RAKESH KUMAR DUBEY, MUMBAI V. I.T.O. WD 20(2)(4), MUMBAI

ITA 7517/MUM/2011

• Counselvise Citation: [2013] 120 COUNSELVISE.COM (IT) 3492 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 7 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-06-2013
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Next Hearing Date: 08-05-2013
• Assessment Year: 2007-2008
• Appeal Filed On: 08-11-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAJARSHI DWIVEDI
• Keywords: Corroborative evidences

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, MUMBAI BENCH D, MUMBAI BEFORE SHRI P.M. JAGTAP, ACCOUNTANT MEMBER AND DR. S.T.M. PAVALAN, JUDICIAL MEMBER ITA NO. 7517 /MUM/2011 ASSESSMENT YEAR: 2007-08 SHRI RAKESH KUMAR DUBEY 5-106, GANESHWADI CHS LTD., BIM NAGAR, MIDC, ANDHERI (E) MUMBAI 400 059 PAN: AEDPD 5558 H VS. ITO WD 20(2) (4) MUMBAI 400012 (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI HARIDAS BHAT RESPONDENT BY : SHRI RAJARSHI DWIVEDI DATE OF HEARING : 08.05.2013 DATE OF PRONOUNCEMENT : 19.06.2013 O R D E R PER DR. S.T.M. PAVALAN, JM: THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAI NST THE ORDER LD.CIT (A) -31, MUMBAI DATED 05.09.2011 FOR THE ASSESSMENT YEAR 200 7-08. 2. THE GROUNDS OF APPEAL RELATE TO THE SOLITARY ISS UE OF AN ADDITION MADE BY THE AO TO THE TUNE OF RS.7,48,167/- ON ACCOUNT OF THE D IFFERENCE IN AIR INFORMATION AND LEDGER ACCOUNTS OF THE CUSTOMERS/CLIENTS SUBMITTED BY THE ASSESSEE AND THE SAME PARTLY CONFIRMED BY THE LD.CIT(A) TO THE TUNE OF RS .4,20,594/- 3. THE RELEVANT FACTS ARE THAT THE ASSESSEE, AN IND IVIDUAL ENGAGED IN THE PROFESSION OF PROVIDING SECURITY SERVICES/GUARDS TO VARIOUS COMPANIES LOCATED IN SEEPZ ANDHERI (EAST) IN THE RETURN OF INCOME HAD DE CLARED A TOTAL INCOME AT RS.9,59,970/-. THE CASE WAS SELECTED FOR SCRUTINY B Y THE DEPARTMENT THROUGH CASS AND ON THE BASIS THE AIR INFORMATION RECEIVED. AS P ER THE AIR INFORMATION RECEIVED BY THE REVENUE, THE SEEPZ CLIENT JEWEL GOLD HAS PAI D ASSESSEE RS.502087/- AS ITA NO. 7517 /MUM/2011 SHRI RAKESH KUMAR DUBEY ASSESSMENT YEAR: 2007-08 2 CONTRACT CHARGES FOR GUARDS WHEREAS ASSESSEE BOOKS OF ACCOUNTS SHOWED AT RS.2,50,408/- THE DIFFERENCE BEING RS.251679/- ACCO RDINGLY, THIS RECEIPTS WAS CREDITED LESS IN P&L A/C AND SAME IS ACCORDINGLY AD DED TO TAXABLE INCOME TO THE ASSESSEE. LIKEWISE IN CASE OF SANKAR JEWEL, AS PER AIR INFORMATION, THE ASSESSEE HAD RECEIVED RS.744060/- WHEREAS ASSESSEE BOOKS OF ACCO UNTS SHOWED THE RECEIPTS OF ONLY RS.343510/- AND THEREFORE DIFFERENCE RS.400550 /- WAS ADDED TO TAXABLE INCOME OF THE ASSESSEE. SIMILARLY IN CASE OF RENAISSANCE J EWELERS AS PER AIR INFORMATION THE ASSESSEE HAD RECEIVED RS.2268984/- WHEREAS ASSESSEE BOOKS OF ACCOUNTS SHOWED THE RECEIPTS OF ONLY RS.2173046/- LEASING TO A DIFF ERENCE RS.95938/- THE SAME WAS ADDED TO TAXABLE INCOME OF THE ASSESSEE. ACCORDINGL Y IN THE ASSESSMENT FRAMED, THE AO MADE THE TOTAL ADDITION TO THE TUNE OF RS.7,48,1 67/-. 3.1 ON APPEAL, THE LD.CIT(A) CONFIRMED THE ADDITION MADE ON THIS ACCOUNT TO THE EXTENT OF RS.4,20,594/- (I.E. RS.1,68,915/- IN RESP ECT TO SHANKER JEWELS LIMITED AND FURTHER RS.2,51,679/- IN RESPECT OF JEWEL GOLD) BAS ED ON THE REMAND REPORT OF THE AO AND DIRECTED THE AO TO DELETE THE BALANCE ADDITI ON. AGGRIEVED BY THE IMPUGNED ORDER, THE ASSESSEE IS IN APPEAL BEFORE US. [[ 4. BEFORE US, THE LD. AR HAS CONTENDED THAT THE AO/ CIT(A) HAS MISINTERPRETED THE RECONCILIATION DIFFERENCE AS ADMISSION OF ADDIT ION, WITHOUT UNDERSTANDING THE SUBMISSIONS AND REASONS FOR DIFFERENCE. THE AO HAS NOT MADE ANY EFFORTS TO VERIFY THE SAME DIRECTLY FROM THE PARTIES CONCERNED. THE A O HAS SIMPLY RELIED UPON THE FIGURES AS PER AIR INFORMATION AND MADE THE ADDITIO NS WITHOUT VERIFYING THE CORRECTNESS OF THE SAME. ALL THE PAYMENTS HAVE BEEN RECEIVED BY THE ASSESSEE THROUGH REGULAR BANKING CHANNELS AFTER DEDUCTION OF TAX AT SOURCE. THE BOOKS OF ACCOUNTS HAVE BEEN AUDITED AND THE AO HAS NOT FOUND ANY ANOMALY IN THE SAME, AND ACCEPTED THE BOOKS OF ACCOUNT. THE ENTRIES IN T HE BOOKS OF THE ASSESSEE ARE FURTHER CONFIRMED BY FORM 16A ISSUED BY THE PARTY. HENCE, THE ADDITION CONFIRMED BY THE LD.CIT(A) OUGHT TO BE DELETED. ON THE OTHER HAND, THE LD.DR HAS RELIED ON THE ORDER OF THE LD.CIT(A) IN SUPPORT OF THE REVENU ES CASE. ITA NO. 7517 /MUM/2011 SHRI RAKESH KUMAR DUBEY ASSESSMENT YEAR: 2007-08 3 5. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE M ATERIAL ON RECORD. AS REGARDS THE ADDITIONS CONFIRMED BY THE LD.CIT(A) TO THE TUNE OF RS.1,68,915/- IN RESPECT TO SHANKER JEWELS LIMITED AND RS.2,51,679/- IN RESPECT OF JEWEL GOLD, IT IS RELEVANT POINT OUT THAT THE ENTIRE ADDITIONS HAVE B EEN MADE/CONFIRMED MERELY ON THE BASIS OF AIR INFORMATION WITHOUT APPRECIATING THE F ACT THAT THE SAID ENTRIES ARE NEITHER CONFIRMED IN ACCOUNT COPIES NOR IN THE FORM 16. ALSO, THE ASSESSEE CANNOT BE EXPECTED TO SUBMIT ANYTHING REGARDING THE ENTRIE S WHICH DO NOT EXIST. HAVING NOTED THAT THE BOOKS OF ACCOUNTS OF THE ASSESSEE AR E AUDITED AND THE SAID PARTIES HAVE ONLY BANK TRANSACTIONS WITH THE ASSESSEE, WE A RE OF THE VIEW THAT THERE IS NO QUESTION OF ANY UNACCOUNTED TRANSACTION IN THESE CA SES. THEREFORE, THE ADDITIONS MADE/CONFIRMED BY THE LOWER AUTHORITIES MERELY ON T HE BASIS OF AIR INFORMATION WITHOUT ANY CORROBORATIVE EVIDENCES, IN OUR VIEW IS BAD IN LAW AND ACCORDINGLY WE DELETE THE ENTIRE ADDITION MADE/CONFIRMED BY THE LO WER AUTHORITIES. 6. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 19 TH DAY OF JUNE, 2013. SD/- SD/- (P.M.JAGTAP) (DR. S.T.M. PAVALAN) ACCOUNTANT MEMBER JUDICIAL MEMBER MUMBAI, DATED: 19.06.2013. *SRIVASTAVA COPY TO: THE APPELLANT THE RESPONDENT THE CIT, CONCERNED, MUMBAI THE CIT (A) CONCERNED, MUMBAI THE DR D BENCH //TRUE COPY// BY ORDER DY/ASSTT. REGISTRAR, ITAT, MUMBAI.