PARVEZ AKBARALI ANSARI, MUMBAI V. ITO 15(1)(4), MUMBAI

ITA 5137/MUM/2016

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 0364 (ITAT-MUMBAI)
• Duration Of Justice: 10 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-06-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2011-2012
• Appeal Filed On: 11-08-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: T A KHAN
• Assessee Lawyers: M SUBRAMANIAN

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES SMC, MUMBAI BEFORE SHRI B R BASKARAN, ACCOUNTANT MEMBER ITA NO.5137/MUM/2016 ASSESSMENT YEAR : 2011-12 PARVEZ AKBARALI ANSARI, ROOM NO.17, GROUND FLOOR, GULDARWAZA BLDG., BLDG. 116/118, SHUKLAJI STREET, NAGPADA, MUMBAI 400 008 PAN AJXPA9048C VS. ITO 1 5 ( 1 )( 4 ) MUMBAI (APPELLANT) RESPONDENT) APPELLANT BY : SHRI M SUBRAMANIAN RESPONDENT BY : SHRI T A KHAN DATE OF HEARING : 20 .0 6 .201 7 DATE OF PRONOUNCEMENT : 20 .0 6 . 201 7 O R D E R THE ASSESSEE HAS FILED THIS APPEAL CHALLENGING THE ORDER DATED 07-06-2016, PASSED BY LD CIT(A)-32, MUMBAI, AND IT RELATES TO THE ASSESSMENT YEAR 2011-12. THE ASSESSEE IS AGGRIEVED BY THE DECISION OF LD CIT(A) IN CONFIRMING THE ADDITION MADE BY THE AO AND ALSO IN ENHANCING THE I NCOME. 2. I HEARD THE PARTIES AND PERUSED THE RECORD. THE LD A.R SUBMITTED THAT THE ASSESSEE IS ENGAGED IN THE BUSINESS OF TRADING IN T EXTILE GOODS. THE AO RECEIVED AIR INFORMATION THAT THE ASSESSEE HAS DEPOSITED CAS H OF ` 80.81 LAKHS IN THE SB ACCOUNT MAINTAINED WITH BANK OF BARODA AND ` 83.44 LAKHS IN THE SB ACCOUNT MAINTAINED WITH IDBI BANK. BEFORE THE AO, THE ASSE SSEE SUBMITTED THAT THE DEPOSITS HAVE BEEN OUT OF BUSINESS FUNDS ONLY. HE S UBMITTED A CD CONTAINING THE LEDGER ACCOUNTS TO SUPPORT HIS SUBMISSIONS. THE AS SESSEE DID NOT PRODUCE OTHER ITA NO.5137/MUM/2016 SHRI PARVEZ AKBARALI ANSARI 2 RECORDS ON THE REASONING THAT THEY HAVE BEEN DESTRO YED BY FIRE THAT TOOK PLACE ON 26.11.2011. HOWEVER, THE AO DID NOT LOOK INTO THE CD AND CONSIDERED THE AGGREGATE DEPOSITS AS THE TURNOVER OF THE ASSESSEE. AFTER GIVING SET OFF OF SALES TURNOVER DECLARED IN THE BOOKS, THE AO ESTIMATED TH E GROSS PROFIT FROM THE BALANCE TURNOVER BY APPLYING G.P RATE OF 21.18%. IT IS PER TINENT TO NOTE THAT THE ASSESSEE HAD DECLARED G.P RATE OF 21.18% IN ITS PROFIT AND L OSS ACCOUNT. THE LD CIT(A) INCLUDED ONE MORE BANK ACCOUNT AND ACCORDINGLY ENHA NCED THE QUANTUM OF DEPOSITS AND ALSO INCOME. AGGRIEVED, THE ASSESSEE HAS FILED THIS APPEAL BEFORE THE TRIBUNAL. 3. THE LD A.R SUBMITTED THAT THE ASSESSMENT ORDE R PASSED BY AO SUFFERS FROM MANY INFIRMITIES. HE SUBMITTED THAT THE BUSINESS O F THE ASSESSEE HAS BEEN WRONGLY WRITTEN AS SUPPLY OF LABOUR FOR CIVIL CONSTRUCTION, WHICH IS NOT CORRECT. THE ASSESSEE DOES NOT DEAL IN COTTON, BUT THE SAME IS ALSO WRITT EN. HE SUBMITTED THAT THE ASSESSEE HAS SUBMITTED A CD, WHEREIN ALL THE BANK T RANSACTIONS OF ALL BANKS HAVE BEEN INCLUDED. BUT THE AO DID NOT CONSIDER THE SAM E AND THE LD CIT(A) ALSO DID NOT CONSIDER. ACCORDINGLY, HE PLEADED THAT THE MAT TER MAY BE RESTORED TO THE FILE OF THE AO. 4. THE LD D.R DID NOT OBJECT TO THE PLEA PUT FORT H BY LD A.R. 5. HAVING HEARD RIVAL SUBMISSIONS, I AM OF THE V IEW THAT THE IMPUGNED ISSUES REQUIRE FRESH ADJUDICATION AT THE END OF THE AO, SI NCE THE ASSESSMENT ORDER SUFFERS FROM INFIRMITIES AND FURTHER THE CD SUPPLIED BY THE ASSESSEE HAS NOT BEEN CONSIDERED AT ALL. IN MY VIEW, THE TAX AUTHORITIES SHOULD HAVE EXAMINED THE CD AND SHOULD HAVE REJECTED THE SAME ON PROPER REASONING. ACCORDINGLY, I SET ASIDE THE ORDER PASSED BY LD CIT(A) AND RESTORE ALL THE ISSUE S TO THE FILE OF THE AO WITH THE ITA NO.5137/MUM/2016 SHRI PARVEZ AKBARALI ANSARI 3 DIRECTION TO EXAMINE THEM AFRESH BY DULY CONSIDERIN G THE CD SUPPLIED BY THE ASSESSEE. IF THE AO WAS NOT SATISFIED WITH THE SUB MISSIONS OF THE ASSESSEE AND THE CD, THE SAME SHOULD BE REJECTED ON PROPER REASONING . AFTER CONSIDERING THE EXPLANATIONS OF THE ASSESSEE AND INFORMATION GIVEN BY HIM, THE AO MAY TAKE APPROPRIATE DECISION IN ACCORDANCE WITH THE LAW. 6. IN THE RESULT, THE APPEAL FILED BY THE ASSES SEE IS TREATED AS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON THIS DAY OF 20 TH JUNE 2017 SD/- (B R BASKARAN) ACCOUNTANT MEMBER MUMBAI, DATED : 20 TH JUNE, 2017. SA COPY OF THE ORDER FORWARDED TO : 1. THE APPELLANT. 2. THE RESPONDENT. 3. THE CIT(A), MUMBAI. 4. THE CIT 5. THE DR, SMC BENCH, ITAT, MUMBAI BY ORDER //TRUE COPY// (ASSISTANT REGISTRAR) INCOME TAX APPELLATE TRIBUNAL, MUMBAI