NAGNATH MANERA, THANE V. ITO WD 3(1), THANE

ITA 7597/MUM/2013

• Counselvise Citation: 759719914 RSA 2013
• Duration Of Justice: 1 year(s) 5 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-05-2015
• Appeal Filed By: Assessee
• Bench Allotted: B
• Assessment Year: 2004-2005
• Appeal Filed On: 26-12-2013
• Court: TRIBUNAL
• Department Lawyers: PAVAN KUMAR BEERLA SR
• Assessee Lawyers: KISHORE K PODDAR
• Keywords: Source of fund
• Section: 147; 148; 144

Judgement Text

IN THE INCO ME TAX APPELLATE TRIBUNAL B BENCH, MUMBAI BEFORE SHRI G.S. PANNU, ACCOUNTANT MEMBER AND SHRI SANJAY GARG, JUDICIAL MEMBER ./I.T.A. NO.7597/M/2013 ( AY: 2004 - 2005 ) SHRI NAGNATH MANERA, OM NAMAHSHIVAY BLDG., WAGHIBIL, GHODHBUNDER ROAD, THANE 400 607. / VS. ITO WARD 3(1), R.NO.3, B WING, 6 TH FLOOR, ASHAR IT PARK AMBIKA NAGAR, WAGLE ESTATE, THANE. ./ PAN : AKPPM0710N ( / APPELLANT) .. ( / RESPONDENT ) / APPELLANT BY : SHRI KISHORE K PODDAR / RESPONDENT BY : SHRI PAVAN KUMAR BEERLA, SR. AR / DATE OF HEARING : 28.5 .2015 / DATE OF PRONOUNCEMENT :29 .5.2015 / O R D E R PER G.S. PANNU, AM : THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER PASSED BY THE CIT (A) - 3, MUMBAI DATED 23.8.2013 FOR THE ASSESSMENT YEAR 2004 - 2005 IN THE MATTER OF ORDER PASSED BY THE ASSESSING OFFICER U/S 147 R.W.S 144 OF THE INCOME TAX ACT 1961 (IN SHORT THE ACT), DATED 22.12.2009. 2. IN THIS APPEAL, THE ONLY GRIEVANCE OF THE ASSESSEE IS AGAINST THE ACTION OF THE CIT (A) IN RETAINING THE ADDITION OF RS. 4,04,030/ - OUT OF TOTAL ADDITION OF RS. 14,04,030/ - MADE BY THE ASSESSING OFFICER PERTAINING TO THE DEPOSITS FOUND IN THE BANK ACCOUNT OF THE ASSESSEE. 3. BRIEFLY PUT, THE RELEVANT FACTS ARE THAT THE ASSESSEE IS AN INDIVIDUAL IN WHOSE CASE THE AIR INFORMATION WAS RECEIVED BY THE ASSESSING OFFICER ON THE BASIS OF WHICH A NOTICE U/S 148 OF THE ACT WAS ISSUED WITH RESPECT TO THE ASSESSMENT YEAR 2004 - 2005. THE ASSESSING OFFICER ISSUED SHOW CAUSE NOTICE REQUIRING THE ASSESSEE TO EXPLAIN VARIOUS DEPOSITS FOUND TO HAVE BEEN MADE IN TWO BANK ACCOUNTS STANDING IN THE NAME OF THE ASSESSE S WITH PARSIK JANATA SA HAKARI BANK LTD, KALWA, THANE AS PER THE DETAILS EXTRACTED BY THE ASSESSING OFFICER IN THE ASSESSMENT ORDER. IN THE 2 ABSENCE OF ANY EXPLANATION FORTHCOMING FROM THE ASSESSEE, THE ASSESSING OFFICER TREATED THE TOTAL DEPOSITS IN THE BANK ACCOUNTS OF RS. 14,0 4,030/ - AS THE ESTIMATED INCOME OF THE ASSESSEE. ACCORDINGLY, THE TOTAL INCOME OF THE ASSESSEE WAS ASSESSED AT RS. 14,04,030/ - IN THE ASSESSMENT FINALIZED U/S 147 R.W.S 144 OF THE ACT. 4. IN APPEAL, ASSESSEE EXPLAINED THE HIS GRANDFATHER WAS OWNER OF AN A GRICULTURAL LAND SITUATED AT WAGHBIL ROAD, THANE (W), WHICH HE SOLD ON 17.5.2004 TO M/S. V.R. CONSTRUCTION PVT. LTD., FOR A SUM OF RS. 1.45 CRS. IT WAS EXPLAINED THAT THE DEPOSITS IN THE TWO BANK ACCOUNTS RELATED TO THE SALE PROCEEDS RECEIVED FROM M/S. V. R. CONSTRUCTION PVT. LTD., IN ADVANCE. THE SUBMISSIONS AND THE MATERIAL PUT FORTH BY THE ASSESSEE WERE FORWARDED BY THE CIT (A) TO THE ASSESSING OFFICER FOR HIS COMMENTS. THE ASSESSING OFFICER PARTLY AGREED TO THE CONTENTION OF THE ASSESSEE INASMUCH AS A CCORDING TO HIM OUT OF THE TOTAL DEPOSITS OF RS. 14,04,030/ - , THE DEPOSITS TO THE TU NE OF RS. 10 LAKHS WERE ACCEPTABLE AS HAVING BEEN RECEIVED FROM M/S. V.R. CONSTRUCTIONS PVT. LTD., AS ADVANCE SALE PROCEEDS. WITH REGARD TO THE BALANCE AMOUNT OF RS. 4,04, 030/ - , THE EXPLANATION OF THE ASSESSEE WAS THAT THE SAME REPRESENTED ROTATION OF MONEY OUT OF THE SAID RECEIPTS FROM M/S. V.R. CONSTRUCTIONS PVT. LTD. THE LATTER EXPLANATION OF THE ASSESSEE WAS NOT ACCEPTED BY THE ASSESSING OFFICER. ON THE BASIS OF THE A FORESAID REMAND REPORT OF THE ASSESSING OFFICER AND THE MATERIAL PUT FORTH BY THE ASSESSEE BEFORE HIM, THE CIT (A) DELETED THE ADDITION OF RS. 10 LAKHS. WITH REGARD TO THE BALANCE OF RS. 4,04,030/ - , THE CIT (A) DID NOT ACCEPT THE EXPLANATION FURNISHED BY THE ASSESSEE ON THE GROUND THAT THE ASSESSEE COULD NOT PROVIDE THE DETAILS OF THE SOURCES OF DEPOSITS AND HE REJECTED THE PLEA OF THE ASSESSEE THAT IT WAS MERELY A ROTATION OF THE MONEY OUT OF THE RECEIPTS FROM M/S. V.R. CONSTRUCTIONS PVT. LTD. IN THIS MA NNER, THE CIT (A) RETAINED AN ADDITION OF RS. 4,04,030/ - , AGAINST WHICH THE ASSESSEE IS IN FURTHER APPEAL BEFORE US. 5. BEFORE US, LD REPRESENTATIVE FOR THE ASSESSEE VEHEMENTLY POINTED OUT THAT THE ASSESSEE HAD NO SOURCES OF INCOME EXCEPT THE AGRICULTURAL ACTIVITY AND THE AMOUNTS RECEIVED FROM THE TRANSACTION OF SALE OF LAND OWNED BY HIS GRANDFATHER AT WAGHBIL ROAD, THANE (W). IN THE COURSE OF HEARING, SUMMARY OF THE BANK ACCOUNTS HAVE BEEN FURNISHED WHEREIN IT IS POINTED OUT THAT THE SEVEN ENTRIES WHICH H AVE NOT BEEN ACCEPTED BY THE CIT (A) WERE CLEARLY EXPLAINED BY RE - DEPOSITING OF WITHDRAWAL OF MONEY P RIOR TO SUCH DEPOSITS. THE LD REPRESENTATIVE EXPLAINED THAT THE MONEYS 3 HAVE BEEN MERELY ROTATED I.E., AMOUNTS HAVE BEEN WITHDRAWN AND THEREAFTER RE - DEPOSITED AND NO INDEPENDENT SOURCE OF INCOME CAN BE ATTRIBUTED TO THE ASSESSEE. 6. ON THE OTHER HAND, LD DR HAS DEFENDED THE ORDER OF THE AUTHORITIES BELOW BY POINTING OUT THAT THE ASSESSEE COULD NOT EXPLAIN THE DETAILS OF THE AMOUNT CREDITED TO THE EX TENT OF RS. 4,04,030/ - IN THE BANK ACCOUNTS. 7. WE HAVE CAREFULLY CONSIDERED THE RIVAL SUBMISSIONS. QUITE CLEARLY IN THE PRESENT CASE, THE TRANSACTIONS IN THE BANK ACCOUNTS ARE PRIMARILY RELATING TO THE ADVANCE SALES PROCEEDS RECEIVED AGAINST SALE OF LA ND FROM M/S. V.R. CONSTRUCTION PVT. LTD., A FACT SITUATION, WHICH HAS BEEN ADMITTED BY THE LOWER AUTHORITIES. IN THIS BACKGROUND, IF ONE IS TO EXAMINE THE PLEAS OF THE ASSESSEE WITH REGARD TO THE CREDITS AMOUNTING TO RS. 4,04,030/ - , IT IS FOUND THAT THE S AME HAVE SOUGHT TO BE EXPLAINED AS MERE ROTATION OF THE PROCEEDS RECEIVED FROM M/S. V.R. CONSTRUCTION PVT. LTD. IN THIS CONTEXT, WE HAVE PERUSED THE COPY OF THE BANK ACCOUNT FURNISHED AT THE TIME OF HEARING AND FIND THAT TWO OF THE DEPOSITS I.E., 25,000/ - ON 12.2.2004 AND RS. 44,530/ - ON 24.2.2004 ARE STATED TO HAVE BEEN RECEIVED FROM ROMA BUILDERS. EXCEPT THE AFORESAID, THE OTHER AMOUNTS OF THE IMPUGNED CREDITS ARE STATED TO BE CASH DEPOSITS OR TRANSFERS. THE LATTER ENTRIES WERE SOUGHT TO BE EXPLAINED A S RE - DEPOSITS OF AMOUNTS WITHDRAWN FROM THE BANK ACCOUNTS ON EARLIER DATES. IN OUR CONSIDERED OPINION, THE CASH WITHDRAWALS HAVE BEEN MADE BY THE ASSESSEE F ROM THE TWO BANK ACCOUNTS ON PROXIMATE DATES PRIOR TO SUCH DEPOSITS AND THE EXPLANATION OF THE ASSE SSEE IS ACCEPTABLE. SO, HOWEVER, IN SO FAR AS THE CREDITS OF RS.25,000/ - AND RS. 44,530/ - IN THE NAME OF THE ROMA BUILDERS IS CONCERNED , IN THE ABSENCE OF ANY EXPLANATION, THE SAID ADDITION IS RETAINED AND THE BALANCE IS DIRECTED TO BE DELETED. THUS, ASS ESSEE PARTLY SUCCEEDS IN THIS APPEAL. 8. IN THE RESULT, APPEAL OF THE ASSESSEE IS PARTLY ALLOWED. ORDER PRONO UNCED IN THE OPEN COURT ON 29 TH MAY, 2015. SD/ - SD/ - ( SANJAY GARG ) ( G.S. PANNU ) JUDI CIAL MEMBER ACCOUNTANT MEMBER MUMBAI ; 29 .5 .2015 . . ./ OKK , SR. PS 4 / 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 . //TRUE COPY// / BY ORDER, / (DY./ASSTT. REGISTRAR) , / ITAT, MUMBAI