Shri Paresh R,Thakkar, Ahmedabad V. The Income tax Officer,Ward-9(2), Ahmedabad

ITA 41/AHD/2012

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 9639 (ITAT-AHMEDABAD)
• Duration Of Justice: 4 year(s) 1 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-02-2016
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: C
• Next Hearing Date: 15-02-2016
• Assessment Year: 2008-2009
• Appeal Filed On: 05-01-2012
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: MRS USHA SHROTE
• Assessee Lawyers: ANIL BR AHMKSTRIYA
• Keywords: Peak credit
• Section: 143(3); 68

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD C BENCH BEFORE: S H RI N.K. BILLAIYA , ACCOUNTANT MEMBER AND SHR I S. S. GODARA , JUDICIAL MEMBER SHRI PARESH R. THAKKAR, AO - 4, POONAM PARINA APARTMENT VASNA BARRAGE ROAD, VASNA, AHMEDABAD - 3800 0 7 PAN AERPT7246J (APPELLANT) VS THE INCOME TAX OFFICER, WARD - 9(2), AHMEDABAD (RESPONDENT) ASSESSEE BY : S H RI ANIL BR AHMKSTRIYA, A. R. REVENUE BY: MRS USHA SHROTE, SR. D .R. DATE OF HEARING : 15 - 02 - 2 016 DATE OF PRONOUNCEMENT : 18 - 02 - 2 016 / ORDER P ER : S. S. GODARA , JUDI CIAL MEMBER : - THIS ASSESSEE S APPEAL FOR A.Y. 2008 - 09 , AR IS ES FROM ORDER OF THE CIT(A) - XVI, AHMEDABAD DATED 14 - 11 - 2011 IN APPEAL NO. CIT(A) - XVI/ITO/WD. 10(1)/679/10 - 11 , IN PROCEEDINGS UNDER SECTION 143(3) OF THE INCOME TAX ACT, 1961; IN SHORT THE ACT . I T A NO . 41 / A HD/20 12 A S SESSMENT YEAR 200 8 - 09 I.T.A NO. 41 /AHD/20 12 A.Y. 2008 - 09 PAGE NO SHRI PARESH R. THAKK A R VS. ITO 2 2 . THE ASSESSEE S SOLE SUBSTANTIVE GROUND CHALLENGES SECTION 68 ADDITION OF CASH DEPOSITS OF RS. 14,93,000/ - MADE BY THE ASSESSING OFFICER IN ORDER DATED 30 - 12 - 2010 AND AFFIRMED IN THE LOWER APPELLATE PROCEEDINGS. FACTS OF THE CASE ARE IN A VERY NARROW COMPASS. THE ASSESSING OFFICER RECEIVED AN AIR INFORMA TION IN RESPECT OF CASH DEPOSIT IN ASSESSEE S BANK ACCOUNT WITH ICICI BANK AMOUNTING TO RS. 14,93,000/ - . HE WOULD NOTICE THAT SOME DEPOSIT OF RS. 4,43,000/ - WERE MADE ON 29 - 12 - 2007. A CHEQUE OF RS. 4 ,41,084/ - WAS CLEARED IN FAVOUR OF ANOTHER ENTITY ON THE VERY DAY. THIS WAS FOLLOWED BY SOME MEAGER CASH WITHDRAWAL ON 31 - 12 - 2007. THE SAME DAY SAW OTHER CASH DEPOSIT OF RS. 2,50,000/ - FOLLOWED BY A CHEQUE OF RS. 2,50,000/ - ISSUED TO THE VERY EARLIER ENT ITY. THE ASSESSING OFFICER TOOK COGNIZANCE OF SIMILAR OTHER TRANSITIONS. HE OPINED THAT THERE WERE INSIGNI FI CANT CASH WITHDRAWALS FROM 29 - 12 - 20 07 TO 31 - 12 - 2007 . HE REJECTED ASSESSEE S PEA K CREDIT PLEA AND HELD THAT THERE WAS NO PROOF TO DEMONSTRATE A ST REAMLINING PROCESS OF WITHDRAWALS AND CREDITS. ALL THIS DISCUSSION RESULTED IN ADDITION OF THE ENTIRE CASH DEPOSIT OF RS. 14,93,000/ - . THE CIT(A) CONFIRMS ASSESSING OFFICER S ACTION. THIS LEAVES THE ASSESSEE AGGRIEVED. 3. WE HAVE HEARD BOTH THE PARTIES . THE ASSESSEE ARGUES AGAINST CORRECTNESS OF THE IMPUGNED SECTION 68 ADDITION FOR SOME TIME. HOWEVER, HE MAKES AN ALTERNATIVE PLEA THAT BOTH THE LOWER AUTHORITIES HAVE NOT APPRECIATED HIS AGREEMENT IN SUPPORT OF PEAK CREDIT AMOUNT ADDITION IN CORRECT PER SPECTIVE. LD. AUTHORIZED REPRESENTATIVE DOES NOT WISH TO PRESS HIS MAIN ARGUMENT SUBJECT TO THE CONDITION THAT THE I.T.A NO. 41 /AHD/20 12 A.Y. 2008 - 09 PAGE NO SHRI PARESH R. THAKK A R VS. ITO 3 ASSESSING OFFICER EXAMINES ASSESSEE S PEAK CREDIT PLEA ALONG WITH A NET PROFIT @ 5%. THE REVENUE IS UNABLE TO TAKE US TO RELEVANT CONTENTS IN THE CASE FILE DEMONSTRATING THAT THE ASSESSING AUTHORITY HAS EXAMINED EACH AND EVERY DEPOSIT AND WITHDRAWAL ENTRY IN ASSESSEE S BANK ACCOUNT MAINTAINED WITH ICICI BANK. WE ACCEPT ASSESSEE S ALTERNATIVE PRAYER AND DIRECT THE ASSESSING OFFICER TO RE - EXAM INE ASSESSEE S PEAK CREDIT PLEA AS PER LAW AS INDICATED HEREINABOVE. THE ASSESSEE S SOLE SUBSTANTIVE GROUND IS PARTLY ALLOWED FOR STATISTICAL PURPOSES. 4. THIS ASSESSEE S APPEAL IS PARTLY ALLOWED FOR STATIS TI CAL PURPOSES. ORDER PR ONOUNCE D IN THE OPEN C OURT ON 18 - 02 - 201 6 SD/ - SD/ - ( N.K. BILLAIYA ) ( S. S. GODARA ) ACCOUNTANT MEMBER JUDICIAL MEMBER AHMEDABAD : DATED 18 /02 /2016 AK / COPY OF ORDER FORWARDED TO: - 1. ASSESSEE 2. REVENUE 3. CONCERNED CIT 4. CIT (A) 5. DR, ITAT, AHMEDABAD 6. GUARD FILE. BY ORDER/ , / ,