9911796707
TMI Blog2019 (9) TMI 457X X X X Extracts X X X X X X X X Extracts X X X X ..... above shall then pass a speaking order in accordance with law. - ITA No. 1224/CHD/2018 - - - Dated:- 29-8-2019 - Smt. Diva Singh, JM For the Assessee : Shri Gaurav Sharma For the Revenue : Shri Shiv Swaroop Sharma ORDER The present appeal has been filed by the assessee assailing the correctness of the order dated 16.07.2018 of CIT(A)-1, Ludhiana pertaining to 2014-15 assessment year on the following grounds : 1. That on the facts and the circumstances of the case, the order of ld. CIT(A) is bad in law. 2. That the Worthy CIT(A) has erred in sustaining an addition of ₹ 5,65,000/- in the income of the Assessee under Section 68 of the Act on account of unexplained Cash Credits. 3. That the addition sustained by the Id. CIT(A) are against the facts and circumstances of the case. 4. That the Worthy CIT(A) has erred in concluding that the Source of ₹ 5,65,000/- have not been proved. 5. That the Appellant craves leave to add/amend any ground of appeal during the course of Appellate Proceedings. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 65,000/- made in her HDFC saving bank account which is recorded in the books of her account which is recorded in the books of her account. It is also visible from the copies of bills produced that to justify her story the assessee has managed the copies of bills according to the ratio of 35:65. The number of voucher entries shown in the cash book are of 1 to 343 whereas as per copy of bills produced the Serial Number of Bill starts with Sr.No. 309 on 01.04.2013 and ends with Sr. No, 1501 on 21.03.2014. This proves that there must be minimum 1193 (1501 -308} entries in the cash book during the year as against 343 entries shown in the cash book. There is no link with the income shown by the assessee from BOUTIQUE and the Bank Deposits. As the Business is in the name of assessee, she was required to enter the entire cash book. 8. In view of the above findings, the cash deposits of 5,65,000/-is assessed under section 68 of the Income Tax Act, 1961 read with section 115BBE of the Income Tax Act, 1961 being undisclosed cash deposits found credited in the books of account of assessee. The assessee has shown an amount of ₹ 4,98,000/- in the prof ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f any specific day on a test check basis stating that he would be able to show that 35% of the sum total of the said date has been reflected in the books. 5. The ld. Sr.DR considering the submissions advanced submitted that though the arguments to this effect are on record, however the offer of the ld. AR to demonstrate his claim on a test check basis at this Forum was objected to. It was his prayer that instead of attempting this exercise of co-relating the amounts on a test check basis with the vouchers, at this stage the issue may be remanded back for carrying out this exercise either to the AO or the CIT(A). The remand to the AO, it was submitted, would be more appropriate. 6. The ld. AR in reply agreed to the remand back for verification to the AO. On query, it was submitted that the assessee in the immediately preceding assessment year as well as in the subsequent assessment year has returned income from a similar activity from Boutique business which has been accepted by the department. It was his submission that the assessee ultimately has stopped her business finally in the next assessment year. 7. I have heard the rival s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 11. As noted, the ld. AR has offered to demonstrate the assessee's claim on a test check basis. The said offer has been declined by the ld. Sr.DR at this stage and the parties have agreed that the issue may be remanded back for carrying out the said exercise. Accordingly, considering this factual background, I am of the view that a remand is necessitated. 12. The issue thus could well be concluded by making an appropriate direction to the said effect as it would adequately address the issue in terms of the pronouncement made at the time of hearing. However, such an act would leave those impediments unaddressed which appear to pose serious obstacles and hindrances to the nation s goal to becoming a 5 trillion dollar economy. 13. Accordingly, encouraged and inspired by the laudable aim and conscious of the nature of the jurisdiction which predicates that the Tribunal shall approach and decide every case in a judicial spirit with irrefutable reasoning and to pass such order as thinks fit . In view thereof, I deem it necessary, drawing on my experience as a dispenser of justice to offer certain constructive suggestions consistent with the rend ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... framework of the taxation system which can be the agents of economic change of the nation. Their value to the nation s economy cannot be over-emphasized. A mechanism to guide these brand new assessees through the tax and the bureaucratic maze must be made available by the State. Their first brush with their financial success must not be so stunning that it poses a seemingly impossible hurdle of compliances that they ultimately crumble and unfortunately vanish in the teeming masses who instead of utilizing the State s opportunities of growth believe in ridding piggy-back on the enterprise of a few perpetually clamouring for free financial packages and depending only on State affirmative actions. The population needs to be weened away and discouraged from this hopeless life of living on State dependency for all times to come. The State financial assistance and affirmative actions should be encouraged to be seen only as a limited time bound support. The lack of effort and enterprise should not appear to be rewarded. The enterprising should be rewarded. The successful ventures when started should not be allowed to fail at the altar of compliances as failures of such ventures though at ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e the Tax Advisory Cell may be handicapped in performing their role within the confines of law. 19. While on the subject, I would humbly suggest that the work of the Tax Advisory Cell is not outsourced. To my mind, the lack of accountability and commitment in a fly by night operator however competent would be detrimental to these aims and I believe would be at the cost of the State. The outsourced adhoc personnel are bound to lack commitment and accountability as unlike public servants, their ethical values and vision is neither monitored nor has it been tested at any level. Entrusting this important mission to untested personnel may prove a dangerously rash exercise with serious long term negative consequences. The Assessing Officer, I believe, also cannot be expected to hand hold these new assessees towards compliances as in the absence of any system created to nurture these sparks of Indian economic change, the Assessing Officer having his own limitations of meeting his monthly, weekly targets etc. cannot be expected to pause his work and assist these new ventures. However, it is my belief that even in the target oriented mindset, there are government servants a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... who did not visualize the whopping success, the business would garner. The venture was entered into with the modest aim of funding his studies with the profits so generated. The venture was started by him with a loan of 1000$ from Dr. Buck thus, with virtually no money and industrial knowledge. As a result of this reason, the company was called Doctor s Associates Incorporation. These references are just a tip of the ice berg. The following instances may as an illustration further drive home the point : i) https://hackernoon.com/50-big-companies-that-started-with-littleor-no-money-4ef1b68aac25; ii) https://www.webs.com/blog/2015/02/11/7-powerhousecompanies-started-small/ iii) https://www.strawberrybranding.com/blogs/top-10-newgeneration-successful-entrepreneurs-of-india/ iv) https://www.badabusiness.com/articles/lijjat-papad-company-astory-of-women-empowerment/ 21. I believe there is no dearth in the country of talent, aims and ambitions aspiring to create artificial jewellery; clothing line, cosmetics beauty; health welfare; fast food; jam; chutney; seasonal decorations, educational aids, sof ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ncial nets to fall back on in case of failure of their business venture. These first time businesses lacking the experience and skills are ill equipped even to handle their financial success and need assistance to guide them through the tax requirements and the bureaucratic maze of necessary compliances. It is the Tax Advisory Cell can help them to become tax compliant. The Revenue may consider developing the skills to collect (tax) like honey is collected from flowers by bees and butterflies. The flower does not miss the honey taken. It continues to bloom and remain viable for honey collection again and again till its life time. 23. In my experience as a dispenser of Justice, I have noticed that generally the violations of tax laws by new assessees do not occur because they are so desired but because of sheer lack of proper advice. Instead of letting these sparks of economic change stifle and die due to fear of compliances, I firmly believe for the detailed reasons set out hereinabove that they be urgently assisted in the interests of the State. Such sparks may be reflected at times in part time enterprising housewives, illiterate, semi-skilled men/women or teenag ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
