Shri Amitkumar Vinodkumar Kapadia,, Surat v. The Income Tax Officer, Ward-4(1),, Surat

ITA 2746/AHD/2013 | 2008-2009
Pronouncement Date: 29-09-2016 | Result: Dismissed

Appeal Details

RSA Number 274620514 RSA 2013
Assessee PAN AJPPK3303C
Bench Ahmedabad
Appeal Number ITA 2746/AHD/2013
Duration Of Justice 2 year(s) 10 month(s) 4 day(s)
Appellant Shri Amitkumar Vinodkumar Kapadia,, Surat
Respondent The Income Tax Officer, Ward-4(1),, Surat
Appeal Type Income Tax Appeal
Pronouncement Date 29-09-2016
Appeal Filed By Assessee
Order Result Dismissed
Bench Allotted SMC
Tribunal Order Date 29-09-2016
Date Of Final Hearing 17-08-2016
Next Hearing Date 17-08-2016
Assessment Year 2008-2009
Appeal Filed On 25-11-2013
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH AHMEDABAD BEFORE SHRI R.P. TOLANI JUDICIAL MEMBER ./ ITA NO. 2746/AHD/2013 / ASSESSMENT YEAR : 2008-09 SHRI AMITKUMAR VINODKUMAR KAPADIA C/O. M/S. NAVINCHANDRA JEKISHANDAS H.NO. 5/1010 HARIPURA TARATIYA HANUMAN SHERI VARACHHA ROAD SURAT PAN : AJPPK 3303 C VS INCOME TAX OFFICER WARD 4 (1) SURAT / (APPELLANT) / (RESPONDENT) ASSESSEE BY : SHRI R.B. SHAH AR REVENUE BY : SHRI SATISH SOLANKI SR DR / DATE OF HEARING : 17/08/2016 / DATE OF PRONOUNCEMENT: 29/09/2016 / O R D E R THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF THE COMMISSIONER OF INCOME-TAX (APPEALS)-II SURAT DATE D 13.09.2013 FOR AY 2008-09. 2. THE SOLITARY GROUND RAISED IS AS UNDER:- ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE A S WELL AS LAW ON THE SUBJECT THE LEARNED COMMISSIONER OF INCOME-TAX (AP PEALS) HAS ERRED IN CONFIRMING THE ACTION OF THE ASSESSING OFFICER IN MA KING ADDITION OF RS.12 26 774/- BY TREATING TOTAL DEPOSIT IN THE UNA CCOUNTED BANK ACCOUNT AS INCOME OF THE ASSESSEE. 3. THE BRIEF FACTS ARE THE ASSESSEE IS ALLEGED TO BE ENGAGED IN THE BUSINESS OF MANUFACTURING OF GREY CLOTH. DURING TH E COURSE OF ASSESSMENT PROCEEDINGS AN UNDISCLOSED SAVINGS BANK ACCOUNT WI TH ROYAL BANK OF SCOTLAND WAS FOUND. ON ENQUIRY U/S 133(6) IT WAS FOUND THAT THERE WERE TOTAL DEPOSITS OF RS.12 26 744/- WHICH INCLUDED CAS H DEPOSITS OF RS.10 22 670/-. THE ASSESSEE ADMITTED THAT IT WAS AN UNDISCLOSED BANK SMC-ITA NO. 2746/AHD/2013 SHRI AMITKUMAR VINODKUMAR KAPADIA VS. ITO AY : 2008-09 2 ACCOUNT; HOWEVER A PLEA WAS RAISED THAT THE ACCOUN T CONTAINED BUSINESS TRANSACTIONS; THEREFORE 5% PROFIT IN RESPECT OF UN ACCOUNTED YARN BUSINESS MAY BE ADOPTED. THE AO WAS NOT SATISFIED WITH THE E XPLANATION AND THE ADDITION WAS MADE. AGGRIEVED THE ASSESSEE PREFERRE D FIRST APPEAL AND IN FIRST APPEAL THE LD. CIT(A) OBSERVED THAT:- A) THE ASSESSEE DID NOT FURNISH THE NAMES OF PAYEES T HEIR ADDRESSES EITHER BEFORE THE AO OR BEFORE HIM. IF THE WITHDRAW ALS WERE FOR PURCHASES THE ASSESSEE SHOULD BE HAVING MINIMUM DE TAILS OF PURCHASES. THUS THE ONUS ON THE ASSESSEE WAS NOT DISCHARGED; B) THE CASE OF SHRI SARWANKUMAR SHARMA (DECISION OF IT AT AHMEDABAD BENCH IN ITA NO.2302/AHD/2011) CITED BY T HE ASSESSEE WAS DISTINGUISHED ON FACTS. C) THE FINDINGS OF THE LD. AO TO THE EFFECT THAT (1) T HE ASSESSEE WAS REGULARLY MAINTAINING THIS UNDISCLOSED ACCOUNT (2) THE CASH WAS DEBITED AT INTERVALS AND NOT WITHDRAWN EXCEPT ON ON E INSTANT AND (3) THE ONUS OF PROVING THE DEBIT ENTRIES IN THE BANK A CCOUNT WERE ON THE ASSESSEE TO DEMONSTRATE THAT THEY WERE FOR PURCHASE S AS CLAIMED. INSTEAD OF BEING OBJECTIVE AND SPECIFIC ASSESSEE G AVE A VAGUE AND GENERAL REPLY AND ENDEVOURED TO SQUARE THE ISSUE BY A SPECIOUS PLEA THAT THESE WERE AS REGULAR TRADE TRANSACTIONS. IN THE ABSENCE OF ANY CORROBORATION THE OBSERVATIO NS OF LD. AO WERE UPHELD AND THE ADDITION WAS CONFIRMED. 4. AGGRIEVED THE ASSESSEE IS IN SECOND APPEAL. 5. LD. COUNSEL FOR THE ASSESSEE REITERATED THE CONT ENTIONS AND RELIED ON THE DECISION OF ITAT AHMEDABAD BENCH IN THE CASE O F SHRI SARWANKUMAR SHARMA (SUPRA). SMC-ITA NO. 2746/AHD/2013 SHRI AMITKUMAR VINODKUMAR KAPADIA VS. ITO AY : 2008-09 3 6. LD. DR ON THE OTHER HAND VEHEMENTLY CONTENDS T HAT:- A) THERE IS NO FACTUAL PARITY BETWEEN THE ASSESSEES C ASE AND THAT OF SHRI SARWANKUMAR SHARMA (SUPRA) WHICH HAS BEEN DISTINGUI SHED IN DETAIL BY LD. CIT(A); B) THE ASSESSEE WAS MAINTAINING A REGULAR UNDISCLOSED BANK ACCOUNT AND IF THERE WAS ANY CREDIBILITY IN HIS CLAIM THAT THEY WERE AS REGULAR BUSINESS TRANSACTIONS OF PURCHASES AND SALES THE M INIMUM RECORD THE NAME AND ADDRESSES OF THE VENDORS/VENDEES SHOUL D HAVE BEEN DISCLOSED BY THE ASSESSEE. INSTEAD SILENCES WERE ADOPTED. THE ONUS OF PROVING BUSINESS TURNOVER IS ON THE ASSESSEE AS THE FACTS ARE IN THE EXCLUSIVE KNOWLEDGE OF THE ASSESSEE AND NOT OF THE DEPARTMENT. 7. I HAVE HEARD THE RIVAL CONTENTIONS PERUSED THE MATERIAL AVAILABLE ON RECORD AND GONE THROUGH THE ORDERS OF THE LOWER AUT HORITIES. I FIND MERIT IN THE CONTENTIONS OF LD. DR. THE ASSESSEE HAS FAILED TO DISCHARGE HIS ONUS TO SUBSTANTIATE HIS CLAIM THAT THE DEPOSITS IN THE UND ISCLOSED SAVINGS BANK ACCOUNT REGULARLY MAINTAINED BY THE ASSESSEE IN ROY AL BANK OF SCOTLAND WAS PERTAINING TO ASSESSEES BUSINESS. UNDER THESE CIR CUMSTANCES I SEE NO INFIRMITY IN THE ORDERS OF THE AUTHORITIES BELOW IN CONFIRMING THE ADDITION WHICH IS UPHELD. 8. IN THE RESULT ASSESSEES APPEAL IS DISMISSED. ORDER PRONOUNCED IN THE COURT ON 29 TH SEPTEMBER 2016 AT AHMEDABAD. SD/- R.P. TOLANI (JUDICIAL MEMBER) AHMEDABAD; DATED 29/09/2016 *BIJU T. SMC-ITA NO. 2746/AHD/2013 SHRI AMITKUMAR VINODKUMAR KAPADIA VS. ITO AY : 2008-09 4 / 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