Mrs. Usha Lalsaheb More,, Satara v. Income-tax Officer,,

ITA 1707/PUN/2014 | 2008-2009
Pronouncement Date: 21-10-2016 | Result: Allowed

Appeal Details

RSA Number 170724514 RSA 2014
Assessee PAN AQTPM8837G
Bench Pune
Appeal Number ITA 1707/PUN/2014
Duration Of Justice 2 year(s) 1 month(s) 10 day(s)
Appellant Mrs. Usha Lalsaheb More,, Satara
Respondent Income-tax Officer,,
Appeal Type Income Tax Appeal
Pronouncement Date 21-10-2016
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted SMC
Tribunal Order Date 21-10-2016
Date Of Final Hearing 20-10-2016
Next Hearing Date 20-10-2016
Assessment Year 2008-2009
Appeal Filed On 11-09-2014
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH PUNE . . BEFORE SHRI R.K. PANDA AM . / ITA NO.1707/PN/2014 / ASSESSMENT YEAR : 2008-09 MRS. USHA LALSAHEB MORE PROP. SIYARAM JEWELLWERS AT POST VADUJ TAL : KHATAV DIST. SATARA PAN : AQTPM8837G . / APPELLANT V/S ITO WARD-3 SATARA . / RESPONDENT / APPELLANT BY : SHRI M.K. KULKARNI / RESPONDENT BY : SHRI HITENDRA NINAWE / ORDER PER R.K.PANDA AM : THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER DATED 26-12-2014 OF THE CIT(A)-III PUNE RELATING TO ASSESSMENT YEAR 2008-09. 2. THERE WAS A DELAY OF 129 DAYS IN FILING OF THIS APPEAL BY THE ASSESSEE FOR WHICH THE ASSESSEE HAS FILED A CONDONA TION PETITION ALONG WITH AN AFFIDAVIT EXPLAINING THE REASONS FOR DEL AY. AFTER CONSIDERING THE CONTENTS OF THE AFFIDAVIT AND AFTER HE ARING BOTH THE SIDES THE DELAY IN FILING OF THIS APPEAL IS CONDONED AND THE APPEAL IS ADMITTED FOR ADJUDICATION. 3. FACTS OF THE CASE IN BRIEF ARE THAT THE ASSESSEE IS AN INDIVIDUAL AND FILED HER RETURN OF INCOME ON 31-03-2009 DECLARING TOTAL INCOME OF RS.2 03 900/- AND AGRICULTURAL INCOME / DATE OF HEARING :20.10.2016 / DATE OF PRONOUNCEMENT:21.10.2016 2 ITA NO.1707/PN/2014 OF RS.48 650/-. IN THIS CASE A SURVEY U/S.133A OF THE I.T . ACT WAS CARRIED OUT ON 21-02-2008 DURING WHICH THE ASSESSE E HAD DECLARED ADDITIONAL INCOME OF RS.27 69 349/- THE DETAILS OF WHICH ARE AS UNDER : A. UNEXPLAINED INVESTMENT IN STOCK : RS.24 04 119/- B. UNACCOUNTED CASH : RS. 69 350/- C. UNEXPLAINED STOCK IN PAWNING BUSINESS : RS. 2 95 8 80/- -------------------- TOTAL : RS.27 69 349/- -------------------- 4. HOWEVER THE AO OBSERVED FROM THE RETURN OF INCOME FILE D FOR THE IMPUGNED ASSESSMENT YEAR ON 31-03-2009 THAT T HE ASSESSEE DID NOT INCLUDE THE ABOVE ADDITIONAL INCOME DECLA RED DURING THE COURSE OF SURVEY IN THE TOTAL INCOME. HE THERE FORE ASKED THE ASSESSEE TO EXPLAIN REGARDING THE NON-DISCLOSU RE OF THE ADDITIONAL INCOME DURING THE COURSE OF SURVEY. IT WAS EXPLAINED BY THE ASSESSEE THAT THE VALUATION OF STOCK WA S DONE ON THE BASIS OF GOLD RATE PREVAILING ON THE DATE OF SURV EY. A SEPARATE STATEMENT OF VALUATION WAS SUBMITTED WHERE THE RATES ARE ADOPTED AS PER BILLS WHICH COMES TO RS.32 95 756/- AS AGAINST RS.46 24 119/- DETERMINED BY THE SURVEY PARTY BY ADOPTING THE MARKET RATE. 5. SO FAR AS THE UNACCOUNTED CASH OF RS.69 350/- IS CONCERNED IT WAS SUBMITTED THAT DUE TO HEAVY CASH SALE S OF GOLD ORNAMENTS DURING MARRIAGE SEASON THE CASH WAS AVA ILABLE WHICH WAS SUBSEQUENTLY UTILIZED FOR PURCHASE OF NEW ORNAM ENTS AND THEREFORE THERE WAS NO EXCESS UNACCOUNTED CASH. SO FAR AS THE UNACCOUNTED INVESTMENT IN STOCK IN PAWNING BUSINESS OF RS.2 95 880/- IS CONCERNED IT WAS SUBMITTED THAT THE 3 ITA NO.1707/PN/2014 ORNAMENTS VALUING RS.2 95 880/- WAS BELONGING TO THE CLIENT S IN PAWNING BUSINESS. 6. HOWEVER THE AO REJECTED THE ABOVE CONTENTION OF TH E ASSESSEE AND MADE ADDITION OF RS.24 04 119/- ON ACCOUNT O F UNEXPLAINED INVESTMENT IN STOCK RS.69 330/- AS UNACCOUNTE D CASH AND RS.2 95 880/- ON ACCOUNT OF UNEXPLAINED STOCK IN PAWNING BUSINESS. IN APPEAL THE LD.CIT(A) UPHELD THE ADDITIO N MADE BY THE AO ON THE GROUND THAT ASSESSEE COULD NOT GIVE ANY EXPLANATION WITH SUPPORTING EVIDENCE THAT THERE WAS ANY OPENING STOCK OR THAT THE BILLS FOR PURCHASE OF GOLD AND S ILVER WERE AVAILABLE ON THE DATE OF SURVEY. 7. SO FAR AS THE OTHER 2 ADDITIONS ARE CONCERNED I.E. RS.69 350/- ON ACCOUNT OF EXCESS CASH AND RS.2 95 880/- O N ACCOUNT OF UNEXPLAINED STOCK IN PAWNING BUSINESS THE CI T(A) ALSO CONFIRMED THE ACTION OF THE AO IN ABSENCE OF ANY PROP ER EXPLANATION. 8. AGGRIEVED WITH SUCH ORDER OF THE CIT(A) THE ASSESSEE IS IN APPEAL BEFORE THE TRIBUNAL WITH THE FOLLOWING GROUNDS : (WITHOUT PREJUDICE TO EACH OTHER) 1. ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LA W THE LD. CIT(A) WAS NOT JUSTIFIED IN CONFIRMING THE ADDITI ONS OF RS. 24 04 119/- BEING THE EXCESS STOCK MADE BY THE A. O. SO LELY RELYING ON THE STATEMENT RECORDED IN SURVEY PROCEEDINGS U/S 133 A OF THE ACT. THE ADDITION BE DELETED. 2. ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LA W THE LD. CIT(A) WAS NOT JUSTIFIED IN CONFIRMING THE ADDIT IONS OF RS. 69 350/- BEING THE EXCESS CASH MADE BY THE A. O. SOLELY RELYING ON THE STATEMENT RECORDED IN SURVEY PROCEEDINGS U/S 133A O F THE ACT. THE ADDITION BE DELETED. 3. ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LA W THE LD. CIT(A) WAS NOT JUSTIFIED IN CONFIRMING THE ADDITI ONS OF RS.2 95 880/- BEING THE PAWNING BUSINESS MADE BY THE A. O. SOLELY 4 ITA NO.1707/PN/2014 RELYING ON THE STATEMENT RECORDED IN SURVEY PROCEEDIN GS U/S 133A OF THE ACT. THE ADDITION BE DELETED. 4. ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LA W THE LADY ASSESSEE IS COMING FROM DEEPER MOFUSSIL AREA. BEING NOT CONVERSANT WITH LEGAL ASPECTS COULD NOT DECIDE HOW TO PROCEED FURTHER. IN THE PROCESS THE FILING OF APPEAL IS DELAYE D BY 45 DAYS WHICH OUGHT TO HAVE BEEN FILED ON OR BEFORE 07-06-2 014. THE DETAILED AFFIDAVIT WILL BE FILED EXPLAINING THE DEL AY. THE DELAY BE CONDONED AND THE APPEAL BE ADMITTED FOR ADJUDICATIO N IN ACCORDANCE WITH THE PROVISIONS OF LAW. 5. ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LA W THE LEVY OF INTEREST U/S.234B AND 234C IS NOT JUSTIFIED. 6. THE APPELLANT CRAVES/LEAVE TO ADD AMEND OR ALTER ANY OF THE ABOVE GROUNDS OF APPEAL. 9. THE LD. COUNSEL FOR THE ASSESSEE REFERRING TO THE LETT ER ADDRESSED TO THE AO VIDE LETTER DATED 23-03-2009 SUBM ITTED THAT FULL DETAILS WERE GIVEN EXPLAINING THE COST PRICE OF THE JEWELLERY FOUND DURING THE COURSE OF SURVEY. THE SURVEY PARTY INSTEAD OF CONSIDERING THE COST PRICE HAS WRONGLY TAKEN THE MARKET PRICE OF GOLD ON THE DATE OF SURVEY. EVEN THOU GH FULL DETAILS WERE GIVEN BEFORE THE AO HE HAS NOT CONSIDERED THE SAME AND THE CIT(A) ON WRONG APPRECIATION OF FACTS HAS UPHELD T HE ADDITION MADE BY THE AO. HE SUBMITTED THAT SINCE THE AS SESSEE HAD GIVEN FULL DETAILS THE ADDITION MADE BY THE AO AND SUSTAINED BY THE CIT(A) SHOULD BE DELETED. 10. IN HIS ALTERNATE CONTENTION HE SUBMITTED THAT THE M ATTER MAY BE RESTORED TO THE FILE OF THE AO WITH A DIRECTION TO GIVE AN OPPORTUNITY TO THE ASSESSEE TO SUBSTANTIATE HIS CASE. 11. THE LD. DEPARTMENTAL REPRESENTATIVE ON THE OTHER HAND WHILE SUPPORTING THE ORDER OF THE CIT(A) SUBMITTED THAT HE HAS NO OBJECTION IF THE MATTER IS RESTORED TO THE FILE OF THE AO FOR FRESH ADJUDICATION. 5 ITA NO.1707/PN/2014 12. I HAVE CONSIDERED THE RIVAL ARGUMENTS MADE BY BOTH THE SIDES PERUSED THE ORDERS OF THE AO AND CIT(A) AND THE P APER BOOK FILED ON BEHALF OF THE ASSESSEE. I FIND THE ASSESSEE IS THE LEGAL HEIR OF A JEWELLERY SHOP NAMELY SIYARAM JEWELLERS WHEREBY TRADING AND MAKING OF GOLD JEWELLERY AND SILVER ARTICLES AS W ELL AS PAWNING OF ARTICLES IS CARRIED OUT. THE ASSESSEE HAS INHERITED THE BUSINESS ON THE DEMISE OF HER HUSBAND LATE MR. LALSAHEB MAHADEO MORE ON 18-05-2006. A SURVEY ACTION U/S.133A OF THE I.T. ACT WAS CARRIED OUT IN THE BUSINESS OF THE ASSESSEE ON 21-02-2008 DURING WHICH THE ASSESSEE MADE DECLARATION OF ADDITIONAL INCOME AT RS.27 69 349/- THE DETAILS OF WHICH ARE ALREADY GIVEN IN THE PRECEDING PARAGRAPH NO.3 . HOWEVER IN THE RETURN FILED ON 31-03-2009 THE ASSESSEE DID NOT HONOUR THE ADDITIONAL INCOME OF RS.27 69 349/- DECLARED DURING THE COURSE OF SURVEY AND FILED A RETURN DECLARING T OTAL INCOME AT RS.2 03 900/-. I FIND THE AO REJECTING THE VARIO US EXPLANATIONS GIVEN BY THE ASSESSEE DURING THE COURSE OF ASSESSMENT PROCEEDINGS MADE ADDITION OF THE ABOVE AMOUN T WHICH HAS BEEN UPHELD BY THE CIT(A). 13. IT IS THE GRIEVANCE OF THE ASSESSEE THAT THE SURVE Y PARTY HAD WRONGLY VALUED THE JEWELLERY AT MARKET PRICE INSTEAD OF VALUING THE SAME AT COST PRICE. ACCORDING TO HIM ALTHOUGH SUCH DETAILS WERE SUBMITTED DURING THE COURSE OF ASSESSM ENT PROCEEDINGS HOWEVER THE AO HAS IGNORED THE SAME AND T HE CIT(A) UPHELD THE ACTION OF THE AO ON THE GROUND THAT AS SESSEE HAS NOT GIVEN ANY EVIDENCE TO SUBSTANTIATE HER CASE. FROM THE DETAILS FURNISHED BY THE ASSESSEE IN THE PAPER BOOK I FIND THE ASSESSEE VIDE LETTER DATED 23-03-2009 HAS GIVEN CERTAIN DETAILS 6 ITA NO.1707/PN/2014 EXPLAINING THAT THERE IS NO DISCREPANCY IN THE STOCK. THE ASSESSEE HAS ALSO GIVEN THE RECONCILIATION IN THE SAID LETTE R WHICH READS AS UNDER : IT HAS BEEN MADE CLEAR ABOVE THAT THE VALUATION OF THE STOCK WAS DONE ON THE BASIS OF GOLD RATES PREVAILING ON 21-02-20 08. THE SEPARATE STATEMENT OF VALUATION IS ENCLOSED WHERE RAT ES ARE ADOPTED AS PER BILLS AVAILABLE THE VALUE OF WHICH NOW COMES TO RS.32 95 756=79 (35 91 636=79) PLEDGED AMOUNT OF RS.2 95 880/- = RS.32 95 756=79). THIS IS FURTHER ADJU STMENT ACCEPTED BY THE SURVEY PARTY AS UNDER : VALUATION RS.32 95 751=79 LESS : RS.15 00 000=00 ----------------------- RS.17 95 752=79 LESS : OPENING STOCK RS.18 22 145=00 SO NO DEFICIT/SURPLUS IN STOCK VALUATION ALTERNATIVELY 1) OPENING STOCK RS.18 22 145 2) ADD : PURCHASES RS.24 74 808 -------------------- RS.42 96 953 3) SALES 17 16 008 LESS :GP 21% 3 60 161 --------------- RS.13 55 646 -------------------- RS.29 41 307 ACTUAL STOCK RS.32 95 756 (35 91 636/- - PLEDGED ORNAMENTS 2 95 880/- = 32 95 756/-) SINCE THERE IS NO DISCREPANCY IN STOCK VALUATION THE D ECLARATION WAS WRONG AND NOT NECESSARY TO DECLARE IT AS INCOME AND PAY TAX ON IT. THE RETRACTION IS FOR SUFFICIENT REASONS. 14. CONSIDERING THE TOTALITY OF THE FACTS OF THE CASE AND IN THE INTEREST OF JUSTICE I DEEM IT PROPER TO RESTORE THE ISSU E TO THE FILE OF THE AO WITH A DIRECTION TO GIVE ONE MORE OPPORTUNITY TO THE ASSESSEE TO SUBSTANTIATE HER CASE WITH EVIDENCE RE GARDING PURCHASE OF ORNAMENTS WITH SUPPORTING DETAILS WHICH ARE FOU ND DURING THE COURSE OF SURVEY FOR THE PURPOSE OF CORRECT VALUATION 7 ITA NO.1707/PN/2014 OF THE STOCK ON THE DATE OF SURVEY. THE AO IS ALSO DIREC TED TO GIVE ONE MORE OPPORTUNITY TO THE ASSESSEE TO SUBSTANT IATE THE UNACCOUNTED CASH AND UNEXPLAINED STOCK IN PAWNING BUSINE SS. THE GROUNDS RAISED BY THE ASSESSEE ARE ACCORDINGLY ALLO WED FOR STATISTICAL PURPOSES. 15. IN THE RESULT THE APPEAL FILED BY THE ASSESSEE IS ALLOWE D FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 21-10-2016. SD/- ( R.K. PANDA ) ACCOUNTANT MEMBER PUNE ; DATED : 21 ST OCTOBER 2016. '# $# / COPY OF THE ORDER FORWARDED TO : / BY ORDER /// // $ % / TRUE COPY // // TRUE COPY // &' % * / SR. PRIVATE SECRETARY * / ITAT PUNE 1. / THE APPELLANT 2. / THE RESPONDENT 3. THE CIT (A) - III PUNE 4. THE CIT- III PUNE 5. $ %%* * SMC BENCH / DR ITAT SMC BENCH PUNE; 6. 2 / GUARD FILE.