YOGESH ASHOK MUNDADE ,MUMBAI V. INCOME TAX OFFICER WARD -11(2)(1), MUMBAI

ITA 5085/MUM/2024

AI Insights

The case involves an appeal by Yogesh Ashok Mundade against the order of the National Faceless Appeal Centre (NFAC), which upheld the assessment order adding Rs. 2,14,50,000 under Section 69A of the Income Tax Act for AY 2016-17. The additions were related to investments in a scheme operated by Shri Kartik Mohan Prasad. The appellant contested the additions on grounds of previous assessments and legal precedents, including a Bombay High Court decision. The Tribunal dismissed the first three grounds as not pressed and focused on the addition of Rs. 2,14,50,000, ultimately allowing the appeal and directing the deletion of the additions.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 35519 (ITAT-MUMBAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-01-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: G
• Assessment Year: 2016-2017
• Other Referred Cases: Siemens Financial Services Pvt. Ltd. v. Deputy Commissioner of Income Tax and Ors.
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PUSHKARAJ BHANGEPATIL; DR
• Assessee Lawyers: HITESH M. SHAH
• Keywords: Set aside
• Section: 147; 148; 69A

Judgement Text

"| आयकर अपीलीय अिधकरण ा यपीठ, मुंबई | IN THE INCOME TAX APPELLATE TRIBUNAL “G” BENCH, MUMBAI SHRI NARENDRA KUMAR BILLAIYA, HON’BLE ACCOUNTANT MEMBER & BEFORE SANDEEP SINGH KARHAIL, HON’BLE JUDICIAL MEMBER I.T.A. No. 5085/Mum/2024 Assessment Years: 2016-17 Yogesh Ashok Mundade Flat No. 51, 5th Floor Navalai CHS Ltd. Charkop Market Sector-1, Plot No. 243 Kandivali (West) Mumbai - 400067 [PAN: AFVPM9718D] Vs 1. National Faceless Appeal Centre (NFAC) 2. Income Tax Officer, Ward- 11(2)(1), Mumbai अपीला थ\u0016/ (Appellant) \u0017\u0018 यथ\u0016/ (Respondent) Assessee by : Shri Hitesh M. Shah, C.A. Revenue by : Shri Pushkaraj Bhangepatil, Sr. D/R सुनवाई की तारीख/Date of Hearing : 02/01/2025 घोषणा की तारीख /Date of Pronouncement: 06/01/2025 आदेश/O R D E R PER NARENDRA KUMAR BILLAIYA, AM: This appeal by the assessee is preferred against the order dated 10/09/2024 by NFAC, Delhi [hereinafter ‘ld. CIT(A)’], pertaining to AY 2016-17. 2. The grievance of the assessee reads as under:- “1) That on the facts and in the circumstances of the case of the appellant and in law Ld. NFAC has erred in not considering and obliging to the order passed by Hon'ble Bombay High Court on 12.03.2024 quashing and setting aside the Notice u/s. 148 of the Act dated 27.07.2022, Order u/s. 148A(d) of the dated 23.07.2022, Show Cause Notice u/s. 148A(b) of the Act dated 28.05.2022 and impugned Assessment Order u/s. 147 r.w.s. 144B dated 30.05.2023 for A.Y. 2016-17. 2) That on the facts and in the circumstances of the case of the appellant and in law Ld. NFAC has erred in refusing to accept order passed by Hon'ble Bombay High Court in the case of Siemens Financial Services Pvt. Ltd. v. Deputy Commissioner of Income Tax and Ors. for A. Y. 2016-17. 3) That on the facts and in the circumstances of the case of the appellant and in law Ld. NFAC has erred in upholding the assessment order u/s. 147 r.w.s. 144B dated I.T.A. No. 5085/Mum/2024 2 30.05.2023 passed by the Assessing Officer even when it was barred by limitation as per Section 149 of the Act. 4) Without prejudice to the above grounds, that on the facts and in the circumstances of the case of the appellant and in law Ld. NFAC has erred in upholding the addition made by Assessing Officer of Rs. 2,14,50,000/ - u/s. 69A of the Act. 5) That the impugned order being contrary to law, evidence and facts of the case may kindly be set aside, amended and modified in the light of the grounds of appeal enumerated above and the appellant be granted such relief as is called for on the facts and in the circumstances of the case of the appellant and in law. 6) That each of the grounds of appeal enumerated above is without prejudice to and independent of one another. 7) That the appellant craves leave to reserve to himself the right to add, to alter or amend any of the grounds of appeal before or at the end of the hearing and to produce such further evidence, documents and papers as may be necessary.” 3. At the very outset, the ld. Counsel for the assessee stated that he is not pressing Ground Nos. 1, 2 & 3. Therefore, the same are dismissed as not pressed. 4. The only ground which needs to be adjudicated is in respect of addition of Rs. 2,14,50,000/- made by the AO u/s 69A of the Act. 5. Briefly stated, the facts of the case are that as per the information available with the Department, the AO came to know that the assessee has invested an amount of Rs.2,14,50,000/- in the scheme operated by Shri Kartik Mohan Prasad. The investment details made by the assessee are as under:- I.T.A. No. 5085/Mum/2024 3 6. A close perusal of the aforementioned chart shows that the investment of Rs.1,10,50,000/- has been made in FY 2013-14 and 2014- 15 relevant to 2014-15 and 2015-16. Therefore, there is no question of making the addition in the Assessment Year under consideration i.e., AY 2016-17. Therefore, the AO is outrightly directed to delete the addition of Rs.1,10,50,000/- for the year under consideration. 7. Coming to the other addition of Rs.1.04 Crores being alleged cash deposited in the scheme operated by Shri Kartik Mohan Prasad, a perusal of the assessment order dated 28/05/2023 for AY 2014-15 shows that the AO has already made the addition of Rs.1.04 Crores in AY 2014-15, being alleged cash investment made with Kartik Mohan Prasad and is his concern. Since the addition has already been made in AY 2014-15, we do not find any merit in the same addition being made during the year under consideration. Therefore, the AO is directed to delete the addition of Rs.1.04 Crores also. 8. In the result, appeal of the assessee is allowed. Order pronounced in the Court on 6th January, 2025 at Mumbai. Sd/- Sd/- (SANDEEP SINGH KARHAIL) (NARENDRA KUMAR BILLAIYA) JUDICIAL MEMBER ACCOUNTANT MEMBER Mumbai, Dated 06/01/2025 *SC SrPs *SC SrPs *SC SrPs *SC SrPs I.T.A. No. 5085/Mum/2024 4 आदेश की \u0014ितिलिप अ\u0019ेिषत /Copy of the Order forwarded to : 1. अपीलाथ\u001b / The Appellant 2. \u0014 थ\u001b / The Respondent 3. संबंिधत आयकर आयु! / Concerned Pr. CIT 4. आयकर आयु! ) अपील ( / The CIT(A)- 5. िवभागीय \u0014ितिनिध ,आयकर अपीलीय अिधकरण, मुंबई /DR,ITAT, Mumbai, 6. गाड% फाई/ Guard file. आदेशानुसार/ BY ORDER, TRUE COPY Assistant Registrar आयकर अपीलीय अिधकरण ITAT, Mumbai "