JITESH H. MEHTA, MUMBAI V. ITO 25(3)(2), MUMBAI

ITA 4129/MUM/2011

• Counselvise Citation: [2012] 119 COUNSELVISE.COM (IT) 8446 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 5 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-10-2012
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: J
• Next Hearing Date: 23-10-2012
• Assessment Year: 2006-2007
• Appeal Filed On: 19-05-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAJARSHI DWIVEDI
• Assessee Lawyers: S V NAVALKAR
• Keywords: Peak credit
• Section: 144

Judgement Text

, , , , , IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES J, MUMBAI .. , ! ' # , $ ' , % BEFORE SHRI R.S.SYAL, AM AND SHRI VIVEK VARMA, JM ./ ITA NO.4129/MUM/2011 ( $' ( $' ( $' ( $' ( / / / / ASSESSMENT YEAR : 2006-2007) SHRI JITESH H MEHTA A-304, ARPIT ENCLAVE, MAHAVIR NAGAR KANDIVALI (WEST) MUMBAI 400 067. PAN : AEDPM7039L. THE INCOME TAX OFFICER WARD 25(3)(2) MUMBAI. ( )* / // / APPELLANT) ' ' ' ' / VS. ( +,)*/ RESPONDENT) )* - -- - . . . . / APPELLANT BY : SHRI S.V.NAVALKAR +,)* - . - . - . - . / RESPONDENT BY : SHRI RAJARSHI DWIVEDI ' - /! / / / / DATE OF HEARING : 23.10.2012 01( - /! / DATE OF PRONOUNCEMENT : 23.10.2012 '2 '2 '2 '2 / / / / O R D E R PER R.S.SYAL (AM) : THIS APPEAL BY THE ASSESSEE ARISES OUT OF THE ORDER PASSED BY THE COMMISSIONER OF INCOME-TAX (APPEALS) ON 15.03.2011 IN RELATION TO THE ASSESSMENT YEAR 2006-2007. 2. THE ASSESSEE IS AGGRIEVED AGAINST THE SUSTENANCE OF ADDITION OF ` 11.81 LAKH TOWARDS BANK LOANS, ` 9.09 LAKH TOWARDS TRANSFER FROM ONE BANK ACCOUNT TO ANOTHER, ` 7.49 LAKH TOWARDS TURNOVER. THE FURTHER GRIEVANCE OF THE ASSESSEE IS THAT THE LEARNED CIT(A ) SHOULD HAVE REDUCED THE ABOVE ADDITIONS TOTALING ` 28.39 LAKH OUT OF THE CONFIRMED ITA NO.4129/MUM/2011. SHRI JITESH H.MEHTA. 2 INCOME OF ` 47.03 LAKH OR ALTERNATIVELY HE SHOULD HAVE CONSIDER ED THE AMOUNT OF PEAK CREDIT OF ` 4.23 LAKH. 3. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED T HE RELEVANT MATERIAL ON RECORD. IT IS OBSERVED THAT THE ASSESSE E FILED HIS RETURN DECLARING INCOME AT ` 1.48 LAKH. THE ASSESSING OFFICER ISSUED SEVERAL NOTICES CALLING UPON THE ASSESSEE TO PARTICIPATE IN THE ASSESSMENT PROCEEDINGS, BUT OF NO AVAIL. THE ASSESSEE FAILED T O PRODUCE BOOKS OF ACCOUNT AND THE ACCOMPANYING DOCUMENTS TO SUBSTANTI ATE HIS BUSINESS OF PROFESSIONAL CONSULTANCY. THE ASSESSEE ALSO COUL D NOT LEAD ANY EVIDENCE TO EXPLAIN THE NATURE OF CREDITS IN THE BA NK ACCOUNT. THE ASSESSING OFFICER INVOKED THE PROVISIONS OF SECTION 144 AND THEREBY ESTIMATED THE INCOME AT ` 55.27 LAKH. NO SUBSTANTIAL RELIEF WAS ALLOWED IN THE FIRST APPEAL. 4. THE LEARNED COUNSEL FOR THE ASSESSEE CONTE NDED THAT THE ASSESSEE WAS PREVENTED BY SUFFICIENT REASONS FROM N OT PUTTING HIS PRESENCE AT THE ASSESSMENT STAGE IN PROPER MANNER. IT WAS SUBMITTED THAT THE NECESSARY EVIDENCE WAS AVAILABLE WITH THE ASSESSEE TO SUBSTANTIATE THE CLAIM SO MADE IN RESPECT OF WHICH THE ADDITIONS HAVE BEEN MADE AND SUSTAINED. 5. WITHOUT GOING INTO THE MERITS OF THE CASE, W E ARE OF THE CONSIDERED OPINION THAT THE ENDS OF JUSTICE WILL ME ET ADEQUATELY IF THE IMPUGNED ORDER IS SET ASIDE AND THE MATTER IS RESTO RED TO THE FILE OF ITA NO.4129/MUM/2011. SHRI JITESH H.MEHTA. 3 A.O. WE ORDER ACCORDINGLY AND DIRECT THE A.O. TO FR AME THE ASSESSMENT AFRESH. NEEDLESS TO SAY THE ASSESSEE WIL L EXTEND FULL CO- OPERATION TO THE ASSESSING OFFICER IN THE FRESH PRO CEEDINGS. IF THE ASSESSEE FAILS TO PROVIDE THE NECESSARY DETAILS AGA IN IN THE SECOND ROUND OF PROCEEDINGS BEFORE THE A.O., THE ASSESSING AUTHORITY WILL BE AT LIBERTY TO DRAW ADVERSE INFERENCE AGAINST THE AS SESSEE. 6. IN THE RESULT, THE APPEAL IS ALLOWED FOR STATIST ICAL PURPOSES. ORDER PRONOUNCED ON THIS 23 RD DAY OF OCTOBER, 2012. '2 - 01( 3''4 1 - 5 SD/- SD/- (VIVEK VARMA) (R.S.SYAL) $ ' $ ' $ ' $ ' / JUDICIAL MEMBER ! ' ! ' ! ' ! ' / ACCOUNTANT MEMBER MUMBAI ; 3'' DATED : 23 RD OCTOBER, 2012. DEVDAS* '2 - +$/6# 7#(/ '2 - +$/6# 7#(/ '2 - +$/6# 7#(/ '2 - +$/6# 7#(// COPY OF THE ORDER FORWARDED TO : 1. )* / THE APPELLANT 2. +,)* / THE RESPONDENT. 3. 8 () / THE CIT(A)-XXXV, MUMBAI. 4. 8 / CIT 5. #;5 +$/$' , , / DR, ITAT, MUMBAI 6. 5< = / GUARD FILE. '2' '2' '2' '2' / BY ORDER, ,#/ +$/ //TRUE COPY// > > > >/ // /? ? ? ? ( DY./ASSTT. REGISTRAR) , , , , / ITAT, MUMBAI