ACIT CEN CIR 40, MUMBAI v. MUNISH M. KHAN, MUMBAI

ITA 8002/MUM/2011 | 2007-2008
Pronouncement Date: 29-04-2015 | Result: Allowed

Appeal Details

RSA Number 800219914 RSA 2011
Assessee PAN AQBTM9300L
Bench Mumbai
Appeal Number ITA 8002/MUM/2011
Duration Of Justice 3 year(s) 5 month(s)
Appellant ACIT CEN CIR 40, MUMBAI
Respondent MUNISH M. KHAN, MUMBAI
Appeal Type Income Tax Appeal
Pronouncement Date 29-04-2015
Appeal Filed By Department
Order Result Allowed
Bench Allotted B
Tribunal Order Date 29-04-2015
Date Of Final Hearing 28-04-2015
Next Hearing Date 28-04-2015
Assessment Year 2007-2008
Appeal Filed On 28-11-2011
Judgment Text
B IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH MUMBAI BEFORE SHRI G.S. PANNU ACCOUNTANT MEMBER AND SHRI AMIT SHUKLA JUDICIAL MEMBER ./ I.T.A. NOS. 8002 8003 & 8004 /MUM/2011 ( / ASSESSMENT YEARS : 2007-08 2008-09 & 2009-10 ACIT CC 40 ROOM NO. 653 6 TH FLOOR AAYAKAR BHAVAN M.K. ROAD MUMBAI 20. / VS. MR. MUNISH M. KHAN 1403 A-WING RAJ CLASSIC BLDG. YARI ROAD VERSOVA ANDHERI (W). ./ PAN : AAQBTM9300L ( / APPELLANT ) .. ( / RESPONDENT ) A PPELLANT BY SHRI S.J. SINGH CIT DR R E SPONDENT BY : MS. BHOOMIKA VORA / DATE OF HEARING : 29-04-2015 / DATE OF PRONOUNCEMENT : 29-04-2015 [ !' / O R D E R PER BENCH . : THE CAPTIONED THREE APPEALS BY THE REVENUE ARE DIRE CTED AGAINST THREE SEPARATE ORDERS OF THE LD. CIT(A) 38 MUMBAI DATE D 30-08-2011 WHICH IN TURN HAS ARISEN FROM THE ORDERS PASSED BY THE ASSES SING OFFICER UNDER SECTION 143(3) READ WITH SECTION 153C OF THE INCOME TAX ACT 1961 DATED 30- 12-2010 PERTAINING TO ASSESSMENT YEARS 2007-08 TO 2 009-10. 2. IN ALL THE APPEALS A COMMON ISSUE IS INVOLVED AND THEREFORE THE APPEALS HAVE BEEN CLUBBED AND HEARD TOGETHER FOR TH E SAKE OF CONVENIENCE AND BREVITY. ITA 8002 & 8003/M/11 2 3. IN ALL THE APPEALS A COMMON GRIEVANCE OF THE RE VENUE IS THAT THE LD. CIT(A) ERRED IN DELETING THE ADDITION MADE ON PROT ECTIVE BASIS IN THE HANDS OF THE ASSESSEE WITHOUT APPRECIATING THE FACT THAT THE ADDITION MADE ON SUBSTANTIVE BASIS IN THE HANDS OF MR. MUNIR KHAN H AD NOT BECOME FINAL YET. 4. IN BRIEF THE RELEVANT FACTS ARE THAT A SEARCH & SEIZURE ACTION UNDER SECTION 132(1) OF THE ACT WAS CARRIED OUT ON MR. MU NIR KHAN ON 28-02-2009 WHICH INTER ALIA REVEALED A LARGE NUMBER OF BANK ACCOUNTS MAINTAINED IN THE NAMES OF DIFFERENT PERSONS INCLUDING THE ASSESSEE BEFORE US. THE DETAILS OF THE BANK ACCOUNTS REVEALED DEPOSIT OF HUGE AMOUNTS OF CASH. ALL THE AMOUNTS DEPOSITED IN THE BANK ACCOUNTS MAINTAINED IN DIFFER ENT NAMES INCLUDING THAT IN THE NAME OF THE ASSESSEE WERE TAKEN INTO CONSID ERATION DURING THE ASSESSMENT PROCEEDINGS OF MR. MUNIR KHAN AND ADDITI ONS WERE MADE ON SUBSTANTIVE BASIS ON THE GROUND THAT MR. MUNIR KHA N WAS THE MAIN PERSON WHO WAS RUNNING A BUSINESS OF SELLING SPURIOUS MEDI CAL PRODUCTS; AND EARNINGS FROM SUCH BUSINESS WERE DEPOSITED IN SEVER AL BANK ACCOUNTS MAINTAINED IN HIS OWN NAME AND IN THE NAME OF HIS F AMILY MEMBERS ETC. HOWEVER THE ASSESSING OFFICER ALSO MADE PROTECTIVE ASSESSMENTS IN THE HANDS OF THE RESPECTIVE PERSONS IN WHOSE NAMES THE BANK ACCOUNTS WERE MAINTAINED. THUS THE ASSESSMENT YEAR-WISE DETAILS OF THE BANK DEPOSITS ASSESSED ON PROTECTIVE BASIS IN THE HANDS OF THE AS SESSEE ARE AS FOLLOWS:- ASSESSMENT YEAR AMOUNT 2007-08 RS. 38 53 650/- 2008-09 RS. 65 92 882/- 2009-10 RS 98 116/- 5. THE AFORESAID THREE ADDITIONS MADE ON PROTECTIVE BASIS ARE THE SUBJECT MATTER OF DISPUTE BEFORE US IN THE THREE CAPTIONED APPEALS. THE LD. CIT(A) HAS DELETED THE ABOVE ADDITIONS IN THE HANDS OF THE ASS ESSEE ON THE GROUND THAT ITA 8002 & 8003/M/11 3 SIMILAR AMOUNTS HAVE BEEN FULLY CONSIDERED AS INCOM E IN THE HANDS OF MR. MUNIR KHAN ON SUBSTANTIVE BASIS. 6. THE LD. CIT-DR POINTED OUT THAT THE LD. CIT(A) H AS ERRED IN DELETING THE IMPUGNED PROTECTIVE ADDITIONS BECAUSE THE ADDITION MADE ON SUBSTANTIVE BASIS IN THE HANDS OF MR. MUNIR KHAN HAD NOT BECOME FINAL INASMUCH AS THE MUMBAI BENCH OF THE TRIBUNAL IN THE CASE OF SHRI MU NIR MOHAMAD KHAN VIDE ORDER NO. ITA NOS. 7928 TO 7931/MUM/2011 DATED 16-1 0-2014 FOR ASSESSMENT YEARS 2005-06 TO 2008-09 HAS SET ASIDE T HE MATTER TO THE FILE OF THE ASSESSING OFFICER IN ORDER TO VERIFY AND DECIDE THE ISSUE AFRESH. A COPY OF THE SAID ORDER HAS BEEN PLACED ON RECORD. 7. THE LD. REPRESENTATIVE APPEARING FOR THE RESPOND ENT ASSESSEE SUBMITTED THAT THE ASSESSEE HAS NO OBJECTION IF THE MATTER IS REMANDED BACK TO THE FILE OF ASSESSING OFFICER TO BE DECIDED AFRE SH AS A RESULT OF THE DECISION OF THE TRIBUNAL IN THE CASE OF SHRI MUNIR MOHAMAD K HAN (SUPRA). 8. HAVING REGARD TO THE ABOVE SUBMISSIONS MADE BY T HE RIVAL COUNSELS WE SET ASIDE THE ORDERS OF THE LD. CIT(A) AND RESTORE THE MATTER TO THE FILE OF THE ASSESSING OFFICER TO BE DECIDED AFRESH. THE ASSESS ING OFFICER SHALL ALLOW THE ASSESSE A REASONABLE OPPORTUNITY OF BEING HEARD AN D THEREAFTER PASS AN APPROPRIATE ORDER AS PER LAW FOR THE CAPTIONED THRE E ASSESSMENT YEARS. 9. IN THE RESULT THE APPEALS OF THE REVENUE ARE TR EATED AS ALLOWED FOR STATISTICAL PURPOSE. ITA 8002 & 8003/M/11 4 10. ABOVE DECISION WAS PRONOUNCED IN OPEN COURT IN THE PRESENCE OF BOTH THE PARTIES AT THE CONCLUSION OF THE HEARING ON 29- 04-2015. SD/- SD/- (AMIT SHUKLA) (G.S. PANNU) JUDICIAL MEMBER ACCOUNTANT MEMBER . / MUMBAI ; 0! DATED 29-04-2015 .8../ RK RKRK RK SR. PS ! '#$% &%# / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. 9 () / THE CIT(A) CONCERNED MUMBAI 4. 9 / CIT - CONCERNED MUMBAI 5. <=> 88?@ ?@ . / / DR ITAT MUMBAI B BENCH 6. >BC D / GUARD FILE. ' / BY ORDER < 8 //TRUE COPY// (/') * ( DY./ASSTT. REGISTRAR) . / / ITAT MUMBAI