Shri Deven Jashvantlal Shah, Ahmedabad V. The Income tax Officer,Ward-3(2), Surat

ITA 1298/AHD/2013

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 0277 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 5 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-10-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 19-10-2016
• Assessment Year: 2008-2009
• Appeal Filed On: 06-05-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PRADIPKUMAR MAJUMDARSR
• Assessee Lawyers: ANIL R SHAH
• Keywords: Peak credit
• Section: 69

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD SMC BENC H (BEFORE SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER & SHRI S. S. GODARA, JUDICIAL MEMBER) ITA. NO: 1298/AHD/2013 (ASSESSMENT YEAR: 2008-09) SHRI DEVEN JASHVANTLAL SHAH 604, MAHAVIR VILLA, DEEPA COMPLEX, ADAJAN ROAD, SURAT V/S INCOME TAX OFFICER, WARD- 3(2), SURAT (APPELLANT) (RESPONDENT) PAN: AQBPS7076H APPELLANT BY : SHRI ANIL R. SHAH, AR RESPONDENT BY : SHRI PRADIPKUMAR MAJUMDAR,SR. D.R . ( )/ ORDER DATE OF HEARING : 19 -10-20 16 DATE OF PRONOUNCEMENT : 20 -10-2016 PER N.K. BILLAIYA, ACCOUNTANT MEMBER: 1. THIS APPEAL BY THE ASSESSEE IS PREFERRED AGAINST TH E ORDER OF LD. CIT(A)-IV, SURAT DATED 22.02.2013 PERTAINING TO A.Y. 2008-09. ITA NO. 1298 /AHD/2013 . A.Y. 2008-09 2 2. THE SUM AND SUBSTANCE OF THE GRIEVANCE OF THE ASSES SEE IS THAT THE LD. CIT(A) ERRED IN CONFIRMING THE ADDITION OF RS. 16,2 7,800/- ADDED BY THE A.O. U/S. 69 OF THE ACT. 3. THE ASSESSEE IS IN THE BUSINESS OF SHARE TRADING AN D HAS DERIVED BROKERAGE DURING THE YEAR UNDER CONSIDERATION. 4. WHILE SCRUTINIZING THE RETURN OF INCOME, THE A.O. C AME TO KNOW THAT THE ASSESSEE HAS DEPOSITED CASH OF RS. 16,27,800/- IN T HE SURAT PEOPLES CO-OP. BANK DURING THE YEAR UNDER CONSIDERATION. THE ASSES SEE WAS ASKED TO EXPLAIN THE SOURCE OF THE DEPOSIT OF CASH. ASSESSEE FILED BANK STATEMENT OF SURAT PEOPLES CO-OP. BANK AND BANK OF INDIA. THE A .O. NOTICED THAT THE ASSESSEE WAS MAINTAINING ANOTHER BANK ACCOUNT IN SU RAT PEOPLES CO-OP. BANK WHICH WAS NOT DISCLOSED IN THE BALANCE SHEET. ASSESSEE WAS ONCE AGAIN ASKED TO EXPLAIN THE SOURCE OF CASH DEPOSITED IN THE SAID BANK. ASSESSEE FILED A DETAILED REPLY STATING THAT THE DE POSITS WERE OUT OF THE WITHDRAWALS MADE FROM OTHER BANKS AND IN ANY CASE T HE ENTIRE DEPOSIT CANNOT BE TREATED AS UNEXPLAINED INCOME OF THE ASSE SSEE AND ONLY PEAK CREDIT SHOULD BE CONSIDERED FOR ADDITIONS IF ANY. T HIS SUBMISSION OF THE ASSESSEE DID NOT FIND ANY FAVOUR WITH THE A.O. WHO MADE THE ADDITION OF THE ENTIRE CASH DEPOSIT OF RS. 16,27,800/-. 5. ASSESSEE CARRIED THE MATTER BEFORE THE LD. CIT(A) A ND REITERATED ITS CLAIM OF THE ADDITION OF PEAK CREDIT ONLY. THE LD. CIT(A) WA S NOT CONVINCED AND CONFIRMED THE ASSESSMENT. ITA NO. 1298 /AHD/2013 . A.Y. 2008-09 3 6. AGGRIEVED BY THIS, THE ASSESSEE IS BEFORE US. THE L D. COUNSEL FOR THE ASSESSEE DREW OUR ATTENTION TO THE REPLY FILED BEFORE THE A. O. AND STATED THAT THE ASSESSEE HAS GIVEN A COMPLETE COMPUTATION OF THE PE AK CREDIT OF RS. 5,83,877/- WHICH HAS NOT BEEN CONSIDERED BY THE REV ENUE AUTHORITIES. IT IS THE SAY OF THE LD. COUNSEL THAT THE ENTIRE DEPOSIT CANNOT BE ADDED AS THE SAME IS OUT OF THE BUSINESS TRANSACTION OF THE ASSE SSEE. PER CONTRA, THE LD. D.R. STRONGLY SUPPORTED THE FINDINGS OF THE REVENUE AUTHORITIES. 7. HAVING HEARD THE RIVAL CONTENTIONS, WE HAVE CAREFUL LY PERUSED THE ORDERS OF THE AUTHORITIES BELOW. WE FIND FORCE IN THE CONTENT ION OF THE LD. COUNSEL THAT THE ENTIRE CASH DEPOSIT CANNOT BE TREATED AS T HE UNEXPLAINED INCOME OF THE ASSESSEE. WE ALSO FIND THAT THE ASSESSEE HAS GIVEN A DETAILED WORKING OF PEAK CREDIT. THEREFORE, IN THE INTEREST OF JUSTI CE AND FAIR PLAY, WE RESTORE THIS ISSUE TO THE FILES OF THE A.O. THE ASSESSEE IS DIRECTED TO FURNISH THE WORKING OF THE PEAK CREDIT AND THE A.O. IS DIRECTED TO VERIFY THE SAME AND IF FOUND CORRECT, THE PEAK CREDIT AMOUNT SHOULD BE TAK EN AS THE UNDISCLOSED INCOME OF THE ASSESSEE. 8. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS TREATED AS ALLOWED FOR STATISTICAL PURPOSE. ORDER PRONOUNCED IN OPEN COURT ON 20 - 10- 201 6. SD/- SD/- (S. S. GODARA) (N. K. BILLAIYA) JUDICIAL MEMBER ACCOUNTANT MEMBER AHMEDABAD: TRUE COPY