SHRI SHYAMSUNDAR SONI KARTA HUF,BIKANER V. ACIT, CIRCLE, BIKANER

MA 8/JODH/2024

AI Insights

The case involves Shyamsundar Soni, Karta, HUF, who filed miscellaneous applications against the order of the ITAT which did not address a specific ground (Ground No. 3) in their earlier appeal concerning the assessment years 2013-14 to 2019-20. The ground pertained to the incorrect application of tax rates on declared business income. The Tribunal acknowledged the oversight and recalled the earlier order to address the unadjudicated ground, ultimately deciding in favor of the assessee by directing the AO to apply the normal tax rate.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 717217 (ITAT-JODHPUR)
• Duration Of Justice: 1 year(s) 6 month(s) 30 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 21-08-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2015-2016
• Appeal Filed On: 22-01-2024
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ASSESSEE AMIT KOTHARI; REVENUE M.K. JAIN; LD.
• Keywords: Business income; Unexplained investment; Document seized; Peak credit; Loose papers
• Section: 271(1)(c)

Judgement Text

"1 M.As 06 to 12-Jodh-2023 Arising out from ITA No. 61 to 67-Jodh-2023 Shyamsundar Soni, Karta, HUF IN THE INCOME TAX APPELLATE TRIBUNAL JODHPUR BENCH, JODHPUR BEFORE DR. MITHA LAL MEENA, HON’BLE ACCOUNTANT MEMBER AND SHRI ANIKESH BANERJEE, HON’BLE JUDICIAL MEMBER M.As 06 to 12/Jodh/2023 (Arising out of I.T.A No.61 to 67/Jodh/2023) (Assessment Years :2013-14, 2014-15, 2015-16, 2016-17, 2017-18,2018-19 & 2019-20) Shyamsundar Soni Karta HUF Shyam Sadan, Sunaron Ki Badi Guwad, Bikaner vs ACIT, Central Circle, Bikaner APPLICANT RESPONDENT Date of hearing 21/08/2025 Date of pronouncement 21/08/2025 O R D E R Per Bench: These miscellaneous applications filed by the assessee for Assessment Years 2013-14 to 2019-20 arise out of the order passed by the Tribunal dated 07-08-2023 passed in ITA Nos 61 to 67/Jodh/2023. Since all the miscellaneous applications contain common facts and issue, all were heard together and are disposed of by this consolidated order. M.A. No.06/Jodh/2023 is taken as lead case, which arise out of the order of the Tribunal in ITA No.61/Jodh/2023. M.A. No.06/Jodh/2023 (A.Y. 2013-14) Present for Assessee Shri Amit Kothari, CA Present for Revenue Shri M.K. Jain, Ld.CIT(DR.) Printed from counselvise.com 2 M.As 06 to 12-Jodh-2023 Arising out from ITA No. 61 to 67-Jodh-2023 Shyamsundar Soni, Karta, HUF 2. The Ld.AR submitted that while disposing of the appeal on 07/08/2023, ground No.3 raised by the assessee was not dealt with by a wrong notion, by holding as below:- \"7.2 The ground no. 3 raised by the assessee is not emanating from the order of the Id. CIT(A) and the assessee has not raised prayer for raising this ground as additional ground the same is not required to be adjudicated as not arising out of the order of the Id. CIT(A) and therefore, the same is not required to be adjudicated upon by us.\" 3. The Ld.AR stated that the assessee declared the business income in the return of income, but the Ld.AO levied the tax rate as per section 15BBE of the Act. The issue was challenged before the ITAT. But the ITAT, by a wrong notion held that the ground 3 raised by the assessee was not emanating from the order of the Ld. CIT(A), and therefore, the same was not adjudicated upon. The Ld.AR, therefore, submitted that to this extent there is an apparent mistake crept in, in the order of the Tribunal and, therefore, the Tribunal order dated 07/08/2023 needs to be recalled to dispose of ground No.3 raised by the assessee. 4. The Ld.DRargued and prayed not recall the alleged ground-3. 5. We heard the rival submissions and perused the materials placed before us. We are in agreement with the contention of the Ld.AR that the ground 3 raised by the assessee was not disposed of by the Tribunal under a wrong notion. Accordingly, we recall the order dated 07/08/2023 passed by the Tribunal in ITA No.61/Jodh/2023 and restore the ground no-3 of the order of ITAT in its original number. Printed from counselvise.com 3 M.As 06 to 12-Jodh-2023 Arising out from ITA No. 61 to 67-Jodh-2023 Shyamsundar Soni, Karta, HUF ITA No. 61/Jodh/2023 6. On perusal of the impugned assessment order we found the amount of Rs. 91.30 lakh was surrendered by the assessee and declared in its return of income. The Ld. AO accepted the fact and observed as follows: - 6. In the present case, during the survey proceedings, various loose papers containing details of giving unaccounted cash loan on interest were found and impounded as Annexure AS-1. Further, during the post survey proceeding, Karta of assessee HUF, Shri Shyam Sundar Soni, submitted a working of peak balance worked on basis of impounding incriminating material and admitted a sum of Rs 93.10 Lakhs as the undisclosed income of the assessee HUF for different Assessment Years as under:- Financial Year Peak Amount of Investment / loan (Rs.in lakh) 2012-13 20.00 2013-14 - 2014-15 6.00 2015-16 36.50 2016-17 20.60 2017-18 5.00 2-18-19 5.00 Total 93.10 Lakh Thus, amount of Rs.20,00,000/- as the undisclosed Income of the assesseeIn respect of cash loan for concerned A.Y. 2013-14. The assessee has shown the income of Rs 20,00,000/-in its ITR however the assessee has taxed the same as its regular income. 7.1 The assessee HUF was asked to explain how the income of Rs 20,00,000/- has been honored in its ITR. The assessee submitted its reply and stated that- \"while surrendering the income, the assessee faithfully submitted that I started out of business by taking some loan from market but to peace purchase peace of mind I treat this my own fund and surrendered this as additional income. Out of that fund business activities out of book were run and some loans were given out of that. Loans mentioned in loose papers were unexplained therefore assessee himself surrendered the entire amount as an his own unexplained investment fund which were used for business activities out of books. In that surrender amount all investment and profit earned from that business had been surrendered by making entries of all transaction in separate account books of out of business. All loose paper and diaries were taken in that business activities of out of books Printed from counselvise.com 4 M.As 06 to 12-Jodh-2023 Arising out from ITA No. 61 to 67-Jodh-2023 Shyamsundar Soni, Karta, HUF business. The surrender includes all the loans and sale purchase entries in made in document seized by your office. All surrender income amount has been declared in our ITR filed Uls 148 copy of ITR and computation is there in earlier reply filed by us.\" 7.2 As such, the assessee has said in its reply that \"therefore assessee himself surrendered all the amount as an his own unexplained investment\" therefore the said amount of Rs. 20,00,000/- is hereby considered as unexplained investment Uls 69 of the IT Act, 1961. Further, the provisions of section 115BBE of the Act are accordingly applied on said addition. Consequently, penalty proceedings U/s 271(1)(c) r.w.s 274 of the Act is initiated separately against above referred amount for concealment of income.” 7. In our considered view, it is an accepted fact that the assessee had received an unsecured cash loan for the purpose of its business. Subsequently, the assessee admitted that the said amount represented his own capital arising from business activities. The assessee has duly declared the impugned amount in the return of income and has also discharged the corresponding tax liability. Therefore, the application of section 115BBE of the Act is not justified. The issue has been raised before us in Ground No. 3, and we find merit in the assessee’s contention. The assessee is well within his right to raise this legal ground before the Tribunal. Accordingly, Ground No. 3 is decided in favour of the assessee. Consequently, the Ld. AO is directed to levy tax at the normal applicable rate. In the result, Ground No. 3 stands allowed. M.As 07 to 12/Jodh/2023& ITA No 62 to 67/Jodh/2023 (A.Ys2014-15, 2015- 16, 2016-17, 2017-18,2018-19 & 2019-20) 8. The facts and circumstances as also the issue in these miscellaneous applications is identical to M.A.No.06/Jodh/2023 related ITA No. 61/Jodh/2023, which we have already decided above. Therefore, the decision Printed from counselvise.com 5 M.As 06 to 12-Jodh-2023 Arising out from ITA No. 61 to 67-Jodh-2023 Shyamsundar Soni, Karta, HUF arrived at above shall apply mutatis mutandis to these miscellaneous applications also. 9. In the result, all the miscellaneous applications bearing MAs 06 to 12/Jodh/2023 are allowed. 10. In the result, Ground no.3 of all the ITA No 61 to 67/Jodh/2023 are allowed Order pronounced in the open court on 21st August, 2025 Sd/- sd/- (DR.MITHA LAL MEENA) (ANIKESH BANERJEE) ACCOUNTANT 21st August, 2025 Pavanan Copy of the Order forwarded to: 1. अपीलाथŎ/The Appellant , 2. Ůितवादी/ The Respondent. 3. आयकरआयुƅ CIT 4. िवभागीयŮितिनिध, आय.अपी.अिध., मुबंई/DR, ITAT, Jodhpur 5. गाडŊफाइल/Guard file. BY ORDER, //True Copy// (Asstt. Registrar), ITAT, Jodhpur Printed from counselvise.com "