New User   Login      
Tax Management India .com TMI - Tax Management India. Com
Extracts
Home List
← Previous Next →

2015 (5) TMI 921 - ITAT MUMBAI

2015 (5) TMI 921 - ITAT MUMBAI - TMI - 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 a .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

lained cash credit u/s 68 - Held that:- 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 no .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

15 - Shri Joginder Singh, JM And Shri R. 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 la .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

e in Development Credit Bank, Bandra branch, 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 a .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ued to Shri Hussain Charcnia, proprietor 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 tha .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ge is not acceptable as assessee has not 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 t .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

:- 8. I have carefully considered the assessment 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 re .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ress were given and none of them was signed. 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 .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

s 68 as unexplained deposits in bank accounts. 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 .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

fully gone through the Assessment Order 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 ͅ .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ant proceedings and forwarded to the AO 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 thro .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

The AO issued summons u/s.131 to the proprietor 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 Yash .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ticated 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 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 .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

it bank A/c No.10078 6,45,000 27,25,139 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 a .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

had furnished letter dtd. 19. 11.2008 wherein 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 .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

FDR . It was further submitted that the 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/- w .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 



|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version