IQBAL USMANGANI KHATRI,MUMBAI vs. DCIT CEN CIR 2(3), MUMBAI

The assessee has filed the present appeal against the order dated 19.12.2017 passed by the Commissioner of Income Tax (Appeals)-48 (for short ‘the CIT(A), Mumbai, which pertains to the the assessment year 2008-09, vide which, the Ld. CIT(A) has dismissed the appeal filed by the assessee, against the assessment order passed u/s 143 (3) r.w.s. 147of the Income Tax Act, 1961 (for short the ‘Act’).

Brief facts of the case are that the assessee engaged in the business of property development, undertaking civil contract work and trading in building material, filed its return of income for the assessment year under consideration declaring total income of Rs. 15,55,937/-. The return was processed and assessment order was passed u/s 143 (3) of the Act. Subsequently, the AO reopened the assessment, based on the information received from DDIT (Inv.) Assessment Year: 2008-09 to the effect that the assessee had deposited cheque of Rs. 2 crore in his account, maintained with HSBC on 23.01.2008 and the same was withdrawn on 29.01.2008. Further, the assessee had deposited Rs. 12,50,000/- in account maintained with Deutsche Bank, Khar, Mumbai on various dates and also withdrawn the cash from time to time. Accordingly, the AO passed the assessment order u/s 143(3) r.w.s. 147 of the Act, determining total income of the assessee at Rs. 2,19,55,940/- (rounded off), after making addition of Rs. 2,00,00,000/- u/s 68 and addition of Rs. 3,00,000/- u/s 69A of the Act. The assessee challenged the assessment order before the Ld.CIT (A). The Ld.CIT (A) after hearing the assessee dismissed the assessee’s appeal and confirmed the action of the AO. Against the said order, the assessee is in appeal before this Tribunal. 3. The assessee has challenged the impugned order passed by the Ld. CIT (A) on the following effective grounds:- Ground No. 1: Unexplained cash credit u/s 68 On the facts and in the circumstances of the case and in law, the Ld. Dy. CIT (AO) erred in making addition of Rs. 2,00,00,000/- (Rupees Two Crores) arbitrarily by treating the advance received from Yash Birla Construction Group as unexplained cash credit u/s 68 of the I.T. Act 1961 by ignoring the confirmation of account and without assigning any valid reasons. The learned CIT (Appeal)-48 Mumbai upheld the order of Assessing Officer Dy. CIT-2(3) Mumbai in total disregard to facts of the case and evidence and material on record filed before the A.O. and CIT (Appeal) by stating in her order in para 5.1 that only one document consisting of confirmation is filed and no other detail regarding genuineness of transaction and credit worthiness of the party have been filed. Appellant prays addition of Rs. 2 crores may please be deleted.