G.V.Bhaskar, CHENNAI V. ITO, CHENNAI

ITA 1002/CHNY/2016

• Counselvise Citation: [2017] 130 COUNSELVISE.COM (IT) 7536 (ITAT-CHENNAI)
• Duration Of Justice: 11 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-03-2017
• Appeal Filed By: Assessee
• Bench Allotted: A
• Assessment Year: 2008-2009
• Appeal Filed On: 15-04-2016
• Court: TRIBUNAL
• Department Lawyers: SHIVA SRINIVAS JT
• Keywords: Unexplained cash credit
• Section: 143(3); 69

Judgement Text

, , IN THE INCOME-TAX APPELLATE TRIBUNAL A BENCH, CHE NNAI , ! ' # $' # % . &' , ( ! )* BEFORE SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER & SHRI DUVVURU RL REDDY, JUDICIAL MEMBER ./ I T.A. NO. 1002/MDS/2016 / ASSESSMENT YEAR :2008-09 G.V.BASKAR, NO.5, SOMASUNDARAM STREET, GEORGE TOWN, CHENNAI 600 001. [PAN: AAGPG 9329J] VS. THE ITO, NON CORPORATE WARD 16(2), CHENNAI-34 ( +, /APPELLANT ) ( -.+, / RESPONDENT ) / APPELLANT BY : SHRI SATISH KUMAR, C.A / RESPONDENT BY : SHRI SHIVA SRINIVAS, JT. CIT / DATE OF HEARING : 04.01.2017 /DATE OF PRONOUNCEMENT : 15.03.2017 / / O R D E R PER CHANDRA POOJARI, ACCOUNTANT MEMBER: THIS APPEAL FILED BY THE ASSESSEE DIRECTED AGAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS)-4 DATED 22.01. 2016 (CIT(A)) FOR SHORT) PASSED UNDER SECTION 143(3) OF THE INCOME TA X ACT, 1961 [ACT IN SHORT], FOR THE ASSESSMENT YEAR (AY) 2008-09. I.T.A. I.T.A. I.T.A. I.T.A. NO NONO NO. .. .1002 1002 1002 1002/M /M/M /MDS DSDS DS/ // /201 201201 2016 66 6 2 2. THE ASSESSEE RAISED THE GROUNDS AS FOLLOWS: 1. THE FIRST ISSUE IS PERTAINING TO THE DISALLOWANC E OF RS. 3,63,000/- CLAIMED TO HAVE BEEN PAID TO ICICI BANK ON ACCOUNT OF THE INTEREST ON THE HOUSING LOAN RAISED BY THE APPELLANT FROM ICICI BANK. IT IS NOTICED FROM THE ASSESSMENT ORDER THAT THE ASSESSEE HAD FAI LED TO SUBSTANTIATE THIS CLAIM BEFORE THE ASSESSING OFFICE R. 2. THE OTHER ISSUE WAS PERTAINING TO THE CASH DEPOS ITS OF RS. 11,69,000/- IN THE HDFC BANK ACCOUNT NUMBER 0500161 0023613. SINCE THE ASSESSEE HAD FAILED TO SUBSTANTIATE THE S OURCES OF THOSE CASH DEPOSITS WITH ANY DOCUMENTARY EVIDENCES. THE TREATED THE SAME AS UNEXPLAINED CASH CREDIT U/S. 69 OF THE ACT AND ADDED BACK TO THE INCOME OF THE ASSESSEE. 3. THE BRIEF OF THE CASE ARE THAT THE ASSESSEE FILE D A RETURN OF INCOME FOR THE ASSESSMENT YEAR 2008-09 ON 31.07.2008 ELECTRICA LLY ADMITTED TOTAL INCOME OF RS.8,44,552/-. THE ASSESSMENT CONFIRMED U /S. 143(3) ON 21.12.2010 LATER THE CASE WAS REOPENED TO BRING TO TAX THE CASE CLAIM OF RS.1,81,506 TOWARDS INTEREST AND AS THE LOAN IS TAK EN JOINTLY WITH HIS WIFE. IN THE COURSE OF RE-ASSESSMENT THE AO MADE AN ADDITION OF RS.11,69,000/- TOWARDS UNEXPLAINED BANK DEPOSITS WITH HDFC BANK-DL F RAMAPURAM BRANCH, CHENNAI A/C NO.05001610023613 SINCE THE ASS ESSEE WAS UNABLE TO EXPLAIN THE SOURCE OF DEPOSITS. THE ASSESSEE CA RRIED ON THE APPEAL TO CIT(A). EVEN BEFORE CIT(A), ASSESSEE NOT ABLE TO E XPLAIN THE SOURCE OF DEPOSIT IN THE ACCOUNTS. FURTHER, IN THE COURSE OF PROCEEDINGS CIT(A) CAME TO KNOW THAT ASSESSEE ALSO HAVE ONE MORE BANK ACCOU NT CANARA BANK BEARING A/C NO.0906101030146 WHEREIN THERE IS A DEP OSIT OF RS. 9,99,127/- FOR THE ASSESSEE ALSO NOT ABLE TO EXPLAIN THE SOURC E OF DEPOSIT AFTER I.T.A. I.T.A. I.T.A. I.T.A. NO NONO NO. .. .1002 1002 1002 1002/M /M/M /MDS DSDS DS/ // /201 201201 2016 66 6 3 CONFRONTING THE SAME TO THE ASSESSEE THE ENHANCEMEN T OF ASSESSMENT TO THE TUNE OF RS. 9,99,127/-. AGAINST THIS, THE ASS ESSEE IS IN APPEAL BEFORE US. 4. THE LD. AR BEFORE US SUBMITTED THAT THE ASSESSEE DEPOSITED THIS AMOUNT FROM THE LOAN REPAID BY ONE MR. J.RAM OF RS. 5.69 LAKHS AND RS.6 LACK THROUGH ADVANCE RECEIVED FROM MR. RAMUVELU, WH O IS THE ASSESSEES FRIEND ON SALE OF REMOVAL PROPERTY AND AS SUCH THER E CANNOT BE ADDITION TOWARDS ENHANCEMENT DEPOSITS AT RS.11.69 LAKHS FURT HER REGARDING THE DEPOSIT OF CANARA BANK AT RS.9,91,279/- THAT THE AS SESSEE RECEIVED REPAYMENT OF LOAN BY ASSESSEES BROTHER 3.75 LAKHS AND REPAYMENT OF LOAN FROM HIS BROTHER-IN-LAW OF RS. 5.03 LAKHS AND FURTH ER LD. AR SUBMITTED THAT THE INTER BANK TRANSACTIONS TO THE TURN OF RS.5.23 LAKHS IF HE CONSIDER ALL THESE SOURCES ALONG WITH THE SALARY DRAWN BY THE AS SESSEE OF RS.14 LAKHS, THERE CANNOT BE ANY NEGOTIABLE DEPOSIT AND PRAYED T HAT THE ASSESSEE READY TO SUBSTANTIATE THIS BEFORE LOWER AUTHORITIES AND S OUGHT AN OPPORTUNITY BEFORE THE LOWER AUTHORITIES. THE LD. DR COUNTERING OF LD . ASSESSEE HE HAS SUBMITTED THAT THE LOWER AUTHORITIES HAVE GIVEN AMP LE OPPORTUNITIES TO THE ASSESSEE. HOWEVER, THE ASSESSEE FAILED TO EXPLAIN THE DEPOSITS INTO THOSE BANK ACCOUNTS. HENCE, HE REQUESTED THE BENCH TO CO NFIRM THE ADDITION. 5. WE HAVE HEARD THE BOTH THE PARTIES, AND PERUSED THE MATERIAL ON RECORD. ACCORDING TO LD. DR, ASSESSEE RECEIVED LOA N REPAYMENT FROM G.RAMU AND, ASSESSEE BROTHER-IN-LAW AND ALSO FROM A SSESSEE BROTHER IN I.T.A. I.T.A. I.T.A. I.T.A. NO NONO NO. .. .1002 1002 1002 1002/M /M/M /MDS DSDS DS/ // /201 201201 2016 66 6 4 ADDITION TO THE ASSESSEE ALSO AVAILED LOAN OF RS.6 LAKHS FROM ONE MR. M.RAMUVELU AND SOUGHT AN OPPORTUNITY TO EXPLAIN TH E SAME. IN OUR OPINION AS SEEN FROM THE RECORDS BY AO NOT EXAMINE THE PART IES CONCERN TO KNOW THE CORRECT POSITION OF THE FACTS OF THE CASE. HEN CE, IN THE INTEREST OF JUSTICE WHEREIN THAT IT IS APPROPRIATE TO REMIT THE ISSUE I N DISPUTE TO THE FILE OF AO TO A FRESH CONSIDERATION. ACCORDINGLY WE SET ASIDE TH E ORDER TO LOWER AUTHORITIES MANAGE THE ISSUE IN DISPUTE TO THE FILE OF AO FOR FRESH CONSIDERATION. 6. IN THE RESULT, APPEAL IS ALLOWED FOR STATISTICAL PURPOSE. ORDER PRONOUNCED ON THE 15 TH MARCH, 2017 AT CHENNAI. SD/- SD/- (DUVVURU RL REDDY) JUDICIAL MEMBER (CHANDRA POOJARI) ACCOUNTANT MEMBER CHENNAI, DATED, THE 15.03.2017 EDN / KSSUNDARAM !' #$ %$ /COPY TO: 1. /APPELLANT, 2. / RESPONDENT, 3. & ( )/CIT(A), 4. & /CIT, 5. $'( ) /DR & 6. (* + /GF.