Mangal Kusha Patil, Thane vs Assessee

सव ौी वजय पाल राव, याियक सदःय एवं नरे ि कुमार ब"लै$या, लेखा सदःय के सम&

BEFORE SHRI VIJAY PAL RAO, JUDICIAL MEMBER AND

SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER

I.T.A. No. 2424/Mum/2012 िनधा रण वष / Assessment Year : 2007-08 (िनधा Shri Mangal Kusha Patil, बनाम The ITO Ward 4(2), बनाम/ 303, Mamta Tower, Thane Vs. P.P. Marg, Pushpa Nagar, Virar (W), Thane-401 303 ःथायी ले खा सं . /जीआइआर सं . /PAN/GIR No. :AFRPP 8226K (अपीलाथ* /Appellant) .. (ू,यथ* / Respondent) अपीलाथ* ओर से/ Appellant by: None ू,यथ* क. ओर से/Respondent by: Shri Jeetendra Kumar

सुनवाई क. तार0ख / Date of Hearing :16.03.2015 घोषणा क. तार0ख /Date of Pronouncement :16.03.2015

आदे श / O R D E R

PER N.K. BILLAIYA, AM:

This appeal by the assessee is preferred against the order of the Ld. CIT(A)-II, Thane dt. 28.11.2011 pertaining to assessment year 2007-08.

2. The assessee is aggrieved by:

(i) The disallowance of Rs. 2,65,860/- on account of Sundry creditors.

2 ITA. No. 2424/M/12 (ii) Disallowance of Rs. 6,85,000/- on account of trade advances and

(iii) Disallowance of Rs. 66,505/- on account of excess cash deposited in the bank.

3. A perusal of our record shows that the appeal was first posted for hearing on 25.4.2013, no one represented the assessee, the case was adjourned to 21.10.2013 with a direction to issue notice by RPAD. Subsequently, hearing was adjourned to 25.3.2014, on that date the Ld. Counsel for the assessee sought adjournment and the case was adjourned to 9.9.2014. On 9.9.2014 none attended from the side of the assessee and the case was adjourned to 16.3.2015 with a direction to issue notice through RPAD. The notice was issued and served upon the assessee but no one attended on this date, therefore, we have decided to proceed ex parte.

4. The assessee is in the business of trading of Bricks and River sand. The return was selected for scrutiny assessment under CASS. While scrutinizing the return of income, the Assessing Officer observed that in the balance sheet, the assessee has shown sundry creditors of Rs. 2,65,860/- and trade advances of Rs. 6,85,000/-. The assessee was asked to explain the credit entries in the light of the provisions of Sec. 68 of the Act. On receiving no plausible reply, the AO proceeded to add these amounts u/s. 68 of the Act as unexplained cash credit.

4.1. The AO further observed that the assessee has deposited Rs. 10,75,200/- whereas the total sales receipt are shown at Rs. 10,08,695/-. According to the AO, there was an excess deposit of Rs. 66,505/-. The excess cash was treated as income of the assessee. On comparing the sales figure for the year under consideration with earlier years vis-à-vis, 3 ITA. No. 2424/M/12

the expenditure claimed, the AO noticed that the expenses claimed during the year under consideration to be excess from earlier years. The AO disallowed 1/4th of the expenses claimed totaling to Rs. 29,148/- and added the same to the income of the assessee.

5. Aggrieved by this, the assessee carried the matter before the Ld. CIT(A) but without any success.

6. Before us as stated elsewhere, no one represented the assessee. We have heard the Ld. Departmental Representative and carefully perused the orders of the authorities below. In so far as the addition made u/s. 68 is concerned, we find that the assessee has not discharged the initial onus cast upon it by the provisions of Sec. 68 of the Act. We, therefore, do not find any error in the findings of the Ld. CIT(A). Ground No. 1 & 2 are accordingly dismissed.

7. In so far as the addition of Rs. 66,505/- on account of excess cash deposited is concerned, we find that the same was not seriously contested before the Ld. CIT(A) as per the observations made by the Ld. CIT(A) at para-4.2 of his order. We, therefore decline to interfere. Ground No. 3 is also dismissed.

Order pronounced in the open court at the time of hearing on 16th March, 2015

Sd/- Sd/-

(VIJAY PAL RAO ) (N.K. BILLAIYA) याियक सदःय/JUDICIAL MEMBER लेखा सदःय / ACCOUNTANT MEMBER

मुंबई Mumbai; 4दनांक Dated : 16th March, 2015 व.िन.स./ RJ , Sr. PS 4 ITA. No. 2424/M/12

आदे श क. ूितिल प अमे षत/Copy षत of the Order forwarded to :

1. अपीलाथ* / The Appellant

2. ू,यथ* / The Respondent.

3. आयकर आयु6(अपील) / The CIT(A)-

4. आयकर आयु6 / CIT

5. वभागीय ूितिनिध, आयकर अपीलीय अिधकरण, मुंबई / DR, ITAT, Mumbai

6. गाड फाईल / Guard file.

आदे शानुसार/ ार BY ORDER, स,या पत ूित //True Copy// उप/सहायक उप सहायक पंजीकार (Dy./Asstt. Registrar) आयकर अपीलीय अिधकरण, अिधकरण मुंबई / ITAT, Mumbai