KADY MERCANTILE PRIVATE LIMITED, MUMBAI V. INCOME TAX OFFICER WARD 1(2)(2), MUMBAI

ITA 1452/MUM/2018

• Counselvise Citation: [2018] 119 COUNSELVISE.COM (IT) 5039 (ITAT-MUMBAI)
• Duration Of Justice: 7 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-10-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2013-2014
• Appeal Filed On: 08-03-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S K BEPARIDR
• Assessee Lawyers: ASHISH R KUPILA
• Keywords: Principle of natural justice
• Section: 142(1); 68

Judgement Text

, - , IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES SMC, MUMBAI , ! ' , BEFORE SHRI JOGINDER SINGH, JUDICIAL MEMBER, ITA NO.1452/MUM/2018 ASSESSMENT YEAR:2013-14 KADY MERCANTILE PVT. LTD. 8 TH FLOOR, NEW HARILEELA HOUSE, 34-38 MINTO ROAD, FORT, NEAR G.P.O. MUMBAI-400001 / VS. INCOME TAX OFFICER-1(2)(2), AAYAKAR BHAVAN, M. K. ROAD, MUMBAI-400020 / ASSESSEE / REVENUE P.A. NO . AADCK7629P $ % & / ASSESSEE BY SHRI N. A. KULKARNI & SHRI ASHISH R. KUPILA $ % & / REVENUE BY SHRI S.K. BEPARI-DR / DATE OF HEARING 10/10/2018 & / DATE OF ORDER: 10/10/2018 & / O R D E R THE ASSESSEE IS AGGRIEVED BY THE IMPUGNED ORDER DA TED 29/11/2017 OF THE LD. FIRST APPELLATE AUTHORITY, MU MBAI, ITA NO.1452/MUM/2018 KADY MERCANTILE PVT. LTD. 2 CONFIRMING THE ADDITION OF RS.11,26,000/- MADE UNDE R SECTION 68 OF THE INCOME TAX ACT, 1961 (HEREINAFTER THE ACT). 2. DURING HEARING, SHRI N. A. KULKARNI, LD. COUNSE L FOR THE ASSESSEE, EXPLAINED THAT THE ASSESSEE IS CONTES TING THE ADDITION OF UNSECURED LOANS OF RS.4 LAKHS, INTEREST ON LOAN OF RS.22,467/- TO FULADEVI S. JAIN AND RS.18,000/- FRO M MEENADEVI PAMECHA. IT WAS CONTENDED THAT THE ASSESS EE RECEIVED THE AMOUNT BY CHEQUE AND THE BANK MERGED W ITH ANOTHER BANK, THEREFORE, THE ASSESSEE COULD NOT PRO DUCE THE BANK STATEMENT, CONSEQUENTLY, THE ASSESSEE MAY BE P ROVIDED OPPORTUNITY TO EXPLAIN THE AMOUNTS. SO FAR AS, THE AMOUNT OF RS.18,000/- IS CONCERNED, IT WAS EXPLAINED THAT SHE HOLDS THE PAN BUT DID NOT FILE THE RETURN, THEREFORE, THE ASS ESSEE MAY BE GIVEN OPPORTUNITY TO EXPLAIN THE SAME. IT WAS PL EADED THAT THE ASSESSEE IS IN A POSITION TO FILE CONFIRMATION WITH RESPECT TO LOAN. 2.1. ON THE OTHER HAND, THE LD. DR, SHRI S. K. BEP ARI, DEFENDED THE ADDITION CONFIRMED BY LD. ASSESSING OF FICER BUT ADDED THAT IF THE ARGUMENT OF THE ASSESSEE IS ACCEP TED THEN IT NEEDS VERIFICATION AT THE LEVEL OF THE LD. ASSESSIN G OFFICER. ITA NO.1452/MUM/2018 KADY MERCANTILE PVT. LTD. 3 2.2. I HAVE CONSIDERED THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. THE FACTS , IN BRIEF, ARE THAT THE ASSESSEE IS ENGAGED IN THE BUSINESS OF TRADING IN CLOTHS, DECLARED NIL INCOME IN ITS RETURN FILED ON 30/09/2013, WHICH WAS PROCESSED UNDER SECTION 143(1) OF THE ACT . THE CASE OF THE ASSESSEE WAS SELECTED FOR SCRUTINY, THE REFORE, NOTICE UNDER SECTIONS 143(2) AND 142(1) WERE ISSUED AND SERVED UPON THE ASSESSEE ALONG WITH A QUESTIONNAIRE CALLING UPON VARIOUS DETAILS AND EXPLANATION. IT WAS NOTED BY THE LD. ASSESSING OFFICER THAT THE ASSESSEE DEPOSITED CASH OF RS.14,17,000/- ON VARIOUS DATES IN HIS DEUTSCHE BAN K ACCOUNTS, THE DETAILS OF WHICH ARE MENTIONED IN THE ASSESSMENT ORDER. THE ASSESSEE WAS ASKED TO FURNISH THE SOURCE OF ABOVE DEPOSITS ALONG WITH DOCUMENTARY EVI DENCE. THE STAND OF THE REVENUE IS THAT THE ASSESSEE COULD NOT FURNISH THE NECESSARY EVIDENCE WITH RESPECT TO CASH DEPOSITED IN THE BANK ACCOUNT. HOWEVER, BEFORE THIS TRIBUNAL THE CLAIM OF THE ASSESSEE IS THAT DURING THE RELEVANT TIME, T HE BANK MERGED WITH ANOTHER BANK, THEREFORE, THE NECESSARY DOCUMENTS/EVIDENCES COULD NOT BE FURNISHED AND IF A CHANCE IS GIVEN, THE ASSESSEE IS IN A POSITION TO SUBSTANT IATE ITS ITA NO.1452/MUM/2018 KADY MERCANTILE PVT. LTD. 4 CLAIM. CONSIDERING THE TOTALITY OF FACTS, PRINCIPL E OF NATURAL JUSTICE AND THE ARGUMENTS NARRATED BEFORE ME, I AM OF THE VIEW THAT SO FAR AS THE ADDITION UNDER SECTION 68 O F THE ACT IS CONCERNED, ONUS IS UPON THE ASSESSEE TO EXPLAIN THE NATURE, GENUINENESS AND CREDITWORTHINESS, THEREFORE, THE AS SESSEE IS DIRECTED TO FURNISH THE NECESSARY EVIDENCE, IF ANY, IN SUPPORT OF ITS CLAIM BEFORE THE LD. ASSESSING OFFICER, WHO WILL EXAMINE THE CLAIM OF THE ASSESSEE AFRESH AND DECIDE IN ACCO RDANCE WITH LAW. SO FAR AS, THE OTHER ADDITIONS ARE CONCER NED, THE ASSESSEE HAS TO SUBSTANTIATE ITS CLAIM, THUS, THE A PPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. THE A SSESSEE BE GIVEN OPPORTUNITY. FINALLY, THE APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. THIS ORDER WAS PRONOUNCED IN THE OPEN COURT IN THE PRESENCE OF LD. REPRESENTATIVES FROM BOTH SIDES AT THE CONCLUSION OF THE HEARING ON 10/10/2018. SD/- (JOGINDER SINGH) ! ' / JUDICIAL MEMBER MUMBAI; DATED : 10/10/2018 F{X~{T? P.S / ! ITA NO.1452/MUM/2018 KADY MERCANTILE PVT. LTD. 5 & $ )!*+ ,&+-* / 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, / (DY./ASSTT. REGISTRAR) , / ITAT, MUMBAI