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Shri Bhaidas Daulat Kapure Versus The Income Tax Officer, Ward 3 (1) , Dhule

2016 (5) TMI 1133 - ITAT PUNE

Reopening of assessment - addition made in the hands of assessee in respect of cash and stock of wine - Held that:- Under the provisions of the Act itself, it is provided that where the assessee has failed to furnish return of income for any of the assessment years, then the Assessing Officer, as per reasons recorded in this behalf can initiate proceedings of assessment under section 147 of the Act. Accordingly, we find no merit in the claim of assessee in this regard and the same is dismissed. .....

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dence of leasing out of the agricultural land by the owners of land and in the absence of same, the claim of assessee was not accepted by the Assessing Officer. Similarly, with regard to sale of equipment, the assessee failed to furnish complete evidence and the said claim was also not accepted.

The assessee had fabricated various documents produced before the Assessing Officer and the assessee claims to have accumulated cash from sale of agricultural produce as back as 11.05.2009 (Rs .....

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not explained the source of cash out of agricultural income and loans / advances. The CIT(A) has held that the cash was out of sale of liquor and has confirmed the addition in the hands of assessee. The learned Authorized Representative for the assessee has failed to controvert the findings of authorities below and in the absence of any explanation furnished in this regard or any evidence to prove its stand, we find no merit in the claim of assessee - Decided against assessee - ITA No. 274/PN/20 .....

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s of the case and in law the Ld. CIT(A) Nashik erred in not considering the validity of notice under S. 148 of the Act resulting into re-assessment u/s 147 of the Act. The notice issued and served u/s 148 is bad in law and without jurisdiction. The assessment be quashed. 2) On the facts and circumstances of the case and in law the facts of the case show that the cash of ₹ 9,20,000/- was seized by the police department from appellant's House. Subsequently the DIT issued warrant of autho .....

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t has become illegal and without jurisdiction. It be held accordingly. 3) On the facts and circumstances of the case and in law the Ld. CIT(A) was not justified in confirming the assessment made by the A.O. making addition of seized cash by police of ₹ 9,20,080/- and stock of ₹ 12,220/- u/s 148 r.w.s 143(3) of the Act. The addition be deleted. 3. Before addressing the merits of issue raised in the present appeal, we would like to refer to the proceedings of the case. The appeal was f .....

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ppointed date of hearing i.e. on 04.05.2016, none appeared on behalf of assessee nor any application was moved for adjournment. It may be pointed out that the case was being handled by Shri M.K. Kulkarni, who had appeared on earlier dates and he also appeared before us in other appeals and sought adjournment on 04.05.2016. However, with regard to present appeal, no mention was made by the learned Authorized Representative for the assessee and even on second call, none appeared on behalf of asses .....

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of wine of ₹ 12,220/-. 5. Briefly, in the facts of the case, the assessee was an individual and claims that it had earned income from agriculture. The assessee had not furnished any return of income for the year under consideration. The Assessing Officer received a letter from Income Tax (Investigation), dated 20.10.2011 for taking necessary action in the case of assessee as the Police Department has seized cash of ₹ 9,20,000/- from assessee s house being unauthorized sale of wine. T .....

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02.12.2009, the said cash was deposited in a Nationalized bank. The JMFC, Shirpur further passed an order dated 03.05.2010 as mentioned in the letter dated 06.09.2010 received from ITO (Inv), Nashik that the Income Tax Department could conduct an independent enquiry about the said amount and it was not necessary to handover the cash to the Income Tax Department. The Assessing Officer further mentioned in the said letter that as per provisions of section 153B(2)(b) of the Act, where warrant under .....

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ke appropriate action. Subsequent thereto, the Assessing Officer recorded reasons for reopening the assessment and issued notice under section 148 of the Act to the assessee and his wife Smt. Pramilabai Bhaidas Kapure to verify the source of cash seized of ₹ 9,20,080/- where both the persons had not filed returns of income. In response to the notice issued under section 148 of the Act, the assessee furnished return of income declaring Nil income and agricultural income of ₹ 2,73,275/ .....

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9 and ₹ 2,43,000/- on 23.11.2009 from bank withdrawals and he also stated that there was no concrete evidence regarding sum given to the assessee. On verification of pass book furnished by the assessee, the Assessing Officer noted that there were only withdrawals but there was no corresponding entries which prove that any sum was given to the assessee by Shri Rajput. Considering the above, explanation of assessee to the extent of ₹ 4,43,000/- was rejected. Further, the assessee claim .....

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gricultural land of Shri Santosh T. Ahire and on verification of document i.e. agreement between the two, the Assessing Officer noted that the agreement was made simply on paper taking the signatures of two punchas. The assessee in turn, agreed that the agreement was not on stamp paper and not authentic. The said person Shri Ahire was also summoned for recording of statement and the assessee submitted that because of dispute between the two, he could not be produced. The plea thus, of the assess .....

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ample of the wine was taken. The wife of assessee stated that the cash was collected out of sale of wine and the said sale was made by the assessee without licence. The Assessing Officer noted that all these facts mentioned by the assessee were in Punchanama. On the basis of same, the statement of assessee was recorded and in reply to question Nos.6, 7, 8 and 9, he stated that there was no concrete evidence to prove that the agricultural land was cultivated by him and further, he was also confro .....

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Officer in the absence of any evidence produced by the assessee of the source out of agricultural income and the loans / advances. 7. The assessee is in appeal against the order of CIT(A). 8. The issue in ground of appeal No.1 raised by the assessee is against validity of re-assessment proceedings under section 147 / 148 of the Act. The assessee for the year under consideration had not furnished any return of income and after the police raid on the premises of assessee, cash of ₹ 9,20,080/ .....

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ome for any of the assessment years, then the Assessing Officer, as per reasons recorded in this behalf can initiate proceedings of assessment under section 147 of the Act. Accordingly, we find no merit in the claim of assessee in this regard and the same is dismissed. 10. Now, coming to merits of the issue i.e. addition made in the hands of assessee in respect of cash of ₹ 9,20,080/- and stock of wine of ₹ 12,220/-. In the facts of the present case, search of the premises of assesse .....

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ssessee and the assessee was asked to justify the sources of said cash of ₹ 9,20,080/-. The claim of assessee before the Assessing Officer was that it had received sum of ₹ 4,43,000/- on account of sale of truck / mini bus and in respect of balance, it claimed that it was cultivating the land of two different persons and receiving agricultural income. However, the assessee failed to establish its claim with any evidence. The statements of persons were recorded, which were at variance .....

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