Shri Mohanlal Tailor, Mandsaur V. The Income Tax Officer, Mandsaur

ITA 542/IND/2012

• Counselvise Citation: 54222714 RSA 2012
• Duration Of Justice: 1 year(s) 1 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-11-2013
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: DB
• Assessment Year: 2008-2009
• Appeal Filed On: 11-10-2012
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: R A VERMA
• Keywords: Peak credit

Judgement Text

PAGE 1 OF 4 IN THE INCOME TAX APPELLATE TRIBUNAL , INDORE BENCH, INDORE BEFORE SHRI JOGINDER SINGH, J.M. AND SHRI R.C.SHARM A, A.M. PAN NO. : AIUPT5068M I.T.A.NO. 542 /IND/201 2 A.Y. : 2008-09 SHRI MOHANLAL TAILOR, POST & VILL. SATHKHEDA, THE.GAROTH, DIST. MANDSAUR. VS. ITO, MANDSAUR APPELLANT RESPONDENT APPELLANT BY : SHRI MANJEET SACHDEVA AND SHRI AVINASH GAUR, ADV. RESPONDENT BY : SHRI R. A. VERMA, SR. DR DATE OF HEARING : 11 . 11 .201 3 DATE OF PRONOUNCEMENT : 14 . 1 1 .201 3 O R D E R PER R. C. SHARMA, A.M. THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER PASSED BY THE CIT(A) DATED 21.08.2012 FOR THE ASSES SMENT YEAR 2008-09 IN THE MATTER OF ORDER PASSED U/S 143( 3) OF THE INCOME-TAX ACT, 1961. SHRI MOHANLAL TAILOR, GAROTH I.T.A.NO. 542/IND/2012 A.Y. 2008-09 2 PAGE 2 OF 4 2. THE ASSESSEE IS AGGRIEVED FOR ADDITION OF RS. 3,43,000/- MADE BY ASSESSING OFFICER BY APPLYING TH E PEAK THEORY. 3. THE RIVAL CONTENTIONS HAVE BEEN HEARD AND RECORDS PERUSED. BRIEF FACTS OF THE CASE ARE THAT THE ASSES SEE IS HAVING INCOME FROM STITCHING OF CLOTHS AND RETAIL SALE. TH E RETURN OF INCOME WAS FILED AT RS. 1,64,060/-. ON THE BASIS OF AIR INFORMATION, THE CASE OF ASSESSEE WAS SELECTED FOR SCRUTINY IN RESPECT OF CASH DEPOSITED IN THE SAVING BANK ACCOUN T AMOUNTING TO RS. 10,05,420/-. THE ASSESSING OFFICER HAS TAKEN THE PEAK DEPOSIT AND ADDED IN ASSESSEES INCO ME. THE ACTION OF THE ASSESSING OFFICER WAS CONFIRMED BY TH E LD.CIT(A) AGAINST WHICH THE ASSESSEE IS IN FURTHER APPEAL BEF ORE US. 4. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS AND FOUND FROM RECORD THAT THE ASSESSEE WAS ENGAGED IN STITCH ING OF CLOTHS AND RETAIL SALE OF CLOTH. THE AMOUNT FOUND D EPOSITED IN BANK WAS ACCEPTED BY THE ASSESSING OFFICER AS SALE PROCEEDS OF BUSINESS OF TRADING IN BLANKETS, HOWEVER, HE ADD ED THE PEAK DEPOSIT IN BANK ACCOUNT. THE ASSESSING OFFICER ASKE D HIM TO SHRI MOHANLAL TAILOR, GAROTH I.T.A.NO. 542/IND/2012 A.Y. 2008-09 3 PAGE 3 OF 4 PROVE THE SOURCES. THE ASSESSEE FILED A WRITTEN REP LY ALONG WITH CONFIRMATION LETTERS AND AFFIDAVITS OF SIX PERSONS AND PROOF OF IDENTITY I.E. VOTER IDENTITY CARDS OF FOUR PERSONS. IN THESE CONFIRMATION LETTERS AS WELL AS AFFIDAVITS ALL THES E SIX PERSONS HAD CATEGORICALLY ADMITTED THAT THEY HAD DEPOSITED THEIR SALE PROCEEDS FROM SALE OF BLANKETS AT COIMBATORE IN ASS ESSEES CORE BANKING ACCOUNT. ASSESSEE HAD EVEN PRODUCED TH ESE SIX PERSONS BEFORE THE ASSESSING OFFICER ON 23.09.2010, BUT SINCE THESE PERSONS BELONG TO BANJARA COMMUNITY, THE ASSE SSING OFFICER WAS UNABLE TO UNDERSTAND THEIR LANGUAGE AND ,THEREFORE, INSTRUCTED THE I.T.I. TO RECORD THEIR S TATEMENTS. KEEPING IN VIEW THE NATURE OF ASSESSEES BUSINESS V IS--VIS THE PROVISIONS OF SECTION 44AF, WE DIRECT THE ASSESSING OFFICER TO RESTRICT THE ADDITION BY COMPUTING 5% OF AMOUNT DEP OSITED IN THE BANK AS ASSESSEES INCOME. WE DIRECT ACCORDINGL Y. 5. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED IN PART. SHRI MOHANLAL TAILOR, GAROTH I.T.A.NO. 542/IND/2012 A.Y. 2008-09 4 PAGE 4 OF 4 THIS ORDER HAS BEEN PRONOUNCED IN THE OPEN COURT ON 14 TH NOVEMBER, 2013. SD/- SD/- (JOGINDER SINGH) (R. C. SHARMA) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED : 14 TH NOVEMBER, 2013. CPU* 1214