K.M.Chidambarasamy, Salem V. ITO, Tiruppur

ITA 1281/CHNY/2017

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 6120 (ITAT-CHENNAI)
• Duration Of Justice: 3 month(s) 30 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-09-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2013-2014
• Appeal Filed On: 22-05-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: B SAGADEVAN
• Assessee Lawyers: T S LAKSHMI VENKATRAMAN
• Section: 69

Judgement Text

, .. , IN THE INCOME TAX APPELLATE TRIBUNAL , SMC B BENCH, CHENNAI . , BEFORE SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER ./ I.T.A.NO.1281/MDS/2017 ( / ASSESSMENT YEAR: 2013-14) SHRI K.M. CHIDAMBARASAMY, NO.94, WEST KULLAMPALAYAM, MANDIRIPALAYAM POST, KETHANUR, TIRUPUR 641 671. VS THE INCOME TAX OFFICER, WARD 2(4), THIRUPUR. PAN: AHLPC6831B ( /APPELLANT) ( /RESPONDENT) / APPELLANT BY : SHRI T.S. LAKSHMIVENKATRAMAN, CA /RESPONDENT BY : SHRI B. SAGADEVAN, JCIT /DATE OF HEARING : 02.08.2017 !' /DATE OF PRONOUNCEMENT : 21.09.2017 / O R D E R THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER PASSED BY THE LD. COMMISSIONER OF INCOME TAX (APPEA LS)-3, COIMBATORE DATED 27.02.2017 IN APPEAL NO.38/16-17 F OR THE ASSESSMENT YEAR 2013-14 PASSED U/S.250(6) R.W.S.143 (3) OF THE ACT. 2. THE ASSESSEE HAS RAISED SEVERAL GROUNDS IN HIS APPEAL, HOWEVER THE CRUX OF THE ISSUE IS THAT THE LD.CIT(A) HAS ERRED IN SUSTAINING THE ADDITION MADE BY THE LD.AO TOWARDS F IXED DEPOSITS AMOUNTING TO RS.41,12,579/- U/S.69 OF THE ACT BY HOLDING IT AS UNDISCLOSED INVESTMENTS. 2 ITA NO.1281/MDS/2017 3. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSE E IS AN INDIVIDUAL ENGAGED IN THE BUSINESS OF CHARCOAL MANU FACTURING, FILED HIS RETURN OF INCOME FOR THE ASSESSMENT YEAR 2013-14 ON 16.09.2013 ADMITTING TOTAL INCOME OF RS.3,23,940/- AND AGRICULTURAL INCOME OF RS.93,600/-. INITIALLY THE RETURN WAS PROCESSED U/S.143(1) OF THE ACT AND SUBSEQUENTLY TH E CASE WAS SELECTED FOR SCRUTINY UNDER CASS AND FINALLY ASSESS MENT ORDER WAS PASSED U/S.143(3) OF THE ACT ON 30.03.2016, WHE REIN THE LD.AO MADE ADDITION OF RS.41,12,576/- TOWARDS UNDIS CLOSED INVESTMENTS U/S.69 OF THE ACT. 4. DURING THE COURSE OF SCRUTINY ASSESSMENT PROCEED INGS, THE LD.AO OBSERVED THAT THE ASSESSEE HAD SUBMITTED THAT HE IS MAINTAINING ONLY THREE BANK ACCOUNTS DETAILED AS FO LLOWS: FURTHER ENQUIRY WITH THE ABOVE MENTIONED BANK MANAG ERS REVEALED THAT THE ASSESSEE WAS HAVING THE FOLLOWING BANK ACCOUNTS WHICH WERE NOT DISCLOSED IN HIS BOOKS OF A CCOUNTS. SL.NO. NAME OF THE BANK / ACCOUNT NO. CLOSING BALANCE AS ON 31.03.2013 1. STATE BANK OF INDIA, KETHANUR A/C. NO.11401890133 SB A/C. 1,16,827 2 STATE BANK OF INDIA, PALLADAM A/C. NO.32026988492 CURRENT A/C. 2,78,210 3 STATE BANK OF INDIA, PALLADAM A/C. NO.30596385599 SB A/C. 30,08,548 3 ITA NO.1281/MDS/2017 S. NO NAME OF THE BANK / ACCOUNT NO. PRODUCT NAME CREDITS DURING THE YEAR CLOSING BALANCE AS ON 31.3.2013 1 STATE BANK OF INDIA, KETHANUR A/C. NO32301496486 STD-GEN-PUB IND-1Y-455D-INR 10,17,334 10,00,000 2 STATE BANK OF INDIA, KETHANUR A/C. NO.31988450660 STD-GEN-PUB IND-1Y-455D-INR 95,245 10,76,284 3 STATE BANK OF INDIA, KETHANUR A/C. NO.32892487454 STD-GEN-PUB- IND-3<5Y-INR 10,00,000 10,00,000 4 STATE BANK OF INDIA, PALLADAM A/C. NO.32908735530 STD-GEN-PUB- IND-3<5Y-INR 5,00,000 5,00,000 5 STATE BANK OF INDIA, PALLADAM A/C. NO.32829303348 STD-GEN-PUB- IND-1Y-455D-INR 5,00,000 5,00,000 6 STATE BANK OF INDIA, PALLADAM A/C. NO.32829302775 STD-GEN-PUB- IND-1Y-455D-INR 5,00,000 5,00,000 7 STATE BANK OF INDIA, PALLADAM A/C. NO.32908712670 STD-GEN-PUB- IND-3<5Y-INR 5,00,000 5,00,000 TOTAL INVESTMENTS DURING THE YEAR 41,12,579 ON QUERY THE ASSESSEE COULD NOT SUBSTANTIATE THE SO URCE OF THE CREDIT BALANCE IN THE BANK ACCOUNT AMOUNTING TO RS.41,12,579/-. THEREFORE THE LD.AO MADE ADDITION OF RS.41,12,579/- AS THE UNDISCLOSED INVESTMENT OF THE ASSESSEE U/S. 69 OF THE ACT. ON APPEAL, THE ASSESSEE WAS NO T ABLE TO EXPLAIN THE SOURCE OF THE CREDITS IN HIS BANK ACCOU NT EVEN BEFORE THE LD.CIT(A). HENCE HE SUSTAINED THE ADDITION OF RS.41,12,579/-. 6. BEFORE ME THE LD.AR SUBMITTED THAT ALL THE BANK DEPOSITS ARE OUT OF THE WITHDRAWALS FROM THE SAME BANK ACCOU NTS ON DIFFERENT DATES AND THEREFORE THE ENTIRE AMOUNT CAN NOT BE ADDED TO THE INCOME OF THE ASSESSEE AS UNDISCLOSED INVEST MENTS. HE THEREFORE PLEADED THAT THE MATTER MAY BE REMITTED B ACK TO THE FILE OF LD.AO FOR FRESH CONSIDERATION. THE LD.DR VEHEME NTLY 4 ITA NO.1281/MDS/2017 OPPOSED TO THE SUBMISSION OF THE LD.AR AND REQUESTE D FOR CONFIRMING THE ORDER OF THE LD. REVENUE AUTHORITIES . 7. I HAVE HEARD THE RIVAL SUBMISSIONS AND CAREFULLY PERUSED THE MATERIALS ON RECORD. CONSIDERING THE PRAYER OF THE LD.AR, I AM OF THE CONSIDERED VIEW THAT THE SUBMISSION OF TH E LD.AR NEEDS TO BE VERIFIED IN DETAIL BY THE LD.AO. THERE FORE IN THE INTEREST OF JUSTICE, I HEREBY REMIT THE MATTER BACK TO THE FILE OF LD.AO FOR DE-NOVA CONSIDERATION. 8. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED ON THE 21 ST SEPTEMBER, 2017 AT CHENNAI. SD/- ( . ) (A. MOHAN ALANKAMONY) / ACCOUNTANT MEMBER #$ /CHENNAI, %& /DATED 21 ST SEPTEMBER, 2017 RSR & () *) /COPY TO: 1. /APPELLANT 2. /RESPONDENT 3. - ( )/CIT(A) 4. - /CIT 5. )./ 0 /DR 6. /1 /GF