PAWAN R SONI,MUMBAI vs. ITO 19(1)(1), MUMBAI

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ITA 1538/MUM/2013Status: DisposedITAT Mumbai18 July 2016AY 2009-103 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal noted that the CIT(A)'s order was cryptic and did not consider the assessee's submissions regarding the deposits being sale proceeds. The revenue representative conceded that the issue should be remitted back to the CIT(A) for fresh adjudication.

What were the facts?

The assessee's appeal concerns the addition of cash deposits made in a savings bank account, which the Assessing Officer (AO) treated as income from undisclosed sources. The Commissioner of Income Tax (Appeals) confirmed the AO's action.

What were the issues?

Whether the CIT(A) erred in confirming the addition of cash deposits as income from undisclosed sources without properly adjudicating the assessee's submissions.

Which sections of the Income-tax Act were involved?

Section 143(3)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “C” BENCH, MUMBAI

Before: SHRI MAHAVIR SINGH, JM & SHRI SANJAY ARORA, AM

For Appellant: Shri Premanad
For Respondent: Shri Premanad

सुनवाई क� तार�ख / : 18.7.2016 Date of Hearing घोषणा क� तार�ख / : 18.7.2016 Date of Pronouncement आदेश / O R D E R Per Sanjay Arora, A. M.: This Appeal by the Assessee is arising out of the Order by the Commissioner of Income Tax (Appeals)-30, Mumbai (‘CIT(A)’ for short) in Appeal no. CIT(A)-30/ITO 19(1)(1)/IT-75/11-12 dated 05.11.2012. The assessment was framed by ITO, Ward 19(1)(1), Mumbai for the assessment year (A.Y.) 2009-10 vide his order dated 15.12.2011 u/s. 143(3) in the Income Tax Act, 1961 (‘the Act’ hereinafter).

(A.Y. 2009-10) Pawan R. Soni vs. ITO 2. The only issue in this appeal of the assessee is against the order of CIT(A), confirming the action of the A.O. in making the addition of cash deposits made in saving bank account maintained with ICICI Bank, Khar (W), Mumbai, which is an undisclosed bank account. For this the assessee has raised following Ground no. 1: ‘1. The CIT(A) erred in confirming the order of A.O. wherein he added into income of appellant a sum of Rs.25,10,692/- being the sale proceeds of garments/cloth deposited into bank account of appellant by various customers/upcountry parties as income from undisclosed sources. Under the facts and circumstances of the matter, the CIT(A) ought not to have confirmed the said order of A.O.’

3. At the outset, it is noticed from the order of CIT(A) that the assessee has raised various pleas vide written submissions, but the CIT(A) has not considered these submissions and confirmed the action of the A.O. by a cryptic order. The assessee has explained that the cash deposits are on account of sale and purchase which are correlated with the deposits. This is merely an assertion by the assessee and has to be verified. It is noted that the order of the CIT(A) is cryptic one and has not adjudicated the submissions of the assessee. When this was confronted to the ld. DR, he fairly conceded that the issue may be remitted back to the file of the CIT(A) for fresh adjudication after allowing reasonable opportunity of being heard to the assessee. In term of the above, we set aside the order of the CIT(A) and restore the matter back to his file for fresh adjudication in terms of the law.

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