Anita Rani, Kaithal V. ITO, Kaithal

ITA 1/CHANDI/2011

• Counselvise Citation: [2011] 134 COUNSELVISE.COM (IT) 5413 (ITAT-CHANDIGARH)
• Duration Of Justice: 4 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-05-2011
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Assessment Year: 2006-2007
• Appeal Filed On: 03-01-2011
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Assessee Lawyers: PERMIL GOEL
• Keywords: Income from undisclosed sources; Salary income
• Section: 143(3); 69; 148

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL CHANDIGARH BENCH SMC, CHANDIGARH BEFORE MS.SUSHMA CHOWLA, JUDICIAL MEMBER ITA NO.1 /CHD/2011 (ASSESSMENT YEAR : 2006-07) ANITA RANI, VS. THE INCOME-TAX OFFICER, KAITHAL. WARD-3, KAITHAL. PAN: AFWPR1906B (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI PERMIL GOEL RESPONDENT BY : SMT.SARITA KUMARI, DR O R D E R THE APPEAL OF THE ASSESSEE IS AGAINST THE ORDER OF THE COMMISSIONER OF INCOME-TAX (A), DATED 30.11.2010 RELATING TO ASS ESSMENT YEAR 2006-07 AGAINST THE ORDER PASSED U/S 143(3) OF THE INCOME-T AX ACT. 2. GROUND NO.1 RAISED BY THE ASSESSEE AGAINST THE P ROCEEDINGS UNDER SECTION 148 OF THE INCOME-TAX ACT WAS NOT PRESSED B Y THE ASSESSEE AND THE SAME IS DISMISSED AS NOT PRESSED. 3. GROUND NO.2 RAISED BY THE ASSESSEE IS AGAINST TH E ADDITION UNDER SECTION 69 OF THE ACT OF RS.3,25,000/- AS UNEXPLAIN ED INVESTMENT IN THE BANK. THE ASSESSING OFFICER DURING THE COURSE OF A SSESSMENT PROCEEDINGS NOTED THE ASSESSEE TO HAVE MADE CASH DE POSITS IN THE BANK ACCOUNT AND THE ASSESSEE WAS ASKED TO EXPLAIN THE S OURCE OF THE SAID CASH DEPOSITS. THE ASSESSEE HAD DEPOSITED RS.25,000/- I N CASH ON 15.9.2005, RS.2 LACS ON 27.9.2005 AND RS.3 LACS ON 22.11.2005. THE ASSESSEE EXPLAINED THAT THE ABOVE SAID AMOUNTS WERE DEPOSIT ED OUT OF RS.3 LACS 2 RECEIVED FOR SALE AGREEMENT OF HIS ANCESTRAL LAND A T SIWAH, TEHSIL PANIPAT. THE ASSESSING OFFICER ASKED THE ASSESSEE TO FURNISH THE COPY OF AGREEMENT OF SALE OF LAND IN ORIGINAL AND ALSO TO P RODUCE THE BUYER OF THE LAND IN QUESTION. IN STEAD OF FURNISHING THE REQUI SITE INFORMATION, ANOTHER REPLY WAS FILED BY THE ASSESSEE DATED 7.9.2 009, IN WHICH IT WAS CONTENDED THAT RS.25,000/- AND RS.2 LACS WERE DEPOS ITED OUT OF ARREARS OF SALARY OF RS.2,46,463/- RECEIVED BY THE ASSESSEE FO R THE YEAR ENDING 31.3.2002. IN RESPECT OF THE DEPOSIT OF RS.3 LACS ON 22.11.2005 IT WAS STATED BY THE ASSESSEE THAT RS.2 LACS WERE WITHDRAW N FROM THE BANK, WHICH WAS REDEPOSITED ALONGWITH RS.1 LAC OUT OF HER SAVINGS FROM SALARY. THE ASSESSING OFFICER NOTED THE ASSESSEE TO HAVE RE CEIVED THE AMOUNT OF ARREARS OF RS.1,47,906/- AND THE BALANCE OF RS.98,5 57/- WAS THE SALARY FOR THE YEAR 2001-02. THE ASSESSING OFFICER FURTH ER NOTED THAT THE SAID AMOUNT OF SALARY AND ARREARS OF SALARY PERTAINED TO THE YEAR ENDING 31.3.2002 AND THE SAID AMTS WERE DEPOSITED IN THE B ANK IN SEPTEMBER, 2005. THE ASSESSING OFFICER CONFRONTED THE ASSESSE E AS TO WHY THE TOTAL DEPOSITS BE NOT TREATED AS INCOME FROM UNDISCLOSED SOURCES BECAUSE OF THE CONTRADICTORY STATEMENTS NOT SUPPORTED BY EVIDE NCE FILED BY THE ASSESSEE. IT WAS EXPLAINED BY THE ASSESSEE THAT TH E BANK ACCOUNT WAS OPENED BY THE ASSESSEE ONLY ON 15.9.2005 AND THE AM OUNT OF ARREARS AND OTHER SALARY ACCOUNT WERE DEPOSITED IN THE BANK WIT HIN FORTNIGHT OF OPENING OF THE BANK ACCOUNT. IN RESPECT OF AGREEME NT FOR SALE OF LAND IT WAS SUBMITTED THAT AS THE DEAL COULD NOT MATERIALIZ E, NO REGISTRATION DEEDS HAVE BEEN MADE UP TO 20.9.2006 AND THE AMOUNT WAS RETURNED BACK ON 9.10.2006. THE ASSESSEE FURNISHED ON RECORD TH E COPY OF FORM NO.10E FOR CLAIMING RELIEF UNDER SECTION 89 OF THE ACT AND FORM NO.16 FOR THE YEAR ENDING 31.3.2002. THE ASSESSING OFFIC ER HELD THE DEPOSIT OF RS.3,25,000/- MADE DURING THE YEAR AS UNEXPLAINED A FTER ALLOWING BENEFIT 3 OF RS.2 LACS WITHDRAWN IN CASH BY THE ASSESSEE AND REDEPOSITED IN THE BANK. 4. BEFORE THE CIT(A) THE CLAIM OF THE ASSESSEE WAS THAT AS A GOVT. SCHOOL TEACHER, THE ASSESSEE HAD RECEIVED THE SALAR Y AND ARREARS OF SALARY ABOUT RS.7 LACS BETWEEN THE YEAR ENDING 31.3 .2002 TO THE DATE OF DEPOSIT IN THE BANK IN SEPTEMBER 2005 AND THE SAID AMOUNT OF RS.3,25,000/- WAS DEPOSITED OUT OF THE SAID SUM OF RS.7 LACS ACCUMULATED BY THE ASSESSEE. IN RESPECT OF THE AGR EEMENT FOR SALE OF THE ANCESTRAL PROPERTY IT WAS EXPLAINED BY THE ASSESSEE BEFORE THE CIT(A) THAT THE AMOUNT OF RS.3 LACS WAS RECEIVED AS ADVANC E BUT THE SAME WAS RETURNED AS THE DEAL COULD NOT MATERIALIZE. THE SA ID AMOUNT WAS CLAIMED TO HAVE BEEN DEPOSITED IN THE BANK DURING THE YEAR UNDER CONSIDERATION, AS THE BANK WAS OPENED IN THE YEAR ITSELF. THE CI T(A) ALLOWED THE BENEFIT OF SAVINGS OUT OF SALARY TO THE EXTENT OF R S.25,000/- AND CONFIRMED THE ADDITION OF RS.3 LACS. 5. THE ASSESSEE IS IN APPEAL AGAINST THE SAID ADDIT ION OF RS.3 LACS. SHRI PERMIL GOEL APPEARED FOR THE ASSESSEE AND SMT. SARITA KUMARI APPEARED ON BEHALF OF THE REVENUE AND PUTFORTH THEI R CONTENTIONS. 6. I HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED T HE RECORD. THE ASSESSEE DURING THE FINANCIAL YEAR 2005-06 HAD OPEN ED SAVING ACCOUNT WITH BANK OF BARODA, KAITHAL ON 15..9.2005. THE AS SESSEE MADE CASH DEPOSITS IN THE SAID ACCOUNT I.E. RS.25,000/- ON 15 .9.2005, RS.2 LACS ON 27.9.2005 AND RS.3 LACS ON 22.11.2005. THE ASSESSE E HAD MADE CASH WITHDRAWALS OF RS.2 LACS ON 15.10.2005 AND THEREAFT ER DD OF RS.2,40,000/- WAS ISSUED ON 19.12.2005. THE EXPLAN ATION OF THE ASSESSEE WITH REGARD TO THE SOURCE OF THE SAID CASH DEPOSITS WAS OUT OF THE ARREARS OF SALARY AND THE SALARY RECEIVED BY THE ASSESSEE F ROM YEAR TO YEAR. THE 4 ASSESSEE WAS EMPLOYED AS A GOVT. TEACHER AND HAD RE CEIVED ARREARS OF SALARY FOR THE FINANCIAL YEAR 2001-02. THE TOTAL A RREARS OF SALARY WAS RS.1,47,906/- AND THE TOTAL SALARY FOR FINANCIAL YE AR 2001-02 WAS RS.98,557/-, THE TOTAL SALARY INCOME FOR THE YEAR B EING 2,46,463/-. THE ASSESSEE HAS ENCLOSED FORM NO.10E IN CONNECTION WIT H THE ARREARS OF SALARY RECEIVED AND ALSO FORM NO.16 EVIDENCING THE TAX DEDUCTION AT SOURCE ON THE SAID SALARY AND ARREARS OF SALARY REC EIVED. THE SAID DOCUMENTS ARE PLACED AT PAGES 7 TO 11 OF THE PAPER BOOK. THE ASSESSEE HAS ALSO ENCLOSED THE SALARY STATEMENT FOR THE FINA NCIAL YEAR 2005-06. IN THE WRITTEN STATEMENT FILED BEFORE ME THE LEARNE D A.R. FOR THE ASSESSEE CLAIMS THAT SHE HAD RECEIVED RS.7 LACS SALARY FOR T HE YEAR ENDING 2002 UPTO 22.11.2005 I.E. RS.2,46,463/-+RS.1,10,000/-+RS .1,15,000/- +1,25,000/- & RS.1,01,396/-. OUT OF THE SUM OF RS .7 LACS RECEIVED AS SALARY WHICH INCLUDES THE ARREARS OF SALARY RS.1,47 ,906/-, THE ASSESSEE CLAIMS TO HAVE MADE THE AFORESAID CASH DEPOSITS IN THE BANK ACCOUNT WHICH WAS OPENED DURING THE FINANCIAL YEAR 2005-06. PRIOR TO THE YEAR UNDER CONSIDERATION THE ASSESSEE CLAIMS THAT SHE WA S NOT MAINTAINING ANY BANK ACCOUNT. INITIALLY, THE ASSESSEE HAD MADE A P LEA BEFORE THE ASSESSING OFFICER THAT THE SOURCE OF THE CASH DEPOS ITS WAS OUT OF THE ADVANCES RECEIVED VIDE AN AGREEMENT TO SALE, WHICH DID NOT MATERIALIZE AND THE MONEY WAS LATER REFUNDED BACK. HOWEVER, TH E ASSESSEE WHEN SHOW CAUSED TO PRODUCE THE EVIDENCE IN RESPECT THER EOF, SHE WAS UNABLE TO PRODUCE THE SAME. AN ALTERNATE PLEA WAS RAISED BY THE LEARNED A.R. FOR THE ASSESSEE AS TO THE SOURCE OF THE SAID CASH PAYMENT BE MADE OUT OF HER SALARY AND ARREARS OF SALARY. IN THE TOTALITY OF THE FACTS AND CIRCUMSTANCES OF THE CASE, I AM OF THE VIEW THAT TH E BENEFIT OF SAVINGS OUT OF THE PAST SALARY AND CURRENT SALARY MERITS TO BE ALLOWED TO THE ASSESSEE. THE SAID CLAIM OF THE ASSESSEE IS BONAFI DE AND IN VIEW THEREOF THERE IS NO MERIT IN THE AFORESAID ADDITION OF RS.3 ,25,000/-, OUT OF WHICH 5 THE CIT(A) HAD ALLOWED CLAIM ONLY TO THE EXTENT OF RS.25,000/-. IN THE ENTIRETY OF THE FACTS AND CIRCUMSTANCES THE ADDITIO N OF RS.3 LACS IS HEREBY DELETED. THE GROUND NO.2 RAISED BY THE ASSE SSEE IS THUS ALLOWED. 7. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS PAR TLY ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 31 ST DAY OF MAY, 2011. SD/- (SUSHMA CHOWLA) JUDICIAL MEMBER DATED : 31 ST MAY, 2011 RATI COPY TO: THE APPELLANT/THE RESPONDENT/THE CIT(A)/TH E CIT/THE DR. TRUE COPY BY ORDER ASSISTANT REGISTRAR, ITAT, CHANDIGARH