SIDDIQUE A.A. CHOWDHARY, MUMBAI V. ITO 21(3)(2), MUMBAI

ITA 1795/MUM/2013

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 3297 (ITAT-MUMBAI)
• Duration Of Justice: 3 year(s) 5 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-09-2016
• Appeal Filed By: Assessee
• Bench Allotted: E
• Next Hearing Date: 16-06-2015
• Assessment Year: 2009-2010
• Appeal Filed On: 06-03-2013
• Court: TRIBUNAL
• Department Lawyers: MRS BEENA SUBHASH
• Assessee Lawyers: M SUBRAMANIAN
• Keywords: Principle of natural justice; Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL E BENCH, MUMBAI BEFORE SHRI MAHAVIR SINGH (JM) & SHRI B.R. BASKARAN (AM) I.T.A. NO. 1795 /MUM/ 20 1 3 (ASSESSMENT YEAR 200 9 - 1 0 ) SIDDIQUE A.A. CHOWDHARY YARI DSOUZA NAGAR CHS LTD. A - 3, 90 FEET ROAD SAKINAKA, MUMBAI - 40 0 072. VS. ITO 21(3)(2) BANDRA KURLA COMPLEX, BANDRA MUMBAI - 400 051. ( APPELLANT ) ( RESPONDENT ) I.T.A. NO. 1902/MUM/2013 (ASSESSMENT YEAR 2009 - 10) ITO 21(3)(2) BANDRA KURLA COMPLEX, BANDRA MUMBAI - 400 051 VS. SIDDIQUE AHMED ABBASALI CHOWDHARY YARI DSOUZA NAGAR CHS LTD. A - 3, 90 FEET ROAD SAKINAKA, MUMBAI - 400 072. ( APPELLANT ) ( RESPONDENT ) PAN NO . ANLPK3359A ASSESSEE BY SHRI M. SUBRAMANIAN DEPARTMENT BY MRS. BEENA SUBHASH DATE OF HEARING 30 .8 . 201 6 DATE OF PRONOUNCEMENT 2 . 9 . 201 6 O R D E R PER B.R. BASKARAN (AM) : - THESE CROSS APPEALS ARE DIRECTED AGAINST THE ORDER DATED 5.12.2012 PASSED BY LEARNED CIT(A) - 32, MUMBAI AND THEY RELATE TO A.Y. 2009 - 10. 2. ADDITION OF CASH DEPOSITS MADE BY THE ASSESSING OFFICER, HAVING BEEN PARTIALL Y CONFIRMED BY LEARNED CIT(A), BOTH THE PARTIES ARE IN APPEAL BEFORE US. 3. FACTS RELATING TO THE ISSUE ARE STATED IN BRIEF. THE ASSESSEE IS ENGAGED IN THE BUSINESS OF SELLING USED COMPUTERS AND COMPUTER SPARE PARTS. THE ASSESSING OFFICER NOTICED THAT TH E ASSESSEE HAD MADE CASH DEPOSITS OF ` SHRI SIDDIQUE AHMED ABBASALI CHOWDHARY 2 10,42,503/ - AND ` 7,00,000/ - RESPECTIVELY IN THE SAVINGS BANK ACCOUNT MAINTAINED WITH ICICI BANK AND DCB BANK. THE ASSESSEE EXPLAINED THAT THESE CASH DEPOSITS HAVE BEEN MADE OUT OF SALE PROCEEDS OF COMPUTER SCRAP SOLD ON CASH BASIS. THE ASSESSEE ALSO FURNISHED A STATEMENT OF MONTHLY CASH SUMMARY, SALES AND PURCHASE. HOWEVER, THE ASSESSING OFFICER ASKED THE ASSESSEE TO GIVE DATE - WISE CASH FLOW STATEMENT BUT THE SAME WAS NOT PROVIDED. HENCE, THE ASSESSING OFFICER ADDED T HE ENTIRE CASH DEPOSITS OF ` 17,42,503/ - AS INCOME OF THE ASSESSEE. LEARNED CIT(A) GAVE DEDUCTION OF CASH SALE AMOUNT OF ` 5,57,743/ - AND ACCORDINGLY CONFIRMED THE REMAINING ADDITION OF ` 11,99,360/ - . BOTH THE PARTIES ARE AGGRIEVED WITH THE DECISION RENDER ED BY LEARNED CIT(A). 4. AT THE TIME OF HEARING, IT WAS POINTED OUT THAT THE TAX EFFECT INVOLVED IN THE APPEAL OF THE REVENUE IS LESS THAN ` 10,00,000/ - AND HENCE THE REVENUE IS PRECLUDED FROM PURSUING THIS APPEAL, VIDE CIRCULAR NO. 20/2015 DATED 10 .12.2015. WE FIND MERIT IN THE SAID SUBMISSION AND ACCORDINGLY, WE DISMISS THE APPEAL FILED BY THE REVENUE IN LIMINE. 5. WITH REGARD TO THE APPEAL FILED BY THE ASSESSEE, LEARNED AR SUBMITTED THAT THE ASSESSEE HAS SINCE PREPARED DAY - TO - DAY CASH BOOK A ND ENTIRE DEPOSITS MADE IN THE BANK ACCOUNT STANDS EXPLAINED IN THIS CASH BOOK. 6. LEARNED DEPARTMENTAL REPRESENTATIVE, ON THE CONTRARY, SUBMITTED THAT THE ASSESSEE HAS NOT PRODUCED THIS CASH BOOK BEFORE THE ASSESSING OFFICER AND HENCE IT REQUIRES EXA MINATION. 7. WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE RECORD. WE HAVE EARLIER NOTICED THAT THE ASSESSING OFFICER HAS MADE ADDITION ONLY ON THE REASONING THAT THE ASSESSEE COULD NOT FURNISH DATE - WISE CASH FLOW STATEMENT. NOW, LEARNED AR SU BMITS THAT THE ASSESSEE HAS SINCE PREPARED THE SAME BY WAY OF CASH BOOK. HENCE, IN THE INTEREST OF NATURAL JUSTICE, WE ARE OF THE VIEW THAT THE CASH BOOK PREPARED BY THE ASSESSEE REQUIRES EXAMINATION AT THE END OF THE ASSESSING OFFICER. ACCORDINGLY, WE RES TORE THE ISSUE CONTESTED BY THE SHRI SIDDIQUE AHMED ABBASALI CHOWDHARY 3 ASSESSEE TO THE FILE OF THE ASSESSING OFFICER WITH THE DIRECTION TO EXAMINE AFRESH BY DULY CONSIDERING THE CASH BOOK PREPARED BY THE ASSESSEE AND TAKE APPROPRIATE DECISION IN ACCORDANCE WITH LAW, AFTER PROVIDING ADEQUATE OPP ORTUNITY OF BEING HEARD TO THE ASSESSEE. 8. IN THE RESULT, APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES AND APPEAL OF THE REVENUE IS DISMISSED. ORDER HAS BE EN PRONOUNCED IN THE COURT ON 2. 9 .2016 SD/ - SD/ - (MAHAVIR SINGH ) (B.R.BASKARAN ) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI ; DATED : 2 / 9 / 20 1 6 COPY OF THE ORDER FORWARDED TO : 1. THE APPELLANT 2. THE RESPONDENT 3. TH E CIT(A) 4. CIT 5. DR, ITAT, MUMBAI 6. GUARD FILE. BY ORDER, //TRUE COPY// ( DY./ASSTT. REGISTRAR) ITAT, MUMBAI PS