Shri Mahendra Maharajwala, Surat V. The Income tax Officer,Ward-5(3), Surat

ITA 748/AHD/2010

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 60212 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-04-2012
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2006-2007
• Appeal Filed On: 10-03-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAHUL KUMAR SRDR
• Keywords: Unexplained cash credit; Peak credit

Judgement Text

, , , , , IN THE INCOME TAX APPELLATE TRIBUNAL AT AHMEDABAD, A BENCH . .. . . .. . , !'# !'# !'# !'#, , , , $ $ $ $ %&'( %&'( %&'( %&'(, , , , )* + ) )* + ) )* + ) )* + ) # # # # BEFORE S/SHRI G.C. GUPTA, VICE-PRESIDENT AND ANIL CHATURVEDI, ACCOUNTANT MEMBER) ITA NO.748/AHD/2010 [ASSTT.YEAR : 2006-2007] MAHENDRA MAHARAJWALA 9/176, PAGATHIA SHERI, WADI FALIA SURAT. PAN : ACHPM 1004 F /VS. ITO, WARD-5(3) SURAT. ( (( (-. -. -. -. / APPELLANT) ( (( (/0-. /0-. /0-. /0-. / RESPONDENT) 1& 2 3 )/ ASSESSEE BY : WRITTEN SUBMISSIONS + 2 3 )/ REVENUE BY : SHRI RAHUL KUMAR, SR.DR 5 2 &(*/ DATE OF HEARING : 6 TH MARCH, 2012 678 2 &(*/ DATE OF PRONOUNCEMENT : 04-04-2012 )9 / O R D E R PER G.C. GUPTA, VICE-PRESIDENT: THIS IS ASSESSEES APPEAL DIRECTED AGAINST THE ORDER OF THE COMMISSION ER OF INCOME TAX (APPEALS)-IV, SURAT FOR THE ASSESSMENT YEAR 2006-20 07. 2. AT THE TIME OF HEARING NONE APPEARED ON BEHALF O F THE ASSESSEE. HOWEVER, THE ASSESSEE FILED WRITTEN SUBMISSIONS WIT H THE REQUEST THAT ITA NO.748/AHD/2010 -2- ITS APPEAL BE DISPOSED OF AFTER TAKING INTO ACCOUNT THE WRITTEN SUBMISSIONS FILED BY THE ASSESSEE 3. THE ONLY GROUND RAISED IN THIS APPEAL OF THE ASS ESSEE READS AS UNDER: 1. THE LD.CIT(A) GROSSLY ERRED IN CONFIRMING THE A DDITION OF RS.12,50,000/- AS UNEXPLAINED CASH CREDIT U/S.68 OF THE ACT ON THE BASE OF TRANSACTIONS LYING IN AN UNACCOUNTED BA NK ACCOUNT WITH ICII BANK LTD. THE LD.CIT(A) OUGHT TO HAVE ES TIMATED SOME REASONABLE PROFITS ON TRANSACTIONS IN THE BANK ACCOUNT AS THE APPELLANT IS IN THE BUSINESS OF JARI TRADING. 4. THE LEARNED DR SUBMITTED THAT THE ASSESSEE HAS U NACCOUNTED BANK ACCOUNT WITH ICICI BANK AND DEPOSIT THEREIN AM OUNTING TO RS.12.50 LAKHS WAS RIGHTLY ADDED AS INCOME IN THE H ANDS OF THE ASSESSEE. HE SUBMITTED THAT THE ASSESSEE HAS SUPPR ESSED THE BANK ACCOUNT, AND THEREFORE, THE CIT(A) HAS RIGHTLY CONF IRMED THE ADDITION MADE BY THE AO. HE RELIED ON THE ORDER OF THE AO A ND THE CIT(A). 5. WE HAVE CONSIDERED SUBMISSIONS OF THE LEARNED DR AND WRITTEN SUBMISSIONS FILED BY THE ASSESSEE AND HAVE ALSO PER USED THE ORDERS OF THE AO AND THE CIT(A). WE FIND THAT THE ASSESSEE H AS UNACCOUNTED BANK ACCOUNT WITH ICICI BANK AND HAS MADE CERTAIN D EPOSITS THEREIN AND THIS FACT HAS NOT BEEN DISPUTED BY THE ASSESSEE . HOWEVER, WE FIND THAT THERE IS NO CLEAR FINDING IN THE ASSESSMENT OR DER OR IN THE APPELLATE ORDER PASSED BY THE CIT(A) THAT THE DEPOSIT OF RS.1 2.50 LAKHS IN THE BANK ACCOUNT OF THE ASSESSEE WITH ICICI BANK LTD. R EPRESENT THE TOTAL AMOUNT OF DEPOSIT MADE BY THE ASSESSEE DURING THE P ARTICULAR YEAR OR REPRESENT THE PEAK OF THE CREDIT ENTRIES DURING THE YEAR IN THE ACCOUNT. IN THE FACTS OF THE CASE, WE SET ASIDE THE ISSUE TO THE FILE OF THE AO ITA NO.748/AHD/2010 -3- WITH DIRECTION TO RECORD A CLEAR FINDING AS INDICAT ED ABOVE ON THE ISSUE THAT WHETHER THE DEPOSITS OF RS.12.50 LAKHS REPRESE NTS THE PEAK CREDITS MADE DURING THE YEAR BY THE ASSESSEE OR IS THE TOTA L OF THE CREDIT ENTRIES IN ITS BANK ACCOUNT WITH ICICI BANK LTD. WE FURTHE R DIRECT THAT ONLY PEAK CREDIT ENTRIES DURING THE RELEVANT YEAR IN THE BANK ACCOUNT ARE ADDABLE AS INCOME IN THE HANDS OF THE ASSESSEE AND NOT THE TOTAL OF THE CREDIT ENTRIES THEREIN. WE DIRECT ACCORDINGLY. 6. IN THE RESULT, THE ASSESSEES APPEAL IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN OPEN COURT ON THE DATE MENTIONE D HEREINABOVE. SD/- SD/- ( %&'( %&'( %&'( %&'( / ANIL CHATURVEDI) )* + )* + )* + )* + /ACCOUNTANT MEMBER ( . .. . . .. . /G.C. GUPTA) !'# !'# !'# !'# /VICE-PRESIDENT C OPY OF THE ORDER FORWARDED TO: 1) : APPELLANT 2) : RESPONDENT 3) : CIT(A) 4) : CIT CONCERNED 5) : DR, ITAT. BY ORDER DR/AR, ITAT, AHMEDABAD