ITO, Gwalior v. Shri Manoj Sodani, Gwalior

IN THE INCOME TAX APPELLATE TRIBUNAL AGRA BENCH AGRA BEFORE SHRI R.K. GUPTA JUDICIAL MEMBER AND SHRI P.K. BANSAL ACCOUNTANT MEMBER ITA NO.649/AGR/2008 ASST. YEAR: 2004-05 THE INCOME-TAX OFFICER WARD 1(1) VS. SHRI MANOJ SODANI GWALIOR. PROP. M/S. R.S. SODANI & BROS. SARAFA BAZAR GWALIOR. (PAN : ADOPS 8883 L) (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI R.C. SHARMA JR. D.R. RESPONDENT BY : SHRI MAHESH AGARWAL C.A. ORDER PER P.K. BANSAL A.M.: THIS APPEAL HAS BEEN FILED BY THE REVENUE AGAINST T HE ORDER OF THE CIT(A) DATED 10.07.2008 BY TAKING THE FOLLOWING EFFECTIVE GROUND S OF APPEAL :- (1) ON THE FACTS AND IN THE CIRCUMSTANCES OF THE C ASE THE HONBLE CIT(A) HAS ERRED IN LAW AND FACT IN DELETING THE ADDITION OF RS.16 20 049/- WHICH WAS MADE ON ACCOUNT OF UNEXPLAINED AND UNACCOUNTED INVESTMEN T U/S 69 OF THE IT ACT. (2) ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CA SE THE HONBLE CIT(A) HAS ERRED IN ACCEPTING THE CONTENTION OF THE ASSESSEE T HAT THE ASSESSEE HAS PRODUCED THE PERSONAL SETS OF BOOKS OF ACCOUNT DURING THE CO URSE OF ASSESSMENT PROCEEDINGS WHICH HE NEVER PRODUCED. 2. THE ONLY ISSUE INVOLVED IN THIS APPEAL RELATES T O THE DELETION OF ADDITION OF RS.16 20 049/- . 2 3. THE BRIEF FACTS OF THE CASE OF THIS ADDITION ARE THAT THE A.O. NOTED THAT THE ASSESSEE WAS HAVING OPENING CAPITAL AT RS.16 581/- AND HE INTROD UCED RS.25 15 508/- AS CAPITAL FROM LATE SHRI R.S. SODANI ASSESSEES FATHER WHO EXPIRED ON 28.03 .2003. THE ASSESSEE TRANSFERRED HIS FATHERS CAPITAL TO HIS ACCOUNT. THE A.O. FOUND THAT THE RE TURN FOR THE A.Y. 2003-04 OF LATE SHRI R.S. SODANI WAS FILED BY HIS SON SHRI MANOJ SODANI ON 20 .07.2004 DECLARING TOTAL INCOME AT RS.1 55 473/- AND THE CAPITAL ACCOUNT WAS ENCLOSED ALONG WITH THE RETURN WHICH SHOWS CAPITAL OF LATE SHRI R.S. SODANI ONLY AT RS.8 95 459/-. HE T HEREFORE CONFRONTED THE ASSESSEE FOR THE DIFFERENCE OF RS.16 20 049/- (25 15 508 MINUS 8 95 459). THE ASSESSEE CONTENDED THAT HIS FATHER EXPIRED ON 23.03.2003 AND AS PER HIS REGISTERED WIL L DATED 09.07.2002 HIS CAPITAL OF RS.23 65 508/- DEVOLVES ON HIM THROUGH HIS PERSONAL SET OF BOOKS INCLUDING THE CAPITAL ACCOUNT OF LATE SHRI R.S. SODANI IN THE FIRMS BOOK AMOUNTI NG TO RS.8 95 459/- A COPY OF STATEMENT OF AFFAIRS OF LATE SHRI R.S. SODANI FOR THE THREE YEAR S UPTO 31.03.2003 WAS ALSO FILED. HIS PAN WAS ALSO SUBMITTED. THE BALANCE AS PER THE PERSONAL SE T OF BOOKS WAS RS.23 65 508/- WHILE THE BALANCE IN THE FIRMS BOOK WAS RS.8 95 459/-. THUS THERE WAS NO EXCESS CAPITAL OF RS.16 20 049/- AS UNEXPLAINED. THE A.O. DID NOT AG REE WITH THE ASSESSEE. WHEN THE MATTER WENT BEFORE THE CIT(A) THE CIT(A) DELETED THE ADDITION. 4. LD. D.R. SUPPORTED THE ORDER OF THE A.O. AND VEH EMENTLY CONTENDED THAT THE CIT(A) WAS NOT CORRECT IN DELETING THE ADDITION. 5. LD. A.R. ON THE OTHER HAND RELIED ON THE ORDER OF THE CIT(A). 6. WE HAVE CAREFULLY CONSIDERED THE RIVAL SUBMISSIO NS AND PERUSED THE MATERIAL ON RECORD. WE NOTED FROM THE SUBMISSIONS MADE BEFORE THE CIT(A ) THAT THE ASSESSEE HAS GIVEN THE DETAILS OF 3 INHERITED CAPITAL AS PER THE WILL AMOUNTING TO RS.2 3 65 508/- AND HAS ALSO EXPLAINED THE VARIOUS ASSETS HELD BY LATE SHRI R.S. SODANI AS ON 31.03.20 03 AT RS.25 15 508/- CONSISTING OF CAPITAL OF LATE SHRI R.S. SODANI WITH M/S. R.S. SODANI & BROTH ERS SHARES LOANS ADVANCES CASH IN HAND AND BANK BALANCES. IT WAS ALSO CONTENDED THAT ALL THESE ASSETS WERE DULY REFLECTED IN THE PERSONAL SET OF BOOKS OF ACCOUNTS. THE PERSONAL BALANCE SHE ET OF THE FATHER WAS ATTACHED ALONG WITH THE RETURN FILED BY HIM. THUS LATE SHRI R.S. SODANI W AS HAVING A CAPITAL OF RS.25 15 508/- AT THE TIME OF DEATH AND THE ASSESSEE HAS ACTUALLY RECEIVE D A SUM OF RS.23 15 508/- FROM HIM. NO CONTRARY MATERIAL WAS FILED BEFORE US. THE CIT(A) HAS GIVEN THE FINDING OF FACTS ON THE BASIS OF THE MATERIAL ON RECORD. HIS FINDING CANNOT BE REVE RSED BY US UNLESS AND UNTIL SOME CONTRARY MATERIAL RELATING THERETO IS FILED BY THE REVENUE. WE THEREFORE ARE OF THE VIEW THAT NO INTERFERENCE IS CALLED FOR IN THE ORDER OF THE CIT( A) AND ACCORDINGLY WE CONFIRM THE ORDER OF THE CIT(A) DELETING THE ADDITION OF RS.16 20 049/-. 7. IN THE RESULT APPEAL OF THE REVENUE STANDS DISM ISSED. (ORDER PRONOUNCED IN THE OPEN COURT ON 25.05.2010) . SD/- SD/- (R.K. GUPTA) (P.K. BANSAL) JUDICIAL MEMBER ACCOUNTANT MEMBER PLACE: AGRA DATE: 25 TH MAY 2010. PBN/* COPY OF THE ORDER FORWARDED TO: 1. APPELLANT 2. RESPONDENT BY ORDER 3. CIT CONCERNED 4. CIT (APPEALS) CONCERNED 5. DR ITAT AGRA BENCH AGRA 6. GUARD FILE ASSIST ANT REGISTRAR INCOME-TAX APPELLATE TRIBUNAL AGRA TRUE COPY