LATE SHRI NAVNITLAL R SHAH (THROUGH LEGAL REPRESENTATIVE MRS. FIZZAH NAVNITLAL SHAH), MUMBAI V. ACIT CC 3 (3), MUMBAI

ITA 7614/MUM/2019

• Counselvise Citation: [2022] 105 COUNSELVISE.COM (IT) 6642 (ITAT-MUMBAI)
• Duration Of Justice: 2 year(s) 3 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-03-2022
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2012-2013
• Appeal Filed On: 10-12-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 143(3); 142(1); 143(1); 250; 143(2); 69A; 44AB

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH, MUMBAI BEFORE SHRI SHAMIM YAHYA, ACCOUNTANT MEMBER & SHRI PAVAN KUMAR GADALE, JUDICIAL MEMBER ITA No. 7614/Mum/2019 (A.Y: 2012-13) Late Shri Navnitlal R. Shah (through legal representative Mr. Fizzah Navnitlal Shah) M-3, 13 th Floor, Eden Hall, Dr. Annie Besant Road, Worli, Mumbai – 400018. Vs. ACIT – 3(3) Room NO. 1923, Air Indi Bldg, Nariman Point, Mumbai – 400021. लेख सं./ज आइआर सं./PAN/GIR No. : AAVPS0171R Appellant .. Respondent Appellant by : None Respondent by : Mr.C.T Mathews.Sr.AR Date of Hearing 08.03.2022 Date of Pronouncement 09.03.2022 आदेश / O R D E R PER PAVAN KUMAR GADALE JM: The assessee has filed the appeal against the order of the CIT(A)-51, Mumbai passed u/s 143(3) r.w.s 250 of the Act. The assessee has raised the following grounds of appeal: 1.1 On the facts and in the circumstances of the case and in law, the Ld. Commissioner of Income—tax (Appeals) - 51 erred in confirming the addition made on account of cash deposited in bank to the tune of Rs.26,59,000/- as unexplained money u/s 69A of the I.T. Act, ITA No. 7614/Mum/2019 Late Shri Navnitlal R Shah, Mumbai. - 2 - 1961. 1.2 The authorities below failed to appreciate the fact that the assessee has withdrawn cash from his own bank accounts and re-deposited the same in to his own bank account. Your appellant therefore prays that the addition of Rs.26,59,000/made to the income of the assessee be deleted. 2.1 On the facts and in the circumstances of the case and in law, the Ld. Commissioner of Income—tax (Appeals) - 51 erred in confirming the addition made on account of payment of credit card dues to Bank of India to the tune of Rs.8,65,612/- as unexplained money u/s 69A of the Act. 2.2 The authorities below failed to appreciate the fact that the payment of credit card dues were made from assessee's own bank account and all the money lying in the bank account were considered for the assessment of income. Your appellant therefore prays that the addition of Rs.8,65,612/- made to the income of the assessee be deleted. Your appellant craves leave to add, amend, alter, substitute or withdraw all or any of the Grounds of Appeal. 2. The brief facts of the case are that the assessee derives income from salary, income house property, income from business and income from other sources. The assessee has filed the return of income for the A.Y 2012-13 on 28.09.2012 disclosing a total income of Rs.29,61,170/- and the return of income was processed u/s 143(1) of the Act. Subsequently notice u/s 143(2) and 142(1) of the Act are issued.In compliance to the notices, the Ld. AR of the assessee appeared from time to time and submitted the details. The Assessing Officer (A.O) as per AIR information found that there are cash deposits of Rs.26,59,000/- in assessee’s savings bank account and also the payment of Rs.8,65,612/- ITA No. 7614/Mum/2019 Late Shri Navnitlal R Shah, Mumbai. - 3 - against the credit cards maintained with bank of India. The A.O has called for the sources of cash deposits, cash book and bank book and the assessee has filed details on 18.03.2015 referred at page 2 of the A.O order as under; As stated in our earlier submission dated 10 th September 2014, I hereby confirm that cash deposits aggregating to Rs. 26,59,000/- being deposited in the Bank account during the financial year ended 31 st March 2012. Copies of the bank statement highlighting the relevant entries have also been furnished. However as stated in my earlier submission, that on account of Ongoing family dispute between me and my son, I am disposed of may records such as Income Tax Returns, Property documents, bank statements, cheque books, slip books, demat statements, investment documents etc which otherwise would have helped furnishing information relating to these cash deposits. Copy of the FIR lodged to file a complaint of missing documents etc has already been filed with your office. The same is attached once again. Further, my accounts have been audited u/s 44AB of the Income Tax Act, 1961 and taxes have been paid On the basis of income determined therein. Therefore, the possibility of the above cash deposits having escaped from taxation is remote". 3. The A.O. considered the submissions and was not satisfied with the explanations and is of the opinion that the assessee could not reconcile the deposits with the sources or income offered/ accounted in the relevant Assesseement year. Finally the A.O. has treated the deposits as unexplained money u/sec69A of the Act. And on the second disputed issue with respect of credit card payments, the assessee has not offered any explanations and the A.O. has treated the payments as unexplained money U/sec69A of the Act and ITA No. 7614/Mum/2019 Late Shri Navnitlal R Shah, Mumbai. - 4 - assessed the total income of Rs. 64,85,780/- and passed order U/sec143(3) of the Act dated 20-03-2015. 4. Aggrieved by the A.O. order, the assessee has filed an appeal before the CIT(A). Whereas the CIT(A) considered the grounds of appeal, submissions of the assessee, and findings of the A.O and observed that the contentions of the assessee that documentary evidence explaining sources of cash deposits are submitted in the Assesseement proceedings but there is no reference of these facts in the A.O. order and the assessee in the appellate proceedings gave only general explanations. Hence, the CIT(A) was not satisfied with the submissions and confirmed the action of the A.O. and dismissed the assessee appeal. Aggrieved by the CIT(A) order, the assessee has filed an appeal with the Honble Tribunal. 5. We heard the Ld.DR submissions and considered the material available on record and none appeared on behalf of the assessee. On perusal of the CIT(A)order, we find at Para 5.1 of the order, the assessee has filed the submissions explaining that the assessee has filed details of credit entries in the bank account and interbank transfer of amounts in the assesses bank account and cash flow statement to substantiate the sources of cash deposits in the bank and payment of credit card payments before the Assessing officer but there are no findings on the material information of the assessee in the Assesseement order and the CIT(A) observed that no proof of filling was filed in the appellate proceedings. ITA No. 7614/Mum/2019 Late Shri Navnitlal R Shah, Mumbai. - 5 - 6. We find that, the assessee should not be deprived of his right to explain the transactions duly supported with the evidences and material information. Hence, to meet the ends of justice and the principles of natural justice, we shall provide one more opportunity of hearing to the assessee to substantiate the case on merits with the material evidences. Accordingly, we set aside the order of the CIT(A) and restore the entire disputed issue to the file of the Assessing officer to verify and examine the information filed and decide on merits.The assessee should be provided adequate opportunity of hearing and shall cooperate in submitting the information and allow the grounds of appeal for statistical purpose. 7. In the result, the appeal filed the by the assessee is allowed for statistical purposes. Order pronounced in the open court on 09.03.2022. Sd/- Sd/- (SHAMIM YAHYA) (PAVAN KUMAR GADALE) ACCOUNTANT MEMBER JUDICIAL MEMBER Mumbai, Dated 09.03.2022 KRK, PS /Copy of the Order forwarded to : 1. ल / The Appellant 2. / The Respondent. 3. सं ं आ र आ / The CIT(A) ITA No. 7614/Mum/2019 Late Shri Navnitlal R Shah, Mumbai. - 6 - 4. आ र आ ( ल) / Concerned CIT 5. "#$ % & &' , आ र ल) र*, हमद द / DR, ITAT, Mumbai 6. % -. / 0ल / Guard file. ान ु सार/ BY ORDER, स " & //True Copy// 1. ( Asst. Registrar) ITAT, Mumbai