROFIT & LOSS ACCOUNT FOUND IN THE COMPUTER DURING SEARCH AS ON 30 TH JUNE OF A YEAR. HE CONCLUDED THAT THE ACCOUNTS REFERRED ON PAGE 331 WHICH WAS TAKEN ORIGINALLY BY A O DURING ASSESSMENT PROCEEDINGS REFLECTS TWO ACCOUNTS OF THE BUSINESS OF THE APPELLANT WHEREAS THE ACCOUNT SHOWN AT PAGE 339 SHOWING LOSS ARE INFLATED AND EXPERIMENTAL. THE A O FURTHER NOTED THAT THE APPELLANT HAS FAILED TO PROVIDE ANY DOCUMENTARY EVIDENCE IN SUPPORT OF ITS CONTENTIONS. CONSEQUENTLY HE REPEATED THE ADDITION. 3.2 I HAVE CAREFULLY CONSIDERED THE FACTS OF THE CASE IN THE LIGHT OF SUBMISSIO NS MADE BY THE APPELLANT, THE ARGUMENTS TAKEN BY THE ASSESSING OFFICER & MATERIAL AVAILABLE ON RECORDS. DURING THE COURSE OF CURRENT APPELLATE PROCEEDINGS THE APPELL ANT HAS ONCE AGAIN REITERATED AR GUMENTS TAKEN BY HIM DURING THE COURSE OF ORIGINAL ASSESSM E NT PROCEEDINGS AS WELL AS DURING THE C OURSE OF PROCEEDINGS CONSEQUENT TO DIRECTIONS OF THE HON'BLE TRIBUNAL AND RELIED UPON SAME SET OF EVIDENCES. IT IS NOTED THAT THE HON'BLE TRIBUNAL IN THEIR ORDER DATED 4 - 3 - 2010 VIDE PARA - 9 HAD DIRECTED THE MATTER TO THE FILE OF A O FOR RECONCILIATION OF TH E FIGURES AND APPELLANT TO COOPERATE WITH THE AO. NO SUCH EVIDENCE HAVE HOWEVER BEEN BROUGHT UPON RECORD BY THE APPELLANT SO AS TO CHALLENGE THE IMPUGNED ADDITION BEFORE AO . CONSEQUENTLY, THE ADDITION MADE BY THE ID A O RESULTING IN ADDITION OF RS. 6,31,967/ - IS CONFIRMED AND THE FIRST GROUND OF APPEAL RAISED IS DISMISSED. 5. DURING THE COURSE OF APPELLATE PROCEEDINGS BEFORE US, THE LEARNED COUNSEL HAS FURNISHED THE PAPER BOOK CONTAINING COPY OF ORDER OF ITAT AND S UBMISSION MADE BEFORE THE LD. CIT(A) AND THE ASSESSING OFFICER. HE CONTENDED THAT THE ASSESSING OFFICER HAS INCORRECTLY MADE THIS ADDITION AND HE REFERRED TO THE PAGE NO. 35 AND 69 OF THE PAPER BOOK. ON THE OTHER HAND, THE LD. DEPARTMENTAL REPRESENTATIVE RELIED ON THE ORDER OF T HELD. CIT(A). 6. WE HAVE HEARD BOTH THE SIDES AND PERUSED THE MATERIAL ON RECORD. WE HAVE NOTICED THAT PAGE NO. 35 AND 69 RE F ERRED BY THE LEARNED COUNSEL DURING THE COURSE OF APPELLATE PROCEEDINGS ARE THE TWO PRINT OUT OF THE ASSSESSEE PERTAINING TO TRADING PROFIT AND LOSS ACCOUNT AND BALANCE SHEET FOR THE SAME PERIOD OF 30 TH JUNE, 1999 BUT THE ASSESSEE FAILED TO RECONCILE THE DIFFERENCES WITH THE SUPPORTING EVIDENCES. THEREFORE, W E CONSIDERED THAT IN SPITE OF GIVING I.T(SS). A NO. 53 /AHD/20 14 BLOCK PERIOD 1/4/95 TO20/2/2002 PAGE NO SHRI BIREN V. SHAH VS. ACIT 4 OPPORTUNI TY TO THE AS SESSEE IN THE SET ASIDE PROCEEDINGS AS PER THE DIRECTIONS OF THE ITAT, THE ASSESSEE FAILED TO PRODUCE THE RELEVANT SUPPORTING EVIDENCES TO PROVE THE GENUINENESS OF THE ACTUAL TRANSACTION WHICH HAS TAKEN PLACE . IN VIEW OF THESE FACTS AND FINDIN GS, WE DO NOT FIND ANY ERROR IN THE DECISION OF THE LD. CIT(A). ACCORDINGLY, THE APPEAL OF THE ASSESSE IS DISMISSED. 7. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS DISMISSED . ORDER PR ONOUNCED IN THE OPEN C OURT ON 10 - 11 - 201 7 SD/ - SD/ - ( MAHAVIR PRASAD ) ( AMARJIT SINGH ) JUDICIAL MEMBER ACCOUNTANT MEMBER AHMEDABAD : DATED 10 /11 /2017 / COPY OF ORDER FORWARDED TO: - 1. ASSESSEE 2. REVENUE 3. CONCERNED CIT 4. CIT (A) 5. DR, ITAT, AHMEDAB AD 6. GUARD FILE. BY ORDER/ , / ,