ACIT, CHENNAI v. Sh M.Surendra Dadha, CHENNAI

ITSSA 16/CHNY/2010 | misc
Pronouncement Date: 16-12-2010 | Result: Dismissed

Appeal Details

RSA Number 1621716 RSA 2010
Assessee PAN AABHS0305M
Bench Chennai
Appeal Number ITSSA 16/CHNY/2010
Duration Of Justice 5 month(s) 3 day(s)
Appellant ACIT, CHENNAI
Respondent Sh M.Surendra Dadha, CHENNAI
Appeal Type Income Tax (Search & Seizure) Appeal
Pronouncement Date 16-12-2010
Appeal Filed By Department
Order Result Dismissed
Bench Allotted C
Tribunal Order Date 16-12-2010
Date Of Final Hearing 13-12-2010
Next Hearing Date 13-12-2010
Assessment Year misc
Appeal Filed On 13-07-2010
Judgment Text
IN THE INCOMETAX APPELLATE TRIBUNAL:C- BENCH:CHENNA I (BEFORE SHRI ABRAHAM P. GEORGE. ACCOUNTA NT MEMBER AND SHRI GEORGE MATHAN JUDICIAL MEMBER) (1) IT(SS)A NO.16/MDS/2010 BLOCK PERIOD FROM 01- 04-1988 TO 15-12-1998 (2) IT(SS)A NO.17/MDS/2010 BLOCK PERIOD FROM 01- 04-1988 TO 15-12-1998 1) THE ACIT CENTRAL CIR.IV(2) CHENNAI 2) THE ACIT CENTRAL CIR.IV(2) CHENNAI VS. VS. SHRI SURENDRA DADHA 12 POES 4 TH ST. TEYNAMPET CHENNAI 600018 PAN AABHS0305M SMT.SNEHALATHA DADHA 12 POES 4 TH ST. TEYNAMPET CHENNAI 600018 PAN AAGPS8422D (APPLICANTS) (RESPONDENTS) APPLICANTS BY : RESPONDENTS BY: SRI TAPANKUMAR DUTTA CIT-DR SHRI D.ANAND ORDER PER ABRAHAM P.GEORGE ACCOUNTANT MEMBER THESE APPEALS FILED BY THE REVENUE ARE AGAINST THE ORDERS DATED 02-03-2010 OF THE CIT(A) IN RESPECT OF THE MENTIONED ASSESSEES FO R THE IMPUGNED BLOCK PERIODS. IT(SS)A NOS.16 & 17/MDS/10 2 2. COMMON GROUND HAS BEEN TAKEN BY THE REVENUE IN B OTH THESE APPEALS WHICH IS REPRODUCED HEREUNDER: 1.A ON THE FACTS AND IN THE CIRCUMSTANCES OF THE C ASE THE LD. CIT(A) HAS ERRED IN DELETING THE ADDITION OF ` 1 95 99 865/- MADE BY THE AO TOWARDS UNDISCLOSED IN COME ON SALE OF SHARES AND INTEREST. 1.B THE LD. CIT(A) HAS FAILED TO CONSIDER THAT TH E ISSUE HAS NOT BECOME FINAL AND THAT THE DEPARTMENT HAS FILED APPEAL BEFORE THE HON. HIGH COURT AGAINST THE DECISIONS OF THE ITAT RELIED UPON BY HIM IN THE CASE OF S.MOHANCHAND DADH A (HUF) IN IT(SS)A NO.178/MDS/2005 DATED 16-11-2007 AND IN THE CASES OF SHRI M.MEHERCHAND DADHA AND ORS . IN IT(SS)A NOS.172 173 174 176 AND 177/MDS/20056 DATED 16-11-2007. 3. THE ADDITIONS WHICH WERE DELETED BY THE CIT(A) I N THE APPEALS OF THE ASSESSEE WHICH HAVE BEEN ASSAILED BY THE REVENU E IS IN RESPECT OF THE UNDISCLOSED INCOME ON SALE OF SHARES AND INTEREST T HEREON COMING TO ` 1 95 99 865/- AND ` 60 42 847/- RESPECTIVELY FOR SHRI SURENDRA DADHA AND SMT.SNEHALATHA DADHA. THE FINDINGS OF THE LD.CI T(A) IN THIS REGARD AND THE FACTS RELATING TO THE ISSUE COMES OUT OF PA RA-7 TO 9 OF THE ORDER OF THE CIT(A) IN THE CASE OF SHRI SURENDRA DADHA RE PRODUCED HEREUNDER: 7. A SEARCH U/S 132 OF THE I.T.ACT 1961 WAS CONDU CTED IN THE PREMISES OF SPIL GROUP OF COMPANIES AND THEIR DIREC TORS ON 7-12- 1998 AND A SEARCH WAS CARRIED OUT IN DADHA GROUP OF CASES ON 15- 12-1998.OPN THE BASIS OF CERTAIN LOOSES SHIRTS OF P APER SEIZED FROM SPIL AND THE O/O SHRI MAHENDRA DADHA THE AO HELD I N THE BLOCK ASSESSMENT ORDER THAT DADHA GROUP SHARES IN TDPL WE RE SOLD BY IT(SS)A NOS.16 & 17/MDS/10 3 THEM TO SPIL AT ` 290 PER SHARE OF WHICH ` 200 WAS TO BE PAID BY CASH AND THE BALANCE AMOUNT WAS TO BE PAID BY CHEQU E AND THE AMALGAMATION OF TDPL WAS NOT REAL BUT SHAM. HE ALSO HELD THAT THE DADHA GROUP ALSO RECEIVED INTEREST FOR DELAYED PAYM ENT OF SALE CONSIDERATION BY SPIL. BASED ON THIS THE AO DETERMI NED THE UNDISCLOSED INCOME IN THE CASE OF THE APPELLANT AT ` 1 95 99 865/- ( ON ACCOUNT OF SALE OF SHARES OF TDPL AT ` 290 PER SHARE ` 1 87 59 520/- AND INTEREST ` 8 40 345/- ). 8. DURING THE APPELLATE PROCEEDINGS THE LEARNE D AR OF THE APPELLANT SUBMITTED THAT IT WAS DECIDED BY THE HON BLE ITAT A BENCH CHENNAI IN THE CASE OF S.MOHANCHAND DADHA ( HUF) (IT (SS)A NO.178/MDS/2005 DATED 16-11-2007) AND IN THE CASES OF SHRI M.MEHERCHAND DADHA AND OTHERS (IT (SS)A NO.172 173 174 176 177/MDS/2005 DATED 16-11-2007) T HAT THERE WAS NO SALE OF SHARES AND SO THERE WAS NO UND ISCLOSED INCOME FROM SALE OF SHARES. HE SUBMITTED THAT THE HON. ITA T HAS DELETED THE ADDITION OF UNDISCLOSED INCOME ON ACCOUNT OF SA LE OF SHARES AND INTEREST. HE SUBMITTED THAT THE FACTS AND CIRCUMSTA NCES THE EVIDENCES THE REASON AND LOGIC BY THE AO IN MAKING THE ADDITION IN THE CASE OF THE APPELLANT ARE EXACTLY THE SAME BASE D ON WHICH ADDITIONS WERE MADE IN THOSE CASES. HE SUBMITTED TH AT FOLLOWING THE ORDERS OF THE HON. ITAT THE ADDITION OF ` 1 95 99 865/- AS UNDISCLOSED INCOME ON SALE OF SHARES AND INTEREST B Y THE AO SHOULD BE DELETED. 4. THESE PARAS APPEAR IN THE ORDER OF SMT.M.SNEHALA THA DADHA ALSO EXCEPT FOR CHANGE IN FIGURES. 5. AS IS CLEAR FROM THE ORDER OF THE CIT(A) HE HAD RELIED ON THE DECISION OF THE COORDINATE BENCH OF THIS TRIBUNAL I N THE CASE OF SRI S.MOHANCHAND DADHA (HUF) AND SRI M.MEHARCHAND DADHA & ORS. AND THESE WERE ON THE SAME FACTS. THOUGH THE REVENUE IN ITS APPEAL HAS STATED THAT DEPARTMENT HAS FILED FURTHER APPEALS BEFORE HO NBLE JURISDICTIONAL IT(SS)A NOS.16 & 17/MDS/10 4 HIGH COURT AGAINST THE DECISIONS OF THE TRIBUNAL R ELIED ON BY THE CIT(A) FOR GIVING A RULING IN FAVOUR OF THE ASSESSEE NOTH ING WAS BROUGHT ON RECORD BY THE LD. DR TO SHOW THAT THE DECISION OF T HE TRIBUNAL RELIED ON BY THE CIT(A) HAS BEEN OVERRULED. WE ARE THEREFORE OF THE OPINION THAT THE LD. CIT(A) WAS JUSTIFIED IN DELETING THE ADDITI ONS MADE. NO INTERFERENCE IS CALLED FOR. 6. APPEALS OF THE DEPARTMENT ARE DISMISSED. ORDER WAS PRONOUNCED IN THE OPEN COURT ON 16 -12 -2010. SD/- SD/- ( GEORGE MATHAN) (ABRAHAM P. GEORGE) JUDICIAL MEMBER ACCOUNTANT MEMBER CHENNAI: 16TH DEC. 2010 NBR CC: ASSESSEE/ ASSESSING OFFICER/ CIT(A)/ CIT/ D .R/ GUARD FILE.