Ambica Cotton Ginning Factory, V. The Dy.CIT., Cent. Circle-1,

ITSSA 83/AHD/2004

• Counselvise Citation: [2010] 124 COUNSELVISE.COM (IT) 8927 (ITAT-AHMEDABAD)
• Duration Of Justice: 6 year(s) 6 month(s) 16 day(s)
• Appeal Type: Income Tax (Search & Seizure) Appeal
• Pronouncement Date: 15-10-2010
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: D
• Next Hearing Date: 12-10-2010
• Assessment Year: misc
• Appeal Filed On: 29-03-2004
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: K R MEGHWAL
• Assessee Lawyers: M BAKSHI ARS; S N SOPARKAR
• Keywords: Unexplained investment; Search and seizure

Judgement Text

- 1 - IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCH D AHMEDABAD BEFORE S/SHRI BHAVNESH SAINI, JM AND D.C.AGRAWAL, A M AMBICA COTTON GINNING FACTORY, AT MODASAR ROAD, TA. SANKHEDA, BODELI, DIST. BARODA. VS. DY. CIT, CENTRAL CIRCLE- 1, BARODA. (APPELLANT) .. (RESPONDENT) APPELLANT BY :- SHRI S. N. SOPARKAR & M. BAKSHI, ARS RESPONDENT BY:- SHRI K. R. MEGHWAL, CIT, DR O R D E R PER D.C. AGRAWAL, ACCOUNTANT MEMBER . THIS IS AN APPEAL FILED BY THE ASSESSEE RAISING FO LLOWING GROUND:- (1) THE LD. CIT(A)-IV HAS ERRED IN LAW AND IN FACTS IN INCLUDING AN AMOUNT OF RS.1,98,376/- IN THE DETERMINATION OF UNDISCLOSED INCOME OF THE BLOCK PERIOD. THIS AMOUNT IS ALLEGED TO BE REPRESENTING THE EXPENDITURE INCURRED IN CONSTRUCTION/RENOVATION OF THE RESIDENCE OF THE APP ELLANT. 2. A SEARCH AND SEIZURE OPERATION WAS CARRIED OUT A T THE BUSINESS AND RESIDENTIAL PREMISES OF THE ASSESSEE. AS A RESULT T HEREOF THE ASSESSEE FILED RETURN OF INCOME ON 5/10/2001 DECLARING UNDISCLOSED INCOME OF RS.2,50,000/-. DURING THE COURSE OF ASSESSMENT PROC EEDINGS THE AO MADE AN ADDITION OF RS.1,98,376/- IN THE UNDISCLOSED INC OME ON THE GROUND THAT SEIZED MATERIAL SHOWED THAT FOLLOWING EXPENDITURE I N THE IT(SS)A NO.83/AHD/2004 BLOCK PERIOD1/4/1990 TO 23/1/2001 IT(SS)A NO.83/AHD/2004 BLOCK PERIOD 1/4/1990 TO 23/1/2001 2 RENOVATION/CONSTRUCTION OF OFFICE PREMISES ARE NOT INCLUDED IN THE DISCLOSURE OF RS.2,50,000/-, THE DETAILS OF WHICH A RE AS UNDER :- A-91 BACK OF PAGE 6 RS.4,750/- A-91 PAGE 5 RS.1,09,574/- A-91 BACK OF PAGE 15 RS.32,508/- A-91 BACK OF PAGE 14 RS.51,544/- TOTAL RS.1,98,37 6/- SINCE THE ASSESSEE FAILED TO OFFER EXPLANATION IN R ESPECT OF THE ABOVE AMOUNT, THE AO PROPOSED THE ADDITION. THE LD. CIT(A ) CONFIRMED THE ADDITION FOR WANT OF EXPLANATION FROM THE ASSESSEE. 3. BEFORE US, THE LD. AR FOR THE ASSESSEE SUBMITTED THAT UNACCOUNTED INVESTMENT IN RENOVATION OF HOUSE AND CONSTRUCTION OF OFFICE SHOULD BE TREATED AS COMING OUT OF SURPLUS CASH INFLOW AND OU TFLOW STATEMENT IN THE CASE OF SHRI MANUBHAI AGRAWAL. THUS A TELESCOPING E FFECT SHOULD BE GIVEN. 4. THE LD. DR SUPPORTED THE ORDER OF LD. CIT(A). 5. AFTER CONSIDERING THE RIVAL SUBMISSIONS, WE DECL INE TO INTERFERE. WHETHER ANY UNACCOUNTED CASH SURPLUS WAS AVAILABLE OR NOT IS A QUESTION OF FACT AND SHOULD HAVE BEEN CLAIMED AT THE INITIAL STAGE ITSELF. THERE IS NO EVIDENCE THAT SUCH CLAIM WAS MADE BY THE ASSESSEE O R BY SHRI MANUBHAI AGRAWAL AT ANY STAGE EXCEPT RAISING THIS ARGUMENT F OR THE FIRST TIME BEFORE US. SINCE THE CLAIM IS NOT SUPPORTED BY ANY MATERIA L EVIDENCE, WE DECLINE TO ACCEPT IT. IN OUR CONSIDERED VIEW THE ACCOUNTS O F SHRI MANUBHAI AGRAWAL AND AMBICA COTTON GINNING FACTORY ARE DIFFE RENT. CASH AVAILABLE WITH THEM IS DIFFERENT AND THERE IS NO TRANSACTION SHOWING FREQUENT EXCHANGE OF SUCH UNACCOUNTED MONEY BETWEEN THEM. TH ERE IS NO SUCH IT(SS)A NO.83/AHD/2004 BLOCK PERIOD 1/4/1990 TO 23/1/2001 3 RECORD FOUND DURING THE SEARCH. WE ACCORDINGLY DISM ISS THIS CLAIM. AS A RESULT, APPEAL FILED BY THE ASSESSEE IS DISMISSED. 6. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS DISMISSED. ORDER WAS PRONOUNCED IN OPEN COURT ON 15/10/10. SD/- SD/- (BHAVNESH SAINI) (D.C. AGRAWAL) JUDICIAL MEMBER ACCOUNTANT ME MBER AHMEDABAD, DATED : 15/10/10. MAHATA/- COPY OF THE ORDER FORWARDED TO :- 1. THE ASSESSEE. 2. THE REVENUE. 3. THE CIT(APPEALS)- 4. THE CIT CONCERNS. 5. THE DR, ITAT, AHMEDABAD 6. GUARD FILE. BY ORDER, DEPUTY / ASSTT.REGISTRAR ITAT, AHMEDABAD 1.DATE OF DICTATION 12/10/2010. 2.DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE TH E DICTATING 13/10/2010 MEMBER.OTHER MEMBER. 3.DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR. P.S./P.S. 4.DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE DICTATING MEMBER FOR PRONOUNCEMENT.. 5.DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR .P.S./P.S 6.DATE ON WHICH THE FILE GOES TO THE BENCH CLERK .. 7.DATE ON WHICH THE FILE GOES TO THE HEAD CLERK . 8.THE DATE ON WHICH THE FILE GOES TO THE ASSTT. REG ISTRAR FOR SIGNATURE ON THE ORDER 9.DATE OF DESPATCH OF THE ORDER..