Feedback   New User   Subscription   Demo   Login      
Tax Management India. Com TMI - Tax Management India. Com
Acts / Rules Notifications Circulars Tariff/ ITC HSN Forms Case Laws Manuals Short Notes Articles SMS News Highlights
        Home        
Extracts
Home List
← Previous Next →

Liyakat Ibrahim Shaikh Versus ITO-24 (3) (3) , Mumbai

2018 (2) TMI 437 - ITAT MUMBAI

Unexplained cash credits - Held that:- AO has made the addition under section 68 of the IT Act. However, learned CIT-A has modified the order and upheld the addition under section 69A. In this scenario it was incumbent upon the CIT-A who give proper notice and opportunity to the assessee regarding the intention to modify the section under which the addition was proposed. The interest of justice will be served if the matter is remitted to the file of the assessing officer. The assessing officer i .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

year 2011- 12. 2. The grounds of appeal read as under: 1. In the facts and circumstances of the case and in law the learned assessing officer has erred in levying a tax of ₹ 10,52,010/- on assessed income at ₹ 30,97,265/- by adding cash deposits of ₹ 23,95,265/- against declared income at ₹ 7,01,910/- by the Assessee. 2. In the facts and circumstances of the case and in law the learned CIT(A) has erred in confirming the AO's action assessing the income at ₹ 30,9 .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

d Total Receipts of ₹ 24,55,480/- and the Net Profit of ₹ 8,01,910/-. The Assessing Officer noted from the AIR information that the assessee has deposited large sums of cash in his savings bank account with M/s Mogaveera Co-op Bank Ltd. The Assessing Officer repeatedly directed the assessee to explain the source of this cash. The Assessing Officer also noted that the total credits in the bank account of the assessee were to the tune of ₹ 48,19,995/- (cash + cheque) which is  .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

,265/- was also treated to be unexplained. In all the Assessing Officer made an addition of ₹ 23,95,265/- on this account. 4. Upon the assessee s appeal, the ld. Commissioner of Income Tax (Appeals) observed that further during the appellate proceedings the assessee was directed to produce his books of account and cash book but the assessee did not have the same ready with him. The ld. Commissioner of Income Tax (Appeals) noted that the assessee had not maintained any Ledger of the parties .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

7; 23,95,265/- as unexplained cash credits by the Assessing Officer. The ld. Commissioner of Income Tax (Appeals) adjudicated as under: 4.4 In the appellate proceedings the assessee claimed that in his bank statement a sum of ₹ 5,00,000/- was deposited in cash on 24/05/2010 and the same amount was drawn by the assessee on 25/05/2010. The assessee claimed that this amount should be treated as a contra figure and should not be considered for the addition. This contention of the assessee is u .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ook vide order sheet dated 28/09/2016 and on 31/10/2016, the assessee has not produced the same and hence this claim of the assessee cannot be accepted as such. 4.5 The assessee has also claimed that deposits totaling ₹ 12,65,041/- had been received by him as unsecured loans from his wife Ms Sharada Shaikh (Rs.6,31,500/-), from one Shri Hamid Shaikh (Rs.1,00,000/-) and from one Shri Farukh Shaikh (Rs.5,33,500/-). These amounts are not received in one go but there are several entries clubbe .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

assessee himself. The assessee claimed that this account was jointly held with his wife and the transactions belong to his wife only. The assessee also filed a simple confirmation from his wife mentioning that she had given a sum of ₹ 7,25,053/- to the assessee during the FY 2010-2011. This figure is different from the earlier figure given by the assessee and no date-wise details have been filed. The assessee was directed in writing to prove the creditworthiness of his loan creditors but 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

,00,000/- to the assessee during this year. In the case of Shri Farukh Shaikh it was noted that firstly the date-wise details of loan amounts taken do not tally with his bank statement and secondly there were substantial cash deposits in the bank account of Shri Farukh Sheikh before transfer of the sums to the assessee. There was no explanation for the same. As a result the claim of assessee that the unsecured loans are explained or that the explanation is satisfactory is not borne out Moreso be .....

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 his case. The details of the dishonoured cheques were given as under: Date Amount (In Rs) 08/06/2010 50,000 18/08/2010 10,000 23/08/2010 10,000 12/10/2010 10,000 23/11/2010 5800 30/08/2010 1625 31/12/2010 5000 Total 92,425 The contention of the assessee has been verified from the bank statement and the addition of ₹ 99,425/- is deleted. 4.7 The assessee has also claimed that the cash deposits of ₹ 2,90,000/- and ₹ 2,20,000/- in the bank account on 25/05/2010 and 28/05/2010 r .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ent cash deposit of ₹ 2,20,000/- on 28/05/2010 is also covered for ₹ 2,10,000/- by the remaining amount of ₹ 5,00,000/-. Therefore fee assessee is allowed the relief of ₹ 5,00,000/-. 4.8 As the assessee has not made any other submission which can be verified from the limited documents on file, the other additions are confirmed. As a result of the above, the addition of ₹ 23,95,265/- made by the AO is reduced by a sum of ₹ 5,92,425/- and the remaining addition .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 

Discussion Forum
what is new what is new
 


Share:            

|| Home || About us || Feedback || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members ||

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

Go to Mobile Version