KAMRAN MOOSA SIWANI, MUMBAI V. ITO 15(1)(2), MUMBAI

ITA 3252/MUM/2013

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 3629 (ITAT-MUMBAI)
• Duration Of Justice: 3 year(s) 3 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-08-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 18-01-2016
• Assessment Year: 2008-2009
• Appeal Filed On: 26-04-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: A RAMACHANDRAN
• Keywords: Income from undisclosed sources
• Section: 69

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, MUMBAI BENCH A, MUMBAI BEFORE SHRI B.R. BASKARAN, ACCOUNTANT MEMBER AND SHRI SANJAY GARG, JUDICIAL MEMBER ITA NO.3252/M/2013 ASSESSMENT YEAR: 2008-09 SHRI KAMRAN M. SIWANI, 95, MORLAND ROAD, HALIMA APARTMENT, B WING, FLAT NO.303, MUMBAI 400 008 PAN: AWPPS9278M VS. CIT (A) 26, MUMBAI, MAHALAXMI CHAMBERS, GROUND FLOOR, MAHALAXMI, MUMBAI 400 034 (APPELLANT) (RESPONDENT) PRESENT FOR: ASSESSEE BY : SHRI GYANESHWAR KATARAM, A.R. REVENUE BY : SHRI A. RAMACHANDRAN, D.R. DATE OF HEARING : 18.08.2016 DATE OF PRONOUNCEMENT : 18.08.2016 O R D E R PER SANJAY GARG, JUDICIAL MEMBER: THE PRESENT APPEAL HAS BEEN PREFERRED BY THE ASSES SEE AGAINST THE ORDER DATED 04.02.2013 OF THE COMMISSIONER OF INCOME TAX (APPEALS) [HEREINAFTER REFERRED TO AS THE CIT(A)], RELEVANT TO ASSESSMENT YEAR 2008-09. 2. THE ASSESSEE THROUGH HIS GROUNDS OF APPEAL HAS A GITATED THE ACTION OF THE LD. CIT(A) IN CONFIRMING THE ADDITION OF RS.4,22,02 8/- INTO THE TOTAL INCOME OF THE ASSESSEE AS INCOME FROM UNDISCLOSED SOURCES UND ER SECTION 69 OF THE INCOME TAX ACT. 3. THE BRIEF FACTS OF THE CASE ARE THAT DURING THE ASSESSMENT PROCEEDINGS, THE ASSESSING OFFICER (HEREINAFTER REFERRED TO AS T HE AO) OBSERVED THAT IN THE BANK ACCOUNT OF THE ASSESSEE THERE WERE CASH DEPOSI TS AND CASH WITHDRAWALS OF RS.10,96,960/- & RS.7,70,400/- RESPECTIVELY. IN TH IS REGARD, IT WAS EXPLAINED BY THE ASSESSEE THAT THE CASH DEPOSITS HAVE COME OU T OF RECEIPTS OF COSMETIC BUSINESS AND BY RE-DEPOSITS OUT OF CASH WITHDRAWALS . THE AO WAS NOT SATISFIED WITH THE EXPLANATION OF THE ASSESSEE AS THE SAME WA S NOT SUPPORTED BY ANY ITA NO.3252/M/2013 SHRI KAMRAN M. SIWANI 2 EVIDENCE. UNDER THESE CIRCUMSTANCES, THE AO WORKED OUT THE PEAK DEPOSIT OF RS.4,22,028/- AND ADDED THE SAME AS UNEXPLAINED INV ESTMENT IN BANK DEPOSITS U/S.69 OF THE ACT. 4. IN APPEAL, THE LD. CIT(A) PASSED AN EX-PARTE ORD ER CONFIRMING THE ADDITIONS MADE BY THE AO. THE ASSESSEE, HAS, THUS COME IN APPEAL BEFORE US. 5. WE HAVE HEARD THE RIVAL CONTENTIONS AND HAVE ALS O GONE THROUGH THE RECORDS. THE LD. A.R. OF THE ASSESSEE HAS BROUGHT TO OUR NOTICE THAT THE ASSESSEE HAS BEEN MAINTAINING PROPER ACCOUNTS AND A LL THE ACCOUNTS OF THE ASSESSEE WERE FULLY DISCLOSED IN THE RETURN OF INCO ME. THE BANK ACCOUNTS OF THE ASSESSEE WERE DULY DISCLOSED IN THE BOOKS OF TH E ACCOUNT. THE BOOKS OF ACCOUNTS HAVE NOT BEEN REJECTED BY THE AO DURING TH E ASSESSMENT PROCEEDINGS. UNDER SUCH CIRCUMSTANCES, THE DEPOSITS IN THE BANK ACCOUNTS WERE DULY ACCOUNTED FOR AND WERE DISCLOSED IN THE RETURN OF I NCOME. THE PROVISIONS OF SECTION 69 ARE ATTRACTED WHEN ANY INVESTMENTS MADE BY THE ASSESSEE ARE FOUND TO BE NOT RECORDED IN THE BOOKS OF ACCOUNT AND THE ASSESSEE OFFERS NO EXPLANATION ABOUT THE NATURE AND SOURCE OF INVESTME NTS OR THE EXPLANATION OFFERED BY THE ASSESSEE IS NOT, IN THE OPINION OF T HE AO, SATISFACTORY. HOWEVER, IN THE CASE IN HAND, THE BANK ACCOUNTS OF THE ASSES SEE ARE FULLY DISCLOSED. THE ASSESSEE HAS BEEN MAINTAINING PROPER BOOKS OF ACCOU NT AND THE SAME HAVE NOT BEEN REJECTED BY THE AO. IN VIEW OF THIS, NO ADDIT IONS UNDER SECTION 69 ARE WARRANTED. WE THEREFORE SET ASIDE THE ORDER OF THE LOWER AUTHORITIES AND DEETED THE ADDITIONS SO MADE BY THE AO. 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS HER EBY ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 18.08.2016. SD/- SD/- (B.R. BASKARAN) (SANJAY GARG) ACCOUNTANT MEMBER JUDICIAL MEMBER MUMBAI, DATED: 18.08.2016. * KISHORE, SR. P.S. ITA NO.3252/M/2013 SHRI KAMRAN M. SIWANI 3 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.