The ITO, Ward-7(2), Ahmedabad V. Smt Kinjalben R.Thakkar, Ahmedabad

ITA 1036/AHD/2011

• Counselvise Citation: 103620514 RSA 2011
• Duration Of Justice: 7 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-12-2011
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Assessment Year: 2000-2001
• Appeal Filed On: 08-04-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: KRISHNA MURARI
• Keywords: Unexplained cash credit; Unexplained investment; Gift; Additional evidence; Valuation report
• Section: 153A; 132

Judgement Text

- 1 - IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCH D AHMEDABAD BEFORE S/SHRI D.K.TYAGI, JM AND A. K. GARODIA, AM. INCOME-TAX OFFICER, WARD-7(2), AHMEDABAD. VS. SMT. KINJALBEN R. THAKKAR, 1-SUKSHMANI VALLABH SOCIETY, MANEKBAG HALL ROAD, SATELLITE, AHMEDABAD. (APPELLANT) .. (RESPONDENT) APPELLANT BY :- SHRI KRISHNA MURARI, CIT, DR RESPONDENT BY:- SHRI ASEEM L. THAKKAR, AR DATE OF HEARING :2/12/2011 DATE OF PRONOUNCEMENT :2/12/2001 O R D E R PER D. K. TYAGI, JUDICIAL MEMBER . THIS IS AN APPEAL FILED BY THE REVENUE AGAINST THE ORDER OF LD. CIT(A) DATED 25.1.2011 WHEREIN FOLLOWING GROUND HAS BEEN RAISED :- (1) THE LD. CIT(A) HAS ERRED IN LAW AND ON FACTS IN DEL ETING THE ADDITION OF RS.16,71,439/- BEING UNDISCLOSED INVEST MENT IN CONSTRUCTION OF RESIDENTIAL HOUSE. 2. BRIEFLY STATED THE FACTS OF THE CASE ARE THAT AN ACTION U/S 132 OF THE IT ACT WAS CONDUCTED AT THE RESIDENTIAL PREMISES OF THE ASSESSEE ALONG ITA NO.1036/AHD/2011 ASST. YEAR :2000-01 ITA NO.1036/AHD/2011 ASST. YEAR 2000-01 2 WITH DHARAMDEV BUILDERS GROUP OF CASES ON 9/2/2005. THEREAFTER NOTICE U/S 153A OF THE IT ACT WAS ISSUED. IN RESPONSE TO I T, THE ASSESSEE HAD FILED THE RETURN OF INCOME ON 13/7/2006 DISCLOSING TOTAL INCOME AT RS.66,960/-. THE ASSESSMENT ORDER WAS PASSED ON 29/12/2006, DETE RMINING THE TOTAL TAXABLE INCOME AT RS.22,60,240/-. IN THE ASSESSMENT THE AO HAD MADE FOLLOWING ADDITIONS :- 1) UNEXPLAINED CASH CREDITS INTRODUCED AS GIFTS IN CAPITAL ACCOUNT RS.2,00,0 00/- 2) SALE OF JEWELLERY RS.21,838/- 3) CASH CREDITS FROM GOPINATH INDUS. RS.2,5 0,000/- 4) TOTAL DEPOSIT IN BANK A/C RS.50,000/- RS.5,21,838 /- 5) UNDISCLOSED INVESTMENTS IN CONSTRUCTION OF RESIDENTIAL HOUSE RS.16,71,439/- ------------ -------- TOTAL RS.21,93,277/- 3. THE ASSESSEE CHALLENGED THE ADDITION OF RS.5,21, 838/- AND RS.16,71,439/- BEFORE LD. CIT(A). THE ASSESSEE ALSO RAISED SOME OTHER GROUNDS BEFORE HIM. THE ISSUE BEFORE US IS ONLY REG ARDING DELETION OF RS.16,71,439/-. DURING THE APPELLATE PROCEEDINGS TH E ASSESSEE FILED ADDITIONAL EVIDENCE IN THE FORM OF GIFT DECLARATION S AND LOAN CONFIRMATIONS. THE SAME WERE SENT TO THE AO. IN TUR N, THE PRESENT AO. I.E. THE ITO WD-7(2) HAD SUBMITTED THE REMAND REPORT VID E LETTER DATED 21/4/2009. THE SAME WAS CONFRONTED WITH THE ASSESSE E. THE LD. COUNSEL OF ITA NO.1036/AHD/2011 ASST. YEAR 2000-01 3 THE ASSESSEE HAD FILED FURTHER SUBMISSION ON 20/01/ 2011. THE LD. COUNSEL OF THE ASSESSEE SUBMITTED BEFORE THE LD. CIT(A) THA T THE ISSUE OF ALLEGED UNEXPLAINED INVESTMENT IN RESIDENTIAL PROPERTY IN Q UESTION HAS BEEN JOINTLY OWNED WITH HER HUSBAND RAKESH H. THAKKAR. T HE ADDITION OF RS.16,71,439/- HAD BEEN MADE IN THE CASE OF HER HUS BAND ALSO. THE MATTER HAD TRAVELED TO HONBLE ITAT IN THE CASE OF THE HUS BAND AND THE ADDITION HAD BEEN DELETED. COPY OF ORDER DATED 30.11.2010 PA SSED BY THE TRIBUNAL WAS ALSO PLACED BEFORE THE LD. CIT(A). A PERUSAL OF THE SAME WOULD REVEAL THAT THE APPEAL OF THE REVENUE HAD BEEN DISM ISSED. THE FACTS BEING IDENTICAL IN THE CASE OF THE ASSESSEE THE ADDITION DESERVED TO BE DELETED. THE LD. CIT(A) AFTER CONSIDERING ALL THE CONTENTION S OF AO AND THE SUBMISSIONS OF THE ASSESSEE DELETED THE ADDITION OF RS.16,71,439/- BY OBSERVING AS UNDER :- 11. AS REGARD TO THE ADDITION OF RS.16,71,439/-, A DDED AS UNEXPLAINED INVESTMENT IN THE RESIDENTIAL PROPERTY, SIMILAR ADD ITION WAS ALSO MADE IN THE CASE OF SHRI RAKESH S. THAKKAR HUSBAND OF THE A PPELLANT. THE MATTER HAS TRAVELED UPTO HONBLE ITAT, AHMEDABAD IN THE CA SE OF HUSBAND OF THE APPELLANT. THE HONBLE ITAT VIDE ITS ORDER DATE D 30.11.2010 IN THE CASE OF SHRI RAKESH S. THAKKAR HAS DECIDED THE ISSU E AS UNDER :- 12.1 WE HAVE HEARD BOTH THE SIDES ON THE CONTROVE RSY INVOLVED AND CAREFULLY GONE THROUGH THE RELEVANT PORTION OF THE IMPUGNED ORDER OF LD. CIT(A). IT IS PERTINENT TO NOTE THAT T HE ADDITION WAS MADE PURELY ON THE BASIS OF DVOS REPORT. THE SAID VALUATION REPORT IS ONLY ADVISORY IN NATURE AS HELD BY THE LD . CIT(A). IN ABSENCE OF ANY OTHER MATERIAL, WE ARE OF THE VIEW T HAT NO ADDITION IN THIS REGARD CAN BE MADE. WE, THEREFORE, INCLINE TO UPHOLD THE ORDER OF LD. CIT(A). RESULTANTLY, GROUNDS NO.5 & 6 FOR THE ASST. ITA NO.1036/AHD/2011 ASST. YEAR 2000-01 4 YEAR 2000-01 AND GROUND NO.7 FOR THE ASSESSMENT YEA R 2001-02 OF REVENUES APPEALS ARE REJECTED. RESPECTFULLY FOLLOWING THE DECISION OF THE HONBLE ITAT (SUPRA), THE ADDITION OF RS.16,71,439/- IS DELETED. AGGRIEVED BY THIS ORDER OF LD. CIT(A), THE REVENUE IS IN APPEAL BEFORE THE TRIBUNAL. 4. THE LD. DR SUPPORTED THE ORDER OF ASSESSING OFFI CER WHEREAS THE LD. COUNSEL OF THE ASSESSEE RELIED ON THE ORDER OF LD. CIT(A) AND REITERATED THE SUBMISSIONS MADE BEFORE THE LD. CIT(A). HE SUBM ITTED THAT LD. CIT(A) HAS RIGHTLY DELETED THE ADDITION. HIS ORDER MAY KINDLY BE UPHELD. 5. AFTER CONSIDERING THE RIVAL SUBMISSIONS AND GOIN G THROUGH THE ORDERS OF LOWER AUTHORITIES, WE FIND THAT THE ADDIT ION OF RS.16,71,439/- HAS BEEN MADE BY AO FOR UNEXPLAINED INVESTMENT IN T HE RESIDENTIAL PROPERTY WHICH IS CO-OWNED BY THE ASSESSEE ALONG WI TH HER HUSBAND MR. RAKESH H. THAKKAR. SIMILAR ADDITION OF RS.16,71,439 /- WAS ALSO MADE IN THE HANDS OF MR. THAKKAR. IN THE CASE OF MR. THAKKA R THE ADDITION SO MADE WAS DELETED BY THE TRIBUNAL VIDE ITS ORDER DAT ED 30.11.2010. SINCE THE RELIEF HAS BEEN GIVEN BY THE LD. CIT(A) BY FOLL OWING THE ORDER OF THE TRIBUNAL IN THE CASE OF MR. RAKESH H. THAKKAR, WE F IND NO NEED TO INTERFERE WITH THE ORDER OF LD. CIT(A). THIS GROUND OF REVENUE IS DISMISSED. ITA NO.1036/AHD/2011 ASST. YEAR 2000-01 5 6. IN THE RESULT, THE APPEAL FILED BY THE REVENUE I S DISMISSED. ORDER WAS PRONOUNCED IN OPEN COURT ON 2/12/2011. SD/- SD/- (A. K. GARODIA) (D.K. TYAGI) ACCOUNTANT MEMBER JUDICI AL MEMBER AHMEDABAD, MAHATA/- COPY OF THE ORDER FORWARDED TO :- 1. THE ASSESSEE. 2. THE REVENUE. 3. THE CIT(APPEALS)- 4. THE CIT CONCERNS. 5. THE DR, ITAT, AHMEDABAD 6. GUARD FILE. BY ORDER, DEPUTY / ASSTT.REGISTRAR ITAT, AHMEDABAD 1.DATE OF DICTATION 2/12/2011. 2.DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE TH E DICTATING MEMBER.OTHER MEMBER 5/12/2011 3.DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR. P.S./P.S. 4.DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE DICTATING MEMBER FOR PRONOUNCEMENT.. 5.DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR .P.S./P.S 6.DATE ON WHICH THE FILE GOES TO THE BENCH CLERK .. 7.DATE ON WHICH THE FILE GOES TO THE HEAD CLERK . 8.THE DATE ON WHICH THE FILE GOES TO THE ASSTT. REG ISTRAR FOR SIGNATURE ON THE ORDER 9.DATE OF DESPATCH OF THE ORDER..