ROHIT SHETTY, MUMBAI V. A.C.I.T. 11(1), MUMBAI

ITA 5825/MUM/2012

• Counselvise Citation: [2013] 140 COUNSELVISE.COM (IT) 71775 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 2 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-11-2013
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Assessment Year: 2008-2009
• Appeal Filed On: 21-09-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: S P DIXIT

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH, MUMBAI BEFORE S/SHRI B.R.MITTAL,(JM) AND SANJAY ARORA (AM) . . , , _ ./I.T.A. NO.5825/MUM/2012 ( / ASSESSMENT YEAR : 2008-09) SHRI ROHIT SHETTY, X802, 8 TH FLOOR, GOLDEN RAYS APARTMENT, SHASTRI NAGAR, ANDHERI (WEST), MUMBAI-400058. / VS. ASSTT. COMMISSIONER OF INCOME TAX CIRCLE 11(1), ROOM NO.316, AAYAKAR BHAVAN, M.K.ROAD, MUMBAI-400020 ( ( / APPELLANT) .. ( ) ( / RESPONDENT) _ ./ ./PAN/GIR NO. : AMZPS6521K ( /: APPELLANT BY SHRI S.P.DIXIT ) ( , / RESPONDENT BY SHRI SANJ EEV JAIN , / / DATE OF HEARING : 19.11.2013 , / /DATE OF PRONOUNCEMENT : 27.11.2013 / O R D E R PER B.R.MITTAL, JM: THE ASSESSEE HAS FILED THIS APPEAL FOR ASSESSMENT YEAR 2008-09 AGAINST ORDER OF LD. CIT(A) DATED 13.6.2012 DISPUTING THE CONFIRMAT ION OF ADDITION OF RS.15,00,000/- BY TREATING SECURITY DEPOSIT ADVANCES OF EARLIER YEAR S AS INCOME RECEIVED DURING THE YEAR. 2. ON BEHALF OF THE ASSESSEE, AN APPLICATION FOR AD JOURNMENT IS MADE. HOWEVER, CONSIDERING THE FACTS OF THE CASE, WE REJECT THE AD JOURNMENT APPLICATION AND HEAR THE LD. DR. DURING THE COURSE OF HEARING, LD. DR RELIED O N THE ORDER OF LD. CIT(A). 3. ON PERUSAL OF THE ORDERS OF AUTHORITIES BELOW W E OBSERVE THAT THE ASSESSEE IS FOLLOWING CASH SYSTEM OF ACCOUNTING. THE ASSESSEE IS A FILM DIRECTOR, CARRYING ON PROFESSION OF FILM DIRECTOR. AO OBSERVED THAT THE ASSESSEE HAS SHOWN IN THE BALANCE SHEET AS ON 31.3.2008 A SUM OF RS.15,63,270/- UNDE R THE HEAD CURRENT LIABILITIES. THE ASSESSEE STATED THAT IT RECEIVED AN AMOUNT OF RS.1 5,00,000/- TOWARDS SECURITY DEPOSITS IN EARLIER YEAR I.E. IN FINANCIAL YEAR 2005-06 RELE VANT TO ASSESSMENT YEAR 2006-07. AO I.T.A. NO.5825/MUM/2012 2 STATED THAT SINCE THE ASSESSEE IS FOLLOWING CASH SYSTEM OF ACCOUNTING, ANY AMOUNT RECEIVED AS AN ADVANCE IS ALSO A RECEIPT IN THE NAT URE OF INCOME IRRESPECTIVE OF FACT THAT HOW THE SERVICES ARE GOING TO BE PERFORMED. HENCE, THE AO MADE ADDITION OF RS.15,00,000/-. THE LD. CIT(A) ALSO CONFIRMED THE ACTION OF AO. HENCE, ASSESSEE IS IN APPEAL BEFORE THE TRIBUNAL. 4. WE OBSERVE THAT UNDISPUTEDLY, THE SAID ADVANCE OF RS.15,00,000/- AS SECURITY DEPOSIT WAS RECEIVED BY ASSESSEE IN FINANCIAL YEAR 2005-06 AND FINALLY IT WAS ACCOUNTED FOR IN ASSESSMENT YEAR 2011-12 AS INCOME. THERE I S NO DISPUTE TO THE FACT THAT ASSESSEE IS FOLLOWING CASH SYSTEM OF ACCOUNTING. IT IS ALSO A FACT THAT THE YEAR IN WHICH THE ASSESSEE RECEIVED THE ADVANCE FOR PERFO RMING THE WORK IN SUBSEQUENT YEARS. SINCE IN THE ASSESSMENT YEAR UNDER CONSIDERATION I. E. ASSESSMENT YEAR 2008-09, NEITHER THE SAID AMOUNT OF RS.15,00,000/- HAS BEEN RECEIVED NOR THE WORK HAS BEEN PERFORMED, WE ARE OF THE CONSIDERED VIEW THAT THE S AID ADVANCE OF RS.15,00,000/- RECEIVED BY ASSESSEE IN ASSESSMENT YEAR 2006-07 COU LD NOT BE ASSESSED AS INCOME OF THE ASSESSEE IN THE ASSESSMENT YEAR UNDER CONSIDERA TION VIZ ASSESSMENT YEAR 2008-09. WE OBSERVE THAT THE SAID AMOUNT WAS FINALLY ACCOUNT ED FOR BY THE ASSESSEE AS INCOME IN ASSESSMENT YEAR 2011-12. HENCE, WE HOLD THAT T HE ACTION OF THE AUTHORITIES BELOW TO MAKE SAID ADDITION OF RS.15,00,000/- IN THE ASSESSM ENT YEAR UNDER CONSIDERATION IS NOT JUSTIFIED EVEN IF THE ASSESSEE IS FOLLOWING CASH SYSTEM OF ACCOUNTING. ACCORDINGLY, WE DELETE THE SAID ADDITION OF RS.15,00,000/- BY ALLO WING GROUND OF APPEAL TAKEN BY ASSESSEE. 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED. ORDER PRONOUNCED IN THE OPEN COURT ON T HE 27TH NOVEMBER, 2013 , 2 3 27TH NOVEMBER, 2013 , SD SD ( / SANJAY ARORA) ( . . /B.R.MITTAL) / ACCOUNTANT MEMBER / JUDICIAL MEMBER MUMBAI: . . ./ SRL , SR. PS I.T.A. NO.5825/MUM/2012 3 / COPY OF THE ORDER FORWARDED TO : 1. ( / THE APPELLANT 2. ) ( / THE RESPONDENT. 3. 9 ( ) / THE CIT(A)- CONCERNED 4. 9 / CIT CONCERNED 5. : )< , / < , / DR, ITAT, MUMBAI CONCERNED 6. / GUARD FILE. / BY ORDER TRUE COPY (ASSTT. REGISTRAR) / < , /ITAT, MUMBAI