I.T.A. No. 178/Mum/2017. Case: Subhash Jain Vs Income Tax Officer 22(2)(2). ITAT (Income Tax Appellate Tribunal)

Case NumberI.T.A. No. 178/Mum/2017
CounselFor Assessee: Kirit Sheth, Ld. AR and For Revenue: Naveen Gupta, Ld. DR
JudgesShri Mahavir Singh, JM and Shri Manoj Kumar Aggarwal, AM
IssueDirect Tax
Judgement DateMay 12, 2017
CourtITAT (Income Tax Appellate Tribunal)


Manoj Kumar Aggarwal (Accountant Member)

  1. The captioned appeal by assessee for Assessment Year [AY] 2010- 11 assails the order of Ld. Commissioner of Income tax (Appeal)-25, [CIT(A)], Mumbai dated 01/11/2016 by raising five grounds of appeal. Ground No. 5 is general in nature. Ground No. 1 & 3 has not been pressed by Ld. Counsel for the assessee during proceedings before us and hence the same are being dismissed as ''not pressed''. Now, we proceed to dispose-off Ground No. 2 & 4 which are related with confirmation of certain cash credit of Rs.71,05,742/- and direction by Ld. CIT(A) to initiate penalty proceedings.

  2. Briefly stated the assessee, being resident individual engaged in the business of mobiles, was assessed for impugned AY u/s 143(3) at Rs.1,76,01,400/- after certain adjustments / disallowances vide Assessing Officer [AO] order dated 20/03/2013 as against returned income of Rs.9,43,400/- filed by assessee on 01/07/2010. The issue under dispute is related with cash deposit of Rs.89.78 Lacs in one of the current account maintained by the assessee with Syndicate bank. The assessee attributed the same as receipt of loans which were advanced by the assessee in earlier years. To verify the same, the assessee was asked to produce capital account and Balance Sheet of the last two preceding years which he failed to do so which led the AO to believe that the assessee failed to prove identity, genuineness and creditworthiness of these cash credits and added the same to the income of the assessee.

  3. The assessee contested the same with partial success before Ld. CIT(A) vide impugned order dated 01/11/2016 where the assessee contended that cash of Rs.9,62,258/- was deposited out of opening cash balance of Rs10,29,556/- held by the assessee and further there was a cash withdrawal of Rs.42.25 Lacs which was re-deposited and a sum of Rs.28,80,742/- was received from surbhi jewelers prop. Bhanwaribai Jain against loan advanced by assessee in earlier years. The balance amount of Rs.9.10 Lacs was attributed to gift received by the assessee. The assessee, during remand proceedings, submitted Balance sheet and Loan confirmation from assessee''s mother Bhanwaribai Jain Prop. Surbhi Jewellers to establish repayment of loan. However, Ld. CIT(A) noted various discrepancies in assessee''s submissions and after analyzing cash transaction pattern of the assessee was not fully satisfied with the explanation offered by the assessee. Finally...

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