RAJESH JESUR NADAR, MUMBAI V. ITO 26(2)(2), MUMBAI

ITA 3236/MUM/2014

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 0061 (ITAT-MUMBAI)
• Duration Of Justice: 3 year(s) 1 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-06-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Next Hearing Date: 11-02-2016
• Assessment Year: 2009-2010
• Appeal Filed On: 06-05-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: G P MEHTA
• Keywords: Maximum Marginal Rate

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, MUMBAI BENCH D, MUMBAI BEFORE SHRI D.T. GARASIA, JUDICIAL MEMBER AND SHRI RAJESH KUMAR, ACCOUNTANT MEMBER ITA NO.3236/M/2014 ASSESSMENT YEAR: 2009-10 SHRI RAJESH JESUR NADAR, BLDG. NO.11, R.NO.302, MMRDA COLONY, TUNGA VILLAGE, POWAI, MUMBAI 400 072 PAN: AHMPN 0291R VS. INCOME TAX OFFICER-26(2)(2), 6 TH FLOOR, ROOM NO.612, SMT. K.G. MITTAL AYURVEDIC HOSP. BLDG., CHARNI ROAD, MUMBAI 400 002 (APPELLANT) (RESPONDENT) PRESENT FOR: ASSESSEE BY : SHRI G.P. MEHTA, A.R. REVENUE BY : SHRI PURUSHOTTAM KUMAR, D.R. DATE OF HEARING : 24.04.2017 DATE OF PRONOUNCEMENT : 21.06.2017 O R D E R PER D.T. GARASIA, JUDICIAL MEMBER: THE PRESENT APPEAL HAS BEEN PREFERRED BY THE ASSES SEE AGAINST THE ORDER DATED 12.03.2014 OF THE COMMISSIONER OF INCOME TAX (APPEALS) [HEREINAFTER REFERRED TO AS THE CIT(A)] RELEVANT TO ASSESSMENT Y EAR 2009-10. 2. THE SHORT FACTS OF THE CASE ARE THAT ASSESSEE IS AN INDIVIDUAL AND FILED THE RETURN OF INCOME ON 16.03.10 DECLARING TOTAL INCOME OF RS.1,38,920/-. THE CASE WAS SELECTED FOR SCRUTINY. NOTICES WERE ISSUE D TO THE ASSESSEE AND THE MATTER WAS FIXED ON VARIOUS DATES I.E. 13.10.10, 16 .08.11, 29.09.11 AND 02.11.11. THE ASSESSEE DID NOT COMPLY WITH THE NOT ICE. AS PER AIR DETAILS, THERE WAS CASH DEPOSIT OF RS.16,52,379/- IN ICICI B ANK ACCOUNT OF THE ASSESSEE. SINCE NO EXPLANATION HAD BEEN FURNISHED IN RESPECT OF SUCH CASH DEPOSITS SAME WAS TREATED AS UNEXPLAINED AND ADDED TO THE TOTAL INCOME OF THE ASSESSEE. ITA NO.3236/M/2014 SHRI RAJESH JESUR NADAR 2 3. MATTER CARRIED TO LD. CIT(A) AND THE LD. CIT(A) HAS DISMISSED THE APPEAL OF THE ASSESSEE. 4. DURING THE COURSE OF HEARING, THE LD. A.R. SUBMI TTED THAT THE ASSESSEE HAS FILED COMPLETE SET OF DOCUMENTS INCLUDING RETUR N OF INCOME, BALANCE SHEET, PROFIT AND LOSS ACCOUNT AND CASH FLOW STATEMENT. I N RESPECT OF THE CASH DEPOSIT, THE LD. A.R. SUBMITTED THAT IT IS A TURNOVER OF THE ASSESSEE AND ASSESSEE HAS MADE PURCHASES AND DEPOSITED THE MONEY IN THE BANK ACCOUNT. THIS SHOWS THAT IT IS A BUSINESS TRANSACTION AND THEREFORE, THIS RE QUIRES VERIFICATION AT THE END OF THE AO. HE FURTHER SUBMITTED THAT ASSESSEE COULD N OT REMAIN PRESENT BEFORE THE AO AND WAS UNABLE TO EXPLAIN THE SAME. HE PLEADED THAT THE MATTER MAY BE RESTORED TO THE AO TO EXPLAIN THE CASH DEPOSIT IN T HE BANK ACCOUNT OF THE ASSESSEE. 4. THE LD. D.R. OBJECTED TO IT. 5. WE HAVE HEARD THE RIVAL CONTENTIONS OF BOTH THE PARTIES. LOOKING INTO THE FACTS AND CIRCUMSTANCES OF THE CASE, WE ARE OF THE VIEW THAT IT IS THE CASE OF THE ASSESSEE THAT ASSESSEE IS STAYING IN A CHAWL AT POWAI FILTER PADA, NEAR PANDEY COMMUNICATION AND THE AO HAS ISSUED VARIOUS NOTICES WHICH WERE DELIVERED AT PANDEY COMMUNICATION, IN THE ABSENCE O F PROPER CHAWL AND ROOM NUMBER. HENCE, THE ASSESSEE COULD NOT COMPLY THE S AME. THE ASSESSEE IS CARRYING TRADING ACTIVITY OF ELECTRIC HOLDER WHICH IS USED FOR HOLDING TUBE LIGHTS, ELECTRIC BULBS ETC. THE ASSESSEES MAIN BU SINESS IS TO PURCHASE THE PART OF ELECTRICAL HOLDER FROM VARIOUS VENDORS AND SELL IT. THE ENTIRE AMOUNT WHICH IS DEPOSITED IN THE BANK IS THE BUSINESS TRANSACTIO N WHICH WAS CARRIED OUT BY THE ASSESSEE. THE ENTIRE TRANSACTIONS OF PURCHASE AND SALE WERE CARRIED OUT THROUGH BANK. THE ENTIRE TRANSACTION WAS CREATED T O AVAIL THE LOAN FROM BANK. THEREFORE, IF THIS EVIDENCE WAS SUBMITTED BEFORE TH E LD. CIT(A) WHICH IS ON PAGE NO.1 TO 12 OF THE PAPER BOOK AND ASSESSEE WOULD BE ABLE TO EXPLAIN THE DEPOSIT IN THE BANK ACCOUNT. THEREFORE, ITA NO.3236/M/2014 SHRI RAJESH JESUR NADAR 3 IT REQUIRES VERIFICATION AT THE END OF THE AO. AFT ER VERIFICATION OF ALL THE TRANSACTIONS, THE AO IS DIRECTED TO DECIDE THE MATT ER AFRESH AS PER LAW. 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED. ORDER PRONOUNCED IN THE OPEN COURT ON 21.06.2017. SD/- SD/- (RAJESH KUMAR) (D.T. GARASIA) ACCOUNTANT MEMBER JUDICIAL MEMBER MUMBAI, DATED:21.06.2017. * 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.