MOHAMMED JUNAID YUSUF RINDANI,MUMBAI V. WARD25(2)(1), MUMBAI, MUMBAI

ITA 6860/MUM/2024

AI Insights

The case involves Mohammed Junaid Yusuf Rindani, who appealed against the order of the National Faceless Assessment Centre (NFAC), Delhi, which had made an addition of Rs.68,83,300 to his income for the Assessment Year 2014-15 under section 69A of the Income Tax Act, concerning unexplained cash deposits in his bank account. The AO had issued a notice under section 148, claiming that the assessee had not filed a return for the said assessment year and had made substantial cash deposits. The assessee contended that he had filed his return and provided bank statements and a cash book substantiating the deposits were from his business of labor contracts. The CIT(A) dismissed the appeal ex-parte, leading to the current appeal before the Tribunal.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 126035 (ITAT-MUMBAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-04-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Assessment Year: 2014-2015
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R.R. MAKWANA
• Assessee Lawyers: ASHOK SHARMA
• Keywords: Business income

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL, ‘D’ BENCH MUMBAI BEFORE: SHRI AMIT SHUKLA, JUDICIAL MEMBER & SHRI GIRISH AGRAWAL, ACCOUNTANT MEMBER ITA No.6860/Mum/2024 (Assessment Year :2014-15) Mohammed Junaid Yusuf Rindani 2nd Floor, Room No.209 95, Memonwada Road Maharashtra-400 003 Vs. ITO-Ward 25(2)(1), Mumbai / National e- Assessment Centre, Delhi PAN/GIR No.AGWPR1344N (Appellant) .. (Respondent) Assessee by Shri Ashok Sharma Revenue by Shri R.R. Makwana, Addl. CIT Date of Hearing 09/04/2025 Date of Pronouncement 22/04/2025 आदेश / O R D E R PER AMIT SHUKLA (J.M): The aforesaid appeal has been filed by the assessee against order dated 29/10/2024 passed by NFAC, Delhi for the quantum of assessment passed u/s.147 for the A.Y.2014-15. 2. In the grounds of appeal, assessee has challenged the addition of Rs.68,83,300/- made u/s.69A in respect of cash deposits in bank. ITA No. 6860/Mum/2024 Mohammed Junaid Yusuf Rindani 2 3. The brief facts are that the ld. AO has issued a notice u/s.148 on 31/03/2021 stating that assessee has not filed return of income for A.Y.2014-15 and as per the information received on insight portal of the department, assessee has entered into financial transaction wherein there were cash deposits in the bank account for sum of Rs.68,83,300/- since there was no reply and no return of income was filed by the assessee, the ld. AO made the entire addition in the cash deposits. 4. Before the ld. CIT (A) it was stated that assessee is engaged in the business of labour contracts and has filed return of income offline mode on 31/03/2015, the copy of which was submitted before the ld. AO also. Further, it was stated that assessee in response to the show-cause notice before the AO has filed offline copy of ITR alongwith bank statement and also made further submissions in reply to the show-cause notice which included cash book, cash flow bank statement and copy of ITR. The assessee has also asked for video hearing which was denied by the AO. However, the ld. CIT (A) noted that despite multiple opportunities, assessee has not furnished any details nor any adjournment application. Accordingly, he has dismissed the appeal exparte stating that upholding appeal made by the ld. AO. 5. Before us ld. Counsel submitted that assessee could not receive the notices through e-mail and assessee was not aware of the notices which were sent through e-mail. However, before the ld. AO assessee had submitted the bank statement from which it ITA No. 6860/Mum/2024 Mohammed Junaid Yusuf Rindani 3 can be seen that only Rs.25,29,700/- was deposited in the bank account and not Rs.68,83,300/-, therefore, the addition made by the ld. AO itself is unanimous. Further, all these deposits are duly substantiated by the cash book wherein assessee had disclosed his business income from labour contract business. 6. After considering the relevant material placed on record, it is seen that ld. AO has noted that no reply / return of income has been filed where as in the statement of facts filed before the ld. CIT (A) it has been stated that assessee has filed return of income off line on 31/03/2015 alongwith bank statement of both the bank accounts with Jammu & Kashmir bank being account No.906 and 1317. None of these documents furnished offline has been considered by the ld. AO. From the perusal of the statement, it is seen that the total cash deposits are only Rs.25,29,700/- on various dates which are as under:- Date Bank A/c A/c No. Amount 03-04-2013 Jammu & Kashmir Bank 906 500000 09-04-2013 Jammu & Kashmir Bank 906 28000 18-04-2013 Jammu & Kashmir Bank 906 123000 02-05-2013 Jammu & Kashmir Bank 906 59000 09-05-2013 Jammu & Kashmir Bank 906 68200 29-06-2013 Jammu & Kashmir Bank 906 150000 17-08-2013 Jammu & Kashmir Bank 906 100000 ITA No. 6860/Mum/2024 Mohammed Junaid Yusuf Rindani 4 11-07- 2013 Jammu & Kashmir Bank 1317 20000 12-11- 2013 Jammu & Kashmir Bank 1317 14200 13-12- 2013 Jammu & Kashmir Bank 1317 23000 Total 57200 7. Further, before us ld. Counsel also filed the summary of cash book which is as under:- PARTICULARS AMOUNT PARTICULARS AMOUNT OPENING BALANCE B/F 5,89,121.21 CAPITAL WITH MRK ENTERPRISES 8,25,000.00 04-09-2013 Jammu & Kashmir Bank 906 100000 05-09-2013 Jammu & Kashmir Bank 906 3000 25-09-2013 Jammu & Kashmir Bank 906 185000 19-11-2013 Jammu & Kashmir Bank 906 12000 28-11-2023 Jammu & Kashmir Bank 906 4300 16-12-2013 Jammu & Kashmir Bank 906 32000 24-02-2014 Jammu & Kashmir Bank 906 108000 27-03-2014 Jammu & Kashmir Bank 906 500000 28-03-2013 Jammu & Kashmir Bank 906 500000 Total 2472500 ITA No. 6860/Mum/2024 Mohammed Junaid Yusuf Rindani 5 CASH WITHDRAW FROM J& K BANK 1317 25,56,238.00 CASH DEPOSIT IN J& K BANK 906 24,72,500.00 CASH WITHDRAW FROM J& K BANK 906 39,10,939.00 CASH DEPOSIT IN J& K BANK 1317 57,200.00 LABOUR CHARGES RECD. 7,42,003.00 DRAWINGS 59,86,000.00 CAPITAL WITH ACE ASSOCIATES 22,00,000.00 SALARIES 1,52,000.00 CONVEYANCE 15,000.00 MISC. EXPENSES 16,000.00 BALANCE C/F 4,74,601.21 TOTAL 99,98,301.21 TOTAL 9,98,301.21 8. Since these documents have not been examined or verified by the ld. AO and neither assessee had appeared before the ld. CIT(A), therefore, in the interest of justice, the matter is restored back to the file of the ld. AO who shall examine the bank deposit in the banks as per the bank statements as well as cash book maintained by the assessee to examine the source of cash. The assessee is also directed to cooperate during the course of assessment proceedings. Accordingly, appeal of the assessee is allowed for statistical purposes. ITA No. 6860/Mum/2024 Mohammed Junaid Yusuf Rindani 6 9. In the result, appeal of the assessee is allowed for statistical purposes. Order pronounced on 22nd April, 2025. Sd/- (GIRISH AGRAWAL) Sd/- (AMIT SHUKLA) ACCOUNTANT MEMBER JUDICIAL MEMBER Mumbai; Dated 22/04/2025 KARUNA, sr.ps Copy of the Order forwarded to : BY ORDER, (Asstt. Registrar) ITAT, Mumbai 1. The Appellant 2. The Respondent. 3. CIT 4. DR, ITAT, Mumbai 5. Guard file. //True Copy// "