SHRI RAJEEV LOCHAN MUCHHAL, Indore V. THE ITO 1(3), Indore

ITA 904/IND/2016

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 2237 (ITAT-INDORE)
• Duration Of Justice: 11 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-08-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2008-2009
• Appeal Filed On: 01-09-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R P MOURYA
• Assessee Lawyers: AVINASH GAUR S

Judgement Text

SHRI RAJEEV LOCHAN MUCHHAL, ITA NO.904/IND/2016 ASS ESSMENT YEAR 2008-09 PAGE 1 OF 5 , , IN THE INCOME TAX APPELLATE TRIBUNAL, INDORE BENCH, INDORE .. , ..!,#$ # % BEFORE SHRI C.M. GARG, JUDICIAL MEMBER AND SHRI O.P.MEENA, ACCOUNTANT MEMBER SHRI RAJEEV LOCHAN MUCHHAL, 301 ALANKAR CHAMBERS, RATLAM KOTHI, INDORE V. INCOME TAX OFFICER, 1(3), INDORE & / APPELLANT ()& / RESPONDENT . # . ./ PAN: ACRPM66531 &* # / APPELLANT BY SHRI MANJIT SACHDEVA & AVINASH GAUR, ADVOCATES ()&* # / RESPONDENT BY SHRI R.P. MOURYA, SR. DR + !,-*$ / DATE OF HEARING 10.08.2017 ./012 *$ / DATE OF PRONOUNCEMENT 11.08.2017 ORDER PER O.P. MEENA, AM. 1. THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAIN ST THE ORDER OF LD. COMMISSIONER OF INCOME-TAX (APPEALS)-1 INDOR E[IN SHORT REFERRED TO AS THE CIT (A)] DATED 22.06.2016 PERTAI NING TO ASSESSMENT YEAR 2008-09. . . ./ I.T.A. NO.904/IND/2016 ! ,2 / ASSESSMENT YEAR: 2008-09 SHRI RAJEEV LOCHAN MUCHHAL, ITA NO.904/IND/2016 ASS ESSMENT YEAR 2008-09 PAGE 2 OF 5 2. THE ASSESSEE HAS RAISED AS MANY AS 6 GROUNDS OF APP EAL WHICH RELATES TO CONFIRMING ADDITION OF RS.4,50,000 /- MADE BY THE A.O ON ACCOUNT OF DEPOSIT IN BANK ACCOUNT CONSIDERI NG IT AS UNDISCLOSED INCOME. 3. BRIEFLY STATED THE FACTS OF THE CASE ARE THAT THE A SSESSEE HAS DEPOSITED CASH OF RS.4,00,000/- ON 10.4.2007 AND RS .4,50,000/- ON 11.04.2007 IN HIS BANK ACCOUNT. THE SOURCE OF T HE SAME WAS CLAIMED TO BE OUT OF OPENING CASH BALANCE SHOWN AS CASH IN HAND. HOWEVER, THE AO HAS CONSIDERED RS.4,00,000/- FROM T HE SAID SOURCE AND DID NOT ACCEPT RS.4,50,000/- AND ADDED THE SAME AS UNDISCLOSED INCOME. THE ASSESSEE WENT INTO THE APP EAL BEFORE THE CIT(A) WHO DID NOT ACCEPT THE CLAIM ON THE GROUND T HAT CASH BALANCE SHOWN AS RS. 26,84,049/- SHOWN AS OPENING B ALANCE AS ON 01.4.2007 IS NOT SUPPORTED BY AUDITED BOOKS OF ACCO UNTS, ACCORDINGLY THE ADDITION MADE BY THE AO WAS CONFIRM ED. 4. BEING AGGRIEVED, THE ASSESSEE FILED THIS APPEAL BEF ORE THE TRIBUNAL. THE LD. COUNSEL DREW OUR ATTENTION TO PA PER BOOK PAGE NO.11 WHICH IS A COPY OF INCOME TAX RETURN AND WHER EIN OPENING CASH BALANCE IS SHOWN AT RS.2684050/-. THE ASSESSE E HAS ALSO FILED COPY OF INCOME TAX ACKNOWLEDGEMENT RETURN AND BALANCE SHEET SHRI RAJEEV LOCHAN MUCHHAL, ITA NO.904/IND/2016 ASS ESSMENT YEAR 2008-09 PAGE 3 OF 5 APPEARING AT PAGE 22 TO 24 OF PAPER BOOK. THE ASSE SSEE HAS ALSO FILED STATEMENT OF CASH FLOW APPEARING AT PAPER BOO K PAGE-25. ACCORDINGLY IT WAS CONTENDED THAT THE CASH DEPOSIT OF RS.4,00,000/- ON 10.4.2007 AND CASH DEPOSITED OF RS.4,50,000/- ON 11.4.2007 WERE DEPOSITED OUT OF CASH AVAILABLE IN THE CASH BO OK AS PER THE CASH FLOW CHART, THEREFORE IT WAS CONTENDED THAT TH E LOWER AUTHORITIES ARE NOT JUSTIFIED IN NOT ACCEPTING THE CLAIM OF THE ASSESSEE. THE LD. COUNSEL ALSO PLACED RELIANCE IN THE CASE OF ITO WARD-2, RATLAM V/S SMT. JAISHREE CHAPRODE ITA NO.68 6/IND/2005 ITAT, INDORE BENCH, SHRI GURUMUKHDAS SALUA V/S ASST T. COMMISSIONER OF INCOME TAX (2013) 21 ITJ 168 (ITAT INDORE BENCH), SHRI DEEPENDRA THORE, MANDSAUR V/S INCOME T AX OFFICER, MANDSAUR (2005) 3 ITJ 111 (ITAT INDORE BENCH) AND O THERS AS PER HIS DETAILED SUBMISSION IN SUPPORT OF HIS CONTENTIO N. ON THE OTHER HAND, THE LD.DR POINTED OUT THAT THE AUTHENTICITY O F OPENING CASH BALANCE WAS DOUBTED BY THE AO AS BOOKS OF ACCOUNTS WERE NOT AUDITED. THEREFORE IT CANNOT BE SAID IN THE ABSENCE OF AUDITED ACCOUNTS AND BALANCE SHEET AND CASH BALANCE DETAILS AS ON 31.03.2007 AS CLOSING CASH BALANCE. HOWEVER IN REJ OINDER TO THIS, THE LD. COUNSEL STATED THAT THE RETURN OF INCOME TA X FOR THE 2007- SHRI RAJEEV LOCHAN MUCHHAL, ITA NO.904/IND/2016 ASS ESSMENT YEAR 2008-09 PAGE 4 OF 5 08 WAS FILED ON 20 TH MARCH, 2008 WHICH IS PLACED IN THE PAPER BOOK AT PAGE-20 IN WHICH THE INCOME TAX RETURN, BALANCE SHEET, AND SHOWED OPENING CASH BALANCE AS RS.4,84,049/- (PB-25 ). 5. WE HAVE CONSIDERED THE FACTS AND CIRCUMSTANCES OF T HE CASE AND FIND THAT THE ASSESSEE WAS HAVING OPENING CASH BALANCE OF RS.26,84,049/- AND OUT OF THIS CASH IN HAND AS PER CASH FLOW CHART, THE ASSESSEE HAS DEPOSITED CASH IN HIS BANK ACCOUNT ON 10.4.2007 AND 11.4.2007 AT RS.4,00,000/- AND RS.4,50,000/- RE SPECTIVELY. THEREFORE, THE SOURCE OF CASH DEPOSITED HAS BEEN PR OVED ON THE BASIS SUPPORTING DOCUMENTS FILED BY THE ASSESSEE, H ENCE WE DO NOT FIND ANY JUSTIFICATION IN THE ORDER OF THE LOWER AU THORITY TO SUSTAIN SUCH ADDITION. ACCORDINGLY, THE ADDITION MADE BY T HE AO ARE DELETED. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOWED. THE ORDER PRONOUNCED IN THE OPEN COURT ON 11.08.201 7. SD - / (C.M. GARG) SD/ - (O.P. MEENA) JUDICIAL MEMBER ACCOUNTANT MEMBER / DATED : 11 TH AUGUST, 2017 DEV/ SHRI RAJEEV LOCHAN MUCHHAL, ITA NO.904/IND/2016 ASS ESSMENT YEAR 2008-09 PAGE 5 OF 5 COPY TO: ASSESSEE/AO/PR. CIT/ CIT (A)/ITAT (DR)/GUA RD FILE. BY ORDER ASSISTANT REGISTRAR, INDORE