M.Diraviyasamy, Madurai V. ITO, Madurai

CO 101/CHNY/2011

• Counselvise Citation: [2012] 122 COUNSELVISE.COM (IT) 6962 (ITAT-CHENNAI)
• Duration Of Justice: 7 month(s) 24 day(s)
• Appeal Type: Cross Objection
• Pronouncement Date: 10-02-2012
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 07-02-2012
• Assessment Year: 2007-2008
• Appeal Filed On: 16-06-2011
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Assessee Lawyers: V SUBBARAYAN DCIT RETD
• Keywords: Unexplained cash credit; Revised return
• Section: 133A; 131

Judgement Text

IN THE INCOME-TAX APPELLATE TRIBUNAL CHENNAI A BENCH, CHENNAI. BEFORE SHRI N.S. SAINI, ACCOUNTANT MEMBER & SHRI GEORGE MATHAN, JUDICIAL MEMBER I.T.A. NO. 885/MDS/2011 ASSESSMENT YEAR: 2007-08 THE INCOME TAX OFFICER, WARD I (1), MADURAI. VS. SRI M. DIRAVIASAMY, 6B, WEST VADAMPOKKI STREET, MADURAI 625 001. [PAN: AASPD2827Q] (APPELLANT) (RESPONDENT) C.O.NO.101/MDS/2011 [IN I.T.A. NO. 885/MDS/2011] ASSESSMENT YEAR: 2007-08 SRI M. DIRAVIASAMY, 6B, WEST VADAMPOKKI STREET, MADURAI 625 001. VS. THE INCOME TAX OFFICER, WARD I (1), MADURAI. (APPELLANT) (RESPONDENT) REVENUE BY : SHRI SHAJI P. JACOB, ADDL. CIT ASSESSEE BY : SHRI V. SUBBARAYAN, DCIT (RETD.) DATE OF HEARING : 07.02.2012 DATE OF PRONOUNCEMENT : 10.02.2012 ORDER PER N.S. SAINI, ACCOUNTANT MEMBER THIS IS AN APPEAL FILED BY THE REVENUE AND THE CRO SS OBJECTION FILED BY THE ASSESSEE AGAINST THE ORDER OF THE LD. CIT(A) I, MADURAI DATED 01.02.2011 PASSED IN ITA NO.0190/09-10 IN ASSESSMENT YEAR 2007 -08. SHRI SHAJI P. JACOB, ADDL. CIT REPRESENTED ON BEHALF OF THE REVEN UE AND SHRI V. SUBBARAYAN, DCIT (RETD.) REPRESENTED ON BEHALF OF T HE ASSESSEE. 2. THE SOLE ISSUE INVOLVED IN THE PRESENT APPEAL I S THAT THE LD. CIT(A) I.T.A. I.T.A. I.T.A. I.T.A. NO. NO. NO. NO.885 885885 885/ // /M/ M/M/ M/11 1111 11 & & & & C.O. NO. 101/M/11 C.O. NO. 101/M/11 C.O. NO. 101/M/11 C.O. NO. 101/M/11 2 ERRED IN HOLDING THAT AN AMOUNT OF ` .18,40,601/- DEPOSITED IN THE BANK ACCOUNT OF THE ASSESSEE WERE REFLECTED IN THE BOOKS OF ACCOUNT OF CREDITORS NAMELY SHRI R.P. BALAKRISHNAN AND OTHERS EXCEPT ` .54,085/- AND THEREBY DELETING THE BALANCE AMOUNT OF ADDITION. 3. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE ORDERS OF LOWER AUTHORITIES AND MATERIALS AVAILABLE ON RECORD. THER E WAS A SURVEY CARRIED OUT AT THE BUSINESS PREMISES OF THE ASSESSEE UNDER SECT ION 133A ON 21.02.2008. DURING THE COURSE OF SURVEY, IT WAS SEE N THAT THE ASSESSEE WAS HAVING SAVING ACCOUNT NO. 335102010904626 WITH UNIO N BANK OF INDIA, MADURAI MAIN BRANCH. IN THE PREVIOUS YEAR, RELEVANT TO THE ASSESSMENT YEAR 2007-08, THE ASSESSEE MADE CASH DEPOSIT IN THE BANK ACCOUNT ON SEVERAL DATES AND TOTAL OF SUCH DEPOSITS WAS ` .19,15,601/-. IN REPLY TO THE SHOW CAUSE NOTICE, THE ASSESSEE EXPLAINED TO THE ASSESSI NG OFFICER THAT THIS WAS AN ACCOMMODATION PROVIDED BY THE ASSESSEE DUE TO IG NORANT DEVOTION TO HIS SCHOOL DAY FRIEND MR. R.P. BALAKRISHNAN, WHO IS DOI NG BUSINESS NEARBY. MR. BALAKRISHNAN USED TO DISCOUNT THE CHEQUES ISSUED BY THE ASSESSEE AND DEPOSIT THE AMOUNT ON THE DUE DATES SUCH CHEQUES HA VE BEEN ISSUED ONE DAY PRIOR TO THE DATE OF DEPOSIT. THUS, THE PRIOR D ATED CHEQUES HAVE BEEN DISCOUNTED AND TAKEN CREDIT BY HIM AND THAT NO CASH WAS INVOLVED. THE ASSESSEE ADMITTED BEFORE THE ASSESSING OFFICER THAT OUT OF THE DEPOSIT MADE IN THE BANK, ` .75,000/- WAS UNEXPLAINED CREDIT AND FILED A REVISE D RETURN INCLUDING THE SAME IN HIS INCOME. THE ASSESSING OFF ICER OBSERVED THAT I.T.A. I.T.A. I.T.A. I.T.A. NO. NO. NO. NO.885 885885 885/ // /M/ M/M/ M/11 1111 11 & & & & C.O. NO. 101/M/11 C.O. NO. 101/M/11 C.O. NO. 101/M/11 C.O. NO. 101/M/11 3 DURING THE COURSE OF SURVEY, IT WAS FOUND THAT THE ASSESSEE HAD NOT RECORDED THE ABOVE TRANSACTIONS IN THE BOOKS OF ACCOUNT. THE ASSESSING OFFICER DID NOT ACCEPT THE EXPLANATION OF THE ASSESSEE AND TREA TED THE ENTIRE DEPOSIT AS UNEXPLAINED INCOME OF THE ASSESSEE AND AFTER REDUCI NG THE INCOME OF ` .75,000/-, SHOWN BY THE ASSESSEE IN THE REVISED RET URN, MADE AN ADDITION OF ` .18,40,601/- TO THE INCOME OF THE ASSESSEE. 4. IN APPEAL BEFORE THE LD. CIT(A), THE LD. AR OF THE ASSESSEE PRODUCED BOOKS OF ACCOUNT IN RESPECT OF SHRI R.P. BALAKRISHN AN, M/S. R.P.R.P. BALAKRISHNAN & SONS AND M/S. SELVAKUMAR STEEL CORPO RATION AND CLAIMED THAT THE AMOUNT IN QUESTION WAS RECEIVED FROM THE S AID THREE PERSONS. THE LD. CIT(A), AFTER VERIFYING THE ACCOUNT OBSERVED TH AT ALL THE TRANSACTIONS ARE REFLECTED IN THE BOOKS OF ACCOUNT OF THE ABOVE PERS ONS EXCEPT ` .54,085/- AS DETAILED BY HIM IN HIS ORDER. SINCE THE ASSESSEE HA S OFFERED ADDITIONAL INCOME OF ` .75,000/- IN THE REVISED RETURN, THAT WILL TAKE CAR E OF DEPOSIT OF ` .54,085/- NOT REFLECTED IN THE ACCOUNT AND NO FURTH ER ADDITION IS CALLED FOR AND DELETED THE ADDITION OF ` .18,40,601/- MADE BY THE ASSESSING OFFICER. 5. BEING AGGRIEVED BY THE ORDER OF THE LD. CIT(A), THE REVENUE IS IN APPEAL BEFORE US. 6. THE LD. DR RELIED ON THE ORDER OF THE ASSESSING OFFICER, WHEREAS, THE LD. AR OF THE ASSESSEE SUPPORTED THE ORDER OF THE L D. CIT(A). 7. THE LD. CIT(A) CALLED FOR A REMAND REPORT FROM THE ASSESSING OFFICER, WHO, IN THE REMAND REPORT HAS STATED AS UNDER: I.T.A. I.T.A. I.T.A. I.T.A. NO. NO. NO. NO.885 885885 885/ // /M/ M/M/ M/11 1111 11 & & & & C.O. NO. 101/M/11 C.O. NO. 101/M/11 C.O. NO. 101/M/11 C.O. NO. 101/M/11 4 TO VERIFY THIS ISSUE, A SUMMON U/S 131 ISSUED TO S HRI R.P. BALAKRISHNAN ON 29.09.2010 TO APPEAR AT MY OFFICE O N 05.10.2010. IN RESPONSE TO THIS SUMMONS, SHRI R.P. BALAKRISHNAN AP PEARED ON 05.10.2010 AND A STATEMENT RECORDED FROM HIM. IN HI S STATEMENT, HE OLD THAT HE HAS RECEIVED CHEQUES FROM HIS FRIENDS SHRI M. DIRAVIASAMY ON VARIOUS DATES FOR HIS BUSINESS ACTIVITIES AND ALSO FOR HIS FAMILY BUSINESS. HE DISCOUNTED THESE CHEQUES IN TAMILNADU MERCANTILE BANK ACCOUNT AND USED FOR HIS BUSINESS. AFTER ONE OR TWO DAYS HE DEPOSITED THE CASH IN SHRI M. DIRAVIASAMYS BANK ACCOUNT THROUGH HIS S TAFFS MOSTLY THROUGH SHRI JANARDHANAN. HE ALSO CONFIRMED THAT TH E SIGNATURES IN THE PAY IN SLIP OF SHRI M. DIRAVIASAMYS ACCOUNT IN UNI ON BANK OF INDIA ARE HIS STAFFS SIGNATURES. THUS, IT IS SEEN FROM THE ABOVE THAT BEFORE THE ASS ESSING OFFICER SHRI R.P. BALAKRISHNAN IN HIS STATEMENT UNDER SECTION 131 ADM ITTED OF HAVING DEPOSITED THE AMOUNT IN THE ASSESSEES BANK ACCOUNT AND THEREFORE, THE SOURCE OF DEPOSIT STANDS EXPLAINED. 8. FURTHER, WE FIND THAT THE LD. DR COULD NOT CONT ROVERT THE FINDING OF THE LD. CIT(A) THAT ALL CASH DEPOSITS MADE BY THE ASSES SEE IN HIS BANK ACCOUNT WITH UNION BANK OF INDIA, MADURAI WERE RECEIVED FRO M THE THREE PERSONS AND ARE REFLECTED IN THE BOOKS OF ACCOUNT OF THE THREE PERSONS NAMELY SHRI R.P. BALAKRISHNAN, M/S. R.P.R.P. BALAKRISHNAN & SONS AND M/S. SELVAKUMAR STEEL CORPORATION, WHOSE BOOKS OF ACCOUNTS WERE PRO DUCED BY THE LD. AR OF THE ASSESSEE BEFORE THE LD. CIT(A) EXCEPT FOR ` .54,085/- AND SINCE THE ASSESSEE DISCLOSED ADDITIONAL INCOME OF ` .75,000/- IN THE REVISED RETURN OF INCOME, THIS DIFFERENCE SHALL TAKE CARE OF THE DIFF ERENCE AMOUNT OF ` .54,085/- NOT REFLECTED IN THE BOOKS OF ACCOUNT. THEREFORE, W E DO NOT FIND ANY GOOD AND JUSTIFIABLE REASON TO INTERFERE WITH THE ORDER OF THE LD. CIT(A). IT IS I.T.A. I.T.A. I.T.A. I.T.A. NO. NO. NO. NO.885 885885 885/ // /M/ M/M/ M/11 1111 11 & & & & C.O. NO. 101/M/11 C.O. NO. 101/M/11 C.O. NO. 101/M/11 C.O. NO. 101/M/11 5 CONFIRMED AND THE GROUND RAISED BY THE REVENUE IS D ISMISSED. 9. COMING TO THE CROSS OBJECTION, THE LD. AR OF TH E ASSESSEE SUBMITTED THAT HE IS WITHDRAWING THE CROSS OBJECTION FILED BY THE ASSESSEE AND MADE AN ENDORSEMENT TO THIS EFFECT IN FORM NO.36A. ACCORDIN GLY, THE CROSS OBJECTION OF THE ASSESSEE STANDS DISMISSED AS WITHDRAWN. 10. NO OTHER POINT HAS BEEN URGED BY THE REVENUE E XCEPT THE ABOVE POINT. 11. IN THE RESULT, THE APPEAL OF THE REVENUE AND T HE CROSS OBJECTION OF THE ASSESSEE ARE DISMISSED. ORDER PRONOUNCED IN THE COURT ON 10.02.2012. SD/- SD/- (GEORGE MATHAN) JUDICIAL MEMBER (N.S.SAINI) ACCOUNTANT MEMBER CHENNAI, DATED, THE 10.02.2012 VM/- TO: THE ASSESSEE//A.O./CIT(A)/CIT/D.R.