ITO 12(1)(1), MUMBAI V. CONCORD CHEMICALS, MUMBAI

ITA 4735/MUM/2011

• Counselvise Citation: 473519914 RSA 2011
• Duration Of Justice: 3 year(s) 7 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-01-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Next Hearing Date: 29-12-2014
• Assessment Year: 2007-2008
• Appeal Filed On: 13-06-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PREMANAND J
• Keywords: Peak credit
• Section: 68

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, MUMBAI BEFORE HONBLE S/SHRI H.L. KARWA, PRESIDENT AND B. R.BASKARAN (AM) . . , . . , ./ I.T.A. NO.4735/MUM/2011 ( / ASSESSMENT YEAR :2007-08) INCOME TAX OFFICER 12(1)1), ROOM NO.115, AAYAKAR BHAVAN, M.K.ROAD, MUMBAI-400020 / VS. CONCORD CHEMICALS, 28 ESPLANDE BLDG, 3 RD FLOOR, ABOVE VITHAL BHEPARI, FORT, MUMBAI-400001 ( / APPELLANT) .. ( ! / RESPONDENT) ./ #$ ./ PAN/GIRNO.:AAAFC3155M % / APPELLANT BY : SHRI PREMANAND J ! & % / RESPONDENT BY NONE ' ( & ) * / DATE OF HEARING :29.12.2014 +, & ) * /DATE OF PRONOUNCEMENT : 16.01.2015 / O R D E R PER B.R.BASKARAN, ACCOUNTANT MEMBER: THE REVENUE HAS FILED THIS APPEAL CHALLENGING THE O RDER 18-03-2011 PASSED BY LD CIT(A)-23, MUMBAI AND IT RELATES TO TH E ASSESSMENT YEAR 2007-08. THE REVENUE IS AGGRIEVED BY THE DECISION OF LD CIT(A) IN DELETING THE ASSESSMENT OF UNEXPLAINED CASH DEPOSIT S OF RS.21,43,060/- MADE U/S 68 OF THE ACT. 2. NONE APPEARED ON BEHALF OF THE ASSESSEE THOU GH THE NOTICE WAS SERVED THROUGH THE DEPARTMENT BY AFFIXTURE. HENCE WE PROCEED TO DISPOSE OF THE APPEAL EX-PARTE, WITHOUT THE PRESENCE OF THE ASSESSEE. 4735/2011 2 3. WE HEARD LD D.R AND PERUSED THE RECORD. THE ASSESSEE IS A TRADER IN CHEMICALS, IRON AND STEEL AND PHAR. WE NOTICE T HAT THE PRESENT ASSESSMENT HAS BEEN IN THE HANDS OF THE PARTNERSHIP FIRM. IN THE TITLE ALSO, THE STATUS OF THE ASSESSEE IS MENTIONED AS F IRM. HOWEVER, IN THE BODY OF ASSESSMENT ORDER, THE ASSESSING OFFICER HAS NOTED THAT THE ASSESSEE IS A PROPRIETARY FIRM, WHICH APPEARS TO BE CONTRADICTORY. THE FACTS RELATING TO THE IMPUGNED ADDITION ARE THAT, D URING THE COURSE OF ASSESSMENT PROCEEDINGS, THE AO NOTICED THAT THE ASS ESSEE HAS MADE CASH DEPOSITS IN HIS BANK ACCOUNT TO THE TUNE OF ABOUT 9 3.26 LAKHS. THE ASSESSEE DID NOT FURNISH ANY DETAILS RELATING THERE TO. HENCE THE AO ARRIVED AT PEAK CREDIT BALANCE OF RS.21,43,060/- AS ON 17.0 8.2006 AND ASSESSED THE SAME U/S 68 OF THE ACT. 4. IN THE APPELLATE PROCEEDINGS, THE ASSESSEE SUBM ITTED THAT THE PARTNERSHIP FIRM ITSELF WAS FORMED FROM 1.1.2007 ON LY CONSISTING OF SHRI M.P.HUSSAINI AND SHRI SANJAY Y ADALJA AS PARTNERS. IT WAS FURTHER SUBMITTED THAT THE BUSINESS WAS CARRIED ON AS PROPR IETARY CONCERN UPTO 31.12.2006 BY SHRI M.P. HUSSAINI. ACCORDINGLY HE S UBMITTED THAT THE PEAK CREDIT BALANCE AS ON 17-08-2006 RELATES TO THE PRIO R PERIOD DURING WHICH THE BUSINESS WAS RUN AS PROPRIETARY CONCERN. BY PL ACING RELIANCE ON THE PROVISIONS OF SEC. 170(1), IT WAS SUBMITTED THAT TH E INCOME FOR THE PERIOD FROM 1.4.2006 TO 31.12.2006 COULD NOT BE ASSESSED I N THE HANDS OF THE PARTNERSHIP FIRM. THE LD CIT(A) ACCEPTED THE CONTE NTIONS OF THE ASSESSEE AND ACCORDINGLY DIRECTED THE ASSESSING OFFICER TO F RAME SEPARATE ASSESSMENT, VIZ., IN THE HANDS OF SHRI M.P. HUSSAIN I FOR THE INCOME GENERATED DURING 1.4.2006 TO 31.12.2006 AND IN THE HANDS OF THE PRESENT ASSESSEE FOR THE PERIOD FROM 1.1.2007 TO 31.3.2007. 5. AT THE TIME OF HEARING, THOUGH THE LD D.R CHALL ENGED THE ORDER OF LD CIT(A), YET HE COULD NOT POINT OUT ANY INFIRMITY IN THE ORDER OF LD CIT(A). 4735/2011 3 WE ALSO NOTICE THAT THE LD CIT(A) HAS ISSUED DIRECT IONS IN TERMS OF SEC. 170(1) OF THE ACT. HENCE, WE DO NOT FIND ANY REASO N TO INTERFERE WITH HIS ORDER. 6. IN THE RESULT, THE APPEAL FILED BY THE REVENUE IS DISMISSED. THE ABOVE ORDER WAS PRONOUNCED IN THE OPEN COURT ON 16TH JAN,2015. +, ' - ./ 0 1 16 TH JAN 2015 , & 2( 3 SD SD ( . . / H.L. KARWA) ( . . , / B.R. BASKARAN ) / PRESIDENT / ACCOUNTANT MEMBER . ' ( MUMBAI: TH JAN, 2015. . . ./ SRL , SR. PS ! ' / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. ! / THE RESPONDENT. 3. ' 7) ( ) / THE CIT(A)- CONCERNED 4. ' 7) / CIT CONCERNED 5. 6. 89 2 ): , * : , . ' ( / DR, ITAT, MUMBAI CONCERNED 2 ; < ( / GUARD FILE. = ' / BY ORDER, TRUE COPY > # (ASSTT. REGISTRAR) * : , . ' ( /ITAT, MUMBAI