Ranjana Bhope, Hyderabad V. ACIT, Circle-9(1), Hyderabad

ITA 1020/HYD/2013

• Counselvise Citation: 102022514 RSA 2013
• Duration Of Justice: 1 year(s) 2 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-08-2014
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2009-2010
• Appeal Filed On: 26-06-2013
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: MOHAN REDDY
• Assessee Lawyers: S RAMA RAO
• Keywords: Unexplained cash credit; Corroborative evidences
• Section: 234B

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES A : HYDERABAD BEFORE SHRI P.M. JAGTAP, ACCOUNTANT MEMBER AND SHRI SAKTIJIT DEY, JUDICIAL MEMBER ITA.NO.1020/HYD/2013 ASSESSMENT YEAR 2009-10 RANJANA BHOPE HYDERABAD PAN NO.AHOPB 7869D VS. ACIT C IRCLE - 9(1) HYDERABAD (APPELLANT) (RESPONDENT) FOR ASSESSEE : MR. S. RAMA RAO FOR REVENUE : MR. MOHAN REDDY DATE OF HEARING : 14.08.2014 DATE OF PRONOUNCEMENT : 28.08.2014 ORDER PER SAKTIJIT DEY, J.M. THIS APPEAL OF THE ASSESSEE IS DIRECTED AGAINST TH E ORDER DATED 29.3.2013 OF THE CIT(A)-VI HYDERABAD PERTAINI NG TO THE ASSESSMENT YEAR 2009-10. 2. THE ONLY ISSUE IN THE PRESENT APPEAL IS IN RESPE CT OF ADDITION OF RS.23,98,198/- MADE BY THE ASSESSING OF FICER AS UNEXPLAINED CASH CREDIT AND CONFIRMED BY THE CIT(A) . 3. BRIEFLY THE FACTS RELATING TO THE ISSUE IN DISPU TE ARE, ASSESSEE IS AN INDIVIDUAL DERIVING INCOME FROM HOUS E PROPERTY AND CONSULTANCY IN REAL ESTATE. FOR THE ASSESSMENT YEAR UNDER DISPUTE, ASSESSEE FILED HER RETURN OF INCOME ON 31. 7.2009 DECLARING TOTAL INCOME OF RS.4,27,532/-. DURING TH E SCRUTINY ASSESSMENT PROCEEDING AS MENTIONED BY THE ASSESSING OFFICER IN THE ASSESSMENT ORDER, THE ASSESSEE WAS SPECIFICA LLY ASKED TO SUBMIT ALL HER BANK ACCOUNT STATEMENTS AND TO EXPLA IN THE CREDITS APPEARING IN THE SAID ACCOUNT. IN RESPONSE TO THE 2 ITA.NO.1020/HYD/2013 RANJANA BHOPE, HYDERABAD QUERY MADE BY THE ASSESSING OFFICER, THE ASSESSEE S UBMITTED ACCOUNT STATEMENT PERTAINING TO LOANS TAKEN FROM BA NK OF BARODA ONLY. FURTHER, SHE STATED THAT SHE WAS NOT HAVING ANY SAVINGS BANK ACCOUNT EITHER SINGLY OR JOINTLY IN AN Y BANK. HOWEVER, FROM THE INFORMATION OBTAINED FROM AXIS BA NK, CHARMINAR BRANCH, THE ASSESSING OFFICER CAME TO KNO W THAT THE ASSESSEE WAS HAVING A SAVINGS BANK ACCOUNT JOINTLY WITH HER HUSBAND SHRI SANJAY KUMAR BHOPE WHEREIN DURING THE PERIOD FROM 1.4.2008 TO 31.3.2009, AN AMOUNT OF RS.23,98,1 38/- WAS DEPOSITED IN CASH. AS THE ASSESSEE COULD NOT EXPLA IN THE SOURCES FOR SUCH DEPOSIT, THE ASSESSING OFFICER TRE ATED THE ENTIRE AMOUNT OF RS.23,98,138/- CREDITED TO THE BAN K ACCOUNT AS UNEXPLAINED CASH CREDIT AND ADDED IT TO THE INCO ME OF THE ASSESSEE FOR THE IMPUGNED ASSESSMENT YEAR. 4. THE ASSESSEE CHALLENGED THE ADDITION MADE BY THE ASSESSING OFFICER IN AN APPEAL PREFERRED BEFORE THE CIT(A). BEFORE THE CIT(A) ASSESSEE EXPLAINED THE SOURCE OF SUCH DEPOSITS AS UNDER: A) CASH BALANCE AVAILABLE AS ON 31.3.2006 RS. 1,86,600 B) AMOUNT AVAILABLE FROM PROFITS FOR THE PERIOD 31.03.2007 RS. 1,50,000 C) AMOUNT AVAILABLE FROM PROFITS FOR THE PERIOD 31.03.2007 RS. 1,50,000 D) AMOUNT AVAILABLE FROM OUT OF REAL ESTATE ACTIVITY DURING THE YEAR UNDER CONSIDERATION RS. 72,600 E) AMOUNT AVAILABLE FROM OUT OF RENTAL INCOME DERIVED DURING THE YEAR UNDER CONSIDERATION RS. 1,00,000 F) AMOUNT AVAILABLE FROM OUT OF PROFIT DERIVED FROM SALE OF CRACKERS DURING THE YEAR UNDER CONSIDERATION RS. 1,94,200 G) AMOUNT REPAID BY SHANTHI FIRE WORKS RS. 1,00,000 5. SO FAR AS THE REMAINING AMOUNT IS CONCERNED, THE ASSESSEE STATED THAT AN AMOUNT OF RS.2,50,000/- WAS 3 ITA.NO.1020/HYD/2013 RANJANA BHOPE, HYDERABAD CONTRIBUTED BY HER FATHER-IN-LAW AND AMOUNT OF RS.1 2 LAKHS WAS AVAILABLE FROM SALE OF GOLD ORNAMENTS. TO SUBS TANTIATE SUCH CLAIM, THE ASSESSEE SUBMITTED COPIES OF THE RE TURN OF INCOME ALONG WITH STATEMENT OF INCOME FOR THE ASSES SMENT YEARS 2007-08, 2008-09 AND 2009-10. THE CIT(A) AFT ER CONSIDERING THE SUBMISSIONS MADE BY THE ASSESSEE EX PLAINING THE SOURCE OF DEPOSITS IN THE LIGHT OF FACTS AND MA TERIALS AVAILABLE ON RECORD NOTED THAT THOUGH THE ASSESSEE WAS HAVING REGULAR INCOME OVER THE YEARS FROM RENT AND PROFIT, BUT IT IS NOT CLEAR WHETHER SUCH INCOMES WERE RECEIVED IN CASH OR CHEQUE. THE CIT(A) FELT THAT WHEN THE ASSESSEE IS RESIDING IN A CITY AND WAS EARNING INCOME FROM VARIOUS SOURCES, THERE IS N O REASON WHY NO ACCOUNT WAS MAINTAINED BY HER. THE CIT(A) A LSO NOTED THAT THE CASH DEPOSITS IN THE BANK ACCOUNT WAS UTIL IZED TOWARDS REGISTRATION OF A PROPERTY PURCHASED BY HER WHOSE REGISTERED VALUE IS MUCH BELOW THE SRO VALUE AND TH E SOURCES FOR ACTUAL PURCHASE CONSIDERATION WERE NOT CLEARLY EXPLAINED WITH THE HELP OF THE SOURCES FROM OTHER BANK ACCOUN TS. THE CIT(A) THEREFORE CONCLUDED THAT UNDER THE CIRCUMSTA NCES, IT BECOMES DIFFICULT TO BELIEVE THAT ALL THE OPENING B ALANCES CARRIED FORWARD AND BALANCES OF PROFITS AND INCOME WERE ARE USED FOR DEPOSITING THE CASH ON TWO OR THREE OCCASI ONS THAT TOO IN QUICK SUCCESSIONS. THE CIT(A) FURTHER OPINED TH AT THERE IS ALSO NO CORRELATION BETWEEN THE SOURCES INDICATED/E XPLAINED AND THE AMOUNTS DEPOSITED INTO BANK ACCOUNTS ON T HREE DIFFERENT DATES. SO FAR AS ASSESSEES EXPLANATION FOR THE REMAINING AMOUNT VIZ. RS.2,50,000/- CONTRIBUTED BY FATHER-IN- LAW AND RS.12,00,000/- FROM SALE OF GOLD, THE CIT(A ) OBSERVED THAT THE EXPLANATION OF THE ASSESSEE WAS NOT SUPPOR TED BY ANY EVIDENCE OR CONFIRMATION. CONSIDERING THE AFORESAI D FACTUAL ASPECT AND APPLYING THE RATIO LAID DOWN BY THE HON BLE SUPREME COURT IN CASE OF SUMATI DAYAL VS. CIT 214 I TR 801, 4 ITA.NO.1020/HYD/2013 RANJANA BHOPE, HYDERABAD THE CIT(A) FINALLY CONCLUDED THAT THE CASH DEPOSITS MADE INTO THE BANK ACCOUNT CONSTITUTE UNEXPLAINED CREDITS OF THE ASSESSEE IN ABSENCE OF VALID EXPLANATION. 6. THE LD. A.R. MOSTLY REITERATING THE SUBMISSIONS MADE BEFORE THE CIT(A) SUBMITTED THAT THOUGH THE ASSESSE E HAS NOT MAINTAINED ANY BOOKS OF ACCOUNTS FOR THE IMPUGNED ASSESSMENT YEAR BUT NEVERTHELESS THE RETURN OF INCO ME FILED FOR THE ASSESSMENT YEAR UNDER DISPUTE AS WELL AS THE PR ECEDING ASSESSMENT YEAR WOULD ESTABLISH THE FACT THAT THE A SSESSEE WAS HAVING ENOUGH INCOME TO GENERATE SURPLUS WHICH WAS AVAILABLE WITH THE ASSESSEE FOR DEPOSITING IN THE BANK ACCOUN T. THE LD. A.R. REFERRING TO THE CASH FLOW STATEMENT AS ON 31. 3.2006, A COPY OF WHICH IS AT PAGE 9 OF THE PAPER BOOK, SUBMI TTED THAT ASSESSEE WAS HAVING ENOUGH CASH BALANCE WITH HER TO GENERATE THE SURPLUS FOR DEPOSITING IN BANK ACCOUNT. IT WAS THEREFORE SUBMITTED THAT AS THE ASSESSEE HAS EXPLAINABLE SOUR CE FOR THE CASH DEPOSITS MADE INTO THE BANK ACCOUNTS, ADDITION MADE TOWARDS UNEXPLAINED CASH CREDIT IS NOT JUSTIFIED. 6. THE LD. D.R. ON THE OTHER HAND STRONGLY SUPPORTI NG THE ORDER OF THE CIT(A) SUBMITTED THAT THE ASSESSEE NEI THER BEFORE THE ASSESSING OFFICER NOR BEFORE THE CIT(A) HAS BEE N ABLE TO SUBSTANTIATE THE SOURCE OF DEPOSITS MADE INTO THE B ANK ACCOUNT WITH SUPPORTING EVIDENCE. HENCE, IN THE GI VEN CIRCUMSTANCES, THE ADDITION CONFIRMED BY THE CIT(A) IS JUSTIFIED. 7. WE HAVE CONSIDERED THE SUBMISSIONS OF THE PARTIE S AND PERUSED THE MATERIALS ON RECORD AS WELL AS ORDERS O F THE REVENUE AUTHORITIES ON THIS ISSUE. AS CAN BE SEEN FROM THE 5 ITA.NO.1020/HYD/2013 RANJANA BHOPE, HYDERABAD DISCUSSIONS MADE BY THE ASSESSING OFFICER IN THE AS SESSMENT ORDER, THE ASSESSEE HAS INITIALLY COMPLETELY DENIED OF HAVING ANY SAVINGS BANK ACCOUNT EITHER SINGLY OR JOINTLY. HOWEVER, WHEN THE ASSESSING OFFICER CAME INTO THE POSSESSION OF THE SAVINGS BANK ACCOUNT IN AXIS BANK, WHEREIN CASH DEP OSITS TO THE EXTENT OF RS.23,98,138/- WAS FOUND, THE ASSESSE E COULD NOT EXPLAIN THE SOURCE OF SUCH DEPOSIT. ADMITTEDLY, AS SESSEE HAS NOT MAINTAINED ANY CASH BOOK. AS CAN BE SEEN FROM THE SOURCE OF DEPOSITS EXPLAINED BY ASSESSEE, REFERRED TO BY LD. CIT(A) IN PARA 5.2 OF THE ORDER, DEPOSITS OF RS. 9, 53,400 WAS STATED TO BE OUT OF CASH BALANCE AVAILABLE AS ON 31 .3.2006 AND AMOUNT AVAILABLE FROM PROFITS EARNED FROM BUSINESS ACTIVITIES. HOWEVER, IN ABSENCE OF CASH BOOK IT IS DIFFICULT TO ASCERTAIN AVAILABILITY OF CASH ON THE DATES DEPOSITS WERE MAD E INTO THE BANK ACCOUNTS. IT IS ALSO HIGHLY IMPROBABLE THAT CA SH BALANCE OF 31/03/2006 WOULD STILL BE AVAILABLE WITH THE ASS ESSEE FOR DEPOSITING IN BANK ACCOUNT AFTER THREE YEARS. SO F AR AS THE AMOUNT OF RS.2,50,000/- CLAIMED TO HAVE BEEN CONTRI BUTED BY HER FATHER-IN-LAW AND RS. 12 LAKHS FROM SALE OF GOL D ORNAMENTS, THE FINDING OF THE CIT(A) IS THAT THE AS SESSEE HAS NOT PRODUCED EITHER ANY CONFIRMATION OR ANY OTHER E VIDENCE TO SUBSTANTIATE SUCH CLAIM. EVEN BEFORE US ALSO, THE ASSESSEE HAS NOT BEEN ABLE TO SUBSTANTIATE THE RECEIPT OF TH E AFORESAID AMOUNTS WITH ANY CORROBORATIVE EVIDENCE. WHEN SUBS TANTIAL CASH DEPOSITS WERE FOUND TO HAVE BEEN MADE IN THE B ANK ACCOUNT, BURDEN IS ON THE ASSESSEE TO PROVE THE SOU RCE OF SUCH DEPOSITS BY FURNISHING ADEQUATE SUPPORTING EVIDENCE . IN THE PRESENT CASE, THOUGH THE ASSESSEE HAS MADE A FEEBLE ATTEMPT TO EXPLAIN THE SOURCE OF DEPOSITS BUT IN ABSENCE OF ANY SUPPORTING EVIDENCE ASSESSEES EXPLANATION CANNOT B E ACCEPTED. THUS, ON APPRECIATION OF ENTIRE FACTS AND MATERIALS ON RECORD, WE ARE OF THE VIEW, ASSESSEE HAVING FAIL ED TO PROVE 6 ITA.NO.1020/HYD/2013 RANJANA BHOPE, HYDERABAD THE SOURCE OF CASH DEPOSITS IN TO THE BANK ACCOUNT ADEQUATELY AND CONCLUSIVELY, ADDITION MADE BY THE AO NEEDS TO BE SUSTAINED. ACCORDINGLY, WE DO SO BY DISMISSING THE GROUNDS RAISED BY THE ASSESSEE. 8. THE ASSESSEE HAS ALSO CHALLENGED THE LEVY OF INT EREST U/S 234A AND 234B OF THE ACT. AT THE TIME OF HEARING LEARNED AR HAS NOT MADE ANY ARGUMENT IN THIS REGARD. EVEN OT HERWISE ALSO LEVY OF INTEREST U/S 234A & 234B OF THE ACT BE ING MANDATORY AND CONSEQUENTIAL IN NATURE, THERE IS NO NEED TO INTERFERE WITH THE SAME. 9. IN THE RESULT, ASSESSEES APPEAL IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 28 TH AUGUST , 2014. SD/- SD/- (P.M. JAGTAP) (SAKTIJIT DEY) ACOUNTANT MEMBER JUDICIAL MEMBER HYDERABAD, DATE 28 TH AUGUST, 2014 VG/SPS COPY TO : 1. RANJANA BHOPE, C/O SRI S. RAMA RAO, ADVOCATE, FL AT NO.102, SHRIYAS ELEGANCE, H.NO.3-6-643, ST.NO.9, HIMAYATNA GAR, HYDERABAD-500 029. 2. ACIT CIRCLE-9(1), HYDERABAD 3. THE CIT(A)-VI, HYDERABAD 4. THE ACIT, CIRCLE-(1), HYDERABAD 5. D.R. ITAT, A BENCH, HYDERABAD.