Shri Pranav D. Patel, Vadodara V. The Income Tax Officer, Ward-1(2)(4), Vadodara

ITA 1040/AHD/2017

• Counselvise Citation: [2019] 118 COUNSELVISE.COM (IT) 2540 (ITAT-AHMEDABAD)
• Duration Of Justice: 1 year(s) 10 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-03-2019
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2010-2011
• Appeal Filed On: 01-05-2017
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Assessee Lawyers: M J SHAH
• Keywords: Peak credit

Judgement Text

, - IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCH D BEFORE SHRI RAJPAL YADAV, JUDICIAL MEMBER AND SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER ./ ITA NO. 1040/AHD/2017 / ASSESSMENT YEAR: 2010-11 PRANAV D. PATEL 13, PSHPAKUNJ SOCIETY GORWA VADODARA 390 016. PAN : AVQPP 9369 Q VS ITO, WARD-1(2)(4) VADODARA. / (APPELLANT) / (RESPONDENT) ASSESSEE BY : SHRI M.J. SHAH, AR REVENUE BY : SHRI VIRENDRA SINGH, SR.DR / DATE OF HEARING : 06/03/2019 /DATE OF PRONOUNCEMENT : 7/03/2019 O R D E R PER RAJPAL YADAV, JUDICIAL MEMBER : ASSESSEE IS IN APPEAL BEFORE THE TRIBUNAL AGAINST ORDER OF THE LD.CIT(A)- 1, VADODARA DATED 20.2.2017 PASSED FOR THE ASSTT.YEAR 2010-11. 2. THOUGH THE ASSESSEE HAS TAKEN TWO GROUNDS OF APP EAL, BUT HIS GRIEVANCE IS THAT THE LD.CIT(A) HAS ERRED IN CONFIR MING THE ADDITION OF RS.12.50 LAKHS. 3. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE HA S FILED HIS RETURN OF INCOME ON 8.8.2011 DECLARING TOTAL INCOME AT RS.1,2 0,390/-. THE AO GOT INFORMATION THAT THE ASSESSEE HAD SAVING BANK ACCOU NT WITH IDBI, ITA NO.1040 /AHD/2017 - 2 - SABARMATI BRANCH, AHMEDABAD. HE HAS DEPOSITED CASH IN THIS ACCOUNT DURING THE ACCOUNTING YEAR RELEVANT TO THE ASSTT.YE AR 2010-11. THEREFORE, HE RECORDED REASON AND REOPENED THE ASSE SSMENT. THE AO FURTHER FOUND THAT THERE WERE THREE ACCOUNTS MAINTA INED BY THE ASSESSEE WITH DIFFERENT BANKS VIZ. HDFC BANK, BANK OF INDIA AND IDBI BANK. THE AO HAS CONFRONTED THE ASSESSEE WITH REGARD TO T HE DEPOSITS MADE IN IDBI BANK. THE ASSESSEE CONTENDED THAT HE IS A QUA LIFIED COMPUTER ENGINEER AND UNDERTAKES COMPUTER RELATED JOBS, PART ICULARLY, THOSE CONNECTED WITH NETWORKING AND LOCATED IN REMOTE ARE AS. WHILE EXPLAINING SOURCE OF DEPOSITS WITH IDBI BANK, IT WA S CONTENDED THAT HE HAS TAKEN MONEY FROM OTHER FAMILY MEMBERS WHO HAVE AGRICULTURE INCOME, AND THOSE MONIES WERE DEPOSITED IN THE BANK ACCOUNT. THE ASSESSEE HAS PRODUCED COPY OF FORM NO.7/12 BEFORE T HE AO. THE LD.AO DID NOT ACCEPT THE CONTENTIONS OF THE ASSESSEE BY R ECORDING FOLLOWING FINDING: 3.4. THE REPLY FURNISHED BY THE ASSESSEE IS CONSID ERED CAREFULLY. ON PERUSAL OF THE SAVINGS BANK ACCOUNT NO. 40810400000 00347 WITH IDBI BANK, IT WAS NOTICED THAT THE ASSESSEE HAS MADE THE FOLLOWING CASH DEPOSITS IN THIS BANK ACCOUNT:- DATE AMOUNT DEPOSITED IN CASH 25/09/2015 5000 30/10/2009 600000 31/10/2009 600000 30/01/2010 750000 25/02/2010 500000 TOTAL 2455000 IT WAS THE CONTENTION OF THE ASSESSEE THAT IN THE S AVINGS BANK ACCOUNT WITH IDBI BANK, AS THE ASSESSEE WAS PLANNING TO GO ABROAD AND AS ADVISED BY THE CONSULTANT HE HAS STARTED DEPOSITING MONEY IN THE BANK, WITHDRAWING THE SAME AND RE-DEPOSITING THE SAME MON EY AGAIN IN THE BANK TO ESTABLISH THAT THE BANK ACCOUNT IS RUNNING AND OPERATING. IT IS ITA NO.1040 /AHD/2017 - 3 - FURTHER STATED THAT THESE CASH DEPOSITS WERE OUT OF SALE OF AGRICULTURAL PRODUCE BY THE FAMILY MEMBERS. IT WAS FURTHER STATE D THAT THE DEPOSITS MADE IN SAVINGS BANK ACCOUNT WITH HDFC BANK WAS REL ATED TO NETWORKING AND OTHER COMPUTER RELATED JOBS UNDERTAK EN BY THE ASSESSEE, 3.5 IN SUPPORT OF THE CONTENTION OF THE ASSESSEE TH AT THE CASH DEPOSITS WERE MADE OUT OF SALE OF AGRICULTURAL PRODUCE, THE ASSES SEE HAS NOT SUBMITTED ANY PROOF, VIZ., DETAILS OF AGRICULTURAL ACTIVITIES CARRIED OUT, EXPENDITURE INCURRED TOWARDS AGRICULTURAL ACTIVITIES, SALES BIL LS, AMOUNT RECEIVED, AMOUNT SPENT TOWARDS HOUSEHOLD EXPENDITURE AND THE AMOUNT REMAINED WITH THE FAMILY MEMBERS OF THE ASSESSEE. THE ASSESS EE HAS SIMPLY FILED 7/12 EXTRACTS. THEREFORE, THE ASSESEE'S CONTENTION THAT THE CASH DEPOSITED IN THE SAVINGS BANK ACCOUNT WITH IDBI BANK IS OUT O F AGRICULTURAL INCOME IS NOT ACCEPTABLE. THE ASSESEE HAS NOT DISCLOSED AN Y AGRICULTURAL. INCOME IN HIS RETURN OF INCOME FILED. FURTHER, NOBODY WILL WITHDRAW CASH FROM BANK ACCOUNT ONLY FOR RE-DEPOSITING THE SAME IN THE SAME BANK ACCOUNT. IT IS PERTINENT TO MENTION HERE THAT DURING THE ASSESS MENT PROCEEDINGS FOR THE A.Y. 2011-2012, IT WAS SUBMITTED BY THE ASSESSE E THAT THE CASH DEPOSITS WERE MADE OUT OF TRADING ACTIVITY OF AGRIC ULTURAL PRODUCE. HOWEVER, DURING THE PRESENT PROCEEDINGS, IT WAS STA TED BY THE ASSESSEE THAT THE CASH DEPOSITS WERE MADE OUT OF SALES REALI SATION OF AGRICULTURAL PRODUCE. THE ASSESSEE HAS CHANGED THE STAND TAKEN D URING THE A.Y. 2011- 2012. IN A.Y. 2011-2012 ALSO, THE ASSESSING OFFICER HAS NOT ACCEPTED THE ASSESSEE'S CONTENTION AND ADDITION TO HIS TOTAL INC OME HAS BEEN MADE BEING UNEXPLAINED CASH DEPOSITS. IN APPEAL BEFORE T HE ID. CIT [APPEALS] FOR A.Y.2011-2012, IT WAS HELD BY HIM THAT THERE WA S NO DISPUTE THAT THE BANK ACCOUNT WITH IDBI BANK WAS NOT DISCLOSED BY TH E ASSESSEE IN HIS RETURN OF INCOME. THE ASSESSEE HAS NOT PROVED THE S OURCE OF EACH CASH DEPOSIT. HOWEVER, IT WAS DIRECTED TO RESTRICT THE A DDITION ON PEAK CREDIT BASIS. THE DECISION OF THE ID. CIT [APPEALS] WAS NOT ACCEPTED BY' THE DEPARTMENT AND APPEAL BEFORE THE HON. ITAT HAS BEEN FILED. IN THESE CIRCUMSTANCES AND THAT THE ASSESSEE HAS FAILED TO P ROVE WITH CORROBORATIVE EVIDENCE THE SOURCE OF CASH DEPOSITS AGGREGATING TO RS.24,55,000/-MADE IN THE SAVINGS BANK ACCOUNT WITH IDBI BANK, THE SAM E IS ADDED TO HIS TOTAL INCOME U/S.69A OF THE INCOME-TAX ACT, 1961. P ENALTY PROCEEDINGS U/S.271(1)(C) OF THE INCOME-TAX ACT, 1961 ARE INITIAT ED FOR CONCEALING THE PARTICULARS OF INCOME. 4. ON APPEAL, THE LD.CIT(A) CONFIRMED THE ADDITION TO THE EXTENT OF RS.12.50 LAKHS BY HOLDING THAT SIMILAR ADDITIONS HA VE BEEN MADE IN THE ITA NO.1040 /AHD/2017 - 4 - ASSTT.YEAR 2011-12 AND THOSE ADDITIONS HAVE BEEN CO NFIRMED BY THE LD.CIT(A). THE BRIEF FINDING RECORDED BY THE LD.CI T(A) IS WORTH TO NOTE, WHICH READS AS UNDER: 4.3. I HAVE CONSIDERED THE FACTS OF THE CASE, THE SUBMISSION OF THE APPELLANT AND THE AO'S OBSERVATIONS. THE ISSUE INVO LVED IN THE PRESENT CASE HAS ALREADY BEEN DECIDED BY THE CIT(A)-II, BAR ODA IN APPEAL NO.CAB/II-343/13-14 VIDE ORDER DATED 17.07.2014 FOR AY 2011-12 IN APPELLANT'S OWN CASE. THE AO HAS ALSO MENTIONED THI S APPELLATE ORDER IN HIS ASSESSMENT ORDER. HENCE, FOLLOWING THE APPELLAT E ORDER FOR AY 2011- 12, THE AO IS DIRECTED TO TAX THE PEAK CREDIT RS.12 ,05,000/- OF THE CASH DEPOSITS MADE IN THE UNDISCLOSED BANK ACCOUNT OF TH E APPELLANT WITH IDBI BANK DURING THE FY 2009-10. 5. AS A RESULT, THE APPEAL IS PARTLY ALLOWED 5. BEFORE US, THE LD.COUNSEL FOR THE ASSESSEE WAS U NABLE TO CONTROVERT THE FACTUAL FINDING RECORDED BY BOTH THE REVENUE AU THORITIES. THE LD.DR ON THE OTHER HAND CONTENDED THAT ORDER OF THE LD.CI T(A) IN THE ASSTT.YEAR 2011-12 WAS NOT CHALLENGED BY THE ASSESS EE IN FURTHER APPEAL, THEREFORE, IN A WAY, THE ASSESSEE HAS ACCEPTED THE STAND OF THE AO. HE WAS NOT HAVING SUFFICIENT AGRICULTURE INCOME OUT OF WHICH THIS COULD BE STATED THAT THESE DEPOSITS HAVE BEEN MADE. 6. ON DUE CONSIDERATION OF THE ORDER OF THE LD.CIT( A), WE DO NOT FIND ANY MERIT IN THIS APPEAL, BECAUSE EXCEPT MAKING A B ALD STATEMENT THAT SOURCE OF DEPOSITS IS FROM FAMILY MEMBERS, WHO HAVE AGRICULTURE INCOME, THE ASSESSEE FAILED TO PRODUCE ANY MATERIAL TO SUBSTANTIATE THIS ITA NO.1040 /AHD/2017 - 5 - STATEMENT. IN VIEW OF THE ABOVE DISCUSSION, APPEAL OF THE ASSESSEE IS DISMISSED. 7. IN THE RESULT, APPEAL OF THE ASSESSEE IS DISMISS ED. PRONOUNCED IN THE OPEN COURT ON 7 TH MARCH, 2019. SD/- SD/- (PRADIP KUMAR KEDIA) ACCOUNTANT MEMBER (RAJPAL YADAV) JUDICIAL MEMBER