Shri Naresh J.Sharma, Baroda V. The Income tax Officer,Ward-5(4), Baroda

ITA 79/AHD/2011

• Counselvise Citation: [2014] 120 COUNSELVISE.COM (IT) 6070 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 5 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-06-2014
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: C
• Next Hearing Date: 09-06-2014
• Assessment Year: 2007-2008
• Appeal Filed On: 12-01-2011
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: J P JHANJID
• Keywords: Peak credit
• Section: 133(6)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD C BENCH BEFORE: SRI D.K TYAGI, JUDICIAL MEMBER AND SHRI ANIL CHATURVEDI, ACCOUNTAN T MEMBER NARESH J. SHARMA, PROP. SHRI MILAP CARRIER, PLOT NO. 536/537, SAYAJI MARKET, N.H. NO. 8, NEAR SAYAJIPURA, BARODA, PAN: AJBPS 9567 L (APPELLANT) VS THE INCOME TAX OFFICER, WARD 5((4), BARODA (RESPONDENT) REVENUE BY: SRI J.P. JHANJID, SR.D.R. ASSESSEE BY: NONE DATE OF HEARING : 09-06-2014 DATE OF PRONOUNCEMENT : 27-06-20 14 / ORDER PER : D.K. TYAGI, JUDICIAL MEMBER:- THIS IS THE ASSESSEES APPEAL AGAINST THE ORDER OF LD. CIT(A)-V, BARODA DATED 14-10-2010. ITA NO. 79/AHD/2011 ASSESSMENT YEAR 2007-08 I.T.A NO. 79/AHD/2011 A.Y. 2007-08 PAGE NO NARESH J SHARMA PROP SHRI MILAP CARRIER VS. ITO 2 2. NONE APPEARED ON BEHALF OF THE ASSESSEE DESPITE THE FACT THAT NOTICE FOR TODAYS HEARING WAS SERVED UPON HIM WHIC H IS EVIDENCED BY THE ACKNOWLEDGMENT BEING ON RECORD. SO, WE PROCEEDED T O DECIDE THE APPEAL AFTER HEARING LD. DR. 3. THE ASSESSEE HAS TAKEN FOLLOWING EFFECTIVE GROUN D;- 1. THE LD. CIT(A)-V BARODA HAS ERRED IN FACTS AND IN LAW IN CONFIRMING THE ACTION OF THE LD. AO IN ADDING THE P EAK CREDIT OF RS. 20,04,450/-, CONSIDERING THE SAME AS UNEXPLAINED CA SH / CHEQUE DEPOSITS OF THE SAVING BANK ACCOUNT MAINTAINED BY T HE APPELLANT WITH AXIS BANK AND RS. 2,82,173/-, BEING THE OPENIN G BALANCE OF SAID SAVING BANK ACCOUNT, TREATING THE SAME AS APPE LLANTS UNDISCLOSED OR UNEXPLAINED INCOME U/S. 69/69A OF TH E ACT. THE ADDITIONS OF RS. 20,04,450/- AND RS. 2,82,173/- BEI NG ERRONEOUS IN FACTS AND IN LAW IS PRAYED TO BE DIRECTED TO BE DEL ETED. 4. BRIEF FACTS OF THE CASE ARE THAT ASSESSEE IS WOR KING AS COMMISSION AGENT AND ALSO DERIVES INCOME FROM PLYING OF TRUCKS . DURING THE YEAR UNDER APPEAL ASSESSEE FILED RETURN OF INCOME DECLAR ING TOTAL INCOME OF RS. 2,18,940/- WHICH WAS PROCESSED U/S. 143(I) OF THE A CT. SUBSEQUENTLY, THE CASE WAS SELECTED FOR SCRUTINY. ON THE BASIS OF AI R COPY OF THE SAVING BANK ACCOUNT OF THE ASSESSEE WITH AXIS BANK WAS OBT AINED U/S. 133(6) OF THE ACT AND THE ASSESSEE WAS ASKED TO EXPLAIN THE O PENING BALANCE OF RS. 2,82,173/- AS ON 01-04-2006 AND THE OTHER DEPOSITS DURING THE YEAR. IT WAS ADMITTED BY THE ASSESSE DURING THE ASSESSMENT PROCE EDINGS THAT THIS BANK ACCOUNT IS NOT REFLECTED IN THE RETURN FOR ASSESSME NT YEAR 2006-07 AND 2007-08. THE ASSESSEE FURNISHED CONFIRMATION FROM SEVERAL PARTIES FROM WHOM HE HAD EARNED COMMISSION INCOME BUT IT WAS CON CEDED THAT NO BOOKS OF ACCOUNT WERE MAINTAINED. THE AO HAS OPINE D THAT THE SOURCE OF THE DEPOSITS WAS NOT CLEAR AND CONSIDERING THE NUME ROUS WITHDRAWALS AND I.T.A NO. 79/AHD/2011 A.Y. 2007-08 PAGE NO NARESH J SHARMA PROP SHRI MILAP CARRIER VS. ITO 3 DEPOSITS IN THE BANK ACCOUNT IT WOULD BE REASONABLE TO TAX THE PEAK CREDIT OF RS. 20,04,450/-. FURTHER OPENING BALANCE OF RS. 2,82,173/- OF THIS ACCOUNT WAS ALSO ADDED TO THE TOTAL INCOME OF THE A SSESSEE. 5. BEFORE LD. CIT(A) NO DETAILS WERE FILED DESPITE OPPORTUNITY BEING GIVEN VIDE NOTICES DATED 24-02-2010 AND 12-08-2010. IT HAS ALSO BEEN MENTIONED BY LD. CIT(A) IN HIS ORDER THAT THE AUTHO RIZED REPRESENTATIVE OF THE ASSESSEE SHOWED HIS INABILITY TO FURNISH ANY RE PLY/DETAILS. HE THEREFORE CONFIRMED THIS ACTION OF AO BY OBSERVING AS UNDER:- 4.3 I HAVE CAREFULLY CONSIDERED THE FACTS OF THE C ASE, THE SUBMISSIONS OF THE APPELLANT AND THE ASSESSMENT ORD ER. IT IS UNDISPUTED THAT THE SAVING BANK ACCOUNT WAS NOT DIS CLOSED TO THE DEPARTMENT FURTHER, THE ASSESSEE IS NOT MAINTAINI NG ANY BOOKS OF ACCOUNT AND HAS IN FACT DECLARED INCOME FROM PLYING OF 2 TRUCKS ON PRESUMPTIVE BASIS U/S. 44AE. THE APPELLANT ALSO F AILED TO EXPLAIN THE TRANSACTION IN THE BANK ACCOUNT AND THE SOURCE OF T HE DEPOSITS. UNDER THIS SCENARIO, THE ACTION OF THE AO IN TAXING THE PEAK C REDIT OF RS. 20,04,450/- AND THE OPENING BALANCE OF RS.2,82,173/- IS CONFIRMED. 6. BEFORE US ALSO, THE ASSESSE HAS NOT FILED ANY EV IDENCE OR DETAILS IN RESPECT OF DEPOSITS MADE BY HIM IN THE SAVING BANK ACCOUNT OF AXIS BANK, THEREFORE WE FEEL NO NEED TO INTERFERE WITH THE ORD ER PASSED BY LD. CIT(A) AND THE SAME IS HEREBY UPHELD. 7. IN THE RESULT, ASSESSEES APPEAL IS DISMISSED. ORDER PRONOUNCED IN OPEN COURT ON THE DATE MENTIONE D HEREINABOVE AT CAPTION PAGE SD/- SD/- (ANIL CHATURVEDI) ( D.K. TYAGI) ACCOUNTANT MEMBER JUDICIAL MEMBER AHMEDABAD : DATED 27/06/2014 AK I.T.A NO. 79/AHD/2011 A.Y. 2007-08 PAGE NO NARESH J SHARMA PROP SHRI MILAP CARRIER VS. ITO 4 / COPY OF ORDER FORWARDED TO:- 1. ASSESSEE 2. REVENUE 3. CONCERNED CIT 4. CIT (A) 5. DR, ITAT, AHMEDABAD 6. GUARD FILE. BY ORDER/ , / ,