ITO, CHENNAI V. Kavitha Garg, CHENNAI

ITA 1101/CHNY/2014

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 7723 (ITAT-CHENNAI)
• Duration Of Justice: 1 year(s) 10 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-03-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 08-02-2016
• Assessment Year: 2009-2010
• Appeal Filed On: 29-04-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: A B KOLI
• Assessee Lawyers: G ALEXANDER
• Keywords: Tax effect
• Section: 68

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, CHENNAI . . . , . !'# ! , % !& BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER ./ ITA NOS.1952, 1953 & 1101/MDS/2014 ( )( / ASSESSMENT YEARS : 2008-09 & 2009-10 & C.O. NO.62/MDS/2014 (IN I.T.A. NO.1101/MDS/2014) ( )( / ASSESSMENT YEAR : 2009-10 THE INCOME TAX OFFICER. BUSINESS WARD VI(3), CHENNAI - 600 034. V. MS. KAVITHA GARG, NO.19, NEW SOLIAPPAN STREET, OLD WASHERMENPET, CHENNAI - 600 021. PAN : AJCPK 7494 B ( APPELLANT) ( RESPONDENT & CROSS-OBJECTOR) +, - . / APPELLANT BY : SH. A.B. KOLI, JCIT /0+, - . / RESPONDENT BY : SH. G. ALEXANDER, ADVOCATE 1 - 2% / DATE OF HEARING : 08.02.2016 3') - 2% / DATE OF PRONOUNCEMENT : 18.03.2016 / O R D E R PER N.R.S. GANESAN, JUDICIAL MEMBER: THE REVENUE HAS FILED APPEALS AGAINST THE RESPECT IVE ORDERS OF THE COMMISSIONER OF INCOME TAX (APPEALS)-II, CHE NNAI, PERTAINING TO ASSESSMENT YEARS 2008-09 AND 2009-10. THE 2 I.T.A. NOS.1952, 1953 & 1101/MDS/14 C.O. NO.62/MDS/14 ASSESSEE HAS FILED CROSS-OBJECTION AGAINST THE ORDE R OF THE CIT(APPEALS) FOR ASSESSMENT YEAR 2009-10. WE HEARD THE APPEALS AND CROSS-OBJECTION TOGETHER AND DISPOSING OF THE S AME BY THIS COMMON ORDER. 2. THERE WAS A DELAY OF 6 DAYS IN FILING THE CROSS- OBJECTION BY THE ASSESSEE. THE ASSESSEE HAS FILED A PETITION FO R CONDONATION OF DELAY. WE HAVE HEARD THE LD. COUNSEL AND THE LD. D .R. WE FIND THAT THERE WAS SUFFICIENT CAUSE FOR NOT FILING THE CROSS-OBJECTION BEFORE THE STIPULATED TIME. THEREFORE, WE CONDONE THE DELAY AND ADMIT THE CROSS-OBJECTION. 3. WE FIND THAT THE TAX EFFECT IN THE APPEALS FILED BY THE REVENUE IS LESS THAN ` 10 LAKHS. IN VIEW OF THE CBDTS CIRCULAR NO.21/2015 DATED 10.12.2015 INSTRUCTING ITS OFFICER S TO WITHDRAW ALL THE APPEALS PENDING BEFORE THE ITAT WHERE THE TAX E FFECT IS LESS THAN ` 10 LAKHS, THIS TRIBUNAL IS OF THE CONSIDERED OPINIO N THAT THE REVENUES APPEALS ARE NOT MAINTAINABLE BEFORE THIS TRIBUNAL. ACCORDINGLY, THE APPEALS OF THE REVENUE STAND DISMI SSED. 3 I.T.A. NOS.1952, 1953 & 1101/MDS/14 C.O. NO.62/MDS/14 3. COMING TO THE CROSS-OBJECTION OF THE ASSESSEE, T HE ONLY ISSUE RAISED BY THE ASSESSEE IS WITH REGARD TO THE ADDITION MADE UNDER SECTION 68 OF THE INCOME-TAX ACT, 1961 (IN SH ORT 'THE ACT'). 4. WE HAVE HEARD THE LD.COUNSEL FOR THE ASSESSEE AN D THE LD. DEPARTMENTAL REPRESENTATIVE. THE ASSESSING OFFICER FOUND THAT THERE WERE UNEXPLAINED CASH DEPOSITS OF ` 19,50,000/- MADE BY THE ASSESSEE DURING THE YEAR UNDER CONSIDERATION AND TH EREFORE, HE MADE ADDITION OF ` 19,50,000/- IN THIS RESPECT. THE CIT(APPEALS), AFTER CONSIDERING THE EXPLANATION OF THE ASSESSEE FOUND THAT THE ASSESSEE HAS EXPLAINED THE SOURCE OF ` 16,10,389/- AND ALSO DECLARED AN INCOME OF ` 70,100/-. THE CIT(APPEALS) FOUND THAT CASH DEPOSIT OF ` 2,69,511/- WAS NOT EXPLAINED BY THE ASSESSEE. THE ONLY CONTENTION OF THE ASSESSEE BEFORE THIS TRIBUNAL IS THAT THE CASH DEPOSIT WAS EXPLAINED IN THE CASH FLOW STATEMENT. HOWEVER, NO MATERIAL WAS AVAILABLE ON RECORD TO SUBSTANTIATE TH E CLAIM MADE IN THE CASH FLOW STATEMENT. THE APPEAL FILED BY THE R EVENUE WITH REGARD TO DELETION OF ADDITION OF ` 16,10,389/- IS DISMISSED BY THIS TRIBUNAL IN THE EARLIER PART OF THIS ORDER SINCE TH E TAX EFFECT IS LESS THAN ` 10 LAKHS. IN THE ABSENCE OF ANY MATERIAL TO SUBSTA NTIATE THE CLAIM OF THE ASSESSEE IN THE CASH FLOW STATEMENT TO THE EXTENT OF 4 I.T.A. NOS.1952, 1953 & 1101/MDS/14 C.O. NO.62/MDS/14 ` 2,69,511/-, THIS TRIBUNAL DO NOT FIND ANY REASON TO INTERFERE WITH THE ORDER OF THE LOWER AUTHORITY AND THEREFORE, THE ADD ITION OF ` 16,10,389/- IS CONFIRMED. 5. IN THE RESULT, THE APPEALS OF THE REVENUE AND TH E CROSS- OBJECTION OF THE ASSESSEE ARE DISMISSED. ORDER PRONOUNCED ON 18 TH MARCH, 2016 AT CHENNAI. SD/- SD/- (. !'# ! ) ( . . . ) (A. MOHAN ALANKAMONY) (N.R.S. GANESAN) % / ACCOUNTANT MEMBER /JUDICIAL MEMBER /CHENNAI, 5 /DATED, THE 18 TH MARCH, 2016. KRI. - /267 87)2 /COPY TO: 1. +, /APPELLANT 2. /0+, /RESPONDENT 3. 1 92 () /CIT(A)-II, CHENNAI 4. 1 92 /CIT-VII, CHENNAI 5. 7: /2 /DR 6. ;( < /GF.