The ITO, Ward-6(2), Ahmedabad V. Shri Shrenik Kiritlal Sheth, Ahmedabad

ITA 594/AHD/2014

• Counselvise Citation: [2018] 126 COUNSELVISE.COM (IT) 6250 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 10 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-01-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Next Hearing Date: 05-07-2017
• Assessment Year: 2008-2009
• Appeal Filed On: 27-02-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: V K SINGH
• Assessee Lawyers: U S BHATI
• Keywords: Unexplained investment; Business income; Income from undisclosed sources; Corroborative evidences
• Section: 68; 69

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD D BENCH (BEFORE SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER & SHRI MAHAVIR PRASAD, JUDICIAL MEMBER) ITA. NO: 594/AHD/2014 (ASSESSMENT YEAR: 2008-09) THE ITO WARD-6(2), AHMEDABAD V/S SHRI SHRENIK KIRTILAL SHETH M/S. RAJENDRA MOBILE POINT, 10, OXFORD TOWER, NR. JANTA ICECREAM, GURUKUL ROAD, AHMEDABAD-380052 (APPELLANT) (RESPONDENT) PAN: ATBPS9714R APPELLANT BY : SHRI V.K. SINGH, SR. D.R. RESPONDENT BY : SHRI U.S. BHATI, A.R. ( )/ ORDER DATE OF HEARING : 03 -01-201 8 DATE OF PRONOUNCEMENT : 08-01-2018 PER N.K. BILLAIYA, ACCOUNTANT MEMBER 1. THIS APPEAL BY THE REVENUE IS PREFERRED AGAINST THE ORDER OF THE LD. CIT(A)-II, AHMEDABAD DATED 11.12.2013 PERTAINING TO A.Y. 2008- 09. ITA NO. 594/ AGD/2014 . A.Y. 2008-09 2 2. THE SUBSTANTIVE GRIEVANCE OF THE REVENUE READS AS U NDER:- 1. THE ID. CIT(A) HAS ERRED IN LAW AND ON FACTS IN DEL ETING THE ADDITION OF RS.45,00,000/- MADE BY THE A.O. UNDER SECTION 69 O F THE ACT (THOUGH IT OUGHT HAVE BEEN MADE U/S.68 OF THE ACT, IF SUSTAINED). 2. THE ID. CIT(A) HAS FURTHER ERRED IN LAW AND ON FACT S IN DELETING THE ADDITION OF RS.14,91,900/- MADE BY THE A.O. UNDER SECTION 68 OF THE ACT TREATING H SAME AS INCOME FROM UNDISCLOSED SOURCES. 3. THE ASSESSEE FILED THE RETURN OF INCOME ON 15.05.20 08 SHOWING TOTAL INCOME OF RS. 2,34,890/-. THE RETURN WAS SELECTED FOR SCRUTIN Y ASSESSMENT AND ACCORDINGLY STATUTORY NOTICES WERE ISSUED AND SERVED UPON THE A SSESSEE. ON THE BASIS OF THE AIR INFORMATION, THE ASSESSEE WAS ASKED TO EXPLAIN THE SOURCE OF INVESTMENT OF RS. 1.80 CRORES IN PURCHASE OF IMMOVABLE PROPERTY W ITH SUPPORTING EVIDENCES AND SOURCE OF CASH DEPOSITS OF RS. 14.91 LACS IN CO SMOS CO-OP. BANK. ON RECEIVING NO PLAUSIBLE REPLY, THE A.O. PROCEEDED BY COMPLETING THE ASSESSMENT ON THE BASIS OF MATERIAL AVAILABLE ON RECORD. 4. ON VERIFICATION OF THE DETAILS SUBMITTED BY SUB-REG ISTRAR, THE A.O. FOUND THAT THE ASSESSEE HAS MADE PURCHASE OF IMMOVABLE PROPERT Y WORTH RS. 45 LACS ONLY. CONSIDERING THE CLARIFICATION OF THE SUB-REGISTRAR, THE A.O. TREATED RS. 45 LACS AS UNEXPLAINED INVESTMENT U/S. 69 OF THE ACT. 5. PROCEEDING FURTHER, ON RECEIVING NO PLAUSIBLE REPLY RELATING TO THE SOURCE OF CASH DEPOSITS OF RS. 14.91 LACS IN COSMOS CO-OP. BA NK, THE A.O. TREATED THE ENTIRE AMOUNT AS INCOME FROM UNDISCLOSED SOURCES AN D ADDED THE SAME TO THE TOTAL INCOME OF THE ASSESSEE U/S. 68 OF THE ACT. ITA NO. 594/ AGD/2014 . A.Y. 2008-09 3 6. ASSESSEE CARRIED THE MATTER BEFORE THE LD. CIT(A) A ND EXPLAINED THAT INVESTMENT OF RS. 45 LACS WERE MADE IN TWO SHOPS IN OXFORD TOWER, GURUKUL ROAD, AHMEDABAD WHEREIN THE ASSESSEE FURNISHED THE DETAILS OF SOURCES FOR INVESTMENT. THE LD. CIT(A) SENT THE MATTER TO THE A .O. CALLING FOR REMAND REPORT. 7. AFTER CONSIDERING THE DETAILS FURNISHED BY THE ASSE SSEE AND THE REMAND REPORT, THE LD. CIT(A) WAS CONVINCED WITH THE SOURCES OF IN VESTMENT AND ACCORDINGLY DIRECTED THE A.O. TO DELETE THE ADDITION. 8. A PERUSAL OF THE RECORD SHOWS THAT THE ASSESSEE HAS TAKEN RS. 36,00,000/- FROM COSMOS CO-OP. BANK AND THE BALANCE RS. 9,00,000/- W AS FOUND TO BE DULY RECORDED IN THE CASH BOOK AND BANK ACCOUNT OF THE A SSESSEE. SINCE THE SOURCE OF INVESTMENT IN THE PROPERTY OF RS. 45 LACS IS FOU ND TO BE EXPLAINED AND DULY RECORDED IN THE BOOKS OF ACCOUNTS, WE DO NOT FIND A NY REASON TO INTERFERE WITH THE FINDINGS OF THE LD. CIT(A). GROUND NO. 1 IS ACC ORDINGLY DISMISSED. 9. THE SECOND GRIEVANCE RELATES TO THE DELETION OF THE ADDITION ON ACCOUNT OF CASH FOUND TO BE DEPOSITED IN THE BANK ACCOUNT AMOUNTING TO RS. 14.91 LACS. 10. BEFORE THE LD. CIT(A), THE ASSESSEE EXPLAINED THAT IS DERIVING MAJOR BUSINESS RECEIPTS IN CASH FROM SIM CARD RECHARGES. IT WAS EX PLAINED THAT IN THIS LINE OF BUSINESS, THE MOBILE USER ALWAYS PAYS CASH FOR RECH ARGES OF SIM CARD. IT WAS FURTHER EXPLAINED THAT THE BANKS STARTED DEBITING B ANK CHARGES ON ACCOUNT OF CASH DEPOSIT EXCEEDING RS. 1,00,000/- IN CURRENT AC COUNT AND TO AVOID SUCH BANK CHARGES, THE ASSESSEE STARTED DEPOSITING CASH IN HIS SAVINGS BANK ACCOUNT AND SINCE THERE WAS DEPOSIT OF MORE THAN RS. 10 LAC S IN CASH IN THE SAVINGS BANK ACCOUNT. IT WAS REFLECTED IN THE AIR INFORMAT ION. ITA NO. 594/ AGD/2014 . A.Y. 2008-09 4 11. THE FIRST APPELLATE AUTHORITY EXAMINED THE CASH BOO K IN THE PRESENCE OF THE A.O. ON 28/11/2013 AND FOUND THE SOURCES OF CASH DE POSIT FULLY EXPLAINED IN THE BOOKS OF ACCOUNT AND ACCORDINGLY THE ADDITIONS WERE DELETED. 12. WE FIND THAT IN A.OS PRESENCE THE ENTRIES WERE VER IFIED AND FOUND CORRECT. THEREFORE, NO INTERFERENCE IS CALLED FOR. GROUND NO . 2 IS ACCORDINGLY DISMISSED. 13. IN THE RESULT, THE APPEAL FILED BY THE REVENUE IS D ISMISSED. ORDER PRONOUNCED IN OPEN COURT ON 08- 01- 20 18 SD/- SD/- (MAHAVIR PRASAD) (N. K. BILLAIYA) JUDICIAL MEMBER TRUE COPY ACCOUNTANT MEMBER AHMEDABAD: DATED 08/01/2018 RAJESH COPY OF THE ORDER FORWARDED TO: - 1. THE APPELLANT. 2. THE RESPONDENT. 3. THE CIT (APPEALS) 4. THE CIT CONCERNED. 5. THE DR., ITAT, AHMEDABAD. 6. GUARD FILE. BY ORDER DEPUTY/ASSTT.REGISTRAR ITAT,AHME DABAD