The ACIT, Circle-7, Ahmedabad V. Shri Satyanarayan J.Kabra, Ahmedabad

MA 134/AHD/2011

• Counselvise Citation: [2013] 124 COUNSELVISE.COM (IT) 0110 (ITAT-AHMEDABAD)
• Duration Of Justice: 1 year(s) 7 month(s) 19 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 12-04-2013
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: misc
• Appeal Filed On: 24-08-2011
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: Y P VERMA
• Keywords: Unexplained investment

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AT AHMEDABAD C BENCH BEFORE: SHRI D.K. TYAGI, JUDICIAL MEMBER AND SHRI A. MOHAN ALANKAMONY, ACCOUNTAN T MEMBER ACIT CIRCLE CIRCLE-1(4) AHMEDABAD (APPELLANT) VS. SHRI SATYANARAYAN J. KABRA, PROP. POONAM CORPORATION, T-4-A, SHANITNAGAR SOCIETY, USMANPURA, AHMEDABAD PAN: ADGPK 2858 M (RESPONDENT) REVENUE BY : SRI Y.P. VERMA, SR.D.R. ASSESSEE BY : NONE DATE OF HEARING : 05-04-2013 DATE OF PRONOUNCEMENT : 12-04-2013 / ORDER PER : D.K. TYAGI, JUDICIAL MEMBER:- THIS MISCELLANEOUS APPLICATION HAS ARISEN OUT OF T HE ORDER OF THIS TRIBUNAL IN IT(SS)A NO. 71/AHD/2005 DATED 09-10-200 9. 2. THE M.A. FILED BY THE REVENUE READS AS UNDER:- M.A. NO. 134/AHD/201 1 (ARISING OUT OF I.T.(SS)A. NO. 71/ AHD/2005 ) BLOCK PERIOD 01-04-1995 TO 0 2-12-2001 M.A. NO.134/AHD/2011 A.Y. BLOCK PERIOD PAGE NO ACIT VS. SATYANARAYAN J. KABRA PROP. POONAM CORPORA TION 2 1. THE HONBLE ITAT VIDE ORDER DATED 09/10/2009 HA S DECIDED SEVEN APPEALS BEARING (I) NO. IT(SS)A NO. 59/AHD/20 05 (II) IT(SS)A NO. 71/AHD/2005, (III) IT(SS)A NO. 175/AHD2004, (IV ) IT(SS)A NO. 176/AHD/2004, (V) IT(SS)A NO. 177/AHD/2004, (VI) IT (SS)A NO. 306/AHD/2004 AND (VII) IT(SS)A NO. 245/AHD/2004 IN THE CASE OF THE ABOVE NAMED ASSESSEE. 2. ONE OF THE GROUNDS OF APPEAL OF THE ASSESSEE IS AGAINST THE ORDER OF THE CIT(A) IN CONFIRMING THE ADDITION OF R S. 75,80,000/- ON ACCOUNT OF CLAIM OF 400 APPLICATIONS MADE BY MR. GA NDHI FOR THIS, THE ASSESSEE HAS RAISED THE FOLLOWING GROUND NO. IX: THE LEARNED CIT(A) HAS ERRED IN LAW AND ON FACTS I N SUSTAINING/CONFIRMING THE ADDITION OF RS. 75,80,000 /- AS MADE BY THE LEARNED A.O. ON THE FINDINGS/OBSERVATION THA T THE CLAIM OF MR. GANDHI THAT HE MADE 400 APPLICATIONS WILL NO T DISPROVE THE ACTUAL TRANSACTIONS IN 200 ACCOUNTS. 3. THE HONBLE ITAT IN PAGE NO. 63 OF THE ABOVE SAID O RDER HAS CONFIRMED THE ADDITION OF RS. 13.39 LAKHS BY OBSERV ING THAT- IN VIEW OF THE AFORESAID FACTS AND MERITS OF THE C ASE, WE ARE OF THE VIEW THAT THE ADDITION MADE BY THE AO IN THE BLOCK PERIOD ORDER IS MERELY ON SURMISES AND CONJECTURES WHILE BRUSHING A SIDE THE MATERIAL EVIDENCES, BUT ONE FACT IS THAT THE ASSESSEE HAS FI NANCED THE MULTIPLE APPLICATIONS FOR SHARES AND THE MARGIN MONEY OF RS. 36,750/- WAS FINANCED AT RS. 13,390/- TO THE EXTENT OF 200 APPLI CATIONS. THAT MEANS, THE ASSESSEE HAS NOT DISCLOSED THE INVESTMEN T OF RS. 13.39 LAKHS, WHICH IS UNEXPLAINED INVESTMENT OF THE ASSES SEE FOR THE BLOCK PERIOD. ACCORDINGLY THE ASSESSING OFFICER IS DIREC TED TO MAKE ADDITION OF RS. 13.39 LAKHS AS UNEXPLAINED INVESTME NT IN THE FINANCE OF MULTIPLE APPLICATIONS TO SHRI MAHESH P. GANDHI BY THE ASSESSEE. ACCORDINGLY, THIS ISSUE OF THE ASSESSEES APPEAL IS PARTLY. 4. WHILE CONFIRMING THE ADDITION, THE HONBLE ITAT HAS OBSERVED THAT .ONE FACT IS THAT THE ASSESSEE HAS FINANCED THE MULTIPLE APPLICATIONS FOR SHARES AND THE MARGIN MONEY OF RS. 36,750/- WAS FINANCED AT RS. 13,390/- TO THE EXTENT OF 200 APPLI CATIONS. THAT MEANS, THE ASSESSEE HAS NOT DISCLOSED THE INVESTMEN T OF RS. 13.39 LAKHS, WHICH IS UNEXPLAINED INVESTMENT OF THE ASSES SEE FOR THE BLOCK M.A. NO.134/AHD/2011 A.Y. BLOCK PERIOD PAGE NO ACIT VS. SATYANARAYAN J. KABRA PROP. POONAM CORPORA TION 3 PERIOD. ACCORDINGLY, THE ASSESSING OFFICER IS DIRE CTED TO MAKE ADDITION OF RS. 13.39 LAKHS AS UNEXPLAINED INVESTME NT. THOUGH THE HONBLE ITAT HAS CONFIRMED THAT THE ASSESSEE HAS FI NANCED THE MULTIPLE APPLICATIONS FOR SHARES AND THE MARGIN MON EY OF RS. 36,750/- WAS FINANCED AT RS. 13,390/- TO THE EXTENT OF 200 A PPLICATIONS, THE UNEXPLAINED INVESTMENT OF THE ASSESSEE FOR THE BLOC K PERIOD WAS TAKEN AT RS. 13.39 LAKHS ONLY INSTEAD OF 26.78 LAKHS (RS. 13,390/- X 200) AS UNEXPLAINED INVESTMENT IN THE FINANCE OF MULTIPLE A PPLICATIONS TO SHRI MAHESH P. GANDHI BY THE ASSESSEE FOR THE BLOCK PERI OD. 5. IN VIEW OF THE ABOVE, IT IS REQUESTED TO KINDLY ENHANCE THE ADDITION ON ACCOUNT OF UNEXPLAINED INVESTMENT IN TH E FINANCE OF MULTIPLE APPLICATIONS TO SHRI MAHESH P. GANDHI BY T HE ASSESSEE TO RS. 26,78,000/- (13,390X200) INSTEAD OF RS. 13.39 LAKHS CONFIRMED BY THE HONBLE ITAT. 3. AT THE TIME OF HEARING NONE APPEARED ON BEHALF O F THE ASSESSEE DESPITE THE FACT THAT NOTICE WAS SENT TO HIM SEVERAL TIMES AT THE ADDRESS ON RECORD. SO, WE PROCEEDED TO DECIDE THIS M.A. BY HEARING LD. D.R. 4. AFTER HEARING LD. D.R. AND PERUSING THE RECORD, WE FIND THAT A MISTAKE APPARENT FROM RECORD HAS CREPT IN OUR ORDER AND THE SAME IS RECTIFIED BY MODIFYING OUR ORDER DATED 09-10-2009 AS UNDER:- THE LAST TWO SENTENCES OF PARA 59 BE READ AS UNDER. THAT MEANS THE ASSESSEE HAS NOT DISCLOSED THE INVE STMENT OF RS. 26.78 LAKHS, WHICH IS UNEXPLAINED INVESTMENT OF THE ASSESSEE FOR THE BLOCK PERIOD. ACCORDINGLY, THE ASSESSING OFFICER I S DIRECTED TO MAKE ADDITION OF RS. 26.78 LAKHS AS UNEXPLAINED INVESTME NT IN THE FINANCE OF MULTIPLE APPLICATIONS TO SHRI MAHESH P GANDHI BY THE ASSESSEE. ACCORDINGLY, THIS ISSUE OF THE ASSESSEES APPEAL IS PARTLY ALLOWED M.A. NO.134/AHD/2011 A.Y. BLOCK PERIOD PAGE NO ACIT VS. SATYANARAYAN J. KABRA PROP. POONAM CORPORA TION 4 INSTEAD OF THAT MEANS THE ASSESSEE HAS NOT DISCLOSED THE INVES TMENT OF RS. 13.39 LAKHS, WHICH IS UNEXPLAINED INVESTMENT OF THE ASSES SEE FOR THE BLOCK PERIOD. ACCORDINGLY, THE ASSESSING OFFICER IS DIRE CTED TO MAKE ADDITION OF RS. 13.39 LAKHS AS UNEXPLAINED INVESTME NT IN THE FINANCE OF MULTIPLE APPLICATIONS TO SHRI MAHESH P GANDHI BY THE ASSESSEE. ACCORDINGLY, THIS ISSUE OF THE ASSESSEES APPEAL IS PARTLY ALLOWED 5. IN THE RESULT, REVENUES M.A. IS ALLOWED. ORDER PRONOUNCED IN OPEN COURT ON THE DATE MENTIONE D HEREINABOVE AT CAPTION PAGE SD/- SD/- (A.MOHAN ALANKAMONY) (D.K.TYAGI) ACCOUNTANT MEMBER JUD ICIAL MEMBER AHMEDABAD : DATED 12/04/2013 AK / COPY OF ORDER FORWARDED TO:- 1. / APPELLANT 2. / RESPONDENT 3. / CONCERNED CIT 4. - / CIT (A) 5. , ! , '# / DR, ITAT, AHMEDABAD 6. $% &' / GUARD FILE. BY ORDER/ , ( / ' ) ! , '# M.A. NO.134/AHD/2011 A.Y. BLOCK PERIOD PAGE NO ACIT VS. SATYANARAYAN J. KABRA PROP. POONAM CORPORA TION 5 STRENGTHENED PREPARATION & DELIVERY OF ORDERS IN TH E ITAT 1) DATE OF TAKING DICTATION 05-04-2013 2) DIRECT DICTATION BY MEMBER STRAIGHT ON COMPUTER/LAPTOP/DRAGON DICTATE N.A. 3) DATE OF TYPING & DRAFT ORDER PLACE BEFORE MEMBER 08-04-2013 4) DATE OF CORRECTION 09-04-2013 5) DATE OF FURTHER CORRECTION XXXXX 6) DATE OF INITIAL SIGN BY MEMBERS 10-04-2013 7) ORDER UPLOADED ON 12-04-2013 8) ORIGINAL DICTATION PAD HAS BEEN ENCLOSED IN THIS FILE YES 9) ORDER SENT TO BENCH CLERK 12-04-2013