Shri Manoharlal Chhabria, v. The DCIT, 3(1),

ITSSA 81/IND/2005 | misc
Pronouncement Date: 22-01-2010 | Result: Dismissed

Appeal Details

RSA Number 8122716 RSA 2005
Assessee PAN AANPC1879Q
Bench Indore
Appeal Number ITSSA 81/IND/2005
Duration Of Justice 4 year(s) 7 month(s) 15 day(s)
Appellant Shri Manoharlal Chhabria,
Respondent The DCIT, 3(1),
Appeal Type Income Tax (Search & Seizure) Appeal
Pronouncement Date 22-01-2010
Appeal Filed By Assessee
Order Result Dismissed
Bench Allotted DB
Tribunal Order Date 22-01-2010
Date Of Final Hearing 21-01-2010
Next Hearing Date 21-01-2010
Assessment Year misc
Appeal Filed On 06-06-2005
Judgment Text
- 1 - THE INCOME TAX APPELATE TRIBUNAL INDORE BENCH INDORE BEFORE SHRI JOGINDER SINGH AND SHRI V.K. GUPTA AM IT(SS)A NO.95/IND/05 BLOCK PERIOD 1.4.1992 TO 16.5.2000 ASSTT. COMMR. OF INCOME TAX 3(1) BHOPAL APPELLANT VS M/S KARISHMA ENTERPRISES BHOPAL PAN AANPC 1879Q RESPONDENT IT(SS)A NO.81/IND/05 BLOCK PERIOD 1.4.1992 TO 16.5.2000 M/S KARISHMA ENTERPRISES BHOPAL APPELLANT VS ASSTT. COMMR. OF INCOME TAX 3(1) BHOPAL RESPONDENT REVENUE BY SHRI SHRI K.K. SINGH CIT DR RESPONDENT BY SHRI S.S. DESHPANDE CA - 2 - O R D E R PER BENCH THE APPEAL FIELD BY THE REVENUE ARISES OUT OF THE ORDER DATED 17.3.2005 OF THE LEARNED CIT(A). THE APPEAL FILED BY THE ASSESSEE ARISE OUT OF THE ORDER OF THE LEARNED CIT(A) DATED 17.3.2005. 2. WE HAVE HEARD BOTH THE PARTIES AND HAVE ALSO PER USED THE MATERIAL ON RECORD. 3. THE LEARNED COUNSEL AT THE OUTSET SUBMITTED TH AT THERE WAS A SEARCH ACTION AGAINST CHHABRIA GROUP. DURING THE COURSE OF SEARCH CERTAIN DOCUMENTS WERE FOUND WHICH INDICATE D BUSINESS TRANSACTIONS OF M/S KARISHMA ENTERPRISES A PROPRIE TARY CONCERN OF SHRI RAM ELANI HOWEVER THE SUBSTANTIVE ADDITION W AS MADE IN THE HANDS OF SHRI MANOHARLAL CHHABRIA AND THE PROTECTIV E ASSESSMENT WAS MADE IN THE HANDS OF SHRI RAM ELANI. THE CIT(A ) ALSO HELD THAT SHRI MANOHARLAL CHHABRIA WAS THE REAL OWNER OF THE BUSINESS OF M/S KARISHMA ENTERPRISES BUT HE DELETED THE MAJO RITY OF ADDITIONS ON MERIT. THE CIT(A) ALSO CANCELLED THE ORDER PASSED IN THE CASE OF SHRI RAM ELANI ON PROTECTIVE BASIS. IN REGARD TO CERTAIN ISSUES THE CIT(A) REMANDED THE MATTER BACK TO THE FILE OF THE - 3 - ASSESSING OFFICER IN THE CASE OF THE ASSESSEE WHO R EDETERMINED THE INCOME OF THE ASSESSEE. IN THE MEANWHILE AGAI NST THE ORIGINAL ORDER OF THE LEARNED COMMISSIONER OF INCOMETAX (APP EALS) THE DEPARTMENT HAD PREFERRED AN APPEAL BEFORE THE TRIBU NAL WHO VIDE ITS ORDER DATED 30.1.2009 IN THE CASE OF BOTH THESE ADDITIONS HELD THAT SHRI RAM ELANI WAS THE REAL OWNER OF THE BUSIN ESS OF M/S KARISHMA ENTERPRISES HENCE THE SUBSTANTIVE ADDITI ON SHOULD HAVE BEEN MADE IN THE CASE OF THAT FIRM. ACCORDINGLY S IMILAR ADDITIONS MADE IN THE HANDS OF THE ASSESSEE WERE DELETED. TH E LEARNED COUNSEL IN SUPPORT OF SUCH PROVISIONS REFERRED TO P AGES 36 TO 40 OF THE ORDER OF THE TRIBUNAL. THE LEARNED COUNSEL ACC ORDINGLY CONTENDED THAT THESE APPEALS WERE INFRUCTUOUS. THE LEARNED DR COULD NOT CONTROVERT THE CLAIMS OF THE ASSESSEE. H OWEVER HE PREFERRED TO RELY UPON THE ORDER OF THE ASSESSING O FFICER IN THE CASE OF REVENUES APPEAL AND ON THE ORDERS OF THE REVENU E AUTHORITIES IN THE CASE OF THE ASSESSEES APPEAL. 4. WE HAVE CONSIDERED THE SUBMISSIONS MADE BY BOTH THE SIDES MATERIAL ON RECORD AND THE ORDERS OF THE AUT HORITIES BELOW. IT IS NOTED THAT THE TRIBUNAL IN THE IMPUGNED ORDER HE LD THAT SHRI RAM ELANI WAS THE REAL OWNER OF M/S KARISHMA ENTERPRISE S HENCE THE - 4 - ADDITION MADE IN THE HANDS OF THE ASSESSEE ON SUBST ANTIVE BASIS ON THE BASIS OF THE CIT(A)S ORIGINAL ORDER WHICH IS THE SUBJECT MATTER OF THE PRESENT APPEALS HAS BECOME INFRUCTUO US. ACCORDINGLY BOTH THESE APPEALS ARE DISMISSED AS IN FRUCTUOUS. 5. IN THE RESULT THE ASSESSEES APPEAL AS WELL AS THE REVENUES APPEAL ARE DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 22 ND JANUARY 2010. SD SD (JOGINDER SINGH) (V.K. GUPTA) JUDICIAL MEMBER ACCOUTNANT MEMB ER JANUARY 22 ND 2010 COPY TO APPELLANT RESPONDENT CIT CIT(A) DR GU ARD FILE DN/