BALWINDER HAKAMCHAND ARORA, MUMBAI V. ITO WD 20(1)(2), MUMBAI

ITA 486/MUM/2014

• Counselvise Citation: [2017] 126 COUNSELVISE.COM (IT) 9671 (ITAT-MUMBAI)
• Duration Of Justice: 3 year(s) 7 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-09-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 21-12-2016
• Assessment Year: 2009-2010
• Appeal Filed On: 21-01-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SUMAN KUMAR LD
• Assessee Lawyers: SAMEER DALAL LD
• Keywords: Opportunity of being heard
• Section: 143(3); 68

Judgement Text

ITA NO.486/M/2014 BALWINDER HAKAMCHAND ARORA ASSESSMENT YEAR 2009-10 IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, MUMBAI , , BEFORE SHRI MAHAVIR SINGH, JM AND SHRI MANOJ KUMAR AGGARWAL, AM ./I.T.A. NO. 486/MUM/2014 ( / ASSESSMENT YEAR: 2009-10) BALWINDER HAKAMCHAND ARORA 401, 4 TH FLOOR RELIABLE PRIDE OSHIWARA MUMBAI 400 102 / VS. INCOME TAX OFFICER WARD 20(1)(2) MITTAL COURT MUMBAI -400 021 ./ ./PAN/GIR NO. AAIPA-4410-C ( ! /APPELLANT ) : ( '#! / RESPONDENT ) A SSESSEE BY : SAMEER DALAL, LD.AR RE VENUE BY : SUMAN KUMAR, LD. DR / DATE OF HEARING : 05/09/2017 / DATE OF PRONOUNCEMENT : 08/09/2017 / O R D E R PER MANOJ KUMAR AGGARWAL (ACCOUNTANT MEMBER) 1. THE CAPTIONED APPEAL BY ASSESSEE ASSESSMENT YEAR [AY] 2009-10 ASSAILS THE ORDER OF THE LD. COMMISSIONER OF INCOME -TAX (APPEALS)- 32 ITA NO.486/M/2014 BALWINDER HAKAMCHAND ARORA ASSESSMENT YEAR 2009-10 2 [CIT(A)], MUMBAI DATED 11/11/2013 QUA CONFIRMATION OF CERTAIN ADDITION OF CASH CREDIT U/S 68 FOR RS.29.35 LACS. 2. FACTS LEADING TO THE SAME ARE THAT ASSESSEE BEIN G RESIDENT INDIVIDUAL ENGAGED IN THE BUSINESS OF CHEMICALS UNDER PROPRIETORSHIP CONCERN NAMELY PRIME TRADING WAS ASSESSED FOR IMPUGNED AY U/S 143(3) ON 20/12/2011 AT RS.42,61,342/- AS AGAINST R ETURNED INCOME OF RS.13,26,340/- FILED BY THE ASSESSEE ON 29/09/2009. THE SOLITARY ISSUE INVOLVED IN THE APPEAL IS ADDITION OF RS.29.35 LACS AS CASH CREDIT U/S 68. THE ASSESSEE WAS PARTNER IN TWO CONCERNS NAMELY PALAK ENTERPRISES & PRIME ENTERPRISES. 3. DURING ASSESSMENT PROCEEDINGS, IT WAS NOTED THAT THE ASSESSEE DEPOSITED A SUM OF RS.29.35 LACS IN CASH IN ONE OF THE BANK ACCOUNT MAINTAINED WITH FEDERAL BANK LIMITED AND THEREFORE, THE ASSESSEE WAS ASKED TO PROVE THE SOURCE THEREOF. THE ASSESSEE, IN SUPPORT PRODUCED PERSONAL CASH ACCOUNT & CASH ACCOUNT OF PRIME TRADING CO. & PALAK ENTERPRISES AND CONTENDED THAT THE CASH WAS DEPOSITED OUT OF C ASH BALANCES HELD BY HIM. HOWEVER, LD. AO NOTICING VARI OUS DISCREPANCIES, REJECTED ASSESSEES CONTENTIONS AND ADDED THE SAME AS CASH CREDIT U/S 68. 4. AGGRIEVED, THE ASSESSEE CONTESTED THE SAME WITHO UT ANY SUCCESS BEFORE LD.CIT(A) VIDE IMPUGNED ORDER DATED 11/11/20 13, AGAINST WHICH THE ASSESSEE IS IN FURTHER APPEAL BEFORE US. 5. THE LD. COUNSEL FOR ASSESSEE [AR], WHILE DRAWING OUR ATTENTION TO THE PAPER BOOK, CONTENDED THAT THE CASH WAS DEPOSITED OUT OF CASH MAINTAINED WITH DIFFERENT CONCERNS AND THE SAME WAS EXPLAINABLE. PER ITA NO.486/M/2014 BALWINDER HAKAMCHAND ARORA ASSESSMENT YEAR 2009-10 3 CONTRA , LD. DR CONTROVERTED THE SAME BY STATING THAT THE ASSESSEE FAILED TO DEMONSTRATE THE SOURCE OF CASH DEPOSIT AND THERE FORE, RIGHTLY SUFFERED THE IMPUGNED ADDITIONS. 6. HEARD THE RIVAL CONTENTIONS AND PERUSED RELEVANT MATERIAL ON RECORD. UPON PERUSAL OF DOCUMENTS PLACED IN THE PAPER BOOK, WE FIND SOME STRENGTH IN THE ARGUMENTS OF LD. AR. THE LD. A R HAS CONTENDED THAT IT HAS SUFFICIENT DOCUMENTARY EVIDENCES TO EXP LAIN THE SOURCE OF CASH. THEREFORE, WITHOUT DELVING MUCH DEEPER INTO T HE ISSUE, WE DEEM IT FIT TO RESTORE THE MATTER BACK TO THE FILE OF LD. A O TO RE-APPRECIATE THE CLAIM OF THE ASSESSEE, WHO, IN TURN, IS ALSO DIRECT ED TO DEMONSTRATE THE SOURCE OF CASH CREDIT. NEEDLESS TO SAY, ADEQUATE OPPORTUNITY OF BEING HEARD SHALL BE PROVIDED TO THE ASSESSEE. 7. RESULTANTLY, THE ASSESSEES APPEAL STANDS ALLOWE D FOR STATISTICAL PURPOSE. ORDER PRONOUNCED IN THE OPEN COURT ON 08 TH SEPTEMBER, 2017. SD/- SD/- (MAHAVIR SINGH) (M ANOJ KUMAR AGGARWAL) / JUDICIAL MEMBER / ACCOUNTANT MEMBER MUMBAI; DATED : 08 . 09.2017 SR.PS:- THIRUMALESH ITA NO.486/M/2014 BALWINDER HAKAMCHAND ARORA ASSESSMENT YEAR 2009-10 4 / COPY OF THE ORDER FORWARDED TO : 1. ! / THE APPELLANT 2. '#! / THE RESPONDENT 3. * ( ) / THE CIT(A) 4. * / CIT CONCERNED 5. '%- , - , / DR, ITAT, MUMBAI 6. ./ / GUARD FILE / BY ORDER, / (DY./ASSTT. REGISTRAR) , / ITAT, MUMBAI