HARMEET SINGH SABLOK, MUMBAI V. ITO WD 19(2)(3), MUMBAI

ITA 1469/MUM/2015

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 3005 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 3 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-06-2016
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Assessment Year: 2010-2011
• Appeal Filed On: 11-03-2015
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Assessee Lawyers: S S PHADKAR
• Keywords: Business income
• Section: 147

Judgement Text

- IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH, MUMBAI BEFORE SHRI SANJAY ARORA , AM ./ I.T.A. NO. 1469/MUM/2015 ( / ASSESSMENT YEAR: 2010 - 11 ) HARMEET SINGH SABLOK A/24, Q UEENS PARK PREMISES CHS LTD., JUHU, SANTACRUZ (W), MUMBAI - 400 049 / VS. ITO, WARD - 19(2), PIRAMAL CHAMBERS, LALBAUG, MUMBAI - 400 012 ./ ./ PAN/GIR NO. ALRPS 3621 D ( / APPELLANT ) : ( / RESPONDENT ) / APPELLANT BY : SHRI S. S. PHADKAR / RESPONDENT BY : SHRI ARVIND KUMAR / DATE OF HEARING : 27.6.2016 / DATE OF PRONOUNCEMENT : 29 .6.2016 / O R D E R PER SANJAY ARORA, A. M.: THIS IS AN A PPEAL BY THE ASSESSEE DIRECTED AGAINST THE ORDER BY THE COMMISSIONER OF INCOME TAX (APPEALS) - 32 , MUMBAI (CIT(A) FOR SHORT) DATED 27.1.2015, DISMISSING THE A SSESSEES APPEAL CONTESTING ITS ASSESSMENT U/S.143(3) R/W S. 147 OF THE INCOME TAX ACT, 19 61 (THE ACT HEREINAFTER) FOR THE ASSESSMENT YEAR (A.Y.) 2010 - 11 VIDE ORDER DATED 13.3.2014 . 2. THE ISSUE UNDER APPEAL; THE ASSESSEE NOT PRESSING H IS G ROUND # 1 , PERTAINS TO AN ADDITION FOR RS.22,92,105/ - U/S. 69 OF THE ACT TOWARD UNEXPLAINED DEPOSIT S IN TH E ASSESSEES BANK ACCOUNT WITH STANDARD CHARTERED BANK, CENTRE POINT BRANCH, MUMBAI 2 ITA NO. 1469/MUM/2015 (A.Y. 2010 - 11) HARMEET S INGH SABLOK VS. ITO (ACCOUNT NO . 22310686071 ) , MADE IN THE IMPUGNED SUM (I.E., EXCLUDING DEPOSIT FOR RS.1 , 888/ - BY WAY OF BANK INTEREST) DURING THE CURRENT YEAR IN - AS - MUCH AS THE SAID BANK ACCOUNT WAS UNDISCLOSED. THE CASE HAS A PAST HISTORY . T HE ASSESSMENT S FOR A.Y S . 2008 - 09 AND 2009 - 10 WERE LIKE - WISE TAKEN UP UNDER THE VERIFICATION PROCEDURE UNDER THE ACT BY THE REVENUE ON THE RECEIPT OF AIR INFORMATION, I.E., QUA THE CASH DEPOSITS IN THE SAID BANK ACCOUNT. THE MATTER TRAVELLED UP TO THE T RIBUNAL, WHICH , ON A CONSIDERATION OF ENTIRETY OF THE FACTS AND CIRCUMSTANCES OF THE CASE , CONFIRMED THE ADDITION TO THE EXTENT OF 25% OF THE DEPOSITS IN THE SAID BANK ACCOUNT, VIDE ITS ORDER FOR A.Y. 2009 - 10 (IN ITA NO. 7580/MUM/2013 DATED 30.6.2015 ) , AND FOLLOWING IT , PER ORDER DATED 12.10.2015 FOR A.Y. 2008 - 09 (IN ITA NO. 1468/MUM/2015 ) , COPIES OF WHICH WERE PLACED ON RECORD BY THE LD. AR DURING HEARING, REFERRING TO THE OPERATING PART THERE OF. FURTHER, THOUGH HE CONCEDED TO THE INCOME QUA THE SAID BANK ACCOUNT B E SIMILAR LY ESTI MA T ED FOR THE CURRENT YEAR , I.E., AT 25% OF THE IMPUGNED DEPOSIT, HE RAISED ANOTHER PLEA, RAISING A FACTUAL ISSUE, THAT THE INCOME ALREADY RETURNED AS BUSINESS INCOME (RS.2,44,000/ - /PB PGS. 23 - 24) , AND ASSESSED AS SUCH, BE ADJUSTED/SET OFF AGAINST THE INCOME SO ESTIMATED AND ONLY THE BALANCE BE ADDITIONALLY BROUGHT TO TAX. THE LD. DR WOULD OBJECT, STATING THAT THERE IS NO FACTUAL BASIS FOR THE ASSESSEE TO RAISE THE SAID CLAIM, WHI CH IS BEING RAISED BEFORE THE TRIBUNAL FOR THE FIRST TIME. 3. THE PARTIES WERE HEARD, AND THE MATERIAL ON RECORD PERUSED, GIVING A CAREFUL CONSIDERATION TO THE MATTER. I FIND NO MERIT IN THE ASSESSEES , WHOSE WHOLE CASE IS UN - EVIDENCED , SAID PLEA . HE HAS B EEN ALLOWED RELIEF BY THE TRIBUNAL FOR THE EARLIER YEARS ON THE GROUND THAT HE BEING A BUSINESSMAN , THE BANK ACCOUNT UNDER REFERENCE WOULD ALSO BE SIMILARLY, I.E., AS HIS OTHER BANK ACCOUNTS, DEPLOYED FOR BUSINESS PURPOSES, AND THAT THE DEPOSITS THEREIN TH EREFORE DO NOT WHOLLY REPRESENT INCOME FROM HIS BUSINESS , ESTIMATING A PART OF THE SAID DEPOSITS , WHICH CONTINUE TO BE UNEXPLAINED, AS BEARING THE CHARACTER OF INCOME , I.E., AS THE INCOME EMBEDD E D IN THE SAID RECEIPTS . THERE IS IN FACT NOTHING ON RECORD TO EXHIBIT THAT THE ASSESSEE IS IN THE BUSINESS OF AUTO PARTS AND SALE 3 ITA NO. 1469/MUM/2015 (A.Y. 2010 - 11) HARMEET S INGH SABLOK VS. ITO OF OLD C ARS, AS CONTENDED. THE CLAIMED SET - OFF COULD ONLY BE WHERE THE INCOME AS REFLECTED PER THE IMPUGNED ACCOUNT STANDS DISCLOSED PER THE RETURN OF INCOME. THE ASSESSEE ADMITTEDLY DOES NOT MAINTAIN ANY BOOKS OF ACCOUNT. T HERE IS NOTHING TO SHOW THAT THE INCOME RETURNED ALSO INCLUDES THAT PER THE BANK ACCOUNT WITH STANDARD CHARTERED BANK (SCB) , IMPLYING OF IT BEING IN EFFECT DISCLOSED. THE RETURNED BUSINESS INCOME OF RS.2.44 LACS WORKS T O ~ 18% OF THE TOTAL RECEIPT OF RS.13.59 LACS AS REFLECTED IN THE ASSESSEES DISCLOSED BANK ACCOUNTS WITH PMC BANK (PB PG. 22) AND KOTAK MAHINDRA BANK (PB PG. 42) , WHICH IS LOWER THAN THAT ESTIMATED BY THE TRIBUNAL . THERE IS THUS NO BASIS FOR THE SAID PLEA . W HY, THE ASSESSEE HAS ALSO NOT RETURNED THE BANK INTEREST OF RS. 1,888/ - , REFLECTED IN THE SCB A/C, WHICH DEMONSTRATES , IF ANY PROOF WAS NECESSARY, THAT THE INCOME RETURNED DID NOT INCLUDE THAT ARISING PER THE SAID ACCOUNT (WITH SCB) . THE SAID PLEA IS, ACCORDINGLY , REJECTED, WHILE RESTRICTING THE ADDITION QUA THE DEPOSITS IN THE STANDARD CHARTERED BANK, WHICH THUS CONTINUES TO BE UNDISCLOSED, AT 25% OF THE IMPUGNED SUM OF RS. 22.92 LACS , AS ESTIMATED BY THE TRIBUNAL FOR THE EARLIER YEARS . IT IS SURPRISIN G, IT MAY BE ADDED, THAT THE ASSESSEE CONTINUES TO NOT DISCLOSE THE INCOME IN THE SAID ACCOUNT TO THE REVENUE. NEEDLESS TO ADD, THE BANK INTEREST OF RS. 1,888/ - , THOUGH EXPLAINED AS TO ITS NATURE AND SOURCE , IS ONLY INCOME FOR THE CURRENT YEAR , AND BEING U NDISCLOSED, WOULD ALSO REQUIRE BEING ADDED SEPARATELY. I DE CIDE ACCORDINGLY. 3. IN THE RESULT, THE ASSESSEES APPEAL IS PARTLY ALLOWED . ORDER PRONOUNCED IN THE OPEN COURT ON JUNE 29 , 201 6 SD/ - (S ANJAY ARORA) / A CCOUNTANT MEMBER MUMBAI ; DATED : 29 . 0 6 .201 6 . . ./ ROSHANI , SR. PS 4 ITA NO. 1469/MUM/2015 (A.Y. 2010 - 11) HARMEET S INGH SABLOK VS. ITO / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT 3. ( ) / THE CIT(A) 4. / CIT - CONCERNED 5. , , / DR, ITAT, MUMBAI 6. / GUARD F ILE / BY ORDER, / (DY./ASSTT. REGISTRAR) , / ITAT, MUMBAI