Shri Sudhir Kumar Sharma and Smt. Shobha Sharma V. The Commissioner of Income Tax-III, Ludhiana

ITA/123/2014

AI Insights

The case involves a series of appeals filed by Shri Sudhir Kumar Sharma, both in his individual capacity and as Karta of his HUF, against the Commissioner of Income Tax-III, Ludhiana. The appeals were related to the assessment year 2007-08 and stemmed from a survey conducted under Section 133A of the Income Tax Act, 1961, at the assessee's business premises. The primary contention revolved around the additions made under Section 68 of the Income Tax Act, which were affirmed by the Income Tax Appellate Tribunal. The High Court's decision to dismiss the appeals was based on the precedent set in a similar case involving the same appellant, which had already been decided against him.

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 795386 (HC-MISC)
• Appeal Type: Others
• Pronouncement Date: 28-07-2014
• Assessment Year: misc
• Other Referred Cases: Shri Sudhir Kumar Sharma (HUF) v. The Commissioner of Income Tax-III, Ayakar Bhawan, Rishi Nagar, Ludiana
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Revenue
• Court: HIGH COURT
• Assessee Lawyers: SANJAY BANSAL; RAJNI PAL
• Keywords: Addition under Section 68; Assessment Year 2007-08; Income Tax; Penalty proceedings; Survey under section 133A
• Section: 271(1)(c); 68; 133A; 260A

Judgement Text

"ITA No. 123 of 2014 -1- IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH ITA No. 123 of 2014 (O&M) Date of Decision: 28.7.2014 Shri Sudhir Kumar Sharma ....Appellant Versus The Commissioner of Income Tax-III, Ludhiana ...Respondent. CORAM:- HON'BLE MR. JUSTICE AJAY KUMAR MITTAL. HON'BLE MR. JUSTICE JASPAL SINGH. PRESENT: Mr. Sanjay Bansal, Senior Advocate with Ms. Rajni Pal, Advocate for the appellant. AJAY KUMAR MITTAL, J. 1. This order shall dispose of a bunch of five appeals bearing ITA Nos. 123 to 127 of 2014 as according to the learned counsel for the appellant, the facts and issues involved therein are identical. For brevity, the facts are being taken from ITA No. 123 of 2014. 2. This appeal has been filed by the assessee under Section 260A of the Income Tax Act, 1961 (in short “the Act”) against the order dated 27.6.2013 passed by the Income Tax Appellate Tribunal, Chandigarh Bench “A”, Chandigarh, in ITA No. 713/Chd/2010, for the assessment year 2007-08, claiming the following substantial questions of law:- “a) Whether on the facts and in the circumstances of the case, the Tribunal while affirming the order passed by the Assessing Officer acted illegally and perversely in recording its conclusions based on irrelevant findings Singh Gurbachan 2014.08.05 11:08 I attest to the accuracy and integrity of this document High Court Chandigarh ITA No. 123 of 2014 -2- and in ignoring uncontroverted relevant material on record? b) Whether on the facts and in the circumstances of the case, the Tribunal was legally correct in applying the provisions of Section 68 of the Income Tax Act, 1961 while affirming the additions made by the Assessing Officer? c) Whether on the facts and in the circumstances of the case, the Tribunal was legally correct in sustaining the addition made under Section 68 of the Income Tax Act, 1961 by the Assessing Officer contrary to the principles of natural justice and in undue haste? d) Whether on the facts and in the circumstances of the case, the Tribunal was legally correct in sustaining the addition made by the Assessing Officer under Section 68 of the Income Tax Act, 1961 on the basis of statement recorded during survey under Section 133 of the Act which has no evidentiary value? e) Whether on the facts and in the circumstances of the case, the impugned order passed by the Tribunal is perverse and a result of total non application of mind? 3. Put shortly, the facts necessary for adjudication of the present appeal as pleaded therein may be noticed. The assessee in his individual capacity and as a Karta representing his HUF is engaged in the business of Brokerage/Trading in shares and commodities. A survey under Section 133A of the Act was conducted at the business premises of the assessee on 31.10.2007 and the statement of the assessee was Singh Gurbachan 2014.08.05 11:08 I attest to the accuracy and integrity of this document High Court Chandigarh ITA No. 123 of 2014 -3- recorded. Thereafter, the assessee filed his return for the assessment year 2007-08 declaring the income at ` 1,61,680/-. The Assessing Officer vide order dated 31.12.2009 (Annexure A-1) made an addition of ` 1,26,66,000/-. Since the assessee concealed the particulars of the income, penalty proceedings under Section 271(1)(c) of the Act were also initiated against the assessee. Feeling aggrieved, the assessee filed an appeal before the Commissioner of Income Tax (Appeals) [for short “the CIT(A)”]. The CIT (A) vide order dated 16.4.2010 (Annexure A-2) sustained the addition of ` 10,55,260/- thereby deleting the addition of ` 1,16,10,740/-. Against the order dated 16.4.2010 (Annexure A-2), the assessee as well as the revenue filed appeals before the Tribunal. The Tribunal vide order dated 27.6.2013 dismissed the appeals filed by the assessee and allowed that of the revenue. Hence, the present appeals by the assessee. 4. We have heard learned counsel for the appellant. 5. Learned counsel for the appellant fairly conceded that the issues raised in these appeals stand concluded by the decision of this Court in ITA No. 122 of 2014 [Shri Sudhir Kumar Sharma (HUF) v. The Commissioner of Income Tax-III, Ayakar Bhawan, Rishi Nagar, Ludiana decided on 12.5.2014 whereby the said appeal raising the similar issues along with the other connected appeals was dismissed. 6. In view of the above, the present appeals are also dismissed. 7. As the appeals were barred by time, the applications under Section 5 of the Limitation Act, 1963 for condonation of delay in filing the appeals were filed in all the appeals. Since, the appeals have been dismissed on merits, therefore, no further orders are required to be Singh Gurbachan 2014.08.05 11:08 I attest to the accuracy and integrity of this document High Court Chandigarh ITA No. 123 of 2014 -4- passed in the applications for condonation of delay in filing the appeals and the same stand disposed of as such. (AJAY KUMAR MITTAL) JUDGE July 28, 2014 (JASPAL SINGH) gbs JUDGE Singh Gurbachan 2014.08.05 11:08 I attest to the accuracy and integrity of this document High Court Chandigarh ITA No. 123 of 2014 -5- IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH ITA No. 124 of 2014 (O&M) Date of Decision: 28.7.2014 Shri Sudhir Kumar Sharma ....Appellant Versus The Commissioner of Income Tax-III, Ludhiana ...Respondent. CORAM:- HON'BLE MR. JUSTICE AJAY KUMAR MITTAL. HON'BLE MR. JUSTICE JASPAL SINGH. PRESENT: Mr. Sanjay Bansal, Senior Advocate with Ms. Rajni Pal, Advocate for the appellant. AJAY KUMAR MITTAL, J. For orders, see ITA No. 123 of 2014 (Shri Sudhir Kumar Sharma v. The Commissioner of Income Tax-III, Ludhiana). (AJAY KUMAR MITTAL) JUDGE July 28, 2014 (JASPAL SINGH) gbs JUDGE Singh Gurbachan 2014.08.05 11:08 I attest to the accuracy and integrity of this document High Court Chandigarh ITA No. 123 of 2014 -6- IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH ITA No. 125 of 2014 (O&M) Date of Decision: 28.7.2014 Shri Sudhir Kumar Sharma ....Appellant Versus The Commissioner of Income Tax-III, Ludhiana ...Respondent. CORAM:- HON'BLE MR. JUSTICE AJAY KUMAR MITTAL. HON'BLE MR. JUSTICE JASPAL SINGH. PRESENT: Mr. Sanjay Bansal, Senior Advocate with Ms. Rajni Pal, Advocate for the appellant. AJAY KUMAR MITTAL, J. For orders, see ITA No. 123 of 2014 (Shri Sudhir Kumar Sharma v. The Commissioner of Income Tax-III, Ludhiana). (AJAY KUMAR MITTAL) JUDGE July 28, 2014 (JASPAL SINGH) gbs JUDGE Singh Gurbachan 2014.08.05 11:08 I attest to the accuracy and integrity of this document High Court Chandigarh ITA No. 123 of 2014 -7- IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH ITA No. 126 of 2014 (O&M) Date of Decision: 28.7.2014 Smt. Shobha Sharma ....Appellant Versus The Commissioner of Income Tax-III, Ludhiana ...Respondent. CORAM:- HON'BLE MR. JUSTICE AJAY KUMAR MITTAL. HON'BLE MR. JUSTICE JASPAL SINGH. PRESENT: Mr. Sanjay Bansal, Senior Advocate with Ms. Rajni Pal, Advocate for the appellant. AJAY KUMAR MITTAL, J. For orders, see ITA No. 123 of 2014 (Shri Sudhir Kumar Sharma v. The Commissioner of Income Tax-III, Ludhiana). (AJAY KUMAR MITTAL) JUDGE July 28, 2014 (JASPAL SINGH) gbs JUDGE Singh Gurbachan 2014.08.05 11:08 I attest to the accuracy and integrity of this document High Court Chandigarh ITA No. 123 of 2014 -8- IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH ITA No. 127 of 2014 (O&M) Date of Decision: 28.7.2014 Smt. Shobha Sharma ....Appellant Versus The Commissioner of Income Tax-III, Ludhiana ...Respondent. CORAM:- HON'BLE MR. JUSTICE AJAY KUMAR MITTAL. HON'BLE MR. JUSTICE JASPAL SINGH. PRESENT: Mr. Sanjay Bansal, Senior Advocate with Ms. Rajni Pal, Advocate for the appellant. AJAY KUMAR MITTAL, J. For orders, see ITA No. 123 of 2014 (Shri Sudhir Kumar Sharma v. The Commissioner of Income Tax-III, Ludhiana). (AJAY KUMAR MITTAL) JUDGE July 28, 2014 (JASPAL SINGH) gbs JUDGE Singh Gurbachan 2014.08.05 11:08 I attest to the accuracy and integrity of this document High Court Chandigarh "