CHHAYA VIKAS SHAH L/H OF LATE VIKAS A. SHAH,,AHMEDABAD vs. THE DY. CIT, CENTRAL CIRCLE-2(1),, AHMEDABAD

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ITSSA 392/AHD/2017Status: DisposedITAT Ahmedabad08 October 2024AY 2003-0413 pages

In favour of the Revenue: the assessee's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that the CIT(A)'s findings were justified and upheld the confirmed additions. Regarding the addition of Rs. 28,30,475/- (AY 2002-03), the Tribunal noted that the CIT(A) had focused on the remaining 20.30 bighas of land after accepting the assessee's claim that 49.38 bighas were sold in earlier years. The CIT(A) found unexplained investment in land at Survey No. 221, Village Motera, based on a registered sale deed and an unregistered Samjuti Karar. The assessee's claim of non-payment due to land possession issues was not substantiated. The Tribunal found no reason to interfere with the CIT(A)'s findings, stating that the assessee's failure to provide substantial evidence justified the addition. The appeal on this ground was dismissed. Regarding the addition of Rs. 48,53,040/- (AY 2003-04), the Tribunal found no reason to interfere with the CIT(A)'s decision, which upheld the AO's conclusion based on the registered sale deed and Samjuti Karar, as the assessee failed to provide substantial evidence. The appeal on this ground was dismissed. Concerning the peak credit addition of Rs. 12,11,879/- (AY 2003-04), the Tribunal concurred with the CIT(A)'s reasoning that the assessee failed to provide sufficient proof of an opening cash balance, thus the peak credit was correctly calculated based on the cash flows for the year. The CIT(A) correctly granted partial relief for the proven cash receipts of Rs. 3,10,000/-. The Tribunal dismissed this ground as the assessee failed to provide additional evidence. The Tribunal expressly left undecided the specific arguments regarding the jurisdiction of the AO for agriculture income and expense disallowance, as the primary grounds concerning the substantive additions were dismissed.

What were the facts?

The appeals by the assessee, Late Vikas A. Shah (represented by his legal heir Chhaya Vikas Shah), concern Assessment Years 2002-03 and 2003-04. The appeals arise from orders passed by the Assessing Officer (AO) under Section 153A(b) read with Section 144 of the Income Tax Act, 1961, following a search under Section 132 on 09/02/2005. The AO made additions based on seized documents, including a Memorandum of Understanding (MoU) dated 16/05/2001 concerning land sale. The Commissioner of Income Tax (Appeals) -12, Ahmedabad (CIT(A)), confirmed most of these additions. The Tribunal had previously remanded the matter to the CIT(A) for re-examination. The CIT(A), post-remand, granted some relief but confirmed net additions of Rs. 28,30,475/- for AY 2002-03 and Rs. 5,68,260/- for AY 2003-04.

What were the issues?

The Tribunal had to decide the following issues: 1. Whether the CIT(A) erred in confirming the addition of Rs. 28,30,475/- for AY 2002-03, which was part of a larger addition of Rs. 6,34,52,484/- made by the AO on surmises and conjectures, contrary to the facts and evidence placed on record, as per Section 153A read with Section 144. 2. Whether the CIT(A) erred in confirming the addition of Rs. 8,27,000/- (agriculture income) for AY 2002-03, which was beyond the AO's jurisdiction as it was not relatable to evidence found as a result of the search, as per Section 153A. 3. Whether the CIT(A) erred in confirming the addition of Rs. 40,000/- for AY 2002-03, which was part of a Rs. 4,01,160/- disallowance of expenses, and was beyond the AO's jurisdiction as it was not relatable to evidence found as a result of the search, as per Section 153A. 4. Whether the CIT(A) erred in confirming the addition of Rs. 48,53,040/- for AY 2003-04, made by the AO without proper consideration and appreciation of the facts, as per Section 153A read with Section 144. 5. Whether the CIT(A) erred in confirming the addition of Rs. 12,11,879/- (peak credit addition) for AY 2003-04, out of a total addition of Rs. 15,21,879/-, without proper consideration of the appellant's submissions and contentions, as per Section 153A. Assessee's contentions: The assessee argued that the addition of Rs. 28,30,475/- was based on surmises and required deletion. The agriculture income addition of Rs. 8,27,000/- and expense disallowance of Rs. 40,000/- were beyond the AO's jurisdiction as they were not related to search findings. The addition of Rs. 48,53,040/- and the peak credit addition of Rs. 12,11,879/- were made without proper consideration of facts and evidence. Revenue's contentions: The judgment records no specific contentions for the revenue, but it implies the revenue supported the AO's and CIT(A)'s findings.

Which sections of the Income-tax Act were involved?

Section 153A,Section 144,Section 132

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “ D ” BENCH, AHMEDABAD

Before: SHRI T.R. SENTHIL KUMAR & SHRI MAKARAND V. MAHADEOKAR

For Appellant: Shri Suresh Gandhi, A.R
Hearing: 23/09/2024Pronounced: 08/10/2024

आदेश की &ितिलिप अ'ेिषत/Copy of the Order forwarded to : 1. अपीलाथ( / The Appellant 2. &)थ( / The Respondent. संबंिधत आयकर आयु* / Concerned CIT 3. 4. आयकर आयु* अपील ( ) / The CIT(A)-12, Ahmedabad 5. िवभागीय &ितिनिध आयकर अपीलीय अिधकरण राजोकट/DR,ITAT, Ahmedabad, , , गाड� फाईल / 6. Guard file.

आदेशानुसार/ BY ORDER, स)ािपत &ित //True Copy// सहायक पंजीकार (Asstt. Registrar) आयकर अपीलीय अिधकरण, ITAT, Ahmedabad

Date of dictation (word processed by Hon’ble AM in his laptop) : 1. 03.10.2024 : 03.10.2024 2. Date on which the typed draft is placed before the Dictating Member. Date on which the approved draft comes to the Sr.P.S./P.S : 3. : 4. Date on which the fair order is placed before the Dictating Member for pronouncement. : 5. Date on which fair order placed before Other Member : 8.10.24 6. Date on which the fair order comes back to the Sr.P.S./P.S. : 8.10.24 7. Date on which the file goes to the Bench Clerk. : 8. Date on which the file goes to the Head Clerk. : 9. The date on which the file goes to the Assistant Registrar for signature on the order. : 10. Date of Despatch of the Order

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