ITO, Ward-12(1), Hyderabad, Hyderabad V. Mirza Mohsin Baig, Secunderabad

CO 8/HYD/2015

• Counselvise Citation: [2015] 123 COUNSELVISE.COM (IT) 0405 (ITAT-HYDERABAD)
• Duration Of Justice: 2 month(s) 2 day(s)
• Appeal Type: Cross Objection
• Pronouncement Date: 31-03-2015
• Appeal Filed By: Assessee
• Bench Allotted: B
• Assessment Year: 2010-2011
• Appeal Filed On: 28-01-2015
• Court: TRIBUNAL
• Department Lawyers: RAJAT MITRA
• Assessee Lawyers: HARJEET SINGH

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES B, HYDERABAD BEFORE SHRI B. RAMAKOTAIAH, ACCOUNTANT MEMBER AND SHRI SAKTIJIT DEY, JUDICIAL MEMBER I.T.A. NO. 1796/HYD/2014 ASSESSMENT YEAR: 2010-11 INCOME TAX OFFICER, WARD-12(1), HYDERABAD VS SRI MIRZA MOHSIN BAIG, O.U.COLONY, SAINIKPURI, SECUNDERABAD [PAN: ADKPB3568M] (APPELLANT) (RESPONDENT) C.O.NO. 8/HYD/2015 (IN ITA NO.1796/HYD/2014) ASSESSMENT YEAR: 2010-11 SRI MIRZA MOHSIN BAIG, O.U.COLONY, SAINIKPURI, SECUNDERABAD [PAN: ADKPB3568M] VS INCOME TAX OFFICER, WARD-12(1), HYDERABAD (CROSS-OBJECTOR) (RESPONDENT) FOR REVENUE : SHRI RAJAT MITRA, DR FOR ASSESSEE : S HRI HARJEET SINGH, AR DATE OF HEARING : 26 - 0 3 - 201 5 DATE OF PRONOUNCEMENT : 31 - 03 - 2015 O R D E R PER B. RAMAKOTAIAH, A.M. : THE MAIN APPEAL WAS FILED BY REVENUE AGAINST THE O RDER OF THE COMMISSIONER OF INCOME TAX(APPEALS)-II, HYDERABAD D ATED 09-09-2014 I.T.A. NO. 1796/HYD/14 C.O. NO. 8/HYD/15 SRI MIRZA MOHSIN BAIG :- 2 -: AND CROSS OBJECTION WAS FILED BY ASSESSEE IN SUPPOR T OF THE ORDER OF CIT(A). 2. BRIEFLY STATED, ASSESSEE AN EMPLOYEE FILED RETUR N OF INCOME OF RS.1,80,800/-. ASSESSING OFFICER (AO) NOTICED THAT ASSESSEE HAD ABOUT THREE BANK ACCOUNTS, AS PER THE CIB INFORMATION REC EIVED AND TOTAL DEPOSITS IN THE BANK ACCOUNTS WERE TO THE TUNE OF R S.70,01,021/-. HE SEGREGATED THE AMOUNTS TO AN EXTENT OF RS.35,81,573 /- IN SB A/C WITH ICICI BANK AND ANOTHER AMOUNT OF RS.33,19,448/- IN THE SAME BANK IN ANOTHER ACCOUNT. RS.1 LAKH IN SB A/C WITH KARUR VYS YA BANK, BHIMAVARAM WAS ALSO CONSIDERED AS ASSESSEE'S ACCOUN T AND TOTAL AMOUNT WAS BROUGHT TO TAX, AS ASSESSEE'S EXPLANATIO N NOT FOUND SATISFACTORY. BEFORE THE CIT(A), ASSESSEE FILED AD DITIONAL EVIDENCE IN THE FORM OF AN EMPLOYER CERTIFICATE STATING THAT ASSESS EE AS SENIOR GENERAL MANAGER, MARKETING WAS LIAISONING WITH CUSTOMERS AN D COLLECTING RECEIVABLES. HE FURTHER STATED THAT THE AMOUNTS CO LLECTED FROM THE CUSTOMERS WERE DEPOSITED IN BANK ACCOUNT AND LATER ON PAID TO HIS EMPLOYER. THE LD.CIT(A) HOWEVER, DID NOT ACCEPT TH E VERACITY OF THE CERTIFICATE ON THE REASON THAT THEY ARE NOT IN THE LETTER HEAD OF M/S.APC ANGEL PLASTOCRAFT AND NOBODY HAS SIGNED THE CONFIRM ATION LETTER AND FURTHER, NO DETAILS OF THE PARTIES FROM WHOM AMOUNT S WERE COLLECTED WERE FURNISHED. CONSIDERING THE FREQUENT DEPOSITS AND W ITHDRAWALS IN THE TWO ICICI BANK ACCOUNTS AND ALSO ON THE ADMISSION T HAT ASSESSEE ALSO HAS HIS OWN RETAIL BUSINESS, LD.CIT(A) ESTIMATED T HE PROFITS AT 10% OF THE TOTAL CASH DEPOSITS WHICH WAS CONSIDERED AS ASS ESSEE'S TURNOVER IN RETAIL BUSINESS. WITH REFERENCE TO THE DEPOSIT IN BANK ACCOUNT OF KARUR VYSYA BANK, BHIMAVARAM, ASSESSEE SUBMITTED THAT THE BANK ACCOUNT DOES NOT BELONG TO HIM, THEREFORE, AO WAS DIRECTED TO ENQUIRE FROM THE BANK AND THEN CONSIDER MAKING THE ADDITION OF 10% O F THE AMOUNT. THE REVENUE IS AGGRIEVED. I.T.A. NO. 1796/HYD/14 C.O. NO. 8/HYD/15 SRI MIRZA MOHSIN BAIG :- 3 -: 3. THE MAIN CONTENTION OF THE REVENUE IS THAT LD.CI T(A) ERRED IN TREATING THE ENTIRE CASH DEPOSITS AS TURNOVER OF AS SESSEE WITHOUT ANY EVIDENCE AND THEREAFTER, ESTIMATING THE INCOME AT 1 0%. 4. LD.DR SUPPORTED THE ORDER OF AO, WHEREAS LD.COUN SEL FILED A PAPER BOOK EXPLAINING THE TRANSACTIONS IN THE BANK ACCOUNTS AND SUBMITTED THAT THE CIT(A)'S ORDER IS REASONABLE. 5. WE HAVE CONSIDERED THE RIVAL CONTENTIONS, PERUSE D THE PAPER BOOK AND DOCUMENTS ON RECORD. THERE IS NO DISPUTE WITH REFERENCE TO THE FACT THAT SMALL AMOUNTS HAVE BEEN DEPOSITED REGULARLY IN TO THE SB A/CS OF ASSESSEE FROM WHICH THERE ARE WITHDRAWALS, CREDIT C ARD PAYMENTS AND OTHER EXPENSES. THESE DETAILS WERE EXPLAINED TO TH E CIT(A) IN DETAIL AND BEFORE US ALSO, IT WAS SUBMITTED THAT OUT OF THE FI RST ICICI BANK A/C, THERE WERE CASH DEPOSITS TO THE TUNE OF RS.35,79,12 3/-, OUT OF WHICH CASH WITHDRAWALS WERE TO THE EXTENT OF RS.34,62,079 /-. LIKE-WISE, THERE WERE SUNDRY DEPOSITS OF RS.1,60,450/- AND EXPENSES WERE TO THE TUNE OF RS.1,16,493/- AND CREDIT CARD PAYMENTS WHICH WERE P ERSONAL IN NATURE TO AN EXTENT OF RS.1,33,299/-. SIMILARLY IN THE SEC OND ICICI BANK'S SB A/C, THERE WERE CASH DEPOSITS OF RS.33,19,448/- AND WITHDRAWALS TO THE EXTENT OF RS.31,66,860/-. THERE WERE EXPENSES TO TH E TUNE OF RS.1,09,486/- CREDIT CARD PAYMENTS TO THE TUNE OF R S.15,229/-. LD.COUNSEL PLACED ON RECORD SUMMARY OF THE TRANSACT IONS OF BOTH THE ACCOUNTS. PERUSAL OF ACCOUNTS INDICATE THAT THE C IT(A)'S OBSERVATIONS THAT IT COULD BE ASSESSEE'S OWN TURNOVER IN THE RET AIL BUSINESS COULD NOT BE FAULTED. SINCE THE ESTIMATION OF INCOME AT 10% WAS REASONABLE, WE DO NOT SEE ANY REASON TO INTERFERE WITH THE FINDING S OF LD.CIT(A). ACCORDINGLY, ORDER IS CONFIRMED AND REVENUE'S GROUN DS ARE REJECTED. I.T.A. NO. 1796/HYD/14 C.O. NO. 8/HYD/15 SRI MIRZA MOHSIN BAIG :- 4 -: 6. THE CROSS OBJECTION BY ASSESSEE IS IN SUPPORT OF THE LD.CIT(A) ORDER, HENCE, DOES NOT REQUIRE ANY ADJUDICATION. A CCORDINGLY, SAME IS ALSO REJECTED. 7. IN THE RESULT, BOTH THE APPEAL OF REVENUE AND CR OSS OBJECTION OF ASSESSEE ARE DISMISSED. ORDER PRONOUNCED IN OPEN COURT ON 31 ST MARCH, 2015. SD/- SD/- (SAKTIJIT DEY) (B. RAMAKOTAIAH) JUDICIAL MEMBER ACCOUN TANT MEMBER HYDERABAD, DATED 31 ST MARCH, 2015 TNMM COPY TO : 1. OFFICE OF THE INCOME TAX OFFICER, WARD - 12(1), 2 ND FLOOR, AAYAKAR BHAVAN, BASHEERBAGH, HYDERABAD. 2. SRI MIRZA MOHSIN BAIG, 1-4-160/37/A, O.U. COLONY , SAINIKPURI, SECUNDERABAD. 3. CIT(APPEALS)-II, HYDERABAD 4. CIT-I, HYDERABAD 5. D.R. ITAT, HYDERABAD