Samirkumar Jayantilal Shah, Ahmedabad V. The Pr. CIT.-7, Ahmedabad

ITA 1275/AHD/2016

• Counselvise Citation: [2019] 112 COUNSELVISE.COM (IT) 6672 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 9 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-02-2019
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2011-2012
• Appeal Filed On: 16-05-2016
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Assessee Lawyers: P D SHAH
• Keywords: Business income; Salary income
• Section: 44AD; 143(3); 263

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD A BENCH (BEFORE SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER & SHRI MAHAVIR PRASAD, JUDICIAL MEMBER) ITA. NO: 1275/AHD/2016 & ITA NO. 2046/AHD/2017 (ASSESSMENT YEAR: 2005-06) SHRI SAMIRKUMAR J SHAH MEHTA LODHA & CO. 105, SAKAR-1, OPP. GANDHIGRAM RAILWAY STATION, ASHRAM ROAD, AHMEDABAD-380009 V/S INCOME TAX OFFICER, WARD- 7 (1)(4), AHMEDABAD (APPELLANT) (RESPONDENT) PAN: ADKPS5739D APPELLANT BY : SHRI P. D. SHAH, AR RESPONDENT BY : SHRI MUDIT NAGPAL, SR. D.R. ( )/ ORDER DATE OF HEARING : 12 -12-201 8 DATE OF PRONOUNCEMENT : 28 -02-2019 PER MAHAVIR PRASAD, JUDICIAL MEMBER 1. AT THE TIME OF HEARING, ASSESSEE SUBMITTED A LETTER FOR WITHDRAWAL OF ITA NO. 1275/AHD/2016 AND HE STATED THAT THE REASON THAT AS SESSEE IS A SMALL ITA NO. 1275 /AHD/2016 & ITA NO. 2046 /AHD/2017 . A.Y. 2011-12 2 BUSINESSMAN OF CLOTH AND WANT TO AVOID LITIGATION. THEREFORE, PERMISSION IS GRANTED TO THE ASSESSEE FOR WITHDRAWAL OF APPEAL. T HEREFORE, SAME IS DISMISSED AS WITHDRAWN. 2. NOW WE COME TO APPEAL IN ITA NO. 2046/AHD/2017 WHER E ASSESSEE WAS CHALLENGED THE ORDER OF THE LD. CIT(A) THAT HE HAS ERRED IN LAW AND FACTS BY CONFIRMING THE ADDITION OF RS. 25,72,920/- U/S. 69 OF THE AMOUNT OF DEPOSITED WITH THE BANK. 3. THE FACTS OF THE CASE IN BRIEF ARE THAT THE ASSESSE E FILED HIS RETURN OF INCOME ON 17.10.2011 DECLARING TOTAL INCOME OF RS.90,000/- AS INCOME FROM SALARY. THE ASSESSMENT WAS COMPLETED U/S. 143(3) OF THE I.T. AC T AT A TOTAL INCOME OF RS.1,16,355/- ON 24.3.2014. SUBSEQUENTLY, THE PR. C IT-7, AHMEDABAD PASSED AN ORDER U/S. 263 OF THE ACT ON 21.3.2016 WITH A DI RECTION TO THE AO TO MAKE A FRESH ASSESSMENT IN VIEW OF THE FACT THAT AT THE TI ME OF ASSESSMENT PROCEEDINGS, CASH DEPOSITS OF RS.25,72,920/- IN THE BANK ACCOUNT OF THE APPELLANT HAD NOT BEEN VERIFIED AND EXAMINED. THEREAFTER, AS PER THE DIRECTIONS OF THE PR. CIT, THE AO ISSUED THE RELEVANT NOTICES TO THE ASSESSEE AS PER LAW AND AFTER A DETAILED EXAMINATION OF THE FACTS OF THE CASE AND S UBMISSIONS MADE BY THE ASSESSEE DURING THE ASSESSMENT PROCEEDINGS, HE ADDE D THE AMOUNT OF RS.25,72,920/- U/S 69 OF THE ACT TO THE TOTAL INCOM E OF THE ASSESSEE. 4. AGAINST THE ORDER OF THE A.O., ASSESSEE PREFERRED F IRST STATUTORY APPEAL BEFORE THE LD. CIT(A) WHO DISMISSED THE APPEAL OF THE ASSE SSEE. 5. IN THIS CASE, ASSESSEES TOTAL TURNOVER IS RS. 32,8 3,822/- AND PROFIT AND LOSS ACCOUNT AND THE BALANCE SHEET HAS BEEN SUBMITTED TO THE LD. A.O. WHEREIN SAID ITA NO. 1275 /AHD/2016 & ITA NO. 2046 /AHD/2017 . A.Y. 2011-12 3 LOSS OF RS. 12,167/- HAS BEEN SHOWN AND THE LD. A.O . WHILE PASSING THE ORDER U/S. 143(3) HAS COMPUTED BUSINESS INCOME OF RS. 26 ,355/-. 6. AT THE OUTSET, LD. A.R. ON BEHALF OF THE ASSESSEE S TATED THAT ASSESSEE IS A SMALL BUSINESS MAN AND REQUESTED THAT SECTION 44AD MAY BE APPLIED IN THE CASE OF ASSESSEE AND BUSINESS INCOME @ 8% ON THE TURNOVER O F RS. 32,83,822/- I.E. RS. 2,62,706/- MAY BE DETERMINED. IN OUR CONSIDERED OPI NION, THE REQUEST OF THE ASSESSEE IS GENUINE AND WE ACCEDE TO THE SAME AND H OLD THAT INCOME OF THE ASSESSEE TO BE DETERMINED @ 8% ON THE TURNOVER OF R S. 32,83,822/-. 7. IN THE RESULT, BOTH THE APPEALS FILED BY THE ASSESS EE ARE ALLOWED. ORDER PRONOUNCED IN OPEN COURT ON 28 - 02- 2019 SD/- SD/- (PRADIP KUMAR KEDIA) (MAHAVIR PRASAD) ACCOUNTANT MEMBER TRUE COPY JUDICIAL MEMBER AHMEDABAD: DATED 28 /02/2019 RAJESH COPY OF THE ORDER FORWARDED TO: - 1. THE APPELLANT. 2. THE RESPONDENT. 3. THE CIT (APPEALS) 4. THE CIT CONCERNED. 5. THE DR., ITAT, AHMEDABAD. 6. GUARD FILE. BY ORDER DEPUTY/ASSTT.REGISTRAR ITAT,AHME DABAD