Shri Sanjiv C. Shah, Ahmedabad V. The Dy.CIT, Circle-5(1), Ahmedabad

ITA 166/AHD/2015

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 8289 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 9 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-10-2017
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: B
• Assessment Year: 2010-2011
• Appeal Filed On: 16-01-2015
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Assessee Lawyers: SNEHAL THAKKAR
• Keywords: Income from undisclosed sources

Judgement Text

, B IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, AHMEDABAD BEFORE SHRI PRADIP KUMAR KEDIA, AM AND SHRI MAHAVIR PRASAD , JM ./ITA. NO. 166/AHD/2015 ( / ASSTT YEAR : 2010-11) SHRI SANJIV C. SHAH A-103, LAV KUSH TOWER, THALTEJ ROAD, THALTEJ, AHMEDABAD 380 054 PAN: ATBPS2511A VS. THE DY. COMMISSIONER OF INCOME TAX, CIRCLE-5(1), AHMEDABAD (APPELLANT) (RESPONDENT) / APPELLANT BY: SHRI SNEHAL THAKKAR, A.R / RESPONDENT BY: SHRI MUDIT NAGPAL, SR. DR / DATE OF HEARING 28/09/2017 /DATE OF PRONOUNCEMENT 31/10/2017 / O R D E R PER MAHAVIR PRASAD, JUDICIAL MEMBER THIS APPEAL HAS BEEN FILED BY THE ASSESSEE AGAINS T THE ORDER OF LD. CIT(A)-XXI/28/2013-14 DATED 22.10.2014. ASSESSEE HA S TAKEN FOLLOWING GROUNDS THAT LD. CIT(A) ERRED IN MAKING ADDITION OF RS. 3,57,000/- BY CONSIDERING IT AS UNACCOUNTED CASH DEPOSITS. APPELL ANT HAS A SALARIED PERSON WORKING WITH BMW INDIA PVT. LTD. APPELLANT H AS FILED HIS RETURN OF INCOME SHOWING INCOME FROM ABOVE SHOWING SALARIED I NCOME FROM THE ABOVE M/S. NEXTGEN SYNTICATELED COMPANY. DURING THE COURSE OF ASSESSMENT PROCEEDINGS IT WAS NOTICED THAT THE ASSE SSEE HAS NOT SHOWN INTEREST INCOME ON ACCOUNT OF SAVING INTEREST FROM TWO BANKS. THE ITA.NO. 166/AHD/2015 ASSESSMENT YEAR 2010-11 - 2 APPELLANT DURING THE YEAR HAS WITHDRAWN CASH TOTALI NG TO RS. 17,83,000/-. THESE CASH WITHDRAWALS ALONG WITH OPENING CASH BAL ANCE OF RS. 3,75,000/- WERE EXPLAINED AS SOURCE OF CASH DEPOSIT OF RS. 18, 40,500/-. HOWEVER , THE A.O. HAS NOT CONSIDERED THIS EXPLANATION. THE ASSES SING OFFICER HAS NOT GIVEN ANY REASON WHY THE CASH WITHDRAWAL FROM BANK ACCOUNT CANNOT BE SOURCE OF CASH DEPOSIT. THE APPELLANT IS SALARIED E MPLOYEE WORKING AS GM (FINANCE) WITH BMW INDIA SHOWING RETURN OF INCOM E OF RS. 42,41,269/-. THE APPELLANT WAS ASKED TO SUBSTANTIAT E OPENING CASH BALANCE OF RS. 3,75,000/- IN RESPONSE TO WHICH HE STATED TH AT IN THE PRECEDING YEARS INCOME WAS RS. 30,84,184/- AND RS. 27,29,397 /- AND THE OPENING CASH BALANCE OF RS. 3,75,000/- IS REASONABLE. THE APPELLANTS EXPLANATION WITHOUT FURNISHING PREVIOUS YEARS BANK STATEMENT, ETC. CANNOT BE ACCEPTED AND LD. A.O. MADE ADDITION ON ACCOUNT OF UNACCOUNTE D CASH DEPOSIT OF RS. 30,65,500/- AGAINST THE SAID ORDER. 2. ASSESSEE PREFERRED FIRST STATUTORY APPEAL BEFORE THE LD. CIT(A) WHO IS PARTLY ALLOW THE APPEAL OF THE ASSESSEE. WE HAV E GONE THROUGH RELEVANT ORDER THE ASSESSEE HAD SUBMITTED THE COPIES OF BANK STATEMENT WITH SANCTION ASKED ON THE PERUSAL IT WAS ASSESSEE HAS D EPOSITED CASH AMOUNT RS.30,65,500/- BEING ASK FOR EXPLANATION THE ASSESS EE GIVEN EXPLANATION THAT CASH DEPOSIT CASH FAMILY MEMBER. THE MAIN WERE MADE BY WHO IS NON-RESIDENT INDIAN AND A CITIZEN OF HE IS NOT ASSE T IN INDIA AND HAS CASH REIMBURSEMENT OF EXPENSES APPELLANT ARRIVAL INDIA W HICH WAS BY THE APPELLANT IN HIS BANK. THE A.O HAS EXAMINED SHRI MO HIT SHAH AND RECORDED HIS STATEMENT IN WHICH SHRI SHAH HAS RECON FIRMED THAT HE HAS GIVEN RS.9,25,000/- TO HIS UNCLE AS REIMBURSEMENT O F THE EXPENSES INCURRED DURING HIS STAY IN INDIA THROUGH CREDIT CARD OF H IS UNCLE. THE A.O. HIMSELF ITA.NO. 166/AHD/2015 ASSESSMENT YEAR 2010-11 - 3 HAS STATED THAT SHRI MOHIT SHAH HAS RECONFIRMED THA T HE HAS GIVEN CASH OF RS. 9, 25,000/-. THE ASSESSING OFFICER HAS FURTHER STATED THAT SHRI MOHIT SHAH IS OWNER OF TWO COMPANIES IN USA AND HIS ANNUA L INCOME IS $1,45,000/- PER ANNUM AS SHRI MOHIT SHAH HAS CONFIR MED THE CASH GIVEN, HIS IDENTITY, CAPACITY AND GENUINENESS OF CASH HAS BEEN ESTABLISHED THE A.O. WAS NOT JUSTIFIED IN NOT ACCEPTING THE SOURCE OF CASH RECEIVED FROM SHRI MOHIT SHAH TO THE EXTENT OF RS. 9,25,000/-. AS REGARD TO SOURCE OF CASH DEPOSIT OF RS. 2,50,000/- FROM BELA SHAH HIS WIFE AND RS. 50,000/- FROM CHHAYA SHAH, HIS SISTER-IN- LAW, THE APPELLANT HAS FAILED TO PRODUCE THESE PERSONS BEFORE A.O. FOR EXAMINATION OR SUBMIT TED DOCUMENTARY EVIDENCES IN SUPPORT OF THEIR IDENTITY, GENUINENES S AND CAPACITY DURING TO GIVE THE ABOVE CASH DEPOSIT, THEREFORE, CASH DEPOSI TS ATTRIBUTABLE TO RELATIVES AMOUNTING TO RS.3,00,000/- REMAINS UNEXPL AINED AND THEREFORE RIGHTLY TREATED AS UNACCOUNTED INCOME OF THE ASSESS EE. HOWEVER, WE CONSIDER IT BEFITTING TO GIVE BENEFIT OF DOUBT FOR REMAINING AMOUNT OF RS.57,000/- IN FAVOUR OF THE ASSESSEE. THEREFORE, A DDITION OF RS.57,000/- IS DIRECTED TO BE DELETED AND BALANCE AMOUNT STANDS CO NFIRMED. 3. IN THE RESULT, APPEAL OF THE ASSESSEE IS PARTLY ALLOWED. ORDER PRONOUNCED IN THE COURT ON 31/10/ 20 17 AT AHMEDABAD. SD/- SD/- (PRADIP KUMAR KEDIA) ACCOUNTANT MEMBER MUKUL (MAHAVIR PRASAD) JUDICIAL MEMBER DATED, 31/10/2017 ITA.NO. 166/AHD/2015 ASSESSMENT YEAR 2010-11 - 4 ! '!/ COPY OF THE ORDER FORWARDED TO : 1. $% / THE APPELLANT 2. &$% / THE RESPONDENT. 3. '(( ) * / CONCERNED CIT 4. ) * ) ( / THE CIT(A)-XXI, AHMEDABAD. 5. !-. , , /DR,ITAT, AHMEDABAD. 6. .0 12 / GUARD FILE. ) ' / BY ORDER, ' (3 (ASSTT.REGISTRAR) ITAT, AHMEDABAD TRUE COPY