THE ACIT, 1(1), Ujjain V. SHRI MUKESH RANKA, Ujjain

MA 98/IND/2016

• Counselvise Citation: [2018] 124 COUNSELVISE.COM (IT) 6583 (ITAT-INDORE)
• Duration Of Justice: 1 year(s) 8 month(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 31-05-2018
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 07-07-2017
• Assessment Year: 2006-2007
• Appeal Filed On: 30-09-2016
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: K G GOYAL
• Assessee Lawyers: S S DESH
• Keywords: Unexplained investment; Audit objection; Tax effect
• Section: 69

Judgement Text

M.A. 98/2016 MUKESH RANKA 1 IN THE INCOME TAX APPELLATE TRIBUNAL INDORE BENCH, INDORE BEFORE SHRI KUL BHARAT, HONBLE JUDICIAL MEM BER AND SHRI MANISH BORAD, HONBLE ACCOUNTANT MEMBER M.A. NO. 98/IND/2016 ARISING OUT OF ITA NO. 27/IND/20 15 A.Y. 2006-07 DCIT 1(1) UJJAIN ::: APPELLANT VS MUKESH RANKA UJJAIN ::: RESPONDENT APPELLANT BY SHRI K.G. GOYAL RESPONDENT BY SHRI S.S. DESHPANDE DATE OF HEARING 25.5.2018 DATE OF PRONOUNCEMENT 3 1 .5.2018 O R D E R PER SHRI MANISH BORAD, AM THIS MISCELLANEOUS APPLICATION FILED BY THE REVENUE ARISES OUT OF THE ORDER OF THE TRIBUNAL DATED 21.12.2016 IN ITA NO. 27/IND/2015 FOR THE ASSESSMENT YEAR 2006-07 DISMISSING REVENUES APPEAL ON ACCOUNT OF LOW TAX EFFECT IN VIEW OF CBDT CIRCULAR NO. 21/2015 DATED 10.12.2015. THROUGH THIS MISCELLANEOUS APPLICATION THE M.A. 98/2016 MUKESH RANKA 2 REVENUE CONTENTION IS THAT THERE WAS AUDIT OBJECTION IN THE CASE OF THE ASSESSEE AND IT, THEREFORE, FELL WITHIN T HE EXCEPTIONS PROVIDED IN THE ABOVE CBDT CIRCULAR AND AS SUCH THE REVENUES APPEAL HAS WRONGLY BEEN DISMISSED BY THE TRIBUNAL. 2. THE LEARNED DR PLACED BEFORE US THE COPY OF THE AU DIT OBJECTION IN RELATION TO M/S PARSHWANATH CONSTRUCTION WHICH IS A PARTNERSHIP FIRM AND THE ASSESSEE IS ONE O F THE PARTNERS. IT WAS CONTENDED THAT THERE WAS UNEXPLAINED INVESTMENT U/S 69 OF THE ACT OF RS. 50 LACS AND THE SAID INVESTMENT WAS ALLEGED TO HAVE BEEN MADE BY THE ASSESSEE DURING THE ASSESSMENT YEAR 2006-07 WHICH WAS THEREAFTER SHOWN AS CAPITAL CONTRIBUTION IN THE PARTNERSHIP FIRM DURING THE ASSESSMENT YEAR 2007-08 AND THE DATE OF INCORPORATION OF THE PARTNERSHIP FIRM IS 14.7.2006. ON THE STRENGTH OF THESE FACTS, THE LEARNED DR PRAYED FOR RE CALLING OF THE ORDER OF THE TRIBUNAL FOR ADJUDICATION ON MERIT S. M.A. 98/2016 MUKESH RANKA 3 3. ON THE OTHER HAND, THE LEARNED COUNSEL FOR THE ASSESSEE STRONGLY OBJECTED THE CONTENTION OF THE LEAR NED DR SUBMITTING THAT THE ALLEGED AUDIT OBJECTION IS IN THE NAME OF THE PARTNERSHIP FIRM AND NOT THE ASSESSEE AND, THERE FORE, THE SAME IS NOT APPLICABLE IN THE CASE OF THE ASSESSEE . 4. WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE RECORD PLACED BEFORE US. WE HAVE GONE THROUGH THE MISCELLANEOUS APPLICATION AS WELL AS THE NOTE OF THE AUDI T PARTY RAISING OBJECTION ABOUT UNDER-ASSESSMENT OF INCOM E AT RS. 50 LACS. WE ALSO FIND THAT THIS AUDIT OBJECTION W AS IN THE NAME OF THE PARTNERSHIP FIRM M/S PARSHWANATH CONSTRUCTION. THIS PARTNERSHIP FIRM WAS INCORPORATED ON 14.7.2006. THE AUDIT OBJECTION IS FOR UNEXPLAINED INVESTMENT U/S 69 OF THE ACT DURING THE ASSESSMENT Y EAR 2006-07. THIS FACT IS NOT DISPUTED THAT THE ASSESSEE IS ONE OF THE PARTNERS OF THIS FIRM AND THE ALLEGED INVESTMEN T WAS MADE THROUGH HIM DURING THE ASSESSMENT YEAR 2006-07 M.A. 98/2016 MUKESH RANKA 4 WHICH WAS INTRODUCED AS CAPITAL IN THE PARTNERSHIP FIRM INCORPORATED ON 14.7.2006. IN THESE CIRCUMSTANCES, W E FIND FORCE IN THE CONTENTION OF THE LEARNED DR THAT THE AUDIT OBJECTION IN THIS CASE VERY MUCH RELATES TO THE ASSESS EE. WE, THEREFORE, ARE OF THE VIEW THAT THERE IS AN APPAREN T MISTAKE IN THE ORDER OF THE TRIBUNAL. WE, THEREFORE, RECALL THE ORDER OF THE TRIBUNAL DATED 21.12.2015 ONLY WITH RESPECT TO THE REVENUES APPEAL IN ITA NO. 27/IND/201 5 WITH THE DIRECTION TO THE REGISTRY TO REFIX THIS APP EAL FOR HEARING AT ITS ORIGINAL NUMBER IN DUE COURSE OF TIME AN D INFORM BOTH THE PARTIES ACCORDINGLY. 5. IN THE RESULT, THE REVENUES MISCELLANEOUS APPLICAT ION IS ALLOWED. PRONOUNCED IN OPEN COURT ON 31 ST MAY, 2018. SD/- SD/- (KUL BHARAT) (MANISH BORAD) JUDICIAL MEMBER ACCOUNTANT MEMBER 31 MAY, 2018 M.A. 98/2016 MUKESH RANKA 5 DN/- COPY TO APPELLANT/RESPODENT/PR.CIT/CIT(A)/DR/GUAR D FILE BY ORDER PRIVATE SECRETARY