SHRI VIJAY GOYAL, Indore V. THE ITO 5(1), Indore

ITA 471/IND/2015

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 99223 (ITAT-INDORE)
• Duration Of Justice: 5 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-12-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2007-2008
• Appeal Filed On: 23-06-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R A VERMA
• Assessee Lawyers: N D PATWA
• Keywords: Business income; Revision of order; Peak credit

Judgement Text

SHRI VIJAY GOYAL ITA NO. 471/IND/2015 1 IN THE INCOME TAX APPELLATE TRIBUNAL INDORE BENCH, INDORE BEFORE SHRI D.T. GARASIA, HONBLE JUDICIAL MEMBER AND SHRI B.C. MEENA, HONBLE ACCOUNTANT MEMBER ITA NO. 471/IND/2015 A.Y.2007-08 SHRI VIJAY GOYAL INDORE ::: APPELLANT VS INCOME TAX OFFICER 5(1) INDORE ::: RESPONDENT APPELLANT BY SHRI ASHISH GOYAL AND SHRI N.D. PATWA RESPONDENT BY SHRI R.A. VERMA DATE OF HEARING 19.11.2015 DATE OF PRONOUNCEMENT 2 1 .12.2015 O R D E R PER SHRI B.C. MEENA, AM THIS APPEAL FILED BY THE ASSESSEE EMANATES FROM THE ORDER OF THE LEARNED CIT(A)-II, INDORE, DATED 31. 3.2015. SHRI VIJAY GOYAL ITA NO. 471/IND/2015 2 2. THE ASSESSEE HAS TAKEN THE ONLY GROUND THAT THE LEARNED CIT(A) WAS NOT JUSTIFIED IN CONFIRMING THE ADD ITION OF RS. 6,85,832/- BEING PEAK CREDIT OF SAVINGS BANK ACCOUNT. 3. IN THIS CASE THE ORIGINAL ASSESSMENT WAS COMPLETED U/S143(3) OF THE ACT ON 31.12.2009 WHEREIN THE ASSE SSING OFFICER MADE AN ADDITION OF RS.6,85,832/- AS PEAK CREDI T OF SAVING BANK ACCOUNT IN WHICH UNDISCLOSED DEPOSITS WER E TREATED AS BUSINESS TRANSACTIONS. FURTHER THE ASSESSING OFFICER MADE AN ADDITION OF RS.12,37,910/- ON ACCOUNT OF NET PROFIT CALCULATED @ 5% OF TOTAL DEPOSITS IN BANK ACCOUNTS TREATING THE SAME AS TURNOVER OF BUSINESS. THEREAFTER, THE ASSESSEE MOVED AN APPLICATION U/S 264 OF THE ACT TO THE CIT. THE LD. CIT IN HIS ORDER CONFIR MED THE ACTION OF THE ASSESSING OFFICER. AGAINST THE ABOVE, TH E ASSESSEE PREFERRED FIRST APPEAL BEFORE THE LEARNED CIT (A) SHRI VIJAY GOYAL ITA NO. 471/IND/2015 3 WHO CONFIRMED THE ADDITION IN QUESTION. NOW THE ASSESS EE IS IN APPEAL BEFORE US. 4. THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE AUTHORITIES BELOW WERE NOT JUSTIFIED IN MAKING AND CONFIRMING THE ADDITION IN QUESTION. THE LEARNED COUN SEL FOR THE ASSESSEE ALSO CITED THE DECISION OF THE HON'B LE M.P. HIGH COURT IN THE CASE OF CIT VS. ANIL KUMAR JAIN; 23 ITJ 268 WHEREIN IT WAS HELD THAT NO ADDITION FOR PEAK IS T O BE MADE WHEN TRANSACTIONS IN BANK ACCOUNT ARE TAKEN AS TURNOVER AS SALE AND PURCHASE OF THE ASSESSEE. HE, THEREFORE, SUBMITTED THAT NO ADDITION IS CALLED FOR. 5. ON THE OTHER HAND, THE LEARNED DR SUPPORTED THE ORDERS OF THE AUTHORITIES BELOW. 6. AFTER HEARING BOTH THE SIDES, WE ARE OF THE VIEW T HAT IN VIEW OF THE DECISION OF THE HON'BLE M.P. HIGH COURT IN THE CASE OF CIT VS. ANIL KUMAR JAIN (SUPRA), THE AUTHORITIES SHRI VIJAY GOYAL ITA NO. 471/IND/2015 4 BELOW WERE NOT JUSTIFIED IN MAKING AND CONFIRMING THE ADDITION TOWARDS PEAK CREDIT OF RS.6,85,832/- WHEN THE TRANSACTIONS IN THE ACCOUNT ARE TAKEN AS SALE AND PURCHASER OF THE ASSESSEE AND INCOME IS ESTIMATED ON TH E TURNOVER BY ESTIMATING NET PROFIT ON THE SAME. WE DEL ETE THE SAME. 7. IN THE RESULT, THE APPEAL OF THE ASSESSEE STANDS ALLOWED. PRONOUNCED IN OPEN COURT ON 21 ST DECEMBER, 2015 SD/- SD/- (D.T. GARASIA) (B.C. MEENA) JUDICIAL MEMBER ACCOUNTANT MEMBER 21 ST DECEMBER, 2015 DN/- SHRI VIJAY GOYAL ITA NO. 471/IND/2015 5