Mallikarjun Shivlingappa Gundage, Solapur v. ITO, Solapur

ITA 556/PUN/2010 | 2002-2003
Pronouncement Date: 21-09-2010 | Result: Partly Allowed

Appeal Details

RSA Number 55624514 RSA 2010
Assessee PAN AAXPJ4284G
Bench Pune
Appeal Number ITA 556/PUN/2010
Duration Of Justice 5 month(s) 5 day(s)
Appellant Mallikarjun Shivlingappa Gundage, Solapur
Respondent ITO, Solapur
Appeal Type Income Tax Appeal
Pronouncement Date 21-09-2010
Appeal Filed By Assessee
Order Result Partly Allowed
Bench Allotted SMC
Tribunal Order Date 21-09-2010
Assessment Year 2002-2003
Appeal Filed On 15-04-2010
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH PUNE SINGLE MEMBER CASE BEFORE SHRI SHAILENDRA KUMAR YADAV JUDICIAL MEMBER I.T.A. NO. 556/PN/2010: A.Y. 2002-03 MALLIKARJUN SHIVLINGAPPA GUNDAGE 17 NAVI PETH SOLAPUR 413 007 PAN AAXPJ 4284 G APPELLANT VS. I.T.O. WARD 2(4) SOLAPUR RESPONDENT APPELLANT BY : NONE RESPONDENT BY: SHRI ABHAY DAMLE ORDER THIS APPEAL HAS BEEN FILED BY THE ASSESSEE AGAINST THE ORDER OF THE CIT(A)-III PUNE DATED 23-12-2009 FOR A .Y. 1996-97 ON VARIOUS GROUNDS. 2. THE FIRST ISSUE IS WITH REGARDS TO ADDITION OF R S. 59 213/- ON ACCOUNT OF CASH RECEIVED FROM SUNDRY DEBTORS AND RS. 50 000/- ON ACCOUNT OF LOANS AND ADVANCES FROM FAMI LY MEMBERS AND RELATIVES. DURING THE YEAR UNDER CONSI DERATION THE ASSESSEE WAS A MEMBER IN THREE BHISHIS FROM WHI CH HE HAD RECEIVED RS. 3 70 000/- AND DIVIDEND OF RS. 43 872/- WHICH WAS NOT RECORDED IN THE BOOKS OF ACCOUNT. THE ASSESSEE ITA NO. 556/PN/2010 MALLIKARJUN S. GUNDAGE A.Y. 2002-03 2 HAS EXPLAINED THE SOURCE OF INVESTMENT IN THESE BHI SHIS AS UNDER: (I) OPENING CASH BALANCE AS ON 1- 11-2001 RS. 46 178/- (II) SALES FROM 1-4-2001 TO 12-10- 2001 RS. 1 51 290/- (III) MAJURI FOR 1-4-2001 TO 12-10- 2001 RS. 19 626/- (IV) CASH RECEIVED FROM SUNDRY DEBTORS RS. 59 213/- (V) LOANS AND ADVANCES RS. 50 000/- (VI) SALE PROCEEDS OF ASH LAND IN MAY 2001 RS. 85 000/- TOTAL RS. 4 11 307/- 3. THE A.O OBSERVED THAT THE CASH RECEIVED FROM SUN DRY DEBTORS FOR RS. 59 213/- AND LOANS AND ADVANCES OF RS. 50 000/- WERE NOT SUPPORTED BY ANY DOCUMENTARY EVID ENCE AND HENCE THE EXPLANATION FURNISHED BY THE ASSESSEE IN RESPECT OF THESE AMOUNTS WAS NOT ACCEPTABLE. ACCOR DING TO A.O. THE ASSESSEE HAD EXPLAINED THE SOURCE OF INVE STMENT TO THE EXTENT OF RS. 2 64 051/- ONLY. ACCORDINGLY BA LANCE AMOUNT OF RS. 1 05 949/- WAS ADDED BACK BY THE A.O AS UNEXPLAINED INVESTMENT U/S 69 OF THE ACT WHICH WAS CONFIRMED BY THE CIT(A). 4. I FIND THAT THOUGH THE AMOUNT IN QUESTION IS SMA LL BUT THE ASSESSEE HAD FAILED TO FURNISH THE DETAILS BEFO RE THE REVENUE AUTHORITIES WITH REGARDS TO SUNDRY DEBTORS AND CREDITORS. IN ABSENCE OF SUCH DETAILS THE LOWER A UTHORITIES ITA NO. 556/PN/2010 MALLIKARJUN S. GUNDAGE A.Y. 2002-03 3 HAVE NO OPTION BUT TO MAKE THE ADDITION IN QUESTION . SO IN THE ABSENCE OF DETAILS INCLUDING THE IDENTITY OF PERSON S THEIR CREDIT WORTHINESS AND GENUINENESS OF TRANSACTIONS THE ADDITIONS WERE RIGHTLY CONFIRMED BY THE LOWER AUTHO RITIES. I UPHOLD THE SAME. 5. THE NEXT ISSUE IS WITH REGARDS TO ADDITION OF RS . 48 000/- ON ACCOUNT OF LOW WITHDRAWALS FOR HOUSEHOLD EXPENSE S. UNDER THE FACTS AND CIRCUMSTANCES I RESTRICT THE DISALLO WANCE TO RS. 24 000/- ON ACCOUNT OF WITHDRAWALS FOR HOUSEHOLD EX PENSES. 6. THE NEXT ISSUE IS WITH REGARDS TO ADDITION OF RS . 4 000/ ON ACCOUNT OF DEFICIENCY IN BUSINESS EXPENSES AND I N RESPECT OF ADDITION OF RS. 1 855/- ON ACCOUNT OF LESS SALES SHOWN. THE ABOVESAID DISALLOWANCES HAVE BEEN MADE BY THE A.O O UT OF VARIATION IN PROFIT AND LOSS ACCOUNT AFTER OBSERVIN G THAT THESE EXPENSES ARE NOT FULLY SUPPORTED BY BILLS AND VOUCH ERS. FURTHER FROM EXAMINATION OF MONTHWISE SALES AND PU RCHASES THE A.O FOUND THAT THE ASSESSEE HAD SHOWN SALES LES S BY RS. 1 855/-. THUS HE ADDED BACK THIS AMOUNT TO THE IN COME OF THE ASSESSEE. THE ABOVESTATED ADDITIONS HAVE BEEN M ADE IN ABSENCE OF VERIFICATION OF EXPENSES AND DETAILS WIT H REGARDS TO THE SAME. UNDER THE CIRCUMSTANCES ADDITIONS ARE C ONFIRMED. ITA NO. 556/PN/2010 MALLIKARJUN S. GUNDAGE A.Y. 2002-03 4 7. IN THE RESULT THE APPEAL IS PARTLY ALLOWED. PRONOUNCED IN THE OPEN COURT ON 21 ST SEPTEMBER 2010. SD/- (SHAILENDRAKUMAR YADAV) JUDICIAL MEMBER PUNE DATED THE 21 ST SEPTEMBER 2010 ANKAM COPY FORWARDED TO: (1) ASSESSEE (2) DEPARTMENT (3) CIT- IV PUNE (4) CIT(A)- III PUNE (5) THE D.R. ITAT PUNE PUNE TRUE COPY BY ORDER ASSISTANT REGISTRAR INCOME-TAX APPELLATE TRIBUNAL PUNE BENCHES PUNE