Dy.C.I.T.-4(1), Agra v. Sh. Vinod Kumar Garg, Agra

ITA 108/AGR/2010 | 2006-2007
Pronouncement Date: 25-11-2011 | Result: Dismissed

Appeal Details

RSA Number 10820314 RSA 2010
Assessee PAN AFPPK8604Q
Bench Agra
Appeal Number ITA 108/AGR/2010
Duration Of Justice 1 year(s) 7 month(s) 4 day(s)
Appellant Dy.C.I.T.-4(1), Agra
Respondent Sh. Vinod Kumar Garg, Agra
Appeal Type Income Tax Appeal
Pronouncement Date 25-11-2011
Appeal Filed By Department
Order Result Dismissed
Bench Allotted DB
Tribunal Order Date 25-11-2011
Date Of Final Hearing 23-11-2011
Next Hearing Date 23-11-2011
Assessment Year 2006-2007
Appeal Filed On 20-04-2010
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL AGRA BENCH AGRA BEFORE SHRI H.S. SIDHU JUDICIAL MEMBER AND SHRI B.P. JAIN ACCOUNTANT MEMBER ITA NO.108/AGR/2010 ASSESSMENT YEAR: 2006-07 DY. COMMISSIONER OF INCOME TAX 4(1) VS. SHRI VINOD KUMAR GARG AGRA. C/O. M/S V.K. BARTAN BHANDAR DAULAT RAM MARKET JOHRI BAZAR AGRA. (PAN: AFPPK 8604 Q). (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI A.K. SHARMA JR. D.R. RESPONDENT BY : SHRI K.C. AGARWAL ADVOCATE DATE OF HEARING : 23.11.2011 DATE OF PRONOUNCEMENT : 25.11.2011 ORDER PER BENCH : THIS APPEAL OF THE REVENUE ARISES FROM THE ORDER OF LD. CIT(A)-II AGRA DATED 27.01.2010 FOR THE ASSESSMENT YEAR 2006-07. 2. THE REVENUE HAS RAISED THE FOLLOWING GROUND OF A PPEAL :- 1. THAT THE LEARNED CIT(A) HAS ERRED IN LAW AND ON FACTS IN DELETING THE ADDITION OF RS.8 80 000/- WITHOUT APPR ECIATING THE FACTS OF THE CASE AND IGNORING THE FACT THAT THE A.O. HAS MA DE THIS ADDITION AFTER GIVING PROPER REASONING OF THE SAME IN THE BO DY OF THE ORDER. ITA NO.108/AGR/2010 A.Y. 2006-07 2 2. THAT THE LEARNED CIT(A) HAS ERRED IN LAW AND ON FACTS IN RELYING UPON THE MANAGED PERSONAL SET OF BOOKS OF A CCOUNT OF THE ASSESSEE THOUGH THE SAME CANNOT BE RELIED UPON BECA USE THE SAME DOES NOT CONTAIN THE DETAILS OF THE TRANSACTION NOT ED IN ANNEXURE 14 AS ACCEPTED BY THE ASSESS IN HIS REPLY DATED 13-10- 08 3. THAT THE LEARNED CIT(A) HAS ERRED IN DELETING TH E ADDITION OF RS.2 15 000/- MADE BY THE A.O. BY INVOKING THE PROV ISIONS OF SECTION 69 OF IT ACT AS THE ASSESSEE HAS MADE UNEXPLAINED I NVESTMENT IN THE BUSINESS OF PURCHASES AND SALE OF LAND AND POTATOES ETC. AND NO EXPLANATION ABOUT THE NATURE AND SOUR OF INVESTMENT HAS BEEN OFFERED BY HIM. 4. THAT THE LEARNED CIT(A) HAS ERRED IN HOLDING THE AMOUNT OF SURRENDER AT RS.17 00 000/- IGNORING THE FACT THAT THE ASSESSEE HAS VOLUNTARILY SURRENDERED RS.22 00 000/- STATING THAT HE HAD ERRED THIS UNDISCLOSED INCOME AS A RESULT OF TRANSACTIONS RECO RDED IN ANNEXURE A-14. 5. THE ODER OF THE LEARNED CIT(A) DESERVES TO BE VA CATED AND THAT OF THE ASSESSING OFFICERS BE RESTORED. 6. THAT THE APPELLANT CRAVE LEAVE TO ADD OR ALTER A NY OR MORE GROUND OR GROUNDS OF APPEAL AS MAY BE DEEMED FIT TH E TIME OF HEARING OF APPEAL. 3. THE BRIEF FACTS IN ALL THE GROUNDS RAISED BY THE REVENUE AS PER THE A.O.S ORDER AT PAGE NOS.1 & 2 ARE REPRODUCED AS UNDER FOR THE SAKE OF CONVENIENCE :- DURING THE SURVEY PROCEEDINGS A SMALL RED DIARY WAS FOUND FROM THE POSSESSION OF SHRI VINOD GARG. THIS DIARY WAS MARKED AS ANNEXURE A-14. IN THIS DIARY HE HAS RECORDED THE TRANSACTIONS OF SALE PURCHASE OF LAND AND DEALING I N ARAT TRANSACTIONS ETC. WHEN ASKED TO EXPLAIN THE ENTRIES OF THIS DIARY SHRIVIONOD GARG IN HIS ST ATEMENT HAS ADMITTED THAT HE HAS EARNED AN INCOME OF RS.22 LACS ON VARIOUS TRANSACTIONS RELATE D TO SALE PURCHASE OF LAND POTATO ETC. HE OFFERED THIS INCOME FOR TAXATION IN HIS HAND. HOWEV ER ASSESSEE HAS SURRENDERED RS.17 LAKH IN HIS RETURN OF INCOME AND NOT RS.22LAKH AS STARTED BY H IM DURING THE SURVEY PROCEEDINGS AND SAME IS ALSO MENTIONED IN THE REPORT OF ADIT CONCERNED. THE ASSESSEE HAS ALSO SUBMITTED THE WORKING BY WHICH HE ARRIVED AT THE FIGURE OFRS.17LAKH. THE ASS ESSEE HAS CALCULATED TOTAL PEAK OF ITA NO.108/AGR/2010 A.Y. 2006-07 3 RS.15 15 000/- AND THEREAFTER ADDED BACK RS.4LAKH R ECEIVED FROM BRANCH OF V.K.BARTAN BHANDAR ON 23.12.2005 AND REDUCED THE AMOUNT OFRS.2 15 000/ - AND CALCULATED TOTAL AMOUNT OF RS.17 LAKH AS HIS UNDISCLOSED INCOME. I HAVE GONE THROUGH THE SUBMISSION OF THE ASSESSEE AND DISCUSSION WAS ALSO MADE WITH LD.COUNSEL AND THE AS SESSEE SHRI VINOD KUMAR AND AFTER PROPER APPRECIATION OF ANNEXURE A-14 THE WORKING OF PEAK I S AS UNDER:- DATE RECEIPTS PAYMENTS BALANCE NARRATION ADDITION/R EMAKES 01.04.05 15000 15000 OPENING BALANCE SEC.69 01.10.05 200 000 (-) 185000 UNDISCLOSED INVESTMENT SEC.69 15.10.05 750000 565000 17.10.05 150000 415000 30.10.05 600000 1015000 05.11.05 450000 14 55 000 19.11.05 200000 1665000 PEAK INVESTMENT 22.11.05 1000000 665000 30.11.05 600000 1265000 20.12.05 50000 1315000 THE PEAK AMOUNT OF RS.16 65 000/-. AS REGARDS OPEN ING BALANCE OF RS.15 000/- AND RS.2 00 000/- INTRODUCED ON 01.10.2005 FROM UNDISCL OSED SOURCES THE SAME IS REQUIRED TO BE ADDED TO THE RETURN OF INCOME OF THE ASSESSEE. THER EFORE RS.2 15 000/- WILL ALSO BE ADDED TO THE INCOME OF THE ASSESSEE U/S 69. ASSESSEE HAS ALSO IN TRODUCED RS.4 LAKH IN THE BRANCH OF M/S V.K.BARTAN BHANDAR ON 01.12.2005 AND WHICH WAS RETU RN BACK ON 23.12.2005 AND WHICH IS ALSO LIABLE TO BE ADDED IN HIS RETURN OF INCOME. (SAME I S ALSO ADDED BY THE ASSESSEE HIMSELF ION HIS REPLY). SIMILARLY ANOTHER ENTRY OFRS.3 LAKH ON 21. 12.2005 IS OF SIMILAR NATURE WHICH WAS ALSO DEPOSITED IN THE BRANCH OFFICE OF M/S V.K.BARTAN BH ANDAR THE SAME IS ALSO REQUIRED TO BE ADDED IN HIS RETURNED INCOME. THEREFORE THE TOTAL INCOME AS PER ANNEXURE A-14 IS AS UNDER:- 1. PEAK CREDIT: RS. 16 65 000/- 2. UNDISCLOSED INVESTMENT RS. 2 15 000/- 3. SEPARATE TWO ENTRIES AS RS. (4 00 000+ 3 00 0 00) DISCUSSED ABOVE = 7 00 000/- TOTAL RS. 25 80 000/- ASSESSEE HAD SURRENDERED INCOME UNDER THE HEAD INC OME FROM OTHER SOURCES ATRS.17 00 000/-. THEREFORE TOTAL ADDITION RS.8 80 000/-( 2580000-1700000) IS BEING MADE TO THE INCOME OF THE ASSESSEE I.E.2 15 000/- U/S 69 AN D REMAINING RS.6 65 000/- AS INCOME FROM OTHER SOURCES. ITA NO.108/AGR/2010 A.Y. 2006-07 4 IN VIEW OF THE ABOVE DISCUSSION THE INCOME OF THE ASSESSEE IS COMPUTED AS UNDER:- INCOME AS PER RETURN RS. 20 65 174/- ADD: ADDITION U/S 69 AS DISCUSSED ABOVE RS. 2 15 000/- ADDITION UNDER INCOME FROM OTHER SOURCES RS. 6 65 000/- TOTAL RS. 29 45 174/- --------------------------------- OR RS. 29 45 170/- 4. THE LD. CIT(A) VIDE PARAGRAPH NO.2.5 OF HIS ORDE R DELETED THE ADDITION FOR THE REASONS THAT ALL THE ENTRIES IN ANNXURE-A-14 AN D CREDIT ENTRIES ADDED BY ASSESSING OFFICER ARE DULY REFLECTED IN THE ASSESSE ES PERSONAL BOOKS OF ACCOUNT AND BALANCE SHEET. THE PERSONAL BOOKS OF ACCOUNT R EPRESENTS THE CASH FLOW OF THE ENTIRE YEAR OF THE ASSESSEE OF THE ENTIRE FINANCIAL TRANSACTION AS THE SURRENDER OF RS.17 LACS MADE BY THE ASSESSEE COVERS ALL THE FINA NCIAL TRANSACTIONS INCLUDING ANNEXURE-14 AND OTHER ENTRIES POINTED B THE ASSESSI NG OFFICER. IN ADDITION IT WAS ALSO FOUND THAT INDIVIDUALLY FOUR CREDIT ENTRIES PO INTED OUT BY THE ASSESSING OFFICER ARE ALSO FULLY EXPLAINED WITH REFERENCE TO THE AVAI LABILITY OF CASH IN THE CASHBOOK AND THE WITHDRAWALS OF RS 2 LACS FROM THE PERSONAL IMPREST ACCOUNT IN THE FIRMS BOOKS IN JULY. 2005 AND ALSO ENTRIES OF RS.4 LACS A ND RS.3 LACS FROM THE SURRENDER OF RS.17 LAKH MADE ON THE BASIS OF PEAK INVESTMENT MADE BY THE ASSESSEE. HE FURTHER OBSERVED VIDE PARAGRAPH 2.5 OF HIS ORDER TH AT THERE IS NO MERIT IN THE EXTRA ADDITION OF RS.2 15 000/- AND RS.6 65 000 MADE BY T HE A.O. AND ACCORDINGLY HE DELETED THE ADDITION. ITA NO.108/AGR/2010 A.Y. 2006-07 5 5. WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE FACTS OF THE CASE. WE CONCUR WITH THE VIEWS OF THE LD. CIT(A) THAT ALL TH E ENTRIES IN ANNEXURE-14 HAVE ALREADY BEEN REFLECTED IN THE BOOKS OF ACCOUNT AND THE EXTRA ADDITIONS MADE BY THE BY THE A.O. ARE ALSO INCLUDED THE SAID BOOKS OF ACC OUNT AND ARE THE PART OF SURRENDER OF RS.17 LACS. AS A MATTER OF FACT THE A.O. HAD COMPUTED THE PEAK AMOUNT OF RS.16 65 000/- AGAINST WHICH THE ASSESSEE HAS SURRENDERED RS.17 LACS WHICH HAS BEEN INCLUDED IN HIS INCOME DECLARED FOR THE IMPUGNED YEAR AND THEREFORE NO EXTRA ADDITION ON THIS ACCOUNT IS CAL LED FOR. THUS WE FIND NO INFIRMITY IN THE ORDER OF THE LD. CIT(A) WHO HAS RI GHTLY DELETED THE ADDITIONS MADE BY THE A.O. THUS ALL THE GROUNDS OF THE REVENUE A RE DISMISSED. 6. IN THE RESULT APPEAL OF THE REVENUE IN ITA NO.1 08/AGR/2010 IS DISMISSED. (ORDER PRONOUNCED IN THE OPEN COURT ON 25.11.2011). SD/- SD/- (H.S. SIDHU) (B.P. JAIN) JUDICIAL MEMBER ACCOUNTANT MEMBER DATE: 25 TH NOVEMBER 2011 PBN/* COPY OF THE ORDER FORWARDED TO: APPELLANT/RESPONDENT/CIT CONCERNED/CIT(APPEALS) CO NCERNED/D.R. ITAT AGRA BENCH AGRA/GUARD FILE. BY ORDER ASSISTANT REGISTRAR INCOME-TAX APPELLATE TRIBUNAL AGRA TRUE COPY