ITO 18(1)(4), MUMBAI V. MAYA A. SATAM, MUMBAI

ITA 7008/MUM/2010

• Counselvise Citation: [2013] 140 COUNSELVISE.COM (IT) 71214 (ITAT-MUMBAI)
• Duration Of Justice: 2 year(s) 11 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-09-2013
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 25-03-2013
• Assessment Year: 2005-2006
• Appeal Filed On: 08-10-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: G S PIKALE
• Keywords: Unexplained cash credit
• Section: 154

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, MUMBAI BEFORE SRI H.L. KARWA, PRESIDENT, AND SHRI N.K.BILL AIYA, AM ./ I.T.A. NO. 7008/MUM/2010 ( / ASSESSMENT YEAR : 2005-06) THE INCOME - TAX OFFICER CIRCLE 18(1)(4), ROOM NO. 108, 1 ST FLOOR, PIRAMAL CHAMBERS, LAGBAUG, MUMBAI-400012 / VS. MRS. MAYA A.SATAM, 954-A/B PRATIPADA VEER SAWARKER ROAD, MUMBA-400028 !' $ ./ PAN :ANIPS0251J ( '% / APPELLANT ) .. ( & ''% / RESPONDENT ) '% ( ) / APPELLANT BY : SHRI MANVENDRA GOYAL &''% ( ) / RESPONDENT BY : SHRI G.S.PIKALE ( *$ / DATE OF HEARING : 11-09-2013 +, ( *$ / DATE OF PRONOUNCEMENT : 11 -09-2013 -. / O R D E R PER N.K. BILLAIYA, AM: THIS APPEAL BY THE REVENUE IS PREFERRED AGAINST THE ORDER OF THE CIT(A)- 18, MUMBAI, DATED 14/07/2008 PERTAINING TO A.Y.2005- 06. THE GRIEVANCE OF THE REVENUE RELATES TO THE DELETION OF THE ADDITION OF RS.14.47 LAKHS MADE ON ACCOUNT OF UNEXPLAINED CASH DEPOSITS IN THE BANK AC COUNT. 2. IN THIS CASE, THE ASSESSMENT WAS FRAMED U/S 143( 3) OF THE ACT VIDE ORDER DATED 28/12/2007. SUBSEQUENTLY, THE AO NOTIC ED THAT AN ADDITION U/S.68 FOR UNEXPLAINED CASH CREDIT OF RS.14.47 LAKH S, WHICH WAS DISCUSSED IN THE BODY OF THE ORDER WAS NOT ADDED TO THE TOTAL INCOME OF THE ASSESSEE. 2 ITA NO.7008/MUM/2010 MRS. MAYA A. SATAM CONSIDERING THIS AS A MISTAKE APPARENT FROM RECORD, THE AO ISSUED NOTICE U/S 154 OF THE ACT TO RECTIFY THE AFOREMENTIONED MI STAKE WHICH WAS APPARENT FROM RECORD. THE ASSESSEE FILED A DETAILED REPLY I N RESPONSE TO THE NOTICE STATING THAT A SUM OF RS.17 LAKHS WAS DEPOSITED BY CHEQUE IN COSMOS COOPERATIVE BANK LTD. PUNE, WHICH WAS OUT OF THE SA LE PROCEEDS OF THE OFFICE PREMISES SOLD IN A.Y.2004-05 AND HAS PROPERLY DISCLO SED CAPITAL GAINS IN EARLIER YEAR. THE AO OBSERVED THAT THE ASSESSEE HA S NOT OFFERED ANY SUCH INCOME IN THE RETURN FOR A.Y. 2004-05 AND ACCORDINGL Y MADE AN ADDITION OF RS.14.47 LAKHS TO THE TOTAL INCOME OF THE ASSESSEE. THE ASSESSEE CARRIED THE MATTER BEFORE THE CIT(A). THE ASSESSEE EXPLAINED TH AT THE AMOUNT DEPOSITED IN THE SAID BANK WAS OUT OF THE SALE PROCEEDS OF TH E PROPERTY. THE CIT(A) CALLED FOR A REMAND REPORT, WHICH WAS SUBMITTED BY THE AO VIDE LETTER DATED 20/06/2008. THE CIT(A) OBSERVED THAT IN THE COPY O F SAVINGS BANK PASSBOOK ACCOUNT, THE ASSESSEE HAS DEPOSITED THREE CHEQUES ON 31/03/2004. ACCORDING TO THE CIT(A), THE DEPOSIT P ERTAINS TO FINANCIAL YEAR 2003-04 RELEVANT TO A.Y. 2004-05. ACCORDINGLY, THE CIT(A) DIRECTED THE AO TO TAKE APPROPRIATE ACTION FOR THE PRECEDING YEAR AS T HE SOURCE OF THE AMOUNT TO THIS CASH DEPOSITS PERTAINS TO A.Y. 2004-05 AND DELE TED THE ADDITION MADE IN THE YEAR UNDER CONSIDERATION. 3. AGGRIEVED BY THIS REVENUE IS BEFORE US. THE LD. DR STRONGLY SUPPORTED THE ASSESSMENT ORDER, COUNSEL FOR THE ASSESSEE REIT ERATED WHAT HAS BEEN SUBMITTED BELOW. 4. WE HAVE CAREFULLY PERUSED THE ORDERS OF THE LOWE R AUTHORITIES. IT IS NOT IN DISPUTE THAT THE ALLEGED DEPOSIT PERTAINS TO F.Y.2 003-04 RELEVANT TO THE A.Y. 2004-05. THEREFORE, WE FIND THAT THE CIT(A) HA S VERY CORRECTLY DIRECTED THE AO TO TAKE APPROPRIATE ACTION IN A.Y. 2004-05. WE THEREFORE, DO NOT FIND ANY REASON TO INTERFERE WITH THE FINDINGS OF THE CI T(A), AS THE IMPUGNED ADDITION CANNOT BE MADE IN THE YEAR UNDER CONSIDERA TION. WE ACCORDINGLY DISMISSED THE APPEAL FILED BY THE REVENUE. 3 ITA NO.7008/MUM/2010 MRS. MAYA A. SATAM 5. IN THE RESULT, APPEAL FILED BY THE REVENUE IS DI SMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 11/09/2013 -. ( +, $ /- 11/09/2013 , , ( 0 SD/- (H.L.KARWA) SD/- (N.K.BILLAIYA) HONBLE PRESIDENT ACCOUNTANT MEMBER MUMBAI; /- /DATED : 11 TH SEPTEMBER, 2013. SHEKHAR. P.S. -. -. -. -. ( (( ( &*12 &*12 &*12 &*12 32 * 32 * 32 * 32 * / COPY OF THE ORDER FORWARDED TO : 1. '% / THE APPELLANT 2. &''% / THE RESPONDENT. 3. 4 ( ) / THE CIT- , MUMBAI. 4. 4 / CIT(A)- , MUMBAI 5. 250 &* , , / DR, ITAT, MUMBAI 6. 06 7 / GUARD FILE. -. -. -. -. / BY ORDER, '2* &* //TRUE COPY// 8 88 8 / 9 9 9 9 : : : : (DY./ASSTT. REGISTRAR) , / ITAT, MUMBAI