Shri Daxaybhai C. Makhecha, RAJKOT-GUJARAT V. The Income Tax Officer, Ward-2(4), RAJKOT-GUJARAT

CO 6/RJT/2015

• Counselvise Citation: [2018] 123 COUNSELVISE.COM (IT) 3626 (ITAT-RAJKOT)
• Duration Of Justice: 3 year(s) 1 month(s) 28 day(s)
• Appeal Type: Cross Objection
• Pronouncement Date: 16-03-2018
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2008-2009
• Appeal Filed On: 19-01-2015

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL RAJKOT BENCH, RAJKOT , , BEFORE SHRI PRADIP KUMAR KEDIA , A CCOUNTANT MEMBER & SHRI MAHAVI R PRASAD , JUDICIAL MEMBER ./ I.T.A. NO. 645 /RJT/201 4 ( / ASSESSMENT YEAR : 2008 - 09 ) INCOME TAX OFFICER, WARD - 2(4), RAJKOT / VS. SHRI DAXAY CHAMPAKLAL MAKHECHA, 807 - STAR PLAZA, PHULCHHAB CHOWK, RAJKOT. CROSS OBJECTION NO . 6/RJT/2015 (IN ITA NO.645/RJT/2014) ( / ASSESSMENT YEAR : 2008 - 09 ) SHRI DAXAY CHAMPAKLAL MAKHECHA, 807 - STAR PLAZA, PHULCHHAB CHOWK, RAJKOT / VS. INCOME TAX OFFICER, WARD - 2(4), RAJKOT. ./ ./ PAN/GIR NO. : AFQPM 4612 P ( / APPELLANT ) .. ( / RESPONDENT ) REVENUE BY : SHRI ARVIND SONTAKKE , D.R. ASSESSEE BY : SHRI M. J. RANPURA, A.R. / DATE OF HEARING 13 /03/2018 / DATE OF PRONOUNCEMENT 16 / 0 3 /201 8 / O R D E R PER MAHAVIR PRASAD JUDICIAL M EMBER : THE CAPTIONED APPEAL ALONG WITH CROSS OBJECTION HAS BEEN FILED AT THE INSTANCE OF THE REVENUE AGAINST THE APPELLATE ORDER OF THE ITA NO. 645 /RJT / 201 4 & CO NO.6/RJT/2015 SHRI DAXAYBHAI CHAMPAKLAL MAKHECHA ASST.YEAR 2008 - 09 - 2 - COMMISSIONER OF INCOME TAX(APPEALS) - III , RAJKOT [CIT(A) IN SHORT] VIDE APPEAL NO. CIT(A) - III / 0182 / 13 - 1 4 DATED 1 2 /0 9 /201 4 ARISING IN THE ASSESSMENT ORDER PASSED UNDER S.1 4 3(3) R.W.S. 147 OF THE INCOME TAX ACT, 1961 (HEREINAFTER REF ERRED TO AS 'THE ACT') DATED 06 /03/201 4 RELEVANT TO ASSESSMENT YEAR (AY) 2008 - 09 . 2. THE G ROUND S OF APPEAL RAISED BY THE REVENUE READ AS UNDER: - 1. THE LD. CIT(A) - III, RAJKOT HAS ERRED IN LAW IN DELETING THE ADDITION OF RS.40,19,000/ - MADE U/S.68 OF THE I.T. ACT IN SPITE OF THE FACT THAT THE ASSESSEE COULD NOT PRODUCE ANY COGENT EVIDENCE IN SUPPORT OF HIS CLAIM. 2. THE LD. CIT(A) - III, RAJKOT HAS ERRED IN RELYING ON THE CASH BOOK PRODUCED BEFORE HIM, WITHOUT VERIFYING, AS TO WHETHER IT WAS MADE IN THE REGULAR COURSE OF BUSINESS & RECON CILED WITH THE AUDITED ACCOUNTS . 3. BRIEFLY STATED , FACTS ARE THAT THE APPELLANT, AN INDIVIDUAL, ENGAGED IN THE BUSINESS OF AIR TRAVEL BOOKING, PASSPORT & VISA CONSULTANT IN HIS PROPRIETARY CAPACITY AS THE PROPRIETOR OF M/S. D. K. TRAVELS AND TOURS AS ALSO DIRECTOR IN M/S. BHAVIN FOREX P. LTD., A COMPANY AUTHORIZED IN DEALING WITH FOREIGN EXCHANGE, DULY APPROVED BY THE RBI, HAD FILED HIS RETURN OF INCOME FOR THE ASSESSMENT YEAR UNDER CONSIDERATION ON 23.09.2008, DECLARIN G TOTAL INCOME AT RS.1,96,670/ - . THE ASSESSMENT WAS ORIGINALLY FINALIZED VIDE ORDER PASSED U/S.143(3) DATED 2 3.10.2010, WHEREIN, THE INCOME O F THE APPELLANT WAS ASSESSED AT RS.1,96,670/ - . THEREAFTER, THE CASE WAS REOPENED BY THE ASSESSING OFFICER TO VERIFY THE CASH DEPOSITS IN DENA BANK ACCOUNT. THE ASSESSMENT U/S.143(3) R.W.S. 147 OF THE ACT, WAS FINALIZED ON 06.03.2014, WHEREIN, THE ASSESSING OFFICER HAS MADE ADDITION OF RS.40,19,000/ - TREATING THE ENTIRE CASH DEPOSITS IN SAVINGS BANK ACCOUNT NO.12167 MAI NTAINED WITH DENA BANK, RAJKOT, AS UNEXPLAINED CASH CREDITS WITHIN T HE MEANING OF SECTION 68 OF THE ITA NO. 645 /RJT / 201 4 & CO NO.6/RJT/2015 SHRI DAXAYBHAI CHAMPAKLAL MAKHECHA ASST.YEAR 2008 - 09 - 3 - ACT. THEREAFTER, APPELLANT FILED FIRST APPEAL BEFORE THE LD. CIT(A) CHALLENGING THE ACTION OF THE ASSESSING OFFICER FOR REOPENING OF THE ASSESSMENT PROCEEDI NGS, AS ALSO CHALLENGED THE ADDITION MADE OF RS.40,19,000/ - . 4. LD. CI T(A) PARTLY ALLOWED THE APPEAL O F THE APPELLANT AND DELETED THE ADDITION OF RS.40,19,000/ - . 5. NOW DEPARTMENT S APPEAL IS BEFORE US. 6. WE HAVE GONE THROUGH THE RELEVANT RECORD AND IMP UGNED ORDER. IN THIS CASE, APPELLANT IS IN THE BUSINESS OF AIR TRAVEL BOOKING AND AGENT OF IATA IN THE NAME OF M/S. D. K. TRAVELS AND TOURS (DKIT) AND WAS ALSO AGENT OF M/S. BHAVIN FOREX PVT. LTD. (BFPL), REGISTERED BY THE RESERVE BANK OF INDIA AND WAS HAV ING CURRENT ACCOUNT NO.201455 WITH DENA BANK. ALL TRANSACTIONS OF M/S. DKTT WERE ROUTED THROUGH THIS CURRENT BANK ACCOUNT. COPY OF THE STATEMENT AS WELL AS BANK BOOK WERE SUBMITTED BEFORE THE ASSESSING OFFICER DURING THE COURSE OF ASSESSMENT PROCEEDINGS, W HICH IS REPRODUCED BY THE ASSESSING OFFICER IN HIS ORDER. BESIDES THAT M/S. BFPL WHICH IS OWNED BY THE APPELLANT IS ALSO HOLDING ONE CURRENT ACCOUNT NO.201594 WITH DENA BANK. ALL THE TRANSACTIONS OF BFPL WERE ROUTED THROUGH BANK ACCOUNT. COPY OF THE BANK S TATEMENT AND BOOK OF BOTH THE COMPANIES WERE FILED BEFORE THE LD. CIT(A) AND APPELLANT HAD ALSO SUBMITTED A CHART EXPLAINING EACH AND EVERY TRANSACTIONS THAT TOOK PLACE IN HIS SAVING BANK ACCOUNT ALONGWITH SUPPORTING CASH BOTH THE CONSULT. LD. AR SUBMITTED THAT SAVING BANK DID NOT APPEAR IN THE BALANCE SHEET OF M/S. DKTT AS THE SAME WAS CLOSED MID WAY. LD. ASSESSING OFFICER STATED IN HIS ORDER THAT THE APPELLANT HAS FAILED TO FURNISH ANY COGENT EVIDENCE LIKE AUDIT CASH BOOK AND AUDITED ACCOUNT, BOOK STATEME NT, CONFIRMATION AND SOURCE OF ALLEGED CASH IN THE HANDS OF M/S. BHAVIN FOREX PVT. LTD. HOWEVER, THE ASSESSING ITA NO. 645 /RJT / 201 4 & CO NO.6/RJT/2015 SHRI DAXAYBHAI CHAMPAKLAL MAKHECHA ASST.YEAR 2008 - 09 - 4 - OFFICER DOES ACKNOWLEDGE THE FACT THAT THE APPELLANT HAD FURNISHED PRINTED COPY OF CASH BOOK OF THE COMPANY AND CASH BOOKS OF HIS PROPRIETARY CON CERN M/S. DKTT. BEFORE LD. CIT(A), APPELLANT FILED COPIES OF BANK ACCOUNT WHICH HAVE BEEN DULY ACCOUNTED IN THE BOOKS OF ACCOUNT, MAINTAINED AND AUDITED BY THE STATUTORY AUDITOR U/S.44AB OF THE ACT. 7. AS WE CAN SEE, LD. ASSESSING OFFICER REJE CTED THE CLAI M OF THE ASSESSEE AS HE COULD NOT FILED HIS AUDITED CASH BOOK , AUDITED ACCOUNT, BANK STATEMENT AND CONFIRMATION AND SOURCE OF ALLEGED CASH IN THE HANDS OF THE M/S. BFPL, BUT ASSESSEE FILED ALL THE DETAILS BEFORE LD. CIT(A) AND LD. CIT(A) HAS ALSO ACKNOWLEDGE D THE SAME IN HIS ORDER. SO THEREFORE, IN OUR CONSIDERED OPINION , LD. CIT(A) HAS PASSED DETAILED AND REASONED ORDER. THUS, IN SUCH CIRCUMSTANCES, WE DO NOT WANT TO INTERFERE IN THE ORDER PASSED BY THE LD. CIT(A). 8. IN THE RESULT, APPEAL OF THE DEPARTMENT IS ALLOWED. 9. SO FAR CROSS OBJECTION NO.6/RJT/2015 IS CONCERNED. SAME IS DISMISSED AS NOT PRESSED. 10. IN THE RESULT, APPEAL OF THE DEPARTMENT IS ALLOWED AND CROSS OBJECTION OF THE ASSESSEE IS DISMISSED. THIS ORDER PRONOUNCED IN OPEN COURT ON 16 / 0 3 /201 8 SD/ - SD/ - ( ) ( ) ( PRADIP KUMAR K EDIA ) ( MAHAVIR PRASAD ACCOUNTANT MEMBER JUDICIAL MEMBER DATED 16 /03 /2018 PRITI YADAV , SR. P S ITA NO. 645 /RJT / 201 4 & CO NO.6/RJT/2015 SHRI DAXAYBHAI CHAMPAKLAL MAKHECHA ASST.YEAR 2008 - 09 - 5 - / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. / CONCERNED CIT 4. ( ) / THE CIT(A) - III , RAJKOT. 5. , , /DR,ITAT, RAJKOT 6. / GUARD FILE . / BY ORDER, //TRUE COPY// / ( DY./ASSTT.REGISTRAR) , / ITAT, RAJKOT 1. DATE OF D ICTATION 13 /03/2018 (DICTATION - PAD 5 PAGES ATTACHED AT THE END OF THIS FILE) 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER 14 /03/2018 3. OTHER MEMBER... 4. DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR.P.S./P.S .. 5. DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE DICTATING MEMBER FOR PRONOUNCEMENT 6. DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR.P.S./P.S . 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