CHANDRABAN LACHHMI ARORA, MUMBAI V. ITO 20(1)(1), MUMBAI

ITA 1199/MUM/2012

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 75240 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 10 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-01-2014
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Next Hearing Date: 30-12-2013
• Assessment Year: 2008-2009
• Appeal Filed On: 21-02-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MOURYA PRATAP
• Section: 68

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, MUMBAI BEFORE SHRI D. KARUNAKARA RAO, ACCOUNTANT MEMBER AND DR. S.T.M. PAVALAN, JUDICIAL MEMBER ./I.T.A. NO.1199/M/2012 (AY: 2008 - 2009) MR. CHANDRBAN LACHHMI ARORA, C/O. KHURDIA JAIN & CO, CHARTERED ACCOUNTANTS, 505 RAINBOW CHAMBERS, S.V. ROAD, KANDIVALI (W), MUMBA 400067. / VS. ITO - 20(1)(2), R.NO.606, 6 TH FLOOR, PIRAMAL CHAMBERS, PAREL, MUMBAI. ./ PAN : AADPA 5692 B ( / APPELLANT) .. ( / RESPONDENT ) / APPELLANT BY : SHRI VIMAL PUNMIYA / RESPONDENT BY : SHRI MOURYA PRATAP, DR / DATE OF HEARING : 30.12.2013 / DATE OF PRONOUNCEMENT : 08.01.2014 / O R D E R PER D. KARUNAKARA RAO, AM: THIS APPEAL FILED BY THE ASSESSEE ON 21.2.2012 IS AGAINST THE ORDER OF CIT (A) - 31, MUMBAI DATED 31.1.2012 FOR THE ASSESSMENT YEAR 2008 - 2009. 2. AT OUTSET, SHRI VIMAL PUNMIYA, LD COUNSEL FOR THE ASSESSEE BROUGHT OUR ATTENTION TO THE GROUNDS AND MENTIONED THAT THE ASSESSEE IS AGGRIEVED AGAINST THE CONFIRMING OF THE ADDITION OF RS. 3 LAKHS. IN THE ASSESSMENT ORDER, AO MADE ADDITION OF RS. 3 LAKHS ON ACCOUNT OF CASH DEPOSITS U/S 68 OF THE ACT. DURING THE ASSESSMENT PROCEEDINGS, AO REJECTED THE ASSESSEES EXPLANATION THAT THE DEPOSIT OF RS. 3 LAKHS IN THE BANK ACCOUNT ON 19.12.2007 IS EXPLAINED BY THE CASH WITHDRAWAL OF RS. 3.5 LAKHS FROM THE SAME B ANK ACCOUNT ON 12.12.2007. MATTER TRAVELLED TO THE FIRST APPELLATE AUTHORITY. 3. DURING THE PROCEEDINGS BEFORE THE FIRST APPELLATE AUTHORITY, CIT (A) CONFIRMED THE SAID ADDITION MADE BY THE AO VIDE PARA 5.2 OF THE IMPUGNED ORDER, DISBELIEVING THE FACT THAT THE CASH WITHDRAWAN ON 12.12.2007 CANNOT BE A SOURCE FOR EXPLAINING 2 THE CASH DEP OSIT OF RS. 3 LAKHS ON 19.12.2007. AGGRIEVED WITH THE SAID DECISION OF THE CIT (A), ASSESSEE CARRIED THE MATTER IN APPEAL BEFORE THE TRIBUNAL. 4. DURING THE PROCEEDINGS BEFORE US, LD COUNSEL FOR THE ASSESSEE EXPLAINED THE FACTS AND MENTIONED THAT THE CASH WITHDRAWN ON 12.12.2007 IS THE SOURCE OF CASH DEPOSIT ON 19 TH DECEMBER, 2007. ELABORATING THE ABOVE, LD COUNSEL MENTIONED THAT THE ONUS IS ON THE REVENUE TO DEMONSTRATE THAT THE CASH WITHDRAWN ON 12 TH DECEMBER, 2007 WAS USED UP ELSEWHERE AND THEREFORE, T HE ASSESSEE FAILED TO EXPLAIN THE SOURCE OF THE CASH DEPOSITED ON 19 TH DECEMBER, 2007. 5. ON THE OTHER HAND, LD DR RELIED ON THE ORDERS OF THE REVENUE AUTHORITIES. 6. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE ORDERS OF THE REVENUE AUTHORITIES AS WEL L AS THE RELEVANT MATERIAL PLACED BEFORE US. ON HEARING THE BOTH SIDES AND EXAMINING THE PAPERS PLACED BEFORE US, WE ARE OF THE OPINION THAT THE REVENUE HAS FAILED TO DISCHARGE THE ONUS ON THE ISSUE THAT THE CASH WITHDRAWN ON 12 TH DECEMBER, 2007 WAS NOT THE SOURCE OF CASH DEPOSIT ON 19 TH DECEMBER, 2007. THE QUESTION TO BE ANSWERED BY THE REVENUE IS WHERE DID THE CASH WITHDRAWAL OF RS. 3.5 LAKHS WAS USED UP BY THE ASSESSEE, IF NOT FOR RE - DEPOSITING INTO THE BANK ACCOUNT ON 19 TH DEC EMBER, 2007 . CONSIDERING THE FAILURE OF THE REVENUE TO ANSWER THE ABOVE QUESTION SATISFACTORILY, WE ARE OF THE OPINION THAT THE ORDER OF THE CIT (A) ON THIS ISSUE NEEDS TO BE REVERSED. THEREFORE, WE ALLOW THE GROUNDS RAISED BY THE ASSESSEE. 7. IN THE RE SULT, APPEAL OF THE ASSESSEE IS ALLOWED. ORDER PRO NOUNCED IN THE OPEN COURT ON 0 8 - 0 1 - 2 0 1 4 . S D / - S D / - (DR. S.T.M. PAVALAN) (D. KARUNAKARA RAO) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI ; 0 8 - 0 1 - 2 0 1 4 . . ./ OKK , SR. PS 3 / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. ( ) / THE CIT(A) - 4. / CIT 5. , , / DR, ITAT, MUMBAI 6. / GUARD FILE . //TRUE COPY// / BY ORDER, / (DY./ASSTT. REGISTRAR) , / ITAT, MUMBAI