Sh. Mahendra Pratap Singh Bhadoria, Gwalior V. I.T.O., Range-2(1), Gwalior

ITA 125/AGR/2012

• Counselvise Citation: 12520314 RSA 2012
• Duration Of Justice: 7 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-11-2012
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: DB
• Next Hearing Date: 20-11-2012
• Assessment Year: 2008-2009
• Appeal Filed On: 03-04-2012
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: KK MISHRA
• Keywords: Unexplained investment; Assessment record
• Section: 69

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AGRA BENCH, AGRA BEFORE SHRI BHAVNESH SAINI, JUDICIAL MEMBER AND SHRI A.L. GEHLOT, ACCOUNTANT MEMBER ITA NO.125/AGR/2012 ASSESSMENT YEAR: 2008-09 SHRI MAHENDRA PRATAP SINGH BHADORIA, VS. INCOME TA X OFFICER, 2, M.P. NAGAR, RANGE 2(1), GWALIOR. NEAR USHA COLONY, CHETAKPURI, GWALIOR. (PAN: ACBPB 1982 H) (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI RAJENDRA SHARMA, ADVOCATE RESPONDENT BY : SHRI K.K. MISHRA, JR. D.R. DATE OF HEARING : 20.11.2012 DATE OF PRONOUNCEMENT OF ORDER : 30.11.2012 ORDER PER A.L. GEHLOT, ACCOUNTANT MEMBER: THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER DATED 09.02.2012 PASSED BY THE LD. CIT(A), GWALIOR FOR THE ASSESSMEN T YEAR 2008-09. 2. THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL :- 1. THAT, IN ANY VIEW OF THE MATTER AND ON THE FACT S AND CIRCUMSTANCES OF THE CASE AND IN LAW, THE LD. AUTHORITIES BELOW H AVE ERRED IN MAKING AND UPHOLDING THE ADDITION OF RS.5,50,000/- ON ACCO UNT OF ALLEGED UNEXPLAINED INVESTMENT IN HOUSE PROPERTY. 2. THAT, IN ANY VIEW OF THE MATTER AND CIRCUMSTANCE S OF THE CASE AND IN LAW, THE LD. COMMISSIONER OF INCOME TAX, APPEALS HAS ERRED IN NOT ITA NO.125/AGR/2012 A.Y. 2008-09 2 DECIDING THE ISSUE OF ADDITION OF RS.50,895/- ON AC COUNT OF INTEREST INCOME. 3. THAT, THE APPELLANT CRAVES LEAVE TO ADD AND/OR A MEND, THE GROUND OF APPEAL BEFORE AND/OR AT THE TIME OF HEARING. 3. DURING THE ASSESSMENT PROCEEDINGS THE A.O. NOTIC ED THAT THE ASSESSEE MADE INVESTMENT OF RS.37,11,770/-, WHICH INCLUDES STAMP DUTY ETC. OF RS.3,61,700/-, IN A RESIDENTIAL PROPERTY. TE A.O. ACCEPTED THE ASSESSE ES CONTENTION REGARDING SOURCE OF THE SAID AMOUNT TO THE TUNE OF RS.31,61,770/- FR OM LOAN AND SALE OF ANOTHER PROPERTY ON THE BASIS OF EVIDENCE SUBMITTED DURING THE ASSESSMENT PROCEEDINGS. FOR THE BALANCE AMOUNT OF RS.5,50,000/-, IT WAS SUB MITTED BY THE ASSESSEE THAT THIS AMOUNT HAS BEEN GIVEN OUT OF PAST SAVINGS AND RETIR EMENT BENEFITS. THE A.O. HAS REJECTED THE ASSESSEES CONTENTION IN ABSENCE OF BA LANCE SHEET, CASH BOOK ETC. 4. BEFORE THE CIT(A), IT WAS SUBMITTED THAT THE AS SESSEE IS A RETIRED PERSON WORKED AS A DOCTOR WITH THE GOVERNMENT DEPENDENT. THERE BEING NO DEPENDENT MEMBER OTHER THAN HIS SPOUSE, THIS AMOUNT HAS BEEN ACCUMULATED OVER THE PERIOD OF YEARS. COPY OF HIS BANK ACCOUNT FOR THE LAST TW O YEARS WAS FURNISHED TO PROVE CASH AVAILABILITY OF RS.5,50,000/-. A TENTATIVE ST ATEMENT OF AFFAIRS HAD ALSO BEEN FURNISHED. 5. THE CIT(A) CONFIRMED THE ADDITION OF RS.5,50,000 /- AS UNDER :- (PARAGRAPH NO.4) ITA NO.125/AGR/2012 A.Y. 2008-09 3 APPELLANTS SUBMISSION ALONG WITH ASSESSMENT ORDER HAVE BEEN CONSIDERED CAREFULLY. ASSESSMENT RECORDS HAVE ALSO BEEN PERUSED. IT IS SEEN THAT THE APPELLANT HAS BEEN GI VEN VARIOUS OPPORTUNITIES AT BOTH THE ASSESSMENT STAGE AND DURI NG APPEAL TO PROVE WITH DOCUMENTARY EVIDENCE THE SOURCE OF CASH INVEST MENT OF RS.5,50,000/-. THE APPELLANT HAS TIME AND AGAIN ME RELY REITERATED THAT BEING A SALARIED EMPLOYEE, NO REGULAR BOOKS OF ACCOUNTS HAVE BEEN MAINTAINED AND, THEREFORE, CAPITAL ACCOUNT, ST ATEMENT OF AFFAIRS, CASH FLOW STATEMENT ETC. CANNOT BE SUBMITTED. IN F ACT, THE APPELLANT HAS ALSO FAILED TO PRODUCE COPY OF HIS INCOME TAX R ETURNS OF LAST 2 YEARS ON THE GROUND THAT THEY HAVE BEEN MISPLACED B Y HIM, AS SUBMITTED VIDE LETTER DATED 08.12.2010. THE APPELL ANT WAS RETIRED FROM HIS GOVERNMENT JOB IN THE YEAR 2005 AND THE IN VESTMENT IN THE PROPERTY HAS BEEN MADE VIDE DEED DATED 08.02.08. I NVESTMENT TO THE TUNE OF RS.31,61,770/- HAS BEEN MADE FROM EXPLAINED SOURCES FROM HIS BANK ACCOUNT, WHEREAS FOR THE BALANCE AMOUNT OF RS. 5,50,000/- NO SATISFACTORY EXPLANATION SUPPORTED BY ANY DOCUMENTA RY EVIDENCE HAS BEEN GIVEN. EVEN THE STATEMENT OF AFFAIRS STATED T O BE A TENTATIVE ONE ONLY, AS NO REGULAR BOOKS OF ACCOUNTS TO KEEP RECOR D OF HIS CASH AND OTHER CREDIT TRANSACTIONS ARE BEING MAINTAINED. IN VIEW OF ABOVE AND AFTER PERUSAL OF RECORDS, A.O. IS FOUND JUSTIFIED I N TREATING THE AMOUNT OF RS.5,50,000/- AS UNEXPLAINED INVESTMENT IN THE H OUSE PROPERTY. ACCORDINGLY, ADDITION MADE U/S 69 OF RS.5,50,000/- IS, HEREBY CONFIRMED. 6. WE HAVE HEARD THE LD. REPRESENTATIVES OF THE PAR TIES AND RECORDS PERUSED. WE NOTICE THAT THE ASSESSEE HAS PURCHASED A PROPERT Y. THE ASSESSEE EXPLAINED THE SOURCE OF THE INVESTMENT IN HOUSE PROPERTY. THE A. O. ACCEPTED THE SOURCE EXPLAINED BY ASSESSEE EXCEPT FOR RS.5,50,000/-. WH ILE EXPLAINING THE SOURCE OF INVESTMENT, THE A.O. ACCEPTED THE LOAN OF RS.15,00, 000/- FROM TWO PARTIES, NAMELY, SHRI HARI SHANKAR GOYAL RS.7,00,000/- AND SAHRI NIT IN TRIVEDI RS.8,00,000/-. IN RESPECT OF RS.5,50,000/-, THE SUBMISSION OF THE ASS ESSEE WAS THAT THIS WAS OUT OF PAST SAVINGS. THE ASSESSEE MERELY SUBMITTED BEFORE THE REVENUE AUTHORITIES THAT THE ASSESSEE IS A SALARIED EMPLOYEE, NO REGULAR BOO KS OF ACCOUNT HAVE BEEN ITA NO.125/AGR/2012 A.Y. 2008-09 4 MAINTAINED. THEREFORE, CAPITAL ACCOUNT, STATEMENT OF AFFAIRS AND CASH FLOW STATEMENT ETC CANNOT BE SUBMITTED. THE ASSESSEE FA ILED TO PRODUCE COPY OF INCOME TAX RETURN FOR THE LAST TWO YEARS ON THE GROUND THA T THEY HAVE MISPLACED. FOR WANT OF EXPLANATION AND EVIDENCE THE ADDITION OF RS.5,50 ,000/- WAS MADE. BEFORE US ALSO NO SUCH EVIDENCE AND MATERIAL OR ANY CONVINCIN G REASONS WERE FURNISHED BASED ON WHICH IT CAN BE HELD THAT RS.5,50,000/- WA S OUT OF THE PAST SAVINGS OF THE ASSESSEE. SINCE THERE IS NEITHER ANY MATERIAL AVAI LABLE ON RECORD NOR ANYTHING HAS BEEN POINTED OUT AT THE TIME OF HEARING, IN THE LIG HT OF THE FACTS, WE DO NOT FIND ANY INFIRMITY IN THE ORDER OF CIT(A). ORDER OF THE CIT (A) IS CONFIRMED ON THE ISSUE. 7. THE SECOND GROUND IS IN RESPECT OF ADDITION OF R S.50,895/- ON ACCOUNT OF INTEREST INCOME. THIS GROUND HAS NOT BEEN DECIDED BY THE CIT(A). IN THE LIGHT OF THE FACT, WE SEND BACK THIS ISSUE TO THE FILE OF CI T(A) WITH THE DIRECTION TO DECIDE THE ISSUE IN ACCORDANCE WITH LAW AFTER PROVIDING OP PORTUNITY OF HEARING TO BOTH THE SIDES. 8. IN THE RESULT, APPEAL OF THE ASSESSEE IS PARTLY ALLOWED FOR STATISTICAL PURPOSES. (ORDER PRONOUNCED IN THE OPEN COURT) SD/- SD/- (BHAVNESH SAINI) (A.L. GEHLOT) JUDICIAL MEMBER ACCOUNTANT MEMBER PBN/* ITA NO.125/AGR/2012 A.Y. 2008-09 5 COPY OF THE ORDER FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT (APPEALS) CONCERNED 4. CIT CONCERNED 5. D.R., ITAT, AGRA BENCH, AGRA 6. GUARD FILE. BY ORDER SR. PRIVATE SECRETARY INCOME-TAX APPELLATE TRIBUNAL, AGRA TRUE COPY