Abdul Aziz Khan, Betul V. ACIT , Itarsi

ITA 922/Ind/2018

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 8375 (ITAT-INDORE)
• Duration Of Justice: 1 year(s) 1 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-01-2020
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: DB
• Assessment Year: 2013-2014
• Appeal Filed On: 07-12-2018
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Keywords: Peak credit; Tax effect; Set aside
• Section: 143(3); 69A

Judgement Text

[ITA NO.922/IND/2018] [SHRI ABDUL AZIZ KHAN, BETUL] , , IN THE INCOME TAX APPELLATE TRIBUNAL INDORE BENCH, INDORE BEFORE SHRI KUL BHARAT, JUDICIAL MEMBER AND SHRI MANISH BORAD, ACCOUNTANT MEMBER ITA NO.922/IND/2018 ASSESSMENT YEAR: 2013-14 SHRI ABDUL AZIZ KHAN LOHIA WARD BETUL GANJ BETUL (M.P.) / VS. ACIT ITARSI ( APPELLANT ) ( REVENUE ) P.A. NO. ALCPK1519M APPELLANT BY SHRI ASHISH GOYAL, A.R. RESPONDENT BY SHRI ASHISH PORWAL, D.R. DATE OF HEARING: 06.01.2020 DATE OF PRONOUNCEMENT: 22.01.2020 / O R D E R PER KUL BHARAT, J.M: THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST ORDER O F THE CIT(A)-1, BHOPAL DATED 26.10.2018 PERTAINING TO TH E ASSESSMENT YEAR 2013-14. THE ASSESSEE HAS RAISED FOLLOWING GROUNDS OF APPEAL: [ITA NO.922/IND/2018] [SHRI ABDUL AZIZ KHAN, BETUL] 2 ON THE FACTS AND THE CIRCUMSTANCES OF THE CASE:- 1. THE LD. CIT(A) WAS NOT JUSTIFIED IN SUSTAINING THE ASSESSMENT ORDER, WHICH IS BAD IN LAW, VOID-AB-INITIO, BARRED BY LIMITATION, ILLEGAL, CONT RARY TO THE FACTS AND CIRCUMSTANCES OF THE CASE, LIABLE TO BE ANNULLED. (TAX EFFECT:10,10,100) 2. THE LD. CIT(A) WAS NOT JUSTIFIED IN CONFIRMING THE ADDITION OF RS.33,67,000/- MADE U/S 69A (TAX EFFECT: 10,10,100) THE APPELLANT CRAVES LEAVE TO ADD, AMEND OR MODIFY ANY OF THE GROUNDS OF APPEAL. 2. THE ONLY EFFECTIVE GROUND IN THIS APPEAL IS AGAINS T CONFIRMING THE ADDITION OF RS.33,67,000/- MADE U/S 69 A OF THE INCOME TAX ACT, 1961 (HEREINAFTER CALLED AS THE A CT). THE FACTS GIVING RISE TO THE PRESENT APPEAL ARE THAT CASE OF THE ASSESSEE WAS PICKED UP FOR SCRUTINY ASSESSMENT AND THE ASSESSMENT U/S 143(3) OF THE ACT WAS FRAMED VIDE ORDER DATED 14.3.2016. THE A.O. WHILE FRAMING THE ASSESSMEN T MADE ADDITION OF RS.33,67,000/- U/S 69 OF THE ACT IN RESPECT OF THE AMOUNT DEPOSITED IN THE AXIS BANK SAVI NGS ACCOUNT ON THE GROUND THAT THIS SAVINGS BANK ACCOUNT WAS NOT DISCLOSED IN THE BOOKS OF ACCOUNTS. AGGRIEVED AG AINST THIS, THE ASSESSEE PREFERRED AN APPEAL BEFORE LD. CIT( A), WHO AFTER CONSIDERING THE SUBMISSIONS CONFIRMED THE ADDITION. NOW THE ASSESSEE IS IN FURTHER APPEAL BEFORE THIS TRIBUNAL. [ITA NO.922/IND/2018] [SHRI ABDUL AZIZ KHAN, BETUL] 3 3. LD. COUNSEL FOR THE ASSESSEE REITERATED THE SUBMISSIONS AS MADE IN THE WRITTEN SUBMISSIONS. TH E SUBMISSIONS OF THE ASSESSEE ARE AS UNDER: [ITA NO.922/IND/2018] [SHRI ABDUL AZIZ KHAN, BETUL] 4 [ITA NO.922/IND/2018] [SHRI ABDUL AZIZ KHAN, BETUL] 5 [ITA NO.922/IND/2018] [SHRI ABDUL AZIZ KHAN, BETUL] 6 4. LD. D.R. OPPOSED THESE SUBMISSIONS AND SUPPORTED THE ORDERS OF THE AUTHORITIES BELOW. LD. D.R. SUBMI TTED THAT THE ASSESSEE COULD NOT EXPLAIN THE SOURCE OF THES E [ITA NO.922/IND/2018] [SHRI ABDUL AZIZ KHAN, BETUL] 7 DEPOSITS. IN REJOINDER, LD. A.R. SUBMITTED THAT THE RE ARE DEPOSITS AND WITHDRAWALS IN THE SAVINGS BANK ACCOUNT, EVEN IT IS ASSUMED THAT THE INITIAL DEPOSITS WERE NOT EXPLAINED BUT SUBSEQUENTLY, THE SAME AMOUNT WAS WITHDRAWN AND DEPOSITED IN THE BANK ACCOUNT, THEREFORE , THE WITHDRAWALS WERE AVAILABLE IN THE HAND OF THE ASSESSE E. HENCE, HE REQUESTED THAT PEAK CREDIT MAY BE TAKEN. 5. WE HAVE HEARD THE RIVAL SUBMISSIONS, PERUSED THE MATERIALS AVAILABLE ON RECORD AND GONE THROUGH THE ORDER S OF THE AUTHORITIES BELOW. THERE IS NO DISPUTE WITH REGARD TO THE FACTS THAT IN THE BANK STATEMENT THERE ARE DEPOSITS AND WITHDRAWALS. IN THE SUBMISSIONS AS MADE BY THE LD. COUNSEL FOR THE ASSESSEE HAS DISTINGUISHED THE CASE LA WS AS CITED BY THE LD. CIT(A) IN THE IMPUGNED ORDER. W E THEREFORE, CONSIDERING THE TOTALITY OF THE FACTS AND M ATERIAL PLACED BEFORE US, SET ASIDE THE ORDER OF THE LD. CIT( A) AND DIRECT THE A.O. TO VERIFY THE WORKING OF THE PEAK CR EDIT AS [ITA NO.922/IND/2018] [SHRI ABDUL AZIZ KHAN, BETUL] 8 SUBMITTED BY THE ASSESSEE AND RESTRICT THE ADDITION T O THE EXTENT OF SUCH PEAK CREDIT. THE GROUND RAISED IS PAR TLY ALLOWED. 6. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS PARTLY ALLOWED. ORDER WAS PRONOUNCED IN THE OPEN COURT ON 22 . 01.2020. SD/- (MANISH BORAD) SD/- (KUL BHARAT) A CCOUNTANT MEMBER JUDICIAL MEMBER INDORE; DATED : 22/01/2020 VG/SPS COPY TO: ASSESSEE/AO/PR. CIT/ CIT (A)/ITAT (DR)/GUAR D FILE. BY ORDER ASSISTANT REGISTRAR, INDORE