MADHAVASHRAM P.LTD, MUMBAI V. ITO 5(2)(3), MUMBAI

ITA 5619/MUM/2016

• Counselvise Citation: [2017] 126 COUNSELVISE.COM (IT) 7797 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 3 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-12-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: Not Allotted
• Assessment Year: 2012-2013
• Appeal Filed On: 16-09-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: T A KHAN
• Assessee Lawyers: DEEPAK TIKEKAR
• Keywords: Unexplained cash credit
• Section: 68

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL BENCH B MUMBAI BEFORE SHRI D.T.GARASIA , JM AND SHRI RAJESH KUMAR, AM I.T.A. NO. 5619 /MUM/20 1 6 ( / ASSESSMENT YEAR : 2 0 1 2 - 13 ) MADHAVASHRAM PVT LTD., 18, NEAR GIRGAON COURT, PAREKH ST, GIRGAON, MUMBAI - 400004 / VS. INCOME TAX OFFICER 5 (2)( 3 ), AAYAKAR BHAVAN, M K ROAD, MUMBAI - 400020 ./ PAN : AAACM3210B ( / APPELLANT) : ( / RESPONDENT ) / APPEL LANT BY : SHRI DEEPAK TIKEKAR / RE SPONDENT BY : SHRI T A KHAN / DATE OF HEARING : 7 .12.2017 / DATE OF PRONOUNCEMENT : 1 9 .12 . 201 7 / O R D E R PER RAJESH KUMAR, A. M: THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF LD.CIT(A) - 21, MUMBAI DATED 21.7.2016 FOR THE ASSESSMENT YEAR 2012 - 13. 2. THE ISSUE RAISED BY THE ASSESSEE IN GROUND NO.1 IS AGAINST THE CONFIRMATION OF DISALLOWANCE OF RS.1 LAKH OUT OF ALLEGED EXPENSES OF DAILY LODGING , TRAVELLING AND CONVEYANCE EXPENSES AND TELEPHONE CHARGES AND THE ISSUE RAISED IN GROUND NO.2 IS AGAINST THE CONFIRMATION OF ADDITION OF 2 I.T.A. NO . 5619 /MUM/2016 RS.1,25,00,000/ - AS UNEXPLAINED CASH CREDIT U/S 68 OF THE INCOME TAX ACT, 1961. 3. AFTER HEARING OF BOTH THE PARTI ES, WE FIND THAT THE AO HAS NOT RECORDED THE STATEMENT OF THE LENDER IN SO FAR AS THE ISSUE RAISED IN THE SECOND GROUND IS CONCERNED . IT WAS BROUGHT TO OUR NOTICE THAT THE MATTER WAS ORALLY INVESTIGATE D FROM THE LENDER AND NO STATEMENT WAS RECORDED . I T WAS ALSO STATED BEFORE US THA T THE SOURCE WAS PROVED BY THE LENDER BUT SOURCE OF SOURCE WAS NOT REQUIRED TO BE PROVED. IN THE PRESENT FACTS AND CIRCUMSTANCES OF THE CASE WHERE THE ISSUE WAS NOT PROPERLY EXAMINED BY THE AUTHORITIES BELOW , WE ARE OF THE CONSIDERED VIEW THAT THE MATTER NEEDS TO BE RE - INVESTIGATED THOROUGHLY BY CALLING THE LENDER AND RECORDING HIS STATEMENT AS TO SOURCE OF MONEY AND DECIDE THE ISSUE DENOVO AS PER FACTS AND LAW. SIMILARY THE MATTER OF ADHOC DISALLOWANCE IS ALSO RESTORED. AC CORDINGLY, WE SET ASIDE THE ORDER OF THE LD.CIT(A) AND RESTORE THE BOTH THE ISSUE S THE FILE OF THE AO FOR FRESH CONSIDERATION AND DECISION AS PER FACTS AND LAW . 4. RESULTANTLY, THE APPEAL OF THE ASSESSEE STANDS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRON OUNCED ON 19TH DEC, 2017. ( D.T.GARASIA ) ( RAJESH KUMAR) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI ; DATED : . 19. 1 2 .2017 SR.PS:SRL: 3 I.T.A. NO . 5619 /MUM/2016 / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT 3. ( ) / TH E CIT(A) 4. / CIT CONCERNED 5. , , / DR, ITAT, MUMBAI 6. / GUARD F ILE / BY ORDER, T RUE COPY / (DY./ASSTT. REGISTRAR) , / ITAT, MUMBAI