LATA NARESH KURUWA, MUMBAI V. ITO 13(3)(2), MUMBAI

ITA 4921/MUM/2014

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 8040 (ITAT-MUMBAI)
• Duration Of Justice: 2 year(s) 7 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-03-2017
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 01-03-2017
• Assessment Year: 2010-2011
• Appeal Filed On: 25-07-2014
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: RAJESH KUMAR YADAV
• Keywords: Unexplained cash credit; Business income
• Section: 133(6); 68; 69

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH, MUMBAI BEFORE SHRI SHAMIM YAHYA , ACCOUNTANT MEMBER AND SHRI RAVISH SOOD, JUDICIAL MEMBER ITA NO.4921 /MUM./2014 ( ASSESSMENT YEAR :2010 - 11 ) LATA NARESH KURUWA 28/2 ANANT NIWAS. N.N. STREET, MASJID, MUMBAI 400 009 . APPELLANT V/S ITO 13(3)(2 ) MUMBAI . RESPONDENT ASSESSEE BY : NONE REVENUE BY : MS. RAJESH KUMAR YADAV DATE OF HEARING 01.03.2017 DATE OF ORDER 03.03.2017 O R D E R PER: SHAMIM YAHYA THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST ORDER OF LD. CIT - A , DATED 09.02.2016 AND PER TAINS TO ASSESSMENT YEAR 2010 - 11 . 2. THE GROUNDS OF APPEAL READ AS UNDER: I) THE LD. CIT - A [HEREINAFTER REFERRED TO AS LD. CIT - A] ERRED IN UPLOADING THE ORDER OF THE LD. AO FOR TREATING AN AMOUNT OF RS.19,50,000/ - AS UNEXPLAINED CASH CREDIT U/S 69 OF THE INCOME TAX LATA NARESH KURUWA ITA NO.4921/MUM./2014 2 ACT, 1961 AS BUSINESS INCOME AND TAXED ACCORDINGLY WITHOUT APPR ECIATING THE FACTS AND CIRCUMSTANCES OF THE CASE. II) THE APPELLANT CRAVES LEAVE TO ADD, ALTER RESCIND OR AMEND ANY OF THE ABOVE GROUNDS OF APPEAL. 3. BRIEF FACTS OF THE CASE ARE AS UNDER: ASSESSEE HAD FILED HER RETURN OF INCOM E DECLARING TOTAL INCOME OF RS. 2,76,452/ - ON 31/3/2001 AND THE SAME WAS PROCESSED U/S 143(1) OF I.T. ACT, 1961. CASE WAS SELECTED FOR SCRUTINY AND NOTICES ISSUED BY THE ASSESSING OFFICER. ASSESSEE'S CA ATTENDED THE OFFICE ON BEHALF OF THE ASSESSEE BEFORE THE ASSESSING OFFICER AND FL IED DETAILS. ASSESSEE HAD SHOWN INTEREST RECEIPTS OF RS. 2,97,271/ - FROM FIVE PARTIES AND AFTER CLAIMING DEDUCTION OF RS. 20,819/ - , ARRIVED AT TOTAL INCOME OF RS. 2,76,452/ - . IT WAS OBSERVED BY THE ASSESSING OFFICER FROM THE ITS DETAILS OF THE DEPARTMENT T HAT THE ASSESSEE HAD DEP OSITED A SUM OF RS. 19,50,000/ - DURING FINANCIAL YEAR RELEVANT TO A.Y. 2010 - 11 IN HER BANK ACCOUNT WITH ARIHANT COOP BANK, MULUND WEST BRANCH AND THE SAME WAS CONFIRMED BY THE STATEMENT RECEIVED FROM THE BANK. ASSESSEE WAS GIVEN THRE E OPPORTUNITIES BY THE ASSESSING OFFICER, HOWEVER, ASSESSEE DID NOT RESPOND TO ANY OF THE NOTICES. THEREAFTER, ASSESSING OFFICER ISSUED 133(6) NOTICES TO THE EIGHT PARTIES TO WHOM LOANS TOTALING RS. 19,50,000/ - WERE GIVEN AND THEY HAVE ALL CONFIRMED TIE REC EIPT OF LOANS BY CHEQUE FROM THE ASSESSEE. IT WAS ALSO NOTICED BY THE ASSESSEE THAT ALL THE EIGHT PARTIES OPERATED FROM THE SAME PREMISES AT MULUND AND THEY WERE ALL INTER CONNECTED WITH ONE ANOTHER AS DIRECTORS/ PARTNERS/PROPRIETORS. ASSESSEE DID NOT RECE IVE ANY LATA NARESH KURUWA ITA NO.4921/MUM./2014 3 INTEREST FROM ANY OF THESE PARTIES ON LOANS GIVEN BY HER AND THESE LOANS WERE GIVEN TO THE CONCERNED PARTY BY CHEQUE IMMEDIATELY AFTER DEPOSITING CASH IN THE SAVINGS ACCOUNT WITH THE BANK. ASSESSING OFFICER TREATED THE AMOUNT AS UNEXPLAINED CASH CR EDIT AND TAXED THE SAME U/S 68 OF I.T. ACT, 1961. ASSESSEE IS IN APPEAL AGAINST THE SAME. 4. UP ON ASSESSEES APPEAL LD. CIT NOTED THAT ASSESSEE HAS NOT FILLING ANY EXPLANATION AND/OR DETAILS AND DOCUMENTS. THE LD. CIT HELD AS UNDER; I HAVE CONSIDERED THE FACTS OF THE CASE AND THE SUBMISSIONS MADE BY THE ASSESSEE. PRIMA FADE IT APPEARS FROM THE ASSESSMENT ORDER THAT THE ASSESSEE DEPOSITED CASH TOTALING RS.19,50,000/ - IN HER SAVINGS ACCOUNT WITH ARIHANT CO - OP. BANK, MULUND, MUMBAI FROM TIME TO TIME AND IMME DIATELY ISSUED CHEQUES OF EQUIVALENT AMOUNTS IN FAVOUR OF VARIOUS PARTIES FROM TIME TO TIME. ALL THE EIGHT PARTIES OPERATE FROM THE SAME PREMISES AT MULUND AND HAVE CONFIRMED THE RECEIPTS OF THESE LOANS FROM THE ASSESSEE. ASSESSEE AND HER AUTHORISED REPRES ENTATIVES WERE GIVEN SEVERAL OPPORTUNITIES BY THE ASSESSING OFFICER AND ASSESSEE HAS BEEN GIVEN THREE OPPORTUNITIES IN THE APPELLATE PROCEEDINGS, HOWEVER, NEITHER THE ASSESSEE NOR THE CA HAS AVAILED OF THE OPPORTUNITY TO FILE EXPLANATION FOR THE CASH DEPOS ITS IN THE ACCOUNT. THEREFORE, IT IS PRESUMED THAT NEITHER THE ASSESSEE NOR HER SON WHO HAS WRITTEN TWO LETTERS HAS ANYTHING TO SAY IN THE MATTER AND THEREFORE THE APPEAL IS DECIDED ON MERITS OF THE CASE. FIRST OF ALL, ASSESSEE DOES NOT SEEM TO HAVE ANY EX PLANATION BECAUSE THERE ARE TOTAL CASH DEPOSITS OF RS.19,50,0001/ - IN THE ACCOUNT MADE DURING THE FINANCIAL YEAR FOR WHICH SHE HAS NO EXPLANATION TO OFFER BECAUSE SHE HAS LATA NARESH KURUWA ITA NO.4921/MUM./2014 4 NOTHING TO EXPLAIN ABOUT THE SOURCE OF THESE CASH DEPOSITS. KEEPING IN VIEW HER RETUR N OF INCOME, SHE MAY HAVE HAD AT THE MOST RS.5,000/ - RS.10,000/ - IN CASH ON HAND WHICH MIGHT HAVE ACCUMULATED OVER A PERIOD OF TIME, BUT NOT A SUM OF RS.19,50,000/ - WHICH IS DEPOSITED IN INSTALMENTS AND TRANSFERRED IMMEDIATELY BY CHEQUE TO A GROUP OF INDIV IDUALS/FIRMS/COMPANIES OPERATING FROM THE SAME ADDRESS IN MULUND. THE PROBABILITY OF THE FUNDS IN CASH HAVING COME FROM THE EIGHT PARTIES TO WHOM INTEREST FREE LOANS AND ADVANCES HAVE BEEN GIVEN ALSO CANNOT BE RULED OUT BECAUSE THE FUNDS HAVE BEEN IMMEDIAT ELY TRANSFERRED BY CHEQUES TO THESE EIGHT PARTIES. HOWEVER, THE FACT REMAINS THAT THE CASH CREDITS TOTALLING RS. 19,50,000/ - APPEAR IN THE SAVINGS BANK ACCOUNT OF THE ASSESSEE WITH ARIHANT CO - OP. BANK, MULUND AND, THEREFORE, THE SAME IS TAXABLE AS UNEXPLAI NED CASH CREDITS UNDER SECTION 69 OF I. T. ACT, 1961 IN THE HANDS OF THE ASSESSEE ONLY. THEREFORE, THE ADDITION OF RS.19,50,000/ - MADE BY THE ASSESSING OFFICER IS UPHELD IN PRINCIPLE UNDER SECTION 69 OF I.T. ACT, 1961 - ASSESSEE'S APPEAL IS REJECTED IN FACT S AND IN LAW. ASSESSING OFFICER IS DIRECTED TO FORWARD A COPY OF ASSESSMENT ORDER AS WELL AS COPY OF THIS APPEAL ORDER TO ALL THE ASSESSING OFFICERS ASSESSING THE EIGHT ENTITIES TO WHOM ASSESSEE HAD GIVEN LOANS FOR TAKING FOLLOW UP ACTION TO BRING TO TAX T HE LOAN AMOUNTS IN THEIR HANDS SINCE THE PROBABILITY OF THE CASH HAVING COME FROM THEM CANNOT BE RULED OUT IN CIRCUMSTANCES OF THE CASE. 5. A GAINST ABOVE ORDER ASSESSEE IS IN APPEAL BEFO RE US. WE HAVE HEARD THE LD. DR . NONE APPEARED ON BEHALF OF THE ASSESSEE. IT IS NOTED THAT THIS LATA NARESH KURUWA ITA NO.4921/MUM./2014 5 APPEAL WAS FIXED FOR HEARING ON SEVERAL O CCASIONS AND DESPITE NOTICES NONE HAS ATTENDED. TODAY ALSO WHEN THE CASE WAS CALLED UP NONE APPEARED ON BEHALF OF THE ASSESSEE. HENCE WE PROCEED TO AD JUDICATE THE ISSUE UPON HEARING THE LEARNED DEPARTMENTAL REPRESENTATIVE AND PERUSING THE RECORDS. 6. IN THIS CASE ASSESSEE HAS DEPOSITED CASH TOTALING RS. 19 ,50, 000 / - IN THE SAVINGS BANK ACCOUNT. FROM THERE LOANS TO 8 PARTIES WERE GIVEN. NO EXPLANATION FOR THE SOURCE OF CASH DEPOSIT WAS F U R NISHED AT ANY STAGE OF THE ASSESSMENT. IN THE SE CIRCUMSTANCES IN OUR CONSIDERED OPINION THERE IS NO INFIR MITY IN THE ORDER OF THE AUTHORITIES B ELOW TO ADD THE AFORESAID SUM AS INCOME OF THE ASSESSEE. HENCE WE DO NOT FIND ANY INFIRMITY IN THE ORDER OF THE LD. CIT. ACCORDINGLY WE UPHOLD THE SAME. IN THE RESULT THIS APPEAL FILED BY THE ASSESSEE STANDS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 03.03.2017 SD/ - SD/ - RAVISH SOOD SHAMIM YAHIYA JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI, DATED: 03.03.2017 LATA NARESH KURUWA ITA NO.4921/MUM./2014 6 COPY OF THE ORDER FORWARDED TO : (1) THE ASSESSEE; (2) THE REVENUE; (3) THE CIT(A); (4) THE CIT, MUMBAI CITY CONCERNED; (5) THE DR, ITAT, MUMBAI; (6) GUARD FILE . TRUE COPY BY ORDER NISHANT VERMA SR. PRIVATE SECRETARY (DY./ASSTT.REGISTRAR) ITAT, MUMBAI