ASST CIT CC 43, MUMBAI V. NASIR MUKHTAR ALI ZAIDI, MUMBAI

ITA 1333/MUM/2014

• Counselvise Citation: 133319914 RSA 2014
• Duration Of Justice: 1 year(s) 3 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-06-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2005-2006
• Appeal Filed On: 27-02-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: A K DHONDIAL
• Assessee Lawyers: SHABNUM KEDIA
• Keywords: Unexplained cash credit; Unexplained investment; Gift; Search and seizure
• Section: 132

Judgement Text

, - , IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES SMC, MUMBAI ,!' , BEFORE SHRI JOGINDER SINGH, JUDICIAL MEMBER, ITA NO.1333/MUM/2014 ASSESSMENT YEAR: 2005-06 ASST. COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-43, R. NO.659, 6 TH FLOOR, AAYAKAR BHAVAN, M.K.ROAD MUMBAI-400020 / VS. NASIR MUKHTAR ALI ZAIDI KENNEDY HOUSE, 2 ND FLOOR, GOREGAONKAR ROAD, NANA CHOWK, MUMBAI / REVENUE / ASSESSEE P.A. NO. AAHPZ2255K $%& / ASSESSEE BY MS. SHABNUM KEDIA $%& / REVENUE BY SHRI A.K.DHONDIAL-CIT-DR / DATE OF HEARING 10/06/2015 & / DATE OF ORDER: 10/06/2015 &/ O R D E R PER JOGINDER SINGH (JUDICIAL MEMBER) THE REVENUE IS AGGRIEVED BY IMPUGNED ORDER DATED 20/12/2013 OF THE LD. FIRST APPELLATE AUTHORITY, MU MBAI. THE ONLY GROUND RAISED IS THAT THE LD. COMMISSIONER OF INCOME TAX (APPEALS) ERRED IN DELETING THE ADDITION MADE ON PR OTECTIVE BASIS IN THE HANDS OF THE ASSESSEE IN RESPECT OF THE AMOU NT DEPOSITED IN THE JOINT BANK ACCOUNT WITH MS. CHANDBIBI ZAIDI, WITHOUT ITA NO.1333/MUM/2014 NASIR MUKHTAR ALI ZAIDI 2 APPRECIATING THE FACT THAT THE ASSESSEE IS A STUDEN T, STUDYING OUTSIDE INDIA, WITH NO INDEPENDENT SOURCE OF INCOME , WITHOUT CORRECTLY INTERPRETING THE REMAND REPORT OF THE ASS ESSING OFFICER AND REACHING TO A WRONG CONCLUSION AND THUS DELETIN G THE ADDITION OF RS.35,400/- MADE IN RESPECT OF INTEREST AMOUNT. 2. DURING HEARING OF THIS APPEAL, I HAVE HEARD, SH RI A.K.DHONDIAL, LD. DR, WHO ADVANCED HIS ARGUMENTS WH ICH ARE IDENTICAL TO THE GROUND RAISED. ON THE OTHER HAND, MS. SHABNUM KEDIA, LD. COUNSEL FOR THE ASSESSEE, DEFEND ED THE CONCLUSION ARRIVED AT IN THE IMPUGNED ORDER. THE L D. COUNSEL FURTHER CONTENDED THAT THE FACTS AND THE ISSUE ARE IDENTICAL TO THE CASE OF ACIT VS RAVISH P. ZAIDI (ITA NO.1347/MU M/ 2014). 2.1. I HAVE CONSIDERED THE RIVAL SUBMISSIONS AND P ERUSED THE MATERIAL AVAILABLE ON RECORD. I FIND THAT IDE NTICALLY IN THE CASE OF RAVISH P. ZAIDI (SUPRA), THE BENCH CONSIDER ED THE FACTS AND FOUND THAT THE FACTS AND THE ISSUE ARE IDENTICA L, WHEREIN, VIDE ORDER DATED 10/06/2015, THE BENCH DISMISSED TH E APPEAL OF THE REVENUE. THE RELEVANT PORTION OF THE ORDER OF THE TRIBUNAL (SUPRA) IN ITA NO. 1347/MUM/2014 IS REPRODUCED HERE UNDER:- 2.1. I HAVE CONSIDERED THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. THE FACTS, IN BRIEF, ARE THAT A SEARCH AND SEIZURE ACTION U/S 132 (1 ) OF THE INCOME TAX ACT, 1961 (HEREINAFTER THE ACT) WAS CARRIED OUT IN CHANDBIBI ZAIDI, GROUP OF CASES ON 20/08/2009. THE CASE OF THE ASSESSEE, WHO WAS THE DAUGHTER OF THE SISTER OF CHANDBIBI ZAIDI WAS CENTRALI ZED. ITA NO.1333/MUM/2014 NASIR MUKHTAR ALI ZAIDI 3 A BANK ACCOUNT IN THE JOINT NAME OF MS. RAVISH ZAIDI A ND CHANDBIBI ZAIDI WAS WITH NOVA SCOTIA BANK, NARIMAN POINT BRANCH, MUMBAI, WAS FOUND. THERE WERE DEPOSI TS TO THE TUNE OF RS.23,71,427/-, INCLUDING INTEREST IN THE FINANCIAL YEAR 2004-05. THE DEPOSITS WERE OFFERED F OR TAXATION. THE AMOUNT WAS HELD TO BE UNEXPLAINED INVESTMENT AND THUS ADDED U/S 69B OF THE ACT. THE ASSESSEE CARRIED THE MATTER IN APPEAL BEFORE THE LD. COMMISSIONER OF INCOME TAX (APPEALS). BEFORE THE LD . FIRST APPELLATE AUTHORITY, THE ASSESSEE VIDE LETTER DATE D 19/02/2013, CLAIMED THAT THE AMOUNTS WERE RECEIVED BACK FROM MUMBAI MAJDOOR SABHA, AMOUNTING TO RS.10 LAKHS WHICH WAS INVESTED IN EARLIER YEARS BEFORE 01/04/2001 AND RS.2 LAKH AND RS.8 LAKH WAS GIFTED BY MS. CHANDBIBI ON 01/04/2001. TO SUBSTANTIATE ITS CLAIM, THE ASSESSEE FILED CONFIRMATION FROM MUMBAI MAJDOOR SABHA FOR MS RAVISH ZAIDIS ACCOUNTS, ALONG WITH BALANCE-SHEET AS ON 31/12/2001, CONFIRMATION OF COPY OF ACCOUNT OF MS. CHANDBIBI, LETTER OF GIFT FROM M S. CHANDBIBI, COPY OF BALANCE SHEET AND CAPITAL ACCOUNT O F MS. CHANDBIBI AS ON 31/03/2002, COPY OF ACKNOWLEDGEMENT OF RETURN, BANK STATEMENT OF MUMBAI MAJDOOR SABHA FOR REPAYMENT OF LOAN IN MAY 2004 (RS. 10 LAKHS) AND THE INVESTMENT MADE, APPEARING IN THE BALANCE SHEET, AS ON 31/03/2002. ALL THESE DOCUMEN TS WERE FORWARDED TO THE ASSESSING OFFICER FOR HIS COMME NTS AND THE ACIT VIDE LETTER DATED 31/11/2013, THROUGH ADDL.CIT SENT THE REMAND REPORT THAT TOO AFTER VERIFICATION OF BANK ACCOUNTS. IN THE REMAND REPORT, THE ASSESSING OFFICER FOUND NO UNEXPLAINED CASH CREDITS. THE RELE VANT ITA NO.1333/MUM/2014 NASIR MUKHTAR ALI ZAIDI 4 FINDING OF THE COMMISSIONER OF INCOME TAX (APPEALS) AS CONTAINED IN PARA 5.2 OF THE IMPUGNED ORDER IS REPRODUCED HEREUNDER FOR READY REFERENCE:- 5.2. IN THE REMAND REPORT SUBMITTED BY THE ASSESSI NG OFFICER ACIT CENTRAL CIRCLE-43, MUMBAI DATED 28/11/ 2013 THROUGH ADDITIONAL CIT CENTRAL RANGE 6, MUMBAI, THE CREDITS IN THE BANK ACCOUNTS WERE VERIFIED AND IT WAS SUBMI TTED THAT NO UNEXPLAINED CREDITS WERE FOUND. HENCE THE ADDIT ION MADE OF RS.20,00,000/- IN AY 2005-06 AND RS.5,80,000/- F OR AY 2006-07 ARE DELETED. THE GROUND OF APPEAL NO. 1 IS TO THIS EXTENT ALLOWED. IN VIEW OF THE SUBMISSION OF THE ASSESSEE AND REMAN D REPORT BY THE ASSESSING OFFICER, THE IMPUGNED ADDITION WAS DELETED BY THE LD. COMMISSIONER OF INCOME TAX (APPEALS). NO CONTRARY EVIDENCE WAS PRODUCED BY THE REVENUE IN SUPPORT OF THE GROUND RAISED, THEREFORE, I FIND NO INFIRMITY IN THE CONCLUSION DRAWN BY THE LD. COMMISSIONER OF INCOME TAX (APPEALS). IT IS UPHELD. FINALLY, THE APPEAL OF THE REVENUE IS DISMISSED. SINCE THE FACTS AND THE ISSUE ARE IDENTICAL TO THE CASE OF RAVISH P. ZAIDI (SUPRA) AND THE LD. COMMISSIONER OF INCOME TAX (APPEALS) DELETED THE ADDITION PURELY ON THE BASIS OF REMAND REPORT BY THE ASSESSING OFFICER, WHEREIN, IT WAS FO UND BY THE ASSESSING OFFICER THAT NO ADDITION IS WARRANTED, TH US, FOLLOWING THE AFORESAID DECISION OF THE TRIBUNAL AND THE FACT UAL FINDING RECORDED BY THE LD. COMMISSIONER OF INCOME TAX (APP EALS), I FIND NO MERIT IN THE APPEAL OF THE REVENUE, CONSEQUENTLY , DISMISSED. ITA NO.1333/MUM/2014 NASIR MUKHTAR ALI ZAIDI 5 FINALLY, THE APPEAL OF THE REVENUE IS DISMISSED. THIS ORDER WAS PRONOUNCED IN THE OPEN COURT IN T HE PRESENCE OF LEARNED REPRESENTATIVES FROM BOTH THE S IDES AT THE CONCLUSION OF THE HEARING ON 10 TH JUNE 2015. SD/- (JOGINDER SINGH) !' / JUDICIAL MEMBER MUMBAI; DATED : 10/06/2015 F{X~{T? P.S / ! &$)!*+,&+-* / COPY OF THE ORDER FORWARDED TO : 1. '#$%& / THE APPELLANT 2. '(%& / THE RESPONDENT. 3. ) ) * ( '#$ ) / THE CIT, MUMBAI. 4. ) ) * / CIT(A)- , MUMBAI 5. -./ ' , ) '#$ ' 1 , / DR, ITAT, MUMBAI 6. /2 3$ / GUARD FILE. & / BY ORDER, (-# ' //TRUE COPY// / (DY./ASSTT. REGISTRAR) , / ITAT, MUMBAI