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Mrs. Zarina Noorali Govani Versus ITO 19 (3) (3) , Mumbai

2015 (5) TMI 921 - ITAT MUMBAI

Unexplained money u/s.69 - Held that:- We do not find any justification in the action of the AO for rejecting the cash memo merely on the plea that these were not signed/authenticated by the recipient of the goods. In case of retail trade, there is no practice of getting the signature in sales bills. Furthermore, in case of cash sales there is no need to give full details of the buyer and the recipient of goods, insofar as assessee delivers the goods only after receipt of entire sale considerati .....

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credit in the bank account was on account of ₹ 119,900/- received from assessee’s son Nizarali Govani whose loan confirmation was also filed. Further a sum of ₹ 3.25,000/- was transferred from saving account No.10078 with Development Credit Bank. ₹ 3,00,000/- is received from client’s daughter Rozina Govani whose loan confirmation was also enclosed. However, to substantiate the claim of various deposits and withdrawals the assessee has not filed any cash-flow/fund-flow stateme .....

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. C. Sharma, AM,JJ. For the Petitioner : Shri Deepak Tralshawala For the Respondent : Shri Vijay Kumar Bora ORDER Per R. C. Sharma (A.M): These are the appeals filed by assessee against the order of CIT(A)-30, Mumbai dated 2-9-2011, for the assessment years 2005-06 & 2006-2007, in the matter of order passed under Section 143(3) of the I.T. Act. 2. In the assessment year 2005-06, the AO observed that assessee is engaged in the business of wholesale of ladies boutique items and garments and al .....

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anch, it is seen that during the relevant previous year, the assessee has deposited cash of ₹ 19,25,590/- and deposited ₹ 5,87,5000/- through cheques or by way of transfer. From the bank statement filed by the assessee, it is also seen that the payments are made either to Silverline Marketing or Silverline. Assessee was asked to furnish the name and addresses of Silverline Marketing or Silverline vide order-sheet notings dt.07/12/2007 and also asked to explain the nature of such paym .....

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r of Silverline Marketing on 20/12/2007 to appear on 24/12/2007. In response to the summons u/s.131, no one attended neither any submission were filed. To verify whether Shri Hussain Charania is filing return or not, the same is also checked with the AST of computer systems of the department. From the AST of computer system, it is seen that Shri Hussain Jamal Charania having PAN: AAAPC 4923 C has not filed return for A.Y.2005-06. The AO further observed that the assessee regarding the nature of .....

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t submitted any documentary evidence for claiming 5% commission. Regarding the balance sale of ₹ 19,06,130/-, assessee is stating that the same is sold on behalf of Silverline Marketing is also not acceptable. Silverline Marketing has not filed their return and the income has not been offered for taxation by Silverline Marketing. With regard to transfer of funds to M/s Silverline Marketing, the AO observed that the same also remained unexplained and therefore the claim with regard to payme .....

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ssessment order and submission of the appellant's AR.. The appellant has not disclosed her stated business of marketing of Hindustan Coco Cola Marketing on commission basis through Silverline Marketing in her return of income. It was only after the A.O., enquired about the deposits in her bank account that she revealed these transactions. No confirmation/documentary evidence of these transactions were filed. M/s. Silverline Marketing did not file its return of income and its proprietor did n .....

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gned. The appellant had submitted that all the sales were in cash therefore, "no address were written to invoices but she herself is stating that ₹ 26,000/- deposited in her bank account is from sundry debtors. The appellant has not been able to explain the deposits in her account and therefore, the AO has rightly added ₹ 25,13,090/- to her income. The appellant's request for assessing the income u/s.44AF of the Act, cannot be accepted since she had not disclosed the facts f .....

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counts. In his remand report the A.O. has accepted deposit of ₹ 2 lakhs out of partial encashment of FDR and stated that balance amount is unexplained credit. However, the appellant has only given narrations without giving corresponding documentary evidence/details. The appellant has claimed to have deposited ₹ 6,45,000/- in her bank account from cash-in-hand but no details are given regarding date of deposit and amount of deposit alongwith copy of cash book. Therefore, the deposits .....

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and the submissions made by the A.R. of the appellant. The cost of shop is shown at ₹ 7,60,623/- in the appellant's balance sheet and loan is shown by Nizar Govani of ₹ 4,00,000/-. Besides, the appellant has claimed interest of ₹ 56,503/- for F.Y.2003-04, ₹ 1,44,721/- in F.Y. 2004-05 and ₹ 1,36,679/- in F.Y. 2005-06, which is not shown to be related to the property which is sold. Even loan of Nizar Govani is shown at ₹ 3,00,0001-. No documentary evidence .....

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shows only furniture under the head Fixed Assets‟. Therefore, the entire deemed consideration cannot be taxed. In my view, the AO in his assessment order has correctly worked out the Long Term Capital Gains of ₹ 16,67,157/-The additions made by the AO are confirmed and these grounds of appeal are dismissed. 7. Against the above order of CIT(A), assessee is in further appeal before us. 8. We have considered rival contentions, carefully gone through the orders of the authorities below .....

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roprietor of Silverline Marketing but she did not appear. Accordingly, the AO rejected the claim of assessee for making payment to Silverline Marketing in absence of any proof and added ₹ 25,13,090/- (19,25,590 + 5,87,500/-) as unexplained money u/s.69 of the IT Act. 9. We found that before the CIT(A) assessee has furnished copy of invoices issued by Hindustan Coco Cola Manufacturing Company Ltd. to M/s Silverline and Mrs Zarina Noorali Govani to Yashin Sisters. However, the AO has rejecte .....

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In case of retail trade, there is no practice of getting the signature in sales bills. Furthermore, in case of cash sales there is no need to give full details of the buyer and the recipient of goods, insofar as assessee delivers the goods only after receipt of entire sale consideration. Since the deposit in bank account was much more than sales shown by assessee, onus is on the assessee to show the source of excess money deposited in bank account either in cash or through cheques. In the intere .....

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33,70,139 2 Shamrao Vithal Co-op Bank Ltd. 1,36,700 7,25,000 8,61,700 3 Development Credit Bank No.3087 53,900 1,78,900 2,32,890 Total 44,64,729 The deposits were stated to be from sale proceeds of shop, FORs, sundry debtors, cash on hand, receipts from Nizar Govani, Noorali Govani, Rozina , Silverline Marketing, dividend and deposits by way of transfer. However, the assessee did not file any documentary evidence except for sale and purchase of shop. The assessee filed loan confirmation of Niza .....

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herein the entire details of income comprising of capital gains and business income being income from distribution of Hindustan Coco Cola Manufacturing Company products received by our client through their agent M/s. Silverline Marketing. The assessing officer has wrongly stated that the details were not furnished as the above letter comprising of computation of income, balance sheet, profit & loss account alongwith bank statements, Xerox copies of sale and purchase documents of shop and inv .....

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e sale consideration of ₹ 13,00,000/- is received in respect of sale of shop in Dheeraj heritage. The capital gains in respect of the same is reflected at ₹ 277, 357/- in the computation of income. Fixed deposits with Development Credit Bank was alleged to be encashed amounting to ₹ 6,50,000/-. The confirmation of Development Credit Bank was alleged to be filed before AO. Fixed deposit with Bank Co-operative Society of ₹ 2,00,000/- was alleged to be encashed out of total .....

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