The ITO, Ward-9(4),, Ahmedabad v. Shri Haresh Baldevbhai Patel, Ahmedabad

ITA 57/AHD/2013 | 2008-2009
Pronouncement Date: 17-04-2014 | Result: Dismissed

Appeal Details

RSA Number 5720514 RSA 2013
Assessee PAN AGCPP7260R
Bench Ahmedabad
Appeal Number ITA 57/AHD/2013
Duration Of Justice 1 year(s) 3 month(s) 9 day(s)
Appellant The ITO, Ward-9(4),, Ahmedabad
Respondent Shri Haresh Baldevbhai Patel, Ahmedabad
Appeal Type Income Tax Appeal
Pronouncement Date 17-04-2014
Appeal Filed By Department
Order Result Dismissed
Bench Allotted A
Tribunal Order Date 17-04-2014
Date Of Final Hearing 08-04-2014
Next Hearing Date 08-04-2014
Assessment Year 2008-2009
Appeal Filed On 07-01-2013
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD A BENCH AHMEDABAD BEFORE SHRI MUKUL KR. SHRAWAT JUDICIAL MEMBER AND SHRI N. S. SAINI ACCOUNTANT MEMBER .. ! ITA NO. 57/AHD/2013 ASSESSMENT YEAR :2008-09 INCOME-TAX OFFICER WARD-9(4) AHMEDABAD V/S . SHRI HARESH BALDEVBHAI PATEL 8-SHITAL RAW HOUSE OPP: RUPAL PARK NARANPURA AHMADABAD-380 019 PAN NO. A GCPP7260R (APPELLANT) .. (RESPONDENT) '# $ % / BY APPELLANT SHRI O. P. BATHEJA SR. D.R. &''# $ % /BY RESPONDENT SHRI A. C. SHAH A.R. ( $ )! /DATE OF HEARING 08.04.2014 *+ $ )! /DATE OF PRONOUNCEMENT 17.04.2014 O R D E R PER : SHRI N. S. SAINI ACCOUNTANT MEMBER THIS IS AN APPEAL FILED BY THE REVENUE AGAINST THE ORDER OF LD. CIT(A)- XV AHMEDABAD DATED 1 ST OCTOBER 2012 BY TAKING THE FOLLOWING GROUNDS: 1). THE LD. COMMISSIONER OF INCOME-TAX (APPEALS)- XV AHMEDABAD HAS ERRED IN LAW AND ON FACTS IN DELETING THE ADDITION OF RS.60 04 995/- MADE ON ACCOUNT OF UNEXPLAINED CASH CREDIT U/S. 68 OF THE ACT WITHOUT A SPEAKING ORDER & DISCUSSING THE BASIS FOR ACCEPTI NG ASSESSEDS ITA NO. 57/AHD/13 A.Y. 08-09 PAGE 2 SUBMISSIONS & ADDITIONAL EVIDENCE. 2). THE LD. COMMISSIONER OF INCOME-TAX (APPEALS)-XV AHMEDABAD HAS ERRED IN LAW AND ON FACTS IN IGNORING THE FACT THAT THE BANK ACCOUNT UNDER CONSIDERATION WHICH WAS NOT DISCLOSED IN ASSE SSEES BOOKS OF ACCOUNTS & ACCEPTING ASSESSEES EXPLANATION REGARDI NG THE ENTIRES IN SUCH UNDISCLOSED BANK ACCOUNT AS EXPLAINED WHEN THE ASSESSING OFFICER OBJECTED TO ADMISSION OF ADDITIONAL EVIDENC E WITHOUT A SPEAKING ORDER. 3). ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CA SE THE LD. COMMISSIONER OF INCOME TAX (APPEALS)-XV AHMEDABAD OUGHT TO HAVE UPHELD THE ORDER OF THE ASSESSING OFFICER. 2. THE SOLE ISSUE INVOLVED IN THIS APPEAL OF THE RE VENUE IS THAT THE LD. CIT(A) ERRED IN LAW AND ON FACTS IN DELETING THE AD DITION OF RS.60 04 995/- MADE ON ACCOUNT OF UNEXPLAINED CASH CREDIT U/S. 68 OF THE ACT. 3. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSI NG OFFICER MADE ADDITION OF RS.60 04 495/- BY INVOKING THE PROVISIONS OF SEC TION 68 OF THE INCOME TAX ACT. ON THE GROUND THAT THE ASSESSEE HAD NOT SHOWN A BANK ACCOUNT BEARING NO. 298010100017268 MAINTAINED WITH AXIS BANK AHME DABAD IN HIS BOOKS OF ACCOUNTS WHICH WAS FOUND ON VERIFICATION OF AIR INFORMATION RECEIVED IN THE OFFICE OF THE INCOME TAX DEPARTMENT. THE ASSESSEE WAS NOT ABLE TO RECONCILE THE SOURCES OF DEPOSITS MADE IN THE BANK ACCOUNT AN D ALSO DID NOT SUBMIT ANY BOOKS OF ACCOUNT FOR THE SAME. THE DETAILS OF SUCH DEPOSITS ARE AS UNDER: SR.NO. PARTICULARS AMOUNT 1 CASH DEPOSITED INTO BANK 14 87 800.00 2 UNSECURED LOAN RECEIVED DURING THE YEAR 12 66 000.00 3 ADVANCES GIVEN RECEIVED BACK 9 17 000.00 ITA NO. 57/AHD/13 A.Y. 08-09 PAGE 3 4 TICKET CHARGES & VISA FEES RECD FROM CLIENTS 6 53 500.00 5 CHEQUES RETURNED (DEPOSITED CHEQUES) 7 31 500.00 6 SALE OF SHARES (INDIA INFOLINE) 6 27 657.00 7 FD MATURED(WITH AXIS BANK LTD) 1 41 319.00 8 CONSULTING INCOME RECEIVED BY CHEQUE 1 72 595.00 9 OTHER MISCELLANEOUS 7 575.00 TOTAL 60 04 946.00 4. ON APPEAL BEFORE CIT(A) THE ASSESSEE SUBMITTED AS UNDER: 1. CASH DEPOSITED INTO BANK RS.14 87 800/- THE ASSESSEE HAS SUBMITTED THAT HE IS ENGAGED IN TR AVEL BOOKING BUSINESS AND VISA CONSULTING BUSINESS. HE C OLLECT CASH FROM HIS CUSTOMER TOWARDS TICKET FARE VISA FEES E TC. AND THE SAME CASH HAS BEEN DEPOSITED INTO BANK. AS AND WHEN REQU IRE THE ASSESSEE DRAWN CASH FROM BANK AND GIVEN TO RELEVANT AGENCIES TOWARDS TICKET FARE AND VISA FEES ETC. THE ASSESSE E HAS ALSO SUBMITTED CASH BOOK FOR THE PERIOD FROM 01-04-2007 TO 31-03-2008 WHICH IS SEEN AND COPY OF THE SAME IS HEREBY FORWAR DED TO YOU. HOWEVER AS THE ASSESSEE HAS FAILED TO SUBMIT THE A BOVE DETAILS AT THE TIME OF ASSESSMENT PROCEEDINGS HENCE CANNOT BE ACCEPTABLE AT THIS STAGE. THE THEN AO HAS CORRECTLY MADE THE ADDI TION. THE ABOVE FACTS ARE SUBMITTED TO YOUR HONOR FOR KIND CONSIDER ATION AND FINAL VIEW IN THE MATTER. 2. UNSECURED LOAN RECEIVED DURING THE YEAR OF RS.1 2 66 000/- THE ASSESSES HAS SUBMITTED THAT DURING THE YEAR THE ASSESSEE HAD RECEIVED UNSECURED LOAN FROM HIS FRIEN DS AND RELATIVES OF RS.12 66 000/- WHICH DETAILS ARE MENTI ONED BELOW: SR.NO. NAME AMOUNT 1 DASRATBHAI M. NAYEE 3 00 000.00 2 KAUSHIKBHAI B. PATEL 3 57 000.00 3 KETAN R. PANDYA 40 000.00 4 KRUPALIBEN K. PATEL 1 88 000.00 5 SATISHKUMAR D. LIMBACHIA 45 000.00 6 SKYDREAMS OVERSEAS 1 00 000.00 ITA NO. 57/AHD/13 A.Y. 08-09 PAGE 4 CONSULTANT 7 SONAL H PATEL 2 36 000.00 TOTAL 12 66 000.00 FURTHER THE ASSESSEE HAS SUBMITTED CONFIRMATIONS OF ALL ABOVE UNSECURED LOAN CREDITORS COPY OF BANK STATEMENT/PA SS BOOK AND COPY OF RETURN FILED BY ASSESSEE OF SR. NO.2 3 4 6 & 7 WHICH ARE SEEN AND COPIES OF THE SAME ARE HEREBY FORWARDED TO YOU. HOWEVER AS THE ASSESSEE HAS FAILED TO SUBMIT THE A BOVE DETAILS AT THE TIME OF ASSESSMENT PROCEEDINGS HENCE CANNOT BE ACCEPTABLE AT THIS STAGE. THE THEN AO HAS CORRECTLY MADE THE ADDI TION. THE ABOVE FACTS ARE SUBMITTED TO YOUR HONOR FOR KIND CONSIDER ATION AND FINAL VIEW IN THE MATTER. 3. ADVANCES GIVEN RECEIVED BACK OF RS.9 17 000/- THE ASSESSEE HAS SUBMITTED THAT DURING THE YEAR HE HAD GIVEN ADVANCES TO HIS FRIENDS AND RELATIVES. FURTHE R HE STATED THAT SUCH ADVANCES WERE RECEIVED BACK DURING THE YEAR WH ICH DETAILS ARE MENTIONED BELOW: SR.NO. NAME AMOUNT 1 AMRISH N. PATEL 1 50 000.00 2 BHARAT M PATEL 4 22 000.00 3 BHAVESH N. SHAH 1 50 000.00 4 BHAVIN KAUSHIK PATEL 35 000.00 5 MAHESH JAYANTILAL PATEL 1 60 000.00 TOTAL 9 17 000.00 THE ASSESSEE HAS SUBMITTED CONFIRMATIONS WITH COMPL ETE ADDRESS PAN OF ALL ABOVE PARTIES AND COPY OF BANK STATEMENT /PASS BOOK WHICH ARE SEEN AND COPIES OF THE SAME ARE HEREBY FO RWARDED TO YOU. HOWEVER AS THE ASSESSEE HAS FAILED TO SUBMIT THE ABOVE DETAILS AT THE TIME OF ASSESSMENT PROCEEDINGS HENCE CANNOT BE ACCEPTABLE AT THIS STAGE. THE THEN AO HAS CORRECTLY MADE THE ITA NO. 57/AHD/13 A.Y. 08-09 PAGE 5 ADDITION. THE ABOVE FACTS ARE SUBMITTED TO YOUR HON OR FOR KIND CONSIDERATION AND FINAL VIEW IN THE MATTER. 4. TICKET CHARGES & VISA FEES RECD FROM CLIENTS OF RS.6 53 500/- THE ASSESSEE HAS SUBMITTED THAT THE ASSESSES RECEIV ED ADVANCE OF RS.6 53 500/- FROM THEIR CUSTOMERS TOWAR DS THEIR TICKET FARE VISA FEES ETC. DETAILS ARE MENTIONED BELOW: SR.NO. NAME AMOUNT 1 BHARAT M. PATEL 47 000.00 2 BIPINBHAI G. PATEL 1 30 000.00 3 J. M. PATHAN 3 66 500.00 4 NARANBHAI KESHAVBHAI PATEL 40 000.00 5 RAMESHCHANDRA D. BHAVSAR 70 000.00 TOTAL.... 6 53 500.00 THE ASSESSEE HAS SUBMITTED COPIES OF LEDGER ACCOUNT WITH COMPLETE ADDRESS WHICH ARE SEEN AND COPIES OF THE S AME ARE HEREBY FORWARDED TO YOU. ASSESSEE IS ASKED TO SUBMI T CONFIRMATION OF ABOVE PARTIES AND ASSESSEE STATED THAT THESE ARE THE CUSTOMERS FOR TICKET AND VISA AND ALL PAYMENTS WERE RECEIVED IN CHEQUE ONLY WHICH HAS BEEN DULY ENTERED IN BOOKS OF ACCOUNTS. H OWEVER AS THE ASSESSEE HAS FAILED TO SUBMIT THE ABOVE DETAILS AT THE TIME OF ASSESSMENT PROCEEDINGS HENCE CANNOT BE ACCEPTABLE A T THIS STAGE. THE THEN AO HAS CORRECTLY MADE THE ADDITION. THE ABOVE FACTS ARE SUBMITTED TO YOUR HONOUR FOR KIND CONSIDERATION AND FINAL VIEW IN THE MATTER. 5. CHEQUES RETURNED (DEPOSITED CHEQUES) OF RS.7 31 500/- THE ASSESSEE HAS SUBMITTED THAT THE ASSESSEE RECEIV ED SUM OF RS.7 31 500/- FROM HIS CUSTOMERS TOWARDS ADV ANCE FOR TICKET FARE AND VISA FEES ON VARIOUS DATES. THE SAME CHEQU ES WERE DISHONORED BY THE BANK. DETAILS ARE MENTIONED BELOW : ITA NO. 57/AHD/13 A.Y. 08-09 PAGE 6 SR.NO. NAME AMOUNT 1 J. M. PATHAN 2 11 500.00 2 BIPINBHAI G. PATEL 80 000.00 3 SATISH LIMBACHIA 45 000.00 4 WALKING CUSTOMERS/VARIOUS (PERSONS) 3 95 000.00 TOTAL.... 7 31 500.00 THE ASSESSEE HAS PRODUCED THE BANK STATEMENT AND ST ATED THAT ALL THE ABOVE ENTRIES ARE DULY REFLECTED IN THE BANK ST ATEMENT. FURTHER ASSESSES ASKED TO SUBMIT THE CONFIRMATION OF THE AB OVE PARTIES BUT ASSESSEE STATED THAT THESE ENTRIES ARE CLEARLY REFL ECTED IN THE BANK STATEMENT AND IN ADDITION TO THIS ASSESSEE HAS ALSO FILED AN AFFIDAVIT AND COPY OF BANK CERTIFICATE IN WHICH AXIS BANK CER TIFIED THE DETAILS OF CHEQUE RETURN AND CHEQUE STOPPED BY THE ASSESSEE IN SUPPORT OF HIS CLAIM WHICH ARE SEEN AND COPIES OF THE SAME ARE HEREBY FORWARDED TO YOU. HOWEVER AS THE ASSESSEE HAS FAIL ED TO SUBMIT THE ABOVE DETAILS AT THE TIME OF ASSESSMENT PROCEED INGS HENCE CANNOT BE ACCEPTABLE AT THIS STAGE. THE THEN AO HAS CORRECTLY MADE THE ADDITION. THE ABOVE FACTS ARE SUBMITTED TO YOUR HONOR FOR KIND CONSIDERATION AND FINAL VIEW IN THE MATTER. 6. SALE OF SHARES (INDIA INFOLINE) OF RS.6 2 7 657/- THE ASSESSEE HAD SUBMITTED THAT THE ASSESSEE HAS MA DE SHARE TRANSACTIONS WITH INDIA INFO LINE LTD. AND AN AMOUNT OF RS.6 27 657/- WAS RECEIVED FROM INDIA INFO LINE LTD TOWARDS SALE OF SHARES AND THE SAME WAS DEPOSITED INTO THE AXIS BAN K. FURTHER THE ASSESSEE HAS SUBMITTED COPY OF CONTRA LEDGER AC COUNT OF INDIA INFO LINE LTD ALONG WITH CONTRACT NOTES (BILLS) FOR THE YEAR PERIOD OF 1.4.2007 TO 31.3.2008 WHICH ARE SEEN AND COPIES OF THE SAME ARE HEREBY FORWARDED TO YOU. HOWEVER AS THE ASSESSEE H AS FAILED TO SUBMIT THE ABOVE DETAILS AT THE TIME OF ASSESSMENT PROCEEDINGS HENCE CANNOT BE ACCEPTABLE AT THIS STAGE. THE THEN AO HAS CORRECTLY MADE THE ADDITION. THE ABOVE FACTS ARE SU BMITTED TO YOUR HONOR FOR KIND CONSIDERATION AND FINAL VIEW IN THE MATTER. ITA NO. 57/AHD/13 A.Y. 08-09 PAGE 7 7. FD MATURED (WITH AXIS BANK LTD) OF RS.1 41 319/- THE ASSESSEE HAD SUBMITTED THAT THE ASSESSEE HAS MA DE FIXED DEPOSIT WITH AXIS BANK LTD. THE SAME FD WAS M ATURED AND AN AMOUNT OF RS.1 41 319/-WAS CREDITED BY THE BANK. COPY OF CERTIFICATE FROM AXIS BANK LTD IS SUBMITTED BY THE ASSESSEE WHICH IS SEEN AND COPY OF THE SAME IS HEREBY FORWARDED TO YOU. HOWEVER AS THE ASSESSEE HAS FAILED TO SUBMIT THE ABOVE DETA ILS AT THE TIME OF ASSESSMENT PROCEEDINGS HENCE CANNOT BE ACCEPTABL E AT THIS STAGE. THE THEN AO HAS CORRECTLY MADE THE ADDITION. THE ABOVE FACTS ARE SUBMITTED TO YOUR HONOR FOR KIND CONSIDER ATION AND FINAL VIEW IN THE MATTER. 8. CONSULTING INCOME RECEIVED BV CHEQUE OF R S. 1 72 595/- DURING THE YEAR ASSESSEE HAS RECEIVED CONSULTING FEES OF RS.172595/- FROM VARIOUS CUSTOMERS. THE ASSESSEE HA S SUBMITTED COPY OF LEDGER ACCOUNT AND ALSO STATED THAT THE ABO VE RECEIPTS ARE INCLUDED IN THE TOTAL RECEIPTS SHOWN IN THE P & L A /C. AND ALL ENTRIES ARE REFLECTED IN THE BANK STATEMENT. COPY OF THE SA ME IS SEEN AND HEREBY FORWARDED TO YOU. HOWEVER AS THE ASSESSEE H AS FAILED TO SUBMIT THE ABOVE DETAILS AT THE TIME OF ASSESSMENT PROCEEDINGS HENCE CANNOT BE ACCEPTABLE AT THIS STAGE. THE THEN AO HAS CORRECTLY MADE THE ADDITION. THE ABOVE FACTS ARE S UBMITTED TO YOUR HONOR FOR KIND CONSIDERATION AND FINAL VIEW IN THE MATTER. 9. OTHER MISCELLANEOUS OF RS.7 575/- THE ASSESSEE HAD SUBMITTED THAT A SUM OF RS.7575/- IS CREDITED BY BANK WHICH INCLUDES BANK INTEREST CASH REVERSAL AND CHARGES REVERSAL BY BANK. THE ABOVE FACTS ARE SUBMI TTED TO YOUR HONOR FOR KIND CONSIDERATION AND FINAL VIEW IN THE MATTER. THE LD. CIT(A) CALLED FOR REMAND REPORT FROM THE A. O. ON 26.08.2011 ON THE WRITTEN SUBMISSIONS FILED BY THE ASSESSEE. THE ASS ESSING OFFICER SUBMITTED ITA NO. 57/AHD/13 A.Y. 08-09 PAGE 8 THE REMAND REPORT VIDE LETTER DATED 19.04.2012 WHIC H SPOTTED IN THE ORDER OF LD. CIT(A) AND READS AS UNDER: 'KINDLY REFER TO YOUR HONOR'S LETTER NO.CIT(A)XV/HARISH B. PATEL/2012-13/26 DATED 10.04.2012 ON THE ABOVE CAPTIONED SUBJECT. AS PER YOUR DIRECTIONS I HAVE GONE THROUGH THE SUBM ISSIONS MADE BY THE ASSESSEE IN YOUR OFFICE AND THE DETAILED REPORT IS SUBMITTED AS UNDER. IN THIS CASE BRIEFLY THE FACTS OF THE CASE ARE TH AT THE ASSESSEE IS ENGAGED IN THE BUSINESS OF TICKET BOOKING/VISA CONSULTING S ERVICE. THE ASSESSMENT WAS COMPLETED U/S.143(3) I.T. ACT VIDE ORDER DATED 14/12/2010 DETERMINING THE TOTAL INCOME AT RS.61 13 480/- AS A GAINST RETURNED INCOME OF RS.1 08 540/-. THE ASSESSED INCOME COMPRISED AN ADDITIONS OF RS.60 04 945/- BEING ADDITION U/S.68 OF THE I.T. ACT. I . ON PERUSAL OF THE ASSESSMENT ORDER IT CAN BE SEE N THAT THE ASSESSEE WAS GIVEN SUFFICIENT OPPORTUNITIES ON VARI OUS DATES TO PRODUCE SUPPORTING EVIDENCE BOOKS OF ACCOUNTS. HOWEVER THE ASSESSEE DID NOT FURNISH THE DETAILS AS REQUIRED BY THE THEN A.O AND FINALLY A SHOW CAUSE NOTICE WAS ISSUED ON 02/12/2010 AND AFTER THAT THE THEN A.O. HAS PASSED THE ORDER. THEREFORE YOUR HONOR IS REQUESTED TO TA KE SUITABLE VIEW IN THE MATTER WITH REGARD TO THE ASSESSEE'S CLAIM THAT IT WAS PREVENTED BY SUFFICIENT CAUSE FOR FURNISHING THE DETAILS CALLED FOR BY THE AO AT THE TIME ASSESSMENT PROCEEDINGS. II . IN RESPECT GROUND RELATING TO ADDITION ON ACCOUN T OF CASH CREDIT U/S. 68 OF THE IT. ACT OF RS60 04 945/- IN THIS RESPECT IT IS SUBMITTED THAT THE THEN A.O. HAS MADE THE ADDITION OF RS.60 04 495/- U /S. 68 OF THE IT ACT AFTER AFFORDING FULL OPPORTUNITY TO THE ASSESSEE. D URING THE COURSE OF ASSESSMENT PROCEEDINGS IT WAS FOUND OUT THAT THE AS SESSEE HAS NOT SHOWN A BANK ACCOUNT BEARING NO.298010100017268 MAI NTAINED WITH AXIS BANK AHMEDABAD IN HIS BOOKS OF ACCOUNTS WHICH HAS BEEN CAUGHT DURING THE COURSE OF ASSESSMENT PROCEEDING AND ON V ERIFICATION OF AIR ITA NO. 57/AHD/13 A.Y. 08-09 PAGE 9 INFORMATION RECEIVED IN THE OFFICE. AS ASSESSEE HA S NOT ABLE TO RECONCILE THE SOURCES OF DEPOSITS MADE IN THE ABOVE BANK ACCO UNT AND ALSO NOT SUBMITTED ANY BOOKS OF ACCOUNTS HENCE THEN AO HAS M ADE ADDITION OF TOTAL BANK RECEIPTS OF RS.60 04 945/- TO THE TOTAL INCOME OF THE ASSESSEE AFTER PROVIDING SUFFICIENT OPPORTUNITIES TO THE ASS ESSEE. 5. THE ASSESSEE WAS GIVEN COPY OF THIS REMAND REPOR T BY THE LD. CIT(A) ON 27.04.2012 AND THE SUBMISSION OF THE ASSESSEE IN TH E REJOINDER ARE AS QUOTED IN THE ORDER OF THE CIT(A) READS AS UNDER: '(1) DURING THE APPELLATE PROCEEDINGS SUBMISSIONS D ATED 25 TH JULY 2011 WERE FILED BEFORE YOUR HONOUR ALONG-WITH ANNEXURE-' A' I.E. AFFIDAVIT OF SHRI HARESH B. PATEL THE APPELLANT AND ANNEXURE-'B' I.E . A CHART EXPLAINING ALL THE DEPOSITS MADE WITH THE AXIS BANK. BESIDES ABOVE NECESSARY EVIDENCES REGARDING UNSECURED LOAN CREDITORS VIZ. C ONFIRMATIONS WITH PAN CONTRA LEDGER ACCOUNTS AND COPIES OF RETURNS OF INC OME OF CREDITORS ETC. WERE FILED ALONG-WITH A COPY OF ACCOUNT OF INDIA IN FO LINE AND SUPPORTING CONTRACT NOTES ETC. (2) PURSUANT TO THE DIRECTIONS OF YOUR HONOUR THE ID. A.O. HAS CALLED THE APPELLANT DURING THE REMAND PROCEEDINGS AND ASKED H IM TO PRODUCE BOOKS OF ACCOUNT SUPPORTING VOUCHERS AND OTHER DETAILS E TC. IN RESPONSE TO THE ABOVE REQUIREMENT SHRI NILESH PRAJAPATI ADVOCATE AND SHRI KALAI MUDALIAR ACCOUNTANT ATTENDED FROM TIME TO TIME AND PRODUCED COMPLETE SET OF BOOKS OF ACCOUNT AND SUPPORTING VOUCHERS ETC . THE ID. A.O. AFTER HAVING EXAMINED THE BOOKS OF ACCOUNT LEDGER ACCOUN TS AND OTHER DETAILS ALREADY PLACED ON RECORD ASKED THE APPELLANT TO FUR NISH FOLLOWING MORE DETAILS: (A) CONFIRMATION OF ALL LOANS & ADVANCES (B) COPIES OF ADVANCE FOR TICKETS AND VISA FEE A/C (C) CERTIFICATE FROM AXIS BANK REGARDING MATURITY O F F.D. (D) AFFIDAVIT OF THE APPELLANT REGARDING 'CHEQUES R ETURNED' (E) CERTIFICATE FROM AXIS BANK REGARDING 'CHEQUES R ETURNED' ITA NO. 57/AHD/13 A.Y. 08-09 PAGE 10 (F) BANK STATEMENTS THE APPELLANT HAS FILED THE ABOVE DETAILS AND THE L D. A.O. AFTER DETAILED EXAMINATION OF THE BOOKS OF ACCOUNT AND DETAILS SOU GHT EXPLANATIONS FROM THE REPRESENTATIVES OF THE APPELLANT DURING THE REM AND PROCEEDINGS FROM TIME TO TIME AND HAVING SATISFIED PREPARED THE ABOV E REMAND REPORT. (3) DURING THE COURSE OF EXAMINATION OF THE DETAILS IT WAS FOUND THAT A FEW ARITHMETICAL ERRORS HAD TAKEN PLACE WHILE COMPILIN G 'FIGURES' UNDER DIFFERENT HEADS FOR BREAKUP OF RS.60 04 946/-. IT M AY KINDLY BE NOTED THAT THE ID. A.O. HAS MADE ADDITION OF RS.60 04 946/- IN THE ASSESSMENT ORDER IN RESPECT OF TOTAL SUMS DEPOSITED EITHER IN CASH O R CHEQUES WITH AXIS BANK DURING THE YEAR UNDER CONSIDERATION. THEREFORE THE FINAL BREAK UP GIVEN BY THE ID. A.O. IN TABLE AT PAGE NO. 2 OF THE REMAND REPORT IS CORRECT AND ACCEPTABLE TO THE APPELLANT. (4) THE ID. A.O. DID NOT COMMENT IN THE REMAND REPO RT ABOUT THE CONTENTS OF THE AFFIDAVIT OF THE APPELLANT WHERE IT WAS CLE ARLY AFFIRMED BY THE APPELLANT THAT THERE WAS 'SUFFICIENT CAUSE' ON HIS PART FOR NON-COMPLIANCE OF STATUTORY NOTICES. THE FAILURE TO COMPLY WITH ST ATUTORY NOTICES WAS BECAUSE OF SHEER NEGLIGENCE OR INCOMPETENCE ON THE PART OF SHRI RHAVESH H. VYAS ADVOCATE. IN VIEW OF THE ABOVE THE BOOKS OF ACCOUNT COULD NOT BE PRODUCED AND NECESSARY DETAILS COULD NOT BE FILE D BEFORE THE ID. AC. DURING THE ASSESSMENT PROCEEDINGS. (4) IT MAY KINDLY BE NOTED THAT THE ID. A.O. EVEN A FTER HAVING SATISFIED BY EXAMINATION OF BOOKS OF ACCOUNT AND SUPPORTING EVID ENCE DID NOT OFFER ANY COMMENT IN RESPECT OF VARIOUS SUMS CREDITED IN THE BANK ACCOUNT OF THE APPELLANT BY WAY OF TICKETING FEE OR VISA FEE LOA NS RETURN OF ADVANCES AND LOANS RETURN OF CHEQUES ETC. IT IS ALSO IMPORT ANT TO NOTE THAT THE ID. A.O. DID NOT FIND ANY EXPLANATION OR SUBMISSION OF THE APPELLANT INACCURATE OR INCORRECT. AS THE ID. A.O. HAS FAILED TO CONTRAD ICT THE EXPLANATIONS/SUBMISSIONS/DETAILS/EVIDENCES PLACED B EFORE HIM IT IS PRESUMED THAT THE DEPARTMENT DO NOT HAVE ANY OBJECT ION IN RESPECT OF EXPLANATIONS AND SUBMISSIONS MADE AND EVIDENCES PLA CED BEFORE THE FIRST ITA NO. 57/AHD/13 A.Y. 08-09 PAGE 11 APPELLATE AUTHORITY IN RESPECT OF DEPOSITS OF TOTAL SUM OF RS.60 04 946/- WITH AXIS BANK DURING THE YEAR. (5) THE ADDITION OF RS.60 04 946/- WAS MADE BY THE ID. A.O; IN RESPECT OF AMOUNT DEPOSITED WITH AXIS BANK BY THE APPELLANT EI THER THROUGH CASH OR CHEQUES DURING THE FINANCIAL YEAR 2007-08. ALL THE CREDIT ENTRIES IN THE BANK ACCOUNT OF THE APPELLANT WERE CATEGORIZED UNDE R NINE HEADS AS PER THE TABLE GIVEN ON PAGE NO.2 OF THE REMAND REPORT. THE ID. A.O. HAS ALSO EVALUATED THE EXPLANATIONS AND EVIDENCES PLACED BEF ORE HIM 'HEAD-WISE' IN HIS REMAND REPORT ON PAGE NO. 2 TO 6. OUR COMMEN TS ON THE OBSERVATION AND CONCLUSION OF THE ID A.O. ARE AS UN DER : (A) CASH DEPOSITED IN BANK RS.14 87 800/-: THE APPELLANT HAS BEEN ENGAGED IN TICKET BOOKING AN D VISA CONSULTANCY. DURING THE COURSE OF HIS BUSINESS HE USED TO RECEI VE CASH FROM HIS CUSTOMERS TOWARDS BOOKING OF TICKETS AND OBTAINING VISA ETC. THE ABOVE AMOUNT WAS FIRST DEPOSITED BY HIM IN HIS BANK ACCOU NT AND LATER ON WITHDRAWN FROM TIME TO TIME IN ORDER TO MAKE PAYMEN TS TO THE AUTHORITIES OR OTHER MAIN AGENTS. IN SUPPORT OF THE ABOVE TRANS ACTIONS CASH BOOK FOR THE FINANCIAL YEAR 2007-08 WAS PLACED BEFORE THE ID . AC. ALONG-WITH RELEVANT VOUCHERS ETC. DESPITE IN-DEPTH EXAMINATION THE ID. A.O. COULD NOT POINT OUT ANY IRREGULARITY IN THE ABOVE AND ULTIMAT ELY HE HAS SIMPLY MENTIONED THAT THE APPELLANT HAD FAILED TO SUBMIT T HE ABOVE DETAILS AT THE TIME OF ASSESSMENT PROCEEDINGS HENCE COULD NOT BE ACCEPTED AT THIS STAGE. (B) UNSECURED LOANS RECEIVED AMOUNTING TO RS. 12 66 000/-: DURING THE YEAR UNDER CONSIDERATION THE APPELLANT HAD RECEIVED UNSECURED LOANS AMOUNTING TO RS.12 66 000/- FROM SE VEN PERSONS. THOUGH INITIALLY THE ABOVE AMOUNT WAS WRONGLY MENTI ONED AS RS.10 66 000/-. COMPLETE DETAILS ABOUT THESE UNSECU RED LOANS VIZ CONFIRMATIONS CONTAINING PAN COPIES OF BANK ACCOUN TS/PASS BOOKS COPIES OF RETURNS OF INCOME (WHERE CREDITORS WERE A SSESSED) ETC. WERE FILED. THUS THE ONUS U/S 68 OF THE INCOME TAX ACT 1961 HAS BEEN DISCHARGED BY THE APPELLANT. THE ID. A.O. HAS EXAMI NED ABOVE DETAILS BUT ITA NO. 57/AHD/13 A.Y. 08-09 PAGE 12 HE COULD NOT FIND ANY DISCREPANCY IN THE ABOVE EVID ENCES AND HE HAS SIMPLY MENTIONED THAT THE APPELLANT HAD FAILED TO S UBMIT THE ABOVE DETAILS AT THE TIME OF ASSESSMENT PROCEEDINGS HENCE COULD N OT BE ACCEPTED AT THIS STAGE. (C) ADVANCES RECEIVED BACK AMOUNTING RS.9 17 000/- THE APPELLANT HAS SUBMITTED CONFIRMATIONS WITH COMP LETE ADDRESSES PAN AND COPIES OF BANK STATEMENTS/PASS BOOKS AND LEDGER ACCOUNT ETC. OF EACH DEBTOR DURING THE REMAND PROCEEDINGS WHEN CA LLED BY THE ID. A.O. THE ID. A.O. HAS EXAMINED THESE EVIDENCES AND FINDS THE SAME IN ORDER. HE SIMPLY MENTIONED THAT THE APPELLANT HAD FAILED T O SUBMIT THE ABOVE DETAILS AT THE TIME OF ASSESSMENT PROCEEDINGS HENCE COULD NOT BE ACCEPTED AT THIS STAGE. (D) RECEIPT OP TICKET CHARGES P VISA FEE RS. 6 53 5 00/-: WHEN CALLED BY THE ID. A.O. DURING THE REMAND PROCE EDINGS THE APPELLANT HAS SUBMITTED LEDGER ACCOUNTS OF FIVE PERSONS FROM WHOM HE HAD RECEIVED TICKET CHARGES AND VISA FEE THROUGH CHEQUES DURING THE RELEVANT PREVIOUS YEAR AMOUNTING TO RS.6 53 500/-. COMPLETE ADDRESSES WERE ALSO SUBMITTED. THE ONLY OBJECTION ON THE PART OF THE L D. A.O. IS THAT THE APPELLANT HAD FAILED TO SUBMIT THE ABOVE DETAILS AT THE TIME OF ASSESSMENT PROCEEDINGS HENCE COULD NOT BE ACCEPTED AT THIS STA GE. (E) CHEQUES RETURNED AMOUNTING TO RS 7 31 500/-: THE APPELLANT HAS SUBMITTED THAT CHEQUES AMOUNTING TO RS. 7 31 500/- RECEIVED FROM A FEW CUSTOMERS COULD NOT BE CREDITED IN HIS BANK ACCOUNT BECAUSE HIS BANKER HAD RETURNED THOSE CHEQUES FOR M AINLY TWO REASONS VIZ INSUFFICIENT FUNDS OR STOP PAYMENT ETC. IN THI S CONNECTION AN AFFIDAVIT DULY AFFIRMED BY THE APPELLANT DATED 21 ST MARCH 2012 WAS FILED BEFORE THE ID A.O. BESIDES A CERTIFICATE ISSUED BY AXIS BANK DATED 21 ST APRIL 2012. THE ID. A.O. OUGHT TO HAVE ACCEPTED THESE EVIDENCES WHICH WERE FILED AT HIS INSTANCE ONLY. DESPITE THE ABOVE HE HAS SIMPLY MENTIONED IN THE REMAND REPORT THAT THE APPELLANT HAD FAILED TO SUBM IT THE ABOVE DETAILS AT THE TIME OF ASSESSMENT PROCEEDINGS HENCE COULD NOT BE ACCEPTED AT THIS STAGE. ITA NO. 57/AHD/13 A.Y. 08-09 PAGE 13 (F) SALE PROCEEDS OF SHARES AMOUNTING TO RS.6 27 657/-: THE APPELLANT HAS BEEN MAINTAINING AN ACCOUNT WITH INDIA INFO LINE IN CONNECTION WITH PURCHASE AND SALE OF SHARES. DURING THE YEAR THE APPELLANT HAD RECEIVED A TOTAL SUM OF RS.6 27 657/- FROM INDIA INFO LINE THROUGH CHEQUES IN CONNECTION WITH SALE OF SHARES AND THE ABOVE CHEQUES WERE CREDITED IN HIS BANK ACCOUNT WITH AXIS BANK FROM TIME TO TIME. COPIES OF CONTRA ACCOUNTS WITH INDIA INFO LIN E AND CONTRACT NOTES WERE FURNISHED. THE ID. A.O. DID NOT FIND ANY DISCR EPANCY IN THE ABOVE RESPECT AND HE HAS MERELY STATED THAT THAT THE APPE LLANT HAD FAILED TO SUBMIT THE ABOVE DETAILS AT THE TIME OF ASSESSMENT PROCEEDINGS HENCE COULD NOT BE ACCEPTED AT THIS STAGE. (G) PROCEEDS OF MATURITY OF F.D. AMOUNTING TO RS. 1 41 319/-: ONE F.D. PURCHASED BY THE APPELLANT FROM AXIS BANK HAD BEEN MATURED DURING THE YEAR UNDER CONSIDERATION AND ACCORDINGLY THE BANK HAD CREDITED HIS ACCOUNT BY RS.1 41 319/-. DURING THE R EMAND PROCEEDING AT THE INSTANCE OF THE ID. A.O; THE APPELLANT HAS OBTA INED A CERTIFICATE FROM AXIS BANK IN THIS CONNECTION AND PLACED THE SAME BE FORE THE ID. A.O. THE ID. A.O. COULD NOT REBUT THESE EVIDENCES AND HAS SI MPLY MENTIONED THAT THE APPELLANT HAD FAILED TO SUBMIT THE ABOVE DETAIL S AT THE TIME OF ASSESSMENT PROCEEDINGS HENCE COULD NOT BE ACCEPTED AT THIS STAGE. (H) INCOME FROM CONSULTANCY RS. 1 72 595/-: THE APPELLANT HAD RECEIVED A TOTAL SUM OF RS.1 72 5 95/- THROUGH CHEQUES AS VISA CONSULTANCY FEE DURING THE YEAR UNDER CONSI DERATION. THE CHEQUES WERE DEPOSITED IN HIS BANK ACCOUNT AND DURING THE R EMAND PROCEEDINGS HAS FILED COPY OF LEDGER ACCOUNT AND OTHER DETAILS CLEARLY INDICATING THAT THE INCOME WAS DULY SHOWN IN THE PROFIT & LOSS A/C. NO ADVERSE FINDING WAS GIVEN BY THE ID. A.O. AND HE HAS SIMPLY MENTION ED THAT THE APPELLANT HAD FAILED TO SUBMIT THE ABOVE DETAILS AT THE TIME OF ASSESSMENT PROCEEDINGS HENCE COULD NOT BE ACCEPTED AT THIS STA GE. (I) MISCELLANEOUS INCOME RS. 7 575/- ITA NO. 57/AHD/13 A.Y. 08-09 PAGE 14 A SUM OF RS.7 575/- WAS FOUND CREDITED IN THE BANK ACCOUNT OF THE APPELLANT ON ACCOUNT OF INTEREST CHARGES REVERSAL ETC. DURING THE YEAR UNDER CONSIDERATION. THE ID. A.O. HAS EXAMINED THE RELEVANT EVIDENCES BUT THERE WAS NOTHING AGAINST THE EXPLANATIONS GIVE N BY THE APPELLANT. (6) IN VIEW OF THE ABOVE POSITION THE EXPLANATIONS AND SUBMISSIONS GIVEN BY THE APPELLANT BOTH BEFORE YOUR HONOUR AND BEFORE THE ID. A.O. MAY KINDLY BE ACCEPTED AS THE ID A.O. HAS FAILED TO BR ING AN IOTA OF EVIDENCE AGAINST THE EVIDENCES AND EXPLANATIONS SUBMITTED BY THE APPELLANT DESPITE THE DETAILED AND THOROUGH EXAMINATION DURIN G THE REMAND PROCEEDINGS. THE ABOVE EVIDENCES CLEARLY EXPLAINS T HE VARIOUS TOTALING TO RS.60 04 946/- DEPOSITED IN THE BANK ACCOUNT OF THE APPELLANT BY WAY OF CASH OR CHEQUES DURING THE YEAR UNDER CONSIDERATION . WE EXPECT THAT YOUR HONOUR WOULD FIND THE ABOVE SUB MISSION IN ORDER TO ALLOW THE APPEAL OF THE APPELLANT. THEREAFTER THE LD. CIT(A) DELETED THE ADDITION OF RS.60 04 945/- U/S. 68 OF THE IT ACT BY OBSERVING AS UNDER: GROUND NO.2 & 3 ARE RELATED TO ADDITION OF RS.60 0 4 945 U/S.68 OF THE ACT. IN FACT AT PARA 10 OF ASSTT. ORDER THE A.O . MENTIONED ABOUT ADDITION U/S.69 OF THE ACT WHILE IN COMPUTING TOTAL INCOME AT PARA 11 THE SECTION IS MENTIONED AS 68 OF THE ACT. WITHOUT PREJ UDICE TO THIS TYPOGRAPHIC ERROR THE MAJOR CONTENTION OF THE APPE LLANT IN THIS REGARD IS TWOFOLD. FIRSTLY HIS BONAFIDE BELIEF IN SHRI BHAVE SH H VYAS ADVOCATE FOR PROPER REPRESENTATION OF HIS CASE WHICH ULTIMATELY CULMINATED IN SUCH ADDITION BEING SHRI BHAVESH H VYAS NOT ONLY FAILED TO REPRESENT HIS CASE BUT ALSO NOT INFORMED THE APPELLANT ABOUT THE SAME AND BY THE TIME APPELLANT BECOME AWARE THROUGH THE PENALTY ORDER FO R NON-COMPLIANCE AND ARRANGEMENT OF ANOTHER AUTHORISED REPRESENTATIV E IT WAS TOO LATE AND A.O. REFUSED FURTHER OPPORTUNITY. SECONDLY THE APP ELLANT HAS PROPER EXPLANATION FOR EACH AND EVERY ENTRY IN THE BANK AC COUNT DULY SUPPORTED BY NECESSARY EVIDENCES TO SHOW THAT THERE IS NO GRO UND FOR SUCH ADDITION. ITA NO. 57/AHD/13 A.Y. 08-09 PAGE 15 IT IS THEREFORE REQUESTED THAT ALL THE DETAILS AND EVIDENCES HAS TO BE ADMITTED AS PER RULE 46A CONSIDERING THE FACT THAT APPELLANT WAS PREVENTED BY SUFFICIENT CAUSE FOR NON-SUBMISSION OF SUCH DETAILS AND EVIDENCES BEFORE A.O. CONSIDERING THE AFFIDAVIT SO FILED BY THE APPELLANT WHICH WAS NOT CONTROVERTED BY A.O. IN THE REMAND RE PORT AND NATURE OF ADDITION VIZ-AVIZ EVIDENCES SO SUBMITTED I AM INCL INED WITH THE CONTENTIONS OF THE APPELLANT THAT HE WAS PREVENTED BY SUFFICIENT CAUSE FOR NOT PRODUCING THESE DETAILS BEFORE THE A.O. AND THE SAME BEING CRUCIAL AND MATERIAL EVIDENCES AGAINST SUCH ADDITION THE S AME BE ADMITTED AS ADDITIONAL EVIDENCES AS PER RULE 46A. THESE EXPLANA TION AND DETAILS ARE THEREFORE ADMITTED FOR CONSIDERATION OF APPEAL. NOW ON MERIT THE APPELLANT HAS PRODUCED THE DETAI LS / EXPLANATION WITH SUPPORTING EVIDENCES IN RESPECT OF EACH & EVER Y ENTRY IN THE BANK ACCOUNT OF APPELLANT FOR WHICH THIS IMPUGNED ADDITI ON WAS MADE. AS DISCUSSED IN THIS ORDER IN EARLIER PARA THE A.O. I N THE REMAND REPORT CONSIDERED ALL THESE EVIDENCES AND COMMENTED WITH O NE ADVERSE COMMENT THAT 'THE SAME WERE NOT FURNISHED BEFORE A. O. DURING ASSTT. PROCEEDINGS THEREFORE THE SAME SHOULD NOT BE ADMITT ED.' THE BIFURCATION OF TOTAL AMOUNT OF RS.60 04 946 UNDER VARIOUS HEADS WERE EXAMINED BY A.O. IN THE REMAND REPORT WITH DETAILS / EXPLANATIO NS AND SUPPORTING EVIDENCES IN THE FORM OF CONTRA ACCOUNT CONFIRMATI ON PAN OF VARIOUS PARTIES FROM WHOM APPELLANT RECEIVED THE SUM IN CAS H AS WELL AS CHEQUE. ALL THESE EVIDENCES WERE FOUND SATISFACTORY TO A.O. AND NO ADVERSE FINDING OR COMMENT IS OFFERED BY HIM IN HIS REMAND REPORT. IT IS THEREFORE AFTER ADMISSION OF ADDITIONAL EVIDENCE THERE REMAINS NO GROUND FOR ANY SUCH ADDITION EITHER U/S.68 OR 69 OF THE ACT. THE A.O. I S DIRECTED TO DELETE SUCH ADDITION. THE APPELLANT GETS RELIEF ACCORDINGLY. 6. LD. SR. D.R. DURING THE COURSE OF HIS ARGUMENT S IMPLY STATED THAT THERE WAS NO SPECIFIC MISTAKE IN THE ORDER OF THE CIT(A) WHICH WAS PASSED AFTER CONSIDERING THE REMAND REPORT SUBMITTED BY THE A.O. IN VIEW OF THIS SUBMISSION OF THE LD. SR. D.R. WE DO NO FIND ANY G OOD REASON TO INTERFERE WITH ITA NO. 57/AHD/13 A.Y. 08-09 PAGE 16 THE ORDER OF THE CIT(A). IT IS CONFIRMED. THE GRO UNDS OF REVENUE ARE DISMISSED. 7. IN THE RESULT THE APPEAL OF THE REVENUE IS DI SMISSED. ORDER PRONOUNCED IN THE COURT ON THURSDAY THE 17 TH DAY OF APRIL 2014 AT AHMADABAD. SD/- SD/- ( MUKUL KR. SHRAWAT ) (N. S. SAINI) JUDICIAL MEMBER ACCOUNTANT MEMBER TRUE COPY S.K.SINHA - - - - $ $$ $ &. &. &. &. / . / . / . / . / COPY OF ORDER FORWARDED TO:- 1. '# / APPELLANT 2. &''# / RESPONDENT 3. 3 / CONCERNED CIT 4. 3- / CIT (A) 5. .78 & / DR ITAT AHMEDABAD 6. 8:; <= / GUARD FILE. BY ORDER/ - >/ @ A