Sri P Karunakar Alva, Bangalore V. Income Tax Officer, Ward-15(1), Bangalore

ITA 1104/BANG/2014

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 95261 (ITAT-BANGALORE)
• Duration Of Justice: 1 year(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-09-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 08-09-2015
• Assessment Year: 2006-2007
• Appeal Filed On: 26-08-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: G RAMESHA J
• Assessee Lawyers: S RANGANATH
• Keywords: Unexplained expenditure; Additional evidence
• Section: 69C

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH : BANGALORE BEFORE SHRI VIJAY PAL RAO, JUDICIAL MEMBER (SMC) ITA NO. 1104/ BANG/20 14 (ASSESSMENT YEAR: 2006 - 07 ) SHRI P.KARUNAKAR ALVA, NO.3156, 12 TH MAIN, HAL II STAGE, INDIRANAGAR, BANGALORE - 56 0080. PAN:AARPA8334N VS. APPELLANT INCOME - TAX OFFICER, WARD 15(1), BANGALORE. RESPONDENT APPELLANT BY: SHRI S.RANGANATH, CA RESPONDENT BY: SHRI G. RAMESHA, JCIT(DR) DATE OF HEARING : 08/09/2015 DATE OF PRONOUNCEMENT: 24 / 0 9 / 2015. O R D E R THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER DATED 23/6/2014 OF THE CIT(A) - V, BANGALORE, FOR THE ASSESSMENT YEAR 2006 - 07. 2. THE ASSESSEE HAS RAISED VARIOUS GROUNDS IN THIS APPEAL. HOWEVER, THE ONLY ISSUE ARISES FOR MY CONSIDERATION AND ADJUDICATION IS WHETHER THE CIT(A) IS JUSTIFIED IN CONFIRMING THE DISALLOWANCE MADE BY THE AO ON ACCOUNT OF CREDIT CARD PAYMENT AMOUNTING TO RS.4,35,511/ - FOR WANT OF SOURCE OF PAYMENT. ITA NO . 1104 /BANG/201 4 SHRI P.KARUNAKAR ALVA PAGE 2 OF 5 3. THE ASSESSEE IS AN INDIVIDUAL A ND FILED HIS RETURN OF INCOME ON 3/7/2006. DURING THE COURSE OF ASSESSMENT PROCEEDINGS, THE AO NOTED THAT THE ASSESSEE HAD MADE PAYMENT FOR CREDIT CARD ISSUED BY CITY BANK AND DEBIT CARD ISSUED BY THE CORPORATION BANK TO THE TUNE OF RS.6,35,511/ - AND 4,29 ,160/ - RESPECTIVELY. THE AO MADE ADDITION OF THE SAID AMOUNT OF RS.6,35,511/ - AS UNEXPLAINED EXPENDITURE U/S 69C OF THE IT ACT. 4. AGGRIEVED BY THE ACTION OF THE AO, THE ASSESSEE FILED AN APPEAL BEFORE THE CIT(A) AND SUBMITTED THAT THE ASSESSEE WAS ACTIN G AS A CONSULTANT TO M/S. VIJAY KRISHNA ESTATES PVT. LTD. ( VKEP FOR SHORT) RUN BY THE FAMILY MEMBERS OF THE ASSESSEE. THE ASSESSEE WAS ADVISED TO INCUR THE PRESCRIBED BUSINESS DEVELOPMENT EXPENDITURE ON BEHALF OF VKEP . THUS, THE ASSESSEE SUBMITTED THAT T HE CREDIT CARD DUE AMOUNTING TO RS.6,35,511/ - WAS DISCHARGED BY V KEP THROUGH THEIR CURRENT ACCOUNT NO.925/100 MAINTAINED WITH SYNDICATE BANK, MANGALORE. IN SUPPORT OF HIS EXPLANATION, THE ASSESSEE ALSO FURNISHED THE DETAILS AND EVIDENCE SHOWING THE PAYMEN T MADE BY VKEP IN RESPECT OF THE CREDIT CARD OF THE ASSESSEE. THE CIT(A) DID NOT ACCEPT THE EVIDENCE PRODUCED BY THE ASSESSEE BEING ADDITIONAL EVIDENCE FOR WANT OF PROPER APPLICATION OF THE SAME. ACCORDINGLY, THE CIT(A) CONFIRMED THE ADDITION MADE BY TH E AO. 5. NOW, THE LEARNED AR OF THE ASSESSEE HAS SUBMITTED THAT THE ASSESSEE HAS SHOWN THE STATEMENT REGARDING PAYMENT OF ITA NO . 1104 /BANG/201 4 SHRI P.KARUNAKAR ALVA PAGE 3 OF 5 DUES OF CREDIT CARD WAS MADE FROM THE BANK ACCOUNT OF VKEP FROM ITS BANK ACCOUNT. HOWEVER, THE CIT(A) HAS REFUSED TO ACCEPT THE EVIDE NCE ON THE GROUND THAT THE ASSESSEE HAS NOT MOVED A PROPER APPLICATION. THUS, THE LEARNED AR OF THE ASSESSEE HAS SUBMITTED THAT THE ADDITIONAL EVIDENCE FILED BY THE ASSESSEE BEFORE THE CIT(A) MAY BE ADMITTED AND THE MATTER MAY BE REMITTED TO THE RECORD OF THE AO FOR EXAMINATION OF THE EVIDENCE FILED BY THE ASSESSEE IN SUPPORT OF THE CLAIM. THE ASSESSEE HAS ALSO FILED AN APPLICATION FOR ADMISSION OF THE ADDITIONAL EVIDENCE ALONG WITH ADDITIONAL EVIDENCE FROM PAGES 4 TO 10 OF THE PAPER BOOK. 6. ON THE OTHER HAND, LEARNED DEPARTMENTAL REPRESENTATIVE HAS VEHEMENTLY OPPOSED ADMISSION OF THE ADDITIONAL EVIDENCE AND SUBMITTED THAT THE ASSESSEE HAS FAILED TO PRODUCE ANY RECORD DESPITE DUE OPPORTUNITY WAS GIVEN BY THE AO IN SUPPORT OF THE CLAIM. HE HAS RE LIED UPON THE ORDERS OF THE AUTHORITIES BELOW. 7. HAVING CONSIDERED THE RIVAL SUBMISSIONS AS WELL AS THE RELEVANT MATERIAL ON RECORD, IT IS NOTE D THAT THE ASSESSEE PRODUCED ADDITIONAL EVIDENCE IN THE FORM OF CERTIFICATE FROM VKEP , COPY OF RETURN OF SM T.VASANTHI K ALVA, WIFE OF THE ASSESSEE TO SHOW THAT THE EXPENSES IN QUESTION WERE INCURRED BY THE ASSESSEE FOR AND ON BEHALF OF THE SAID COMPANY AND THE CREDIT CAR D DUES WERE REPAID FROM THE ACCOUNT OF THE SAID COMPANY. THE LEARNED AR OF THE ASSESSEE HAS SUBMITTED THAT THAT THE EVIDENCE PRODUCED ITA NO . 1104 /BANG/201 4 SHRI P.KARUNAKAR ALVA PAGE 4 OF 5 BY THE ASSESSEE IS NECESSARY TO ESTABLISH THE CLAIM OF THE ASSESSEE. THEREFORE, WE FIND THAT PRIMA FACIE IT APPEARS THAT THE EXPENSES INCURRED BY THE ASSESSEE THROUGH HIS CREDIT CARD HAVE BEEN REPAID BY VKEP AS P ER THE CERTIFICATE ISSUED BY THE SAID COMPANY AS WELL AS THE DETAILS OF THE CHEQUE WHEREBY THE CREDIT CARD DUES WERE PAID FROM THE ACCOUNTS OF THE SAID COMPANY. THUS, IN THE FACTS AND CIRCUMSTANCES OF THE CASE, WE ADMIT THE ADDITIONAL EVIDENCE FILED BY TH E ASSESSEE IS ADMITTED AND THIS ISSUE IS SET ASIDE TO THE RECORD OF THE AO FOR CONSIDERATION AND EXAMINATION OF THE ADDITIONAL EVIDENCE FILED BY THE ASSESSEE AND TO DECIDE THE ISSUE AFTER GIVING AN OPPORTUNITY OF HEARING TO THE ASSESSEE. 8. THE OTHER GROUNDS RAISED BY THE ASSESSEE ARE CONSEQUENTIAL TO THE ISSUE AND THE SAME ARE ACCORDINGLY ALSO SET ASIDE TO THE RECORD OF THE AO IN SIMILAR TERMS. 9. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. PRON OUNCED IN THE OPEN COURT ON 24 TH SEPTEMBER , 201 5 . S D/ - ( VIJAY PAL RAO ) JUDICIAL MEMBER EKSRINIVASULU ITA NO . 1104 /BANG/201 4 SHRI P.KARUNAKAR ALVA PAGE 5 OF 5 COPY TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR, ITAT, BANGALORE. 6. GUARD FILE BY ORDER ASSISTANT REGISTRAR INCOME - TAX APPELLATE T RIBUNAL BANGALORE