RAMSHANKAR B. KABRA, HUF, MUMBAI V. INCOME TAX OFFICER-31(3)(1), MUMBAI

ITA 6058/MUM/2017

• Counselvise Citation: [2018] 126 COUNSELVISE.COM (IT) 0550 (ITAT-MUMBAI)
• Duration Of Justice: 4 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-01-2018
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2009-2010
• Appeal Filed On: 28-09-2017
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: N HEMALATHA
• Section: 148

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, MUMBAI BENCH SMC, MUMBAI BEFORE SHRI D.T. GARASIA, JUDICIAL MEMBER ITA NO.6058/M/2017 ASSESSMENT YEAR: 2009-10 M/S. RAMSHANKAR B. KABRA, HUF TOWER NO.4, FLAT NO.401, RUSOTOMJEE OZONE, OFF. GOREGAON MULUND LINK ROAD, GOREGAON (W), MUMBAI-400 062 PAN: AAKHR0502G VS. INCOME TAX OFFICER -31(3)(1), BANDRA KURLA COMPLEX, BANDRA (EAST) MUMBAI 400 012 (APPELLANT) (RESPONDENT) PRESENT FOR: ASSESSEE BY : NONE REVENUE BY : N. HEMALATHA, D.R. DATE OF HEARING : 20.12.2017 DATE OF PRONOUNCEMENT : 30.01.2018 O R D E R PER D.T. GARASIA, JUDICIAL MEMBER: THE PRESENT APPEAL HAS BEEN PREFERRED BY THE ASSESS EE AGAINST THE ORDER DATED 28.06.17 OF THE COMMISSIONER OF INC OME TAX (APPEALS) [HEREINAFTER REFERRED TO AS THE CIT(A)] R ELEVANT TO ASSESSMENT YEAR 2009-10. 2. THE SHORT FACTS OF THE CASE ARE THAT ASSESSEE IS A HUF AND HAS FILED ITS RETURN OF INCOME ON 01.02.10 DECLARING TO TAL INCOME OF RS.1,53,581/-. THE ASSESSEE HAS DEPOSITED CASH OF RS.11,55,000/- IN HIS SAVING BANK ACCOUNT. THE ASSESSEE WAS GIVEN SH OW CAUSE NOTICE UNDER SECTION 148 OF THE ACT AND ASSESSMENT WAS REO PENED AND ADDITION WAS MADE. ITA NO.6058/M/2017 M/S. RAMSHANKAR B. KABRA, HUF 2 3. MATTER TRAVELLED TO THE LD. CIT(A) AND THE LD. C IT(A) CONSIDERING THE SAME HAS DISMISSED THE APPEAL OF TH E ASSESSEE. 4. DURING THE COURSE OF HEARING BEFORE ME, THE ASSE SSEE DID NOT REMAIN PRESENT. THEREFORE, I HAVE NO ALTERNATIVE E XCEPT TO ENDORSE THE ACTION OF THE LD. CIT(A) WHO HAS PASSED THE ORD ER IN DETAIL BY PARAS 5.7 & 5.8 WHICH READ AS UNDER: 5.7 VIDE ORDER SHEET DATED 30/05/2017 THE ASSESSEE WAS ALSO DIRECTED TO SHOW CAUSE HOW HUGE AGRICULTURAL INCOME IS BEEN DEC LARED BY IT AND HOW THE 'BALANCE SHEET' SURPLUSES ARE BEING CLAIMED. FURTHE R THE ASSESSEE WAS ALSO CONFRONTED THAT THE KISHTBANDI KHATAUNI COPY ONLY M ENTIONS THE LAND AREA OF 8.760 ACRES OF VARIOUS JOINT OWNERS INCLUDING THE K ARTA OF THE ASSESSEE AND IS NOT THE TOTAL LANDHOLDING OF THE ASSESSEE ONLY. IN RESPONSE TO THE ABOVE, THE ASSESSEE FILED LETTER DATED 27/06/2017 WHICH WA S FILED ON 28.06.2017 ENCLOSING A PHOTOCOPY OF 'BHU ADHIKAR AVAM RIN PUST IKA (EKAKRIT) BHAG 1 AVAM BHAG 2 OF RAMSHANKAR BHIMRAJ (L SR.NO. C 02628 8). AS PER THIS THE TOTAL HOLDING OF RAMSHANKAR BHIMRAJ IS ONLY ABOUT 3 ACRES . THIS LAND HOLDING IS NOT SUFFICIENT TO GENERATE YEARLY SURPLUSES IN ANY CASE . THE ASSESSEE GAVE NO EXPLANATION ABOUT THE AGRICULTURAL INCOME, THE MANN ER OF ITS EARNING, THE SOURCE OF THE EXPENSES INCURRED, THE DETAILS OF THE AGRICULTURAL INPUTS ETC ETC. VIDE LETTER DATED 27/06/2017 THE ASSESSEE HAD FURTH ER ADMITTED THAT IT HAS NEVER SPENT ANY MONEY FOR THE MAINTENANCE, UPKEEP E TC. OF ANY OF THE COPARCENERS OR ANY OTHER MEMBER. THIS ITSELF SUPPOR TS THE VIEW THAT THAT DUE TO ITS MEAGRE LAND HOLDINGS THERE WERE NO SURPL US FUNDS AVAILABLE WITH THE HUF OVER THE YEARS AND THEREFORE THE ENTIRE CAS H DEPOSITED IN THE BANK ACCOUNT IS ONLY AN UNACCOUNTED MONEY OF THE ASSESSE E FROM AN UNDISCLOSED SOURCES. IT WAS ALSO NOTED THAT THE ASSESSEE HAD WI THDRAWN A SUM OF RS. 7,51,875/- ON 12/08/2008 FROM THE BANK ACCOUNT AND THE MONEY U LTIMATELY REACHED M/S ALUWIND ARCHITECHTURAL PVT LTD, A FAMIL Y CONCERN WHERE A SUM OF RS. 7,50,000/- WAS CREDITED IN THE NAME OF THE ASSE SSEE ON 19/08/2008. THIS GIVES THE REASON FOR DEPOSITING HUGE AMOUNT OF CASH IN THE BANK ACCOUNT OF THE ASSESSEE. THE REASON IS THAT THE FAMILY CONCERN M/S ALUWIND ARCHITECTURAL PVT LTD REQUIRED FUNDING. THIS COMPAN Y HAS ONLY 1.07,700 SHARES AND ALL THE SHARES ARE WITH THE SONS, DAUGHT ERS IN LAW, GRANDSONS ETC OF THE KARTA OF THE HUF. IN ORDER TO CREATE A SOURCE O F FUNDS WITH THE COMPANY, CASH WAS FIRST DEPOSITED IN THE BANK ACCOUNT OF THE HUE IN FY 2008-09 AND THE SAME WAS TRANSFERRED TO THE COMPANY. 5.8 THUS IT IS SEEN THAT ALL THE ARGUMENTS TAKEN BY THE ASSESSEE DO NOT SUBSTANTIATE IN ANY MANNER THE CLAIM OF THE ASSESSE E OF HAVING IN ITS POSSESSION AGRICULTURAL INCOME SURPLUSES AT ANY STA GE. IN VIEW OF THE SAME, THE GROUNDS OF APPEAL NO.1,2,3 & 4 OF THE ASSESSEE ARE DISMISSED. THE ADDITION OF RS.10,01,419/- IS HELD TO BE THE UNACCO UNTED MONEY OF THE ITA NO.6058/M/2017 M/S. RAMSHANKAR B. KABRA, HUF 3 ASSESSEE AND THE SAME IS DIRECTED TO BE BROUGHT TO TAX UNDER SECTION 69A OF THE ACT. 5. IN THE RESULT, APPEAL OF THE ASSESSEE IS DISMISS ED. ORDER PRONOUNCED IN THE OPEN COURT ON 30.01.2018. SD/- (D.T. GARASIA) JUDICIAL MEMB ER MUMBAI, DATED: 30.01.2018. * KISHORE, SR. P.S. COPY TO: THE APPELLANT THE RESPONDENT THE CIT, CONCERNED, MUMBAI THE CIT (A) CONCERNED, MUMBAI THE DR CONCERNED BENCH //TRUE COPY// [ BY ORD ER DY/ASSTT. REGISTRAR, ITAT, MUMBAI.