M.S SOUTH OCEAN TRANSPORT PVT LTD.,MUMBAI vs. ITO 11 (2)(3), MUMBAI

The ground of appeal reads as under :-

Brief facts of the case are that assessee is engaged in the logistic business/service provider and serves client for import and export shipments executed from various port of the world by sea as well as air mode. The AO in course of assessment proceedings noted that cash deposits of Rs. 24,09,000/- were there in the assessee's bank account. On query in this regard assessee explained that it has received cash from various customers and the same were withdrawn for payment to government account for custom duties on behalf of 2 M/s. South Ocean Transport Pvt. Ltd.

Against this order assessee is in appeal before the ITAT.

I have heard both the parties and perused the records. Learned counsel of the assessee reiterated the claim that the amount deposited was received from customers for payment of Customs duties which were subsequently withdrawn and paid to government account on behalf of customers. The learned counsel submitted voluminous paper book in support of the claim. I note that even the Assessing Officer in his order has noted that there are corresponding withdrawals in the bank the statement. This fact coupled with the fact of the assessee's nature of business which the assessing officer has himself noted it is amply clear that assessee explanation has prima facie cogency. Without cogently rebutting the explanation of the assessee the addition is not a sustainable as it clearly shows lack of application of mind by the authorities below.

In the interest of justice, I remit the issue to the file of assessing officer. The assessing officer is directed to examine the assessee's claim along with the submissions in this regard and thereafter pass an order as per law. Needless to add assessee should be granted adequate opportunity of being heard. Both the parties agreed to the above.

In the result assessee's appeal is allowed for statistical purposes Order pronounced in the open court on 23.3.2022.