What did the Tribunal hold?

The Tribunal held that the sale of cars was not entirely disputable, and accepted a revised sale value of Rs. 5 lakhs for the cars. The addition towards the balance cash deposit of Rs. 4,60,000/- was not interfered with.

The Assessing Officer made an addition of Rs. 9,60,000/- on account of unexplained cash deposits in the assessee's bank account. The assessee claimed these deposits were from the sale proceeds of two cars and opening cash balance.

What were the issues?

The primary issue was the genuineness and valuation of cash deposits claimed to be from the sale of cars, and whether the addition made by the AO was justified.

Shri Kiritkumar Himatlal Dholakia vs ITO | ITAT Ahmedabad 2017

Income Tax Appellate Tribunal, “ SMC ” BENCH, AHMEDABAD

Before: SHRI S.S. GODARA & SHRI PRADIP KUMAR KEDIA

For Respondent: Dr. Anupama Singala, Sr.DR

आदेश / O R D E R PER PRADIP KUMAR KEDIA - AM: The captioned appeal filed at the instance of the assessee is against the order of the Commissioner of Income Tax(Appeals), Ahmedabad-5 [CIT(A) in short] dated 02/03/2015 in the matter of assessment order under s.143(3) of the Income Tax Act, 1961 (hereinafter referred to as "the Act") dated 03/01/2014 relevant to Assessment Year (AY) 2011-12.

ITA No.1491/Ahd/2015 Kiritkumar Himatlal Dholakia vs. ITO Asst.Year – 2011-12 - 2 -

The grounds of appeal raised by the assessee read as under:- The learned CIT(A) has erred in law and on facts in holding that the addition of Rs.9 lacs and of Rs.60,000/- is found correct and justified, thereby dismissing the appeal of the appellant.

On the facts and in the circumstances of the case and in law the learned CIT(A) ought to have deleted the aggregate addition of Rs.9,60,000/- made by the Assessing Officer. 3. Briefly stated, in the course of the assessment proceedings, the Assessing Officer (AO) observed that certain cash deposits to the extent of Rs.9,60,000/- was found to be made in the bank account of the assessee. The assessee explained that Rs.60,000/- cash has been deposited out of all opening cash balances and another cash of Rs.5 lakhs and Rs.4 lakhs were deposited against the receipts of the sale proceeds of Toyata Quails and Swift Desire Cars respectively. The assessee filed certain details in this regard viz.delivery challan and the address of the buyers of car together with their written confirmations and PANs. The AO, however, disputed the value of the sale proceeds of the Car and also the bonafide of the sale. Accordingly, an addition of Rs.9,60,000/- was made towards unexplained cash deposit in the hands of the assessee. Aggrieved by the aforesaid addition, the assessee preferred appeal before the CIT(A) without any success.

ITA No.1491/Ahd/2015 Kiritkumar Himatlal Dholakia vs. ITO Asst.Year – 2011-12 - 3 - 4. Aggrieved, the assessee is in appeal before the Tribunal.

At the time of hearing, the Ld.AR for the assessee submitted that the sale of two cars cannot be disputed in view of the cogent facts placed on record. Both the cars have been sold to persons fully identifiable along with their address and PANs. Therefore, the action of the revenue in not granting any relief towards the sale proceeds of cars as unsustainable in law. The Ld.AR thereafter submitted that the revenue has also disputed the value at which the cars have been sold and cash deposits made against the same were also disputed. The Ld.AR submitted that the value assigned against the sale of car under mutual contract is not ordinarily disputable. However, in order to buy peace and to the protracted litigation the Ld.AR submitted that the value of the cars may be taken at Rs.6 lakhs. He thereafter further conceded across the bar that the lump sum value of two cars may be taken at Rs. 5 lakhs. Therefore, in view of the aforesaid assertions, the cash deposit to the extent of Rs.5 lakhs stands explained. The addition towards balance cash deposit of Rs.4,60,000/- is not interfered with. Consequently, the assessee gets relief of Rs.5 lakhs against the impugned addition on Rs.9,60,000/-.

ITA No.1491/Ahd/2015 Kiritkumar Himatlal Dholakia vs. ITO Asst.Year – 2011-12 - 4 - 6. In the result, appeal of the assessee is partly allowed.

This Order pronounced in Open Court on 10 / 11 /2017

Sd/- Sd/- (एस.एस.गोदारा) (�द�प कुमार के�डया) �या�यक सद�य लेखा सद�य ( PRADIP KUMAR KEDIA ) ( S.S. GODARA ) JUDICIAL MEMBER ACCOUNTANT MEMBER Ahmedabad; Dated 10 / 11 /2017 ट�.सी.नायर, व.�न.स./T.C. NAIR, Sr. PS

आदेश क� ��त�ल�प अ�े�षत/Copy of the Order forwarded to : 1. अपीलाथ� / The Appellant 2. ��यथ� / The Respondent. 3. संबं�धत आयकर आयु�त / Concerned CIT 4. आयकर आयु�त(अपील) / The CIT(A), Ahmedabad-5 �वभागीय ��त�न�ध, आयकर अपील�य अ�धकरण, अहमदाबाद / DR, ITAT, Ahmedabad 5. 6. गाड� फाईल / Guard file. आदेशानुसार/ BY ORDER, स�या�पत ��त //True Copy//

उप/सहायक पंजीकार (Dy./Asstt.Registrar) आयकर अपील�य अ�धकरण, अहमदाबाद / ITAT, Ahmedabad 1. Date of dictation ..7.11.17 (dictation-pad 6- pages attached at the end of this appeal-file) 2. Date on which the typed draft is placed before the Dictating Member … 8.11.17 3. Other Member… 4. Date on which the approved draft comes to the Sr.P.S./P.S…………….. 5. Date on which the fair order is placed before the Dictating Member for pronouncement…… 6. Date on which the fair order comes back to the Sr.P.S./P.S…….10.11.17 7. Date on which the file goes to the Bench Clerk…………………10.11.17 8. Date on which the file goes to the Head Clerk…………………………………... 9. The date on which the file goes to the Assistant Registrar for signature on the order…………………….. 10. Date of Despatch of the Order………………

SHRI KIRITKUMAR HIMATLAL DHOLAKIA,AHMEDABAD vs. THE INCOME TAX OFFICER, WARD-14(1), AHMEDABAD

What did the Tribunal hold?

What were the facts?

What were the issues?

Which sections of the Income-tax Act were involved?

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