MITHALAL VAGTAJI MALI,MUMBAI vs. DEPUTY COMMISSIONER OF INCOME -TAX, CIRCLE 9 (2), MUMBAI

This appeal filed by the assessee on 2.5.2016 is against the order of the CIT (A)-32, Mumbai dated 16.2.2016 for the assessment year 2009-2010.

In this appeal, assessee raised four grounds in toto and they revolve around the correctness of addition on account of cash credit without granting the benefit of telescopy. Basic facts include that the assessee holds bank account in ICICI Bank and he deposited cash on various dates in the year under consideration. The gross amount of such credits works out to Rs. 45 lakhs (rounded of). Nobody was present before the AO during the assessment proceedings with any explanation / details. Thus, assessment resulted in addition of Rs. 45 lakhs (rounded of). Matter travelled to the first appellate authority. 3. During the first appellate authority, assessee filed written submissions and eventually requested for telescopy of cash deposits against the cash withdrawals appeared in the said Bank Account of the assessee. As discussed in para 7 of the order of the CIT (A), the additional evidences were admitted and remand report was called for from the AO. On considering the said report, CIT (A) held that the assessee failed to produce cash sale bills and cash purchase bills. Not even the books of accounts were supplied. Therefore, CIT (A) confirmed the addition and also denied the benefit of telescopy. Aggrieved, assessee is in appeal before the Tribunal.

During the proceedings before the Tribunal, Ld Counsel for the assessee submitted that the matter may be remanded back to the file of the AO with a direction to consider the request for telescopy when the cash purchase bills are furnished.

After hearing both the parties and on perusal of the orders of the Revenue Authorities as well as the relevant material placed before us, I am of the opinion, as prayed by the Ld AR, the matter is required to be remanded to the file of the AO with a request for telescopy. I order accordingly. AO shall grant a reasonable opportunity of being heard to the assessee as per the set principles of natural justice. Assessee is also directed to furnish the cash purchase bills to demonstrate that the withdrawn cash was found way back into the bank account. Assessing Officer is free to confirm the addition in case the cash purchases are NIL during the year or assessee fails to discharge the onus satisfactorily. With these directions, the appeal of the assessee is allowed for statistical purposes.

In the result, appeal of the assessee is allowed for statistical purposes. Order pronounced in the open court on 12th April, 2017. Sd/- (D. KARUNAKARA RAO) ACCOUNTANT MEMBER भुंफई Mumbai; ददनांक 12.04.2017 व.नन.स./ OKK , Sr. PS आदेश की प्रतिलऱपि अग्रेपिि/Copy of the Order forwarded to : अऩीराथी / The Appellant 1. 2. प्रत्मथी / The Respondent. आमकय आमुक्त(अऩीर) / The CIT(A)- 3. आमकय आमुक्त / CIT 4.