DCIT, CHENNAI V. S.Vijayaraj, CHENNAI

ITA 1239/CHNY/2011

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 64107 (ITAT-CHENNAI)
• Duration Of Justice: 1 year(s) 1 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-08-2012
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Next Hearing Date: 25-07-2012
• Assessment Year: 2004-2005
• Appeal Filed On: 04-07-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: PVF
• Keywords: Unexplained investment; Peak credit
• Section: 153A; 2

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH, CHENNAI BEFORE DR. O.K.NARAYANAN, VICE-PRESIDENT AND SHRI VIKAS AWASTHY, JUDICIAL MEMBER ITA NO.1239(MDS)/2011 ASSESSMENT YEAR : 2004-05 THE DEPUTY COMMISSIONER OF INCOME-TAX, CENTRAL CIRCLE III(2), CHENNAI. VS. SHRI S.VIJAYARAJ, 76, THIRUVALLUVAR SALAI, TEYNAMPET, CHENNAI-18. PAN ABYPV0556F. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI ANIRUDH RA I, IRS, CIT RESPONDENT BY : SHRI S.SRIDHAR, ADV OCATE DATE OF HEARING : 25 TH JULY, 2012 DATE OF PRONOUNCEMENT : 7 TH AUGUST, 2012 O R D E R PER DR.O.K.NARAYANAN, VICE-PRESIDENT: THIS APPEAL IS FILED BY THE REVENUE. THE RELEVANT ASSESSMENT YEAR IS 2004-05. THE APPEAL IS DIRECTED AGAINST THE ORDER OF THE COMMISSIONER OF INCOME-TAX(APPEALS)-II AT CHENNAI, DATED 15-2-2011 AND ARISES OUT OF THE ASSESSMENT CO MPLETED - - ITA 1239 OF 2011 2 UNDER SECTION 143(3), READ WITH SECTION 153A OF THE INCOME-TAX ACT, 1961. 2. THE GROUNDS RAISED BY THE REVENUE IN THIS APPEA L READ AS BELOW:- 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE LEARNED CIT(A) HAS ERRED IN DELETING THE ADDITION AT ` 15,75,482/- TOWARDS UNACCOUNTED INVESTMENT IN IMMOVABLE PROPERTY AND AT ` 14,38,560/- TOWARDS ANOTHER UNACCOUNTED INVESTMENT IN IMMOVABLE PROPERTY VIDE DOC. NO.724/2003 BY HOLDING THAT THE INVESTMENTS ARE MADE OUT OF THE WITHDRAWALS FROM THE BANK ACCOUNTS, DEPOSITS INTO WHICH HAVE ALREADY BEEN CONSIDERED FOR ASSESSMENT IN THE HANDS OF SRI P.SELVARAJ. 2. THE LEARNED CIT(A) HAS ERRED IN RELYING ON THE STATEMENTS AS FURNISHED BY THE AUTHORISED - - ITA 1239 OF 2011 3 REPRESENTATIVE WITHOUT VERIFYING HIMSELF OR BY CALLING FOR REMAND REPORT FROM THE A.O. 3. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE LEARNED CIT(A) HAS ERRED IN DELETING THE ADDITIONS AT ` 2,39,603/- TOWARDS UNACCOUNTED BANK DEPOSIT. 4. THE LEARNED CIT(A) HAS ERRED IN STATING THAT THE DEPOSITS IN THE ACCOUNT OF S.VIJAYARAJ HAVE BEEN CONSIDERED IN THE HANDS OF P.SELVARAJ WITHOUT NOTING THAT ADOPTING THE INCOME BASED ON PEAK CREDIT METHOD IN THE CASE OF P.SELVARAJ IS NOT CORRECT SINCE THE LEARNED CIT(A) HAS ADOPTED THE SAME WITHOUT NECESSARY VERIFICATION. 3. THE APPEALS IN THE CASE OF SHRI P.SELVARAJ HAVE ALREADY BEEN DISPOSED OF BY THE INCOME-TAX APPELLAT E TRIBUNAL, D-BENCH, CHENNAI IN ITA NOS.1230 TO 1236(MDS)/2012, VIDE ORDER DATED 3 RD AUGUST, 2012, WHEREIN THE TRIBUNAL HAS UPHELD THE ORDERS PASSED BY THE COMMISSIONER OF INCOME-TAX (APPEALS). THE COMMISSIONER OF INCOME-TAX(APPEALS) HAS GIVEN R ELIEF IN THE - - ITA 1239 OF 2011 4 PRESENT CASE ON THE GROUND THAT THE DEPOSITS ALLEGE D AGAINST THE ASSESSEE HAVE ALREADY BEEN CONSIDERED FOR ASSESSMEN T IN THE HANDS OF SHRI P.SELVARAJ. THE ADDITIONS MADE WITH REFERENCE TO THE IMMOVABLE PROPERTIES ALSO HAVE BEEN DELETED. T HEREFORE, THE COMMISSIONER OF INCOME-TAX(APPEALS) IS JUSTIFIE D IN DELETING THE ADDITION ON ACCOUNT OF BANK DEPOSITS AMOUNTING TO ` 2,39,603/-. 4. REGARDING THE UNACCOUNTED INVESTMENTS MADE IN IMMOVABLE PROPERTIES, THE SOURCES HAVE BEEN SUPPORT ED BY THE WITHDRAWALS MADE FROM THE BANK ACCOUNTS. ALL THESE MATTERS ARE INTERCONNECTED. THEREFORE, AS ALL THESE AMOUNTS AR E EXPLAINED IN THE HANDS OF SHRI P.SELVARAJ AND EVEN CONSIDERED BY THE TRIBUNAL, THERE IS NO REASON TO SUSTAIN SUCH ADDITI ONS IN THIS FILE. THE COMMISSIONER OF INCOME-TAX(APPEALS) IS JUSTIFIE D IN DELETING THOSE ADDITIONS AS WELL. 5. IN RESULT, THIS APPEAL FILED BY THE REVENUE IS DISMISSED. - - ITA 1239 OF 2011 5 ORDER PRONOUNCED ON TUESDAY, THE 7 TH OF AUGUST, 2012 AT CHENNAI. SD/- SD/- (VIKAS AWASTHY) (DR. O.K.NARAYANAN) JUDICIAL MEMBER VICE-PRESIDENT CHENNAI, DATED THE 7 TH AUGUST, 2012. V.A.P. COPY TO: (1) APPELLANT (2) RESPONDENT (3) CIT (4) CIT(A) (5) D.R. (6) G.F.