ASST CIT CC 43, MUMBAI V. RAVISH P ZAIDI, MUMBAI

ITA 1347/MUM/2014

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 92806 (ITAT-MUMBAI)
• 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: 2006-2007
• 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; 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.1347/MUM/2014 ASSESSMENT YEAR: 2006-07 ASST. COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-43, R. NO.659, 6 TH FLOOR, AAYAKAR BHAVAN, M.K.ROAD MUMBAI-400020 / VS. RAVISH P ZAIDI, KENNEDY HOUSE, 2 ND FLOOR, GOREGAONKAR ROAD, NANA CHOWK, MUMBAI / REVENUE / ASSESSEE P.A. NO. AASPZ 2373F $%& / REVENUE BY SHRI A.K.DHONDIAL-CIT-DR $%& / ASSESSEE BY MS. SHABNUM KEDIA / 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 ITA NO.1347/MUM/2014 RAVISH P ZAIDI 2 PROTECTIVE BASIS IN THE HANDS OF THE ASSESSEE IN RE SPECT OF THE AMOUNT DEPOSITED IN THE JOINT BANK ACCOUNT WITH MS. CHANDBIBI ZAIDI, WITHOUT APPRECIATING THE FACT THAT THE ASSESSEE IS A STUDENT, STUDYING OUTSIDE INDIA, WITH NO INDEPENDENT SOURCE OF INCOME, WITHOUT CORRECTLY INT ERPRETING THE REMAND REPORT OF THE ASSESSING OFFICER AND REAC HING TO A WRONG CONCLUSION. 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 H AND, MS. SHABNUM KEDIA, LD. COUNSEL FOR THE ASSESSEE, DEFEND ED THE CONCLUSION ARRIVED AT IN THE IMPUGNED ORDER. 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 CARR IED 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 CENTRALIZED. A BANK ACCOUNT IN THE JOINT NAME OF MS. RAVISH ZAIDI AND CHANDBIBI ZAIDI WAS WITH NOVA SCOTIA BANK, NARIMAN POINT BRANCH, MUMBAI, WAS FOUND. THE RE WERE DEPOSITS TO THE TUNE OF RS.23,71,427/-, INCLUD ING INTEREST IN THE FINANCIAL YEAR 2004-05. THE DEPOSI TS WERE OFFERED FOR TAXATION. THE AMOUNT WAS HELD TO BE UN EXPLAINED INVESTMENT AND THUS ADDED U/S 69B OF THE ACT. THE ASSESSEE CARRIED THE MATTER IN APPEAL BEFORE THE LD. COMMISS IONER OF ITA NO.1347/MUM/2014 RAVISH P ZAIDI 3 INCOME TAX (APPEALS). BEFORE THE LD. FIRST APPELLA TE AUTHORITY, THE ASSESSEE VIDE LETTER DATED 19/02/201 3, CLAIMED THAT THE AMOUNTS WERE RECEIVED BACK FROM MU MBAI 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 CONFI RMATION FROM MUMBAI MAJDOOR SABHA FOR MS RAVISH ZAIDIS ACC OUNTS, ALONG WITH BALANCE-SHEET AS ON 31/12/2001, CONFIRMA TION OF COPY OF ACCOUNT OF MS. CHANDBIBI, LETTER OF GIFT FR OM MS. CHANDBIBI, COPY OF BALANCE SHEET AND CAPITAL ACCOUN T OF 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 DOCUMENTS WERE FORWARDED TO THE ASSESSING OFFICER FOR HIS COMMENTS AND THE ACIT VID E LETTER DATED 31/11/2013, THROUGH ADDL.CIT SENT THE REMAND REPORT THAT TOO AFTER VERIFICATION OF BANK ACCOUNTS. IN T HE REMAND REPORT, THE ASSESSING OFFICER FOUND NO UNEXPLAINED CASH CREDITS. THE RELEVANT FINDING OF THE COMMISSIONER OF INCOME TAX (APPEALS) AS CONTAINED IN PARA 5.2 OF THE IMPUG NED 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 THR OUGH ADDITIONAL CIT CENTRAL RANGE 6, MUMBAI, THE CREDITS IN THE BANK ACCOUNTS WERE VERIFIED AND IT WAS SUBMITTED THAT NO UNEXPLAINED CREDITS WERE FOUND. HENCE THE ADDITION MADE OF RS. 20,00,000/- IN ITA NO.1347/MUM/2014 RAVISH P ZAIDI 4 AY 2005-06 AND RS.5,80,000/- FOR AY 2006-07 ARE DEL ETED. THE GROUND OF APPEAL NO. 1 IS TO THIS EXTENT ALLOWED. IN VIEW OF THE SUBMISSION OF THE ASSESSEE AND REM AND REPORT BY THE ASSESSING OFFICER, THE IMPUGNED ADDIT ION WAS DELETED BY THE LD. COMMISSIONER OF INCOME TAX (APPE ALS). NO CONTRARY EVIDENCE WAS PRODUCED BY THE REVENUE IN SU PPORT OF THE GROUND RAISED, THEREFORE, I FIND NO INFIRMITY I N THE CONCLUSION DRAWN BY THE LD. COMMISSIONER OF INCOME TAX (APPEALS). IT IS UPHELD. FINALLY, THE APPEAL OF THE REVENUE IS DISMISSED. THIS ORDER WAS PRONOUNCED IN THE OPEN COURT IN THE 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