ITO, CHENNAI V. T.G.S.Mahesh, CHENNAI

ITA 1104/CHNY/2016

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 4888 (ITAT-CHENNAI)
• Duration Of Justice: 11 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-04-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Next Hearing Date: 15-03-2017
• Assessment Year: 2011-2012
• Appeal Filed On: 25-04-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: A V SREEKANTH
• Assessee Lawyers: S DEEPAC A
• Section: 68

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, CHENNAI . . . , .. ' #$, & '( BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI D.S. SUNDER SINGH, ACCOUNTANT MEMBER ./ ITA NO.1104/MDS/2016 * +* / ASSESSMENT YEAR : 2011-12 THE INCOME TAX OFFICER, CORPORATE WARD 4(3), CHENNAI - 600 034. V. SHRI T.G.S. MAHESH, NO.145, SECOND MAIN ROAD, RANGA REDDY GARDENS, NEELANKARAI, CHENNAI - 600 041. PAN : AFYPM 6140 E (-./ APPELLANT) (/0-./ RESPONDENT) -. 1 2 / APPELLANT BY : SHRI A.V. SREEKANTH, JCIT /0-. 1 2 / RESPONDENT BY : MS. S. DEEPA, CA ' 1 3& / DATE OF HEARING : 15.03.2017 45+ 1 3& / DATE OF PRONOUNCEMENT : 20.04.2017 / O R D E R PER N.R.S. GANESAN, JUDICIAL MEMBER: THIS APPEAL OF THE REVENUE IS DIRECTED AGAINST T HE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS) 8, CHENN AI, DATED 29.01.2016 AND PERTAINS TO ASSESSMENT YEAR 2011-12. 2. THE FIRST ISSUE ARISES FOR CONSIDERATION IS ADDI TION OF ` 15,40,000/-. 2 I.T.A. NO.1104/MDS/16 3. SHRI A.V. SREEKANTH, THE LD. DEPARTMENTAL REPRES ENTATIVE, SUBMITTED THAT THERE WERE CASH DEPOSITS OF ` 36,48,500/- IN THE SAVINGS BANK ACCOUNT MAINTAINED BY THE ASSESSEE WIT H STATE BANK OF INDIA, T. NAGAR BRANCH. THE ASSESSING OFFICER C ALLED UPON THE ASSESSEE TO EXPLAIN THE SOURCE FOR MAKING SUCH DEPO SITS. THE ASSESSEE EXPLAINED BEFORE THE ASSESSING OFFICER THA T HE AND HIS WIFE EARNED AGRICULTURAL INCOME ON AN AVERAGE OF ` 35,00,000/- EACH YEAR FOR MORE THAN 5 TO 6 YEARS. ACCORDING TO THE LD. D.R., THE ASSESSEE FILED COPIES OF THE DOCUMENTS TO PROVE THE HOLDING OF AGRICULTURAL LAND APART FROM A CERTIFICATE FROM VIL LAGE ADMINISTRATIVE OFFICER. THE ASSESSING OFFICER REJECTED THE CLAIM OF THE ASSESSEE ON THE GROUND THAT THE ASSESSEE COULD NOT EXPLAIN E ACH ENTRY IN THE BANK PASSBOOK. THE LD. D.R. SUBMITTED THAT HE IS P LACING RELIANCE ON THE OBSERVATION MADE BY THE ASSESSING OFFICER AN D THE GROUNDS OF APPEAL FILED BY THE REVENUE BEFORE THIS TRIBUNAL . 4. ON THE CONTRARY, MS. S. DEEPA, THE LD. REPRESENT ATIVE FOR THE ASSESSEE, SUBMITTED THAT THE ASSESSEE AND HIS WIFE WAS HOLDING AGRICULTURAL LANDS. THE COPIES OF THE DOCUMENTS AR E AVAILABLE AT PAGES 90 TO 113 OF THE PAPER-BOOK FILED BY THE ASSE SSEE. THE ASSESSEE HAS ALSO FILED RETURNS OF INCOME FOR THE A SSESSMENT YEARS 3 I.T.A. NO.1104/MDS/16 2008-09 TO 2010-11 AT PAGES 61 TO 90 OF THE PAPER-B OOK. ACCORDING TO THE LD. REPRESENTATIVE, THE ASSESSEE AND HIS WIF E WERE HOLDING AROUND 36 ACRES OF LAND IN VILPATTI VILLAGE AT KODA IKANAL. THE ASSESSEE HAS ALSO HOLDING ANCESTRAL AGRICULTURE PRO PERTIES AT KOVUR VILLAGE AND VUYYUR VILLAGE. IN VIEW OF THE ABOVE, ACCORDING TO THE LD. REPRESENTATIVE, THE CIT(APPEALS) HAS RIGHTLY DE LETED THE ADDITION MADE BY THE ASSESSING OFFICER TO THE EXTENT OF `1 5,40,000/-. 5. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS ON EITH ER SIDE AND PERUSED THE RELEVANT MATERIAL AVAILABLE ON RECORD. ADMITTEDLY, THERE WERE DEPOSITS OF ` 36,48,500/- IN THE SAVINGS BANK ACCOUNT MAINTAINED BY THE ASSESSEE WITH STATE BANK OF INDIA , T. NAGAR BRANCH. THE ASSESSING OFFICER FOUND THAT THE ASSES SEE COULD NOT EXPLAIN THE SOURCE OF DEPOSITS, THEREFORE, HE MADE AN ADDITION OF ` 36,48,500/-. THE CIT(APPEALS) FOUND THAT THE ASSES SEE HAS EXPLAINED THE SOURCE TO THE EXTENT OF ` 15,40,000/-. ACCORDINGLY, HE DELETED THE SAME. HOWEVER, HE CONFIRMED THE ADDITI ON OF ` 21,08,500/- AS UNEXPLAINED INCOME OF THE ASSESSEE. ON PERUSAL OF THE RETURNS OF INCOME FOR ASSESSMENT YEARS 2008-09, 2009-10 AND 2010-11, IT APPEARS THE ASSESSEE HAS DECLARED AGRIC ULTURAL INCOME OF ` 19,25,000/-, ` 20,35,000/- AND ` 24,67,490/- RESPECTIVELY. THE 4 I.T.A. NO.1104/MDS/16 CIT(APPEALS), AFTER CONSIDERING THE CASH FLOW STATE MENT FILED BY THE ASSESSEE, FOUND THAT THE NET AGRICULTURAL INCOME AV AILABLE TO THE ASSESSEE WAS ONLY ` 15,40,000/-. ACCORDINGLY, HE CONFIRMED THE SAME AND SUSTAINED THE BALANCE AMOUNT OF ` 21,08,500/-. 6. THE FACT THAT THE ASSESSEE IS HOLDING AGRICULTUR AL LAND AT VILPATTI VILLAGE AT KODAIKANAL, KOVUR VILLAGE AND V UYYUR VILLAGE, ETC. ARE NOT IN DISPUTE. IT IS ALSO NOT IN DISPUTE THAT THE ASSESSEE HAS RETURNED AGRICULTURAL INCOME FOR THE ASSESSMENT YEA RS 2008-09, 2009-10 AND 2010-11. THE CIT(APPEALS), AFTER CONSI DERING THE CASH FLOW STATEMENT FILED BY THE ASSESSEE, FOUND TH AT THE ASSESSEE HAD SOURCE TO THE EXTENT OF ` 15,40,000/-. ACCORDINGLY, HE DELETED THE SAME. WHEN THE ASSESSEE WAS ABLE TO EXPLAIN SO URCE OF AGRICULTURAL INCOME AND ALSO DISCLOSED AGRICULTURAL INCOME CONTINUOUSLY IN THE EARLIER ASSESSMENT YEARS, THE C IT(APPEALS) HAS RIGHTLY ACCEPTED THE NET AGRICULTURAL INCOME SHOWN IN THE CASH FLOW STATEMENT TO THE EXTENT OF ` 15,40,000/- AND DELETED THE SAME. THEREFORE, THIS TRIBUNAL DO NOT FIND ANY REASON TO INTERFERE WITH THE ORDER OF THE LOWER AUTHORITY AND ACCORDINGLY THE SA ME IS CONFIRMED. 5 I.T.A. NO.1104/MDS/16 7. THE NEXT GROUND OF APPEAL IS WITH REGARD TO ADDI TION OF ` 25,00,000/- IN RESPECT OF LOAN TRANSACTIONS WITH M/ S CORPORATE LEISURE & PROPERTY DEVELOPMENT PVT. LTD., BANGALORE . 8. SHRI A.V. SREEKANTH, THE LD. DEPARTMENTAL REPRES ENTATIVE, SUBMITTED THAT THE ASSESSEE CLAIMS TO HAVE RECEIVED A LOAN OF ` 25,00,000/- FROM M/S CORPORATE LEISURE & PROPERTY D EVELOPMENT PVT. LTD., BANGALORE, ON 12.01.2011 THROUGH STATE B ANK OF INDIA ACCOUNT. HOWEVER, THE ASSESSEE COULD NOT SUBSTANTI ATE THE RECEIPT OF ` 25,00,000/- BY PRODUCING NECESSARY MATERIAL EVIDENC E. THEREFORE, THE ASSESSING OFFICER TREATED THE SUM OF ` 25,00,000/- AS INCOME FROM OTHER SOURCES UNDER SECTION 68 OF THE I NCOME-TAX ACT, 1961 (IN SHORT 'THE ACT'). THE CIT(APPEALS), HOWEV ER, FOUND THAT ` 25,00,000/- WAS REMITTED AS DEMAND DRAFT ON 08.01.2 011 AND THE SAME WAS RETURNED THROUGH RTGS ON 12.01.2011. ACCO RDING TO THE LD. D.R., REFERRING TO THE CASH FLOW STATEMENT FILE D BY THE ASSESSEE, THE CIT(APPEALS) FOUND THAT THE ADDITION MADE BY TH E ASSESSING OFFICER IS NOT SUSTAINABLE. ACCORDING TO THE LD. D .R., THE ASSESSEE HAS NOT DISCHARGED HIS ONUS, THEREFORE, THE CIT(APP EALS) IS NOT JUSTIFIED IN ALLOWING THE CLAIM OF THE ASSESSEE. 6 I.T.A. NO.1104/MDS/16 9. ON THE CONTRARY, MS. S. DEEPA, THE LD. REPRESENT ATIVE FOR THE ASSESSEE, SUBMITTED THAT IN FACT, THE ASSESSEE RECE IVED ` 25,00,000/- FROM M/S CORPORATE LEISURE & PROPERTY D EVELOPMENT PVT. LTD., BANGALORE, TOWARDS REFUND OF ADVANCE BY DEMAND DRAFT ON 08.01.2011 BY WAY OF RTGS. THE SAME AMOUNT WAS RET URNED BACK ON 12.01.2011. THE CIT(APPEALS), AFTER REPRODUCING THE CASH FLOW STATEMENT, CHEQUE NUMBER, TRANSACTION NUMBER, ETC., FOUND THAT THE OBSERVATION MADE BY THE ASSESSING OFFICER THAT THE ASSESSEE HAS NOT SUBSTANTIATED THE TRANSACTION WAS NOT CORRECT. THEREFORE, THE CIT(APPEALS) HAS RIGHTLY ALLOWED THE CLAIM OF THE A SSESSEE. 10. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS ON EIT HER SIDE AND PERUSED THE RELEVANT MATERIAL AVAILABLE ON RECORD. THE FACT IS THAT THE ASSESSEE RECEIVED ` 25,00,000/- THROUGH RTGS ON 12.01.2011. THEREFORE, IT IS OBVIOUS THAT THE ASSESSEE HAS RECE IVED THE CASH THROUGH DEMAND DRAFT AND THE SAME WAS REMITTED BACK BY RTGS. IN VIEW OF THE ABOVE, THIS TRIBUNAL IS OF THE CONSI DERED OPINION THAT IT CANNOT BE SAID THAT THE ASSESSEE HAS NOT DISCHARGED HIS ONUS. THIS TRIBUNAL IS OF THE CONSIDERED OPINION THAT THE ASSE SSEE HAS DISCHARGED HIS ONUS TOWARDS CREDITS FOUND IN THE BA NK ACCOUNT AND THEREFORE, THE CIT(APPEALS) HAS RIGHTLY FOUND THAT THE ADDITION MADE 7 I.T.A. NO.1104/MDS/16 BY THE ASSESSING OFFICER IS NOT SUSTAINABLE. THERE FORE, THIS TRIBUNAL DO NOT FIND ANY REASON TO INTERFERE WITH THE ORDER OF THE LOWER AUTHORITY AND ACCORDINGLY THE SAME IS CONFIRMED. 11. IN THE RESULT, THE APPEAL FILED BY THE REVENUE IS DISMISSED. ORDER PRONOUNCED ON 20 TH APRIL, 2017 AT CHENNAI. SD/- SD/- ( . . ' #$ ) ( . . . ) (D.S. SUNDER SINGH) (N.R.S. GANESAN) & / ACCOUNTANT MEMBER /JUDICIAL MEMBER /CHENNAI, 7 /DATED, THE 20 TH APRIL, 2017. KRI. 1 /3#8 98+3 /COPY TO: 1. -. /APPELLANT 2. /0-. /RESPONDENT 3. ' :3 () /CIT(A)-8, CHENNAI 4. PRINCIPAL CIT, CHENNAI-4, CHENNAI 5. 8; /3 /DR 6. * < /GF.