Sh. Rupinder Pal Singh, Ludhiana V. ITO, W-II(2), Ludhiana

ITA 1699/CHANDI/2017

• Counselvise Citation: [2018] 119 COUNSELVISE.COM (IT) 2346 (ITAT-CHANDIGARH)
• Duration Of Justice: 10 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-10-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2009-2010
• Appeal Filed On: 22-12-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 69

Judgement Text

, .. , IN THE INCOME TAX APPELLATE TRIBUNAL, CHANDIGARH BE NCH S.M.D, CHANDIGARH !', # $ !, . %.. . & , '( $ BEFORE: SMT. DIVA SINGH, JM & DR. B.R.R. KUMAR , A M !./ ITA NO. 1699/CHD/2017 #* + ,+ / ASSESSMENT YEAR : 2009-10 SH. RUPINDER PAL SINGH B-XIII-1363, SUKHRAM NAGAR, LUDHIANA THE ITO-II (2), CHANDIGARH ./ PAN NO: BDWPS5489K / APPELLANT / RESPONDENT / ASSESSEE BY : NONE / REVENUE BY : SMT. CHANDRAKANTA ! ' # / DATE OF HEARING : 29/08/2018 $%&'() # / DATE OF PRONOUNCEMENT : 29/10/2018 '-/ ORDER PER DR. B.R.R. KUMAR, A.M.: THE PRESENT APPEAL HAS BEEN FILED BY THE ASSESSEE A GAINST THE ORDER OF THE LD. CIT(A)-1, LUDHIANA DT. 19/08/2016. 2. THE HAND WRITTEN GROUNDS FILED BY THE ASSESSEE (SCANNED COPY ) ARE AS UNDER: 2 3. THE APPEAL HAS BEEN BARRED BY 31 DAYS. THE ASSES SEE SUBMITTED THAT OWING TO HIS ILL HEALTH THE APPEAL COULD NOT BE FIL ED IN TIME. HE PRODUCE THE MEDICAL CERTIFICATE TO THAT EXTENT, HENCE THE DELAY IS HEREBY CONDONED. 4. THE BRIEF AND STRAIGHT FACTS OF THE CASE ARE THA T THE ASSESSEE HAS CASH DEPOSITS OF RS. 27,35,000/- IN THE SAVINGS BANK ACC OUNT MAINTAINED WITH HDFC 3 BANK. BEFORE THE ASSESSING OFFICER IT WAS EXPLAINED THAT THE ASSESSEE IS IN THE BUSINESS OF WHOLE SALE TRADING OF CLOTHES AND EARN ED INCOME OUT OF THE COMMISSION / BROKERAGE / TRADING OF CLOTHES. THE AS SESSEE HAS BEEN FILING RETURNS UNDER SECTION 44AF OF THE INCOME TAX ACT,1961 . THE ASSESSING OFFICER HAS MADE ADDITION OF RS. 20,14,370/- BEING THE PEAK CASH DEP OSITS UNDER SECTION 69 AND LEVIED TAX OF RS. 8,63,830/-. 5. THE LD. CIT(A) IN AN EX-PARTE ORDER CONFIRMED TH E ADDITION MADE BY THE ASSESSING OFFICER. 6. BEFORE US, THROUGH THE GROUNDS OF APPEAL THE ASS ESSEE HAS SUBMITTED THAT THE CASH DEPOSITS IS NOT HIS TOTAL INCOME BUT IT IS THE TOTAL SALE RECEIPTS OF THE TRADING BUSINESS. THE ASSESSEE HAS SUBMITTED THAT T HE 5% OF THE TURNOVER CAN BE AT BEST TREATED AS THE PROFITS OF THE BUSINESS. 7. THE LD. DR RELIED ON THE ORDER OF THE LOWER AUTH ORITIES. 8. THE REVENUE COULD NOT BRING ANYTHING TO CONTROVE RT THE PLEA OF THE ASSESSEE. 9. HAVING GONE THROUGH THE FACTS OF THE CASE WE FEE L THAT THE ENDS OF THE JUSTICE WOULD BE MET IF THE ASSESSEE IS TAXED @5% A S PER THE PROVISIONS OF SECTION 44AF ON THE TOTAL TURNOVER AS REFLECTED IN THE BANK ACCOUNT OF THE ASSESSEE. 10. ALL THE GROUNDS ARE TREATED AS HEARD. 11. AS A RESULT THE APPEAL OF THE ASSESSEE IS ALLOW ED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT. SD/- SD/- !' . %.. . & , (DIVA SINGH) (DR. B.R.R. KUMAR) # $/ JUDICIAL MEMBER '( $/ ACCOUNTANT MEMBER AG DATE: 29/10/2018 *% + ,- . -(/ COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT 3. * * ! // CIT 4. * * ! / ()/ THE CIT(A) 5. - 23 4, * # *4), 67839/ DR, ITAT, CHANDIGARH 6. 38 :'/ GUARD FILE