VIJAYA RANJANE, MUMBAI V. ITO 23(1)(4), MUMBAI

ITA 2457/MUM/2013

• Counselvise Citation: [2013] 120 COUNSELVISE.COM (IT) 4288 (ITAT-MUMBAI)
• Duration Of Justice: 3 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-07-2013
• Appeal Filed By: Department
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Assessment Year: 2001-2002
• Appeal Filed On: 01-04-2013
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: O P SINGH
• Assessee Lawyers: JITENDRA SINGH; SATENDRA PANDEY
• Keywords: Business income
• Section: 68

Judgement Text

. , IN THE INCOME TAX APPELLATE TRIBUNAL SMC , BENCH MUMBAI , BEFORE SHRI R. K. GUPTA , JM ITA NO. 2 457 / MUM/ 20 1 3 ( ASSESSMENT Y EAR : 200 1 - 20 0 2 ) VJAYA RANJANE, B - 102, HEMA PARK VEER SAVARKAR MARG, BHANDUP (E) , MUMBAI - 400 042 VS. ITO 2 3 ( 1 )( 4 ) , MUMBAI - 51 PAN/GIR NO. : A JYPR 5645 R ( APPELLANT ) .. ( RESPONDENT ) / ASSESSEE BY : SHRI JITENDRA SINGH & SHRI SATENDRA PANDEY /REVENUE BY : SHRI O.P.SINGH DATE OF HEARING : 1 ST JULY , 201 3 DATE OF PRONOUNCEMENT : 10 TH JULY , 2013 O R D E R TH IS APPEAL HAS BEEN PREFERRED BY THE ASSESSEE AGAINST THE ORDER DATED 15 - 1 - 2013 OF CIT(A) - 1 9 , MUMBAI RELA TING TO THE ASSESSMENT YEAR 200 1 - 0 2 . 2 . GROUNDS NO. 2 & 3 ARE RELATING TO CONFIRMING THE ADDITION OF RS. 1,12,500/ - UNDER SECTION 68 OF THE ACT. 3. DURING THE ASSESSMENT PROCEEDING THE AO NOTED THAT THE ASSESSEE HAS MADE CASH DEPOSIT OF RS. 1,12,500/ - IN THE BANK ACCOUNT OF KURLA SAHAKARI BANK. SINCE NO SOURCE OF DEPOSIT WAS EXPLAINED, ACCORDINGLY, THE AO MADE ADDITION OF RS. 1,12,500/ - . 4 . BEFORE THE CIT(A) , IT WAS STATED THAT DURING THE YEAR ONLY CASH DEPOSIT OF RS. 79,300/ - WERE MADE. A COPY OF BANK STATEMENT WAS ALSO FILED. IT WAS FURTHER EXPLAINED THAT A SUM OF RS. 20,000/ - WAS DEPOSITED OUT ITA NO. 2 457 /20 1 3 2 OF BALANCE AVAILABLE AS ON 31 - 3 - 2000. IT WAS ALSO EXPLA INED THAT THE OTHER CASH DEPOSITED CONSISTED OF GROSS RECEIPTS FROM THE BUSINESS OF THE ASSESSEE. HOWEVER, LEARNED CIT(A) WAS NOT SATISFIED. ACCORDINGLY, HE CONFIRMED THE ADDITION OF RS. 1,12,500/ - . 5 . AFTER CONSIDERING THE SUBMISSION AND PERUSING THE MATER IAL ON RECORD, I FOUND THAT A SUM OF RS. 79,300/ - WAS ONLY DEPOSITED IN THE YEAR UNDER CONSIDERATION. COPY OF BANK STATEMENT IS PLACED AT PAGES 5 & 6. THEREFORE, IF ANY ADDITION CAN BE MADE, THAT CAN BE MADE ON L Y OF RS. 79,300/ - . ACCORDINGLY, I DIRECT THE AO TO REDUCE THE ADDITION TO RS. 79,300/ - AGAINST THE ADDITION OF RS. 1,12,500/ - . THIS GROUND OF THE ASSESSEE IS ALLOWED IN PART. 6 . THE NEXT GROUND RELATES TO ADDITION OF RS. 43,950/ - . 7 . THE ASSESSEE HAS SHOWN BUSINESS INCOME OF RS. 43,950/ - OUT OF SALE OF GAR MENTS. HOWEVER, THE AO HAS NOT TREATED THE BUSINESS GENUINE AND, ACCORDINGLY, HE ADDED THIS AMOUNT OF RS. 43,950/ - AS UNEXPLAINED INCOME OF THE ASSESSEE. 8 . LEARNED CIT(A) HAS ALSO CONFIRMED THE SAME. 9 . AFTER CONSIDERING THE SUBMISSION, I FOUND THAT THE AO WAS NOT JUSTIFIED IN TREATING THE INCOME AS UNEXPLAINED AS THE ASSESSEE HAS SHOWN THE SAME AS BUSINESS INCOME ON SALE OF GARMENTS. ACCORDINGLY, THE INCOME SHOWN BY THE ASSESSEE UNDER THE HEAD BUSINESS INCOME HAS TO BE ACCEPTED. THIS GROUND OF THE ASSES SEE IS ALLOWED. 10 . REMAINING ISSUE IS AGAINST SUSTAINING THE ADDITION OF RS. 15,000/ - MADE ON ACCOUNT OF LOAN TAKEN FROM ONE SHRI KISHAN BICHURE. ITA NO. 2 457 /20 1 3 3 11 . THE AO BY OBSERVING THAT THE ASSESSEE FAILED TO PROVE THE GENUINENESS OF THE LOAN, THEREFORE, HE ADDED THE LOAN IN THE HANDS OF THE ASSESSEE. CIT(A) HAS ALSO CONFIRMED THE ACTION OF THE AO. 1 2 . AFTER CONSIDERING THE SUBMISSION, I FOUND THAT THE LOAN CONFIRMATION WAS FILED. KEEPING IN MIND THE PETTY AMOUNT OF LOAN, I AM OF THE VIEW THAT THE EXPLANATION OF THE ASSESSEE SHOULD HAVE BEEN ACCEPTED. EVEN AND OTHERWISE THE ADDITION OF RS. 79,300/ - HAS ALSO BEEN CONFIRMED ON ACCOUNT OF CASH DEPOSIT IN THE BANK, THEREFORE, I FEEL THAT NO SEPARATE ADDITION IS REQUIRED. ACCORDINGLY, THE ADDITION OF RS. 15,000/ - IS HEREBY D ELETED. 1 3 . IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED IN PART . ORDER PRONOUNCED IN THE OPEN COURT ON THIS 10 TH DAY OF JU LY .2013 SD/ - ( ) ( R.K.GUPTA ) / JUDICIAL MEMBER MUMBAI; DATED : 10/07 / 2013 /PKM , PS COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / TH E RESPONDENT. 3. / THE CIT(A) , MUMBAI. 4. / CIT 5. / DR, ITAT, MUMBAI 6. GUARD FILE. //TRUE COPY// / BY ORDER, ( ASSTT. REGISTRAR) / ITAT, MUMBAI