Bombay Tyres Vs ITO (ITAT Mumbai)
Duplicate PAN & Wrong Assessment Nullified – ITAT Mumbai Deletes ₹3.18 Cr Cash Addition on Non-Existent Entity
Assessee’s case arose from an ex parte assessment u/s 144 r.w.s. 144A, wherein AO treated cash deposits of ₹3.18 crore in Federal Bank, Vashi, as unexplained money u/s 69A, besides estimating business income at 8% of total credits.
Assessee contended that these deposits pertained to the proprietary concern “Bombay Tyres” of Shri Rohit Rajgopal Soman (PAN: AYSPS1288G) & not to the PAN AAGCB1604E, which was inadvertently allotted to a non-existent company. The bank account belonged to the individual proprietor & was duly reflected in his audited accounts & return for A.Y. 2017-18, later assessed u/s 147 r.w.s. 143(3) with no addition on this issue.
CIT(A) had remanded the matter to AO for factual verification, but AO failed to reconcile the facts & continued to treat deposits as unexplained.
Before ITAT, Assessee produced bank confirmation from Federal Bank stating that the account belonged to Rohit Rajgopal Soman, & demonstrated full reconciliation between cash sales, debtors’ receipts, & deposits (₹3.26 crore). Tribunal noted that PAN AAGCB1604E represented a company status, but no such company existed on the MCA portal.
