Shri Mohmedmubin Mohmedzahid Kadri, Ahmedabad V. The Income Tax Officer, Ward-5(3)(1), Ahmedabad

ITA 1094/AHD/2017

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 3396 (ITAT-AHMEDABAD)
• Duration Of Justice: 1 year(s) 11 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-04-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2008-2009
• Appeal Filed On: 05-05-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: T SHANKAR
• Section: 143(3); 148

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD SMC BENCH BEFORE: SHR I MAHAVIR PRASAD , JUDICIAL MEMBER AND SHRI AMARJIT SINGH, ACCOUNTANT MEMBER SHRI MOHMEDMUBIN MOHMEDZAHID KADRI, 18, SUHASINI FLATS, B/H, MUSEUM, TAGORE HALL, ELLISBRIDGE, PALDI, AHMEDABAD, GUJARAT PAN: AIIPK2760K (APPELLANT) VS THE IT O , WARD - 5(3)( 1 ) , AHMEDABAD (RESPONDENT) REVENUE BY : S H RI T. SHANKAR , SR. D . R. ASSESSEE BY: SHRI CHIRAG SHAH, A.R. DATE OF HEARING : 12 - 04 - 2 019 DATE OF PRONOUNCEMENT : 30 - 04 - 2 019 / ORDER P ER : AMARJIT SI NGH, ACCOUNTANT MEMBER : - THIS ASSESSEE S APPEAL FOR A.Y. 2008 - 09 , ARI SES FROM ORDER OF THE CIT(A) - 5, AHMEDABAD DATED 16 - 1 2 - 2 016 , IN PROCEEDINGS UNDER SECTION 143(3) OF THE INCOME TAX ACT, 1961; IN SHORT THE ACT . 2. THE SOLITARY GROUND OF APPEAL OF THE ASSESSEE IS AGAINST THE DECISION LD. CIT(A) - AHMEDABAD - 5 IN SUSTAINING THE ADDITION OF RS. 8 , 21 , 778/ - MADE U/S. 68 OF THE ACT BY THE ASSESSING OFFICER. I T A NO . 1094 / A HD/20 17 A SSESSMENT YEAR 200 8 - 09 I.T.A NO. 1094 /AHD/20 17 A.Y. 2008 - 09 PAGE NO SHRI MOHMEDMUBIN MOHMEDZAHID KADRI VS. IT O 2 3 . THE FACT IN BRIEF IS THAT THE STATEMENT OF THE ASSESSEE WAS RECORDED U/S. 131(1A) OF THE ACT ON 18 TH MARCH, 2015 PERTAINING TO CASH DEPOSIT IN H SB C BANK DURING THE F.Y. 2007 - 08. THE ASSESSEE HAD NOT FILED RETURN OF INCOME FOR ASSESSMENT YEAR 2008 - 09, THEREFORE , NOTICE U/S. 148 OF THE ACT WAS ISSUED ON 31 ST MARCH, 2015. IN RESPONSE, THE ASSESSEE HAS FILED RETURN OF INCOME DECLARING TOTAL INCOME OF RS. 9308 2 / - IN RESPONSE TO NOTICE U/S. 148 OF THE ACT AND ALSO DECLARED AGRICULTURAL INCOME OF RS. 89800 0 / - . DURING ASSESSMENT ON VERIFICATION OF THE DETAILS FILED ALONG WITH BANK ACCOUNT , THE ASSESSING OF F ICER NOTICED THAT ASSESSEE HAS MADE DEPOSIT AGGREGATING OF RS. 6 1 03900/ - IN VARIOUS BANK ACCOUNTS DURING THE YEAR UNDER CONSIDERATION. THE ASSESSING OFFICER HAS STATED TH AT ON EXAMINATION OF THE DETAILS, THE SOURCE OF RS. 8 , 21 , 778/ - REMAINED UNEXPLAINED BY THE ASSESSEE. THE ASSESSEE STATED THAT HE HAS RECEIVED AN AMOUNT OF RS. 8,25,00 0/ - OUT OF THE ADVANCE GIVEN TO HER. THE ASSESSING OFFICER HAS NOT ACCEPTED THE EXPLANATION OF THE ASSESSEE STATING THAT THE ASSESSEE HAS NOT SUBMITTED ANY SUPPORTING EVID ENCES IN RESPECT TO AMOUNT OF R S. 8, 25,000/ - RECEIVED FROM HIS MOTHER . THE ASSESSEE HAS FILED COPY OF WILL, COPY OF CASH RECEIPT FROM HIS MOTHER. HOWEVER, THE SAME WERE NOT ACCEPTED BY THE ASSESSING OFFICER STATING THAT IDENTITY AND CREDITWORTHINESS OF T HE PAYEE WAS NOT PROVED. CONSEQUENTLY , THE ASSESSING OFFICER HAS MADE ADDITION OF RS. 8 , 21 , 778/ - AS UNEXPLAINED CASH DEPOSIT MADE IN THE BANK ACCOUNT OF THE ASSESSEE AS DISCUSSED ABOVE IN THIS ORDER. 4 . AGGRIEVED ASSESSEE HAS FI L E D APPEAL BEFORE T HE LD . CIT(A) . THE LD. CIT(A) HAS DISMISSED THE APPEAL OF T HE ASSESSE E REITERATING THE REASON FOR ADDITION STATED BY THE ASSESSING OFFICER. I.T.A NO. 1094 /AHD/20 17 A.Y. 2008 - 09 PAGE NO SHRI MOHMEDMUBIN MOHMEDZAHID KADRI VS. IT O 3 5 . DURING THE COURSE OF APPELLATE PROCEEDINGS BEFORE US, THE LD. COUNSEL HAS FURNISHED PAPER BOOK CONTAINING DETAIL A ND INFORMATION FURNISHED BEFORE THE ASSESSING OFFICER AND LD. CIT(A) AT THE TIME OF ASSESSMENT PROCEEDINGS AND APPELLATE PROCEEDINGS. THE LD. COUNSEL HAS CONTENDED THAT LD. CIT(A) HAS INCORRECTLY SUSTAINED THE ADDITION WITHOUT CONSIDERING THE SUBMISSION AND MATERIAL FURNISHED BY THE ASSESSEE. ON THE OTHER HAND, LD. DEPARTMENTAL REPRESENTATIVE HAS SUPPORTED THE ORDER OF LOWER AUTHORITIES. 6. WE HAVE HEARD BOTH THE SIDES AND PERUSED THE MATERIAL ON RECORD. THE ASSESSMENT U/S. 143(3) R.W.S. 147 OF THE ACT WAS FINALIZED ON 29 - 12 - 2015 AND ADDITION OF RS. 821778/ - WAS MADE ON ACCOUNT OF UNEXPLAINED DEPOSIT MADE IN THE BANK ACCOUNT OF THE ASSESSEE. WITH TH E ASSISTANCE OF THE LD. REPRESENTATIVE , WE HAVE GONE THROUGH T H E MATERIAL ON RECORD. DURING ASSESSMENT T HE ASSESSEE HAS FURNISHED A DAILY CASH BOOK AND DAILY CASH FLOW STATEMENT SHOWING THAT ALL CASH INWARD AND OUTWARD RECEIVED IN CASH BOOK. IT WAS CLAIMED THAT HE HAD RECEIVED C ASH OF RS. 8 , 25 , 000/ - OUT OF THE ADV ANCE GIVEN TO HIS MOTHER FOR ACQUIRING IMMOV ABLE PROPERTY. HE HAS ALSO SUBMITTED A CERTIFIED COPY OF WILL OF HIS MOTHER STATING THA T HIS MOTHER IQBALBEGAM MOHEMEDZAHI D KADRI H AD GIVEN HIM RS. 2200000 / - (825000/ - IN THE FINANCIAL YEAR 2007 - 08 AND BALANCE RS. 1375000/ - IN THE FINANCIAL YEAR 2008 - 09 WH ICH HE HAD GIVEN TO HER FOR PURCH ASE OF IMMOVABLE PROPERTY. THE TOTAL OF RS. 22 , 00 , 00 0/ - WHICH HE HAD GIVEN TO HER MOTHER WAS REFLECT ED IN THE BALANCE SHEET AS ON 31 - 03 - 2007 AS ADVANCE GIVEN FOR IMMOVABLE PROPERTY. THE OUTSTANDING BALANCE OF RS. 13,75,00 0/ - WAS ALSO SHOWN AS RECEIVABLES IN HIS BALANCE SHEET AS O N 31 - 3 - 2008. WE HAVE ALSO GONE THROUGH THE DETAILS/INFORMATION FURNISHED BY THE ASSESSEE DURIN G THE COURSE I.T.A NO. 1094 /AHD/20 17 A.Y. 2008 - 09 PAGE NO SHRI MOHMEDMUBIN MOHMEDZAHID KADRI VS. IT O 4 OF ASSESSMENT AND APPELLATE PROCEEDINGS BEFORE THE LOWER AUTHORITI ES. THE AS SESSEE HAD F URNISHED CASH BOOK ALONG WITH THE CASH SUMMARY FOR F.Y. 2008 - 09 , COPY OF C ASH BOOK ALONG WITH THE CASH SUMMARY FOR F .Y. 2007 - 08, COPY OF INCOME TAX RETURN FOR A.Y. 2007 - 08 ALONG WITH BALANCE SHEET FOR ASSESSMENT YEAR 2007 - 08, COPY OF STATEMENT OF T O TA L INC OME FOR ASSESSMENT YEAR 2008 - 09 ALONG WI TH BALANCE SHEET FOR ASSESSMENT YEAR 2008 - 09 , COPY OF STATEMENT OF TO T AL INCOME FOR ASSESSMENT YEAR 2009 - 10 ALONG WITH BAL A N C E SHEET FOR ASSESSMENT YEAR 2009 - 10 , COPY OF CERTIFICATE OF DEATH OF HER MOTHER , COPY OF HE R WILL. ON PERUSAL OF THE AFORESAID DOCUMENTS AND INFORMATION IT IS NOTICED THAT THE VIDE ACKNOWLEDGMENT NO. 103000680, THE ASSESSEE HAD FILED HIS RETURN OF INCOME FOR ASSESSMENT YEAR 2007 - 08 ON 25 - 06 - 2007 SHOWING TOTAL INCOME OF RS. 327977/ - ON ITR - 4 FOR M. IN THE ITR - 4 F ORM WHICH WAS A PART OF RETURN OF INCOME , THE ASSESEE HAS ALSO FURNISHED THE DETAILED BA L ANC E SHEET AS ON 31 ST DAY OF MARCH, 2007 OF THE PROPRIETARY BUSINESS. IT IS NOTICED THAT IN THE BA L AN CE SHEET UNDER THE HEAD PROPRIETOR CAPITAL , THE ASSESSEE HAD SHOWN CAPITAL OF RS. 2320617/ - AND IN COLUMN NO. 3(B) UNDER THE HEAD ADVANCES RECOVERABLE IN CASH OR IN KIND , THE ASSESSEE HAD SHOWN AN AMOUNT OF R S. 2200000/ - . IN THE LIGHT OF THE ABOVE FACT IT IS NOTICED THAT THE ASSESSMENT U/S. 1 43(3) R.W .S 147 FOR ASSESSMENT YEAR 2008 - 09 WAS PASSED ON 29 - 12 - 2015 IN WHICH IMPUGNED ADDITION OF UNEXPLAINED CASH DEPOSIT OF RS. 821778/ - WAS MADE WHEREAS THE ASSES S EE HAD FI L E D HIS RETURN OF INCOME FOR ASSESSMENT YEAR 2007 - 08 ON 25 - 06 - 2007 IN THE ITR - 4 SHOWING AN ADVANCE OF RS. 2200000/ - OUT OF WHICH THE ASSESSEE HAD CLAIMED THE IMPUGNED CASH DEPOSIT OF RS. 821778/ - . A FTER CONSIDERING THE AFORESAID MATERIAL FACTS AND CIRCUMSTANCES, WE OBSERVE THAT THE ASSESSING OFFICER HAS NOT DISPROVED THESE MATERIAL FACTS WIT H RELEVANT SUPPORTING MATERIAL THEREFORE I.T.A NO. 1094 /AHD/20 17 A.Y. 2008 - 09 PAGE NO SHRI MOHMEDMUBIN MOHMEDZAHID KADRI VS. IT O 5 WE ARE NOT INCLINED WITH DECISION OF THE LD. CIT(A). ACCORDINGLY, THE APPEAL OF THE ASSESSEE IS ALLOWED. 7. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOWED. ORDER PR ONOUNCED IN THE OPEN C OURT ON 30 - 04 - 201 9 SD/ - SD/ - ( MAHAVIR PRASAD ) ( AMARJIT SINGH ) JUDICIAL MEMBER ACCOUNTANT MEMBER AHMEDABAD : DATED 30 /04 /2019 / COPY OF ORDER FORWARDED TO: - 1. ASSESSEE 2. REVENUE 3. CONCERNED CIT 4. CIT (A) 5. DR, ITAT, AHMEDABAD 6. GUARD FILE. BY ORDER/ , / ,