MITHALAL VAGTAJI MALI, MUMBAI V. DEPUTY COMMISSIONER OF INCOME -TAX, CIRCLE 9 (2), MUMBAI

ITA 3102/MUM/2016

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 1217 (ITAT-MUMBAI)
• Duration Of Justice: 11 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-04-2017
• Appeal Filed By: Assessee
• Bench Allotted: SMC
• Assessment Year: 2009-2010
• Appeal Filed On: 02-05-2016
• Court: TRIBUNAL
• Department Lawyers: BEENA SANTOSH
• Assessee Lawyers: RASHMIKANT C MOD I; RASHMI MODI
• Keywords: Principle of natural justice; Additional evidence

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH, MUMBAI BEFORE SHRI D. KARUNAKARA RAO, ACCOUNTANT MEMBER ITA NO. 3102/M/2016 (AY 2009 - 2010 ) MITHALAL VAGTAJI MALI, SHOP NO.21, RANGOLI TIME COMPLEX, DR. B.A. ROAD, PAREL (E), MUMBAI 400 012. / VS. DCIT, CIRCLE 9(2), MUMBAI. ./ PAN : AFJPM4760P ( / APPELLANT) .. ( / RESPONDENT ) / APPELLANT BY : MR. RASHMIKANT C. MODI & MS. RASHMI MODI / RESPONDENT BY : MS. BEENA SANTOSH, DR / DATE OF HEARING : 29.03.2017 / DATE OF PRONOUNCEMENT : 12 .04.2017 / O R D E R PER D. KARUNAKARA RAO, AM: THIS APPEAL FILED BY THE ASSESSEE ON 2.5.2016 IS AGAINST THE ORDER OF THE CIT (A) - 32, MUMBAI DATED 16.2.2016 FOR THE ASSESSMENT YEAR 2009 - 2010. 2. IN THIS APPEAL, ASSESSEE RAISED FOUR GROUNDS IN TOTO AND THEY REVOLVE AROUND THE CORRECTNESS OF ADDITION ON ACCOUNT OF CASH CREDIT WITHOUT GRANTING THE BENEFIT OF TELESCOPY. B ASIC FACTS INCLUDE THAT THE ASSESSEE HOLDS BANK ACCOUNT IN ICICI BANK AND HE DEPOSITED CASH ON VARIOUS DATES IN THE YEAR UNDER CONSIDERATION. THE GROSS AMOUNT OF SUCH CREDITS WORKS OUT TO RS. 45 LAKHS (ROUNDED OF). NOBODY WAS PRESENT BEFORE THE AO DURING THE ASSESSMENT PROCEEDINGS WITH ANY EXPLANATION / DETAILS. THUS, ASSESSMENT RESULTED IN ADDITION OF RS. 45 LAKHS (ROUNDED OF). MATTER TRAVELLED TO THE FIRST APPELLATE AUTHORITY. 3. DURING THE FIRST APPELLATE AUTHORI TY, ASSESSEE FILED WRITTEN SUBMISSIONS AND EVENTUALLY REQUESTED FOR TELESCOPY OF CASH DEPOSITS AGAINST THE CASH WITHDRAWALS APPEARED IN THE SAID BANK ACCOUNT OF THE ASSESSEE . AS DISCUSSED IN PARA 7 OF THE ORDER OF THE CIT (A), THE ADDITIONAL EVIDENCES WERE ADMITTED AND REMAND REPORT WAS CALLED FOR FROM THE AO. ON CONSIDERING THE SAID REPORT, CIT (A) HELD THAT THE 2 ASSESSEE FAILED TO PRODUCE CASH SALE BILLS AND CASH PURCHASE BILLS. NOT EVEN THE BOOKS OF ACCOUNTS WERE SUPPLIED. THEREFORE, CIT (A) CONFIRMED THE ADDITION AND ALSO DENIED THE BENEFIT OF TELESCOPY. AGGRIEVED, ASSESSEE IS IN APPEAL BEFORE THE TRIBUNAL. 4. DURING THE PROCEEDINGS BEFORE THE TRIBUNAL , LD COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE MATTER MAY BE REMANDED BACK TO THE FILE OF THE AO WITH A DIRECTION TO CONSIDER THE REQUEST FOR TELESCOPY WHEN THE CASH PURCHASE BILLS ARE FURNISHED. 5. AFTER HEARING BOTH THE PARTIES AND ON PERUSAL OF THE ORDERS OF THE REV ENUE AUTHORITIES AS WELL AS THE RELEVANT MATERIAL PLACED BEFORE US, I AM OF THE OPINION, AS PRAYED BY THE LD AR, THE MATTER IS REQUIRED TO BE REMANDED TO THE FILE OF THE AO WITH A REQUEST FOR TELESCOPY. I ORDER ACCORDINGLY. AO SHALL GRANT A REASONABLE OP PORTUNITY OF BEING HEARD TO THE ASSESSEE AS PER THE SET PRINCIPLES OF NATURAL JUSTICE. ASSESSEE IS ALSO DIRECTED TO FURNISH THE CASH PURCHASE BILLS TO DEMONSTRATE THAT THE WITHDRAWN CASH WAS FOUND WAY BACK INTO THE BANK ACCOUNT. ASSESSING OFFICER IS FREE TO CONFIRM THE ADDITION IN CASE THE CASH PURCHASES ARE NIL DURING THE YEAR OR ASSESSEE FAILS TO DISCHARGE THE ONUS SATISFACTORILY . WITH THESE DIRECTIONS, THE APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. 6. IN THE RESULT, APPEAL OF THE ASSE SSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 12 TH APRIL, 2017. SD/ - (D. KARUNAKARA RAO) ACCOUNTANT MEMBER MUMBAI ; 12.04.2017 . . ./ OKK , SR. PS / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. ( ) / THE CIT(A) - 4. / CIT 3 5. , , / DR, ITAT, MUMBAI 6. / GUARD FILE . //TRUE COPY// / BY ORDER, / (DY./ASSTT. REGISTRAR) , / ITAT, MUMBAI