K.M. Ashraf, 501/502 Corporate Plaza, Pune v. Asstt. CIT Cent. Cir. 1(1) Pune, Pune

ITA 691/PUN/2004 | misc
Pronouncement Date: 27-10-2010 | Result: Dismissed

Appeal Details

RSA Number 69124514 RSA 2004
Assessee PAN TOBER2010A
Bench Pune
Appeal Number ITA 691/PUN/2004
Duration Of Justice 6 year(s) 5 month(s) 22 day(s)
Appellant K.M. Ashraf, 501/502 Corporate Plaza, Pune
Respondent Asstt. CIT Cent. Cir. 1(1) Pune, Pune
Appeal Type Income Tax Appeal
Pronouncement Date 27-10-2010
Appeal Filed By Assessee
Order Result Dismissed
Bench Allotted Not Allotted
Tribunal Order Date 27-10-2010
Assessment Year misc
Appeal Filed On 05-05-2004
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH B PUNE BEFORE SHRI SHAILENDRA KUMAR YADAV JM AND SHRI D. KARUNAKARA RAO AM I.T.A. NO. 691/PN/2004 BLOCK PERIOD: 1992-93 TO 2002-03 K.M. ASHRAF 501/502 CORPORATE PLAZA OPP. SENAPATI BAPAT ROAD NEAR CHATURSHRINGI TEMPLE PUNE-411 016 PAN APPLIED FOR APPELLANT VS. ASSTT. CIT CENTRAL CIR. 1(1) PUNE RESPONDEN T I.T.A. NO. 694/PN/2004 BLOCK PERIOD: 1992-93 TO 2002-03 SHRI K. SHABEER BABU 501/502 CORPORATE PLAZA OPP. SENAPATI BAPAT ROAD NEAR CHATURSHRINGI TEMPLE PUNE-411 016 PAN APPLIED FOR APPELLANT VS. ASSTT. CIT CENT. CIR. 1(1) PUNE RESPONDENT APPELLANTS BY : SHRI SUNIL PATHAK AND SHRI NIKHIL PATHAK RESPONDENT BY: SHRI A.S. SINGH ORDER PER SHAILENDRA KUMAR YADAV JM I.T.A. NO. 691/PN/2004: THIS APPEAL HAS BEEN FILED BY THE ASSESSEE AGAINST THE ORDER OF THE CIT(A)I PUNE DATED 2-1-2004 ON VARIOUS GROUNDS. ITA NO. 691 & 694/PN/04 K. SHABEER BABU BLOCK PERIOD: 1992-93 TO 2002-03 2 2. THE FIRST ISSUE IS WITH REGARDS TO ADDITION OF R S. 27 485/- IN RESPECT OF UNEXPLAINED CASH DEPOSIT. THE ASSESSEE WAS EMPLOYED WITH SHEEBA LEASING INVESTMENTS AND GETTING SALARY WHICH IS STATED TO BE BELOW TAXABLE LIMIT AND NO RETURN OF INCOME W AS STATED TO HAVE BEEN FILED BEFORE 1998-99. THE A.O NOTED THAT THE ASSESSEE WAS MAINTAINING BANK ACCOUNT AT PUNE WITH STATE BAN K OF MYSORE AND VIDYA SAHAKARI BANK. ON BEING QUESTIONED ABOUT THE DEPOSITS OF RS. 1 60 153/- IN THESE BANK ACCOUNTS THE ASSES SEE CLARIFIED THAT THE DEPOSITS ARE OUT OF SALARY RECEIVED BEING DIRECTOR OF M/S. SAIRUNG DEVELOPERS AND PROMOTERS PVT. LTD. DEVELOP MENT CHARGES AND BANK INTEREST. THE ASSESSEE WAS FURTHER ASKED ABOUT THE PERSONS FROM WHOM THE DEVELOPMENT CHARGES HAVE BEEN RECEIVED. IT WAS STATED ON BEHALF OF THE ASSESSEE THAT NO SUCH D ETAILS OR ANY BOOKS OF ACCOUNTS HAVE BEEN MAINTAINED. THE ASSESS EE HAS ESTIMATED THE NET PROFIT OF RS. 60 000/- AFTER CONS IDERING THE EXPENSES AND SHOWN THE SAME IN THE BLOCK RETURN WHI CH IS STATED TO BE HIGHER THAN THE PROFIT AS PER SECTION 44AD OF TH E ACT. THE A.O HAS FURTHER NOTED THAT FOR THE YEAR 1997-98 AND 200 0-01 TOTAL DEPOSIT WAS OF RS. 11 668/- WHICH IS BELOW TAXABLE LIMIT. IN VIEW OF THE ABOVE FACTS AND CIRCUMSTANCES THE A.O HELD THA T THE ASSESSEE WAS UNABLE TO EXPLAIN THE ENTRIES OF CASH DEPOSITS IN THE BANK ACCOUNT AND HAS TREATED THE AMOUNT OF RS. 1 48 435/ - AS UNEXPLAINED CREDIT U/S 68 OF THE ACT WHICH WAS CONF IRMED BY THE CIT(A). SAME HAS BEEN OPPOSED BEFORE US ON BEHALF O F ASSESSEE WHILE LEARNED DR SUPPORTED THE ORDERS OF AUTHORITIE S BELOW. ITA NO. 691 & 694/PN/04 K. SHABEER BABU BLOCK PERIOD: 1992-93 TO 2002-03 3 3. HAVING CONSIDERED THE RIVAL SUBMISSIONS AND PERU SED THE MATERIAL ON RECORD WE FIND THAT THE CIT(A) OBSERVE D THAT THE ASSESSEE HAS CLAIMED PROPRIETARY BUSINESS OF LAND D EVELOPMENT. HOWEVER FROM THE RETURN OF INCOME FOR A.Y. 2001-02 AND 2000-01 IT WAS CLEAR THAT NO SUCH INCOME FROM ANY PROPRIETARY BUSINESS HAS BEEN SHOWN BY THE ASSESSEE. THE INCOME IN A.Y. 199 9-00 AND 2000-01 HAS ONLY BEEN REFLECTED FROM SALARIES ETC. WITH REGARDS TO THE CLAIM OF PROPRIETARY BUSINESS OF THE ASSESSEE THE A.O POINTED OUT THAT NEITHER ANY BOOKS OF ACCOUNTS HAVE BEEN MA INTAINED NOR ANY DETAILS. IN RESPONSE TO NOTICE ISSUED U/S 142(1 ) THE ASSESSEE HAS SUBMITTED THE NAMES OF THE PERSONS FROM WHOM CI VIL DEVELOPMENT RECEIPTS HAVE BEEN RECEIVED. HOWEVER THE ASSESSEE COULD NOT SUBMIT ANY DETAILS ABOUT THE DOCUMENTS RE LATED TO HIS PROPRIETARY BUSINESS BEFORE THE A.O. THE ASSESSEE HAS HOWEVER SUBMITTED THAT THE HE HAD RECEIVED CHEQUES TOWARDS DEVELOPMENT RECEIPTS FOR THE WORK UNDERTAKEN BY HIM AND HAD ALS O INCURRED EXPENSES FOR THE SAME. THE CIT(A) OBSERVED THAT TH E ASSESSEE HAS SHOWN A PAYMENT OF RS. 1 00 000/- THROUGH BANK AND REST ARE STATED TO HAVE BEEN IN CASH OUT OF DEVELOPMENT EXP ENSES. THE CIT(A) HAS NOT ACCEPTED THE CLAIM OF THE ASSESSEE T HAT HE WAS CARRYING ON ANY DEVELOPMENT BUSINESS AS A PROPRIETA RY. ADMITTEDLY THE ASSESSEE HAS NOT MAINTAINED ANY CASH BOOK. THE POSITION WITH REGARDS TO THE NEGATIVE CASH BALANCE WAS ALSO NOT A CCEPTABLE TO THE CIT(A). THE ASSESSEE HAS BEEN ABLE TO SHOW THAT AS AGAINST THE TOTAL ITA NO. 691 & 694/PN/04 K. SHABEER BABU BLOCK PERIOD: 1992-93 TO 2002-03 4 RECEIPTS OF RS. 1 58 485/- (RS. 1 53 485/- BY CHEQU E) RS. 1 00 000/- WERE THE PAYMENTS MADE BY CHEQUE TOWARDS THE EXPENSES RELATED TO THE RECEIPTS FOLLOWING THE MATC HING CONCEPT AND THEREFORE CREDIT FOR THE SAME WAS REQUIRED TO BE G IVEN. THE CIT(A) THEREFORE OPINED THAT THE UNDISCLOSED INCOME WAS R EQUIRED TO BE LIMITED TO RS. 58 485/- AND ACCORDINGLY HE DIRECTED THE A.O TO TAKE THE UNDISCLOSED INCOME OF THE ASSESSEE FOR THE BLOC K PERIOD AS AGAINST RS. 31 000/- DISCLOSED BY THE ASSESSEE GIVI NG RELIEF OF RS. 1 00 000/-. IN THIS VIEW OF THE MATTER THE TOTAL UNDISCLOSED INCOME WAS DIRECTED TO BE TAKEN AT RS. 87 485/- (RS. 58 48 5/- + RS. 29 000/-). WE DO NOT FIND ANY INFIRMITY IN THE ORD ER OF THE CIT(A). WE ACCORDINGLY UPHOLD THE ORDER OF THE CIT(A) AND D ISMISS THE GROUNDS RAISED BY THE ASSESSEE. I.T.A. NO. 694/PN/2004 4. IN THIS APPEAL THE A.O NOTED THAT THE ASSESSEE HAS NOT FLED ANY RETURN OF INCOME UPTO A.Y. 1999-00. THE ASSESS EE HAS FILED RETURNS OF INCOME FOR A.Y. 2000-01 AND 2001-02 ONLY ON 30-6-2000 AND 31-7-2001 RESPECTIVELY. THE A.O HAS FURTHER NO TED THAT THE AMOUNT AGGREGATING TO RS. 8 79 193/- DEPOSITED IN T HE BANK ACCOUNT HAS BEEN CLAIMED BY THE ASSESSEE TO HAVE BE EN RECEIVED OUT OF DEVELOPMENT CHARGES RECEIPTS FOR THE WORK UNDERT AKEN BY HIM. THE ASSESSEE HAS CLARIFIED THAT THE EXPENSES TOWARD S DEVELOPMENT HAD BEEN INCURRED OUT OF WITHDRAWALS MADE FROM THE BANK ACCOUNT. AFTER CONSIDERING THE EXPENSES THE ASSESSEE ESTIMA TED THE NET PROFIT AT RS. 1 54 000/- @ 20% ON THE RECEIPTS OF R S. 8 79 193/-. IT ITA NO. 691 & 694/PN/04 K. SHABEER BABU BLOCK PERIOD: 1992-93 TO 2002-03 5 WAS CLAIMED BY THE ASSESSEE THAT THE PROFIT SHOWN I S HIGHER THAN THE PROFIT AS PER PROVISIONS OF SECTION 44AD. DURI NG THE ASSESSMENT PROCEEDINGS THE ASSESSEE WAS ASKED ABOUT THE NAMES OF THE PERSONS FROM WHOM THE DEVELOPMENT CHARGES HAVE BEEN RECEIVED AND PAID. IT WAS STATED BY THE ASSESSEE THAT NO SU CH DETAILS OR ANY BOOKS OF ACCOUNTS HAVE BEEN MAINTAINED AND THAT THE ABOVE RECEIPTS RELATED TO CIVIL DEVELOPMENT WORK RECEIPTS RECEIVED FROM VARIOUS PARTIES FOR THE PURPOSE OF LAND DEVELOPMENT FENCING WORK ETC. IT WAS FURTHER SUBMITTED THAT THE TRANSACTION S IN THE BANK ACCOUNT WERE RELATED TO CIVIL WORK CARRIED OUT BY H IM IN HIS PROPRIETARY CONCERN. THE A.O HAS FURTHER NOTED THA T FOR THE YEAR 1997-98 TOTAL DEPOSIT WAS OF RS. 11 500/- WHICH WAS BELOW TAXABLE LIMIT. IN VIEW OF THE ABOVE FACTS AND CIRCUMSTANCE S THE A.O HELD THAT THE ASSESSEE WAS UNABLE TO EXPLAIN THE ENTRIES OF CASH DEPOSITS IN HE BANK ACCOUNT AND HAS TREATED AN AMOUNT OF RS. 8 67 693/- AS UNDISCLOSED CREDIT U/S 68 OF THE ACT WHICH WAS CONF IRMED BY THE CIT(A). SAME HAS BEEN OPPOSED BEFORE US ON BEHALF OF ASSESSEE. ON THE OTHER HAND THE LEARNED DR SUPPORTED THE ORD ERS OF AUTHORITIES BELOW. 5. HAVING CONSIDERED THE RIVAL SUBMISSIONS AND PERU SED THE MATERIAL ON RECORD WE FIND THAT THE CIT(A) OBSERVE D THAT THE ASSESSEE HAS CLAIMED PROPRIETARY BUSINESS OF LAND D EVELOPMENT. HOWEVER FROM THE RETURN OF INCOME FOR A.Y. 2001-02 AND 2000-01 IT WAS CLEAR THAT NO SUCH INCOME FROM ANY PROPRIETARY BUSINESS HAS BEEN SHOWN BY THE ASSESSEE. THE INCOME IN A.Y. 199 9-00 AND ITA NO. 691 & 694/PN/04 K. SHABEER BABU BLOCK PERIOD: 1992-93 TO 2002-03 6 2000-01 HAS ONLY BEEN REFLECTED FROM SALARIES ETC. THE A.O HAS RIGHTLY OBSERVED THAT NEITHER ANY BOOKS OF ACCOUNTS HAVE BEEN MAINTAINED NOR ANY DETAILS. IN RESPONSE TO NOTICE U/S 142(1) OF THE ACT THE ASSESSEE SUBMITTED THE NAMES OF THE PERSON S FROM WHOM CIVIL DEVELOPMENT RECEIPTS HAVE BEEN RECEIVED. HOW EVER THE ASSESSEE COULD NOT SUBMIT ANY DETAILS ABOUT THE DOC UMENTS RELATED TO HIS PROPRIETARY BUSINESS BEFORE THE A.O. THE AS SESSEE STATED THAT HE HAD RECEIVED CHEQUES TOWARDS DEVELOPMENT RECEIPT S FOR THE WORK UNDERTAKEN BY HIM AND HAD ALSO INCURRED EXPENSES FO R THE SAME. THE CIT(A) HAS FURTHER OBSERVED THAT THE ASSESSEE H AS SHOWN OUT OF DEVELOPMENT EXPENSES A PAYMENT OF ONLY RS. 1 01 500 /- THROUGH BANK AND REST ARE STATED TO HAVE BEEN IN CASH. THE ASSESSEE HAS SUBMITTED DETAILS OF THESE EXPENSES IN THE PROFIT A ND LOSS ACCOUNT. HOWEVER THE CIT(A) DID NOT ACCEPT THE CLAIM OF THE ASSESSEE THAT HE WAS CARRYING ON ANY DEVELOPMENT BUSINESS AS A PROPR IETARY IN SPITE OF THE RECEIPTS AND PAYMENTS FROM SOME OF THE CONCE RNED PERSONS WHICH MAY HAVE BEEN ROUTED THROUGH HIS BANK ACCOUNT . THE ASSESSEE HAS SUBMITTED STATEMENT SHOWING PEAK CREDI T OF CASH AND HAS ADMITTED THAT ONLY A SUM OF RS/. 4 419/- AS NEG ATIVE CASH OF PEAK CREDIT CAN ONLY BE ADDED U/S 68 OF THE ACT. TH E ASSESSEE HAS NOT MAINTAINED ANY CASH BOOK. THE CIT(A) HAS ALSO N OT ACCEPTED THE POSITION WITH REGARD TO THE NEGATIVE CASH BALANCE. HOWEVER THE ASSESSEE HAS BEEN ABLE TO SHOW THAT AS AGAINST THE TOTAL RECEIPTS OF RS. 8 67 693/- (RS. 6 25 213/- BY CHEQUE) RS. 1 01 500/- ARE PAYMENTS MADE BY CHEQUE TOWARDS THE EXPENSES RELATE D TO THE ITA NO. 691 & 694/PN/04 K. SHABEER BABU BLOCK PERIOD: 1992-93 TO 2002-03 7 RECEIPTS FOLLOWING THE MATCHING CONCEPT CREDIT FOR THE SAME WAS ACCORDINGLY GIVEN. THE UNDISCLOSED INCOME THEREFOR E WAS REQUIRED TO BE LIMITED TO RS. 7 66 193/- AND THE SAME WAS DI RECTED TO BE TAKEN AS UNDISCLOSED INCOME OF THE ASSESSEE FOR THE BLOCK PERIOD AS AGAINST RS. 1 54 000/- DISCLOSED BY THE ASSESSEE. WE DO NOT FIND ANY INFIRMITY IN THE ORDER OF THE CIT(A). WE ACCOR DINGLY UPHOLD THE ORDER OF THE CIT(A) AND DISMISS THE GROUNDS RAISED BY THE ASSESSEE. 6. IN THE RESULT BOTH THE APPEALS FILED BY THE ASS ESSEE ARE DISMISSED. PRONOUNCED IN THE OPEN COURT ON 27 TH OCTOBER 2010. SD/- SD/- (D. KARUNAKARA RAO) (SHAILENDRA KUMAR YADAV) ACCOUNTANT MEMBER JUDICIAL MEMBER PUNE DATED THE 27 TH OCTOBER 2010 ANKAM COPY FORWARDED TO: (1) ASSESSEE (2) DEPARTMENT (3) CIT- I PUNE (4) CIT(A)-I PUNE (5) THE D.R. A' BENCH PUNE TRUE COPY BY ORDER ASSISTANT REGISTRAR INCOME-TAX APPELLATE TRIBUNAL PUNE BENCHES PUNE