KUMAR SUMAN SINGH,PATNA vs. DCIT CENTRAL CIRCLE-2, PATNA

Aggrieved by the above order, the assessee went in appeal before the ld. CIT(A) but the assessee could not succeed there and the ld. CIT(A) considering the submissions of the assessee granted certain relief but major additions were upheld by the ld. CIT(A).

Dissatisfied, the assessee has come in appeal before this Tribunal raising the following grounds:

For that the CIT(A) has erred in confirming the addition of Rs.1,00,000/- on account of household expenses including payment of insurance premium. 3 For that the CIT(A) has wrongly included the income of Rs.7,59,520/- assessed in the hands of one Shri Indrajeet Kumar/Prasad Singh as the income of the appellant.

For that the assessment order in otherwise bad in fact and law and fit to be modified.

For that the appellant may be allowed to urge additional grounds, if any.”

Ground No.1 – In respect of ground no.1 which is relating to legality of proceedings initiated u/s 153A, the ld. DR stated that the search operation was conducted based on credible information and substantial unaccounted income was discovered during the search operation. Therefore, the initiation of proceedings u/s 153A was correct and proper and he prayed for dismissal of the ground.

We, after examining the facts of the case and submission made by the ld. DR, find that the search operation was carried out based on valid information gathered against the assessee along with associates/relatives and large scale investments were also found by the to 216/Pat/2023 Assessment Years: 1998-99 & 2001-02 to 2004-05 Kumar Suman Singh department during the relevant year. Accordingly, the Assessing Officer initiated proceedings u/s 153A of the Act and the assessment was completed making some additions on the basis of substantial unaccounted income after giving due opportunity to the assessee. Moreover, we note that the order passed u/s 263 of the Act passed by the ld. CIT(Central), Patna had already upheld by the ITAT in its order dated 01.02.2008 and the order passed by the Tribunal attained finality as it was not challenged before any higher forum. Therefore, this ground taken by the assessee is hereby dismissed.

Ground No.2 – In respect of ground no.2 which is relating to confirmation of addition of Rs.1,00,000/- on account of household expenses including payment of insurance premium, the ld. DR stated that the assessee has used multiple alias names including Indrajeet Singh which is evident from the documents such as LIC policy and bail petition filed by the Hon’ble Patna High Court. He also stated that the Assessing Officer after making detailed enquiries concluded that Indrajeet Singh was not a separate individual but another alias name used by the assessee and accordingly, the income assessed in the name of Indrajeet Singh was assessed in the hands of the assessee.

We find that the Assessing Officer made an addition of Rs.1,00,000/- on account of low withdrawal for the assessment year in question. However, the ld. CIT(A) after considering the present issue granted partial relief to the assessee to the extent of Rs.64,000/- observing as under:

Ground No.3 – In respect of ground no.3 which is relating to inclusion of income by the ld. CIT(A) of Rs.7,59,520/- in the hands of Sri Indrajeet Singh as income of the assessee, the ld. DR stated that this fact emerged from the bail petition filed before the Hon’ble Patna High Court in Criminal Misc. No.879 of 2006, which shows that the assessee is known as Ranjit Singh/Indrajit Singh. The ld. DR also stated that on perusal of the copy of L.I.C. policy no. 512001452 and policy no. 512001422, it was found that the policy holder is Shri Indrajeet Kumar and nominee/assignee is Shri Shyam Sundar Prasad and column for relative with the policy holder bears the term 'father' and Family chart of the assessee shows that Shri Kumar Suman Singh, S/o Shri Shyam Sundar Prasad has no any brother with the name 'Indrajeet Kumar'. Thus, it is amply clear that the person with the name Indrajeet Kumar/Prasad is none else, but Shri Kumar Suman Singh himself. The ld. DR concluded that the ld. CIT(A) in this respect has rightly upheld the addition of Rs.7,59,520/- in the hands of the assessee.

We, after examining the facts of the case and submission made by the ld. DR, find that the assessee had used multiple alias names such as Indrajeet Kumar (Singh) and Ranjit Singh which was clearly evident from the bail petition filed before Hon’ble Patna High Court. We also find that income assessed in the name of Indrajeet Kumar in the hands of the assessee as there was no separate existence found for different proceedings by the Assessing Officer. Therefore, we find that the ld. CIT(A) has rightly upheld the order of the ld. CIT(A) in respect of inclusion of income of Rs.7,59,520/- in the hands of Sri Indrajeet Singh to 216/Pat/2023 Assessment Years: 1998-99 & 2001-02 to 2004-05 Kumar Suman Singh as income of the assessee. We also dismiss this ground taken by the assessee.

Ground Nos.4 & 5 – These grounds taken by the assessee are general in nature and do not require any adjudication.

For that the CIT(A) has erred in confirming the addition of Rs.51,055/- as unexplained expenditure. 3 For that the CIT(A) has not justified in confirming the addition of Rs.3,00,000/- being gift received from Grandmother.

For that the CIT(A) has wrongly included the income of Rs.5,54,740/- assessed in the hands of one Shri Indrajeet Kumar/Prasad Singh as the income of the appellant.

For that the assessment order in otherwise bad in fact and law and fit to be modified.

For that the appellant may be allowed to urge additional grounds, if any.”

Since the facts and issues involved in the present appeal apart from difference in figures of amounts involved are identical to that has been discussed in 2001-02 to 216/Pat/2023 Assessment Years: 1998-99 & 2001-02 to 2004-05 Kumar Suman Singh except Ground No.3, hence, our findings/directions given in the remaining grounds except ground no.3 will mutatis mutandis apply to the present appeal i.e.

Ground No.3 - In respect of ground no.3 which is relating to confirmation of the addition of Rs.3,00,000/- being gift received from grandmother, the ld. DR stated that the assessee’s grandmother namely Smt. Pano Devi had no resource which can substantiate the gift given to the assessee at Rs.3,00,000/- for the assessment year 2003-04 and the ld. CIT(A) has rightly dismissed the ground of the assessee observing as under:

We, after examining the facts of the case and submission made by the ld. DR, note that the assessee has failed to prove his claim before the Assessing Officer as well as before the ld. CIT(A) regarding the confirmation of the addition of Rs.3,00,000/- received as gift from grandmother i.e. Smt. Pano Devi during the relevant assessment year. Since, the donor Smt. Pano Devi, grandmother of the assessee, has no disclosed source to substantiate the claim of gift made to the assessee, we accordingly uphold the order of the ld. CIT(A). This ground of the assessee is dismissed.

For that the CIT(A) has erred in confirming the addition of Rs.40,000/- as income from business where the appellant was in jail in that period. 3 For that the CIT(A) has not justified in treating the deposit of Rs.54,000/- in bank account as unexplained.

For that the CIT(A) has wrongly included the income of Rs.1,32,710/- assessed in the hands of one Shri Indrajeet Kumar/Prasad Singh as the income of the appellant.

For that the assessment order in otherwise bad in fact and law and fit to be modified.

For that the appellant may be allowed to urge additional grounds, if any.”

Since the facts and issues involved in the present appeal apart from difference in figures of amounts involved are identical to that has been discussed in 2001-02 except Ground No.2, hence, our findings/directions given in the remaining grounds except Ground No.2 & Ground No.3 will mutatis mutandis apply to the present appeal i.e.

Ground No.2 - Ground no.2 is relating to confirmation of the addition of Rs.40,000/- as income from business where the assessee was in jail in that period of time, therefore, the addition sustained by the ld. CIT(A) is not correct and liable to be dismissed. In respect of this ground, the ld. DR stated that while framing the assessment order, an addition of Rs.80,000/- was made on estimation basis in the hands of the assessee and the assessee did not come forward to submit necessary documents to 216/Pat/2023 Assessment Years: 1998-99 & 2001-02 to 2004-05 Kumar Suman Singh in the relevant assessment year. He further stated that the ld. CIT(A), after considering the facts, found that the Assessing Officer has failed to bring any positive material to prove existence or continuation of onion business and the ld. CIT(A) in the interest of justice granted partial relief to the assessee to the extent of Rs.40,000/-.

We, after examining the facts of the case and submission made by the ld. DR, find that in the instant issue, the Assessing Officer has not brought on record any material or valid proof in order to validate the existence or continuation of onion business of the assessee. Therefore, the alleged addition made by the Assessing Officer of Rs.80,000/- in the hands of the assessee was not correct and accordingly the instant ground taken by the assessee is allowed. Accordingly, we delete the entire addition of Rs.80,000/- in the hands of the assessee. This ground of the assessee is allowed.

Ground No.3 - Ground no.3 is relating to treating of Rs.54,000/- in bank account as unexplained income of the assessee. In this regard, the ld. DR stated that the issue of gift from grandmother has been discussed in detailed by the ld. CIT(A) in his order for the assessment year 2003-04 in appeal no.CIT(A), Patna-3/10262/2007-08 where the genuineness of the transaction and creditworthiness of the grandmother was not proved. Therefore, the gift of Rs.54,000/- as alleged by the assessee was not allowed and the ld. CIT(A) sustained the addition. Therefore, the ld. DR has not found any infirmity drawn in the order of the ld. CIT(A) in respect of this ground.

We, after examining the facts of the case and submission made by the ld. DR, find that in the assessment year 2003-04 in appeal no.CIT(A), Patna-3/10262/2007-08 has elaborately discussed the issue and the assessee could not controvert the facts before the ld. CIT(A) during the to 216/Pat/2023 Assessment Years: 1998-99 & 2001-02 to 2004-05 Kumar Suman Singh appellate proceedings and the ld. CIT(A) upheld the addition of Rs.54,000/-. We find no infirmity in the order of the ld. CIT(A) in this respect. Accordingly, this ground challenged by the assessee is hereby dismissed. is partly allowed.

For that the assessment order in otherwise bad in fact and law and fit to be modified.

For that the appellant may be allowed to urge additional grounds, if any.”

In this appeal, the assessee has challenged one issued relating to addition made in respect of opening balance as on 01.04.1997 shown by the assessee at Rs.2,68,385/- as income of the assessee from undisclosed sources and the addition was added to the income of the assessee by the Assessing Officer and subsequently sustained by the ld. CIT(A), which was not correct. On this context, the ld. DR stated that the ld. CIT(A) in his order has already discussed the facts in details while passing the order at para no.6, which is as under:

The ld. DR stated that at the time of framing of the assessment order, the assessee could not furnish any credible documentary evidences in order to prove the opening capital balance of Rs.2,68,385/-. He also stated that the Assessing Officer therefore has rightly added the alleged amount as undisclosed income in the hands of the assessee. The assessee has furnished a copy of affidavit dated 06.07.2006 stating that the assessee had sold Bajaj 4-S, Champion Motor Cycle at Rs.35,000/- which was after the passing of assessment order dated 10.02.2006 and the assessee failed to bring relevant documents in order to prove the alleged opening capital of Rs.2,68,385/- on 01.04.1997 and accordingly, the ld. CIT(A) has rightly upheld the order of the Assessing Officer. He, therefore, prayed that this ground taken by the assessee needs to be dismissed.

We, after examining the facts of the case and submission made by the ld. DR, find that the assessee could not controvert the facts by producing documentary evidence in order to prove the instant issue of opening capital of Rs.2,68,385/-. We note that before the ld. CIT(A), the assessee simply submitted copy of an affidavit dated 06.07.2006 which was after the passing of assessment order dated 10.02.2006, therefore, to 216/Pat/2023 Assessment Years: 1998-99 & 2001-02 to 2004-05 Kumar Suman Singh the Assessing Officer did not consider the same. We further note that the view taken by the ld. CIT(A) is correct and we find no infirmity in the order of the ld. CIT(A) on this ground. Accordingly, we dismiss the present ground taken by the assessee.

Ground No.2 & 3 are consequential in nature and do not require any adjudication. is dismissed.