BABUL SUPRIYA BARAL, MUMBAI V. A.C.I.T. 11(1), MUMBAI

ITA 8284/MUM/2011

• Counselvise Citation: [2015] 134 COUNSELVISE.COM (IT) 2195 (ITAT-MUMBAI)
• Duration Of Justice: 4 year(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-12-2015
• Appeal Filed By: Assessee
• Bench Allotted: B
• Next Hearing Date: 19-05-2015
• Assessment Year: 2008-2009
• Appeal Filed On: 08-12-2011
• Court: TRIBUNAL
• Department Lawyers: PEEYUSH SONKAR
• Assessee Lawyers: SANJIV M SHAH
• Keywords: Unexplained investment; Additional evidence

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL B , BENCH MUMBAI BEFORE SHRI R.C.SHARMA, AM & SHRI RAM LAL NEGI , JM ./ ITA NO. 8284 / MUM/20 1 1 ( / ASSESSMENT YEAR : 200 8 - 09 ) MR. BABUL S UPRIYA BARAL, B - 54, ORCHID TOWERS, YAMUNA NAGAR, LOKHANDWALA, ANDHERI(W), MUMBAI - 43 VS. ACIT - 11(1), MUMBAI - 20 ./ ./ PAN/GIR NO. : A DZPB 6584 E ( / APPELLANT ) .. ( / RESPONDENT ) /ASSESSEE BY : SHRI SANJIV M. SHAH /REVENUE BY : SHRI PEEYUSH SONKAR / DATE OF HEARING : 0 3 / 1 2 /2015 / DATE OF PRONOUNCEMENT 09 / 12 /2015 / O R D E R PER R.C.SHARMA (A.M) : TH IS IS AN APPEAL FILED BY TH E ASSESSEE AGAINST THE ORDER OF CIT(A) - MUMBAI, DATED 31 - 10 - 2011, FOR THE ASSESSMENT YEAR 2008 - 09, IN THE MATTER OF ORDER PASSED U/S.143(3) OF THE I.T.ACT. 2. FIRST GRIEVANCE OF THE ASSESSEE RELATES TO CONFIRMING THE ADVANCE RECEIPT OF RS.9,00,000/ - RECEIVE D FROM UNIVERSAL MUSIC (I) PVT. LTD. AS INCOME OF THE ASSESSEE. FACTS IN BRIEF ARE THAT THE ASSESSEE WAS FOLLOWING CASH SYSTEM OF ACCOUNTING. DURING THE YEAR UNDER CONSIDERATION, ASSESSEE WAS IN RECEIPT OF RS.9 LAKHS FROM UNIVERSAL MUSIC (I) PVT. LTD. AS I NCOME FROM MUSIC ALBUM. THE ASSESSEE HAS SHOWN THE SAME AS ADVANCE IN THE YEAR BUT OFFERED THE SAME IN THE NEXT YEAR. BY OBSERVING ITA NO. 8284 /1 1 2 THAT ASSESSEE WAS FOLLOWING CASH SYSTEM OF ACCOUNTING, ANY AMOUNT OF INCOME RECEIPT EVEN IF ADVANCE SHOULD BE TREATED AS INCO ME, THE AO ADDED THE SAME IN ASSESSEES INCOME. SINCE THE ASSESSEE WAS FOLLOWING CASH SYSTEM OF ACCOUNTING, THE AMOUNT OF INCOME SO RECEIVED EVEN AS AN ADVANCE IS LIABLE TO BE INCLUDED IN CURRENT YEARS INCOME. HOWEVER, THE AO HAS NOT ALLOWED EXPENDITURE C ORRESPONDING TO THIS INCOME. ACCORDINGLY, WE DIRECT THE AO TO ALLOW THE EXPENDITURE ACTUALLY INCURRED FOR EARNING THIS INCOME AND ALSO WE DIRECT THE AO TO EXCLUDE RS.9.00 LACS FROM THE INCOME OF THE SUBSEQUENT YEAR WHEREIN IT WAS OFFERED BY THE ASSESSEE. W E DIRECT ACCORDINGLY. 3. GROUNDS NO S.4 TO 6 PERTAIN TO COMPUTATION OF INCOME FROM HOUSE PROPERTY IN RESPECT OF PREMISE USED BY THE ASSESSEE FOR HIS BUSINESS PURPOSE. WE FOUND THAT ASSESSEE HAS FILED ADDITIONAL EVIDENCE BEFORE THE CIT(A), WHICH GOES TO THE ROOT OF THE ISSUE FOR DETERMINING THE INCOME FROM HOUSE PROPERTY, WHICH WAS NOT ACCEPTED BY THE CIT(A). BEFORE US, THE ASSESSEE HAS ALSO FILED APPLICATION UNDER RULE 29 OF THE INCOME TAX APPELLATE TRIBUNAL RULES AND PLACED ON RECORD EVIDENCE IN RELATION TO GROUNDS NO. 4 & 5, IN RESPECT OF ADDITION TO HOUSE PROPERTY AND IN RELATION TO UNEXPLAINED INVESTMENT. ALL THESE EVIDENCE GO ES TO THE ROOT OF THE ISSUE, THEREFORE, IN THE INTEREST OF JUSTICE, GROUND NOS. 4 TO 6 ARE ALSO RESTORED BACK TO THE FILE OF THE AO FOR DECIDING AFRESH AFTER CONSIDERING THE EVIDENCE SO FILED BY THE ASSESSEE. ITA NO. 8284 /1 1 3 4 . IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED IN PART . O RDER PRONOUNCED IN THE OPEN COURT ON THIS 09 /1 2 / 201 5 . SD/ - ( R AM LAL NEGI ) SD/ - ( R.C.SHARMA ) / JUDICIAL MEMBER / ACCOUNTANT MEMBER MUMBAI ; DATED 09 /1 2 /2015 . . /PKM , . / PS / COPY OF THE ORDER FORWARDED TO : / BY O RDER, / ( ASSTT. REGISTRAR) , / ITAT, MUMBAI 1. / THE APPELLANT 2. / THE RES PONDENT. 3. ( ) / THE CIT(A), MUMBAI. 4. / CIT 5. , , / DR, ITAT, MUMBAI 6. / GUARD FILE. //TRUE COPY//