Lt. Shri Zia Usmani,Thru L/H Smt.Mehvish Usmani(Widow), Allahabad V. ITO, Allahabad

ITA 293/ALLD/2013

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 94937 (ITAT-ALLAHABAD)
• Duration Of Justice: 1 year(s) 10 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-09-2015
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2008-2009
• Appeal Filed On: 17-10-2013
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: UMESH PATHAK
• Assessee Lawyers: SANJAY KHANDUJA
• Keywords: Business expenditure

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL ALLAHABAD BENCH ALLAHABAD BEFORE SHRI P.K. BANSAL , ACCOUNTANT MEMBER ITA NO. 293 /ALLD/201 3 ASSESSMENT YEAR: 200 9 - 10 LATE SHRI ZIA USMANI, VS. ITO, RANGE - II(3), ALLD. THRU: LATE SMT. MEHVISH USMANI (WI DOW), 32 ELGIN ROAD, ALLAHABAD. PAN: AAHPU 0807G (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI SANJAY KHANDUJA, A.R. REVENUE BY : SHRI UMESH PATHAK , DR. DATE OF HEARING: 11 .08.2015 O RDER PER : P.K. BANSAL , A CCOUNTANT MEMBER THIS APPEAL HAS BEEN FILED BY THE ASSESSEE AGAINST THE ORDER OF CIT(A) , ALLAHABAD DATED 29 . 0 6 .201 3 FOR ASSESSMENT YEAR 2008 - 09 . 2. THE ONLY ISSUE INVOLVED IN ALL THE FIVE GROUND S OF APPEAL TAKEN BY THE ASSESSE E RELATE S TO SUSTAINING OF ADDITION BY THE CIT(A) IN RESPECT OF UNEXPLAINED CASH DEPOSITED IN TH E BANK ACCOUNT OF THE ASSESSEE AMOUNTING TO RS.7,19,036/ - . 2 3. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSING OFFICER NOTED THAT THE ASSESSEE WAS THE PROP RIETOR OF TWO CONCERN S , NAMELY, M/S. PASAND AND M/S. M.A. TRAVEL S. D URING THE ASSESSMENT PROCEEDINGS , THE ASSESSING OFFICER FOUND THAT TWO BANK ACCOUNTS IN AXIS BANK ONE WAS SEMI ACCOUNT IN THE JOINT NAME OF LATE SH ZIA USHMANI AND SMT. MEHVISH USMANI BEAR ING ACCOUNT NO.286010100015066 AND OTHER WAS A CURRENT ACCOUNT NO. 286010200001168 IN THE NAME OF M/S. M.H. TRAVELS. DURING THE STATEMENT OF SMT. MEHVISH USMANI, SHE STATED THAT THE DEPOSITS IN THESE BANK ACCOUNTS BELONGED TO LATE SH ZIA USMANI AND THAT TH E DEPOSITS AND WITHDRAWAL IN THE BANK ACCOUNTS WERE RELATED TO TWO FIRMS M/S. PASAND AND M/S. M.H. TRAVESL WHOSE PROPRIETOR WAS LATE SH ZIA USMANI. THE ASSESSING OFFICER, THEREFORE, ASKED THE EXPLANATION OF THE ASSESSEE AND AFTER CONSIDERING THE EXPLANATIO N OF THE ASSESSEE HE MADE AN ADDITION OF RS.7,19,036/ - AS UNEXPLAINED DEPOSITS WORKED OUT IN THE FOLLOWING MANNER: LATE ZIA USMANI BANK A/C TOTAL DEPOSITS BY CASH/CHEQUE RS.17,34,202/ - M/S. M.H. TRAVELS BANK A/C TOTAL DEPOSITS BY CASH/CHEQUE RS .10,33,558/ TOTAL DEPOSITS RS.27,67,760/ (LESS) RECEIPTS DISCLOSED IN THE RETURN RS.20,48,724/ - TOTAL UNEXPLAINED DEPOSITS RS.7,19,036/ - 3. THE ASSESSEE WENT IN APPEAL BEFORE THE CIT(A), THE CIT(A) CONFIRMED THE ORDER OF THE ASSESSING OFFICER BY HOLDING THAT THE TOTAL CASH WITHDRAWAL FROM TWO BANK ACCOUNTS WAS RS.24,33,200/ - 3 AND THE CASH EXPENDITURE ON BUSINESS + DRAWING WAS RS.15,54,211/ - (RS.14,22,221 + RS.1,32,000) THEREFORE ONLY A SUM OF RS.8,78,979/ - WAS AVAILABLE WITH THE ASSESSEE FOR DEPOSITING IN THE BANK SINCE THE ASSESSEE HAS DEPOSITED A SUM OF RS.16,10,050/ - , THEREFORE, BALANCE SUM OF RS.7,31,071/ - REMAINED UNEXPLAINED. THUS, HE CONFIRMED THE ADDITION OF RS.7,19,036/ - . 4. THE LD. D R. HAS DRAWN MY ATTENTION AT PAGE 11 AS WELL AS A COPY OF THE BANK STATEMENT AVAILABLE AT PAGE 225 . H E VEHEMENTLY CONTENDED THAT THE ASSESSEE HAS WITHDRAWN A SUM OF RS.24,33,200/ - WHILE THE DEPOSIT WAS ONLY RS.16,10,050/ - AND THEREFORE WHATEVER DEPOSIT MAD E WAS DULY SUPPORTED OUT OF THE WITHDRAWAL FROM THE BANK ACCOUNT . THE ASSESSING OFFICER OR THE AUTHORITIES BELOW DID NOT VERIFY THIS FACT. HE WILL NOT MIND IF THE MATTER BE SENT BACK TO THE ASSESSING OFFICER FOR VERIFICATION OF THE CASH FLOW STATEMENT ALON G WITH THE BANK ACCOUNT. THE LD. A .R. ON THE OTHER HAND RELIED UPON THE ORDER OF THE CIT(A) . A FTER CONSIDERING THE SUBMISSION OF THE ASSESSEE ALONG WITH THE BACK GROUND RELIED ON BY THE ASSESSEE EVEN THOUGH PRIMA FACIE I WAS OF THE OPINION THAT THE CIT(A) HAS NOT EXAMINED THE CASH FLOW STATEMENT REFERRED TO PAGE NO.11 BUT WHEN WENT THROUGH THE ORDER OF THE CIT(A) I NOTED THAT THE CIT(A) HAS DULY CONSIDERED THE CASH FLOW STATEMENT AND ON THAT BASIS HE HAS WORKED OUT THE CASH AVAILABLE WITH THE ASSESSEE FOR DEPOSIT IN THE BANK. THE 4 CIT(A) HAS WORKED OUT THE BUSINESS EXPENDITURE INCURRED BY THE ASSESSEE DURING THE YEAR AMOUNTING TO RS. 14 , 22 , 221/ - IN CASH AND DRAWING TAKEN OUT BY THE ASSESSEE FROM BOTH THE FIRMS, M/S. PASAND AND M/S. M.H. TRAVELS AT RS.1,32,000 / - THUS HE WORKED OUT THE CASH BEING UTILIZED BY THE ASSESSEE OUT OF THE WITHDRAWAL OF RS.24,33,200/ - FOR BUSINESS EXPENDITURE AND PERSONAL DRAWING TO THE EXTENT OF RS.15,54,221/ - . T HE ONLY BALANCE FUNDS WHICH WERE AVAILABLE BY THE ASSESSEE WERE RS.8,78,97 9/ - FOR DEPOSITING INTO THE BANK WHILE THE ASSESSEE HAS DEPOSITED A SUM OF RS.16,10,050/ - . 5. LEARNED AR BEFORE ME DID NOT DISPUTE THE DEPOSIT S MADE BY THE ASSESSEE IN CASH IN THE BANK TO THE EXTENT OF RS.16,10,050/ - EVEN HE HAS ALSO NOT DISPUTED THE CAS H EXPENDITURE AS WELL AS DRAWING AS WORKED OUT BY THE CIT(A) AMOUNTING TO RS.15,54,221/. UNDER THESE FACTS, I AM OF THE OPINION SET TING ASIDE THE ADDITION AND SENDING BACK TO THE ASSESSING OFFICER WILL NOT SERVE ANY PURPOSE . I THEREFORE, CONFIRM THE ORDER OF THE CIT(A). 6. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE STAND DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 8 / 9 /201 5 . SD/ - ( P.K. BANSAL ) ACCOUNTANT MEMBER DATED: 8 / 9 /201 5 PRABHAT KUMAR KESARWANI, SR.P.S . 5 COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR