MUJEEB ALAM RAJPUT, MUMBAI V. ITO 19(3)(3), MUMBAI

ITA 7363/MUM/2013

• Counselvise Citation: [2019] 115 COUNSELVISE.COM (IT) 5193 (ITAT-MUMBAI)
• Duration Of Justice: 5 year(s) 10 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-10-2019
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: B
• Assessment Year: 2007-2008
• Appeal Filed On: 13-12-2013
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: KAVITA P KAUSHIK
• Assessee Lawyers: MUJEEB ALAM RAJPUT IN PERSON
• Keywords: Business income
• Section: 131; 68

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH B , MUMBAI BEFORE SHRI VIKAS AWASTHY, JUDICIAL MEMBER AND SHRI RAJESH KUMAR, ACCOUNTANT MEMBER ITA NO.7363/MUM/2013(A.Y. 2007-08) MR.MUJEEB ALAM RAJPUT, MAKHRANI GALLI, BEHRAM NAGAR, BANDRA(E), MUMBAI 400 051 PAN:AIUPR4891C ...... APPELLANT VS. INCOME TAX OFFICER -19(3)(3), MUMBAI ..... RESPONDENT APPELLANT BY : SHRI MUJEEB ALAM RAJPUT (AS SESSEE IN PERSON) RESPONDENT BY : MS. KAVITA P. KAUSHIK DATE OF HEARING : 18/09/2019 DATE OF PRONOUNCEMENT : 24/10/2019 ORDER PER VIKAS AWASTHY, JM: THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST TH E ORDER OF CIT(A) - 30, MUMBAI DATED 18/10/2013 FOR ASSESSMENT YEAR 2 007-08. 2. THE ASSESSEE APPEARING IN PERSON SUBMITTED THA T ASSESSEE HAD DECLARED INCOME OF RS.1,03,500/- UNDER SECTION 44AF OF THE INCOME TAX ACT,1961( HEREIN AFTER REFERRED TO AS THE ACT)IN THE RETURN. DURING THE PERIOD RELEVANT TO THE ASSESSMENT YEAR UNDER APPEAL , THE ASSESSEE WAS ENGAGED IN THE BUSINESS OF TRADING IN READYMADE GAR MENTS. CERTAIN CASH AMOUNTS WERE DEPOSITED IN THE BANK (ICICI BANK, B ANDRA(W) BRANCH) FROM SALE PROCEEDS OF THE GARMENTS. THE ASSESSIN G OFFICER MADE ADDITION OF RS.12,39,457/- UNDER SECTION 68 OF THE ACT IN RESPECT OF CASH 2 ITA NO.7363/MUM/2013(A.Y.2007-08)-09) CREDITS IN THE BANK ACCOUNT. THE ASSESSEE FILED AN APPEAL BEFORE THE CIT(A) AGAINST THE AFORESAID ADDITION. THE APPEAL OF THE ASSESSEE WAS DISMISSED BY CIT(A), HENCE, THE PRESENT APPEAL. 3. MS. KAVITA P. KAUSHIK REPRESENTING THE DEPARTMEN T VEHEMENTLY DEFENDED THE IMPUGNED ORDER. THE LD. DEPARTMENTAL REPRESENTATIVE SUBMITTED THAT ASSESSEE HAD FAILED TO EXPLAIN CAS H CREDITS IN THE SAVING BANK ACCOUNT, THEREFORE, THE ADDITION WAS SUSTAINED BY THE CIT(A), 3. WE HAVE HEARD THE SUBMISSIONS MADE BY REPRESEN TATIVES OF THE RIVAL SIDES AND HAVE PERUSED THE ORDERS OF THE AUTH ORITIES BELOW. UNDISPUTEDLY, CASH DEPOSIT TO THE TUNE OF RS.12,39, 457/- WERE MADE IN ICICI BANK ACCOUNT OF THE ASSESSEE. THE ADDITION O F AFORESAID CASH DEPOSITS WERE MADE BY THE ASSESSING OFFICER UNDER S ECTION 68 OF THE ACT. THE ASSESSEE IN HIS RETURN OF INCOME HAD DECLARED B USINESS INCOME COMPUTED UNDER SECTION 44AF OF THE ACT. IN ASSESS MENT PROCEEDINGS, THE ASSESSEE IN STATEMENT RECORDED UNDER SECTION 131 O F THE ACT EXPLAINED THAT THE DEPOSITS IN THE BANK ARE BUSINESS RECEIP TS OF THE ASSESSEE. THE ASSESSING OFFICER HAS NOT POINTED ANY OTHER SOURCE OF INCOME OF THE ASSESSEE, WHILE MAKING ADDITION OF UNEXPLAINED CA SH CREDITS UNDER SECTION 68 OF THE ACT. EXPLANATION FURNISHED BY THE ASSESSEE QUA SOURCE OF CASH DEPOSITS IN THE ABSENCE OF ANY OTHER SOURCE OF INCOME IS PLAUSIBLE. THUS, IN THE FACTS OF THE CASE WE HOLD CASH DEPOSI TS IN THE BANK ACCOUNT OF ASSESSEE ARE HIS BUSINESS RECEIPTS. CONSEQUENTLY, E NTIRE CASH CREDITS CANNOT BE CONSIDERED AS INCOME OF THE ASSESSEE. TH E CASH CREDITS IN THE BANK BEING BUSINESS RECEIPTS OF THE ASSESSEE ARE AL SO SUBJECT TO THE 3 ITA NO.7363/MUM/2013(A.Y.2007-08)-09) PROVISIONS OF SECTION 44AF OF THE ACT. THE ASSESS ING OFFICER IS DIRECTED TO TREAT CASH CREDITS AS BUSINESS RECEIPTS OF THE AS SESSEE AND ACCORDINGLY COMPUTE INCOME OF THE ASSESSEE UNDER SECTION 44AF OF THE ACT. 4. IN THE RESULT, APPEAL OF THE ASSESSEE IS PARTLY ALLOWED IN THE TERMS AFORESAID. ORDER PRONOUNCED IN THE OPEN COURT ON THURSDAY THE 24 TH DAY OF OCTOBER, 2019. SD/- SD/- (RAJESH KUMAR) (VIKAS AWASTHY) ACCOUNTANT MEMBER JUDICIAL MEMBER MUMBAI, DATED 24/10/2019 VM , SR. PS(O/S) COPY OF THE ORDER FORWARDED TO : 1. THE APPELLANT , 2. THE RESPONDENT. 3. THE CIT(A)- 4. CIT 5. DR, ITAT, MUMBAI 6. GUARD FILE. BY ORDER, //TRUE COPY// (DY./ASSTT. REGISTRAR) ITAT, MUMBAI