ITO WD 2(3), KALYAN V. NARESH ATMARAM RAJWANI, ULHASNAGAR

ITA 3996/MUM/2013

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 3801 (ITAT-MUMBAI)
• Duration Of Justice: 2 year(s) 11 month(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-05-2016
• Appeal Filed By: Department
• Bench Allotted: B
• Next Hearing Date: 09-09-2015
• Assessment Year: 2009-2010
• Appeal Filed On: 20-05-2013
• Court: TRIBUNAL
• Department Lawyers: RAJESHWARI MOTWANI
• Section: 68; 144

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, MUMBAI BEFORE S/SHRI B.R. BASKARAN (AM) & AMIT SHUKLA (JM) I.T.A. NO. 3996 /MUM/ 2013 (ASSESSMENT YEAR 2009 - 10 ) ITO WARD 2(3) 2 ND FLOOR MOHAN PLAZA WAYALE NAGAR KHADAKPADA KALYAN WEST MUMBAI - 421301. VS. SHRI NARESH ATMARAM RAJWANI SHOP NO. 4 METRO MARKET 1 ST FLOOR. I.G. GARDEN ULHASNAGAR PIN - 421 003. ( APPELLANT ) ( RESPONDENT ) PAN NO. AEMPR4495N ASSESSEE BY NONE DEPARTMENT BY SMT. RAJESHWARI MOTWANI DATE OF HEARING 5 .5 . 201 6 DATE OF PRONOUNC EMENT 5 . 5 . 201 6 O R D E R PER B.R. BASKARAN, A M : - THE APPEAL IS FILED BY THE REVENUE IS DIRECTED AGAINST THE ORDER DATED 25.1.2013 PASSED BY LEARNED CIT(A) - 2, THANE FOR A.Y. 2009 - 10 WHEREIN HE REDUCED THE ADDITION MADE BY THE ASSESSING OFFICER U/S. 68 OF THE ACT FROM RS. 40.99 LAKHS TO RS. 1.17 LAKHS. 2. NONE APPEARED ON BEHALF OF THE ASSESSEE EVEN THOUGH THE NOTICE W AS SENT THROUGH LEARNED DEPARTMENTAL REPRESENTATIVE BY WAY OF REGISTERED POST ON AN EARLIER OCCASION . HENCE, WE PROCEED TO DISPOSE OF THE APPEAL EX - PARTE, WITHOUT PRESENCE OF THE ASSESSEE. 3. LEARNED DEPARTMENTAL REPRESENTATIVE SUBMITTED THAT THE ASSESSEE HAD MADE CASH DEPOSIT S AGGREGATING TO RS. 40.99 LAKHS IN HIS SAVING BANK ACCOUNT. SINCE THE ASSESSEE DID NOT COOPERATE WITH THE AS SESSING OFFICER, ASSESSMENT ORDER WAS PASSED U/S. 144 OF THE ACT TREATING AGGREGATE AMOUNT OF DEPOSIT AS SHRI NARESH ATMARAM RAJWANI 2 INCOME OF THE ASSESSEE. THE AO ALSO ASSESSED THE SUNDRY CREDITORS AND LOAN CREDITORS AS INCOME OF THE ASSESSEE U/S 68 OF THE ACT. BEFORE LEARNED CIT( A) , THE ASSESSEE DID NOT APPEAR , BUT THE LEARNED CIT(A) GAVE TELESCOPING BENEFIT OF SUNDRY CREDITORS BALANCE AND UNSECURED LOAN BALANCE ASSESSED BY THE ASSESSING OFFICER U/S. 68 OF THE ACT. LEARNED DEPARTMENTAL REPRESENTATIVE SUBMITTED THAT THE ASSESSEE HA S NOT SHOWED NEXUS BETWEEN THE SUNDRY/LOAN CREDITORS AND BANK DEPOSITS AND HENCE LEARNED CIT(A) WAS NO T JUSTIFIED IN GIVING TELESCOPING BENEFIT WITHOUT EXAMINING THE NEXUS. 4. WE FIND MERIT IN THE CONTENTIONS OF LEARNED DEPARTMENTAL REPRESENTATIVE. DEPO SITS MADE INTO BANK ACCOUNT CAN BE TREATED AS EXPLAINED ONLY IF THE ASSESSEE IS IN A POSITION TO ESTABLISH THE NEXUS BETWEEN RECEIPT OF SUNDRY CREDITORS/ LOAN CREDITORS AND DEPOSITS MADE INTO THE BANK . WE NOTICE THAT LEARNED CIT(A) HAS GRANTED TELESCOPI NG BENEFIT WITHOUT EXAMINING THE F ACTUAL DETAILS. ACCORDINGLY, WE ARE OF THE VIEW THAT THIS ISSUE REQUIRES FRESH EXAMINATION AT THE END OF THE LD CIT(A) . ACCORDINGLY, WE SET ASIDE TH E ORDER OF LEARNED CIT(A) AND RESTORE THIS ISSUE TO HIS FILE WITH THE DIREC TION TO EXAMINE THIS ISSUE AFRESH. THE ASSESSEE IS ALSO DIRECTED TO COOPERATE WITH LEARNED CIT(A) BY FURNISHING VARIOUS INFORMATION AND EXPLANATION THAT MAY BE REQUIRED FOR THE PURPOSE. LEARNED CIT(A), IF SO ADVISED, MAY SEEK A REMAND REPORT FROM THE ASSES SING OFFICER IN RESPECT OF THE EVIDENCE, IF ANY, FILED BY THE ASSESSEE. AFTER CONFRONTING THE SAME WITH THE ASSESSEE, THE LD CIT(A) MAY TAKE APPROPRIATE DECISION IN ACCORDANCE WITH THE LAW. 5. IN THE RESU LT, APPEAL FILED BY THE REVENUE IS TREATED AS ALL OWED FOR STATISTICAL PURPOSES. ORDER HAS BEEN PRONOU NCED IN THE OPEN COURT ON 5 .5 .2016 . SD/ - SD/ - (AMIT SHUKLA ) (B.R.BASKARAN ) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI ; DATED : 5 / 5 /20 1 6 SHRI NARESH ATMARAM RAJWANI 3 COPY OF THE ORDER FORWARDED TO : 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT(A) 4. CIT 5. DR, ITAT, MUMBAI 6. GUARD FILE. BY ORDER, //TRUE COPY// ( DY./ASSTT. REGISTRAR) ITAT, MUMBAI PS