2012 (11) TMI 616 - AT - Income Tax

Additions towards business income from lease of buses Held that - As the same issue has been duly consider by ITAT, Chennai B Bench in assessee s own case while considering the appeals for the Assessment Years 2002-03 to 2006-07 filed before it and deleted similar additions after examining the facts of the case. Issue decides in favour of assessee Additions on account of interest and chit bazar Held that - The Tribunal also had considered the appeals in the case of very same assessee for AY 2002-03 to 2006-07, this issue has not been raised therein. In these circumstances, justified in following his earlier orders and granting relief to the assessee.. Issue decides in favour of assessee Addition on account of unexplained money Cash found during search - Books of accounts were not available at the time of search - Assessee had maintained books and they were produced before the assessing authority - Books were not rejected in the course of assessment Held that - When we consider the entire aspects, in view of the fact that the cash balance was available in her hands as per cash book. The CIT(A) has deleted the addition of Rs.17 lakhs on sound and reasonable ground. In favour of assessee Addition on account of unexplained investment - Gold jewellery and diamonds Held that - The assessee coming from an affluent family, reasonable amount of jewellery was received at the time of marriage and other occasions from her parents and other close relatives. As examined the statements made by different persons at the time of search and has tabulated the details of gold ornaments available in the hands of different persons and has reasonably worked out the account of gold jewellery in the hands of the assessee.. In favour of assessee

Summary

Issues:
1. Deletion of additions made by the Assessing Officer towards business income from lease of buses.
2. Deletion of addition against interest and chit kazar.
3. Deletion of addition made towards unexplained money.
4. Deletion of addition against unexplained investment in gold jewellery and diamonds.

Deletion of additions towards business income from lease of buses:
The Revenue challenged the deletion of additions made by the Assessing Officer towards business income from the lease of buses. The Tribunal noted that a similar issue had been considered in the assessee's own case for earlier assessment years, where the Tribunal had deleted similar additions. As the issue was already covered by the Tribunal's decision, the Commissioner of Income Tax(Appeals)'s order was deemed sustainable in law.

Deletion of addition against interest and chit kazar:
The Revenue contested the deletion of an addition made against interest and chit kazar. The Commissioner of Income Tax(Appeals) had based his decision on favorable outcomes in earlier assessment years for the same assessee. Given that the issue had not been raised in previous appeals, the Tribunal upheld the Commissioner's decision to grant relief to the assessee.

Deletion of addition towards unexplained money:
The Revenue objected to the deletion of an addition made towards unexplained money. The Commissioner of Income Tax(Appeals) extensively analyzed the issue, considering the cash balances, bus operations, sale of assets, and chit fund income of the assessee. The Commissioner found that the explanations and evidence provided by the assessee were reasonable and supported by the available cash balances. Consequently, the Tribunal agreed with the Commissioner's decision to delete the addition of Rs.17 lakhs.

Deletion of addition against unexplained investment in gold jewellery and diamonds:
The Revenue disputed the deletion of an addition made against unexplained investment in gold jewellery and diamonds. The Commissioner of Income Tax(Appeals) meticulously examined the ownership and acquisition of the jewellery, considering various family members' contributions and the financial support received by the assessee. After detailed scrutiny, the Commissioner accepted the genuineness of certain gold ornaments and justified the deletion of the addition related to diamonds. The Tribunal concurred with the Commissioner's findings, concluding that no interference was warranted in this matter.

In conclusion, the Tribunal dismissed the appeal filed by the Revenue, upholding the decisions made by the Commissioner of Income Tax(Appeals) regarding the deletions of various additions made by the Assessing Officer.