Shri Vijaykumar P. Dhakan, RAJKOT-GUJARAT V. The Income Tax Officer, Ward-1(4), RAJKOT-GUJARAT

ITA 38/RJT/2012

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 0125 (ITAT-RAJKOT)
• Duration Of Justice: 4 year(s) 8 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-10-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 19-09-2016
• Assessment Year: 2008-2009
• Appeal Filed On: 27-01-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: C S ANJARIA SR DR
• Keywords: Opportunity of being heard

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL RAJKOT BENCH, RAJKOT [ CONDUCTED THROUGH E-COURT AT AHMEDABAD ] .., ! '#$%,#&#'' BEFORE SHRI S.S. GODARA, JUDICIAL MEMBER AND SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER ./ I.T.A. NO.38/RJT/2012 ( / ASSESSMENT YEAR : 2008-09) SHRI VIJAYKUMAR P.DHAKAN C/O.KALPESHY S.DOSHI & CO. CHARTERED ACCOUNTANTS 411, COSMO COMPLEX MAHIL COLLEGE CIRCLE RAJKOT 360 001 / VS. THE INCOME TAX OFFICER WARD-1(4) RAJKOT *#& ./ ./ PAN/GIR NO. : ADFPD 6829 G ( *, / APPELLANT ) .. ( -*, / RESPONDENT ) *,.# / APPELLANT BY : SHRI KALPESH DOSHI, AR -*,/.# / RESPONDENT BY : SHRI C.S. ANJARIA, SR.DR ! 01/2& / DATE OF HEARING 19/09/2016 34 /2& / DATE OF PRONOUNCEMENT 21/10/2016 #/ O R D E R PER PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER : THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST TH E ORDER OF THE COMMISSIONER OF INCOME TAX(APPEALS)-I, RAJKOT [CIT(A) IN SHORT] DATED 27/12/2011 PERTAINING TO ASSESSMENT YEAR (AY) 2008-09. THE GROUNDS OF APPEAL RAISED BY THE ASSESSEE ARE AS UND ER:- ITA NO.38/ RJT/ 2012 SHRI VIJAYKUMAR P. DHAKAN VS. ITO ASST.YEAR 2008-09 - 2 - 1. THAT, THE LEARNED CIT(A) HAS WRONGLY CONFIRMED THE ADDITION ON ACCOUNT OF CASH DEPOSITS IN THE BANK ACCOUNTS OF RS .11,83,735/- AS UNDISCLOSED INCOME. 2. THAT, THE FINDINGS OF THE LEARNED CIT(A) ARE NOT JU STIFIED AND BAD IN LAW. 2. THE RELEVANT FACTS CONCERNING OF THIS APPEAL AR E THAT ASSESSEE IS AN INDIVIDUAL AND CLAIMS TO BE ENGAGED IN THE BUSINESS OF GOLD LABOUR JOB WORK FOR THE YEAR UNDER CONSIDERATION. THE ASSESSE E FILED HIS RETURN OF INCOME ON 22/10/2008 RELEVANT TO AY 2008-09 DECLARI NG TOTAL INCOME OF RS.1,17,088/-. THE CASE WAS SELECTED FOR SCRUTINY ASSESSMENT. THE ASSESSING OFFICER (AO) IN THE COURSE OF ASSESSMENT INTER ALIA NOTED THAT THE ASSESSEE HAS MADE DEPOSIT OF RS.29,44,659/- IN SAVING BANK ACCOUNT OF ICICI BANK LTD., RAJKOT FOR WHICH THE PARTICULAR S OF DEPOSIT WERE NOT PROVIDED. HE ACCORDINGLY, HELD THE AFORESAID AMOUN T OF RS.29,44,659/- AS UNEXPLAINED DEPOSIT IN BANK ACCOUNT AND ADDED TO THE TOTAL INCOME OF THE ASSESSEE. 3. THE ASSESSEE PREFERRED APPEAL BEFORE THE CIT(A). THE CIT(A) EXAMINED THE DETAILS OF IMPUGNED DEPOSITS AND NOTED THAT AN AMOUNT OF RS.15,36,300/- IS IN THE NATURE OF CASH DEPOSIT OUT OF TOTAL DEPOSIT OF RS.29,44,659/-. AGAINST THE AFORESAID CASH DEPOSIT OF RS.15,36,300/-, THE CIT(A) ACCEPTED THE SOURCE OF CASH DEPOSITS TO THE EXTENT OF RS.3,52,565/- BEING GROSS INCOME EARNED IN GOLD LAB OUR JOB WORK. HOWEVER, THE BALANCE CASH DEPOSIT OF RS.11,83,735/- WAS UPHELD AS ITA NO.38/ RJT/ 2012 SHRI VIJAYKUMAR P. DHAKAN VS. ITO ASST.YEAR 2008-09 - 3 - UNEXPLAINED AND ACCORDINGLY THE ADDITION TO THE EXT ENT OF RS.11,83,735/- WAS SUSTAINED BY THE CIT(A). 4. AGGRIEVED BY THE ORDER OF THE CIT(A), THE ASSESS EE PREFERRED APPEAL BEFORE THE TRIBUNAL. 5. BEFORE THE TRIBUNAL, LD.AR FOR THE ASSESSEE MR.K ALPESH DOSHI REFERRED TO THE CASH BOOK MAINTAINED BY THE ASSESSE E AND CONTENDED THAT THE SOURCE OF CASH DEPOSIT IS OUT OF WITHDRAWAL FRO M ICICI BANK OF RS.11,51,400/-, WITHDRAWAL FROM BANK OF BARODA & OT HER BANK OF RS.4,63,300/- AND INCOME FROM JOB-WORK OF RS.3,52,5 65/- AGGREGATING TO RS.19,67,265/- WHICH IS FAR IN EXCESS OF THE CASH D EPOSIT. THE LD.AR CONTENDED THAT THE CASH BOOK WAS PRODUCED BEFORE TH E AO IN THE REMAND PROCEEDINGS AS WELL AS BEFORE THE CIT(A). HOWEVER, THE CIT(A) FAILED TO TAKE NOTE OF THE WITHDRAWALS MADE FROM OTHER BANKS AND FAILED TO APPRECIATE THAT THE SOURCE OF CASH DEPOSIT IN ICICI BANK IS FULLY CORROBORATED BY THE CORRESPONDING WITHDRAWALS FROM OTHER BANKS AS NOTED ABOVE. THE LD.AR ACCORDINGLY PLEADED THAT SU ITABLE RELIEF MAY BE GIVEN TO THE ASSESSEE. 6. THE LD.DR, ON THE OTHER HAND, RELIED ON THE ORDE R OF THE CIT(A). 7. WE HAVE CAREFULLY CONSIDERED THE RIVAL SUBMISSIO NS AND PERUSED THE ORDERS OF THE AUTHORITIES BELOW. THE LIMITED Q UESTION ARISING FOR OUR ITA NO.38/ RJT/ 2012 SHRI VIJAYKUMAR P. DHAKAN VS. ITO ASST.YEAR 2008-09 - 4 - CONSIDERATION IN THE PRESENT APPEAL IS SOURCE OF CA SH DEPOSIT IN ICICI BANK SUSTAINED BY THE CIT(A) TO THE EXTENT OF RS.11 ,83,735/-. WE TAKE NOTE OF THE PLEA RAISED ON BEHALF OF THE ASSESSEE THAT THE SOURCE OF CASH DEPOSIT IN ICICI BANK IS OUT OF CASH WITHDRAWALS FR OM OTHER BANKS DULY RECORDED IN THE CASH BOOK WHICH HAS NOT BEEN SEEN I N PERSPECTIVE BY THE AUTHORITIES BELOW. WE FIND SOME FORCE IN THE SAID CONTENTION RAISED ON BEHALF OF THE ASSESSEE. THE SOURCE OF CASH DEPOSIT S THUS DESERVES TO BE APPROPRIATELY VERIFIED. THEREFORE, WE CONSIDER IT EXPEDIENT TO REMIT THE MATTER BACK TO THE FILE OF THE CIT(A) FOR FRESH ADJ UDICATION ON THE ADDITIONS SUSTAINED TOWARDS CASH DEPOSIT IN ICICI B ANK DE NOVO IN ACCORDANCE WITH LAW. NEEDLESS TO SAY THAT THE CIT( A) SHALL PROVIDE REQUISITE OPPORTUNITY OF BEING HEARD TO THE ASSESSE E TOWARDS THE SOURCE OF IMPUGNED CASH DEPOSIT WHILE ADJUDICATING THE ISSUE. THE ISSUE IS ACCORDINGLY RESTORED TO THE FILE OF THE CIT(A) IN T ERMS OF AFOREMENTIONED DIRECTIONS. 8. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. THIS ORDER PRONOUNCED IN OPEN COURT ON 21/10/2016 SD/- SD/- .. ! '#$% () (#&) ( S.S. GODARA ) ( PRADIP KUMAR KEDIA ) JUDICIAL MEMBER ACCOUNTANT MEMBER AHMEDABAD; DATED 21/ 10 /2016 ..0,.0../ T.C. NAIR, SR. PS ITA NO.38/ RJT/ 2012 SHRI VIJAYKUMAR P. DHAKAN VS. ITO ASST.YEAR 2008-09 - 5 - / COPY OF THE ORDER FORWARDED TO : 1. *, / THE APPELLANT 2. -*, / THE RESPONDENT. 3. 8 2 ! 92 / CONCERNED CIT 4. ! 92 ( ) / THE CIT(A)-I, RAJKOT 5. :; 20 , , /DR,ITAT, RAJKOT 6. %<1 / GUARD FILE. / BY ORDER, -:2 2 //TRUE COPY// / ( DY./ASSTT.REGISTRAR) %&, / ITAT, RAJKOT 1. DATE OF DICTATION .. 20.10.16 (DICTATION-PAD 8 PAGES ATTACHED AT THE END OF THIS FILE) 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER .. 20.10.16 3. OTHER MEMBER... 4. DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR.P. S./P.S.. 5. DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE D ICTATING MEMBER FOR PRONOUNCEMENT 6. DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR.P .S./P.S. 24.10.16 7. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 24.10.16 8. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK ... 9. THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT RE GISTRAR FOR SIGNATURE ON THE ORDER.. 10. DATE OF DESPATCH OF THE ORDER