Income-tax Officer,, Dhule v. Shaikh Nuru Shaikh Mehboob Kasai,, Nandurbar

ITA 847/PUN/2017 | 2011-2012
Pronouncement Date: 21-11-2019 | Result: Dismissed

Appeal Details

RSA Number 84724514 RSA 2017
Assessee PAN AWEPS1528F
Bench Pune
Appeal Number ITA 847/PUN/2017
Duration Of Justice 2 year(s) 7 month(s) 14 day(s)
Appellant Income-tax Officer,, Dhule
Respondent Shaikh Nuru Shaikh Mehboob Kasai,, Nandurbar
Appeal Type Income Tax Appeal
Pronouncement Date 21-11-2019
Appeal Filed By Department
Order Result Dismissed
Bench Allotted A
Tribunal Order Date 21-11-2019
Date Of Final Hearing 07-10-2019
Next Hearing Date 07-10-2019
Last Hearing Date 07-10-2019
First Hearing Date 08-08-2019
Assessment Year 2011-2012
Appeal Filed On 07-04-2017
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH PUNE . BEFORE SHRI D. KARUNAKARA RAO AM AND SHRI VIKAS AWASTHY JM . / ITA NO . 847 /PUN/201 7 / ASSESSMENT YEAR : 20 1 1 - 12 THE INCOME TAX OFFICER WARD 4 DHULE ....... / APPELLANT / V/S. SHRI SHAIKH NARU SHAIKH MEHBOOB KASAI KURESHI MOHALLA BEAF MARKET ROAD NANDURBAR PAN : AWEPS1528F / RESPONDENT ASSESSEE BY : N O N E REVENUE BY : SHRI VISAKH R.K. / DATE OF HEARING : 21 - 11 - 2019 / DATE OF PRONOUNCEMENT : 21 - 11 - 2019 / ORDER PER VIKAS AWASTHY JM : TH IS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER OF COMMISSIONER OF INCOME TAX (APPEALS) - 2 NASHIK DATED 17 - 01 - 2017 FOR THE ASSESSMENT YEAR 201 1 - 12. 2. THE REVENUE HAS ASSAILED THE ORDER OF FIRST APPELLATE AUTHORITY ON FOLLOWING GROUNDS : 2 ITA NO . 847/PUN/2017 A.Y. 2011 - 12 1. WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW THE CIT(A) WAS NOT JUSTIFIED IN DELETING THE ADDITION OF RS.2 19 25 831/ - ON ACCOUNT OF UNDISCLOSED INCOME. 1.2 WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW THE CIT(A) WAS NOT JUSTIFIED IN DELETING THE ADDITION MADE BY THE AO BY APPLYING SECTION 44AD WHEN THE ASSESSEE RECEIPTS ARE RS.2 34 24 272/ - AND THE ASSESSEE HAS NOT MAINTAINED BOOKS OF ACCOUNT AS STATED BY THE AO IN REMAND REPORT. 2. THE ORDER OF THE CIT(A) MAY BE VACATED AND THAT OF THE ASSESSING OFFICER MAY BE RESTORED. 3. THE APPELLANT CRAVE LEAVE TO ADD AMEND ALTER OR DELETE ANY GROUND OF APPEAL. 3. THE NOTICE OF APPEAL WAS SENT TO THE ASSESSEE THROUGH RPAD . THE NOTICE WAS D ULY SERVED AS IS EVIDENT FROM THE ACKNOWLEDGMENT CARD AVAILABLE ON RECORD. DESPITE SERVICE OF NOTICE NONE APPEARED TO REPRESENT THE ASSESSEE. IT SEEMS THAT THE ASSESSEE IS NOT INTERESTED IN PURSUING THE MATTER BEFORE THE TRIBUNAL. UNDER SUCH CIRCUMSTAN CES WE PROCEED TO DECIDE THE APPEAL OF REVENUE WITH THE ASSISTANCE OF LD. DR AND THE MATERIAL AVAILABLE ON RECORD. 4. SHRI VISAKH R.K. REPRESENTING THE DEPARTMENT SUBMITTED THAT THE ASSESSEE IS ENGAGED IN TRADING OF BEEF AND IS HAVING INCOME FROM SALE OF ANIMALS. DURING SCRUTINY ASSESSMENT PROCEEDINGS THE ASSESSEE DID NOT RESPOND TO THE NOTICE S ISSUED AND HENCE THE ASSESSING OFFICER WAS CONSTRAINED TO FRAME THE ASSESSMENT U/S. 144 O F THE INCOME TAX ACT 1961 (HEREINAFTER REFERRED TO AS THE ACT). T HE LD. AR SUBMITTED THAT THE ASSESSEE HAD RECEIVED PAYMENTS THROUGH RTGS AND CHEQUES IN TWO BANK ACCOUNTS I.E. ICICI BANK LTD. NANDURBAR AND UNION BANK OF INDIA NANDURBAR. THE TOTAL DEPOSITS IN THE AFOREMENTIONED BANK ACCOUNTS OF THE ASSESSEE DURING THE PERIOD RELEVANT TO THE ASSESSMENT YEAR UNDER APPEAL AGGREGAT ED TO RS.2 34 24 272/ - . SINCE THE ASSESSEE DID NOT EXPLAIN THE 3 ITA NO . 847/PUN/2017 A.Y. 2011 - 12 SOURCE OF DEPOSITS THE ASSESSING OFFICER MADE ADDITION OF ENTIRE AMOUNT. IN FIRST APPELLATE PROCEEDINGS THE ASSESSEE EXPLAINED THAT THE DEPOSITS IN BOTH BANK ACCOUNTS ARE THE BUSINESS RECEIPTS FROM SALE OF BEEF AND COMMISSION ON SALE OF ANIMALS THE CIT(A) RESTRICTED THE ADDITION TO 8% OF THE TOTAL BANK DEPOSITS. 5. W E HAVE HEARD THE SUBMISSIONS MADE BY LD. DR AND HAVE PERUSED THE ORDERS OF AUTHORITIES BELOW. IT IS AN UNDISPUTED FACT THAT THE ASSESSEE HAS RECEIVED HUGE DEPOSITS AGGREGATING TO RS.2 34 24 272/ - IN HIS SAVING BANK ACCOUNT AND CURRENT BANK ACCOUNT MAINTAINED WITH ICICI BANK LTD. NANDURBAR AND UNION BANK OF INDIA NANDURBAR. SINCE THE ASSESSEE DID NOT PARTICIPATE IN ASSESSMENT PROCEEDINGS NO EXPLANATION WHATSOEVER WAS FURNISHED BY THE ASSESSEE BEFORE THE ASSESSING OFFICER REGARDING DEPOSITS IN THE BANK ACCOUNTS. THE ASSESSING OFFICER MADE ADDITION OF THE ENTIRE SUCH DEPOSITS. THE ASSESSEE IN FIRST APPELLATE PROCEEDINGS BEFORE THE CIT(A) EXPLAIN ED THAT DEPOSITS IN THE BANK ARE THE BUSINESS RECEIPTS IN THE FORM OF COMMISSION FROM SALE OF ANIMALS AND SALE OF BEEF. THE CIT(A) IN LINE WITH THE PROVISIONS OF SECTION 44AD RESTRICTED THE ADDITION TO 8% OF SUCH TOTAL RECEIPTS. WE DO NOT FIND ANY INFIRMITY IN THE IMPUGNED ORDER. THERE IS NO MATERIAL AVAILABLE ON RECORD TO INDICATE THAT THE DEPOSITS IN THE BANK OF ASSESSEE ARE FROM ANY OTHER SOURCE OF INCOME APART FROM B USINESS INCOME OF THE ASSESSEE. IN THE ABSENCE OF ANY CONTRARY MATERIAL THE DEPOSITS IN THE BANK ARE HELD TO BE BUSINESS RECEIPTS OF THE ASSESSEE. WE CONCUR WITH THE FINDINGS OF CIT(A). THE ENTIRE BUSINESS RECEIPTS CANNOT BE HELD AS THE INCOME OF ASSESS EE. THE CIT(A) WAS JUSTIFIED IN RESTRICTING THE ADDITION OF 8% OF SUCH DEPOSITS. THE APPEAL OF REVENUE IS WITHOUT ANY 4 ITA NO . 847/PUN/2017 A.Y. 2011 - 12 MERIT. THE IMPUGNED ORDER IS UPHELD AND THE APPEAL OF REVENUE IS DISMISSED. 6. IN THE RESULT THE APPEAL OF REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON THURSDAY THE 21 ST DAY OF NOVEMBER 2019. SD/ - SD/ - ( . /D. KARUNAKARA RAO ) ( / VIKAS AWASTHY) / ACCOUNTANT MEMBER / JUDICIAL MEMBER / PUNE; / DATED : 21 ST NOVEMBER 2019 RK / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT. 2. / THE RESPONDENT. 3. ( ) / THE CIT(A) - 2 NASHIK 4. THE PR. COMMISSIONER OF INCOME TAX - 1 NASHIK 5. / DR ITAT A BENCH PUNE. 6. / GUARD FILE. // // TRUE COPY// / BY ORDER / PRIVATE SECRETARY / ITAT PUNE