MURAD IBRAHIM KHAN, MUMBAI V. INCOME TAX OFFICER W-23(2) (3), MUMBAI

ITA 5843/MUM/2019

• Counselvise Citation: [2021] 107 COUNSELVISE.COM (IT) 9204 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 10 month(s) 30 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-08-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Assessment Year: 2012-2013
• Appeal Filed On: 11-09-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: BHARAT ANDHLELD
• Assessee Lawyers: MAHESH SABOOLD
• Section: 143(3); 133(6); 13

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH, MUMBAI , , BEFORE HONBLE SHRI MAHAVIR SINGH, VP AND HONBLE SHRI MANOJ KUM AR AGGARWAL, AM (HEARING THROUGH VIDEO CONFERENCING MODE) ./ I.T.A. NO. 5843 /M UM/ 2019 ( / ASSESSMENT YEAR: 2012 - 13 ) M R. MURAD IBRAHIM KHAN R. NO. 9, 3 RD FLOOR PREMISES MY BUILDING NAVPADA ROAD, BANDRA (EAST), MUMBAI - 400 051 / VS. ITO 23(2)(3 ) KAUTILYA BHAVAN, BANDRA KURLA COMPLEX, BANDRA (EAST) MUMBAI - 400 051 ./ ./ PAN/GIR NO. A GZPK - 9639 - C ( / APPELLANT ) : ( / RESPONDENT ) ASSESSEE BY : SHRI MAHESH SABOO - LD. AR REVENUE BY : SHRI BH ARAT ANDHLE - LD. SR. DR / DATE OF HEARING : 10 /08 /2021 / DATE OF PRONOUNCEMENT : 10/08/2021 / O R D E R MANOJ KUMAR AGGARWAL (ACCOUNTANT MEMBER) 1. AFORESAID APPEAL BY ASSESSEE FOR ASSESSMENT YEAR (AY) 2012 - 13 ARI SES OUT OF THE ORDER OF LEARNED COMMISSIONER OF INCOME - TAX (APPEALS) - 33 , MUMBAI [CIT(A)], DATED 16/08 /20 19 IN THE MATTER OF ASSESSMENT FRAMED BY LEARNED ASSESSING OFFICER (AO) U/S 143(3) ON 31/03/2015. THE ASSESSEE IS AGGRIEVED BY CONFIRMATION OF ADDITION OF RS.45.29 LACS U/S 41(1) WITH RESPECT TO THREE ENTITIES VIZ. M/S SHREEJI 2 ENTERPRISES, M/S SHREE KRISHNA SALES AGENCY & M/S SIDDHI VINAYAK INFRA PVT. LTD. 2. THE IMPUGNED ADDITIONS WERE MADE BY LD.AO SINCE NOTICES WERE ISSUED TO THESE ENTITIES U/S 133(6) DURING ASSESSMENT PROCEEDINGS. M/S SHREEJI ENTERPRISES REPLIED THAT THEY DID NOT OWN ANY AMOUNT. M/S SHREE KRISHNA SALES AGENCY DENIED HAVING MADE ANY SALE AND PURCHASE TO THE ASSESSEE DURING THE YEAR WHEREAS NO REPLY WAS RECEIVED FROM M/S SIDDHI VINAYAK INFRA PVT. LTD. 3. THE LD. CIT(A) NOTED THAT M/S SHREEJI ENTERPRISES & M/S SHREE KRISHNA SALES AGENCY CONFIRMED NIL AMOUNT AGAINST THE ASSESSEE WHEREAS M/S SIDDHI VINAYAK INFRA PVT. LTD. CONFIRMED BALANCE OF RS.4.58 LACS AS AGAINST BALANCE OF RS.38.92 LAC S REFLECTED BY THE ASSESSEE. ACCORDINGLY, FULL ADDITIONS WERE CONFIRMED AGAINST FIRST TWO ENTITIES WHEREAS ADDITION OF RS.34.34 LACS W AS CONFIRMED AGAINST THE THIRD ENTITY. AGGRIEVED, THE ASSESSEE IS IN FURTHER APPEAL BEFORE US. 4. THE LD. AR SUBMITTED THA T FIRST TWO ENTITIES HAD REFLECTED NIL BALANCE SINCE THESE PARTIES HAD ADJUSTED THE OUTSTANDING AMOUNT IN THIS YEAR WHEREAS THE ASSESSEE HAS ADJUSTED THE SAME IN THE NEXT YEAR. SIMILARLY, THE THIRD ENTITY ADJUSTED AMOUNT OF RS.35 LACS IN THIS YEAR AS AGAIN ST THE FACT THAT THE ASSESSEE ADJUSTED THIS AMOUNT IN THE NEXT YEAR. IN SUPPORT, LEDGER EXTRACTS OF ALL THE ENTITIES HAVE BEEN PLACED ON RECORD. 5. WE FIND THAT THE ISSUE IS ONLY A MATTER OF RECONCILIATION AND WE FIND STRENGTH IN THE ARGUMENT OF LD. AR THA T THERE WAS NO REMISSION OR CESSATION OF THESE LIABILITIES. THEREFORE, WE RESTORE THE MATTER BACK TO THE FILE OF LD.AO TO REAPPRECIATE THE FACTS WITH A DIRECTION TO THE ASSESSEE TO RECONCILE THE OUTSTANDING AMOUNTS TO THE SATISFACTION OF LD.AO. 3 6. THE APP EAL STANDS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED ON 10 TH AUGUST, 2021. SD/ - SD/ - (MAHAVIR SINGH) (MANOJ KUMAR AGGARWAL) / VICE PRESIDENT / ACCOUNTANT MEMBER MUMBAI; DATED : 10/08/2021 SR.PS, DHANANJAY / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT 3. ( ) / THE CIT(A) 4. / CIT CO NCERNED 5. , , / DR, ITAT, MUMBAI 6. / GUARD FILE / BY ORDER, / (DY./ASSTT.REGISTRAR) , / ITAT, MUMBAI.