GST Helpdesk   Subscription   Demo   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
What's New Case Laws Highlights Articles News Forum Short Notes Statutory TMI SMS More ...
Extracts
Home List
← Previous Next →

2016 (5) TMI 60 - ITAT MUMBAI

2016 (5) TMI 60 - ITAT MUMBAI - [2016] 47 ITR (Trib) 328 - Validity of assessment u/s 153C - addition has been made in the absence of any seized documents - Held that:- From the orders of the lower authorities are that during the search conducted at the residence of Shri Prakash H. Savla, documents related to the firm, M/s. Mahavir Builders, were found and seized. Subsequently, Shri Prakash H. Savla and Shri Pankaj Gangar (husband of the assessee) gave some declarations offering undisclosed inco .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

filed for the impugned assessment year, no disclosure was made by the assessee, as the same was made only for the assessment year 2007-08. During the course of assessment proceedings the Assessing Officer made additions of ₹ 2,00,000 on account of gift received by the assessee. The admitted facts on record are that the addition has been made in the absence of any seized documents. It is noted that the declaration was made by the assessee only for the assessment year 2007-08, and has been .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

of Vimal Kumar Rathi [2016 (1) TMI 215 - ITAT MUMBAI] held that no addition can be made in the absence of any adverse material found during the search. - Decided in favour of assessee

Telescoping of the unaccounted brokerage and commission income against the amount offered in the return by the assessee - Held that:- In the assessment proceedings before the Assessing Officer, the assessee claimed that the entry of commission and brokerage of ₹ 6,00,000 received in cash is covered .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

d on account of some brokerage and commission income is covered within the offer of ₹ 30 lakhs made by the assessee. The learned Commissioner of Income-tax (Appeals) has discussed in detail the entire law on telescoping but failed to discuss that how and in what manner, the impugned amount was covered in the income offered by the assessee. We find that the grievance of the Revenue that the assessee was not able to establish any nexus between the two amounts is justified. We further find th .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

f the aforesaid annexure GS4-A2, thus this document is half a dumb and half a speaking document. Before it could be used for making addition in the hands of the assessee, there was a legal obligation on the shoulders of the Assessing Officer, to make it as fully speaking document since he wanted to make addition on the basis of this document. There are no indications or observations in the assessment order showing that whether the Assessing Officer made any efforts to contact Mr. Arunbhai. It ha .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

record to explain and substantiate this document. Therefore, addition was wrongly made by the Assessing Officer, and, therefore, the same is hereby deleted.- Decided in favour of assessee

Addition on account of unsecured loan - Held that:- The assessee has discharged its onus under section 68. Even otherwise, the impugned addition was made in the absence of incriminating material, and keeping in view all the facts and circumstances of the case, the addition being illegal, has rightly .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

Commissioner of Income-tax (Appeals) has taken holistic view of the matter while accepting the claim of the assessee. Before us nothing contrary could be brought on record by the learned Commissioner of Income-tax-Departmental representative and the reasons/findings given by the learned Commissioner of Income-tax (Appeals) could not be controverted. Therefore, keeping in view all the facts and circumstances of the case, we find that the order of the learned Commissioner of Income-tax (Appeals) .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

RDER 1. These appeals arise as a result the orders passed in pursuance of search and seizure operation under section 132 of the Income-tax Act, 1961, conducted in the case of Shri Prakash H. Savla on January 17, 2008. Since common issues are involved, therefore, these appeals have been decided together. First, we shall take up the appeals pertaining to Ms. Chhaya P. Gangar ITA No. 1753/Mum/2011 for the assessment year 2003-04 (assessee's appeal) Following grounds have been raised by the asse .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

e course of hearing, Shri Harshad J. Shah and Shri Ashok Kumar Suthar, learned counsel on behalf of the assessee and Shri L. K. S. Dahia, Departmental representative (learned Commissioner of Income- tax-Departmental representative) on behalf of the Revenue, argued the case. 3. During the course of hearing, it has been argued by the learned counsel appearing on behalf of the assessee that in this case no jurisdiction as per law could have been assumed under section 153C because nothing incriminat .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

law and facts on the merits also. 3.1. In support of his claim, the learned counsel has placed copy of the judgment in the case of Vimal Kumar Rathi v. Deputy CIT (ITA Nos. 3094-3096/Mum/2013 order dated October 16, 2015) passed by the honourable Mumbai Bench of the Income-tax Appellate Tribunal. He has also placed reliance on various judgments which have been relied upon in the case of Vimal Kumar Rathi (ITA Nos. 3094-3096/Mum/2013 order dated October 16, 2015). Reliance has also been placed o .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

s of the gift of ₹ 2,00,000 received by the assessee, which has been added by the Assessing Officer in the assessment order. It was, lastly, submitted by him that no assessment or appeal was pending as on the date of search, and, therefore, no assessment/appeal has abated as a result of the search action, and, therefore, neither action under section 153C was justified nor the addition made in the assessment order within the periphery of jurisdiction assigned by the Legislature upon the Ass .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

eturn of income filed by the assessee, and, therefore, under these circumstances, it cannot be said that nothing was found against the assessee. In response to the query of the Bench that whether the additions made in the assessment order were based upon any incriminating material, the response of the learned Commissioner of Income-tax-Departmental representative was very fair. It was clarified that the additions were not based upon any incriminating material. But he argued that it is not necess .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

tions. 3.3. We have heard both the sides very carefully and gone through the material placed, the orders of the lower authorities as well as the judg ments relied upon before us. The brief facts as culled out from the orders of the lower authorities are that during the search conducted at the residence of Shri Prakash H. Savla, documents related to the firm, M/s. Mahavir Builders, were found and seized. Subsequently, Shri Prakash H. Savla and Shri Pankaj Gangar (husband of the assessee) gave som .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

return on August 28, 2009. In the return filed for the impugned assessment year, no disclosure was made by the assessee, as the same was made only for the assessment year 2007-08. During the course of assessment proceedings the Assessing Officer made additions of ₹ 2,00,000 on account of gift received by the assessee. The admitted facts on record are that the addition has been made in the absence of any seized documents. It is noted that the declaration was made by the assessee only for th .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

counsel has placed before us copy of the judgment of the honourable co-ordinate Bench in the case of Vimal Kumar Rathi (ITA No. 3094-3096/Mum/2013 order dated October 16, 2015) wherein it has been held that no addition can be made in the absence of any adverse material found during the search. We are reproducing hereunder the relevant paragraphs of this judgment : "9. We have heard both the parties and perused the orders of the Revenue authorities as well as the cited decision of the Tribu .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

for the proposition that 'when no assessment has abated, the question of making any addition or making disallowance which are not based on only material found during the search is bad in law'. In this regard, we find it relevant to extract the relevant paragraphs from the decision of the Tribunal in the case of Govind Agarwal (ITA No. 3389/Mum/2011, dated January 10, 2014) and the same is as follows : '12. We have heard the parties and their divergent stands on the legal issue and th .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

on 153A, the Assessing Officer made (i) addition under section 68 on account of artificially inflated investment in house duly disclosed in the balance-sheet of the assessee ₹ 31,33,070 ; and (ii) disallowance under section 14A : ₹ 23,31,469. Admittedly, there is no incriminating material before the Assessing Officer to support the above additions. The valuation report, which is garnered by the authorities, constitutes mere estimates and the provisions of section 132 is not required .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

see or books not produced to the Assessing Officer earlier or the incriminating material gathered by the Investigation wing of the Revenue. Considering the legal propositions placed before us by the assessee's counsel, we are of the opinion, such assessments or additions are unsustainable in law. 13. For the sake of completeness, we insert here some of the extracts from relevant judgments and they are : "A. [2013] 1 ITR-OL 371 (Raj) ; [2013] 36 taxmann.com 523 (Raj) in the case of Jai S .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

assessed. . . . Para 30 of the judgment (page 384) : The plea raised on behalf of the assessee that as the first proviso provides for assessment or reassessment of the total income in respect of each assessment year falling within the six assessment years, is merely reading the said provision in isolation and not in the context of the entire section. The words "assess" or "reassess" have been used at more than one place in the section and a harmonious construction of the enti .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

se of search or requisition of documents.' B. [2012] 28 taxmann.com 328 (Mumbai-Trib.) in the case of Gurinder Singh Bawa v. Deputy CIT. '. . . Whether since assessment under section 153A was passed by Assessing Officer on basis of material available in return of income and there was no reference to any incriminating material found during search and since no assessment was abated, assessment under section 153A was to be quashed being made without jurisdiction available under section 153A .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

furnish the return of income for six years immediately preceding the year of search. The Special Bench further held that in case assessment has abated, the Assessing Officer retains the original jurisdiction as well as jurisdiction under section 153A for which assessment shall be made for each assessment year separately. Thus, in case where assessment has abated the Assessing Officer can make additions in the assessment, even if no incriminating material has been found. But in other cases the Sp .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

43(2) had expired on the date of search. Therefore, there was no assessment pending in this case and in such a case there was no question of abatement. Therefore, addition could be made only on the basis of incriminating material found during search.' C. All Cargo Global Logistics Ltd. v. Deputy CIT [2012] 18 ITR (Trib) 106 (Mumbai) [SB] ; [2012] 137 ITD 287 (Mum) ; [2012] 23 taxmann.com 103 (Mum.) (SB) Paragraph 59 of the Special Bench decision (page 154) : Thus, question No. 1 before us is .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

other documents, found in the course of search but not produced in the course of original assessment, and (ii) undisclosed income or property discovered in the course of search." 14. Thus, in case of the completed assessments either under section 143(1) or 143(3), the above extracts are uniform in advocating against making additions in routine manner in the assessments made under section 153A of the Act when there is no incriminating material gathered in the search action. Statutory notice .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

t with, we have perused the judgment of the honourable Delhi High Court in the case of Madugula Venu v. DIT [2013] 29 taxmann.com 200 (Delhi), and find that, though explained the provisions in plain language, it does not dealt with the relevance or factum of incriminating material. Further, the judgment of the Andhra Pradesh High Court in the case of Gopal Lal Bhadruka v. Deputy CIT [2012] 346 ITR 106 (AP) ; [2012] 27 taxmann.com 167 (AP) is not on the notices issued under section 153A of the Ac .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

(Mumbai) ; [2012] 28 taxmann.com 246 (Mumbai-Trib.) which is relevant for the proposition that the completed assessment may not be disturbed in the absence of any incriminating material specific to the assessee. In fact, all these judgments take spirit from the Special Bench decision in the case of All Cargo Global Logistics Ltd. [2012] 18 ITR (Trib) 106 (Mumbai) ; [2012-TIOL-391-ITAT-Mum-SB], which is relevant for the proposition that the assessment under section 153A will be made on the basis .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ideration. Regarding the DVO's report gathered during the search action, we find that the report suffers from certain deficiencies qua cost of construction of residential property and the land obtained thereto. The said report constitutes an opinion of the third party which cannot be used by the Assessing Officer for making additions and such additions, if any, cannot be sustained legally. As such, we find that the Assessing Officer has not used the said report of the DVO also for making add .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

, the assessee would not have spend ₹ 31,33,007 by March 31, 2002. This is merely a presumption rather conclusion based on any evidences. Such additions are unsustainable in law in the assessments made under section 153A read with section 143(3) of the Act. 17. Rajasthan High Court judgment in the case of Jai Steel (India) [2013] 1 ITR-OL 371 (Raj) ; [2013] 36 taxmann.com 523 (Raj), vide para 21, it is categorically mentioned that 'the requirement of assessment or reassessment under th .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

n concluding that, in case of the concluded assessments like the present one, the additions are made only based on the incriminating material discovered during the search action. The facts of the Jai Steel (India) [2013] 1 ITR-OL 371 (Raj) ; [2013] 36 taxmann.com 523 (Raj) are identical to the present one, i.e., Assessing Officer made additions by reassess ing under section 153A on the completed assessment under section 143(1) of the Act. Thus, considering the judgment in the case of the Jai Ste .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

not backed by the incriminating materials. In the absence of incriminating material, the role of the Assessing Officer is only to reiterate the returned income filed in response to the notice under section 153A of the Act. Accordingly, in substance, the common legal issue raised in the grounds for both the appeals of the assessee (ITA Nos. 3389 and 3390/M/2011) is allowed.' 10. Further, in the recent past, similar issue was adjudicated by the honourable Delhi High Court in the case of CIT v .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

essed.' 11. Further, we find it relevant to mention here that on perusal of the paper book filed before us, page 23 of the said paper book shows the accounted nature of the transactions in respect of the disputed gift amount of ₹ 4 crores. It is also noted that the additions were made not on account of 'gifts' but on account of 'source of funds for repayment of loans'. In this regard, we find the said loans are repaid through journal entries. Therefore, the Revenue auth .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

f the assessee, the other grounds demand no specific adjudication. Thus, on the legal ground the assessee succeeds and rest of the grounds are dismissed as academic." 3.5. The honourable Delhi High Court in the case of CIT v. Kabul Chawla [2016] 380 ITR 573 (Delhi) (ITA Nos. 707/2014, decided on August 28, 2015) has held that completed assessments could only be interfered with by the Assessing Officer on the basis of any incriminating material unearthed during the course of the search or re .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

earch takes place under section 132 of the Act, notice under section 153A(1) will have to be mandatorily issued to the person searched requiring him to file returns for six assessment years immediately preceding the previous year relevant to the assessment year in which the search takes place. (ii) Assessments and reassessments pending on the date of the search shall abate. The total income for such assessment years will have to be computed by the Assessing Officers as a fresh exercise. (iii) Th .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

uld be brought to tax'. (iv) Although section 153A does not say that additions should be strictly made on the basis of evidence found in the course of the search, or other post-search material or information available with the Assessing Officer which can be related to the evidence found, it does not mean that the assessment 'can be arbitrary or made without any relevance or nexus with the seized material. Obviously an assessment has to be made under this section only on the basis of seiz .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

merges into one. Only one assessment shall be made separately for each assessment year on the basis of the findings of the search and any other material existing or brought on the record of the Assessing Officer. (vii) Completed assessments can be interfered with by the Assessing Officer while making the assessment under section 153A only on the basis of some incriminating material unearthed during the course of search or requisition of documents or undisclosed income or property discovered in .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ITR 177 (Delhi) cannot be understood to mean that the Assessing Officer has the jurisdiction to make a reassessment in every case, where seized assets or documents are handed over to the Assessing Officer. The question whether the documents/assets seized could possibly reflect any undisclosed income has to be considered by the Assessing Officer after examining the seized assets/documents handed over to him. It is only in cases where the seized documents/assets could possibly reflect any undiscl .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

the income of the assessee for the relevant assessment years. As expressly indicated under section 153C of the Act the assessment or reassessment of income of a person other than a searched person would proceed in accordance with the provisions of section 153A of the Act. The concluded assessments cannot be interfered with under section 153A of the Act unless the incriminating material belonging to the assessee has been seized." 3.7. Coming back to the facts of the case, it is noted that u .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

e we delete the same. Since, this issue has been decided in favour of the assessee on primary legal ground, we find that other grounds do not require adjudication at this stage. Thus, these are treated as infructuous. 4. Accordingly, appeal of the assessee is partly allowed. Ms. Chhaya Gangar: ITA No. 163/Mum/2012 (Revenue's Appeal) and C. O. No. 34/Mum/2013 for assessment year 2005-06 5. In this case there is a delay of 54 days in filing the cross objections by the assessee before the Tribu .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

tructed the respondent/cross objector to do so. Soon after obtaining the professional advice from the counsel the respondent/cross objector has within reasonable time filed this cross objection before this honourable Tribunal. It is submitted that the respondent/cross objector, inadvertently, due to lack of proper professional advice on this issue, could not filed the cross objections before this honourable Tribunal well in time, i.e., on or before December 26, 2012, and by the time the responde .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ss objections, in the interest of justice. Therefore, the cross objection is admitted for adjudication. 5.2. It is noted by us that the primary legal issue raised by the assessee is the same in this year also. The assessee has filed revised and concise grounds of appeal with its cross objections : Ground Nos. 4 and 5 of C.O. read as under : "4. The additions deleted by the learned Commissioner of Income- tax (Appeals) is just and proper under the facts and circumstances of the case. 5. With .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

s of the case." 5.3. It is noted that in the assessment order the addition has been made by the Assessing Officer by treating the long-term capital gain earned by the assessee on the sale of shares as income from other sources. The facts involved are identical in the sense that the impugned addition has been made in the absence of any incriminating material found during the course of search. Thus, following our order for the assessment year 2003-04 (supra), we find that additions are not su .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

64/Mum/2012 (Revenue's appeal) and Cross Objection No. 35/Mum/2013 for assessment year 2006-07 7. We note that the facts involved in this year are identical to the facts of the assessment year 2005-06. Accordingly, following our order, the delay in filing of the cross objection is condoned, and cross objection is admitted for adjudication, and ground Nos. 4 and 5 of the cross objection of assessment year 2006-07 are allowed. Therefore, appeal of the Revenue becomes infructuous. 8. As a resul .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

nd cross objection is admitted for adjudication. 9.1. It is further noted that ground Nos. 4 and 5 of the cross objection are identical to the case of Ms. Chhaya Gangar and, therefore, these are allowed. The cross objection is treated as partly allowed. 9.2. In the Revenue's appeal, grounds Nos. 1, 2, 3 deal with the action of the Assessing Officer in treating the amount of capital gain earned by the assessee as a result of sale of shares, as "income from other sources". This addit .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

unexplained cash receipts by holding that these cannot be rental receipts when the Assessing Officer had never held that these receipts were rental receipts. 10.1. Brief facts are that the Assessing Officer found that some of the documents found during the course of search were relating to M/s. Vividham Sweets and Snacks Shop, Borivali (W), and held on the basis of these documents that the assessee had earned a rent of ₹ 50,000 per month from January, 2005, to December, 2007, and, accordin .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

and has been accepted as such by the Department, and, therefore, no further addition was called for. 10.3. The learned Commissioner of Income-tax (Appeals) considered the submissions of the assessee in detail, and after considering entire incriminating material and details of surrender made by the assessee, it was concluded by him that the entries contained in these documents have been misunderstood by the Assessing Officer, and in any case the same has been covered in the surrender made by the .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

has been mentioned and the balance of ₹ 35,831 and minus ₹ 23,670 has been given. Similarly other entries are mentioned on various dates and the total amounts of ₹ 1,88,555 against which the expense of ₹ 1,32,135 and the balance of ₹ 56,420 has been shown. The interpretation of these entries shows that the assessee has made payment of ₹ 1,88,555 against the expenses of ₹ 1,32,135 and the balance of ₹ 56,420 due from M/s. Vividham Sweets and Snacks .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ts and Snacks Shop is belonging to the assessee and the assessee has received rent of ₹ 50,000 from M/s. Vividham Sweets and Snacks Shop and treated it unexplained rent received by the assessee and treated it as unexplained income for the assessment years 2005-06 to 2008-09. The Assessing Officer has not made any enquiry from Vividham Sweets and Snacks Shop that whether the shop is belonging to the appellant nor any other corroborative evidence found and seized during the course of search .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

s a rental income is not based on any cogent reason or documentary evidence. The interpretation made by the Assessing Officer is based on the presumption and conjectures only which cannot be sustained as per the provisions of the Act. Keeping in view all these facts and circumstances that there was not even any iota of evidence to prove that the assessee has received rental income of ₹ 50,000 from Vividham Sweets and Snacks Shop, therefore, the addition made by the Assessing Officer on acc .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

the entries contained in the seized documents clearly shows that it is an account of Vividham Sweets and Snacks Shop wherein receipts, payment of expenses and the balance amount has been mentioned on these pages which have been duly declared by the assessee in the case of partnership firm of which the assessee is a partner and due tax has been paid on this amount. We do not find any infirmity in the order of the learned Commissioner of Income-tax (Appeals) and nothing wrong could be pointed out .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

d that in this year also the facts are identical and, therefore, the cross objection is admitted for adjudication condoning the delay, following our order for the assessment year 2005-06. 12.1 Further, in consistency with our order for the assessment year 2005-06, ground Nos. 4 and 5 of the revised and concise grounds of cross objections filed by the assessee are allowed. 13. Grounds Nos. 1, 2, 3, of the Revenue's appeal are identical to grounds Nos. 1, 2 and 3 of the assessment year 2005-06 .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

found that the assessee has received a loan of ₹ 4,25,000, and the same was added under section 68 of the Act. The learned Commissioner of Income-tax (Appeals) deleted it on the ground that the assessee has discharged its onus under section 68 of the Act. 15.2. Being aggrieved, the Revenue has filed an appeal before the Tribunal. 15.3. It is noted by us that this addition has been made in the absence of any incriminating material. We have already held in the earlier part of this order no .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

No. 1784/Mum/2011 for the assessment year 2007-08 17. In ground No. 1, the Revenue has challenged the action of the learned Commissioner of Income-tax (Appeals) in deleting the addition of ₹ 6,00,000 made by the Assessing Officer on account of rent received from M/s. Vividham Sweets and Snacks Shop. It is noted by us that this ground is identical to ground No. 4 of the Revenue's appeal for the assessment year 2005-06, and, therefore, respectfully following our order for the assessment .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

are were found and seized, showing that in the ledger account under the name of commission and brokerage, there was an entry of cash received of ₹ 6,00,000 on March 31, 2007, in the books of account of the assessee. The assessee submitted that this entry has already been considered in the offer of income made by the assessee for an aggregate amount of ₹ 30,00,000, and, therefore, it should be adjusted with that. Being not satisfied, the Assessing Officer made the addition. In the app .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

mental representative that there were no basis with the learned Commissioner of Income-tax (Appeals) to grant the benefit of telescoping. 18.4. We have carefully gone through the order of the learned Commissioner of Income-tax (Appeals). It is noted by us that in the assessment proceedings before the Assessing Officer, the assessee claimed that the entry of commission and brokerage of ₹ 6,00,000 received in cash is covered in the declaration made on account of amount spent on renovation o .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

hin the offer of ₹ 30 lakhs made by the assessee. The learned Commissioner of Income-tax (Appeals) has discussed in detail the entire law on telescoping but failed to discuss that how and in what manner, the impugned amount was covered in the income offered by the assessee. We find that the grievance of the Revenue that the assessee was not able to establish any nexus between the two amounts is justified. We further find that no proper reasoning on facts has been given by the learned Commi .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ment year 2007-08, and, therefore, following our order, this ground is dismissed. 21. Ground No. 2 : It is identical to ground No. 2 of the assessment year 2007-08 and, therefore, following our order we allow this ground. 22. As a result, the appeal of the Revenue is partly allowed. Now, we take up appeals of Mr. Prakash H. Savla (assessee's appeal) ITA No. 1754/Mum/2011 for the assessment year 2008-09 23. Ground No. 1 : In this ground the assessee has challenged the action of the learned Co .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

thing to do with this document. But the Assessing Officer made addition of the same. 24.1. Being aggrieved, the assessee contested the matter before the learned Commissioner of Income-tax (Appeals) wherein the assessee made detailed submissions reiterating its stand but the learned Commissioner of Income-tax (Appeals) did not agree with the submission of the assessee on the ground that the assessee failed to produce Mr. Arunbhai before the Assessing Officer for his examination and also failed to .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

t the income offered. 24.3. On the other hand, the learned Commissioner of Income-tax- Departmental representative has opposed the submissions made by the learned counsel and submitted that the assessee did not bring on record any evidence in support of its claim and he placed reliance on the orders of lower authorities. 24.4. We have heard both the sides and gone through the material placed before us. It is noted by us that following scribbling has been made on page 16 of the aforesaid annexure .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

efforts to contact Mr. Arunbhai. It has not even been mentioned in the assessment order that whether he asked the asses see to produce Mr. Arunbhai. It is not even coming out that whether this amount has been received or given or whether this amount shall be received or shall be given. Whether it is income or expense ? Nothing is coming out from the perusal of this document, and, therefore, in our considered view, no addition could have been made simply relying on the basis of this document tha .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

₹ 50,000. 26.1. Brief facts are that during the course of assessment proceedings it was noted that the assessee has received various loans in different years including a loan of ₹ 50,000 received in the impugned year from Mr.Dhara M. Bahuva. The assessee submitted a copy of bank pass book in support of identity and financial capacity and genuineness of the loan. The Assessing Officer was not satisfied and, therefore, addition was made. Before the learned Commissioner of Income-tax (A .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

nuineness of the transactions. The confirmations and the bank pass book of the creditors was filed before the Assessing Officer but it was not accepted with the argument that the creditors were not having permanent account number because they were not Income-tax assessees. On the other hand, the authorised representative of the appellant has submitted that the loans received were disclosed in the Income-tax returns filed before the search operation. No incriminating document was found and seized .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

cheque debited in this account. Only argument of the Assessing Officer that the creditor is not the Income-tax assessee and having no permanent account number cannot be taken the single criteria for making disallowance. Keeping in view these facts and circumstances, it is held that the Assessing Officer has erred in making disallowance of ₹ 50,000. Thus, the addition made is deleted and the ground of appeal is allowed. 26.2. It is noted that the learned Commissioner of Income-tax (Appeals .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

th the addition with regard to unexplained jewellery of ₹ 16,58,750 as unexplained investment. 27.1. The brief facts are that during the course of search, jewellery worth ₹ 31,29,480 was found as per annexure "3" of the panchnama. Out of this, diamond jewellery of ₹ 16,58,750 was seized. During the assess ment proceedings, the assessee submitted that the diamond jewellery which was found during the course of search was fully disclosed in the return and even the additi .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

matter before the learned Commissioner of Income-tax (Appeals) and filed detailed submission. The learned Commissioner of Income-tax (Appeals) was satisfied with the submissions of the assessee and, accordingly, he deleted the addition after recording the following detailed findings : "I have considered the submissions of the appellant, the order of the Assessing Officer and the facts of the case carefully, it is noticed that during the course of search jewellery of ₹ 31,29,480 was f .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

worth of ₹ 31,50,000 was declared under section 132(4) which covers the diamond jewellery worth of ₹ 16,58,750 found and seized during the course of search. This amount was duly declared in the return of income and tax was paid on it. This explanation was submitted before the Assessing Officer which was not accepted with the argument that the assessee could not submit item-wise tally of diamond jewellery worth of ₹ 16,58,750 found and seized during the search operation. I have .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ce the appellant has declared ₹ 31,50,000 on account of diamond jewellery based on the seized papers and taken the argument that the diamond jewellery found and seized of ₹ 16,58,750 is fully covered by this disclosure has to be accepted as there was no other diamond jewel lery found and seized during the course of search. The argument taken by the Assessing Officer that it was not tallied item-wise cannot be treated as logical conclusion because date-wise and valuation-wise the appe .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 

Advanced Search


Latest Notifications:

    Dated      Category

20-7-2017 Cus (NT)

20-7-2017 IT

20-7-2017 GST CESS Rate

19-7-2017 IT

19-7-2017 IT

18-7-2017 IT

18-7-2017 CE (NT)

18-7-2017 CE

18-7-2017 GST CESS Rate

15-7-2017 Kerala SGST

14-7-2017 Andhra Pradesh SGST

14-7-2017 Cus (NT)

14-7-2017 Cus

13-7-2017 Co. Law

13-7-2017 Co. Law

13-7-2017 ADD

13-7-2017 ADD

12-7-2017 Jammu & Kashmir SGST

12-7-2017 Gujarat SGST

12-7-2017 Gujarat SGST

More Notifications


Latest Circulars:

21-7-2017 Goods and Services Tax

20-7-2017 Goods and Services Tax

20-7-2017 Goods and Services Tax

19-7-2017 Goods and Services Tax

19-7-2017 Income Tax

18-7-2017 Customs

17-7-2017 Customs

14-7-2017 Income Tax

13-7-2017 Central Excise

13-7-2017 Customs

More Circulars



|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version