Mohd. Ashraf Khan, Faizabad V. Income Tax Officer-I, Faizabad

ITA 799/LKW/2013

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 100336 (ITAT-LUCKNOW)
• Duration Of Justice: 1 year(s) 8 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-08-2015
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 29-07-2015
• Assessment Year: 2008-2009
• Appeal Filed On: 23-12-2013
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Presumptive income

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL LUCKNOW BENCH A, LUCKNOW BEFORE SHRI SUNIL KUMAR YADAV, JUDICIAL MEMBER AND SHRI A.K. GARODIA, ACCOUNTANT MEMBER ITA NO.799/LKW/2013 ASSESSMENT YEAR: 2008 09 MOHD. ASHRAF KHAN, HARIPUR, JALALABAD, FAIZABAD 224001. PAN:AUSPK4321Q VS. ITO - 1, FAIZABAD (APPELLANT) (RESPONDENT) APPELLANT BY NONE RESPONDENT BY SMT. JYOTI VERMA, SR. DR DATE OF HEARING 29/07/2015 DATE OF PRONOUNCEMENT 2 8 /08/2015 O R D E R PER A. K. GARODIA, A.M. THIS IS ASSESSEES APPEAL DIRECTED AGAINST THE ORDER OF LEARNED CIT (A) I LUCKNOW DATED 02.09.2013 FOR A.Y. 2008 09. 2. THE ASSESSEE HAS RAISED AS MANY AS 5 GROUNDS BUT THERE IS ONLY ONE GRIEVANCE OF THE ASSESSEE ABOUT CONFIRMING THE ADDITION MADE BY THE A. O. OF RS. 11,79,931/ - AS UNEXPLAINED DEPOSIT IN BANK ACCOUNT. 3. THIS APPEAL WAS FIXED FOR HEARING ON SEVERAL DATES I.E. 09.12.2014, 19.06.2015 AND 16.07.2015 IN ADDITION TO SEVERAL OTHER DATES WHEN THE BENCH DID NOT FUNCTION AND EVERY TIME, SHRI SHAILENDR A MISHRA, ADVOCATE AND AR OF THE ASSESSEE SOUGHT ADJOURNMENT AND THE HEARING WAS ADJOURNED ON HIS REQUEST. ON LAST DATE I.E. 16.07.2015, THE ADJOURNMENT WAS GRANTED TO 29.07.2015 WITH FINAL LAST OPPORTUNITY BECAUSE ON EARLIER TWO DATES, HEARING WAS ADJOUR NED WITH LAST OPPORTUNITY AND FINAL LAST OPPORTUNITY. ON THIS DATE, NONE APPEARED AND THERE IS NO REQUEST FOR ADJOURNMENT ALSO AND THEREFORE, THE APPEAL WAS HEARD EX PARTE QUA THE ASSESSEE. LEARNED DR OF THE REVENUE SUPPORTED THE ORDERS OF THE AUTHORITI ES BELOW. 4. WE HAVE CONSIDERED THE SUBMISSIONS OF LEARNED DR OF THE REVENUE. WE FIND THAT IN PARA 5.A OF HIS ORDER, IT IS OBSERVED BY LEARNED CIT (A) THAT THE 2 ASSESSEE DECLARED INCOME FROM TRADING OF BALL BEARINGS ON SMALL SCALE U/S 44AF AND CERTAIN JOB R ECEIPTS FROM REPAIRING. HE ALSO OBSERVED THAT CREDIT AND DEBIT ENTRIES WERE EXPLAINED AS PERTAINING TO HIM AND TO HIS FAMILY. HE ALSO OBSERVED THAT THE ASSESSEE NEVER DISCLOSED THAT HE HAS EARNED INCOME FROM HIRING OF SEVEN CARS/JEEPS AS TAXIS. HE ALSO O BSERVED THAT PRESUMPTIVE TAXATION IS NOT MEANT FOR THE ASSESSES WHO ARE IN THE BUSINESS OF PLYING TAXIS AND HENCE, THE ASSESSEE WAS REQUIRED TO MAINTAIN BOOKS U/S 44AA. AS PER THE ASSESSMENT ORDER, THE ASSESSEE HAS DECLARED INCOME OF RS. 117,055/ - IN THE R ETURN OF INCOME FILED BY HIM U/S 44AF IN RESPECT OF PURCHASE AND SALE OF BEARINGS. HENCE IT COMES OUT THAT IN THE RETURN OF INCOME, NO INCOME WAS DECLARED BY THE ASSESSEE ON ACCOUNT OF BUSINESS OF PLYING TAXIS AND THEREFORE, NO CREDIT CAN BE GIVEN TO THE A SSESSEE ON ACCOUNT OF TRANSACTION IN THAT BUSINESS AS BEING CLAIMED. THE TURNOVER OF PURCHASE AND SALE OF BEARINGS BUSINESS IS OF RS. 591,750/ - ONLY AS NOTED IN THE ASSESSMENT ORDER BUT THE DEPOSIT IN BANK ACCOUNT IS RS. 11,79,931/ - . EVEN IF SOME DEPOSIT I N BANK IS OUT OF PURCHASE AND SALE OF BEARINGS BUSINESS, THE ASSESSEE HAS TO ESTABLISH THAT SUCH SALES REALIZATION WAS MADE PRIOR TO DEPOSIT IN BANK AND PAYMENT OF PURCHASE IN THAT BUSINESS IS MADE OUT OF THE BANK ACCOUNT AND NOT IN CASH BECAUSE IF THE SAL E PROCEEDS IS USED IN MAKING PAYMENT FOR PURCHASES, NO CASH REMAINS TO DEPOSIT IN BANK. SINCE, THE ASSESSEE HAS NOT ESTABLISHED THAT CASH SALE IS PRIOR TO DEPOSIT IN BANK AND CASH WAS NOT USED IN MAKING PAYMENT FOR PURCHASES, THE ASSESSEE CANNOT GET ANY CR EDIT FOR CASH SALE AS SOURCE OF DEPOSIT IN BANK ACCOUNT. HENCE, WE FIND NO REASON TO INTERFERE IN THE ORDER OF CIT (A). 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS DISMISSED. (ORDER WAS PRONOUNCED IN THE OPEN COURT ON THE DATE MENTIONED ON THE CAPTION PAGE) SD/. SD/. (SUNIL KUMAR YADAV) ( A. K. GARODIA ) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 2 8 /08/2015 COPY OF THE ORDER FORWARDED TO : 1. THE APPELLANT 2. THE RESPONDENT. 3. CONCERNED CIT 4. THE CIT(A) 5. D.R., I.T.A.T., LUCKNOW ASSTT. REGISTRAR