DAGINA COLLECTION P. LTD, MUMBAI V. DCIT 5(1), MUMBAI

ITA 5865/MUM/2015

• Counselvise Citation: [2017] 126 COUNSELVISE.COM (IT) 9033 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 9 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-10-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: Not Allotted
• Assessment Year: 2004-2005
• Appeal Filed On: 31-12-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: NIKESH JAIN
• Keywords: Unexplained cash credit
• Section: 143(3); 68

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL 'D' BENCH, MUMBAI BEFORE SHRI P K BANSAL, VICE PRESIDENT AND SHRI R.L. NEGI, JUDICIAL MEMBER ITA NO.5865 /MUM/2015 (ASSESSMENT YEAR: 2004-05) M/S. DAGINA COLLECTION P. LTD. VS. D C I T - 5(1) 611/612, PAREKH MARKET MUMBAI 400004 AAYAKAR BHAVAN, M.K. ROAD MUMBAI 400020 PAN AAACL0915G APPELLANT RESPONDENT APPELLANT BY: SHRI NIKESH JAIN RESPONDENT BY: SHRI PURUSHOTTAM KUMAR DATE OF HEARING: 11.10.2017 DATE OF PRONOUNCEMENT: 11.10.2017 O R D E R PER P.K. BANSAL, VICE PRESIDENT THIS APPEAL HAS BEEN FILED BY THE ASSESSEE AGAINST THE ORDER OF THE CIT(A)-10, MUMBAI DATED 10.09.2015 FOR A.Y. 2004-05 BY TAKING THE FOLLOWING GROUNDS OF APPEAL: - 1. THE COMMISSIONER OF INCOME TAX (APPEAL) 10, M UMBAI ERRED IN CONFIRMING THE ADDITION OF RS.5,04,480/- BEING CASH DEPOSITED IN ABN AMRO BANK AS UNEXPLAINED CASH CREDIT U/S 68 OF THE I.T. ACT. THE APPELLANT SUBMITS THAT IT HAS DEPOSITED THE CA SH IN ABN AMRO BANK OUT OF THE EARLIER WITHDRAWAL FROM THE BA NKS BY THE APPELLANT. THEREFORE, THE APPELLANT PRAYED THAT THE ADDITION CONFIRMED BY THE CIT(A) SHALL BE DELETED. 2. THE ONLY ISSUE INVOLVED IN THE APPEAL FILED BY THE ASSESSEE IS THAT THE AO, WHILE MAKING ADDITION IN RESPECT OF CASH DEPOSI TED IN ABN AMOR BANK AS UNEXPLAINED CASH CREDIT DID NOT CONSIDER THE EAR LIER WITHDRAWAL MADE BY THE ASSESSEE FROM THE BANS AS THE SOURCE OF THE SAID AMOUNT. 3. WE HEARD THE RIVAL SUBMISSIONS AND GONE THROUGH TH E ORDERS OF THE TAX AUTHORITIES BELOW. WE NOTED THAT THE AO CONSEQU ENCE OF THE ASSESSMENT COMPLETED UNDER SECTION 143(3) R.W.S. 25 4 ADDED A SUM OF ITA NO. 5865/MUM/2015 M/S. DAGINA COLLECTION P. LTD. 2 ` 5,04,480/- UNDER SECTION 68 OF THE INCOME TAX ACT I N RESPECT OF THE CASH DEPOSITED IN THE BANK AMOUNTING TO ` 3,00,000/- ON 29.01.2004 AND ` 2,00,000/- ON 13.02.2004. WE NOTED FROM THE COPY OF THE BANK ACCOUNT AS APPEARING UNDER PARA 4.2.1 OF THE ORDER OF THE C IT(A) THAT THE ASSESSEE HAS MADE WITHDRAWALS FROM THE SAME BANK ACCOUNT PRI OR TO THE AFORESAID DEPOSITS. THE DETAILS OF CASH WITHDRAWALS AND DEPOS ITS ARE GIVEN AS UNDER:- CASH WITHDRAWAL CASH DEPOSITED DATE AMOUNT BANK DATE AMOUNT BANK - - - 31.10.2003 4,480 ABN AMRO BANK 15.11.2003 2,00,000 ABN AMRO BANK - - - 25.11.2003 2,50,000 ABN AMRO BANK - - - - - - 29.01.2004 3,00,000 ABN AMRO BANK 15.12.2003 1,50,000 ABN AMRO BANK - - - 13.12.2003 62,000 GLOBAL TRUST BANK LTD. - - - - - - 13.02.2004 2,00,000 ABN AMRO BANK TOTAL 6,62,000 - TOTAL 5,04,480 - ON THE BASIS OF THE SAID DETAILS IT IS APPARENT THA T THE ASSESSEE MADE WITHDRAWALS OF ` 4,50,000/- PRIOR TO THE DEPOSIT OF ` 3,00,000/- AND SIMILARLY THE ASSESSEE MADE WITHDRAWAL OF ` 2,12,000/- PRIOR TO THE DEPOSIT OF ` 2,00,000/-. IN VIEW OF THIS FACT IN OUR VIEW THE AD DITION MADE BY THE AO CANNOT BE SUSTAINED AS IN OUR OPINION THE DEPOSITS IN THE BANK ARE COVERED WITHIN THE WITHDRAWAL MADE BY THE ASSESSEE PRIOR TO THAT FROM THE SAID BANK ACCOUNT. WE, THEREFORE, DELETE THE SAID ADDITI ON. 4. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE STA NDS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 11 TH OCTOBER, 2017. SD/ - SD/ - (R.L. NEGI) (P.K. BANSAL) JUDICIAL MEMBER VICE PRESIDENT MUMBAI, DATED: 11 TH OCTOBER, 2017 ITA NO. 5865/MUM/2015 M/S. DAGINA COLLECTION P. LTD. 3 COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT(A) -10, MUMBAI 4. THE PR. CIT - 5, MUMBAI 5. THE DR, D BENCH, ITAT, MUMBAI BY ORDER //TRUE COPY// ASSISTANT REGISTRAR ITAT, MUMBAI BENCHES, MUMBAI N.P.