JIGNESH L CHHEDA, MUMBAI v. ITO 18(3)(2), MUMBAI

ITA 1450/MUM/2014 | 2008-2009
Pronouncement Date: 26-10-2016 | Result: Allowed

Appeal Details

RSA Number 145019914 RSA 2014
Assessee PAN AABPC9651N
Bench Mumbai
Appeal Number ITA 1450/MUM/2014
Duration Of Justice 2 year(s) 7 month(s) 25 day(s)
Appellant JIGNESH L CHHEDA, MUMBAI
Respondent ITO 18(3)(2), MUMBAI
Appeal Type Income Tax Appeal
Pronouncement Date 26-10-2016
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted J
Tribunal Order Date 26-10-2016
Date Of Final Hearing 19-10-2015
Next Hearing Date 19-10-2015
Assessment Year 2008-2009
Appeal Filed On 03-03-2014
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL J BENCH MUMBAI BEFORE SHRI C. N. PRASAD JM AND SHRI N. K. PRADHAN AM ./ I.T.A. NO. 1450/MUM/2014 ( / ASSESSMENT YEAR: 2008 - 09 ) JIGNESH L. CHH EDA A - 2 DINATHWADI 1 ST FLOOR L. J. ROAD OPP. CITY LIGHT CINEMA MATUNGA (BB) MUMBAI - 400 016 / VS. ITO WARD - 18(3)(2) PIRAMAL CHAMBERS LALBAUG MUMBAI - 400 012 ./ ./ PAN/GIR NO. AABPC9651N ( / APPELLANT ) : ( / RESPONDENT ) / APPELLANT BY : SHRI SAMEER DALAL / RESPONDENT BY : SHRI RAJESH JOH R I / DATE OF HEARING : 18.10.2016 / DATE OF PRONOUNCEMENT : 26 .10.2016 / O R D E R PER N. K. PRADHAN A. M.: THIS IS AN APPEAL FILED BY THE ASSESSEE. THE RELEVANT ASSESSMENT YEAR IS 20 08 - 09 . IT IS DIRECTED AGAINST THE ORDER OF COMMISSIONER (APPEALS) - 16 MUMBAI AND ARISES OUT OF THE ORDER U/S. 143(3) OF THE INCOME TAX ACT 1961 (THE ACT). 2. THE GROUNDS OF APPEAL FILED BY THE ASSESSEE READ AS UNDER: THE LEARNED COMMISSIONER OF INCOME - TAX (APPEALS) HAS WRONGLY UPHELD ADDITIONS MADE BY THE ASSESSING OFFICER 1. UNEXP LAINED CASH CREDITS U/S.69A OF I. T. ACT 1961 RS.14 73 250 2 ITA NO. 1450/MUM/2014 (A.Y. 2008 - 09) JIGNESH L. CHHEDA VS. ITO 2. OTHER INCOME RS. 85 000 THE LEARNED COMMISSIONER OF INCOME - TAX (APPEALS) HAS NOT CONSIDERED SUBMISSIONS MADE BY APPELLANT WHEREIN DETAILED EXPLANATION WAS GIVEN REGARDING SOURCE OF CASH DEPOSITED IN BANK RS.14 73 250 / - . 3. THE AO DURIN G THE COURSE OF ASSESSMENT PROCEEDINGS FOUND THAT THE ASSESSEE HAD DEPOSITED CASH OF RS.14 73 250/ - IN THE MEMON CO - OPERATIVE BANK ON VARIOUS DATES. THE ASSESSEE HAD ALSO ISSUED CHEQUES IN THE NAME OF VARIOUS PARTIES . THE AO HAS LISTED 51 PARTIES AT PAGE 3 - 4 OF THE ASSESSMENT ORDER. AS THE ASSESSEE COULD NOT FURNISH THE ADDRESS OF THE ABOVE PARTIES THE AO HELD THE CASH DEPOSITED IN MEMON CO - OPERATIVE BANK AS THE ASSESSEES UNEXPLAINED MONEY AND MADE AN ADDITION OF RS.14 73 250/ - U/S.69A OF THE ACT. 4. FU RTHER AT PARA 4 OF THE ASSESSMENT ORDER THE AO MADE A REFERENCE TO THE RENTAL INCOME OF RS.60 000/ - DECLARED BY THE ASSESSEE AND ADDITIONAL INCOME FROM LIC COMMISSION IN THE REVISED COMPUTATION. AS THE ASSESSEE FAILED TO DISCLOSE THE INCOME BY FILING THE REVISED RETURN OF INCOME WITHIN THE DUE DATE THE AO BROUGHT TO TAX RS.85 000/ - UNDER THE HEAD OTHER INCOME. 5. THE LD. CIT(A) MENTIONS THAT IN THE APPELLATE PROCEEDINGS THE ASSESSEE HAS SUBMITTED THE DETAILS GIVING NAME ADDRESS AND AMOUNT PAID TO V ARIOUS SUPPLIERS OF CLOTHES ALONG WITH EXTRACT FROM PURCHASE REGISTER AND COPIES OF BILLS FOR THE PURCHASE OF CLOTHES WITH A REQUEST TO ACCEPT THE SAME AS ADDITIONAL EVIDENCE UNDER RULE 46A OF THE I. T. RULES 1962. THE LD. CIT(A) ADMITTED THE ADDITIONAL E VIDENCE AND SEN T A COPY OF IT TO THE AO FOR A REMAND REPORT AFTER DUE EXAMINATION. IN THE REMAND PROCEEDINGS THE LETTERS SEN T BY THE AO U/S. 133(6) WERE RETURNED BACK WITH THE REMARK NOT KNOWN. THE ASSESSEE CLARIFIED BEFORE THE LD. CIT(A) THAT THE AO HA D SEN T THE NOTICES AT THE OLD ADDRESSES BY WHICH TIME THE PARTY HAD CHANGED THEIR LOCATIONS. HAVING CONSIDERED THE FACTS AND CIRCUMSTANCES OF THE CASE THE LD. CIT(A) CONFIRMED THE 3 ITA NO. 1450/MUM/2014 (A.Y. 2008 - 09) JIGNESH L. CHHEDA VS. ITO DISALLOWANCE OF RS.14 73 250/ - MADE BY THE AO U/S 69A OF THE ACT. THE LD. C IT(A) TOOK NOTE OF THE FACT THAT THE COPIES OF BILLS/CASH MEMOS FILED IN RESPECT OF PURCHASES CLAIMED TO HAVE BEEN MADE BY THE ASSESSEE DO NOT CONTAIN ANY SALES TAX TIN NUMBERS/VAT TIN NUMBER OR ANY REGISTRATION NUMBER. SHE ALSO NOTED THE FACT THAT THE ASS ESSEE HAS NOT BEEN ABLE TO EXPLAIN WHY CHEQUES FOR THE EXACT AMOUNTS DEPOSITED IN THE BANK ACCOUNT HAVE BEEN ISSUED BY THE ASSESSEE ON THE VERY SAME DATE. 6. THE LD. CIT(A) ALSO CONFIRMED THE ADDITION MADE BY THE AO OF RS.85 000/ - UNDER THE HEAD OTHER IN COME S INCE THERE IS NOTHING BROUGHT ON RECORD BY THE ASSESSEE THAT THE CASH DEPOSITS EMANATED FROM THE CLOTH TRADING ACTIVITY OR FOR THAT MATTER THE INCOME GENERATED IS OTHER INCOME WHICH HAS BEEN DECLARED. 7. THE LD. COUNSEL OF THE ASSESSEE SUBMITS BEFORE US THAT IN THE REMAND PROCEEDINGS THE AO HAD SEN T NOTICES AT THE OLD ADDRESSES BY WHICH TIME THE PART I ES HAVE CHANGED THEIR LOCATIONS. IT IS REQUESTED BY HIM THAT THE ASSESSEE MAY BE ALLOWED AN OPPORTUNITY TO FURNISH THE RECENT ADDRESS OF THE PART IES BEFORE THE AO FOR VERIFICATION. 8. THE LD. DR SUPPORTS THE ORDER PASSED BY THE LD. CIT(A) UPHOLDING THE ADDITION MADE BY THE AO. 9. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL ON RECORD. WE FIND THAT THE RECENT ADDRESS OF THE 51 PAR TIES TO BE FILED BY THE ASSESSEE BEFORE THE AO WOULD GO A LONG WAY IN ESTABLISHING THE TAXABILITY OR OTHERWISE OF RS.14 73 250/ - . THE ABSENCE OF PROPER ADDRESS BEFORE THE AO LE D TO THE ADDITION OF THE ABOVE SUM. IT IS CLOSELY CONNECTED WITH THE INSTANT ISS UE. THE OTHER ADDITION OF RS.85 000/ - MADE BY THE AO UNDER THE HEAD OTHER INCOME IS ALSO LINKED WITH THE SAID VERIFICATION AS IS EVIDENT FROM THE SUBMISSION MADE BY THE ASSESSEE BEFORE THE LD. CIT(A) . IN VIEW OF THE ABOVE WE SET ASIDE THE ORDER OF THE LD. CIT(A) AND RESTORE THE MATTER BACK TO THE 4 ITA NO. 1450/MUM/2014 (A.Y. 2008 - 09) JIGNESH L. CHHEDA VS. ITO FILE OF THE AO FOR DECIDING THE ABOVE TWO ISSUES AFRESH AS PER THE ACT AFTER ALLOWING REASONABLE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. THE ASSESSEE IS ALSO DIRECTED TO FURNISH THE RELEVANT DETAILS BEFORE THE AO. 10. IN THE RESULT THE APPEAL IS ALLOWED FOR STATISTICAL PURPOSE. ORDER PRONOUNCED IN THE OPEN COURT ON OCTOBER 26 201 6 SD/ - SD/ - ( C. N . PRASAD ) ( N. K. PRADHAN ) / J UDICIAL MEMBER / A CCOUNTANT MEMBER MUMBAI ; DATED : 26 . 10 .201 6 . . ./ ROSHANI SR. PS / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT 3. ( ) / THE CIT(A) 4. / CIT - CONCERNED 5. / DR ITAT MUMBAI 6. / GUARD F ILE / BY ORDER / (DY./AS STT. REGISTRAR) / ITAT MUMBAI