SHARAD.S.PATIL, MUMBAI V. ITO 24(2)(2), MUMBAI

ITA 3957/MUM/2009

• Counselvise Citation: 395719914 RSA 2009
• Duration Of Justice: 2 year(s) 5 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-11-2011
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: J
• Next Hearing Date: 23-11-2011
• Assessment Year: 2005-2006
• Appeal Filed On: 23-06-2009
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: P ARTH SARATHI NAIK
• Assessee Lawyers: S A MUKADAM
• Keywords: Additional evidence

Judgement Text

ITA NO 3957 OF 2009 SHARAD S PATIL MUMBAI PAGE 1 OF 3 IN THE INCOME TAX APPELLATE TRIBUNAL 'J' BENCH, MUMBAI BEFORE SHRI D.K. AGARWAL, JUDICIAL MEMBER AND SHRI B. RAMAKOTAIAH, ACCOUNTANT MEMBER ITA NO. 3957/MUM/2009 (ASSESSMENT YEAR: 2005-06) SHRI SHARAD S. PATIL, INCOME TAX OFFICER 704 SAINATH APARTMENT, 24(2)(2) BHANDARWADA, GAOTHAN ROAD MUMBAI MALAD (W) MUMBAI 400064 VS PAN AGIPP 9501 F APPELLANT RESPONDENT APPELLANT BY: SHRI S.A. MUKADAM RESPONDENT BY: SHRI PARTHSARATHI NAIK, DR DATE OF HEARING: 23/11/2011 DATE OF PRONOUNCEMENT: 30/11/2011 O R D E R PER B. RAMAKOTAIAH, A.M. THIS IS AN APPEAL BY THE ASSESSEE AGAINST THE ORDER S OF THE CIT (A) XXIV, MUMBAI DATED 15/05/2009. THE ASSESSEE IS AN ESTATE & NEWS PAPER AGENT HAVING DECLARED A TOTAL INCOME OF ` 1,08,472/-. THE ASSESSING OFFICER NOTICED THAT THERE ARE CERTAI N CASH DEPOSITS IN THE BANK ACCOUNT OF THE ASSESSEE AND ASKED FOR EXPL ANATION OF VARIOUS CASH CREDITS. AN AMOUNT OF ` 2,65,000/- WAS STATED TO BE DEPOSITS FROM RECEIPTS OF ESTATE AGENCY BUSINESS AN D NEWS PAPER EARNINGS AND DEPOSIT OF ` .1,58,500/- SAID TO HAVE BEEN RECEIVED FROM HIS FATHER. THE ASSESSEES EXPLANATION WAS NOT ACCEPTED AND THE ASSESSING OFFICER TREATED THE WHOLE AMOUNT AS U NEXPLAINED CASH CREDIT AND MADE THE ADDITION. 2. BEFORE THE CIT (A), THE ASSESSEE FURNISHED AFFIDAVI T OF ONE MR. VINAYAK V. LOKHANDE DATED 25.03.2009 IN SUPPORT OF THE PURCHASE OF NEWSPAPER LINE AND FACT OF PAYING THE ABOVE AMOU NT FOR PURCHASE ITA NO 3957 OF 2009 SHARAD S PATIL MUMBAI PAGE 2 OF 3 OF NEWSPAPER BUSINESS. FURTHER AN AFFIDAVIT OF SHRI S.C. PATIL, FATHER OF THE ASSESSEE WAS ALSO FURNISHED THAT AN AMOUNT O F ` 1,58,500/- WAS ADVANCED BY HIM AS LOAN TO HIS SON. THE CIT (A) REJECTED BOTH AND CONFIRMED THE ADDITIONS. 3. BEFORE US, THE LEARNED COUNSEL SUBMITTED THAT THE A SSESSEE BEING A SMALL TIME ESTATE & NEWS PAPER AGENT, COULD NOT PROPERLY EXPLAIN THE MATTER WHEN THE CASE WAS TAKEN UP FOR S CRUTINY AND SUBSEQUENTLY BEFORE THE CIT (A) ADDITIONAL EVIDENCE S IN THE FORM OF AFFIDAVITS WERE FURNISHED WITH EVIDENCE WHICH THE C IT (A), WITHOUT SUBJECTING TO VERIFICATION REJECTED THE SAME. IT WA S HIS SUBMISSION THAT THE MATTER MAY BE RESTORED TO THE FILE OF THE ASSESSING OFFICER SO THAT THE ASSESSEE WILL BE IN A POSITION TO SUBST ANTIATE HIS CONTENTIONS WITH REFERENCE TO THE CASH CREDITS IN T HE BANK ACCOUNT. 4. THE LEARNED DEPARTMENTAL REPRESENTATIVE HOWEVER, SU BMITTED THAT THE ASSESSEE HAS NOT FURNISHED ANY EVIDENCE IN THE COURSE OF THE ASSESSMENT PROCEEDINGS. THEREFORE, THE CASH CRE DITS ARE TO BE CONFIRMED. 5. WE HAVE CONSIDERED THE ISSUE. WE NOTICE THAT AN AMO UNT OF ` 2,65,000/- WAS STATED TO HAVE BEEN RECEIVED ON SALE OF NEWSPAPER LINE I.E. BUSINESS OF NEWS PAPER AGENCY AND AFFIDAV IT OF SHRI VINAYAK V. LOKHANDE ALONG WITH HIS BANK STATEMENT WAS ATTAC HED AS AN EVIDENCE TO PROVE THAT THE AMOUNT IS NOT AN UNEXPLA INED CASH CREDIT. FURTHER THE ASSESSEES FATHER ALSO GIVEN AN AMOUNT OF ` 1,58,500/- SUPPORTED BY AFFIDAVIT AND OTHER DOCUMEN TS. THESE DOCUMENTS PRIMA FACIE SUPPORT THE CONTENTIONS OF TH E ASSESSEE. THE SAME CANNOT BE REJECTED WITHOUT SUBJECTING IT TO VE RIFICATION. IN THE INTEREST OF JUSTICE, WE ARE OF THE OPINION THAT THE ISSUE OF CASH CREDIT OF ` 2,65,000/- AND ` 1,58,500/- CONTESTED IN GROUND NO.1 AND 2 SHOULD BE RESTORED TO THE FILE OF THE ASSESSING OFF ICER WHO SHOULD CONSIDER THE EVIDENCE FILED BEFORE THE CIT (A) AND MAKE NECESSARY ENQUIRIES TO DECIDE THE ISSUE AFRESH. ACCORDINGLY, THE ORDERS OF THE ITA NO 3957 OF 2009 SHARAD S PATIL MUMBAI PAGE 3 OF 3 ASSESSING OFFICER AND THE CIT (A) ON THIS ISSUE ARE SET ASIDE AND THE MATTER IS RESTORED TO THE FILE OF THE ASSESSING OFF ICER FOR FRESH CONSIDERATION IN ACCORDANCE WITH THE LAW. 6. THE ASSESSEE RAISED GROUND NO.3 PERTAINING TO DISAL LOWANCE OF INTEREST OF ` 33,645/- ON HOUSE LOAN WHICH WAS NOT PRESSED DURING THE COURSE OF APPEAL HEARING. ACCORDINGLY GR OUND NO.3 IS TREATED AS WITHDRAWN. 7. IN THE RESULT, ASSESSEES APPEAL IS ALLOWED FOR STA TISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 30 TH NOVEMBER 2011. SD/- SD/- (D.K. AGARWAL) (B. RAMAKOTAIAH) JUDICIAL MEMBER ACCOUNTANT MEMBER VNODAN/SPS MUMBAI, DATED 30 TH NOVEMBER, 2011. COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CONCERNED CIT(A) 4. THE CONCERNED CIT 5. THE DR, J BENCH, ITAT, MUMBAI BY ORDER ASSISTANT REGISTRAR INCOME TAX APPELLATE TRIBUNAL, MUMBAI BENCHES, MUMBAI