Shri Kiritkumar Himatlal Dholakia, Ahmedabad V. The Income Tax Officer, Ward-14(1), Ahmedabad

ITA 1491/AHD/2015

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 8242 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 5 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-11-2017
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: A
• Assessment Year: 2011-2012
• Appeal Filed On: 26-05-2015
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: DR ANUPAMA SINGALA
• Assessee Lawyers: K C THAKER

Judgement Text

, .. , IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH, AHMEDABAD .., , BEFORE SHRI S.S. GODARA, JUDICIAL MEMBER & SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER ./ I.T.A. NO.1491/AHD/2015 ( / ASSESSMENT YEAR : 2011-12) KIRITKUMAR HIMATLAL DHOLAKIA 801, SUKAN APARTMENT BODAKDEV ROAD, VASTRAPUR AHMEDABAD / VS. THE ITO WARD-14(1) AHMEDABAD $ ./ ./ PAN/GIR NO. : ABIPD 2443 B ( $' / APPELLANT ) .. ( ($' / RESPONDENT ) $') / APPELLANT BY : SHRI K.C. THAKER, AR ($'*) / RESPONDENT BY : DR. ANUPAMA SINGALA, SR.DR +,*- / DATE OF HEARING 07/11/2017 ./0*- / DATE OF PRONOUNCEMENT 10 / 11 /2017 / O R D E R PER PRADIP KUMAR KEDIA - AM: THE CAPTIONED APPEAL FILED AT THE INSTANCE OF THE ASSESSEE IS AGAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX(APPEALS ), AHMEDABAD-5 [CIT(A) IN SHORT] DATED 02/03/2015 IN THE MATTER OF ASSESSMENT ORDER UNDER S.143(3) OF THE INCOME TAX ACT, 1961 (HEREINA FTER REFERRED TO AS 'THE ACT') DATED 03/01/2014 RELEVANT TO ASSESSMENT YEAR (AY) 2011-12. ITA NO. 1491/AHD/2015 KIRITKUMAR HIMATLAL DHOLAKIA VS. ITO ASST.YEAR 2011-12 - 2 - 2. THE GROUNDS OF APPEAL RAISED BY THE ASSESSEE R EAD AS UNDER:- THE LEARNED CIT(A) HAS ERRED IN LAW AND ON FACTS IN HOLDING THAT THE ADDITION OF RS.9 LACS AND OF RS.60,000/- IS FOU ND CORRECT AND JUSTIFIED, THEREBY DISMISSING THE APPEAL OF THE APP ELLANT. 2. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CA SE AND IN LAW THE LEARNED CIT(A) OUGHT TO HAVE DELETED THE AGGREGATE ADDITION OF RS.9,60,000/- MADE BY THE ASSESSING OFFICER. 3. BRIEFLY STATED, IN THE COURSE OF THE ASSESSMENT PROCEEDINGS, THE ASSESSING OFFICER (AO) OBSERVED THAT CERTAIN CASH D EPOSITS TO THE EXTENT OF RS.9,60,000/- WAS FOUND TO BE MADE IN THE BANK A CCOUNT OF THE ASSESSEE. THE ASSESSEE EXPLAINED THAT RS.60,000/- CASH HAS BEEN DEPOSITED OUT OF ALL OPENING CASH BALANCES AND ANOT HER CASH OF RS.5 LAKHS AND RS.4 LAKHS WERE DEPOSITED AGAINST THE RECEIPTS OF THE SALE PROCEEDS OF TOYATA QUAILS AND SWIFT DESIRE CARS RESPECTIVELY. THE ASSESSEE FILED CERTAIN DETAILS IN THIS REGARD VIZ.DELIVERY CHALLAN AND THE ADDRESS OF THE BUYERS OF CAR TOGETHER WITH THEIR WRITTEN CONFIRMAT IONS AND PANS. THE AO, HOWEVER, DISPUTED THE VALUE OF THE SALE PROCEE DS OF THE CAR AND ALSO THE BONAFIDE OF THE SALE. ACCORDINGLY, AN ADDITION OF RS.9,60,000/- WAS MADE TOWARDS UNEXPLAINED CASH DEPOSIT IN THE HANDS OF THE ASSESSEE. AGGRIEVED BY THE AFORESAID ADDITION, THE ASSESSEE P REFERRED APPEAL BEFORE THE CIT(A) WITHOUT ANY SUCCESS. ITA NO. 1491/AHD/2015 KIRITKUMAR HIMATLAL DHOLAKIA VS. ITO ASST.YEAR 2011-12 - 3 - 4. AGGRIEVED, THE ASSESSEE IS IN APPEAL BEFORE THE TRIBUNAL. 5. AT THE TIME OF HEARING, THE LD.AR FOR THE ASSESS EE SUBMITTED THAT THE SALE OF TWO CARS CANNOT BE DISPUTED IN VIEW OF THE COGENT FACTS PLACED ON RECORD. BOTH THE CARS HAVE BEEN SOLD TO PERSONS FULLY IDENTIFIABLE ALONG WITH THEIR ADDRESS AND PANS. THEREFORE, THE ACTION OF THE REVENUE IN NOT GRANTING ANY RELIEF TOWARDS THE SALE PROCEED S OF CARS AS UNSUSTAINABLE IN LAW. THE LD.AR THEREAFTER SUBMITT ED THAT THE REVENUE HAS ALSO DISPUTED THE VALUE AT WHICH THE CARS HAVE BEEN SOLD AND CASH DEPOSITS MADE AGAINST THE SAME WERE ALSO DISPUTED. THE LD.AR SUBMITTED THAT THE VALUE ASSIGNED AGAINST THE SALE OF CAR UNDER MUTUAL CONTRACT IS NOT ORDINARILY DISPUTABLE. HOWEVER, I N ORDER TO BUY PEACE AND TO THE PROTRACTED LITIGATION THE LD.AR SUBMITTED TH AT THE VALUE OF THE CARS MAY BE TAKEN AT RS.6 LAKHS. HE THEREAFTER FURTHER CONCEDED ACROSS THE BAR THAT THE LUMP SUM VALUE OF TWO CARS MAY BE TAKEN AT RS. 5 LAKHS. THEREFORE, IN VIEW OF THE AFORESAID ASSERTIONS, THE CASH DEPOSIT TO THE EXTENT OF RS.5 LAKHS STANDS EXPLAINED. THE ADDITIO N TOWARDS BALANCE CASH DEPOSIT OF RS.4,60,000/- IS NOT INTERFERED WITH. C ONSEQUENTLY, THE ASSESSEE GETS RELIEF OF RS.5 LAKHS AGAINST THE IMPU GNED ADDITION ON RS.9,60,000/-. ITA NO. 1491/AHD/2015 KIRITKUMAR HIMATLAL DHOLAKIA VS. ITO ASST.YEAR 2011-12 - 4 - 6. IN THE RESULT, APPEAL OF THE ASSESSEE IS PARTLY ALLOWED. THIS ORDER PRONOUNCED IN OPEN COURT ON 10 / 11 /2017 SD/- SD/- (..) ( ) ( S.S. GODARA ) ( PRADIP KUMAR KEDIA ) JUDICIAL MEMBER ACCOUNTANT MEMBER AHMEDABAD; DATED 10 / 11 /2017 4..+,.+../ T.C. NAIR, SR. PS !'#$%&%# / COPY OF THE ORDER FORWARDED TO : 1. $' / THE APPELLANT 2. ($' / THE RESPONDENT. 3. 567- 8- / CONCERNED CIT 4. 8- ( ) / THE CIT(A), AHMEDABAD-5 5. 9:-+67 , 670 , 5 / DR, ITAT, AHMEDABAD 6. <, / GUARD FILE. / BY ORDER, (9-- //TRUE COPY// / ( DY./ASSTT.REGISTRAR) , / ITAT, AHMEDABAD 1. DATE OF DICTATION ..7.11.17 (DICTATION-PAD 6- P AGES ATTACHED AT THE END OF THIS APPEAL-FILE) 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER 8.11.17 3. OTHER MEMBER 4. DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR.P. S./P.S.. 5. DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE D ICTATING MEMBER FOR PRONOUNCEMENT 6. DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR.P .S./P.S.10.11.17 7. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 10.11.17 8. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK ... 9. THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT RE GISTRAR FOR SIGNATURE ON THE ORDER.. 10. DATE OF DESPATCH OF THE ORDER