MUNIR MOHAMMED KHAN, MUMBAI V. ACIT CEN CIR 40, MUMBAI

ITA 7928/MUM/2011

• Counselvise Citation: [2014] 120 COUNSELVISE.COM (IT) 8192 (ITAT-MUMBAI)
• Duration Of Justice: 2 year(s) 10 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-10-2014
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 16-10-2014
• Assessment Year: 2005-2006
• Appeal Filed On: 24-11-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PREETAM SINGH
• Assessee Lawyers: HARI S RAHEJA
• Keywords: Unexplained cash credit; Business income

Judgement Text

B IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, MUMBAI BEFORE SHRI N.K. BILLAIYA, AM AND SHRI VIVEK VARMA, JM ./ I.T.A. NO.7928 TO 7931/ MUM/2011 ( / ASSESSMENT YEARS 2005-06, 2006-07, 2007-08 & 2008-0 9 SHRI MUNIR MOHAMMED KHAN, 1403, A-WING, RAJ CLASSIC BUILDING, OFF YARI ROAD, VERSOVA, ANDHERI (W), MUMBAI 400 061. / VS. ASSTT. COMMISSIONER OF INCOME TAX, CC 40, AAYAKAR BHAVAN, M.K. ROAD, MUMBAI 400 020. ./ PAN : ASGPK 3313A ( / APPELLANT ) .. ( / RESPONDENT ) A PPELLANT BY SHRI HARI S. RAHEJA DEPARTMENT BY SHRI PREETAM SINGH / DATE OF HEARING : 16-10-2014 / DATE OF PRONOUNCEMENT : 16-10-2014 [ !' / O R D E R PER N.K. BILLAIYA, A.M . : #. . $%&', ! THESE FOUR APPEALS BY THE ASSESSEE ARE DIRECTED AGA INST FOUR SEPARATE ORDERS OF THE LD. CIT(A)- 38, MUMBAI ALL DATED 30-0 8-2011 PERTAINING TO ASSESSMENT YEARS 2005-06, 2006-07, 2007-08 & 2008-09A.Y. 2007-08. 2. IN ALL THESE APPEALS COMMON SET OF FACTS ARE INV OLVED, THEREFORE, THEY WERE HEARD TOGETHER AND DISPOSED OF BY THIS COMMON ORDER FOR THE SAKE OF CONVENIENCE. 3. THE ADDITION MADE IN ALL THESE APPEALS RELATE TO THE EXCESS DEPOSITS IN THE BANK ACCOUNT AS ALLEGED BY THE A.O. IT IS THE C LAIM OF THE ASSESSEE THAT THE DEPOSITS CONSIDERED AS EXCESS ARE IN FACT TRANS FERRED FROM ONE BANK ITA 7928 TO 7931/M/11 2 ACCOUNT TO ANOTHER BANK ACCOUNTS, DEPOSITS CONSIDER ED TWICE BY THE A.O. AND CHEQUES RETURNED. 4. WE HAVE CAREFULLY PERUSED THE ASSESSMENT ORDER F OR ALL THE FOUR YEARS INVOLVED AND ALSO THE FIRST APPELLATE AUTHORITY ORD ER FOR ALL THESE YEARS. THE FACTUAL MATRIX AS EXPLAINED BY THE LD. COUNSEL FOR THE ASSESSEE CAN BE UNDERSTOOD FROM THE FOLLOWING CHART:- PARTICULARS AY 2005-06 AY 2006-07 AY 2007-08 AY 200 8-09 TOTAL RECEIPTS DECLARED IN P/L 82,86,214 1,92,15,625 3,90,80,574 9,69,03,038 STCG 1,06,338 7,29,616 LTCG 3,49,919 DIVIDEND 4,49,447 4,42,930 TOTAL RECEIPTS DECLARED IN P/L 83,92,552 1,92,15,625 4,06,09,556 9,73,45,968 LESS: EXPENSES 20,27,920 11,31,399 40,76,996 69,30,690 NET PROFIT 63,64,632 1,80,84,226 3,65,32,560 9,04,15,278 ADD: EXPENSES DISALLOWED IN THE COMPUTATION 10,64,047 5,28,685 29,02,680 66,29,032 BUSINESS INCOME DECLARED IN RETURN (A) 74,28,679 1,86,12,911 3,94,35,240 9,70,44,310 TOTAL BANK DEPOSITS AS PER AO (B) 99,82,612 1,93,79,634 4,36,07,074 10,34,26,521 DIFFERENCE ADDED AS UNEXPLAINED CREDITS U/S (B-A) 25,53,933 7,66,723 41,71,834 63,82,211 REASONS FOR DIFFERENCE INTERNAL BANK TRANSFERS NOT REDUCED BY AO 20,00,000 35,00,000 50,00,000 DCB 0104 TO BOI 9089 MK 17-08- 2004 8,00,000 DCB 0104 TO BOI 9089 MK 27-08- 2004 12,00,000 DCB 0104 TO SC 757 MK 11-08-2006 35,00,000 DCB 0104 TO BOI 9089 MK 11-12- 2007 50,00,000 CASH DEPOSIT CONSIDERED TWICE BY BANK AND RECTIFIED 7,60,000 DCB 104 DT. 15-10-2005 CHEQUES RETURNED NOT REDUCED BY AO 3,62,477 2,27,280 4,86,751 22,17,571 NET DIFFERENCE 1,91,456 -2,20,557 85,758 -8,35,360 ITA 7928 TO 7931/M/11 3 AS IS EVIDENT FROM THE AFOREMENTIONED CHART, THERE ARE CERTAIN INTER-BANK TRANSFERS AND THERE ARE CHEQUE RETURNED WHICH NEED TO BE VERIFIED. 5. IN THE INTEREST OF JUSTICE, WE SET ASIDE THE MAT TER TO THE FILE OF THE A.O. THE ASSESSEE IS DIRECTED TO EXPLAIN/RECONCILE THE A MOUNT OF EXCESS DEPOSITS CONSIDERED BY THE A.O. WHICH IS CLAIMED OF INTER-BA NK TRANSFER AND CHEQUE RETURNED. THE A.O. IS DIRECTED TO VERIFY THE RECONC ILIATION AND DECIDE THE ISSUE AFRESH AFTER GIVING A REASONABLE OPPORTUNITY OF BEI NG HEARD TO THE ASSESSEE. 6. IN THE RESULT, ALL THESE APPEALS BY THE ASSESSEE ARE TREATED AS ALLOWED FOR STATISTICAL PURPOSE. ORDER PRONOUNCED IN THE OPEN COURT ON 16 TH OCTOBER, 2014. !' ) *+ ,! - 16-10-2014 . / SD/- SD/- (VIVEK VARMA) (N.K. BILLAIYA ) JUDICIAL MEMBER ACCOUNTANT MEMBER * % MUMBAI ; ,! DATED 16-10-2014. [ .B../ R.K. , SR. PS ..0 !' # $%&' (!'% / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. C () / THE CIT)A)38, MUMBAI 4. C / CIT CENTRAL-4, MUMBAI 5. FG. BBHI , HI , * % / DR, ITAT, MUMBAI B BENCH 6. .JK L / GUARD FILE. !' ) / BY ORDER, F B //TRUE COPY// */)+ , ( DY./ASSTT. REGISTRAR) , * % / ITAT, MUMBAI