DAKSHA BHARAT MEHTA, MUMBAI V. DCIT CEN CIR 8(2), MUMBAI

ITA 3770/MUM/2016

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 3374 (ITAT-MUMBAI)
• Duration Of Justice: 2 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-08-2016
• Appeal Filed By: Assessee
• Bench Allotted: SMC
• Assessment Year: 2011-2012
• Appeal Filed On: 01-06-2016
• Court: TRIBUNAL
• Department Lawyers: ASHUTOSH RAJHANSDR
• Assessee Lawyers: MANISH SANGHAVI
• Section: 132

Judgement Text

, - , IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES SMC, MUMBAI , ! ' , BEFORE SHRI JOGINDER SINGH, JUDICIAL MEMBER, ITA NO.3770/MUM/2016 ASSESSMENT YEAR: 2011-12 SMT. DAKSHA BHARAT MEHTA, 201/202, E-WING, KUKREJA PALACE, VALLABH BAUG LANE, GHATKOPAR (E), MUMBAI-400075 / VS. DCIT, CENTRAL CIRCLE-8(2), 6 TH FLOOR, AAYAKAR BHAVAN, M.K. ROAD, MUMBAI-400020 / ASSESSEE / REVENUE P.A. NO . AGJPM2892H $ % & / ASSESSEE BY SHRI MANISH SANGHAVI $ % & / REVENUE BY SHRI ASHUTOSH RAJHANS-DR / DATE OF HEARING 31/08/2016 & / DATE OF ORDER: 01/09/2016 & / O R D E R THE ASSESSEE IS AGGRIEVED BY THE IMPUGNED ORDER DA TED 28/03/2016 OF THE LD. FIRST APPELLATE AUTHORITY, MU MBAI. THE ONLY GROUND RAISED IN THE PRESENT APPEAL PERTAI NS TO ITA NO.3776/MUM/2016 SMT. DAKSHA BHARAT MEHTA 2 CONFIRMING THE ADDITION OF RS.6,25,000/- ON ACCOUNT OF ALLEGED UNEXPLAINED CASH. 2. DURING HEARING, SHRI MANISH SANGHAVI, LD. COUNS EL FOR THE ASSESSEE, EXPLAINED THAT SEARCH WAS CARRIED OUT U/S 132 OF THE ACT AT THE RESIDENTIAL AND BUSINESS PREM ISES OF AQUATIC GROUP OF CASES ON 09/09/2010. THE LD. COUN SEL DISPUTED THE FINDINGS CONTAINED IN THE ASSESSMENT O RDER AS WELL AS IN THE IMPUGNED ORDER THAT THE CASH UNDER Q UESTION BELONGS TO ANY GROUP BY CLAIMING THAT IT BELONGS TO FAMILY MEMBERS OF THE JOINT FAMILY. MY ATTENTION WAS INVIT ED TO PAGES 39 AND 40 OF THE PAPER BOOK SHOWING AVAILABIL ITY OF CASH. THE LD. COUNSEL EXPLAINED THAT THE TOTAL CASH AVAILABLE WITH THE GROUP COMPANIES AS WELL AS VARIOUS MEMBERS OF THE FAMILY WAS TO THE TUNE OF RS.79,86,725/- , OUT OF W HICH, THE CASH SEIZED WAS RS.55,46,500/-(PAGE 40 OF THE PAPER BOOK). THE LD. COUNSEL CLAIMED THAT THE CASH WAS ACCEPTED BY THE ASSESSING OFFICER IN THE CASES OF OTHER FAMILY MEMB ERS AND MERELY IN THE CASE OF THE PRESENT ASSESSEE, THE ADD ITION WAS MADE TO THE TUNE OF RS.6,25,000/- AS UNEXPLAINED CA SH. IT WAS FURTHER EXPLAINED THAT IN THE CASE OF ASSESSEE CASH OF RS.4,87,500/- WAS VERY MUCH AVAILABLE. MY ATTENTION WAS ALSO INVITED TO AVAILABILITY OF CASH WITH OTHER FAM ILY MEMBERS (AS PER CASH BOOK, PAGE 40 OF THE PAPER BOOK). 2.1. ON THE OTHER HAND, THE LD. DR, SHRI A. RAJHA NS, DEFENDED THE ADDITION BY ARGUING THAT THE BENEFIT O F AVAILABILITY OF CASH HAS ALREADY BEEN GIVEN TO THE ASSESSEE. ITA NO.3776/MUM/2016 SMT. DAKSHA BHARAT MEHTA 3 MY ATTENTION WAS INVITED TO PARA 6.3 OF THE ASSESSM ENT ORDER AND PAGE 6 OF THE IMPUGNED ORDER. 2.2. I HAVE CONSIDERED THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. THE FACT S, IN BRIEF, ARE THAT A SEARCH ACTION U/S 132 OF THE ACT WAS CAR RIED OUT ON 09/09/2010 AT THE RESIDENTIAL/OFFICE PREMISES OF AQUATIC GROUP OF CASES. A SEARCH WAS ALSO CONDUCTED UPON TH E ASSESSEE. A LOCKER NUMBER G733 AT KUBER SAFE VAULT S LTD. WAS ALSO OPENED, WHICH WAS IN THE NAME OF ASSESSEE ON 21/09/2010, FROM WHICH A CASH OF RS.28,07,500/- WAS FOUND AND SEIZED. THE STATEMENT OF THE ASSESSEE WAS RECO RDED, DURING SEARCH, AND THE ASSESSEE STATED THAT THE CAS H BELONGS TO HER HUSBAND. DURING ASSESSMENT PROCEEDINGS, THE ASSESSEE WAS ASKED TO EXPLAIN THE SOURCE OF THE CAS H SEIZED FROM THE LOCKER. SHRI BHARAT MEHTA, HUSBAND OF THE ASSESSEE FILED A LETTER DATED 22/02/2012, CLAIMED THAT THE L OCKER BELONGS TO HIM AND HIS FAMILY MEMBERS BY EXPLAINING THAT HE AND HIS FAMILY MEMBERS ARE PARTS OF A JOINT FAMILY AND THE CASH BELONGS TO THE FAMILY MEMBERS AS IT IS IMPOSSI BLE TO HAVE DIFFERENT CASH BOXES. IT IS ALSO NOTED THAT WH ILE RECORDING THE STATEMENTS, THE ASSESSEE SMT. DAKSHA MEHTA AND SMT. PRITY MEHTA ALSO EXPLAINED THAT THE CASH W AS GIVEN TO THEM BY THEIR RESPECTIVE HUSBAND, WHO ARE DIRECT ORS IN THE GROUP COMPANIES. WITHOUT ADVERTING FURTHER, I FOUND THAT THE TOTAL CASH BALANCE AVAILABLE WITH THE GROUP COMPANI ES AND FAMILY MEMBERS WAS TO THE TUNE OF RS.79,86,725/- OU T OF WHICH RS.55,46,500/- WAS SEIZED (PAGE-40 OF THE PAP ER BOOK). ITA NO.3776/MUM/2016 SMT. DAKSHA BHARAT MEHTA 4 IT IS ALSO NOTED THAT THE AVAILABILITY OF CASH WITH THE ASSESSEE WAS RS.4,87,500/- AND THE REMAINING AMOUNTS AVAILAB LE AS DETAILED AT PAGE-40 ITSELF. THE TOTAL AMOUNT OF RS. 61,07,800/- WAS SEIZED ON VARIOUS DATES FROM VARIOUS PERSONS OF THE JOINT FAMILY (PAGE-39- EXHIBIT-B OF THE PAPER BOOK). THE LD. COUNSEL FOR THE ASSESSEE FILED VARIOUS ASSESSMENT ORDERS IN THE CASE OF OTHER FAMILY MEMBERS/CONCERN OF THE GROUP, WHERE IN, THE LD. ASSESSING OFFICER ADMITTED THE AVAILABILITY OF CASH( PAGES 73 TO 211 OF THE PAPER BOOK). THIS FACTUAL MATRIX W AS NOT CONTROVERTED BY THE LD. DR. CONSIDERING THE AVAILA BILITY OF CASH ( AS PER BOOKS) IN THE HANDS OF GROUP COMPANIE S AND FAMILY MEMBERS, I AM OF THE VIEW THAT SOURCE OF CAS H, ADDED IN THE HANDS OF THE ASSESSEE, IS DULY EXPLAINED AS ALL THE FAMILY MEMBERS ARE RESIDING IN A JOINT FAMILY AND S UFFICIENT CASH WAS AVAILABLE WITH THEM. THIS FACTUAL MATRIX E VEN WAS NOT DISPUTED BY THE REVENUE, THUS, THE APPEAL OF TH E ASSESSEE DESERVES TO BE ALLOWED, THEREFORE, THE LD. ASSESSIN G OFFICER IS DIRECTED TO DELETE THE ADDITION. FINALLY, THE APPEAL OF THE ASSESSEE IS ALLOWED. THIS ORDER WAS PRONOUNCED IN THE OPEN IN THE PRESEN CE OF LD. REPRESENTATIVE FROM BOTH SIDES AT THE CONCLU SION OF THE HEARING ON 31/08/2016. SD/- (JOGINDER SINGH) ! ' / JUDICIAL MEMBER MUMBAI; DATED : 01/09/2016 F{X~{T? P.S / ! ITA NO.3776/MUM/2016 SMT. DAKSHA BHARAT MEHTA 5 & $ )!*+ ,&+-* / COPY OF THE ORDER FORWARDED TO : 1. '#$%& / THE APPELLANT 2. '(%& / THE RESPONDENT. 3. ) ) * / THE CIT, MUMBAI. 4. ) ) * / CIT- , MUMBAI 5. +,- ' , ) '#$ ' / , / DR, ITAT, MUMBAI 6. -0 1$ / GUARD FILE. & / BY ORDER, (+# ' //TRUE COPY// / (DY./ASSTT. REGISTRAR) , / ITAT, MUMBAI