ITO WD 1(3), THANE V. KAILASH TALAKSHI SANGOI, THANE

ITA 2343/MUM/2017

• Counselvise Citation: [2018] 126 COUNSELVISE.COM (IT) 0860 (ITAT-MUMBAI)
• Duration Of Justice: 9 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-01-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2011-2012
• Appeal Filed On: 03-04-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: N HEMALATHA
• Assessee Lawyers: PRAVIN N SHAH
• Keywords: Revised return
• Section: 142(1); 133(6); 148

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, MUMBAI BENCH SMC, MUMBAI BEFORE SHRI D.T. GARASIA, JUDICIAL MEMBER ITA NO.2343/M/2017 ASSESSMENT YEAR: 2011-12 INCOME TAX OFFICER, WARD 1(3), THANE ROOM NO.10, 6 TH FLOOR, ASHAR IT PARK, B WING, WAGLE INDL. ESTATE, THANE (W) 400 604 VS. SHRI KAILASH TALAKSHI SANGOI, 5, AYSHA HAJIYANI MANZIL, KK ROAD, MAHAGIRI, THANE (W) 400 601 PAN: AWFPS3723D (APPELLANT) (RESPONDENT) PRESENT FOR: ASSESSEE BY : SHRI PRAVIN N. SHAH, A.R. REVENUE BY : MS. N. HEMALATHA, D.R. DATE OF HEARING : 01.01.2018 DATE OF PRONOUNCEMENT : 22.01.2018 O R D E R PER D.T. GARASIA, JUDICIAL MEMBER: THE PRESENT APPEAL HAS BEEN PREFERRED BY THE REVENU E AGAINST THE ORDER DATED 27.01.2017 OF THE COMMISSIONER OF I NCOME TAX (APPEALS) [HEREINAFTER REFERRED TO AS THE CIT(A)] R ELEVANT TO ASSESSMENT YEAR 2011-12. 2. THE SHORT FACTS OF THE CASE ARE AS UNDER: AIR INFORMATION IN THE CASE OF SH. KAILASH SANGOI HUF SHOWED THAT THERE WAS CASH DEPOSIT OF RS.46,50,000/ - WITH THANE JANTA SAHKARI BANK LIMITED (TJSB LTD.). THE ASSESSI NG OFFICER (HEREINAFTER REFERRED TO AS THE AO) CALLED THE STAT EMENT OF BANK ACCOUNT U/S 133(6) AND FOUND THAT THE BANK ACCOUNT IN WHICH THE CASH DEPOSITS WERE DEPOSITED PERTAINS TO KAILASH SA NGOI, INDIVIDUAL ITA NO.2343/M/2017 SHRI KAILASH TALAKSHI SANGOI 2 AND NOT HUF. THE AO ISSUED NOTICE U/S 148 AND ALSO ISSUED NOTICES UNDER 142(1) AND 143(2). THE AO GAVE A QUESTIONNAIR E TO THE ASSESSEE AND ASKED HIM TO EXPLAIN SOURCE OF CASH DE POSITED IN SAVING BANK ACCOUNT NO. 10838. THE ASSESSEE SUBMITTED THE COPY OF CASH BOOK, BALANCE SHEET AND STATEMENT OF THE BANK ACCOU NT ALONG WITH THE RETURN OF INCOME AND THE REVISED RETURN. IT WAS STA TED BY THE ASSESSEE THAT THERE WAS CASH DEPOSIT OF ONLY RS.40,50,000/- AND NOT RS.46,50,000/-. HE ALSO STATED THAT CASH DEPOSITED IS OUT OF CASH AVAILABLE IN THE CASH BOOK, WHICH IS ON ACCOUNT OF FEES RECEIVED DURING THE YEAR AND THE AVAILABLE CASH-IN-HAND. THE AO ASKED THE ASSESSEE TO GIVE DETAILS OF SUCH FEE RECEIPTS WITH THE NAME AND ADDRESS OF THE PERSON AND NATURE OF THE RECEIPTS. T HE ASSESSEE SUBMITTED THAT IN THE CASH BOOK THE NAMES OF THE CL IENTS FROM WHOM THE FEE IS RECEIVED ARE MENTIONED. IT WAS ALSO SUBM ITTED BY THE ASSESSEE VIDE LETTER DATED 11.02.2015 THAT AS PER B ALANCE SHEET OF F.Y. 2009-10, AS ON 31.03.2010, THERE WAS CASH-IN-H AND OF RS. 23,79,886/- FEE RECEIVABLE OF RS 14,54,206/-. FURTH ER, THE FEE RECEIVED DURING THE YEAR WAS RS.7,01,200/-, SO THE TOTAL AVAILABLE IS RS. 45,35,291/-. THE AO WAS HOWEVER NOT SATISFIED W ITH THE CLAIM OF THE ASSESSEE THAT HE RECEIVED THE ENTIRE FEE WHICH WAS SHOWN AS RECEIVABLE IN EARLIER YEARS IN THE MONTH OF NOVEMBE R AND DECEMBER 2010. HE REJECTED THE EXPLANATION OF THE ASSESSEE I N RESPECT OF FEE RECEIVABLE AND ADDED THE ENTIRE CASH DEPOSITS OF RS .40,50,000/-. 3. MATTER CARRIED TO THE LD. CIT(A) AND THE LD. CIT (A) HAS ALLOWED BY OBSERVING AS UNDER: ITA NO.2343/M/2017 SHRI KAILASH TALAKSHI SANGOI 3 5.4 I HAVE GONE THROUGH THE SUBMISSION OF THE APPE LLANT AND THE ASSESSMENT ORDER. THE APPELLANT WHO WAS A TAX PRAC TITIONER HAS UNFORTUNATELY EXPIRED. THERE WAS DEPOSIT OF RS.40,5 0,000/- IN THE BANK ACCOUNT WITH THANE JANTA SAHKARI BANK LIMITED (TJSB LTD.) ON VARIOUS DATES. THE APPELLANT SUBMITTED THE COPY OF CASH BOOK SHOWING THE SOURCE OF CASH AS UNDER: DATE OF TRANSACTION CASH-IN-HAND AMOUNT DEPOSITED IN THANE JANTA SAHKARI BANK BALANCE CASH- IN-HAND 03.11.2010 40,68,218 10,00,000 30,68,218 04.11.2010 30,68,218 20,00,000 10,68,218 04.11.2010 10,68,218 10,00,000 68,218 11.12.2010 1,64,022 50,000 1,14,022 TOTAL 40,50,000 IN THE CASH BOOK, THE OPENING CASH-IN-HAND AS ON 01 .04.2010 WAS RS.23,79,885/-. FROM MAY 2010 TO DEC 2010, THERE A RE CASH DEPOSITS ON ACCOUNT OF FEE RECEIVABLE AND AGAINST E ACH TRANSACTION OF CASH DEPOSIT, NARRATION IS GIVEN, WH ICH GIVES THE DETAIL OF NAME OF THE CLIENT AND THE NATURE OF WORK DONE. FOR EXAMPLE, ON 02.05.2010 FEE OF RS. 5000/- WAS RECEIV ED FROM VASANTI H NIKAM ON ACCOUNT OF FILING OF INCOME TAX RETURN. ON 5, 2010, RS.6,000/- IS RECEIVED FROM PURNIMA ON ACCOUNTING CHARGES. SIMILARLY, THE FEES RECEIVED FOR VAT RETURN ALSO WI TH THE NAME OF THE CLIENT. THIS INFORMATION SUFFICIENTLY PROVES TH E BONAFIDE OF THE ASSESSEE THAT THE CASH DEPOSITS ARE ON ACCOUNT OF CONSULTATION FEE RE CEIVED FROM CLIENTS. THE BALANCE SHEET OF F.Y. 2008-09 AND 2009-10 ALSO SHOW THAT AN AMOUNT OF RS.30,02,356/- AND RS.14,54,206 WAS RECEIVABLE ON A CCOUNT OF FEE ON 31.03.2009 AND 31.03.2010 RESPECTIVELY. THESE FIGUR ES ARE ALSO CORROBORATED WITH THE FIGURE OF CASH IN HAND, OF RS . 10,06,911/- ON 31.03.2009 AND RS. 23,79,886/- ON 31.03.2010. THESE FIGURES SHOW THAT HISTORICALLY THE APPELLANT WAS RECEIVING THE F EE IN CASH AND LARGE AMOUNTS WERE RECEIVABLE YEAR AFTER YEAR. WHEN THE A SSESSEE REQUIRED THE FUNDS, THE CASH IN HAND AND THE AMOUNT RECEIVAB LE FROM CLIENTS WAS DEPOSITED IN THE BANK. THEREFORE THE ASSESSEE H AS EXPLAINED THE SOURCES OF CASH DEPOSITED IN HIS BANK ACCOUNT AND A O HAS NOT GIVEN ANY PLAUSIBLE REASON TO REJECT THE SAME. THE ASSES SEE THEREFORE GETS THE RELIEF OF RS.40,50,000/-. 4. HAVING HEARD BOTH THE PARTIES AND LOOKING TO THE FACTS AND CIRCUMSTANCES OF THE CASE, I FIND THAT ASSESSEE HAS SUBMITTED CONFIRMATION OF VARIOUS PARTIES FROM WHOM THE LOAN WAS TAKEN, COPY OF BANK STATEMENT AND CASH BOOK. THE ASSESSEE ALSO MAINTAINED CASH ITA NO.2343/M/2017 SHRI KAILASH TALAKSHI SANGOI 4 BOOK TO KEEP THE RECORD OF CASH EXPENSES. THE ASSE SSEE WAS HAVING BUSINESS OF ACCOUNTING WRITING ONLY. ASSESSEE IS N OT LIABLE TO MAINTAIN BOOKS OF ACCOUNT BUT ASSESSEE MAINTAINED T HE CASH BOOK TO SERVE THE PURPOSE OF COMPUTATION OF INCOME, FEES CO LLECTED FROM CLIENT ALSO IS BELOW LIMIT PRESCRIBED, THE BOOKS OF ACCOUNT WERE AUDITED UNDER SECTION 44AB OF THE INCOME TAX ACT, 1 961. ASSESSEE HAS SUBMITTED COPY OF ITR, COMPUTATION OF INCOME AN D VARIOUS SUBMISSIONS AND PROVED THE SOURCE OF CASH DEPOSIT. THEREFORE, I AM OF THE VIEW THAT LD. CIT(A) HAS VERIFIED THE BOOKS OF ACCOUNTS AND IS JUSTIFIED IN DELETING THE SAME AND OUR INTERFERENCE IS NOT REQUIRED. 5. IN THE RESULT, DEPARTMENTAL APPEAL IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 22.01.2018. SD/- (D.T. GARASIA) JUDICIAL MEMB ER MUMBAI, DATED: 22.01.2018. * KISHORE, SR. P.S. COPY TO: THE APPELLANT THE RESPONDENT THE CIT, CONCERNED, MUMBAI THE CIT (A) CONCERNED, MUMBAI THE DR CONCERNED BENCH //TRUE COPY// [ BY ORD ER DY/ASSTT. REGISTRAR, ITAT, MUMBAI.