BABAN B. LANDAGE ,MUMBAI vs. ITO 27 (1)(2), MUMBAI

आयकरअपील सं./ (िनधा"रण वष" / Assessment Year: 2013-14) Baban B. Landage, ITO-27(1)(2), बनाम/ D-305, MM Estate Vashi Railway Station Complex Vikram Apartment, LBS Marg, Vashi Vs. Ghatkopar, Mumbai – 400086 Navi Mumbai – 400703. "थायीलेखासं./जीआइआरसं./PAN/GIR No. AAAPL-7213-L (अपीलाथ"/Appellant) (""थ" / Respondent) : Assessee by : Shri Bharat Kumar- Ld. AR Revenue by : Ms. Kavita P. Kaushik-Ld.DR सुनवाई की तारीख/ : 23/01/2020 Date of Hearing घोषणा की तारीख / : 20/02/2020 Date of Pronouncement आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member) 1.1 Aforesaid appeal by assessee for Assessment Year [in short referred to as ‘AY’] 2013-14 contest the order of Ld. Commissioner of Income-Tax (Appeals)-26, Mumbai, [in short referred to as ‘CIT(A)’], Appeal No. CIT(A)-26/IT/10441/2017-18 dated 04/10/2019 on certain grounds of appeal.

2 Baban B. Landage Assessment Year :2013-14 1.2 The Ld. Authorized Representative for Assessee (AR), at the outset submitted that only ground no. 3 of the appeal is being pressed. The same read as under: - On the facts and in the circumstances of the case and in law, the Ld. CIT(A) erred in confirming the addition of Rs.47,95,403/- made by the Ld. AO.

1.3 At the same time, Ld. AR pressed for additional ground of appeal filed on 03/12/2019, which read as under: - On the facts and circumstances in the case in law, Ld. AO erred in not providing credit of TCS of Rs.2,71,726/- which is appearing in 26AS.

Since the assessee seek only a direction in the matter, the additional ground was admitted. 1.4 We have carefully heard the rival submissions and perused relevant material on record including documents placed in the paper- book. Our adjudication to the subject matter of present appeal would be as given in succeeding paragraphs. 2.1 Facts on record Facts on record would reveal that the assessee being resident individual stated to be engaged in operating wine shop, was assessed for year under consideration u/s 143(3) r.w.s. 147 on 28/12/2017 wherein the income of the assessee was determined at Rs.61.09 Lacs after sole addition of unexplained investments for Rs.49.95 Lacs as against assessed income of Rs.11.14 Lacs u/s 143(3) vide order dated 29/02/2016. 2.2 The reassessment proceedings were triggered upon receipt of certain information that the assessee made cash deposit of Rs.10 Lacs in Saraswat Bank and another cash deposit of Rs.14.10 Lacs in 3 Baban B. Landage Assessment Year :2013-14 Allahabad Bank. Accordingly, notice u/s 148 was issued on 02/03/2017, as per due process of law, which was followed by notices u/s 143(2) and 142(1) wherein the assessee was directed to substantiate the deposit of cash. It was found that the two accounts were not disclosed in the Balance Sheet. The copies of bank statements were obtained from respective banks. On the basis of said material, Ld. AO proceeded to add the same to the income of the assessee as unexplained investment. 2.3 During regular assessment proceedings, the assessee had given the affidavit that the said bank accounts were neither opened by the assessee nor operated by the assessee and accordingly, no additions were made in regular assessment proceedings. However, upon receipt of Bank statements from respective banks, it transpired that the assessee was having savings account with Chembur branch of Saraswat Bank and another account with Ghatkopar Branch of Allahabad Bank. The copies of statements were forwarded to assessee for explanation. 2.4 In response, the assessee vide reply dated 07/12/2007 filed documents towards supply of sugarcane to sugar factory (Vighanahar Sugar Factory) for Rs.10.60 Lacs and detail of sale of Milk amounting to Rs.4.96 Lacs to Biroba Maharaja Milk Production Sanstha Ltd. Vide other submissions dated 20/12/2017, the assessee submitted that the assessee’s father had agricultural land and derived agricultural income by selling sugarcane, milk and other seasonal vegetables which was sold on cash basis and cash was deposited in the bank accounts. The sale of supply of sugarcane was reflected for Rs.10.60 Lacs, sale of milk was reflected as Rs.9.77 Lacs and sale of seasonal crop was reflected 4 Baban B. Landage Assessment Year :2013-14 as Rs.3.71 Lacs. In support, copy of 7/12 extract of agricultural land in the name of assessee was also furnished. 2.5 However, many discrepancies were noted in the documents submitted by the assessee. The certificate issue by purchasing organization was found to be undated. No supporting bills were submitted. Therefore, a conclusion was drawn that the entire exercise was a mere after thought. Finally, credit entries aggregating to Rs.49.95 Lacs was added to the income of the assessee. 3.1 Before Ld. CIT(A), the assessee, inter-alia, reiterated that agricultural receipts as well as capital receipts should be excluded and the taxable income should be considered by following Peak Credit Method after giving benefit of telescoping. The working of the same was provided to Ld. CIT(A) which has already been extracted at page no. 3 of the impugned order. However, Ld. CIT(A) provide relief to the extent of Rs.2.06 Lacs only and confirmed the balance additions of Rs.47.89 Lacs. Aggrieved, the assessee is under further appeal before us.