Sh. Vijay Anjum, Chandigarh V. ITO, Chandigarh

ITA 1246/CHANDI/2010

• Counselvise Citation: [2011] 135 COUNSELVISE.COM (IT) 1435 (ITAT-CHANDIGARH)
• Duration Of Justice: 2 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-01-2011
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 20-12-2010
• Assessment Year: 2006-2007
• Appeal Filed On: 02-11-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Corroborative evidences

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL: SMC BENCH: CHANDIGARH BEFORE HONBLE SHRI D K SRIVASTAVA, AM ITA NO. 1246/CHANDI/2010 ASSESSMENT YEAR: 2 006-07 VIJAY ANJUM, V I.T.O. WARD 5(3), CHANDIGARH H NO. 3540, SECTOR 46-C, CHANDIGARH PAN: ABEPA 0672 P (APPELLANT-ASSESSEE) (RESPONDENT) APPELLANT BY: SHRI AJAY JAIN RESPONDENT BY: SMT. SARITA KUMARI ORDER THE APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAINS T THE ORDER PASSED BY THE LD. CIT(A) ON 16.7.2010, ON THE FOLLOWING GROUNDS: 1 THAT THE ORDER OF LD. CIT(A) IS BAD IN LAW AND O N FACTS. 2 THAT THE LD. CIT(A) HAS ERRED IN LAW AS WELL AS O N FACTS WHILE DISMISSING THE APPEAL OF THE ASSESSEE ON THE GROUND THAT DEPOSIT OF RS. 192,000/- IN HDFC FROM ICICI WAS NOT SUPPORTED BY A NY EVIDENCE, IGNORING THE STATEMENT OF ACCOUNT OF ICICI BANK WHICH IS AN AUTH ENTIC EVIDENCE. 2 THE ASSESSEE FILED HIS RETURN OF INCOME ON 29.7.2 006 RETURNING TOTAL INCOME AT RS. 1,66,040/- FROM SALARY AND INSURANCE BUSINESS. THE CASE OF THE ASSESSEE WAS TAKEN UP FOR SCRUTINY. DURING THE COURSE OF SCRUTIN Y, THE ASSESSING OFFICER NOTICED THAT A SUM OF RS. 1,92,000/- HAS BEEN DEPOSITED IN HDFC BANK ON VARIOUS DATES, NAMELY, RS. 30,000/- ON 23.8.2005, RS. 34,000/- ON 23.11.2 005, RS. 11,000/- ON 25.11.2005, RS. 45,000/- ON 2.12.2005 AND RS. 72,000/- ON 18.3. 2006. THE ASSESSING OFFICER CALLED UPON THE ASSESSEE TO EXPLAIN THE NATURE AND SOURCE OF THE AFORESAID DEPOSITS. IT IS THE CASE OF THE ASSESSING OFFICER THAT THE AS SESSEE DID NOT FILE ANY EVIDENCE TO EXPLAIN THE NATURE AND SOURCE OF THE IMPUGNED DEPOS ITS. HE, THEREFORE, TREATED THE SAID SUM OF RS. 1,92,000/- AS UNEXPLAINED AND CONSE QUENTLY ADDED THE SAME TO THE INCOME RETURNED BY THE ASSESSEE. 3 AGGRIEVED BY THE AFORESAID ADDITION, THE ASSESSEE FILED APPEAL BEFORE THE LD. CIT(A) WHO HOWEVER CONFIRMED THE ADDITION MADE BY THE ASSESSING OFFICER. AGGRIEVED BY THE ORDER OF THE LD. CIT(A) IN CONFIRM ING THE IMPUGNED ADDITION, THE ASSESSEE IS NOW IN APPEAL BEFORE THIS TRIBUNAL. 1246/CHANDI/2010 2 2 5 IN SUPPORT OF APPEAL, THE LEARNED AUTHORISED REPR ESENTATIVE FOR THE ASSESSEE HAS FILED SUBMISSIONS RUNNING INTO SEVEN PAGES TOGE THER WITH SUPPORTING EVIDENCE. PARA TWO OF THE SUBMISSIONS FILED BY HIM READS AS U NDER: 2 THAT THE LD. CIT(A) HAS ERRED IN LAW AS WELL AS ON FACTS WHILE DISMISSING THE APPEAL OF THE ASSESSEE ON THE GROUND THAT DEPOSIT OF RS. 1,92,000/- IN HDFC CREDIT CARD ACCOUNT FROM ICICI CREDIT CARD ACCOUNT WAS NOT SUPPORTED BY ANY EVIDENCE, IGNORING THE STATEMENT O ACCOUNT OF ICICI BANK WHICH IS AND AUTHENTIC EVIDENCE. 2.1 THE RELEVANT FACTS, IN BACK GROUND, RELATING TO THE ABOVE GROUNDS OF APPEAL, IN BRIE, ARE AS FOLLOWS: I THAT APPELLANT IS A SALARIED PERSON AND ALSO HAS COMMISSION INCOME FROM INSURANCE BUSINESS. DURING THE YEAR UNDER CON SIDERATION THE ASSESSING OFFICER MADE AN ADDITION OF RS. 1,92,000/- ON THE G ROUND THAT ASSESSEE HAS NO OFFERED ANY EXPLANATION ABOUT NATURE AND SOURCE O D EPOSITS TO HIS CREDIT CARD ACCOUNT. THUS TREATING RS. 1,92,000/- AS INCOME OF THE ASSESSEE FROM UNDISCLOSED SOURCES. II THE LD. CIT(A) HAS UPHELD THE ORDERS OF ASSESSIN G OFFICER WITHOUT APPRECIATING THE FACTS AND NATURE OF THE TRANSACTIO NS. THE LD. CIT(A) RELATED THE BALANCE TRANSFER FACILITY WITH DRAFTS OR CASH W ITHDRAWAL ON CREDIT CARD, WHICH IS TOTALLY MISREPRESENTATION OF FACTS. III IN THIS CONNECTION IT IS SUBMITTED THAT THE AMO UNT OF RS. 1,92,000/- CONSISTS OF THE FOLLOWING DEPOSITS IN HDFC CREDIT C ARD ACCOUNT: SR NO. DATE AMOUNT (RS.) 1 23.8.2005 30,000 2 23.11.2005 34,000 3 25.11.2005 11,000 4 2.12.2005 45,000 5 18.3.2006 72,000 TOTAL 1,92,000 SOURCE OF EACH DEPOSIT WAS ALSO EXPLAINED BY THE AS SESSEE DURING APPELLATE PROCEEDINGS BEFORE THE LD. CIT(A) THAT DEPOSIT OF R S. 1,92,000/- IS FROM BALANCE TRANSFER FACILITY TAKEN FROM ICICI CREDIT C ARD ALONG WITH SUPPORTING CREDIT CARD STATEMENTS. THE RELEVANT ACCOUNT OF DFC & ICICI CREDIT CARDS IN TABULATED FORM IS REPRODUCED HERE UNDER: 1246/CHANDI/2010 3 3 HDFC BANK STATEMENT DATE OPENING BALANCE PURCHASES & OTHER CHARGES BALANCE TRFT TO ICICI BANK AMOUNT DEPOSITED BALANCE TRFT FROM ICICI BANK CLOSING BALANCE 9.5.2005 1714.9 3535 40000 1720 43529.92 9.6.2005 43530 109.02 2300 41338.94 9.7.2005 41339 105.94 5000 36444.88 9.8.2005 36445 111.02 2000 34555.9 9.9.2005 34556 529.27 47000 30000 52085.17 9.10.2005 52085 82.24 5000 47167.41 9.11.2005 47167 916.38 57000 4000 101083.8 9.12.2005 101084 319.22 771.4 90000 10631.61 9.1.2006 10632 1399.51 1000 11031.12 9.2.2006 11031 62.35 9026.91 2066.56 9.3.2006 2066.6 2271.52 75000 6000 73338.08 9.4.2006 73338 5916.03 72000 7254.11 TOTAL 454988 15357.5 219000 36818.31 192000 ICICI BANK STATEMENT DATE OPENING BALANCE PURCHASE & OTHER CHARGES BALANCE TRFD TO HDFC BANK AMOUNT DEPOSITED BALANCE TRFD FROM HDFC BANK CLOSING BALANCE 10.6.2005 46703 40000 6703.22 10.7.2005 6703.2 3676.12 10379.34 10.8.2005 10379 36186.32 46565.66 10.9.20 05 46566 7025.87 30000 47000 36591.53 10.10.2005 36592 35727.65 72319.18 10.11.2005 72319 1256.06 4000 57000 12575.24 10.12.2005 12575 489.1 90000 103064.34 10.1.2006 103064 9262.97 5500 106827.3 10.2.2006 106827 5240.19 101587.1 10.3.2006 101587 245.45 72000 75000 98832.57 TOTAL 534416 93869.54 192000 14740.19 219000 THE ABOVE STATEMENTS OF BOTH THE BANKS WERE BEFORE THE LD. CIT(A) BUT STILL SHE COULD NOT APPRECIATE THEM IN TRUE SPIRIT ONLY F OR WANT OF PROPER TABULATION OR RECASTING OF ACCOUNT AS HAS BEEN DONE ABOVE NOW . 1246/CHANDI/2010 4 4 IV FROM THE ABOVE TABLE IT IS QUIT CLEAR THAT THE A MOUNT DEPOSITED IN HDFC CREDIT CARD BY THE ASSESSEE WAS BASICALLY FROM THE BALANCE TRANSFER FACILITY AVAILED BY THE ASSESSEE FROM ICICI CREDIT CARD. TH E REPAYMENT OF THESE ADVANCES FROM ICICI BANK WAS AGAINST REPAID BY AVAI LING THE SAME FACILITY FROM HDFC CREDIT CARD AND PERIODIC PAYMENTS MADE FROM TH E ASSESSEES BANK ACCOUNT THROUGH ATM. THE RELEVANT COPIES OF STATEM ENTS OF THE HDFC CREDIT CARD AND ICICI CREDIT CARD ARE ENCLOSED AT PAGE NO. 8-16 AND COPY OF ACCOUNT OF HDFC BANK AND ICICI BANK ARE ENCLOSED AT PAGE NO . 17-21 TO SHOW ENTRY WISE DETAILS OF THEE TRANSACTIONS. 6 IN REPLY THE LD. DR SUPPORTED THE ORDERS PASSED B Y THE AO AND THE LD. CIT(A). 7 I HAVE HEARD BOTH THE PARTIES. IT IS THE CASE OF THE ASSESSEE THAT A SUM OF RS. 1,92,000/- DEPOSITED IN THE HDFC BANK CREDIT CARD A CCOUNT CAME OUT OF TRANSFER FROM HIS ICICI CREDIT CARD ACCOUNT AND THE AMOUNT DEPOSI TED IN ICICI CASH ACCREDIT ACCOUNT CAME OUT OF TRANSFER FROM HDFC BANK CREDIT CARD ACC OUNT. IT IS EXPLAINED BY THE ASSESSEE THAT HE HAS DONE SO TO AVAIL THE FACILITY OF CREDIT TO THE FULLEST EXTENT AS OFFERED TO HIM AS CREDIT CARD HOLDER OF HDFC BANK A ND ICICI BANK. THE WRITTEN SUBMISSIONS FILED BY THE ASSESSEE, AS EXTRACTED ABO VE, ESTABLISHES THE LINK BETWEEN TRANSFER OF FUND FROM ONE ACCOUNT TO OTHER ACCOUNT. IN THIS VIEW OF THE MATTER, IT CANNOT BE SAID THAT THE ASSESSEE HAS FAILED TO EXPL AIN THE NATURE AND SOURCE OF IMPUGNED DEPOSIT. RESULTANTLY, THE ADDITION MADE BY THE ASSESSING OFFICER AND CONFIRMED BY THE LD. CIT(A) IS DELETED. THE APPEA L FILED BY THE ASSESSEE IS ALLOWED. ORDER PRONOUNCED ON 7 TH JANUARY 2011 (D K SRIVASTAVA) ACCOUNTANT MEMBER CHANDIGARH, THE 7 TH JANUARY, 2011 SURESH COPY TO: 1. THE APPELLANT, SHRI VIJAY ANJUM, 3540, SECTOR 46 -C, CHANDIGARH 2. THE RESPONDENT, I.T.O. WARD 5(3), CHANDIGARH 3. THE CIT, CHANDIGARH 4. THE CIT(A), CHANDIGARH 5. THE LD. D.R, INCOME TAX DEPARTMENT, CHANDIGARH TRUE COPY BY ORDER ASSISTANT REGISTRAR, ITAT, CHANDIGARH