Shri Maqbul Hussain Saiyed, Ahmedabad V. The Income tax Officer,Ward-9(4), Ahmedabad

ITA 468/AHD/2012

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 0849 (ITAT-AHMEDABAD)
• Duration Of Justice: 4 year(s) 5 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-08-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Next Hearing Date: 11-08-2016
• Assessment Year: 2007-2008
• Appeal Filed On: 21-02-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: TUSHAR H VASA
• Section: 143(3); 234B; 147

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH, AHMEDABAD BEFORE SHRI RAJPAL YADAV, JUDICIAL MEMBER AND SHRI MANISH BORAD, ACCOUNTANT MEMBER ./ ITA.NO.468/AHD/2012 / ASSTT. YEAR: 2007-2008 SHRI MAQBUL HUSSAIN A SAIYED PROP. M/S.ERECON, 9E-USHAKIRAN OPP: KHANPUR GATE KHANPUR, AHMEDABAD PIN 380 01. PAN : ALLPS 0800 N VS ITO, WARD-9(4) AHMEDABAD. ! / (APPELLANT) '# ! / (RESPONDENT) ASSESSEE BY : SHRI TUSHAR H. VASA, AR REVENUE BY : SHRI SANJAY KUMAR, SR.DR / DATE OF HEARING : 11/08/2016 / DATE OF PRONOUNCEMENT: 12/08/2016 $%/ O R D E R PER RAJPAL YADAV, JUDICIAL MEMBER ASSESSEE IS IN APPEAL AGAINST THE ORDER OF THE LD.C IT(A)-XV, AHMEDABAD DATED 30.11.2011 FOR THE ASTT.YEAR 2007-0 8. 2. THE GROUNDS OF APPEAL TAKEN BY THE ASSESSEE ARE NOT IN CONSONANCE WITH THE RULE 8 OF THE INCOME TAX (APPELLATE TRIBUNAL) R ULES, 1963 - THEY ARE DESCRIPTIVE AND ARGUMENTATIVE IN NATURE. IN BRIEF, THE GRIEVANCE OF THE ASSESSEE IS THAT THEOLD.CIT(A) HAS ERRED IN CONFIRM ING THE ADDITION OF RS.16,60,000/-. ITA NO.468/AHD/2012 2 3. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE HA S FILED HIS RETURN OF INCOME ON 15.10.2007 DECLARING TOTAL INCOME AT RS.2 ,33,310/-. THE CASE OF THE ASSESSEE WAS SELECTED FOR SCRUTINY ASSESSMENT, AND NOTICE UNDER SECTION 143(2) WAS ISSUED ON 21.7.2008, WHICH WAS DULY SERV ED UPON THE ASSESSEE. THE LD.AO GOT INFORMATION FROM ANNUAL INFORMATION R EPORT WING. A PERUSAL OF THE INFORMATION REVEALED THAT THE ASSESSEE HAS M ADE DEPOSITS OF RS.16,60,000/- BY CASH AND RS.9,41,377/- BY CHEQUE IN SAVING BANK ACCOUNT NO.1266 MAINTAINED WITH BOMBAY MERCANTILE CO-OP. BA NK, KHANPUR BRANCH, AHMEDABAD. ACCORDING TO THE AO, THE ASSESSEE HAS F AILED TO EXPLAIN THE SOURCE OF DEPOSITS, AND THEREFORE, HE MADE ADDITION OF RS.16,60,000/-. APPEAL TO THE LD.CIT(A) DID NOT BRING ANY RELIEF TO THE AS SESSEE. 4. THE LD.COUNSEL, AT THE VERY OUTSET, SUBMITTED TH AT APART FROM THIS INFORMATION, THE AIR WING HAS TRANSMITTED OTHER INF ORMATION EXHIBITING THE FACT THAT THE ASSESSEE WAS HAVING BANK ACCOUNT WITH BANK OF BARODA, ICICI BANK, HDFC BANK AND STANDARD CHARTERED BANK. HE MA DE DEPOSITS OF RS.75,46,249/- IN THESE ACCOUNTS, WHEREAS TOTAL TUR NOVER OF THE ASSESSEE WAS OF RS.21,44,493/-. THE LD.AO HAS REOPENED THE ASS ESSMENT ON THE BASIS OF THIS INFORMATION. HE PLACED ON RECORD COPY OF THE REASONS RECORDED BY THE AO. THE ASSESSEE HAS EXPLAINED ALL THE DETAILS, AN D THE SOURCES OF THE DEPOSITS. THE AO DID NOT PASS THE RE-ASSESSMENT OR DER, RATHER, DROPPED THE RE- ASSESSMENT PROCEEDINGS. WITH REGARD TO DEPOSITS MA DE IN ACCOUNT NO.1266 MAINTAINED WITH BOMBAY MERCANTILE COOPERATIVE BANK, THE ASSESSEE HAS GIVEN EXPLANATION AND SOURCE OF WITHDRAWAL FROM OTH ER BANKS. SOMEHOW THESE DETAILS HAVE NOT BEEN DISCUSSED ELABORATELY. HE PRAYED THAT THE ORDERS BE SET ASIDE. ON THE OTHER HAND, THE LD.DR CONTEND ED THAT THE ASSESSEE SHOULD HAVE GIVEN EXPLANATION BEFORE THE AO. ITA NO.468/AHD/2012 3 5. WE HAVE CONSIDERED RIVAL CONTENTIONS AND GONE TH ROUGH THE RECORD CAREFULLY. THE REASONS FOR OPENING OF THE ASSESSME NT HAVE BEEN PLACED ON RECORD. THEY READ AS UNDER: TO, SHRI MAQBAL HUSSAIN A. SAIYED PROP. OF M/S. ERECON 9-E, USHA KIRAN, OPP. KHANPUR GATE, KHANPUR, AHMEDABAD SIR, SUB.: INCOME-TAX ASSESSMENT PROCEEDINGS IN YOUR CASE FOR A.Y. 2007-2008 - REGARDING....... PLEASE REFER YOUR LETTER DTD. 12.12.2012, THE REASO N FOR REOPENING AND COPY REASONS RECORDED. 2. IN THIS REGARD, THE REASON RECORDED FOR REOPENIN G ASSESSMENT ARE AS UNDER :- ''THE ASSESSEE HAD FILED HIS RETURN OF INCOME FOR A .Y. 2007- 2008 ON 15/10/2007 SHOWING TOTAL INCOME OF RS. 2,33 ,310/-. IN THIS CASE ASSESSMENT WAS FINALIZED U/S. 143(3) O F THE I. T. ACT, ON 15/12/2009 COMPUTING TOTAL OF RS.18,93,310/ -. ON VERIFICATION OF THE DETAILS FILED, IT IS NOTICED TH AT THE ASSESSEE HAS NOT FURNISHED THE DETAILS IN RESPECT OF THE BAN K ACCOUNT OPERATED BY HIM IN AS MUCH AS THE ASSESSEE HAS NOT DISCLOSED FOUR BANK ACCOUNTS NAMELY (1) BANK OF BARODA, (2) I CICI BANK, (3) STANDARD CHARTERED BANK AND (4) HDFC BANK . THE DETAILS OF BANK STATEMENT ETC. OF THESE BANK AC COUNTS WERE FILED BY THE ASSESSEE AFTER THE COMPLETION OF ASSESSMENT FOR A.Y. 2007-2008. ON VERIFICATION OF THESE BANK A CCOUNTS, IT IS NOTICED THAT THE ASSESSEE HAS MADE DEPOSITS O F RS.75,46,249/- AS AGAINST THE TOTAL TURNOVER OF RS.21,44,493/-. I HAVE THEREFORE, EVERY REASON TO B ELIEVE THAT FOR THE FAILURE ON THE PART OF THE ASSESSEE TO DISC LOSE FULLY AND TRULY ALL MATERIAL FACTS NECESSARY FOR HIS ASSE SSMENT, THE INCOME CHARGEABLE TO TAX HAS ESCAPED ASSESSMENT WIT HIN THE MEANING OF SECTION 147 OF THE I. T. ACT.' SD/- YOURS FAITHFULLY, ITA NO.468/AHD/2012 4 [SEAL] [YASHPAL SINGH] INCOME TAX OFFICER, WARD 9(2), AHMEDABAD 6. A PERUSAL OF THE REASONS WOULD INDICATE THAT THE ASSESSEE HAS A NUMBER OF ACCOUNTS, WHEREIN, RS.75,46,249/- ALLEGED TO HAV E BEEN DEPOSITED ON DIFFERENT DATES. THE ASSESSEE HAS RECONCILED HIS D EPOSITS AND NO ADDITION HAS BEEN MADE. A PERUSAL OF THE ASSESSMENT ORDER WOULD INDICATE THAT THE DETAILS HAVE NOT BEEN DISCUSSED ELABORATELY. ONLY REFERENC E OF WITHDRAWALS AMOUNTING TO RS.5,72,624/- HAS BEEN MADE. CONSIDER ING THIS SUBSEQUENT DEVELOPMENT AND REOPENING OF THE ASSESSMENT, WE DEE M IT APPROPRIATE THAT ENDS OF JUSTICE WILL BE MET IF ONE MORE OPPORTUNITY IS GIVEN TO THE ASSESSEE FOR EXPLAINING HIS POSITION WITH REGARD TO DEPOSITS IN BANK ACCOUNT NO.1266 WITH BOMBAY MERCANTILE COOPERATIVE BANK. WE ALLOW THE A PPEAL OF THE ASSESSEE AND SET ASIDE BOTH THE ORDERS AND RESTORE ALL THE I SSUES TO THE FILE OF THE AO FOR RE-ADJUDICATION. AS FAR AS CHARGING OF INTEREST UNDER SECTION 234A A ND 234B ARE CONCERNED, IT IS CONSEQUENTIAL IN NATURE. IN VIEW OF THE ABOVE DISCUSSION, APPEAL OF THE ASSE SSEE IS ALLOWED FOR STATISTICAL PURPOSE. 7. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSE. ORDER PRONOUNCED IN THE COURT ON 12 TH AUGUST, 2016 AT AHMEDABAD. SD/- SD/- (MANISH BORAD) ACCOUNTANTN MEMBER (RAJPAL YADAV) JUDICIAL MEMBER AHMEDABAD; DATED 12/08/2016