Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: Central Excise rule to resale the machines to a new company :: TAX RATES - GOODS TAXABLE @ 4% :: ACCOUNTING STANDARD :: empanelment :: ARTICLES ON INPUT TAX CREDIT IN VAT :: list of goods taxed at 4% :: VAT Audit :: TDS :: VAT RATES :: articles on VAT and GST in India :: form 3cd :: due date for vat payment :: cpt :: ACCOUNTING STANDARDS
 
 
From the Courts »
 Micro Spacematrix Solution P Ltd vs. ITO (ITAT Delhi)
 CIT vs. Greenfield Hotels & Estates Pvt. Ltd (Bombay High Court)
 IndiaBulls Financial Services Ltd vs. DCIT (Delhi High Court)
 Maharao Bhim Singh of Kota vs. CIT (Supreme Court)
 Ravneet Takhar Vs. Commissioner Of Income Tax Ix And Ors.
 Jaiprakash Associates Ltd. Vs. Commissioner Of Income Tax
 Formula One World Championship Limited Vs. Commissioner Of Income Tax, International Taxation-3 And Anr.
 Commissioner Of Income Tax International Taxation-3 Delhi Vs. Formula One World Championship Ltd. And Anr.
 Reliance Communications Ltd vs. DDIT (ITAT Mumbai)
  Sushila Devi vs. CIT (Delhi High Court)
 Ashok Prapann Sharma vs. CIT (Supreme Court)a

A C I T - 25(3) 308, C-11, Bandra Kurla Complex, Bandra (E) Mumbai 400051 Vs. Shri Mahendra Narayan Raju B-107, Sai Chhaya, Junction Ashok Nagar, Akurli Road Kandivali (E), Mumbai 400101
March, 03rd 2015
               IN THE INCOME TAX APPELLATE TRIBUNAL
                          "B" Bench, Mumbai

                Before Shri D. Manmohan, Vice President
              and Shri Chandra Poojari, Accountant Member

                         ITA No. 5073/Mum/2012
                         (Assessment Year: 2009-10)

      A C I T - 25(3)               Shri Mahendra Narayan Raju
      308, C-11, Bandra Kurla       B-107, Sai Chhaya, Junction
                                Vs.
      Complex, Bandra (E)           Ashok Nagar, Akurli Road
      Mumbai 400051                 Kandivali (E), Mumbai 400101
                          PAN - AAHPR6420Q
               Appellant                     Respondent

                   Appellant by:     Shri Vivek Vatra
                   Respondent by:    Shri Ajay R. Singh

                   Date of Hearing:       02.03.2015
                   Date of Pronouncement: 02.03.2015

                                 ORDER

Per D. Manmohan, V.P.

     This appeal by the Revenue is directed against the order passed by
CIT(A)-35, Mumbai and it pertains to A.Y. 2009-10.




2.    The only ground urged by Revenue reads as under: -

     "On the facts and in the circumstances of the case and in law, the ld.
     CIT(A) erred in giving relief on the issue of addition u/s. 68 by
     restricting the addition to Rs.14,01,847/- out of Rs.30,19,883/- to the
     assessee without appreciating the fact that it is highly unbelievable
     that a prudent man will withdraw cash from one account to deposit in
     another account and when most of the withdrawals are very small to
     the extent of Rs.500 to few thousand."

3.    Facts necessary for disposal of the appeal are stated in brief. Assessee
is an individual earning income from three proprietary concerns. For the year
under consideration he declared total income of `45,45,189/-. Though the
return was originally processed under section 143(1) of the Act it was
subsequently taken up for scrutiny. During the course of scrutiny
proceedings the AO noticed that the assessee deposited `30,19,883/- in his
saving bank account of ICICI bank at Kandivali. The AO called for the details
with regard to availability of cash to make the deposit. In response it was
                                        2                 ITA No. 5073/Mum/2012
                                                      Shri Mahendra Narayan Raju

submitted that cash has been deposited from the cash withdrawn from
different bank accounts and cash in hand. The AO disbelieved the version of
the assessee on the ground that it was highly unbelievable that a prudent
man will withdraw cash from one account to deposit in another account.
Accordingly he made an addition of `30,19,883/- under section 68 of the Act.

4.    Aggrieved, assessee contended before the CIT(A) that there were several
cash withdrawals from other bank accounts which were deposited into ICICI
Bank and therefore there is sufficient source to make the deposit. In the
alternative it was contended that even on making day to day cash balance
analysis there is negative cash balance to the extent of `14,01,847/- on
31.12.2008 and the AO could have, at best, taken the peak credit into
consideration even if the main plea is not acceptable. Detailed statement of day
to day balance is furnished before the learned CIT(A). Having regard to the
circumstances of the case the learned CIT(A) restricted the addition to
`14,01,847/- by observing as under: -

     "Under the given factual matrix of the case, the appellant's submission
     can't be accepted fully since there is negative cash balance on many
     dates, the highest being on 31.12.2008 amounting to Rs.14,01,847/-. The
     addition made by the A.O. is restricted to the amount of Rs.14,01,847/-
     and the appellant gets relief of Rs.16,18,036/- since the entire cash
     deposit can't be added to his income. Therefore, going by the peak credit
     method, I direct the A.O. to delete the amount of `16,18,036/-."

5.    Aggrieved, Revenue is in appeal before us. At the time of hearing the
learned Sr. D.R. was mainly trying to read the ground of appeal, probably
under the impression that the addition which is under dispute is
`30,19,883/-. When it was pointed out to him that the entire addition is not
in dispute he was unable to comprehend as to what is the addition which is
under dispute. At the outset it may be noticed that in the ground of appeal
addition of `14,01,84/- is challenged. The learned Sr. D.R. appears to have
not even looked into the typographical mistake and he is blissfully ignorant
of the fact that the addition, which was confirmed, was only the peak credit.
No material, whatsoever, was placed before us and no argument was
forthcoming to show that the view taken by the CIT(A) under the given
factual matrix is wrong and contrary to law.
                                          3                  ITA No. 5073/Mum/2012
                                                         Shri Mahendra Narayan Raju




6.        We have considered the rival submissions and carefully perused the
record. Having regard to the circumstances of the case we are of the view
that the order passed by the learned CIT(A) does not call for any
interference.

7.        In the result, the appeal filed by the Revenue is dismissed.

Order pronounced in the open court on 2nd March, 2015.

                   Sd/-                                      Sd/-
             (Chandra Poojari)                         (D. Manmohan)
            Accountant Member                           Vice President

Mumbai, Dated: 2nd March, 2015

Copy to:

     1.   The   Appellant
     2.   The   Respondent
     3.   The   CIT(A) ­ 35, Mumbai
     4.   The   CIT­ 25, Mumbai City
     5.   The   DR, "B" Bench, ITAT, Mumbai

                                                         By Order

//True Copy//
                                                      Assistant Registrar
                                              ITAT, Mumbai Benches, Mumbai
n.p.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
SEO Company Search Engine Optimization Company US SEO Local SEO Company Website SEO Company Alabama SEO Company Alaska SEO Company Arizona SEO Company Arkansas SEO Company California SEO Company Colorado SEO Company Connecticut SEO Company Delawa

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions