The ITO, Ward-2,, Nadiad v. Shri Bhavesh Amrutlal Prajapati, Nadiad

ITA 562/AHD/2013 | 2009-2010
Pronouncement Date: 04-10-2013 | Result: Dismissed

Appeal Details

RSA Number 56220514 RSA 2013
Assessee PAN AQIPP1019J
Bench Ahmedabad
Appeal Number ITA 562/AHD/2013
Duration Of Justice 7 month(s)
Appellant The ITO, Ward-2,, Nadiad
Respondent Shri Bhavesh Amrutlal Prajapati, Nadiad
Appeal Type Income Tax Appeal
Pronouncement Date 04-10-2013
Appeal Filed By Department
Order Result Dismissed
Bench Allotted C
Tribunal Order Date 04-10-2013
Date Of Final Hearing 08-08-2013
Next Hearing Date 08-08-2013
Assessment Year 2009-2010
Appeal Filed On 04-03-2013
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD C BENCH AHMADABAD BEFORE SHRI MUKUL KR. SHRAWAT JUDICIAL MEMBER AND SHRI T.R. MEENA ACCOUNTANT MEMBER ITA NO. 562/AHD/2013 ASSESSMENT YEAR :2009-10 INCOME-TAX OFFICER WARD-1 1 ST FLOOR AAYAKAR BHAVAN GEETANJALI CHOKADI PIJ ROAD NADIAD. V/S . SHRI BHAVESH AMRUTBHAI PRAJAPTI 7-A SAVALIA NAGAR MAI MANDIR ROAD NADIAD-387002 PAN NO. A QIPP1019J (APPELLANT) .. (RESPONDENT) BY APPELLANT SHRI J.P. JHANGID SR.D.R. /BY RESPONDENT SHRI B. T. THAKKAR A.R. /DATE OF HEARING 08.08.2013 /DATE OF PRONOUNCEMENT 04.10.2013 O R D E R PER : SHRI T.R.MEENA ACCOUNTANT MEMBER THIS IS AN APPEAL AT THE BEHEST OF THE REVENUE WHIC H HAS EMANATED FROM THE ORDER OF CIT(A)-IV BARODA DATED 13.12.20 12 FOR A.Y. 2009-10. THE EFFECTIVE GROUNDS OF REVENUES APPEAL ARE AS UN DER: 1. ON THE FACTS AND THE CIRCUMSTANCES OF THE CASE AND IN LAW THE LEARNED CIT(A) ERRED IN DELETING THE ADD ITION OF RS.27 93 000 U/S 69A OF THE ACT MADE BY THE ASSESSI NG OFFICER AND REVISING THE INCOME TO THE EXTENT OF ITA NO. 562/AHD/13 A.Y. 09-10 PAGE 2 RS.5 50 400/- BY ALLOWING PEAK CREDIT OF TWO BANK ACCOUNTS WITHOUT APPRECIATING THE FACT THAT THE SO URCE OF MONEY DEPOSITS IN THE BANK ACCOUNT WAS NOT PROVED A S THE ASSESSEE DID NOT MAINTAIN THE BOOKS OF ACCOUNTS THO UGH IT WAS OBLIGATORY ON HIS PART TO MAINTAIN BY VIRTUE OF THE PROVISIONS OF SECTION 44AA(2)(I) OF THE ACT AND FAI LING TO PRODUCE SUFFICIENT PROOFS TO JUSTIFY THAT HE HAD CA RRIED OUT RETAIL TRADE OF CLOTH. 2. ON THE FACTS AND THE CIRCUMSTANCES OF THE CASE T HE LEARNED CIT(A)OUGHT TO HAVE UPHELD THE ASSESSMENT O RDER U/S 143(30 OF THE ACT OF THE ASSESSING OFFICER. 2. THE ASSESSEE FILED RETURN OF INCOME ON 03.07.200 9 AT RS. 1 84 150/-. IN THIS CASE SCRUTINY U/S. 143(3) WAS MADE BY THE A.O. BY ISSUING VARIOUS NOTICES. THE ASSESSEE HAD SHOWN INCOME FROM LABOUR INCOME RECEIVED FOR BOOK BINDING AND INCOME FROM ZEROX MACHINE TO THE T UNE OF RS.3 65 182/- AND RS. 70 315/- RESPECTIVELY. THE ASSESSEE HAS SHOWN NET PROFIT AT RS.2 18 895/- . THE ASSESSEE HAD DEPOSITED CASH OF RS. 15 33 000 /- IN S/B. ACCOUNT WITH ICICI BANK AND RS. 12 60 000/- WITH HDFC BANK OF NA DIAD. THE A.O. ASKED TO EXPLAIN CASH DEPOSITED IN THESE BANK ACCOUNTS WI TH EVIDENCE AND GAVE VARIOUS OPPORTUNITIES TO THE ASSESSEE BUT NO REPLY WAS FILED BY THE ASSESSEE. THE A.O. MADE ADDITION U/S. 69A OF THE IT ACT AT RS .27 93 000/-. ITA NO. 562/AHD/13 A.Y. 09-10 PAGE 3 3. BEING AGGRIEVED BY THE ORDER OF THE A.O. THE AS SESSEE CARRIED THE MATTER BEFORE CIT(A) WHO HAD PARTLY CONFIRMED THE A DDITION BY OBSERVING THAT THE A.R. FOR THE APPELLANT HAD ADMITTED IN HIS SUBM ISSION THAT THE APPELLANT WAS HAVING RETAIL TRADE BUSINESS OF CLOTH AND INCOM E FROM SAME WAS NOT DISCLOSED IN THE RETURN OF INCOME. THE BOOKS OF AC COUNT WERE NOT AUDITED U/S. 44AB OF THE IT ACT. NO BOOKS OF ACCOUNT WERE PRODU CED FOR CLOTH BUSINESS BEFORE THE A.O. AS WELL AS BEFORE THE CIT(A). THE RETURN WAS ALSO NOT FILED U/S. 44AF OF THE IT ACT. THE A.R. HAD FURNISHED XE ROX COPY OF PURCHASE BILLS WHICH WERE NOT FOUND SUFFICIENT BY LD. CIT(A) TO PR OVE THAT THE APPELLANT WAS PURCHASING CLOTH. THUS THE PROVISION U/S. 44AF WA S HELD NOT APPLICABLE IN CASE OF ASSESSEE. HOWEVER HE GAVE THE BENEFIT OF PEAK CREDIT OF BOTH UNDISCLOSED BANK ACCOUNT. THEREFORE HE DIRECTED T O THE A.O. TO COMPUTE THE INCOME ON THE BASIS OF PEAK CASH OF BANK ACCOUNT. 4. NOW THE REVENUE IS BEFORE US. LD. SR. D.R. VEHE MENTLY RELIED UPON THE ORDER OF THE A.O. AND LD. COUNSEL FOR THE APPELLANT RELIED UPON THE ORDER OF THE CIT(A) AND ARGUED THAT ASSESSEE HAD TWO BANK ACCOUN TS UNDISCLOSED AND LD. CIT(A) RIGHTLY ALLOWED THE APPEAL ON THE BASIS OF P EAK CREDIT. THUS HE PRAYED TO CONFIRM THE ORDER OF THE CIT(A). 5. WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE MATERIAL ON RECORD. WHATEVER CREDIT SHOWN IN THE TWO UNDISCLOS ED BANK ACCOUNTS AFTER CALCULATING THE PEAK AMOUNT IS LEGALLY CORRECT WAY TO DETERMINE THE INCOME IN THE CASE OF SUCH TYPE OF UNDISCLOSED BANK ACCOUNT. THUS FURTHER LD. SR. D.R. ITA NO. 562/AHD/13 A.Y. 09-10 PAGE 4 HAD NOT CONTROVERTED THE FINDING OF THE CIT(A). TH US WE UPHOLD THE ORDER OF THE CIT(A). 6. IN THE RESULT THE REVENUES APPEAL IS DISMISSE D. THIS ORDER PRONOUNCED IN OPEN COURT ON 04.10.2013 SD/- SD/- ( MUKUL KR. SHRAWAT ) (T.R. MEENA) JUDICIAL MEMBER ACCOUNTANT MEMBER TRUE COPY S.K.SINHA ! ! ! ! '! '! '! '! / COPY OF ORDER FORWARDED TO:- 1. / APPELLANT 2. / RESPONDENT 3. '(' ) * / CONCERNED CIT 4. *- / CIT (A) 5. !./ ) ) 12( / DR ITAT AHMEDABAD 6. /45 67 / GUARD FILE. BY ORDER/ 8/ 1 ': ) 12( ;