MUNNA KHAN, MUMBAI V. ITO WD 19(3)(3), MUMBAI

ITA 2315/MUM/2014

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 5602 (ITAT-MUMBAI)
• Duration Of Justice: 4 year(s) 2 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-07-2018
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: B
• Assessment Year: 2009-2010
• Appeal Filed On: 07-04-2014
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: T A KHAN
• Section: 143(3); 68

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL 'B' BENCH, MUMBAI BEFORE SHRI R.C. SHARMA, ACCOUNTANT MEMBER AND SHRI AMARJIT SINGH, JUDICIAL MEMBER ITA NO. 2315/MUM/2014 (ASSESSMENT YEAR: 2009-10) SHRI MUNNA KHAN ROOM NO. 17, MADRI COMPLEX STATION ROAD, BEHRAM NAGAR BANDRA (E), MUMBAI 400051 VS. INCOME TAX OFFICER - 19(3)(3) MUMBAI PAN ADHPK2093F APPELLANT RESPONDENT APPELLANT BY: SHRI PRAMOD KUMAR PARIDA RESPONDENT BY: SHRI T.A. KHAN DATE OF HEARING: 04.07.2018 DATE OF PRONOUNCEMENT: 04.07.2018 O R D E R PER R.C. SHARMA, AM THIS APPEAL HAS BEEN FILED BY THE ASSESSEE AGAINST THE ORDER OF THE CIT(A)-30, MUMBAI DATED 06.06.2014 FOR A.Y. 2009-10 IN THE MATTER OF ORDER PASSED UNDER SECTION 143(3) OF THE INCOME TAX ACT (HEREINAFTER THE ACT). 2. IN THIS APPEAL THE ASSESSEE IS AGGRIEVED FOR THE AD DITION OF ` 8,36,400/- ON ACCOUNT OF CASH DEPOSITED IN THE BANK , WHICH WAS ADDED BY THE AO UNDER SECTION 68 OF THE ACT. BY THE IMPUG NED ORDER THE CIT(A) CONFIRMED THE ACTION OF THE AO, AGAINST WHICH THE A SSESSEE IS IN APPEAL BEFORE US. 3. WE HAVE CONSIDERED THE RIVAL CONTENTIONS AND FOUND THAT THE ASSESSEE IS A SMALL TRADER ENGAGED IN THE BUSINESS OF TAILORING AND SALE OF CLOTH. DURING THE YEAR UNDER CONSIDERATION THE ASSE SSEES TURNOVER WAS BELOW THE LIMIT FOR WHICH AUDIT IS REQUIRED. THE AS SESSEE HAS DISCLOSED PROFIT OF 10% ON THE TOTAL SALE PROCEEDINGS. HOWEVE R, IN ADDITION TO THE ITA NO. 2315/MUM/2014 SHRI MUNNA KHAN 2 PROFIT THE AO HAS ALSO ADDED THE ENTIRE CASH DEPOSI T IN THE BANK ACCOUNT. THE AO HAS NOT RECORDED ANY FINDING AS TO ANY OTHER BUSINESS HAVING BEEN CARRIED OUT BY THE ASSESSEE OR ANY OTHER SOURCE OF RECEIPTS. WE FIND THAT THE DEPOSIT IN THE BANK WAS EXPLAINED OUT OF THE SA LE PROCEEDS WHICH WERE DULY RECORDED IN THE TRADING AND PROFIT & LOSS ACCO UNT SUBMITTED BEFORE THE AO. CONSIDERING THE TOTALITY OF THE FACTS AND C IRCUMSTANCES OF THE CASE AND THE NATURE OF ASSESSEES BUSINESS WE DIRECT THE AO TO RESTRICT THE ADDITION TO 15% OF THE CASH DEPOSIT IN THE BANK ACC OUNT. WE DIRECT ACCORDINGLY 4. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED IN PART. ORDER PRONOUNCED IN THE OPEN COURT ON 4 TH JULY, 2018. SD/ - SD/ - (AMARJIT SINGH) (R.C. SHARMA) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI, DATED: 4 TH JULY, 2018 COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT(A) -30, MUMBAI 4. THE CIT - 19, MUMBAI 5. THE DR, B BENCH, ITAT, MUMBAI BY ORDER //TRUE COPY// ASSISTANT REGISTRAR ITAT, MUMBAI BENCHES, MUMBAI N.P.