The ITO, Ward-2(1),, Surat v. Shri Sanjay Gaman Lal Choksi, Surat

ITA 4020/AHD/2007 | 1999-2000
Pronouncement Date: 21-05-2010 | Result: Dismissed

Appeal Details

RSA Number 402020514 RSA 2007
Assessee PAN ABKPC8620M
Bench Ahmedabad
Appeal Number ITA 4020/AHD/2007
Duration Of Justice 2 year(s) 6 month(s) 15 day(s)
Appellant The ITO, Ward-2(1),, Surat
Respondent Shri Sanjay Gaman Lal Choksi, Surat
Appeal Type Income Tax Appeal
Pronouncement Date 21-05-2010
Appeal Filed By Department
Order Result Dismissed
Bench Allotted D
Tribunal Order Date 21-05-2010
Date Of Final Hearing 19-05-2010
Next Hearing Date 19-05-2010
Assessment Year 1999-2000
Appeal Filed On 05-11-2007
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL : D BENCH : AHMEDABAD CAMP AT SURAT (BEFORE HONBLE SHRI T.K. SHARMA J.M. & HONBLE SH RI D.C. AGRAWAL A.M.) I.T.A. NO. 4020/AHD./2007 ASSESSMENT YEAR : 1999-2000 INCOME TAX OFFICER WARD-2(1) SURAT -VS.- SHRI SA NJAY GAMAN LAL CHOKSI SURAT (PAN : ABKPC 8620 M) (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI SANJEEV KASHY AP SR. D.R. RESPONDENT BY : SHRI T.R. MODY O R D E R PER SHRI T.K. SHARMA JUDICIAL MEMBER : THIS APPEAL FILED BY THE REVENUE IS AGAINST THE OR DER DATED 09.08.2007 OF LEARNED COMMISSIONER OF INCOME TAX(APPEALS)-II SURAT DELET ING THE ADDITION OF RS.25 90 000/- MADE BY THE ASSESSING OFFICER ON ACCOUNT OF UNEXPLAINED INV ESTMENT FOR THE ASSESSMENT YEAR 1999-2000. 2. BRIEF FACTS RELATING TO CONTROVERSY INVOLVED IN THIS GROUND OF APPEAL ARE THAT AN INTIMATION WAS RECEIVED FROM ACIT CENTRAL CIRCLE-1 SURAT THA T A SEARCH UNDER SECTION 132 OF THE IT ACT WAS CARRIED OUT AT THE RESIDENTIAL PREMISES OF SHRI HIREN V. SHAH. IN THE COURSE OF SEARCH A POWER OF ATTORNEY WAS FOUND WHICH STATED THAT THE ASSESEE HAD BEEN GIVEN POWER OF ATTORNEY BY ONE SMT. SAVITRI DEVI GROVER FOR AN IMMOVABLE PR OPERTY (LAND I.E. SURVEY NO. 72 TPS NO. 6 AND 26) AT PIPLOD SURAT AGAINST A CONSIDERATION OF RS.25 90 000/-. THE SAID SUM OF RS.25 90 000/- PAID BY THE ASSESSEE TO SMT. SAVITRI DEVI GROVER WAS NOT REFLECTED IN THE BOOKS OF ACCOUNTS OF THE ASSESSEE. SINCE THE INCOME OF THE A SSESSEE TO THE EXTENT OF RS.25 90 000/- HAD ESCAPED ASSESSMENT THE CASE OF THE ASSESSEE FOR AS SESSMENT YEAR 2004-05 WAS REOPENED UNDER SECTION 147 OF THE I.T. ACT VIDE NOTICE UNDER SECTI ON 148 OF THE I.T. ACT ON 30.03.2006. 2 ITA NO. 4020/AHD/200 7 2.1. THEREAFTER THE ASSESSING OFFICER FRAMED THE AS SESSMENT UNDER SECTION 144 READ WITH SECTION 147 OF THE ACT ON 29.12.2006 MAKING AN ADDI TION OF RS.25 90 000/- ON ACCOUNT OF UNEXPLAINED INVESTMENT. 3. ON APPEAL THE LD. CIT(A) VIDE ORDER DATED 09.08 .2007 DELETED THE SAID ADDITION BY HOLDING THAT WITHOUT THE DOCUMENT BEING NOTARIZED O R REGISTERED IT COULD NEITHER BE TREATED AS A FINAL DOCUMENT NOR COULD IT CARRY ANY EVIDENTIARY V ALUE AS THE POWER OF ATTORNEY WAS FOUND WITHOUT HAVING ANY SIGNATURE DURING THE COURSE OF S EARCH PROCEEDINGS. AGGRIEVED BY THE ORDER OF LD. CIT(A) THE REVENUE IS IN APPEAL BEFORE THE TRI BUNAL. 4. AT THE TIME OF HEARING BEFORE US ON BEHALF OF R EVENUE SHRI SANJEEV KASHYAP APPEARED AND CONTENDED THAT THE DECISION OF THE LD. CIT(A) I S NOT ACCEPTABLE FOR THE FOLLOWING REASONS :- (1) DURING FY 1998-99 THE ASSESSEE WAS DOING BROKER AGE BUSINESS ON SALE OF LAND AND WAS WORKING FOR SHRI HANSKAMAL GROVER WHO WAS A LAND DEALER. SMT. SAVITRI DEVI GROVER WAS THE MOTHER OF SHRI HANSKAMAL GROVER . AS PER THE SEIZED COPY OF POWER OF ATTORNEY THE ASSESSEE PAID RS.25 90 000/ - TO SMT. SAVITRI DEVI GROVER DURING FY 1998-99 FOR WHICH SMT. SAVITRI DEVI GROVE R HAD EXECUTED AN AGREEMENT IN THE FORM OF POWER OF ATTORNEY IN FAVOU R OF THE ASSESSEE. DURING THE ASSESSMENT PRCCEDINGS THE ASSESSEE ADMI9TTED THAT H E HAD GIVEN THE POWER OF ATTORNEY TO SHRI HIREN VASANTLAL SHAH FOR SALE OF L AND AND CONSIDERING THE KEEN INTEREST OF THE ASSESSEE TO SALE OF LAND THROUGH SH RI HIREN VASANTLAL SHAH THE ASSESSING OFFICER CAME TO CONCLUSION THAT THE ASSES SEE HAD PAID RS.25 90 000/- TO SMT. SAVITRI DEVI GROVER OUT OF HIS BOOKS OF ACCOUN T IN LIEU OF HIS POWER OF ATTORNEY EXECUTED IN HIS NAME. (2) THE ASSESSING OFFICER IN THE BODY OF THE ORDER HAS DISCUSSED AT LENGTH ABOUT THE MOVEMENT OF MONEY AND GENUINENESS THE TRANSACTI ON THROUGH THE POWER OF ATTORNEY. 5. ON THE OTHER HAND SHRI T.R. MODY APPEARING ON B EHALF OF THE ASSESSEE VEHEMENTLY SUPPORTED THE ORDER OF LD. CIT(A). THE LD. COUNSEL OF THE ASSESSEE EXPLAINED THAT SHRI HANSKAMAL GROVER WAS THE LAND GROVER WHO HAD PREPARED A FAKE POWER OF ATTORNEY SO THAT THE ASSESSEE COULD GET BUYERS FOR HIM ON THE STRENGTH OF THE SAI D DOCUMENT. THE DOCUMENT WAS BOGUS. THE LAND IN QUESTION NEITHER BELONGED TO SHRI HANSKAMAL GROVER NOR TO SMT. SAVITRIBEN GROVER. HE FURTHER SUBMITTED THAT NO PRUDENT MAN WOULD PAY ANY MONEY SIMPLY ON THE BASIS OF THE EXECUTION 3 ITA NO. 4020/AHD/200 7 OF A POWER OF ATTORNEY. TO SUM UP THE LD COUNSEL O F THE ASSESSEE CONTENDED THAT THE VIEW TAKEN BY THE LD. CIT(A) BE UPHELD. 6. AFTER HEARING BOTH THE SIDES WE HAVE CAREFULLY GONE THROUGH THE ORDERS OF AUTHORITIES BELOW AND PERUSED THE MATERIAL PLACED BEFORE US. FR OM THE RECORD WE FIND THAT IN THE IMPUGNED ORDER THE LD. CIT(A) HELD THAT THE DOCUMENT ITSELF WAS NOT LEGALLY VALID BECAUSE ACCEPTANCE BY THE ASSESSEE OF THE POWER OF ATTORNEY WAS NOT INDIC ATED. IT DID NOT CONTAIN THE SIGNATURE. THE SAID DOCUMENT WAS NOT NOTARIZED OR REGISTERED. THE SURRO UNDING FACTS CLEARLY SHOWED THAT SMT. SAVITRIDEVI GROVER COULD NOT HAVE LEGALLY EXECUTED THE POWER OF ATTORNEY BECAUSE SHE WAS NOT LEGALLY OWNER OF THE SAID PIECE OF LAND THEREFORE NO RELIANCE COULD BE PLACED ON SUCH A DOCUMENT. IN OUR OPINION THE LD. CIT(A) HAS GIVEN COGENT REASON FOR DELETING THE ADDITION OF RS.25 90 000/-. WE THEREFORE INCLINE TO UPHOLD TH E ORDER OF LD. CIT(A). 7. IN THE RESULT THE APPEAL FILED BY THE REVENUE I S DISMISSED. THE ORDER WAS PRONOUNCED IN THE COURT ON 21.05.2010 . SD/- SD/- (D.C. AGRAWAL) (T.K. SHARMA ) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 21 / 05 /2010 COPY OF THE ORDER IS FORWARDED TO : 1) THE ASSESSEE (2) THE DEPARTMENT. 3) CIT(A) CONCERNED (4) CIT CONCERNED (5) D.R. ITAT AHMEDABAD. TRUE COPY BY ORDER DEPUTY REGISTRAR ITAT AHMEDABAD LAHA/SR.P.S.