Mauji Jewels Private Limited, New Delhi V. ITO WARD - 16(3), New Delhi

ITA 7494/DEL/2019

• Counselvise Citation: [2021] 107 COUNSELVISE.COM (IT) 5912 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-09-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2016-2017
• Appeal Filed On: 12-09-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 68

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL, DELHI SMC B ENCH, NEW DELHI [THROUGH VIDEO CONFERENCE] BEFORE SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER ITA NO. 7494/DEL/2019 [ASSESSMENT YEAR: 2016-17] MAUJI JEWELS PVT. LTD. VS. THE I.T.O 1905, 3 RD FLOOR, SHANTI NAGAR WARD 16(3) ROAD, TRI NAGAR, NEW DELHI-110035 NEW DELHI PAN: AAJCM 8364 M [APPELLANT] [RESPONDENT] DATE OF HEARING : 15.09.2021 DATE OF PRONOUNCEMENT : 15.09.2021 ASSESSEE BY : SHRI SANTANU KANUNGO, ADVOCATE REVENUE BY : SHRI R.K. GUPTA, SR. DR ORDER PER N.K. BILLAIYA, ACCOUNTANT MEMBER: THIS APPEAL BY THE ASSESSEE IS PREFERRED AGAINST TH E ORDER OF THE COMMISSIONER OF INCOME TAX [APPEALS] 6, DELHI DAT ED 10.07.2019 PERTAINING TO ASSESSMENT YEAR 2016-17. 2 2. THE SOLITARY GRIEVANCE OF THE ASSESSEE RELATES T O THE ADDITION OF RS. 7 LAKHS MADE ON ACCOUNT OF UNEXPLAINED CASH DEP OSIT IN THE BANK ACCOUNT. 3. BRIEFLY STATED, THE FACTS OF THE CASE ARE THAT D URING THE COURSE OF SCRUTINY ASSESSMENT PROCEEDINGS, THE ASSESSEE WAS A SKED TO EXPLAIN THE CASH DEPOSIT OF RS.7 LAKHS IN THE HDFC BANK ACCOUNT TRI NAGAR BRANCH NEW DELHI. 4. IN ITS REPLY, THE ASSESSEE STATED THAT THE SAID CASH HAS BEEN DEPOSITED OUT OF THE WITHDRAWALS MADE EARLIER. NECE SSARY DETAILS WERE FILED AND EXPLAINED FROM THE BANK STATEMENT. 5. THE REPLY OF THE ASSESSEE DID NOT FIND ANY FAVOU R WITH THE ASSESSING OFFICER WHO WAS OF THE OPINION THAT THE C ASH DEPOSITS MADE ON 30.3.2016 HAVE NO CO-RELATION WITH THE EARLIER D EPOSITS MADE 3 TO 6 MONTHS BACK. THE ASSESSING OFFICER FURTHER OBSERVED THAT THIS IS THE FIRST YEAR OF THE COMPANY AND NO BUSINESS TRANSACTI ONS HAVE TAKEN PLACE DURING THE YEAR. THE ASSESSING OFFICER, ACCOR DINGLY, MADE ADDITION OF RS.7 LAKHS U/S 68 OF THE ACT R.W.S 115J B OF THE ACT. 3 6. THE ASSESSEE CARRIED THE MATTER BEFORE THE LD.CI T(A) BUT WITHOUT ANY SUCCESS. 7. BEFORE ME, THE LEARNED COUNSEL FOR THE ASSESSEE DREW MY ATTENTION TO THE BANK STATEMENT AND POINTED OUT THA T RS.3 LAKHS WAS DEPOSITED BEING LOAN FROM THE DIRECTOR SHRI MAHESH VERMA AND RS.4 LAKHS WERE DEPOSITED OUT OF ADVANCES RECEIVED FROM THE CUSTOMERS. 8. THE LD COUNSEL FOR THE ASSESSEE POINTED OUT THAT THESE AMOUNTS ARE DULY REFLECTED IN THE BALANCE SHEET OF THE ASSE SSEE. IT IS THE SAY OF THE LD. COUNSEL FOR THE ASSESSEE THAT OUT OF THE SA ID DEPOSITS, THE ASSESSEE WITHDREW A SUM OF RS. 7 LAKHS WHICH WAS SU BSEQUENTLY DEPOSITED AS AMOUNT COULD NOT BE USED FOR THE PURPO SE FOR WHICH IT WAS WITHDRAWN. 9. PER CONTRA, THE LD. DR STRONGLY SUPPORTED THE FI NDINGS OF THE ASSESSING OFFICER. 10. I HAVE CAREFULLY PERUSED THE ORDERS OF THE AUTH ORITIES BELOW AND HAVE ALSO GONE THROUGH THE BANK STATEMENT, WHICH IS PLACED AT PDF PAGE 75 OF THE PAPER BOOK VIS A VIS BALANCE SHEET O F THE ASSESSEE. 4 THERE IS NO DISPUTE THAT THE ASSESSEE HAS TAKEN LOA N FROM THE DIRECTOR SHRI MUKESH VERMA AMOUNTING TO RS.3 LAKHS WHICH IS REFLECTED IN THE BALANCE SHEET UNDER THE HEAD SHORT-TERM BORROWING AND UNDER THE HEAD OTHER CURRENT LIABILITIES RS. 4,01,000/ AS A DVANCE FROM THE CUSTOMERS. FROM THE BANK STATEMENT, I FIND THAT RS. 7 LAKHS WAS WITHDRAWN BY THE ASSESSEE ON 14.12.2015 AND THE SAM E AMOUNT WAS DEPOSITED ON 30.03.2016. 11. SINCE DURING THE YEAR UNDER CONSIDERATION THE A SSESSEE HAS NOT DONE ANY BUSINESS NOR THERE IS ANY EVIDENCE ON THE RECORD TO SHOW THAT CASH WITHDRAWN BY THE ASSESSEE HAS BEEN UTILISED FO R SOME OTHER PURPOSE. I AM OF THE CONSIDERED VIEW THAT THE ASSES SEE HAS SUCCESSFULLY EXPLAINED THE SOURCE OF CASH DEPOSIT. ACCORDINGLY, I DIRECT THE ASSESSING OFFICER TO DELETE THE ADDITION OF RS.7 LA KHS. 12. IN THE RESULT THE APPEAL OF THE ASSESSEE IS ALL OWED. THE ORDER IS PRONOUNCED IN THE OPEN COURT ON 15.09. 2021 IN THE PRESENCE OF BOTH THE REPRESENTATIVES. SD/- [N.K. BILLAIYA] ACCOUNTANT MEMBER DATED: 15 TH SEPTEMBER, 2021. 5 VL/ COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) ASST. REGISTRAR, 5. DR ITAT, NEW DELHI DATE OF DICTATION 15.09.2021 DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE OTHER MEMBER DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR.PS/PS DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE DICTATING MEMBER FOR PRONOUNCEMENT DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR.PS/PS DATE ON WHICH THE FINAL ORDER IS UPLOADED ON THE WEBSITE OF ITAT DATE ON WHICH THE FILE GOES TO THE BENCH CLERK DATE ON WHICH THE FILE GOES TO THE HEAD CLERK THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT REGISTRAR FOR SIGNATURE ON THE ORDER DATE OF DISPATCH OF THE ORDER