MR. JATIN HARISH SOTTA ,MUMBAI vs. INCOME TAX OFFICER WARD 26(1)(7), MUMBAI
Income Tax Appellate Tribunal, MUMBAI BENCH “F” MUMBAI
Before: SHRI OM PRAKASH KANT () & SHRI RAJ KUMAR CHAUHAN () Assessment Year: 2012-13
PER OM PRAKASH KANT, AM
This appeal has been preferred by the assessee against the order dated 31.01.2025 passed by the Ld. Commissioner of Income- tax (Appeals) – National Faceless Appeal Centre, Delhi [in short ‘the Ld. CIT(A)’] for assessment year 2012-13, raising following grounds:
1. The Learned Commissioner of Income Tax (Appeals) (NFAC) on the facts and in the circumstances of the case and in law erred in confirming the action of the assessing officer in passing the order u/s 144 r.w.s.147 of the Income Tax Act assessing total income at Rs.2,86,80,200
The Le on the f erred i under 3. The Le on the f erred Assess apprec course ignorin Rs.2,8 and no 4. The Le on the law, fa arose i for A.Y A.Y. 2 assess appella 2. Before us, the additional ground, wh In the facts Commissione action of the assessment u un-confronted tangible mate income of t Reopening in law as held Kelvinator of I 3. Briefly stated, f his return of income (hereinafter “the Ac Assessing Officer rec Director of Income-t ITA earned Commissioner of Income Tax (App facts and in the circumstances of the cas n confirming the additions made of Rs. 2, section 69A of the Act by the Assessing O earned Commissioner of Income Tax (App facts and in the circumstances of the cas in not appreciating the facts narra sing Officer in the Assessment order a ciating the facts and submissions made of appellate proceedings in a proper ng the facts that cash deposits 6.80,200 in the bank account of Jitend ot in the bank account of the appellant earned Commissioner of Income Tax (App facts and in the circumstances of the ailed to appreciate the fact that an ide in the appellant's own case on the same Y.2013-14 and while completing the ass 2013-14, after considering the same sing officer has not made such addit ant's own case. Ld. counsel for the assesse hich is reproduced as under: and circumstances of the case and in r of Income Tax (Appeals) has erred in s e Ld. Assessing Officer who erred in r under section 147 merely based on un-c d statements of third party without the erial to form any belief about escapeme the Appellant for the relevant Asses absence of any 'tangible material' is bad by Hon'ble Supreme Court in the cas India Ltd. [2010] 320 ITR 561 (SC) facts of the case are that asses under section 139 of the Incom ct”) for the assessment year ceived an information from the tax (Investigation) that a propr Mr. Jatin Harish Sotta 2 A No. 1916/MUM/2025 peals) (NFAC) se and in law ,86,80,200/- Officer. peals) (NFAC) se and in law ated by the and also not e during the perspective, made of dra K Palan peals) (NFAC) case and in entical issue e set of facts sessment for e facts, the tions in the e also filed an law, the Ld. sustaining the re-opening the corroborated & ere being any ent of taxable ssment Year. in the eyes of se of CIT vs. ssee did not file me-tax Act, 1961 2012–13. The office of the Dy. rietary concern,
M/s Neelay Packers
K. Palan, was enga relocating, moving of of said firm reflected
In his statement r
11.02.2019, Shri Ji nearly 92% of the sa
Shri Jatin Harish So transferred through
International and M/s
3.1 Based on the s recorded reasons to escaped assessment,
148 on 31.03.2019. repeated notices is 17.07.2019, 23.10.2
absence of any expla completed ex parte u
Act, making addition
3.2 The assessee ca several statutory opp to rebut the finding therefore, confirmed assessee had failed t
ITA and Movers, in the name of on aged in the business of logist f housing effects etc and curren d cash deposits aggregating to recorded under section 131
itendra K. Palan categorically aid cash deposits were made b otta, and that such amounts w
RTGS to concerns, namely s D.D.M. Impex, owned by the as aid tangible information, the A o believe that income chargea
, and accordingly issued notice
No return was filed in resp sued under section 142(1) o
019 and 12.11.2019 were com anation for the cash deposits, a under section 144 read with sec of ₹2,86,80,200/–.
arried the matter in appeal. H portunities, no material evidenc gs of the Assessing Officer. T d the addition, holding inte o discharge the primary onus o
Mr. Jatin Harish Sotta
3
A No. 1916/MUM/2025
ne Shri Jitendra tic services like nt bank account
₹2,86,80,220/–.
of the Act on y admitted that by the assessee, ere immediately
M/s Mahendra ssessee.
Assessing Officer able to tax had e under section ponse, nor were on 24.06.2019, mplied with. In assessment was ction 147 of the However, despite ce was produced
The Ld. CIT(A), r-alia that the of explaining the nature and source o own concerns. The r under :
“5.1. The ord
05.12.2019 a facts and wr carefully cons by the appel addition of Rs
5.2 During t assessee wa hearing/letter
13.12.2024 to along with su some details grounds of a opportunities appellant's r presumption t is not interest no objection a the impugned specifically m appellant fail of the grounds
5.3 It is the DORMENTIBU help only thos careless of hi be watchful watchful and benefits of the of their rights the Hon'ble C
Tukojirao Hol
480 MP) the whose instan hearing, or fa so as to enab answer the re
Court in the ITA of deposits which had, in fact, relevant finding of ld CIT(A) is der of the Ld. AO passed u/s 144 r.w.s as well as the grounds of appeal and ritten submission filed by the appellan sidered. In essence, all the substantial gr llant relate to the action of the Ld. A s.2,86,80,200/- on account of cash depos the course of appellate proceedings, th as given several opportunities vide r dated 17.10.2023, 27.10.2023, 06.1
o represent the case by uploading written upporting document(s) if any. Appellant ha three times, which is not related to stren appeal. However, the appellant did n to counter the findings of the Ld. AO reluctancy to comply to the notices le that he has either nothing to explain in th ted to continue the appellate proceeding a at present regarding addition made by th d assessment order. The reason for the a mentioned in detail in the assessment o led to upload any evidence or submissio s of appeal.
e well-settled dictum of law "VIGILEN
US, JURA SUBVENIUNT" which means se who are vigilant. Law will not assist th is/her right. In order to claim once right s of his/her rights. Only those person d careful of using his/her rights, are eli e law. Law confers rights on persons who
. In this connection, the various judicious
Hon'ble M.P. High Court held that, "If t nce the reference is made, fails to ap ails in taking steps for preparation of the ble hearing of the reference, the court is eference." Similarly, Hon'ble Punjab & H case of New Dewan Oil Mills Vs. CIT
Mr. Jatin Harish Sotta
4
A No. 1916/MUM/2025
travelled to his s reproduced as s. 147 dated statement of nt has been rounds taken
AO regarding sit.
he appellant e notice of 11.2023 and n submission as submitted ngthening the not avail the O and hence eads to the his regard or and thus has he Ld. AO in addition was order but the on in support
NTIBUS, NO the law will hose who are she/he must ns, who are igible for the o are vigilant s decisions of Estate of Late
997) (223 ITA the party, at ppear at the paper books not bound to Haryana High
T reported in (2008) 296ITR since the ass from the asse
ITR 461) (Pag
"appeal does but effectively the case of 02.09.2011 in should not be of the amount draw an adve premium to th non-cooperati not want to a non-genuinen of Whirlpool
19.12.2011) h inferring that 5.4 In this r
Mumbai in th
Excise Appea the Hon'ble C
Authority, wh inherently pos
5.5 On merits taken by the account of ca assessment o for AY 2012-1
Rs.2,86,80,20
the FY 2011- issuing notice the appellant
During the cou that the a Rs.2,86,80,20
not file return the appellant on several o absence of pr deposit amou the entire amo
6. During the to explain the ITA
R495 (P&H) had returned the reference u essee remained absent and there was n essee. In the case of CIT vs B. N. Bhatta ges 477, 478), the Hon'ble Supreme Cou not mean, the mere filing of the memo o y pursuing the same". The Hon'ble Delhi H f
CIT vs Gold Leaf Capital Corporat n ITA No.798 of 2009 held that a neglige e given many opportunities just because t involved is high. The necessary course o erse inference, otherwise, it would amoun he appellant for his negligence. When the ive, it can safely be concluded that the a adduce evidence as it would expose the ness of his claim. The Hon'ble ITAT, Delh
India Ltd vs DCIT (ITA No.2006/Del/
has dismissed the appeal for non-attend the appellant is not effectively pursuing t regard, the decision of the Hon'ble Hi he case of M/S Chemipol vs Union of In al No.62 of 2009 may further be referred
Court clearly held that every court, judi hich has a duty to decide a case between ssesses the power to dismiss the case in s also, the appellant has no case. The m appellant relates to addition of Rs.2,86, ash depositof the I.T. Act, 1961. It is se order that the appellant had not filed retu
13 though he had made cash deposits to 00/- in his current Bank account mainta
-12. In view of the same the case was e u/s 148 of the Act and in response to th t had not filed return of income for A urse of assessment proceedings, the Ld. A appellant had deposited cash am
00/- in his bank account during FY 201
n of income for the subject assessment y did not comply with the notice issued by occasions during assessment proceedi roper explanation regarding nature & so unting to Rs.2,86,80,200/-, the Ld. AO ount as cash deposit.
e course of appellate proceeding, the app e grounds taken against the issues. Th
Mr. Jatin Harish Sotta
5
A No. 1916/MUM/2025
unanswered, no assistance charya. (118
urt held that of the appeal
High Court in tion Ltd on ent appellant the quantum of action is to nt to giving a e appellant is appellant did e falsity and hi in the case
2011 dated ding hearing the appeal.
igh Court of ndia, Central d to wherein icial Body or n two parties, default.
main ground
,80,200/- on een from the urn of income o the tune of ained during reopened by he said notice
Y 2012- 13. AO observed mounting to 1-12 but did year. Further, y the Ld. AO ings and in ource of cash added back pellant failed he reason for addition was the appellant either by uplo in detail and the assessme the opportuni source of ca assessment w
147 of the I.T the appellan assessment
17.07.2019, 2
notice dated notices. Duri appellant did cash deposit him.
6.1 In view of Ld. AO and substantial gr
4. Before us, the L
Book containing page
K. Palan recorded un
5. On the contrar filed a copy of the ass for the assessment ye
6. As far as add concerned, same bein to root of matter an admitted for adjudica
7. We have heard r additional ground ch
ITA clearly mentioned in the assessment ord made no effort to counter the findings o oading relevant document(s) or explainin chose to remain silent about the issue. It ent order that the appellant failed to resp ities given by the Ld. AO to explain the ash deposit during FY 2011-12 and was completed as best judgement as u/
T. Act, 1961. It is seen from the impugne nt was provided several opportuni proceedings by issuing notice u/s 1
23.10.2019 and 12.11.2019 and a final
20.11.2019, however, he never complied ing the course of appellate proceeding not come forward to explain the nature a in spite of several opportunities being f this, I find no reason to interfere into the the same is upheld accordingly. There rounds taken by the appellant are dismi
Ld. counsel for the assessee ha es 1 to 58, containing statement nder section 131 of the Act.
ry, the Ld. Departmental Repr sessment order in the case of Ji ear 2012-13. ditional ground raised by th ng in the nature of purely legal nd not requiring investigation ation.
rival submission of the parties i hallenged. We find that assess
Mr. Jatin Harish Sotta
6
A No. 1916/MUM/2025
der. However, of the Ld. AO ng the matter is seen from pond against e nature and accordingly
/s 144 r.w.s.
ed order that ities during
42(1) dated show cause d with those gs also, the and source of provided to e order of the efore, all the issed.”
as filed a Paper t of Sh. Jitendra resentative (DR) itendra K. Palan he assessee is l ground , going of fresh facts, in respect to the ee has not filed any copy of the reaso the assessee only ref reproduced by the A extract is reproduced
“Information
Income Tax
DDIT(Inv)/Un
15.03.2019 r
22.03.2019
proprictorship is engaged in of house effe the bank cur same with 2,86,80,200/
cash deposit
Mahendra Int
13. Since the deposits rema
Accordingly, after taking n
Notice u/s 14
to the assess
7.1 We find that t while recording state
K. Palan observed de in current bank acco of Income-tax (Invest
Palan on 11.02.2019
bank account was o
Sotta. He further s account to provide a ITA ons recorded before us and the ferred to the extract of the reas
Assessing Officer in the assessm d as under:
has been received from office of Depu
(Investigation), Unit-5(1), Mumbai vid it-5(1)/Sharing of Info/Jitendra/201
received in this office through designa regarding a above said assessee i p concern M/s Neelay Packers and Mover n the business of logistic service like reloc cts. The assessec, Jatin Harishn Sotta, rrent account of Jitendra K. Palan and 92% cash deposit which is to ihe
- during F.Y. 2011-12. Further, the credi were immediately transferred through ternational and M/s D.D.M Implex during e assessee is a non-filer, the source o ain unexplained.
the case was reopened u/s 147 of the necessary approval u/s 151(1) of the I
48 of the IT. Act 1961 dated 31.03.201
see.”
the Dy. Director of Income-tax ment u/s 131 of the Act in the eposits of cash amounting to R ount of his propriety concern. T tigation) recorded statement of S wherein sh Shri Jitendra K. Pa operated at the instance of Sh stated that he allowed to ope accommodation entries to othe
Mr. Jatin Harish Sotta
7
A No. 1916/MUM/2025
Ld. counsel for ons recorded as ment order. Said uty Director of de letter No.
18-19
dated ted e-mail on is running a rs in which he cating, moving had operated d credited the tune of Rs.
it by means of RTGS to M/s the F.Y 2012- of these cash e IT Act 1961
I.T. Act 1961. 9 was issued x (Investigation) case of Jitendra
Rs.2,86,80,200/-
The Dy. Director
Shri Jitendra K.
alan stated that hri Jatin Harish erate the bank r person at the instance of Shri Jatin available on Paper B
Shri Jitendra K. Pala his current account
Jitendra K. Palan ad deposit of cash bel
Mahendra Internatio admitted that cash d
Mr. Jatin Harish Sot
Jidentra K. Palan enc
“Q.1 Please i identity card.
you and al consequences
Ans I am Jite
45 years, cur
Swapna Noga
400080. I con
Q.2 I am now
Code, 1860, t contempt's of of your under are reproduce
A. "181. Fals person autho being legally any subject t as aforesaid, punished with may extend to ITA n Harish Sotta. In response to Book page 16 and answer to q an admitted that Shri Jatin Ha t for deposits. In question No dmitted that said current accou longing to Jatin Harish Sotta onal. Further in question N deposits in current account we tta. For ready reference, said st closed in paper book is reproduc identify yourself and produce the photo
Please confirm that the oath has been ad lso confirm that you have been e s of giving false statement under Oath?
endra Karamshi Palan, S/o Shri Karamsh rrently residing at E-406, Pinewood, Va ari (Noar Tara Singh Garden) Mulund (W nfirm that the oath has been administered w showing you the relevant provisions of the chapter X of the code provides for p f the lawful authority of public servants".
rstanding, the text of section 181 and 17
ed herein asunder:
se statement on or affirmation to pub orised to administer an eath or affirmat bound by an oath [or affirmation) to stat to any public servant or other servant or touching the subject, any belleve to be h Imprisonment of either description for o three years, and also be liable to fine.
Mr. Jatin Harish Sotta
8
A No. 1916/MUM/2025
question No. 16
question No. 16
arish Sotta used o. 20 also Shri nt was used for a proprietor of o. 23 also he ere belonging to tatement of Shri ced as under:
ocopy of your dministered to explained the hi Palan, aged asant Garden,
West), Mumbai d to me.
f Indian Penal punishment "of . For the sake
77 of the code lic servant or tion. Wheaver, te the truth on r other person true, shall be a term which 8. 177. Furni to furnish inf furnishes, as has reason t
Imprisonment fine which ma
C. Or, if the in required for th or in order to either descrip fine, or with b
D. Further, I a the Income Ta willfully and imposable tax first person k imprisonment extend to thr understandin herein as und
E. "277A. Fal person (herea willfully and this section r interest or pen or causes to which the firs be true, in an useful in any person, unde rigorous impr months but w
F. Explanatio this section, person has ac or imposable
G. Please conf oath have bee sections of In that you hav attracted aga of the land.
ITA ishing false information, Whoever, being formation on any subject to any publi true, information on the subject which to believe to be false, shall be punished t for a term which may extend to six mo ay extend to one thousand rupees, or with nformation, which of the commission of an he purpose of preventing the commission the apprehension of an offender, with im ption for a term which may extend to two both".
am also showing you the provisions of se ax Act, 1961, which provides that in cas with intent to enable the second person xes makes any statement which is false a knows to be false, he shall be punishable t for a minimum term of three months ree years and with fine. For the sake ng, the text of section 277A of the Act der:
lsification of books of account or documen after in this section referred to as the with intent to enable any other person referred to as the second person) to eva nalty chargeable and imposable under th be made any entry or statement which st person either knows to be false or does ny books of account or other document y proceedings against the first person o er this Act, the first person shall be pu risonment for a term which shall not be le which may extend to three years and with on. For the purposes of establishing the it shall not be necessary to prove tha ctually evaded any tax, penalty or intere under this Act"
firm that the consequences of giving false en tuly explained to you in the light of abo dian Penal Code, 1860 and Income Tax A ve been made aware that appropriate a ainst you in case of violation of above pro
Mr. Jatin Harish Sotta
9
A No. 1916/MUM/2025
legally bound ic servant, as h he knows or d with simple onths, or with h both.
n offence, or is of an offence, mprisonment of years, or with ection 277A of se any person n to evade the and which the e with rigorous s which may of your clear is reproduced nt, etc.- If any e first person) n (hereafter in de any tax or his Act, makes h is false and s not believe to relevant to or or the second unishable with ess than three h fine.
charge under at the second est chargeable e statement on ove mentioned
Act, 1961 and action may be ovisions of law
Ans. Yes, I d statement on confirm havin
However, I w truthful and c
Q.3 Please co language. In recorded.
Ans. Yes, I co language. I w
Language.
Q.4 Please st your employm
Ans. Sir, I am
Neelay Packe
Pinewood, V
Garden) Mulu
87676262728
neelaypacker
Q.5 Please s source of inco
Ans. Sir, my f
Sr.
No.
Name
1. Purnima
Jitendra
Palan
2. Neelay
Jitendra
Palan
Q 6. What is return of Inco
Ans. My PAN taxable Bit, I was filed for A ITA do confirm that the penal provisions fo n oath have been explained to me. Fu ng seen and understood the above cite would like to reiterate that what I am correct statement only.
nfirm that you can read, write and under which language would you like your st onfirm that I can read, write and under would like my statement to be recorde tate your educational qualifications and ment. Also furnish your mobile number an m 10th class passed. Presently, I am Prop ers and Movers having its registered off
Vasant Garden, Swapna Nagari (Near und (West), Mumbai 400 080. My con
88108516272
and email rs@gmail.com.
state the details of your family memb ome.
family details are as under:
Relationship
Age (yrs)
Educational
Qualification
Wife
34
12th Pass
Son
11
Studying i std. 6th your PAN number and slate whether you me?
N number is AABPP08158. Snce my mc
I do not me return of income. My inst re
A.Y. 2009-2010
Mr. Jatin Harish Sotta
10
A No. 1916/MUM/2025
or giving false urther, I also ed provisions.
stating is my rstand English tatement to be rstand English ed in English the details of nd email id.
prietor in M/s ffice at E-406, r Tara Singh ntact detail is id is ers and their n
Source of income/profession
House Wife in Student u regularly file come is beiow elum of teome
Q.7 Please ee
Mis. Moolay P
Ans. 1am en concern M/s.
Q.8 Since whe
Ans. 1 am eng
•Q.9. As you
2009-10, wha
Ans. I was em
Movers, propr engaged in ho job in Pratap concern unde
Q.10 In what
Ans. Sir, I a Neelay Packe
Q.11 Please s new business
Ans. No sir, I the firm.
Q 12. Please
Packers and M
Ans. I get co
After contact household sh contact daily completing labourer are form Rs. 1500
0.13 Please g you.
Ans I have Account No. 0
Bank of 00002011000
ITA eplain the nature of business under propr
Packers and Movers.
ngaged in Household shiling work unde
Neelay Packers and Movers, en are you engaged in this business?
gaged in this business from F.Y. 2010-11
have stated that last return of income wa at was your source of income till that F.Y.
mployed as a supervisor with M/s. Pralap rietary concern of Shri Karamshi Palan.
ousehold shifting work. Due to family dis p Packers and Movers and started ne r name M/s. Neelay Packers and Movers capacity you are recording this statemen am recording this statement as a prop rs and Movers.
state have you invested any capital whi s under name M/s Neelay Packers and M
I have not made any capital investment explain the process of work undertaken i
Movers.
ntract for household shifling work throu is made, visit the party and finalize th hifting work. No agreement for such contr labourers and transporter to get the wo the shifting work cash is rece paid cash of Re 700 per day. Transact
0 to Rs 2000
give the details of all the bank accounts
Current Bank with Bank of India Mu
000920110000389 and OD (Over Draft)
India.
Muland
Branch
Mumbai
0071147. Mr. Jatin Harish Sotta
11
A No. 1916/MUM/2025
rietary concern er proprietary
.
as filed for AY
2008-2009. p Packers and The firm was spute, I left the w proprietary
.
nt?
prietor of M/s le starting the Movers.
while starting in M/s Neelay ugh Just Dial.
he contract of ract is made. I rk done. After eived.
Daily tions are paid s operated by ulund Branch
Account with Account
по
14 From th and give de operating/run Ans Sir no Company, HU Vasant Garde (West). Mumb Q.15 Have y Bank of India Ans/Yes sir. 00692011000 Q.16. What a 00692011000 your busines F.Y. 2010-11 Ans. The cas payment to d per contract expense. How (Haribhai clas my current a promised me F.Y. 2012-13. Q.17 Who is and office) wi Ans. Mr. Jatin West, Mumba whereabouts He is in impar Q.18 Who de with Bank of Ans I along w account 0069 take signed c Masjid Bunde ITA his address, what other concerne are b etail of nature of business of all nning from this premise? other entities (Proprietor ship, partn UF, etc) are running from address E-4 en, Sapna Nagari (Near Tara 学 Singh Ga bai 400 080 except Mrs Neelay Packers an ou ever deposited cash in your current a Mulund West Branch. . I have deposited cash in my cur 00369 with Bank of India Mulund west b amount you have deposited in your cu 00369 with Bank of India Mulund west s income from Mis Neelay Packers and onwards. h received from household shifting work daily labourers and transporter maximum Rs. 400/- remains which is used for m wever I have allowed one of my coachin sses at Mulund - now closed) Shri Jatin account with Bank of India in F.Y. 20 to get housing loan. My account was us
Mr. Jatin Sotta. Give his complete addre ith contact details.
n Sotta, staying in premise at Devidayal R ai Presently the premise is in redevelopm not known. He is proprietor of Mahendra rt export business. His contact no is 9819
eposited cash in current account 00692
India Mulund west branch Mumbai?
with Mr. Jatin Sotla use to deposit cash
920110000369. Once the cash is deposit cheque from me and visil Oriental Bank er, Murnbal to remit/deposit same.
Mr. Jatin Harish Sotta
12
A No. 1916/MUM/2025
being operated the concerns nership, LLP,
406 Pinewood arden) Mulund nd Movers t account with rrent account ranch.
urrent account branch out of d Movers from k after making m sum balance my household ng class friend n Sotta to use
011-12 as he sed by him till ess (residence
Road, Mulund ment hence his a International
9474777
20110000369
in the current ted he used to of Commerce,
Q.19 Please g
Prop. JatinSo
Mumbai.
Ans. I don't
Prop. Jatin So Mumbai. As I know the ban
Q.20 Other th your current b
Ans. I have n
00692011000
depositing hig
Mahendra Int
2012-13. Q.21 From 00692011000
that cash dep viz. Shakti En parties.
Ans. As stat account in my cheque prepa and D. D. M. I
Q.22 Please s
Jatin Sotta i
India, Mulund
Ans. Cash to and Jatin Sot
India, Mulund
Q.23 Please s in current acc west branch,
Ant Sir, I apa
00697011000
Mumbai belon
Q.24 Please s has been dep
ITA give the bank account detail of Mahendra otta with Oriental Bank of Commerce, M know the bank account of Mahendra otta with Oriental Bank of Commerce, M
I have visited twice to deposit cheque with nk.
han Mr. Jatin Sotta, to whom you have a bank account at Mulund west branch.
not allowed anybody else for using my cu
00369 with Bank of India, Mulund we gh value cash. Cash belonging to Jatin ternational was deposited during FY 20
perusal of bank statement of cur
00369, Bank of India Mulund west bran posited is withdrawn on same day by tw nterprises and D.D.M. Impex. Please give ted above Jatin Sotta deposited cash y presence. After depositing the cash, I u ared by him. I have no idea about Shak
Impex. It may be his concerns only.
state how much cash has been deposite in current account 006920110000369
d west branch, Mumbai.
taling more than Rs. 2.5 crores was dep tta in current account 006920110000369
d west branch, Mumbai.
state again to whom did the cash which count 006920110000389 with Bank of I
Mumbat along with Mr. Jatin Sotta belon ain confirm that the cash deposited in cu
00369 with Bank of India, Mulund nged to Mr Jatin Sotta state whether any cash belonging to you eposited by you in bank account other
Mr. Jatin Harish Sotta
13
A No. 1916/MUM/2025
a International,
Masjid Bunder,
International,
Masjid Bunder, h Jalin Solla, I allowed to use urrent account est branch for Sotta, prop of 11-12 and FY rrent account nch, it is seen wo other firms details of said in my bank use to sign the kti Enterprises ed by you and with Bank of posited by me
9 with Bank of you deposited
India, Mutund ng to.
urrent account west branch, or other party r than current account 0069
India.
Ans. I state on other bank
00692011000
Mumbai in w
My other acc transaction is Q.25 Please s cash deposit t
Ans. I have allowed him t
Bank of India help me gettin
Q.26 Please s
00692011000
Mumbai shou
Ans. Sir, I al current accou my mobile no cash in my cu
Mulund wes whereabouts
The recording concluded for the assessee statement wil
Whatever sta knowledge a voluntarily, w promise, or a was administ declare that statement an such, the cont
7.2 It is sina que reason to believe t
ITA
920110000369 with Bank of India, Mu n oath that such transaction are not done account. I have only one current
00369 with Bank of India, Mulund which cash is deposited in my presence b count is overdraft account mentioned ab s made in overdraft account.
state how much commission did you rec transaction from Jatin Sotta.
not received any commission from him to use by current account i.e. 00692011
a, Mulund west branch, Mumbai as he pr ng loan.
state why the cash deposited in your cu
00369 with Bank of India, Mulund uld not be brought to tax in your hand.
lready stated on oath that the cash dep nt is belonging to Jatin Sotta. He used to o. 9920943816 whenever he wanted t urrent account 006920110000369 with B st branch, Mumbai. I will give the of Jatin Sotta within three days.
g of statement of Shri Jitendra Palan i r the day at 5.00 P.M on 11/02/2019 on and he is allowed to take rest. Further ll resume tomorrow on 18/02/2019. ated above is true and correct to the and belief. The above statement is g without any force, threat, coercion, any any other undue influence. I further aff tered to me before recording the statem
I have read & understood the ab d I confirm that it has been correctly rec tents of the same are binding on me.”
non that the Assessing Office that income chargeable to ta
Mr. Jatin Harish Sotta
14
A No. 1916/MUM/2025
ulund west in e by me in any account 1.8
west branch, by Jatin Sotta.
bove. No such ceived in each m. I have just
0000369 with romised me to urrent account west branch, posited in my contact me on to deposit his
Bank of India, information/
is temporarily the request of r, recording of e best of my given by me y inducement, firm that oath ment. Further I bove recorded corded and as er must have a ax has escaped assessment; such b material and not on c
AO in this case —
Investigation Wing co section 131 — is of a The statement of Shr cash deposits in his instance of, the ass belonging to the asse the assessee is a coge legitimately be found supported by object complies with the sta
7.3 Statements reco an authorised offi
Admissions in such s an account was use cash deposited belon leads for reopening o
K. Palan identifies th the disputed receipt material to trace the such a statement sustainable.
ITA belief must be based on tan conjecture or suspicion. The ma a contemporaneous communic oupled with a sworn statement character that goes well beyond ri Jitendra K. Palan is explicit t account were made on behalf sessee and were thereafter rou essee. Such a nexus between th ent and relevant material on wh ded. In short, the AO’s subjec tive, tangible data and hence atutory test.
orded under section 131, given cer, carry substantial evide statements — particularly those d at the instance of another p nged to that person — are relev of assessment. The statement o he assessee as the source and th ts; it therefore constitutes logi e origin and application of fun for forming reasons to bel
Mr. Jatin Harish Sotta
15
A No. 1916/MUM/2025
ngible, credible aterial before the cation from the recorded under d idle suspicion.
that substantial f of, and at the uted to entities he deposits and hich a belief may ctive belief was e the reopening n on oath before entiary weight.
e admitting that person and that ant and reliable of Shri Jitendra he beneficiary of ical and cogent nds. Reliance on lieve is legally
4 A reopening fou conclusion — withou gives rise to the obje case. The record s Investigation Wing; reproduction of relev account-holder. The A the material to the transfers to the a accordingly. Thus, admissible material, satisfaction. 7.5 In view of afores Ld. counsel for th proceedings. 8. As far as addition the assessee submit belonging to sh Jiten the hands of the said explain the source of hands of assessee information sent by t the Assessing Office Jitendra K. Palan, w ITA unded on mere parroting of an ut independent application of mi ection of borrowed satisfaction. shows (a) receipt of informa (b) verification of bank en ant portions of the statement of AO did not simply adopt a temp e facts of the assessee (bank assessee’s concerns) and rec the AO’s belief was his own , and cannot be characterise said discussion, we reject the a he assessee and uphold the on merit is concerned, the L tted that cash was deposited ndra K. Palan and addition ha d person. The assessee was no f said cash deposit, therefore no is warranted. The Ld. coun the Dy. Director of Income-tax ( er along with copy of the sta which is available on Paper Boo Mr. Jatin Harish Sotta 16 A No. 1916/MUM/2025 n investigational ind by the AO — That is not this ation from the ntries; and (c) f the third-party plate; he applied k trail showing corded reasons n, informed by ed as borrowed rguments of the e reassessment Ld. counsel for in the account s been made in ot in position to o addition in the nsel referred to Investigation) to atement of Shri ok page 9 to 19. The Ld. counsel for t proceedings of subse similar deposit mad submitted that in sub 8.1 We find that as either before the Ld. A the statement of Sh evident that the dep account of Shri Jiten the bank account of assessee, as they wer the nexus is establish explain the nature a however, neither befo nor even before us, burden. The assessee that it was the onus in his current acco Assessing Officer in h in the case of the ass Shri Jitendra K. Pal demonstrates that th of the assessee. No support of the ultim ITA the assessee also referred to th equent assessment year 2013-1 de in the subsequent assessm bsequent year, no addition has b ssessee didn’t explain the sour Assessing Officer or before the L hri Jitendra K. Palan reprodu posits of ₹2,86,80,200/–, thoug ndra K. Palan, most of it ultim the assessee and were directly re transferred to the assessee’s hed, the burden squarely lay on and source of the said deposits ore the Assessing Officer nor be has brought any material to e cannot run away by way of m of Shri Jitendra K. Palan to exp ount and addition has been his case and therefore, no additi sessee. Mere plea that the acco lan is of no avail, since the e he monies belonged to and enure o documentary evidences have ate source of credit appearing Mr. Jatin Harish Sotta 17 A No. 1916/MUM/2025 he reassessment 14 in respect of ment year and been made. rces of deposits Ld. CIT(A). From ced above it is gh made in the mately landed in traceable to the concerns. Once n the assessee to s. The assessee, efore the CIT(A), o discharge this making argument plain the deposit n made by the ion is warranted ount belonged to evidence clearly ed to the benefit e been filed in in the books of the assessee, which current account of Ji 8.2 We are also un addition was made i deletion in the prese years cannot be mec year. Each assessme material available fo acceptance in a late Revenue from pursu cogent material exis Hon’ble Supreme Cou India [155 ITR 120 ( an error; each assess of consistency canno material establishes t 8.3 The assessee’s under consideration, notices under sectio crucial issue, is mate inference where a ta wilfully refrains fro evidence. Non-cooper ITA h are generated due to cash itendra K. Palan. nable to accept the contention in the subsequent year, consis ent year. Orders passed in ot chanically plugged in as a shield nt year is a distinct unit govern or that year. The invocation o er year cannot, without more ing a legitimate claim in an ea sted. It is a trite law, as enu urt in Distributors (Baroda) Pvt. (SC)], that there is no heroism sment year is a separate unit, a ot override substantive justice taxability. failure to file the regular retu , coupled with repeated non-c on 142 and non-appearance erial. The law permits the drawin axpayer, despite being afforded om disclosing material facts ration in the face of clear doc Mr. Jatin Harish Sotta 18 A No. 1916/MUM/2025 deposits in the n that, since no stency demands her assessment d in the present ned by facts and of a subsequent e, disentitle the rlier year where unciated by the Ltd. v. Union of in perpetuating and the principle where tangible urn for the year compliance with to explain the ng of an adverse d opportunities, or producing cumentary leads weakens the assesse the AO’s conclusion. 8.4 Having upheld cogent material relie tenets of natural just aim at substantial Nonetheless, conside opportunity be afford of cash deposits, whi in the bank accoun principle that substa we are inclined to res assessee shall be at substantiate his expl The assessee shall a lower authorities so to assessee can be adjudicate the issue out all necessary en opportunity to the as 8.5 The grounds o accordingly allowed f ITA e’s case and strengthens the re the validity of reassessment ed upon by the AO, we are m tice and the principle that adju justice rather than mere tec ering the plea of the assessee t ded to adduce evidence explain ich have directly or indirectly, ul nt of the assessee, and bearin antial justice must prevail ove store the matter to the file of the t liberty to place all supporting lanation regarding the source o also produce sh Jitendra K. P as to identification of cash dep correctly carried out. The L afresh in accordance with law nquiry as deemed fit but afte ssessee of being heard. of appeal of the assessee on for statistical purposes. Mr. Jatin Harish Sotta 19 A No. 1916/MUM/2025 asonableness of and noting the mindful of basic udication should chnical victory. that one further ning the sources ltimately landed ng in mind the er technicalities, e Ld. CIT(A). The g documents to of cash deposits. Palan before the posits pertaining Ld. CIT(A) shall w after carrying r affording due the merit are 9. In the result, th statistical purposes. Order pronoun (RAJ KUMAR C JUDICIAL M Mumbai; Dated: 22/09/2025 Rahul Sharma, Sr. P.S.
Copy of the Order forward
1. The Appellant
2. The Respondent.
3. CIT
4. DR, ITAT, Mumbai
5. Guard file.
////
ITA he appeal of the assessee is pa nced in the open Court on 22
d/- CHAUHAN)
(OM PRAK
MEMBER
ACCOUNTA ded to :
BY ORDER
(Assistant Re
ITAT, Mu
Mr. Jatin Harish Sotta
20
A No. 1916/MUM/2025
artly allowed for /09/2025. d/-
KASH KANT)
ANT MEMBER
R, gistrar) umbai