The ITO, Ward-1(4), RAJKOT-GUJARAT V. Shri Sanjay L. Bhambhlani, RAJKOT-GUJARAT

ITA 582/RJT/2014

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 0087 (ITAT-RAJKOT)
• Duration Of Justice: 2 year(s) 1 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-11-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 09-11-2016
• Assessment Year: 2009-2010
• Appeal Filed On: 08-10-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AVINASH KUMAR
• Assessee Lawyers: DM RINDANI
• Keywords: Peak credit
• Section: 143(3); 69

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL RAJKOT BENCH , RAJKOT BEFORE: SHRI R. P. TOLANI, JUDICIAL MEMBER AND S H RI AMARJIT SINGH , ACCOUNTANT MEMBER [CONDUCTED THROUGH E - COURT AT AHMEDABAD] THE ITO, WARD 1(4), RAJKOT (APPELLANT) VS SHRI SANJAY L. BHAMBHLANI, PURSHARTH 2 - VIDUYAT NAGAR, ASRTON SOCIETY, OFF KALAWAD ROAD, RA JKOT PAN: AGUPB7475L (RESPONDENT) REVENUE BY : S H RI AVINASH KUMAR , SR. D . R. ASSESSEE BY: S H RI D.M. RINDANI , A.R. DATE OF HEARING : 09 - 1 1 - 2 016 DATE OF PRONO UNCEMENT : 23 - 11 - 2 016 / ORDER P ER : AMARJIT SINGH, ACCOUNTANT MEMBER : - THI S REVENUE S APPEAL FOR A.Y. 2009 - 10 , AR ISES FROM ORDER OF THE CIT( A) , JAMNAGAR DATED 17 - 07 - 2014 IN APPEAL NO. CIT(A) - / JAM/192/11 - 12 , IN PROCEEDINGS UNDER SECTION 143(3) OF THE INCOME TAX ACT, 196 1; IN SHORT THE ACT . I T A NO . 582 / RJT /20 14 A SSESSMENT YEAR 200 9 - 10 I.T.A NO. 582 /RJT /20 14 A.Y. 2009 - 10 PAGE NO IT O VS. SHRI SANJAY L. BHAMBHLANI 2 2. THE REVENUE HAS TAKEN FOLLOWING GROUND OF APPEAL: - 1. THE LD. CIT(A), JAMNAGAR HAS ERRED; IN LAW AND ON FACTS IN RESTRICTING THE ADDITION OF RS.45,17,759/ - ( PEAK BALANCE OF THREE BANK ACCOUNTS) MADE U/S 69 OF THE I.T. ACT TO THE EXTENT OF RS. 14,42,429/ - BY RELYING OF THE DECISION OF LD CIT(A) - I, RAJKOT IN ASSESSEE'S OWN; CASE FOR A.Y.2008 - 09 WHEREIN IT HAS BEEN CONFIRMED THE ADDITION OF PEAK BALANCE OF ONE BANK ACCOUNT IN DENA BANK. 3 . IN THIS CASE RETURN OF INCOME DECLAR ING INCOME OF RS. 2,12,960/ - WAS FILED ON 30 - 03 - 2010. DURING THE COURSE OF ASSESSMENT PROCEEDINGS, THE ASSESSING OFFICER HAS NOTICED THAT HE ASSESSEE WAS HAVING BANK ACCOUNT WITH DENA BAN K , CENTRAL BANK OF INDIA, INDUS LAND BAN K AND ON VARI OUS DATES CASH OF RS. 1,09,81,50 0/ - WAS DEPOSITED IN THE SAID ACCOUNTS. THE ASSESSING OFFICER ALSO OBSERVED THAT THE ASSESSEE HAS PURCHASED IMMOVABLE PROPERTY DURING THE YEAR. ON QUESTION ING BY THE ASSESSING OFFICER, THE ASSESSSE EXPLAINED THAT THE PROPERTY DEAL WA S NO T MATERIALIZED FOR LACK OF RIGHTFUL OW N ERSHIP OF THE SELLER. REGARDING THE BANK ACCOUNT, THE ASSESSEE EXPLAINED THAT IN THE CASE OF BANK A/C NO. 1311114985/ - WITH CENTRAL BANK OF INDIA THERE WAS NO NEW CASH DEPOSIT AND THERE WERE ONLY CASH WITHDRAWAL AND DEPOSITS. THE BANK A/C NO. 0079 - 153100 - 001 WITH INDUS LAND BANK WAS A JOINT ACCOUNT WITH MEGANA CHANDRANA WHO HAD EXPIRED SO THERE WAS PLAN TO DO BUSINESS WITH HER. BECAUSE OF HER EXPIRY NO EXPLANATION COULD BE OFFERED. IN RESPECT OF DENA BANK A/C, THE ASSESSEE STATED THAT BY MISTAKE THE BUSINESS OF IMITATION JEWELRY WAS FORGOTTEN TO BE INTEGRATED IN T HIS ACCOUNT AS THE ASSESSEE WAS ALSO DOING THE SIDE BUSINESS IN THE IMITATION JEWELLERY . THE ASSESSING OFFICER HAS NOT ACCEPTED THE I.T.A NO. 582 /RJT /20 14 A.Y. 2009 - 10 PAGE NO IT O VS. SHRI SANJAY L. BHAMBHLANI 3 EXPLANATION OF THE ASSESSEE AND STATED THAT THE DEPARTMENT AFTER THOROUGH INVESTIGATION HAS DE T ETED THE ASSESSEE S UNACCOUNTED UNDISCLOSED AND UNRECORDED INVESTMENTS IN THE FORM OF CASH DEPOSITS IN THE BANK ACCOUNTS. THE HIGHEST PEAK CRE D I T OF ALL TH ESE BANK ACCOUNTS (DENA BANK RS . 17, 7045 + CENTRAL BANK OF INDIA RS. 1305999/ - + INDUS LAND BANK RS. 1504715) OF RS. 4517759/ - WAS TREATED BY THE ASSESSING OFFICER AS UNEXPLAINED CASH DEPOSITS AND ADDED TO THE TOTAL INCOME U/S. 69 OF THE ACT. 4 . AGGRIEVED AGAINST THE ORDER OF THE ASSESSING OFFICER, THE ASSESSEE FILED APPEAL BEFORE THE LD. COMMISSIONER OF INCOME TAX(A). THE LD. COMMISSIONER OF INCOME TAX(A) ON THE BASIS OF PRECEDING YEAR 'S ADDITION SUSTAINED BY THE APPELLATE A UTHORITY IN THE CASE OF THE ASSESSEE HELD THAT CASH TRANSACTIONS OF TH REE BANK ACCOUNTS HAVE TO BE CONSIDERED TOGETHER BECAUSE CASH DEPOSITS AND WITHDRAWAL ARE MADE AT RANDOM FROM ALL THESE ACCOUNTS. THEREFORE, THE LD. COMMISSIONER OF INCOME TAX(A) HAS RESTRICTED THE ADDITION TO THE AMOUNT OF RS. 14,42,429 / - AS THE NEGATIVE BALANCE ON 14 - 05 - 2008. 5 . DURING THE COURSE OF APPELLATE PROCEEDINGS BEFORE US, THE LD. D.R. RELIED ON THE ORDER OF THE ASSESSING OFFICER. ON THE OTHER HAND, LD. COUNSEL CONTENDED THAT IN THE CASE OF THE ASSES SEE FOR THE ASSESSMENT YEAR UNDER CONSIDERATION , THE A SSESSING O FFICER HAS RE ASSESSED THE INCOME U/S. 143(3) R.W.S. 148 OF THE ACT AND VIDE ORDER DATED 22/02/2016 HAS ACCEPTED THE ADDITION OF RS. 14,42 , 429/ - I.T.A NO. 582 /RJT /20 14 A.Y. 2009 - 10 PAGE NO IT O VS. SHRI SANJAY L. BHAMBHLANI 4 AS REDUCED BY THE LD. COMMISSIONER OF INCOME TAX(A) .HE FURTHER SUBMITT ED THAT THE ASSESSEE IS NOT IN FURTHER APPEAL AGAINST THE SAID RE - ASSESSED ORDER DATED 22/02/2016. IN THIS CONNECTION, THE LD. COUNSEL HAS ALSO FURNISHED SYNOPSIS ALONG WITH COPY OF THE ASSESSMENT MADE BY THE A SSESSING O FFICER U/S. 143(3) R.W.S. 148 FOR THE ASSESSMENT YEAR UNDER CONSIDERATION. THIS WAS ALSO BROUGHT INTO THE NOTICE OF THE LD. D.R. 6. WE HAVE HEARD BOTH THE SIDES AND PERUSED THE MATERIAL ON RECORD. IN VIEW OF THE ABOVE FACTS AND FINDINGS, AFTER CONSIDERING THAT THE A SSESSING O F FICER HA S ACCEPTED THE ADDITION OF RS. 14 , 42 , 429/ - AS REDUCED BY THE LD. COMMISSIONER OF INCOME TAX(A) IN RE - ASSESSMENT ORDER U/S. 143(3) R.W.S. 147 DATED 22/02/2016 AND THE ASSESSEE S COUNSEL 'S SUBMISSION THAT ASSESSEE HAS NOT FILED ANY APPEAL AGAINST RE - ASSES SED ORDER , WE UPHOLD THE ORDER OF THE LD. COMMISSIONER OF INCOME TAX(A). 7. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISMISSED. ORDER PR ONOUNCED IN THE OPEN C OUR T ON 23 - 11 - 201 6 SD/ - SD/ - (R.P. TOLANI ) ( AMARJIT SINGH ) JUDICI AL MEMBER ACCOUNTANT MEMBER AHMEDABAD : DATED 23 /11 /2016 / COPY OF ORDER FORWARDED TO: - 1. ASSESSEE I.T.A NO. 582 /RJT /20 14 A.Y. 2009 - 10 PAGE NO IT O VS. SHRI SANJAY L. BHAMBHLANI 5 2. REVENUE 3. CONCERNED CIT 4. CIT (A) 5. DR, ITAT, AHMEDABAD 6. GUARD FILE. BY ORDER, ASSISTA NT REGISTRAR, INCOME TAX APPELLATE TRIBUNAL, RAJKOT