Srikant Munshi, V. I.T.O.,

ITA 174/RAN/2014

• Counselvise Citation: [2015] 134 COUNSELVISE.COM (IT) 0337 (ITAT-RANCHI)
• Duration Of Justice: 1 year(s) 5 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-11-2015
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2009-2010
• Appeal Filed On: 15-05-2014
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: CHOUDHARY ORAON
• Assessee Lawyers: R R MITTAL
• Keywords: Peak credit

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL RANCHI CIRCUIT BENCH, RANCHI BEFORE SHRI N.S. SAINI, HONBLE ACCOUNTANT MEMBER AND SHRI GEORGE MATHAN, HONBLE JUDICIAL MEMBER ITA NO. 174/RAN/2014 (ASST. YEAR : 2009-10) SHRI SRIKANT MUNSHI, KALI BARI ROAD, HAZARIBAGH. VS. ITO, WARD-2(2), HAZARIBAG. PAN NO. APJPM 6225 M (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI R.R. MITTAL CA DEPARTMENT BY : SHRI CHOUDHARY ORAON - DR DATE OF HEARING : 03/11/2015. DATE OF PRONOUNCEMENT : 0311/2015. O R D E R PER N.S. SAINI, ACCOUNTANT MEMBER THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST TH E ORDER OF COMMISSIONER OF INCOME TAX (APPEALS), JAMSHEDPUR, D ATED 23/01/2014. 2. THE SOLE ISSUE INVOLVED IN THIS APPEAL IS THAT TH E COMMISSIONER OF INCOME TAX (APPEALS) ERRED IN ESTIMATING THE PROFIT @ 5.42% ON TOTAL DEPOSIT IN BANK ACCOUNT OF RS. 94,99,618/-. 3 . WE HAVE HEARD RIVAL SUBMISSIONS AND PERUSED THE O RDERS OF THE LOWER AUTHORITIES AND THE MATERIALS AVAILABLE ON RE CORD. IN THE INSTANT CASE, THE ASSESSING OFFICER FOUND THAT THE ASSESSEE HAD TWO UNDISCLOSED BANK ACCOUNTS IN HDFC BANK LTD., HAZARIBAG, ONE SAV INGS A/C NO. 1111 AND ONE CURRENT A/C NO. 0306 IN WHICH CASH DEPOSITS TO THE EXTENT OF 2 ITA NO. 174/RAN/2014 RS. 78,79,224/- AND RS. 16,20,394/-, AGGREGATING TO RS. 94,99,618/- WAS FOUND CREDITED IN THE YEAR. THE ASSESSEE DID N OT APPEAR BEFORE THE ASSESSING OFFICER DURING THE ASSESSMENT PROCEEDINGS AND, THEREFORE THE ASSESSING OFFICER TOOK A PEAK CREDIT BALANCE ON THE PARTICULAR DATE IN THE TWO BANK ACCOUNTS WHICH WAS RS. 8,02,654/- ON 1 3/09/2008 IN THE SAVINGS BANK A/C NO. 1111 AND ADDED IT TO THE INCOM E OF THE ASSESSEE. 4. ON APPEAL, COMMISSIONER OF INCOME TAX (APPEALS) OB SERVED THAT ON PERUSAL OF BANK ACCOUNTS, IT IS SEEN THAT IN A/C NO. 1111 WHERE THE CASH DEPOSITS IS TO THE TUNE OF RS. 78.79 LAC AND I N THE CURRENT ACCOUNT WHERE THE DEPOSITS IS TO THE TUNE OF RS. 16.20 LAC, CHEQUES ARE BEING ISSUED BY THE ASSESSEE FOR THE PURCHASE OF POULTRY FEED. THEREFORE, THE ABOVE TWO BANK ACCOUNTS HAVE BEEN UTILIZED BY THE A SSESSEE IN RESPECT OF ITS UNDISCLOSED BUSINESS OF THE POULTRY FEED. T HE ASSESSEE SUBMITTED THAT THE SOURCE OF CASH DEPOSITS IN THE TWO BANK AC COUNTS WAS INTER ALIA ALSO OUT OF RECEIPTS FROM ITS TRUCK PLYING BUSINESS IN RESPECT OF ONE TRUCK OWNED BY HIM. HOWEVER, NO INSTANCES OF CASH WITHDR AWAL FROM THE SAID BANK ACCOUNTS WAS FOUND AND THEREFORE, THE CLAIM OF THE ASSESSEE THAT CASH DEPOSITS OUT OF ITS OWNERSHIP OF TRUCK BUSINES S WAS DEPOSITED IN THE SAID BANK ACCOUNTS IS NOT ACCEPTABLE. THE COMM ISSIONER OF INCOME TAX (APPEALS) FURTHER OBSERVED THAT IF THE CONTENTI ON OF THE ASSESSEE WAS CORRECT, THEN THERE WOULD HAVE BEEN SOME INSTAN CES OF CASH WITHDRAWAL FOR MEETING TO THE EXPENDITURE LIKE PAYM ENT OF DRIVER, DIESEL, REPAIRS ETC. IN CASH WHICH IS NOT THE CASE IN RESPECT OF THE SAID TWO BANK ACCOUNTS. HENCE, HE HELD THAT THE TOTAL CA SH DEPOSITS OF RS.94,99,618/- IS CONSIDERED AS UNDISCLOSED SALES T URNOVER OF THE ASSESSEE FROM ITS POULTRY BUSINESS. HE NOTED THAT THE ASSESSEE HAS SHOWN NET PROFIT OF RS. 1,02,240/- UNDER SECTION 44 AF OF THE ACT FROM HIS POULTRY BUSINESS ON A SALES TURNOVER OF RS. 18, 85,730/- AND THE NET PROFIT COMES TO 5.42%. ADOPTING THE SAME RATE ON T HE TOTAL DEPOSITS OF RS.94,99,618/-, HE ARRIVED AT THE INCOME OF RS. 5,1 4,879/- AND AFTER ALLOWING CREDIT FOR THE INCOME OF RS. 1,02,240/- SH OWN BY THE ASSESSEE 3 ITA NO. 174/RAN/2014 MADE ADDITION OF RS. 4,12,639/- TO THE INCOME OF TH E ASSESSEE AND THEREBY, DELETED THE BALANCE ADDITION OF RS. 3,90,0 15/-. 5. THE AUTHORIZED REPRESENTATIVE OF THE ASSESSEE REIT ERATED THE SUBMISSIONS MADE BEFORE THE LOWER AUTHORITIES. 6 . ON THE OTHER HAND, DEPARTMENTAL REPRESENTATIVE SU PPORTED THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS). 7 . WE FIND THAT NO MATERIAL WAS BROUGHT ON RECORD BY THE ASSESSEE TO SHOW THAT THE RECEIPTS FROM TRUCK BUSINESS WERE DEPOSITED IN THE BANK ACCOUNTS BY THE ASSESSEE. FURTHER, NO MATERIA L WAS ALSO BROUGHT ON RECORD TO SHOW THAT RS. 94,99,618/- DEPOSITED IN THE BANK ACCOUNT WAS NOT THE RECEIPT FROM THE BUSINESS OF POULTRY OF THE ASSESSEE. IN ABSENCE OF ANY MATERIAL BEING BROUGHT ON RECORD, WE DO NOT FIND ANY GOOD REASON TO INTERFERE WITH THE ORDER OF THE COMM ISSIONER OF INCOME TAX (APPEALS) WHICH IS CONFIRMED AND THE GROUND OF APPEAL OF THE ASSESSEE IS DISMISSED. 8 . IN THE RESULT, APPEAL OF THE ASSESSEE IS DISMISSE D. ORDER PRONOUNCED IN THE COURT AT THE CLOSE OF THE H EARING ON TUESDAY, THE 3 RD DAY OF NOVEMBER, 2015 AT RANCHI. SD/- SD/- (GEORGE MATHAN) (N.S.SAINI) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED : 03 RD NOVEMBER, 2015. VR/- 4 ITA NO. 174/RAN/2014 COPY TO: 1. THE ASSESSEE. 2. THE REVENUE. 3. THE CIT 4. THE CIT(A) 5. THE D.R. 6. GUARD FILE. BY ORDER ASSISTANT REGISTRAR I.T.A.T., RANCHI 5 ITA NO. 174/RAN/2014 DATE INITIAL ORIGINAL DICTATION PAD & DRAFT ARE ENCLOSED IN THE FILE 1. DRAFT DICTATED ON 03/11/2015 SR.PS 2. DRAFT PLACED BEFORE AUTHOR 04/11/2015 SR.PS 3. DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER 04/11/2015 JM/AM 4. DRAFT DISCUSSED/APPROVED BY SECOND MEMBER 04/11/2015 JM/AM 5. APPROVED DRAFT COMES TO THE SR.PS/PS 04/11/2015 SR.PS 6. DATE OF PRONOUNCEMENT 03/11/2015 SR.PS 7. FILE SENT TO THE BENCH CLERK 04/11/2015 SR.PS 8. DATE ON WHICH FILE GOES TO THE HEAD CLERK 9. DATE OF DISPATCH OF ORDER