Shri Rajeshkumar Balkishan Agrawal,, Ahmedabad v. The Income Tax Officer, Ward-2(3),, Ahmedabad

ITA 1725/AHD/2014 | 2009-2010
Pronouncement Date: 05-10-2016 | Result: Allowed

Appeal Details

RSA Number 172520514 RSA 2014
Assessee PAN ADCPA2566L
Bench Ahmedabad
Appeal Number ITA 1725/AHD/2014
Duration Of Justice 2 year(s) 4 month(s)
Appellant Shri Rajeshkumar Balkishan Agrawal,, Ahmedabad
Respondent The Income Tax Officer, Ward-2(3),, Ahmedabad
Appeal Type Income Tax Appeal
Pronouncement Date 05-10-2016
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted SMC
Tribunal Order Date 05-10-2016
Date Of Final Hearing 03-10-2016
Next Hearing Date 03-10-2016
Assessment Year 2009-2010
Appeal Filed On 05-06-2014
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH AHMEDABAD BEFORE SHRI R.P. TOLANI JUDICIAL MEMBER ./ ITA NO. 1725/AHD/2014 / ASSESSMENT YEAR : 2009-10 SHRI RAJESHKUMAR BALKISHAN AGRAWAL (PROP. RAJENDRA SALES AGENCY) 1137 OLD MADHUPURA MARKET O/S. DELHI DARWAJA SHAHIBAUG AHMEDABAD PAN: ADCPA 2566 L VS INCOME TAX OFFICER WARD 2(3) AHMEDABAD / (APPELLANT) / (RESPONDENT) ASSESSEE BY : SHRI KALPESH SHAH AR REVENUE BY : SMT. SONIA KUMAR SR DR / DATE OF HEARING : 03/10/2016 / DATE OF PRONOUNCEMENT: 05/10/2016 / O R D E R THIS IS ASSESSEES APPEAL CHALLENGING THE ORDER OF LD. CIT(A)-II AHMEDABAD DATED 18.03.2014 BEING UNJUSTIFIED ON FOL LOWING COUNTS:- I) NOT DECIDING THE ASSESSEES GROUNDS PROPERLY; II) CONFIRMING THE ADDITION OF RS.17 08 670/- MADE BY T HE AO U/S 69 OF THE ACT; III) IGNORING THE WORKING OF PEAK CREDIT OF CASH DEPOSIT ED IN THE BANK ACCOUNT. 2. LD. COUNSEL FOR THE ASSESSEE CONTENDS THAT THE A SSESSEE IS A DISTRIBUTOR OF MATCHBOXES TO VARIOUS SMALLER PLACES AROUND AHME DABAD WHICH ARE PURCHASED FROM SIVAKASHI. THESE MATCHBOXES ARE SOL D IN DIFFERENT DISTRICTS AROUND AHMEDABAD. THE BANK ACCOUNT AND THE TRANSAC TIONS THEREIN BEING DEPOSITS OF SALES PROCEEDS OF MATCHBOXES WERE NOT ACCOUNTED FOR. THE AO RECEIVED INFORMATION IN THIS BEHALF IN AIR. CONSEQU ENTLY ENQUIRIES WERE MADE. LD. COUNSEL FOR THE ASSESSEE REFERRED TO BAN K STATEMENTS SHOWING THAT THERE WERE CASH DEPOSITS IN VARIOUS SMALLER SU RROUNDING PLACES WHICH SMC-ITA NO. 1725/AHD/2014 SHRI RAJESHKUMAR BALKISHAN AGRAWAL VS. ITO AY : 2009-10 2 CLEARLY INDICATE THAT THE AMOUNTS CONSTITUTED SUCH UNACCOUNTED SALES PROCEEDS AND NOT THE LOANS OR ADVANCES RECEIVED BY ASSESSEE. THE AMOUNTS DEPOSITED WERE BACKED UP BY CORRESPONDING WITHDRAWA LS BY THE ASSESSEE. THUS THE CREDIT ENTRIES REFLECTED IN THE BANK ACCO UNT CONSTITUTED THE ASSESSEES BUSINESS TURNOVER; THEREFORE A SUITABLE RATE OF GP SHOULD HAVE BEEN ADDED. ALTERNATIVELY PEAK CREDIT WORKED OUT BY THE ASSESSEE IN THE BANK ACCOUNT SHOULD HAVE BEEN ADDED. THE AUTHORITI ES BELOW HAVE FAILED TO CONSIDER THE EXPLANATION OF THE ASSESSEE WHICH WAS BASED ON PROPER MATERIAL. THEREFORE THE ORDERS OF THE AUTHORITIES BELOW ARE UNJUSTIFIED WITHOUT APPRECIATION OF EVIDENCE AND MATERIAL ON RE CORD. 3. LD. DR ON THE OTHER HAND SUPPORTED THE ORDERS OF THE AUTHORITIES BELOW. 4. I HAVE HEARD THE RIVAL CONTENTIONS PERUSED THE MATERIAL AVAILABLE ON RECORD AND GONE THROUGH THE ORDERS OF THE AUTHORITI ES BELOW. A PERUSAL OF BANK ACCOUNT INDICATES THAT THE DEPOSITS THEREIN WE RE MADE AT VARIOUS SMALL PLACES LIKE IQBALPUR AND OTHER SMALLER TOWNS/VILLAG ES AND IT EMERGES FROM THE RECORD THAT THE POSSIBILITY OF THE CREDIT ENTRI ES BEING BUSINESS TRANSACTIONS OF THE ASSESSEE CANNOT BE RULED OUT. IN VIEW THEREOF I AM INCLINED TO SET ASIDE AND RESTORED THE MATTER BACK TO THE FILE OF AO TO DECIDE THE SAME AFRESH AFTER GIVING THE ASSESSEE ADEQUATE OPPORTUNITY OF BEING HEARD AND BY PASSING A SPEAKING ORDER AFTER CONSIDE RING ALL THE MATERIAL ON RECORD. 5. IN THE RESULT ASSESSEES APPEAL IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE COURT ON 5 TH OCTOBER 2016 AT AHMEDABAD. SD/- R.P. TOLANI (JUDICIAL MEMBER) AHMEDABAD; DATED 05/10/2016 *BIJU T. SMC-ITA NO. 1725/AHD/2014 SHRI RAJESHKUMAR BALKISHAN AGRAWAL VS. ITO AY : 2009-10 3 / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. / CONCERNED CIT 4. ( ) / THE CIT(A) 5. / DR ITAT AHMEDABAD 6. / GUARD FILE . / BY ORDER TRUE COPY / ( DY./ASSTT.REGISTRAR) / ITAT AHMEDABAD