The ITO, Ward-9(3),, Surat v. Late Shri Manubhai Dahyabhai, Surat

ITA 4473/AHD/2007 | 1995-1996
Pronouncement Date: 27-08-2010 | Result: Dismissed

Appeal Details

RSA Number 447320514 RSA 2007
Assessee PAN AHTPB5940Q
Bench Ahmedabad
Appeal Number ITA 4473/AHD/2007
Duration Of Justice 2 year(s) 8 month(s) 7 day(s)
Appellant The ITO, Ward-9(3),, Surat
Respondent Late Shri Manubhai Dahyabhai, Surat
Appeal Type Income Tax Appeal
Pronouncement Date 27-08-2010
Appeal Filed By Department
Order Result Dismissed
Bench Allotted D
Tribunal Order Date 27-08-2010
Date Of Final Hearing 05-08-2010
Next Hearing Date 05-08-2010
Assessment Year 1995-1996
Appeal Filed On 20-12-2007
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCH 'D' BEFORE SHRI MUKUL SHRAWAT JM & SHRI A N PAHUJA AM ITA NO.4473/AHD/2007 WITH C O NO.26/AHD/2008 (ASSESSMENT YEAR:-1995-96) INCOME-TAX OFFICER WARD- 9(3) ROOM NO. 420 4 TH FLOOR AAYAKAR BHAVAN MAJURA GATE SURAT V/S SMT. KASTURBEN MANUBHAI BALDHA LEGAL HEIR OF LATE SHRI MANUBHAI DAHYABHAI PITHWADIWALA BUNGLOW NO. 11 & 12 ISHWAR KRUPA SOCIETY TRIKAM NAGAR LH ROAD SURAT [PAN: AHTPB 5940 Q] [APPELLANT] [RESPONDENT] REVENUE BY :- SHRI SUDHANSU S JHA DR ASSESSEE BY:- SHRI R N VEPARI AR O R D E R A N PAHUJA: THIS APPEAL BY THE REVENUE AND CROSS OBJECTION BY THE ASSESSEE DIRECTED AGAINST AN ORDER DATED 26-09-2007 OF THE LD.CIT(APPEALS)-V SURAT RAISE THE FOLLOWING GROUN DS:- BY THE REVENUE: ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW THE LD. CIT(A) HAS ERRED IN DELETING THE ADDITION OF RS.48 00 000/- OUT OF RS.51 00 000/- AS ADDED BY THE AO U/S 69C OF THE AC T FOR UNEXPLAINED MARRIAGE EXPENSES. BY THE ASSESSEE: THE LEARNED CIT(A) ERRED IN RETAINING A SUM OF RS. 3 00 000/- IN RESPECT OF ADDITION FOR MARRIAGE EXPENSES WHEN IN THE BACKGROU ND OF THE ACTUAL EXPENSES INCURRED AND THE SOURCE OF AGRICULTURE INC OME THERE WAS NO BASIS FOR RETAINING ANY ADDITION. 2 FACTS IN BRIEF AS PER RELEVANT ORDERS ARE THAT A SURVEY U/S 133A(5) OF THE INCOME-TAX ACT 1961 [HEREINAFTER RE FERRED TO AS THE ACT] WAS CARRIED OUT BY THE ASSISTANT DIRECTOR OF INCOME-TAX (INV.) ITA NO.4473/AHD/2007 WITH CO NO.26/AHD/2008 2 BHAVNAGAR IN RESPECT OF MARRIAGE CEREMONY OF SHRI BHARATKUMAR THE ELDER SON OF THE ASSESSEE. THE MARRIAGE CEREMON Y WAS HELD ON 8-12-1994 AS WELL AS ON SUBSEQUENT DAYS AT VILLAGE PITHAWADI TALUKA: SAVARKUNDLA DISTRICT: AMRELI. ON RECEIPT O F SURVEY REPORT A NOTICE U/S 142(1) OF THE ACT WAS SERVED UPON THE AS SESSEE ON 29-07- 96. HOWEVER THE ASSESSEE DID NOT FILE ANY RETURN I N RESPONSE TO THE SAID NOTICE NOR SUBMITTED ANY DETAILS AS SPECIFIED IN THE NOTICE DESPITE REPEATED REQUESTS. IN THESE CIRCUMSTANCES THE ASSESSMENT WAS FINALIZED U/S 144 OF THE ACT VIDE ORDER DATED 31-03-1998 ON THE BASIS OF INFORMATION AVAILABLE ON RECORD RESULTIN G IN AN ADDITION OF RS.51 LACS UNDER SECTION 69C OF THE ACT ON ACCOUNT OF UNEXPLAINED EXPENDITURE INCURRED ON THE MARRIAGE CEREMONY OF SH RI BHARATKUMAR. 2.1. ON APPEAL THE LEARNED CIT(A) UPHELD THE FINDINGS O F THE AO. 2.2. ON FURTHER APPEAL THE ITAT VIDE ORDER DATED 0 7-07-2000 IN ITA NO.1181/AHD/1999 SET ASIDE THE ASSESSMENT WITH THE DIRECTIONS TO THE AO TO ISSUE NOTICE TO ALL THE LEGAL HEIRS OF TH E DECEASED ASSESSEE AND MAKE FRESH ASSESSMENT AFTER PROVIDING REASONABLE AND ADEQUATE OPPORTUNITY OF BEING HEARD. IN TERMS O F THESE DIRECTIONS OF THE ITAT THOUGH NOTICE U/S 142(1) OF THE ACT WERE SERVED UPON THE LEGAL HEIRS OF THE ASSESSEE ON VARI OUS DATES PROVIDING THEM SUFFICIENT OPPORTUNITY THE SAID LEG AL HEIRS DID NOT COMPLY WITH ANY OF THE NOTICE. MEANWHILE ON AN APP LICATION FILED BY THE ASSESSEE UNDER SECTION 144-A OF THE ACT THE JOINT CIT DIRECTED THE AO VIDE LETTER DATED 08-03-2002 TO GIVE PHOTOCO PIES OF ALL THE MAGAZINE REPORTS NEWSPAPER REPORTS AND WEDDING CA RDS ETC AVAILABLE ON RECORD TO THE ASSESSEE ALONG WITH TH E BASIS FOR ADDITION OF RS.51 LACS . ACCORDINGLY COPIES OF TH ESE DOCUMENTS WERE GIVEN TO SHRI KIRIT MANDIRWALA THE AUTHORIZED REPRESENTATIVE OF THE ASSESSEE WHILE THE COPIES OF THE STATEMENT RECORDED BY THE INVESTIGATION WING BHAVNAGAR HAD ALREADY BEEN GI VEN TO HIM. ITA NO.4473/AHD/2007 WITH CO NO.26/AHD/2008 3 THOUGH THE BASIS OF ADDITION WAS SUPPLIED TO THE LE GAL HEIRS VIDE LETTER DATED 19-03-1998 IN ORDER TO COMPLY WITH TH E DIRECTIONS OF THE JOINT CIT THE SAME WAS AGAIN SUPPLIED. EVEN THEN THE LEGAL HEIRS OF ASSESSEE DID NOT COMPLY WITH ANY OF THE NOTICES ISSUED TO THEM. DESPITE SHOWCAUSE NOTICES DATED 25-01-2002 AND 13-0 3-2002 NONE OF THE LEGAL HEIRS RESPONDED. SINCE THE LEGAL HEIRS DID NOT FURNISH ANY EVIDENCE OF AGRICULTURAL INCOME THE AO REJECTE D THE PLEA OF THE ASSESSEE AND ACCORDINGLY REITERATED THE ADDITION OF RS. 51 LACS U/S 69C OF THE ACT 2.3. ON APPEAL THE LD. CIT(A) REDUCED THE ADDITION BY RS.40 00 560/-. 2.4 ON FURTHER APPEAL BY THE REVENUE AND THE A SSSESSEE THE ITAT VIDE THEIR ORDER DATED 16.3.2004 IN ITA NO. 2 12/AHD/2003 SET- ASIDE THE ISSUES RAISED BY THE ASSESSEE AS WELL AS REVENUE TO THE FILE OF THE AO IN THE FOLLOWING TERMS: AFTER CONSIDERING THE SUBMISSIONS MADE BY THE LD. REPRESENTATIVE OF THE PARTIES AND AFTER GOING THROUGH THE ORDERS OF THE D EPARTMENTAL AUTHORITIES WE ARE OF THE VIEW THAT IT WOULD BE JUST AND PROPER TO SET ASIDE THE ORDER OF THE CIT(A) AND ASSESSING OFFICER AND RESTORE THE IS SUE BACK TO THE FILE OF ASSESSING OFFICER FOR PASSING DE NOVO ASSESSMENT OR DER. THE DEPARTMENT IS DIRECTED TO GIVE A COPY OF THE SURVEY REPORT TO THE ASSESSEE AND ASSESSEE IS DIRECTED TO EXTEND FULLEST COOPERATION AND WILL PRODUCE ALL THE REQUIRED DETAILS OF EXPENSES AND DOCUMENTS IF ANY. THE ASSESSEE WILL PRODUCE ALL THE CONCERNED PERSONS AS REQUIRED BY TH E ASSESSING OFFICER. AFTER EXAMINING THE CONCERNED PERSONS AND VERIFYING THE EXPENSE THE ASSESSING OFFICER SHOULD PROVIDE REASONABLE OPPORTU NITY TO THE ASSESSEE AND WILL PASS A FRESH ORDER IN ACCORDANCE WITH THE OF LAW. AT THE SAME TIME WE ALSO OBSERVE THAT THIS IS A THIRD TIME RESTORING THE MATTER TO THE FILE OF THE ASSESSING OFFICER AND THEREFORE IF THE ASSESS EE CHOOSES NOT TO APPEAR ASSESSING OFFICER THE AO IS AT LIBERTY TO P ASS THE ORDER ACCORDINGLY. 2.5 A MISCELLANEOUS APPLICATION MOVED BY THE ASSE SSEE AGAINST THE AFORESAID ORDER DATED 16-03-2004 WAS DISMISSED VIDE ORDER DATED 19-01-2005 IN MA NO.160/AHD/2004. ITA NO.4473/AHD/2007 WITH CO NO.26/AHD/2008 4 2.6 FOLLOWING THE AFORESAID DIRECTIONS OF THE ITA T A COPY OF SURVEY REPORT WAS GIVEN TO SHRI R N VEPARI THE LD . AR ON BEHALF OF THE ASSESSEE ON 13-01-2006. IN ORDER TO PROVIDE FRE SH OPPORTUNITY NOTICE U/S 143(2) AND 142(1) DATED 16-01-2006 WERE ISSUED TO THE LEGAL HEIRS OF THE ASSESSEE IN THE FOLLOWING TERMS: 2 IN THIS CASE YOUR ATTENTION IS INVITED TO THE F OLLOWING CHRONOLOGICAL EVENTS. A SURVEY PROCEEDINGS UNDER SE CTION 133A(5) WERE CONDUCTED BY THE INVESTIGATION WING B HAVNAGAR IN CONNECTION WITH THE MARRIAGE CEREMONY OF SHRI BH ARATKUMAR ON 08-12-1994. ACCORDINGLY THE ORIGINAL ASSESSMENT FOR THE AY. 1995-96 WAS COMPLETED BY PASSING ORDER UNDER SE CTION 144 OF THE ACT DATED 31-03-1998 THEREBY MAKING AN ADDITION OF RS.51 00 000/-. APPEAL FILED AGAINST THIS ORDER WAS DISMISSED VIDE ORDER DATED 10-03-1999 BY THE CIT(A)-I SURAT. YOUR SECOND APPEAL BEFORE THE HON'BLE ITAT WAS SET-ASIDE VIDE ORDER IN ITA NO. 1181 DATED 07-07-2000. AGAIN FRESH ASSESSMENT WAS COMPLETED U/S 144 R.W.S. 250 OF THE ACT MAKING AN ADDITION OF RS.51 50 000/-. AGGRIEVED BY THE ABOVE ORDER YOU HAD FILED APPEAL BEFORE THE CIT(A)-VI S URAT. THE LEARNED CIT(A)-VI SURAT VIDE HER ORDER NO. CAS-VI/ 5/2002-03 DATED 03-12-2002 HAD PARTLY ALLOWED THE APPEAL AND GRANTED A RELIEF OF RS.40 00 560/-. AGAINST THE ORDER OF THE CIT (A)-VI SURAT DATED 03-12-2002 BOTH YOU AND THE REVENUE HA D FILED APPEALS BEFORE THE HON'BLE IT AT AHMEDABAD. THE HO N'BLE ITAT BENCH C' IN ITA NO. 212/AHD/2003 DATED 16-03 -2004 HAD AGAIN SET-ASIDE THE ISSUES RAISED BY YOU AS WEL L AS REVENUE TO THE FILE OF THE ASSESSING OFFICER. ALSO MISCELLANEOUS APPLICATION MOVED BY YOU AGAINST THE HAT ORDER DATED 16-03-2004 WAS DISMISSED VIDE ORDER NO. MA N O. 160/AHD/2004 DATED 19-01-2005. 3. VIDE ORDER IN IT A NO. 212/AHD/2003 DATED 16-0 3-2004 THE HON'BLE ITAT DIRECTED THE ASSESSING OFFICER TO PASS THE ASSESSMENT ORDER DE NOVO THE RELEVANT PORTION OF W HICH IS REPRODUCED AS UNDER: 'AFTER CONSIDERING THE SUBMISSIONS MADE BY THE LA REPRESENTATIVE OF THE PARTIES AND AFTER GOING THROU GH THE ORDERS OF THE DEPARTMENTAL AUTHORITIES WE ARE OF T HE VIEW THAT IT WOULD BE JUST AND PROPER TO SET ASIDE THE ORDER OF THE CIT(A) AND ASSESSING OFFICER AND RESTO RE THE ISSUE BACK TO THE FILE OF ASSESSING OFFICER FOR PAS SING DE NOVO ASSESSMENT ORDER. THE DEPARTMENT IS DIRECTED T O GIVE A COPY OF THE SURVEY REPORT TO THE ASSESSEE AN D ITA NO.4473/AHD/2007 WITH CO NO.26/AHD/2008 5 ASSESSEE IS DIRECTED TO EXTEND FATTEST COOPERATION AND WILL PRODUCE ALL THE REQUIRED DETAILS OF EXPENSES A ND DOCUMENTS IF ANY. THE ASSESSEE WILL PRODUCE ALL THE CONCERNED PERSONS AS REQUIRED BY THE ASSESSING OFFI CER. AFTER EXAMINING THE CONCERNED PERSONS AND VERIFYING THE EXPENSE THE ASSESSING OFFICER SHOULD PROVIDE REASONABLE OPPORTUNITY TO THE ASSESSEE AND WILL PAS S A FRESH ORDER IN ACCORDANCE WITH THE PROVISIONS OF LA W. AT THE SAME TIME WE ALSO OBSERVE THAT THIS IS A THIRD TIME RESTORING THE MATTER TO THE FILE OF THE ASSESSING O FFICER AND THEREFORE IF THE ASSESSEE CHOOSE NOT TO APPEA R BEFORE THE ASSESSING OFFICER THE ASSESSING OFFICER IS AT LIBERTY TO PASS THE ORDER ACCORDINGLY.' 4. AS DIRECTED BY THE HON'BLE 1TAT YOU ARE REQUEST ED TO KINDLY FURNISH DETAILS OF ALL EXPENSES WITH SUPPORT ING DOCUMENTARY EVIDENCES SUCH AS BILLS VOUCHERS AND T HE SOURCE THEREOF AS UNDER: SR NO. EXPENSES 1 INVITATION CARD 2 CATERING 3 MANDAP DECORATION SAMIYANA ETC. 4 LIGHT & DECORATION SOUND AND VIDEO EXP. 5 JEWELLERY GOLD ORNAMENTS SILVER ARTICLES CLOTH ES ETC. 6 EXPENDITURE ON OTHER ITEMS SUCH AS (A) EXPENDITURE FOR MUSICAL PARTY BY MAHESH & PARTY (B) HIRING OF BUSES CAMELS HORSES CARS HELICOPT ER ETC. (C) DANDIYA RAAS PROGRAMME LOK DAYRO AND OTHER ENTERTAINMENT PROGRAMMES ARRANTGED. (D) MUSIC BANK SECURITY GUARDS FIRE CRACKERS CLO THES ETC. 7 EXPENSES ON PHOTOGRAPHY ANY OTHER MISC. EXPENSES NOT INCLUDED IN ABOVE. IF YOU WANT TO PRODUCE ANY PERSON IN SUPPORT OF YOU R CLAIM IN RESPECT OF THE EXPENDITURE INCURRED AS ABOVE RELEVA NT TO THE MARRIAGE CEREMONY YOU ARE REQUESTED TO PRODUCE THE M ON 20- 02-2006 AT 5-30 PM. 5 YOU ALSO REQUESTED TO FURNISH THE DETAILS OF THE INCOME INCURRED BY LATE SHRI MANUBHAI D PITHVADIWALA SUCH AS DIAMOND DALALI AND COMMISSION INCOME ANY OTHER INC OME DURING THE CONCERNED YEAR. ITA NO.4473/AHD/2007 WITH CO NO.26/AHD/2008 6 6 COMPLETE POSTAL ADDRESS OF THE ALL THE LEGAL HEIR S OF LATE SHRI MANUBHAI D. PITHVADIWALA AS MENTIONED BELOW: (A) SMT. KASTURBEN MANUBHAI BALDHA (B) SHRI BHARATBHAI MANUBHAI BALDHA (C) SHRI BHAGIRATHBHAI MANUBHAI BALDHA (D) MS. RENUKABEN MANUBHAI BALDHA YOU ARE HEREBY REQUESTED TO SUBMIT THE ABOVE REQUIR ED INFORMATION / DOCUMENTS BEING CALLED FOR AND TO PRO DUCE THE BOOKS OF ACCOUNTS CALLED FOR U/S. 142(1) OF THE ACT ON 20-02- 2006 AT 5=30 PM. THE STATUTORY NOTICE U/S 142(1) OF THE IT. ACT IS ENCLOSED HEREWITH.' 2.7 MEANWHILE VIDE A LETTER DATED 17-02-2006 S HRI R. N. VEPARI THE LD. AR ON BEHALF OF THE ASSESSEE CONTENDED THA T THERE WERE NO BASIS OR EVIDENCE FOR THE ESTIMATION OF EXPENDITURE OF RS.51 LACS AND FURTHER SOUGHT A COPY OF THE INSPECTORS REPORT DAT ED 21-12-1994 IN ORDER LO KNOW THE BREAK-UP OF ESTIMATION OF RS.51 LAKHS APART FROM COPIES OF NEWS PAPER REPORTS AND WEEKLY MAGAZINE RE PORTS. HOWEVER THE AO POINTED OUT THAT A COPY OF THE FINA L SURVEY REPORT DATED 23-02-1996 CONTAINING THE BREAK-UP OF ESTIMA TE OF RS.51 LACS HAD ALREADY BEEN SUPPLIED TO THE ASSEESEE BESIDES C OPIES OF ALL THE NEWS PAPER REPORTS MAGAZINES ETC. SINCE THE ASSE SSEE CLAIMED EXPENSES AMOUNTING TO RS.12 39 188/- WITHOUT FURN ISHING COPY OF ANY OF THE BILLS OR OTHER SUPPORTING DOCUMENTARY E VIDENCES AND WITHOUT FURNISHING ANY EVIDENCE OF SOURCE OF EXPEND ITURE INCURRED ON ORNAMENTS WHILE AT THE TIME OF SURVEY THE ASSESSEE HAD GIVEN THE BREAK-UP MARRIAGE EXPENSES OF RS.14 07 000/- AND T HE LEGAL REPRESENTATIVES DID NOT RESPOND TO THE VARIOUS NOTI CES THE AO ISSUED A SHOW CAUSE NOTICE DATED 06-02-2006 TO THE LEGAL HEIRS OF THE ASSESSEE IN THE FOLLOWING TERMS: 2 IN THIS CONNECTION PLEASE REFER TO THE NOTICE U /S 143(2) OF THE ACT DATED 16-01-2006 AND NOTICE U/S 142(1) O F THE ACT ALONG WITH THE LETTER DATED 16-01-2006 ISSUED BY TH IS OFFICE IN RESPECT OF AY 1995-96. VIDE THE ABOVE NOTICE YOU W ERE REQUIRED TO ATTEND THE OFFICE OF THE UNDERSIGNED PE RSONALLY / ITA NO.4473/AHD/2007 WITH CO NO.26/AHD/2008 7 THROUGH YOUR AUTHORIZED REPRESENTATIVE AND FURNISH THE CERTAIN INFORMATION REQUIRED IN ORDER TO COMPLETE THE ASSE SSMENT PROCEEDINGS. 3 IN CONNECTION WITH THE ABOVE YOUR ATTENTION IS I NVITED TOWARDS THE LETTER SUBMITTED BY YOUR AUTHORIZED REP RESENTATIVE SHRI R N VEPARI DATED 17-02-2006 WHICH WAS RECEIVED IN THIS OFFICE ON 21-02-2006. 3.1 VIDE THE PARA-2 OF THE ABOVE LETTER IT WAS STAT ED THAT THE DETAILS OF THE EXPENSES SOUGHT FOR VIDE PARA-4 OF THIS LETTER DATED 16-01-2006 IS BEING GATHERED AND WILL BE GIVE N IN TEN DAYS. HOWEVER I REGRET TO INFORM YOU THAT THE SAME HAS NOT BEEN FURNISHED TILL THIS DATE. YOU ARE HEREBY ONCE AGAIN REITERATED THAT THE SAME MAY BE FURNISHED WITHIN 7 DAYS TO THIS OFFICE TO ENABLE IT TO COMPLETE THE- ASSESSMENT PROCEEDINGS. 3.2 VIDE THE PARA-4 OF THE ABOVE LETTER YOU WERE A LSO REQUESTED TO PRODUCE ANY SUCH PERSONS IN SUPPORT OF YOUR CLAIM IN RESPECT OF THE EXPENDITURE INCURRED AS ABO VE RELEVANT TO THE MARRIAGE CEREMONY ON 20-02-2006 AT 5-30 PM. HOWEVER I REGRET TO INFORM YOU THAT YOU HAVE NOT P RODUCED ANY SUCH PERSON AS ABOVE ON THE SPECIFIED DAY AT SP ECIFIED TIME AS PER ABOVE. YOU ARE HEREBY ONCE AGAIN REITERATED TO PRODUCE ANY SUCH PERSONS IN SUPPORT OF YOUR CLAIM IN RESPECT O F THE EXPENDITURE INCURRED AS ABOVE RELEVANT TO THE MARRI AGE CEREMONY ON 20-03-2006 AT 5-30 P. M. 3.3 VIDE THE PARA-5 OF THE ABOVE LETTER YOU WERE A LSO REQUESTED TO FURNISH THE DETAILS OF THE INCOME EARN ED BY LATE SHRI MANUBHAI D. PITHVADIWALA SUCH AS DIAMOND DALA LI AND COMMISSION INCOME ANY OTHER INCOME DURING THE CONC ERNED YEAR. HOWEVER I REGRET TO INFORM YOU THAT THE SAME HAS NOT BEEN FURNISHED TILL THIS DATE. YOU ARE HEREBY ONCE AGAIN REQUESTED THAT THE SAME M AY BE FURNISHED WITHIN 7 DAYS TO THIS OFFICE TO IT TO COMPLETE THE ASSESSMENT PROCEEDINGS. 4. YOUR ATTENTION IS HEREBY ALSO INVITED TOWARDS TH E LETTER SUBMITTED BY YOUR AUTHORIZED REPRESENTATIVE SHRI R N VEPARI DATED 19-01-2006 RECEIVED IN THIS OFFICE ON 20-01-2 006 AS WELL AS PARA-4 OF THE LETTER SUBMITTED BY YOUR AUTHORIZ ED REPRESENTATIVE SHRI R N VEPARI DATED 17-02-2006 REC EIVED IN ITA NO.4473/AHD/2007 WITH CO NO.26/AHD/2008 8 THIS OFFICE ON 21-01-2006 REQUESTING FOR COPIES OF VARIOUS LETTERS REPORTS ETC. AS MENTIONED THEREIN. IN THIS CONNECTION IT IS TO BE STATED THAT AS PER THE DIRECTION OF THE HONBLE ITAT VIDE ORDER IN ITA NO.212/AHD/2003 DATED 16- 03-2004 COPY OF THE SURVEY REPORT HAS ALREADY BEEN GIVEN TO YOUR AUTHORIZED REPRESENTATIVE SHRI R N VEPARI ON 1 3-01-2006. KINDLY IT MAY BE NOTED THAT THE HONBLE ITAT HAS NO T DIRECTED THIS OFFICE TO GIVE COPY OF THE ANY DOCUMENTS OTHER THAN ABOVE. VIDE THE ABOVE LETTERS IT HAS ALSO BEEN STATED BY Y OUR AUTHORIZED REPRESENTATIVE SHRI R. N. VEPARI THAT 'I F THESE ARE NOT FURNISHED IT WILL NOT HE POSSIBLE FOR MY CLIEN T TO COMPLY WITH THE REQUIREMENTS.' IN THIS CONNECTION KINDLY IT MAY BE NOTED THAT NON FURNISHING OF ANY SUCH FURTHER COPIES OF VARIOUS LETTERS REPORTS ETC. AS ABOVE DOES NOT PREVENT YOU IN ANY WAY TO FAMISH TH E INFORMATION WHICH IS ALREADY IN YOUR POSSESSION. KINDLY IT MAY BE TREATED THAT NON-FURNISHING OF ANY DETAILS AS ABOVE WILL BE TREATED AS NOTHING BUT THE ABSOLUTE N ON CO- OPERATION TO THE DEPARTMENT FROM YOUR SIDE. 5 YEAR ATTENTION IS HEREBY ALSO INVITED TOWARDS TH E DETAILS OF EXPENSES AMOUNTING TO TOTAL RS.12 39 188/- BY YO UR AUTHORIZED REPRESENTATIVE SHRI R. N VEPARI VIDE LE TTER DATED 19-01-2036 RECEIVED IN THIS ON 20-01-2006. IN THIS REGARD IT IS SUBMITTED THAT YOU ARE REQUESTED TO PRODUCE SUPPORT ING DOCUMENTARY EVIDENCE IN THIS REGARD IN ABSENCE OF WHICH IT IS NOT POSSIBLE FOR THIS OFFICE TO CONSIDER THE SAME. FURTHER THE DETAILS OF EXPENSES INCURRED TOWARDS OR NAMENTS IS ALSO NOT INCLUDED IN ABOVE YOU ARE ALSO REQUESTED TO FURNISH THE DETAILS OF THE SAME. 6 YOU ARE HEREBY REQUESTED TO SUBMIT THE ABOVE REQU IRED INFORMATION / DOCUMENTS BEING CALLED FOR AND TO PRO DUCE THE BOOKS OF ACCOUNTS CALLED FOR U/S. 142(1) OF THE ACT ON 20-03- 2006 AT 5-00 P. M. THE STATUTORY NOTICE U/S 142(1) OF THE IT ACT IS ENCLOSED HEREWITH. IT MAY BE KINDLY NOTED THAT IN THE CASE OF NON-FURNISHING OF THE INFORMATION CALLED FOR AS ABOVE THE CASE WILL BE DECIDED ON MERITS AND ASSESSMENT PROCE EDINGS WILL BE FINALIZED U/S 144 OF THE ACT' ITA NO.4473/AHD/2007 WITH CO NO.26/AHD/2008 9 2.8 IN RESPONSE WRITTEN SUBMISSIONS WERE FILED BY THE ASSESSEE ON 20-03-2006. HOWEVER NEITHER THE LEGAL REPRESENTATI VES OF THE ASSESSEE NOR HIS AUTHORIZED REPRESENTATIVE ATTENDED BEFORE THE AO NOR PRODUCED ANY PERSON IN SUPPORT OF THEIR CLAIM I N RESPECT OF THE EXPENDITURE INCURRED ON THE MARRIAGE CEREMONY. AFT ER CONSIDERING THE WRITTEN SUBMISSIONS THE AO CONCLUDED THAT THE REPLY OF THE LEGAL REPRESENTATIVES OF THE ASSESSEE / AUTHORIZED REPRES ENTATIVE WAS VAGUE IN GENERAL AND WITHOUT ANY COGENT SUPPORTING DOCUMENTA RY EVIDENCE. SINCE NEITHER THE LEGAL REPRESENTATIVES OF THE ASSESSEE NOR HIS A UTHORIZED REPRESENTATIVE ATTENDED BEFORE THE AO NOR PRODUCED ANY PERSON IN SUPPORT OF THEIR CLAIM IN RESPECT OF THE EXPENDITURE INCURRED IN TERMS OF THE DIRECTIONS OF THE ITAT THE AO WHILE REFERRING TO THE FOLLOWING ESTIMATE OF EXPEN SES IN THE SURVEY REPORT: (1) INVITATION CARDS: TWO TYPES OF INVITATION CARD S WERE GOT PRINTED FROM M/S SETU OF BAPUNAGAR AHMEDABAD. CONS IDERING THE QUALITY OF THE CARDS THE COST WAS ESTIMATED AT RS.51/- PER CARD. TOTAL EXPENDITURE WAS ESTIMATED AT RS.42 000/ -. (2) CATERING EXPENSES: THE ESTIMATED EXPENSE IN RES PECT OF CATERING WAS WORKED OUT ON THE BASIS OF PERSONS ATTENDED THE LUNCH / DINNER AND THE TYPES OF DISHES SERVED. (RS.) (A) LUNCH ON 10-12-1994 TO 12-12-1994 RS.2 5 0 000/- - ALTOGETHER 10 000 PEOPLE ATTENDED AND TOOK LUNCH. TOTAL COST PER DISH WAS ESTIMATED AT RS.25/- (B) LUNCH ON 13-12-1994 - ALTOGETHER 5000 RS.2 50 000/- PEOPLE ATTENDED AND TOOK LUNCH. COST PER DISH WAS ESTIMATED AT RS.50/- (C) LUNCH ON 12-12-1994 AT VILLAGE RS.5 00 000/- SAMDHIYALA. ALTOGETHER 10 000 PERSONS ATTENDED AND TOOK LUNCH. TOTAL COST PER DISH WAS ESTIMATED AT RS. 50/- TOTAL: 10 00 000/- (3) MANDAP AND SAMIYANA: ITA NO.4473/AHD/2007 WITH CO NO.26/AHD/2008 10 ONE LARGE SAMIYANA IN FARM HOUSE NEAR THE RESIDENCE OF SHRI BACHUBHAI DAYABHAI VADIWALA HAVING SIZE OF 15 X 15 X 375 (20X15) WITH HALOGEN AND SERIES LIGHTS. ONE LARGE MANDAP AT RESIDENCE HAVING SIZE OF 15 X 1 5 X 3000 (20X 15) WITH RAJWADI GATE AND THREE RAJWADI MANDAP RAJWADI CHAIR AND HALOGEN AND SERIES LIGHT. EXPENDITURE INCURRED ON THE ABOVE MANDAP AND SAMIYA NA ARRANGEMENT WAS ESTIMATED AT 10 00 000/-. (4) LIKEWISE SIMILAR ARRANGEMENTS WERE MADE AT VILL AGE SAMDHIALA. EXPENDITURE FOR THE ARRANGEMENTS WERE STATED TO BE. MADE BY SHRI MANUBHAI. TOTAL EXP ENDITURE ON THESE ARRANGEMENTS ARE ESTIMATED AT RS.10 00 000/-. (5) GOLD ORNAMENTS JEWELLERY ETC. : ON THE BASIS O F OBSERVATIONS AND ENQUIRIES MADE BY THE INSPECTORS D EPUTED AT THE TIME OF ENTIRE CEREMONIES AND AS PER THEIR REPO RT THE MADE ON JEWELLERY AND GOLD ORNAMENTS WERE ESTIMATE AT RS.10 00 000/-. (6) ENTERTAINMENT PROGRAMMES AND EXPENDITURE ON OTH ER ITEMS: THE EXPENDITURES MADE ON OTHER VARIOUS ITEMS AS UNDER WERE ESTIMATED AT RS.10 00 000/-. (A) A GRAND MUSICAL PARTY WAS ORGANIZED BY M/S. MAH ESH & PARTY ON 12-12-1994 AND 13-12-1994. (B) ALTOGETHER 74 BUSES 60 CAMELS 50 HORSES AND S O MANY MOTOR CARS WERE HIRED. ONE SMALL 4 SEATED HELICOPTE R WAS ALSO HIRED WHICH TOOK TWO FLIGHTS BETWEEN THE VILLAYES PITHAWADI AND SAMDHIALA.THE DISTANCE BETWE EN TWO VILLAGES IS 23 KMS. (C) DANDIA RAAS PROGRAMME LOK DAYRO ETC. (D) BANDS SECURITY GUARDS FIRE CRACKERS CLOTHS ETC. (7) PHOTOGRAPHY AND OTHER EXPENSES: OTHER EXPENSES LIKE PHOTOGRAPHY ETC. WERE ESTIMATED AT RS.58 000/-. ITA NO.4473/AHD/2007 WITH CO NO.26/AHD/2008 11 ESPECIALLY WHEN THE ASSESSEE DID NOT FILE RETURN DESPITE SUFFICIENT OPPORTUNITY ALLOWED TREATED THE AMOUNT OF RS.51 LACS AS UNEXP LAINED EXPENDITURE UNDER THE PROVISIONS OF SECTION 69C OF THE ACT AND ADDED TO THE INCOME OF THE ASSESSEE. 3. ON APPEAL THE LEARNED CIT(A) AFTER CONSIDERING THE SUBMISSIONS ON BEHALF OF THE ASSESSEE REDUCED TH E ADDITION IN THE FOLLOWING TERMS: (18) AS REGARDS THE FIRST OBJECTION ABOUT BASIS OR EVIDENCE FOR THE VARIOUS ADHOC BREAK-UPS OF RS.51 00 000/- THE INSPECTOR'S REPORT DATED 21.12.1994 HAS MADE AN ATT EMPT TO GIVE THIS BREAK-UP OF EXPENDITURE UNDER VARIOUS HEA DS. IN THE CHART ENCLOSED GIVING THE PARTICULARS OF HEADWISE E XPENSES THE ASSESSEE HAS WORKED OUT EXPENSES UNDER VARIOUS HEADS WHICH I DEAL WITH AS UNDER:- (I) INVITATION CARDS: SINCE THE ASSESSEE'S EXPENDIT URE IS SUPPORTED BY BILL I TAKE IT AT RS.27 000/- (II) CATERING EXPENSES: THE INSPECTOR HAS WORKED OU T EXPENDITURE AT RS.10 00 000/- BY ESTIMATING 10 000 PEOPLE HAVING TAKEN LUNCH IN 3 DAYS ON 10.12.94 11.12.94 AND 12.12.94 AGAIN 5 000 PEOPLE ON 13.12.1 994 AND 10 000 PEOPLE ON 12.12.1994 AT SAMADHIYALA WHER E THE SONS OF PITHWADIWALA FAMILY GOT MARRIED. THE FI GURES TAKEN BY HIM ARE AS UNDER:- LUNCH FOR 3 DAYS 10 000X25 RS. 250 000/- LUNCH ON 13.12.1994 5 000X50 RS. 250 0 00/- LUNCH AT SAMADHIYALA 10 000X50 RS. 50 0 000/- THE ASSESSEE RIGHTLY CONTENDS THAT THE EXPENDITURE OF LUNCH AT BRIDE'S PLACE IS BORNE BY THE BRIDE'S PARENTS AND T HEREFORE THERE WOULD NOT BE ANY EXPENDITURE AT SAMADHIYALA. AS REGARDS OTHER EXPENSES OF LUNCH THERE IS A VAST DIFFERENCE BETWEEN THE FIGURES OF PERSONS BETWEEN THE ASSESSEE AND THE INSPECTOR AND I TAKE IT AT 1 000 PEOPLE WHO TOOK LU NCH FOR THE THREE DAYS AT RS.25/- AND AT RS.50/-PER DISH ON DAY OF MARRIAGE. ITA NO.4473/AHD/2007 WITH CO NO.26/AHD/2008 12 THE ASSESSEE'S STAND WAS THAT IN VILLAGES THERE ARE NO CATERERS. THE FOOD THAT IS SERVED IS SIMPLE EXCEPT ON THE DAY OF MARRIAGE AND IS PREPARED AND SERVED BY VILLAGERS THEMSELVES. FURTHER IN A VILLAGE IT WOULD NOT BE P OSSIBLE TO BELIEVE THAT MORE THAN 2 000 PEOPLE COULD HAVE BEEN PROVIDED LUNCH. THE ASSESSEE HAS ALSO FURNISHED BILLS FOR FO OD EXPENSES TO THE EXTENT OF RS.104 800/- AND THEREFORE I TAK E THE CORRECT FIGURE AT RS.300 000/-. (2000X25 = 50 000+5 000X50 = 250 000) MANDAP DECORATION AT HIS VILLAGE; THE INSPECTOR HAD WORKED OUT FIGURE AT RS.10 00 000/- FOR WHICH HE HAS NOT G IVEN ANY BASIS. THE ASSESSEE HAS FURNISHED BILL OF JAY AMBE MANDAP SERVICE OF RS.1 61 412/- (FIGURE TAKEN BY CIT(A)-VI SURAT) WHICH I ACCEPT BUT TAKE EXPENDITURE AT RS.2 00 000/ -. (III) MANDAP DECORATION AT SAMADHIYALA (BRIDE'S PLA CE). AS HELD BY ME FOR FOOD EXPENSES AND AS ALSO HELD BY MY PREDECESSOR THIS EXPENDITURE HAS TO BE BORNE BY BRI DE'S SIDE AND EXPENDITURE HAS TO BE TAKEN AT NIL. THE INSPECTOR HAS GIVEN SOME DETAILS BUT THEY ARE N OT REQUIRED TO BE VERIFIED FOR THE SIMPLE REASON THAT SUCH EXPE NSES AT BRIDE'S PLACE OF DINNER AND MANDAP HAVE TO BE BORNE ONLY BY BRIDE SIDE. (IV) JEWELLERY AND ORNAMENTS: INITIALLY ASSESSEE HA S CONTENDED THAT THEY HAD SUBSTANTIAL FAMILY JEWELLER Y ACQUIRED OUT OF VAST AGRICULTURAL INCOME EARNED OVER YEARS. HOWEVER HE HAS AGREED TO RS.260 812/-: THE INSPECTOR HAS MADE ESTIMATE OF RS.10 LACS FOR WHICH THERE IS NO BASIS. I TAKE I T AT RS.300 000/. (V) OTHER EXPENSES: ASSESSEE CIT(A) ORDER OF 3.12.02 (A) MUSICAL PARTY (ASSESSEE HAS FURNISHED COPY OF BILLS OF MAHESHKUMAR & CO. I TAKE AT 34 000 34 000 (B) TRAVELLING: ITA NO.4473/AHD/2007 WITH CO NO.26/AHD/2008 13 VIJETA TRAVELS MURLIDHAR TRAVELS PARAS TRAVELS MISC. FOR BUSES AND VEHICLES HELICOPTER HORSES: ASSESSEE FAMILY OWNED 15 HORSES. OTHER HORSES CAMELS VEHICLES BELONGED TO THOSE WHO ATTENDED AND NOT TO THE ASSESSEE. ASSESSEE PAID FOR ELEPHANTS I TAKE EXPENSES AT DANDIYA PROGRAMME (DANDIYA IS PERFORMED BY VILLAGERS AND NO EXPENSE WAS INCURRED) I TAKE EXPENSES AT 7 001 7 001 3 900 30 000 800 000 11 000 --------- 892 151 NIL 7 001 6 250 3 900 30 000 800.000 --- ----------- 891 151 10 000 900 000 NIL SECURITY CRACKERS BAND TO YUVAK MANDAL CIT(A) FURTHER ADDED.. FOR SOUND SYSTEM FOR ARTIEST SONGS PHOTOGRAPHY FURNITURE AND SAMIYANA 12 000 20 825 10 000 12 000 20 825 -- 18 000 18 000 KAPADIA DECORATORS FLOWERS FOR FOOD FOR FOOD EXPENSES THE INSPECTOR HAS NOT GIVEN ANY BREAK UP OR BASIS FOR ESTIMATE OF RS.10 00 000 I TAKE OTHER EXPENSES AT.. 1/5 TH EXPENSE WOULD PERTAIN TO 6 000 5 000 50 000 104 800 ----------- 266 776 58 000 78 858 ---------- 252 009 ----------- 300 000 2027 000 405 250 ITA NO.4473/AHD/2007 WITH CO NO.26/AHD/2008 14 EXPENSES OF THE ASSESSEES SON SAY.. 400 000 (19) AS REGARDS SOURCE OF MEETING THE ABOVE EXPENS E THE ASSESSEE HAS STATED THAT THE FAMILY HAD SUBSTANTIAL AGRICULTURAL INCOME ON THE FOLLOWING BASIS: (I) AS PER REPORT OF INSPECTOR OF 21.12.94 (ON WHIC H DEPARTMENT RELIES FOR MAKING ADDITION OF RS.51 LACS ) FAMILY HAD 800 ACRES OF AGRICULTURAL LAND. (II) ASSESSEE HAD FILED SALES BILLS OF AGRICULTURE WITH CIT(A)- VI IN FIRST ROUND AND AGAIN ATTACHED AS PAGES 131 T O 233 WITH LETTER OF 16.12.06. AO STATES THAT NO PROOF OF AGRICULTURE INCOME IS GIVEN NOR SHOWN IN RETURN OF INCOME. I FIND THAT THE SALE BILLS WERE GIVEN TO CI T(A)-VI IN SECOND ROUND AND GIVEN TO AO FOR REMAND REPORT. JT. CIT HAS CONSIDERED THEM IN HER REPLY TO CIT(A) BY L ETTER OF 30-7-2002. THESE HAVE BEEN AGAIN FILED WITH LETT ER OF 16.12.06. THE ASSESSEE HAS EXPLAINED THAT NO AGRICU LTURE INCOME WAS SHOWN IN INDIVIDUAL RETURN AS AGRICULTUR AL LANDS WERE ANCESTRAL AND INCOME GENERATED IN HUF. FURTHER THE ASSESSEE HAS FILED COPIES OF 7/12 OF L ANDS STANDING IN NAMES OF DIFFERENT MEMBERS OF HUF. I AM CONVINCED THAT THE FAMILY OWNED SUBSTANTIAL LA NDS AND HAD SUBSTANTIAL AGRICULTURAL INCOME BUT TAKE IT AT NET AT RS.10 LACS. AS INCOME BELONGED TO ENTIRE FAMILY I DEDUCT IT FR OM TOTAL EXPENSES. THE ADDITION IN THE HANDS OF THE APPELLAN T WORKS OUT AS UNDER:- TOTAL EXPENDITURE RS.2027 000 LES: AGRICULTURE INCOME RS. 527 000 ----------------- RS.1500 000 1/5 TH PERTAINS TO ASSESSEES SONS MARRIAGE RS.300 000/- 4. BOTH THE ASSESSEE AS WELL AS REVENUE ARE N OW IN APPEAL BEFORE US AGAINST THE AFORESAID FINDINGS OF THE LD. CIT(A). THE LD. DR SUPPORTED THE ORDER OF THE AO WHILE THE LD. AR ON B EHALF OF THE ASSESSEE RELIED ON THEIR SUBMISSIONS BEFORE THE LD. CIT(A). ITA NO.4473/AHD/2007 WITH CO NO.26/AHD/2008 15 5. WE HAVE HEARD BOTH THE PARTIES AND GONE THROUGH THE FACTS OF THE CASE. WE FIND THAT THIS IS THE THIRD ROUND OF LITIGATION BEFORE US. THE LD. CIT(A) AFTER CONSIDERING THE ESTIMATE OF EX PENSES ON THE BASIS OF REPORT OF THE INSPECTOR AS A RESULT OF S URVEY AND THE FACT THAT MARRIAGE OF SON OF THE ASSESSEE BESIDES MARRI AGE OF FOUR CHILDREN OF BROTHER OF THE ASSESSEE WAS HELD ON 8. 12.1994 AS ALSO CONSIDERING THE AGRICULTURAL INCOME EARNED FROM TH E ANCESTRAL LANDS ESTIMATED EXPENSES OF RS.15 00 000 TOWARDS ALL TH E FIVE MARRIAGES AND ACCORDINGLY UPHELD THE ADDITION OF RS. 3 LACS BEING 1/5 TH TOWARDS THE MARRIAGE OF SON OF THE ASSESSEE. NEITHE R THE LD. DR NOR THE LD. AR ON BEHALF OF THE ASSESSEE PLACED ANY MA TERIAL BEFORE US TO CONTROVERT THE ESTIMATE MADE BY THE LD. CIT(A) SO AS TO ENABLE US TO TAKE A DIFFERENT VIEW IN THE MATTER. IN THE ABSENCE OF ANY BASIS WE ARE NOT INCLINED TO INTERFERE WITH THE FINDINGS OF THE LD. CIT(A) . THEREFORE THE RESPECTIVE GROUNDS RAISED BY THE REV ENUE AND THE ASSESSEE ARE DISMISSED. 6. NO ADDITIONAL GROUND HAVING BEEN RAISED BEFORE US IN TERMS OF THE RESIDUARY GROUND IN THE CO ACCORDINGLY THIS G ROUND IS ALSO DISMISSED. 7. IN THE RESULT APPEAL OF THE REVENUE AND CO FI LED BY THE ASSESSEE ARE DISMISSED ORDER PRONOUNCED IN THE COURT TODAY ON 27-08-2010 SD/- SD/- (MUKUL SHRAWAT) JUDICIAL MEMBER (A N PAHUJA) ACCOUNTANT MEMBER DATE : 27-08-2010 ITA NO.4473/AHD/2007 WITH CO NO.26/AHD/2008 16 COPY OF THE ORDER FORWARDED TO: 1. LATE SHRI MANUBHAI DAHYABHAI PITHWADIWALA BY L/ H SMT. KASTURBEN M BALDHA BUNGALOW NO.11 & 12 ISHWAR KRU PA SOCIETY TRIKAMNAGAR L H ROAD SURAT 2. THE ITO WARD-9(3) SURAT 3. CIT CONCERNED 4. CIT(A)-V SURAT 5. THE DR BENCH-D ITAT AHMEDABAD 6. GUARD FILE BY ORDER DEPUTY REGISTRAR ASSISTANT REGISTRAR ITAT AHMEDABAD