Subscription   Feedback   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Articles Highlights TMI Notes SMS News Newsletters Calendar Imp. Links Database Experts Contact us More....
Extracts
Home List
← Previous Next →

Shri Milan B. Dalal Versus DCIT (OSD-II) , Mumbai

2016 (1) TMI 1074 - ITAT MUMBAI

Addition on the basis of papers seized from the assessee’s premises - Held that:- In view of the documentary evidence, there is no justification for making addition in respect of entries reflected in the books of account of Tropical and given by cheque by Mr. Shashank Patel and his family members. Receipt of the amount by Tropical Investment and Securities Pvt. Ltd. through cheque from Shashank Patel and his family members, cannot be treated as income of the assessee. The fact that Tropical Inve .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X



In respect of balance amount alleged to be received from Shashank Patel in cash has not been enquired by the AO. In the interest of justice and fair-Play the balance addition of ₹ 3,14,16,332/- is restored back to the file of the AO for deciding afresh after making full enquiry from Shashank Patel and M/s Tropical Investment and Securities Pvt. Ltd.. We direct accordingly. - Decided in favour of assessee in part - ITA No.8053/Mum/2011 - Dated:- 5-11-2015 - SHRI R.C.SHARMA, AM AND .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

sed. Facts in brief are that the assessee was earlier holding membership card of Bombay Stock Exchange through its proprietor concern, M/s. S. Ramdas in 1998. The said membership cards was transferred to a company, namely, M/s. Tropical Securities & Investment Pvt. Ltd ("Tropical") in 1998 and Tropical thereafter took over and continued, the business of share broking and allied businesses. The assessee used to receive salary from Tropical. There were hardly any business remained 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

ous companies, including Tropical. He was occupying an office at Bombay Mutual Chamber, Fort, Mumbai, from where he was looking after affairs of various concerns. The premise was not owned by the assessee and was owned by M/s. Western Press P. Ltd., in which employees of various companies, including Tropical, were functioning. A search and seizure action u/s. 132 of the Act was carried out at Bombay Mutual Chamber, Fort, Mumbai wherein the assessee was occupying office space, on 30.05.2008. This .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

In so for as the document in dispute, that is, page no. 208 is concerned, only one question was asked about this page (Question 32). For ready reference, the said question and the answer thereto are reproduced herein below :- Q.32 I am showing you the page no. 208 of the document in file no. A - 1 seized from your office at Room No. 17, Bombay Mutual Chambers. Please explain the contents thereof Ans. This paper relates to the period prior to 6 - 7 years. This being very old matter, I have to go .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

/- to the income of the assessee, solely on the ground that name of the assessee was mentioned at one place in the loose paper. While doing so, he made an allegation that the assessee had failed to provide explanation/ evidence in his defense. The assessee procured confirmation from Shashank Patel and his associates, in which Mr. Shashank Patel confirmed that he did not have any transaction with the assessee in his individual capacity but had transactions with Tropical. The AO brushed aside asse .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

Many entries are blank. On a bare reading, it cannot be concluded that the assessee was in receipt of any income, much less that too, during the previous year. He further contended that the 4 cheque entries mentioned in the loose paper were reflected in the regular books of Tropical. Further, the assessee had clearly mentioned that the name of the assessee was not mentioned in the seized paper. As per Id. AR the assessee in the course of the assessment, had clearly established that Mr. Shashank .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ed by SEBI. These forms were accompanied by the documents establishing identity of these persons and also their addresses. Ld. AR also pointed out that the balances due to these parties were also reflected in the Balance Sheet of Tropical, it was also pointed out that the assessment of Tropical was done under the same charge. As per ld. AR, the AO and the CIT (A) have failed to appreciate that if the receipt of cheques amounting to ₹ 1.30 crores was reflected in the accounts of Tropical, h .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

se confirmation for which he could have faced prosecution. 6. In view of the above submission, Id. AR vehemently argued that the addition was made without giving any reason for ignoring the confirmations filed by Shashank Patel. 7. On the other hand, Id. OR relied on the orders of the authorities below and contended that the assessee could not explain the details of entries recorded in the seized loose papers No.208. 8. We have considered rival contentions carefully gone through the orders of th .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

of AO that Tropical was assessed by the same AO with PAN No.AAACT 1670 N. Again vide letter dated 24/10/2009 it was brought to the notice of the AO that 4 of the cheques entries are appearing in the regular books of accounts of Tropical. Further vide letter dated 4/11/2009, it was pointed out to the AO that the assessee had no transaction with Shashank Patel. In this letter the assessee had filed copy of accounts of Mr. Shashank Patel and his family members appearing in the books of accounts of .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

; 1,20,00,000/- is in respect of following amounts received by Tropical which is reflected in ledger Amount accounts of Tropical for the year ended 31/3/2012. This was filed before the AO vide letter dt.04. 11.09. 9. On the very same seized paper, in the left hand corner there is item "CHEQ REC 18.06.2001 sum of ₹ 10,00,000/- is appearing. This is in respect of cheque received from Shashank Patel which is appearing in the party ledger of Tropical for the year ended 31/3/2002. We also .....

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 assessment order that the above details were filed vide letter dated 04/11/2009. Refer page 5 of the assessment order which reads as under:- The assessee vide letter dated 4/11/2009 claimed that the transactions reflected in the said paper do not pertain to assessee's business. The assessee has no business transaction with Mr. Shashank Patel and his family members and that the said Shashank Pate and his family members have transactions with M/s. Tropical Securities and Investments Pvt Ltd. .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 

what is new what is new
  ↓     bird's eye view     ↓  


|| 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