SMT. MAHADEVAMMA SUNDAR, CHENNAI V. ITO, NCW - 20(5), CHENNAI

ITA 1332/CHNY/2019

• Counselvise Citation: [2021] 109 COUNSELVISE.COM (IT) 8048 (ITAT-CHENNAI)
• Duration Of Justice: 1 year(s) 8 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-01-2021
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: C
• Assessment Year: 2014-2015
• Appeal Filed On: 02-05-2019
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: G JOHNSON
• Assessee Lawyers: S SRIDHAR
• Keywords: Unexplained cash credit; Source of fund
• Section: 143(1)

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, CHENNAI . , , BEFORE SHRI DUVVURU RL REDDY, JUDICIAL MEMBER AND SHRI S. JAYARAMAN, ACCOUNTANT MEMBER /. I.T.A. NO. 1332/CHNY/2019 / ASSESSMENT YEAR : 2014-15 SMT. MAHADEVAMMA SUNDAR, NEW NO. 151, OLD NO. 68, T.T.K. ROAD, ALWARPET, CHENNAI 600 018. [PAN: AHVPM 5508M] VS. THE INCOME TAX OFFICER, NON-CORPORATE WARD 20(5), CHENNAI 600 034. ( / APPELLANT) ( / RESPONDENT) ' ( / APPELLANT BY : SHRI. S. SRIDHAR, ADVOCATE +,' ( / RESPONDENT BY : SHRI. G. JOHNSON, ADDL. CIT ( /DATE OF HEARING : 01.12.2020 ( /DATE OF PRONOUNCEMENT : 06.01.2021 / O R D E R PER S. JAYARAMAN, ACCOUNTANT MEMBER: THE ASSESSEE FILED THIS APPEAL AGAINST THE ORDE R OF THE COMMISSIONER OF INCOME TAX (APPEALS)-14, CHENNAI, IN ITA NO. 281/C IT(A)-14/2016-17 DATED 30.01.2019 FOR ASSESSMENT YEAR 2014-15. :-2-: ITA NO.1332/CHNY/2019 2. SMT. MAHADEVAMMA SUNDAR, THE ASSESSEE FILED HER RETURN OF INCOME FOR ASSESSMENT YEAR 2014-15 ADMITTING THE TOTAL INCOME OF RS. 10,66,920/- AND AN AGRICULTURAL INCOME OF RS. 25,05,000/-. DURING THE SCRUTINY PROCEEDINGS, THE AO FOUND THAT THE ASSESSEE HAD DEPOSITED IN BANK ON VA RIOUS DATES TO THE EXTENT OF RS. 69,80,000/-. AFTER EXAMINING THE ASSESSEES CL AIM THE AO REFUSED TO ACCEPT THE ASSESSEES EXPLANATION TOWARDS THE SOURCES OF D EPOSITS IN THE BANK ACCOUNT AND ASSESSED RS. 25,05,000/- AS INCOME FROM OTHER S OURCES AND RS. 44,75,000/- AS AN UNEXPLAINED CASH CREDITS U/S. 68. AGGRIEVED, THE ASSESSEE FILED AN APPEAL BEFORE THE CIT(A). AFTER CONSIDERING THE ASSESSEE S SUBMISSIONS ETC, THE LD CIT(A) UPHELD ADDITION OF RS. 16,00,000/- AS AN INC OME FROM OTHER SOURCES AND RS. 29,00,000/- AS AN UNEXPLAINED CREDITS U/S. 68. AGGRIEVED AGAINST THAT ORDER, THE ASSESSEE FILED THIS APPEAL. 3. THE CASE WAS POSTED FOR HEARING THROUGH VIDEO CO NFERENCING. THE LD. AR SUBMITTED THAT THE ASSESSEES SOURCE OF INCOME ARE RENTAL INCOME FROM PROPERTY, ONE OF THE TENANT IS INDIAN OVERSEAS BANK ITSELF AN D INTEREST INCOME FROM BANK DEPOSITS AND AGRICULTURAL INCOME ONLY. THE ASSESSE E HAS BEEN OFFERING AGRICULTURAL INCOME EVERY YEAR FOR MORE THAN 20 YEA RS AND SHE OWNS 41.5 ACRES OF AGRICULTURAL LAND. THE ASSESSEE HAS PRODUCED RE LEVANT MATERIAL AND CERTIFICATES THAT SHOWN AGRICULTURAL ACTIVITIES. THE ASSESSING OFFICER HAS ALSO VERIFIED THE BILLS FOR PURCHASE OF MANURES AND PAYMENT OF LABOUR ETC. OUT OF ALL THE DEPOSITS IN THE BANK AT RS. 69,80,000/- ON VARIOUS DATES, THE A SSESSEE EXPLAINED THAT THE SOURCES OF DEPOSITS ARE OUT OF AGRICULTURAL INCOME OF CURRENT YEAR AND OUT OF :-3-: ITA NO.1332/CHNY/2019 AGRICULTURAL INCOME EARNED IN THE EARLIER YEARS. H OWEVER, THE ASSESSING OFFICER REFUSED TO ACCEPT THE EXPLANATION AND ASSESSED RS. 25,05,000/- AS INCOME FROM OTHER SOURCES AND ADDED RS. 44,75,000/- AS AN UNEXP LAINED CASH CREDITS U/S. 68. BEFORE THE COMMISSIONER OF APPEALS, A STATEMENT OF AGRICULTURAL INCOME FROM FINANCIAL YEAR 2009-10 WAS FILED WHICH SHOWS YEAR W ISE AGRICULTURAL INCOME, THE AMOUNT DEPOSITED IN BANK YEAR WISE AND AMOUNT CARRY FORWARD AS CASH IN HAND AFTER DEDUCTING THE DRAWINGS AND OTHER EXPENSES TO PROVE THAT THE SOURCES OF DEPOSITS ARE OUT OF AGRICULTURAL INCOME. THE LD. AR INVITING OUR ATTENTION TO THE PAPERBOOK WHEREIN, CUMULATIVE CASH FLOW FROM AGRICU LTURAL ACTIVITIES FROM FINANCIAL YEAR 2009-10 TO 2013-14 IS IN PAGE NO. 14 8 AND OTHER DOCUMENTS SUBMITTED THAT WHEN THE ASSESSEES ADMITTED AGRICUL TURAL INCOME FROM ASSESSMENT YEAR 2009-10 ONWARDS IS ACCEPTED BY THE DEPARTMENT, AND HER SOURCES OF INCOME BEING THE RENT RECEIVED FROM TENA NTS WHICH INCLUDED EVEN INDIAN OVERSEAS BANK AND WHEN THE ASSESSEE IS NOT H AVING ANY BUSINESS ACTIVITIES TO EARN OTHER INCOME, THE LD. CIT(A) COU LD HAVE CALLED FOR A REMAND REPORT FROM ASSESSING OFFICER OR OUGHT TO HAVE EXAM INED THE ASSESSEES CLAIM. WITHOUT DOING SO, THE LD. CIT(A) SIMPLY ACCEPTED TH E SOURCES OF DEPOSITS TO THE EXTENT OF ADMITTED AGRICULTURAL INCOME OF THE CURRE NT YEAR AND RS. 16,00,000/- DEPOSITED ON 04.03.2004 OUT OF CLOSURE OF FD. THE ASSESSING OFFICER BASICALLY HAD A PRE-DETERMINED OPINION THAT JUST BECAUSE AN A MOUNT IS NOT DEPOSITED IN BANK FOR A CERTAIN PERIOD, IT WOULD BE FROM AN UNEX PLAINED SOURCES AND ASSESSED THE INCOME WITHOUT EXAMINING THE FACTS AND CIRCUMST ANCES AND THE MATERIAL FILED BEFORE HIM. THE LD. CIT(A) ALSO FAILED TO APPRECIA TE THE MATERIAL FURNISHED :-4-: ITA NO.1332/CHNY/2019 BEFORE HIM AND CONCLUDED THE APPEAL BASED ON THE SA ME SATISFACTION RECORDED BY THE ASSESSING OFFICER. THE ASSESSEES ADMITTED AGR ICULTURAL INCOME IN THE EARLIER YEARS HAVE BEEN ACCEPTED BY THE DEPARTMENT BOTH U/S . 143(1) UNDER SCRUTINY ASSESSMENTS. THE AGRICULTURAL INCOME ADMITTED BY T HE ASSESSEE DURING THE CURRENT YEAR IS ALSO ACCEPTED UP TO THE LEVEL OF LD . CIT(A) WITHOUT ANY VARIATION. THE ASSESSEES SUBSTANTIAL INCOME IS FROM AGRICULTU RAL OPERATIONS AND SHE HAS PRODUCED SUBSTANTIAL EVIDENCES ETC. SHE IS HAVING O NLY RENTAL INCOME AS OTHER SOURCES. THOUGH, SHE IS NOT REQUIRED TO MAINTAIN A NY BOOKS OF ACCOUNT IN RESPECT OF THE AGRICULTURAL INCOME, THERE IS NO PRO HIBITION IN LAW TO RETAIN THE CASH IN HAND ETC., SHE HAS FILED THE CASH FLOW STAT EMENTS ETC TO PROVE THAT THE SOURCES OF IMPUGNED DEPOSITS BEFORE THE LD. CIT(A). INVITING OUR ATTENTION TO THE VARIOUS COPIES OF REVENUE RECORDS WHICH IS SHOW ING THE NATURE OF LAND, CUMULATIVE CASH FLOW STATEMENT ETC., THE LD. AR PLE ADED THAT THE CONCLUSION ARRIVED BY THE LD. CIT(A) AND THE LOWER AUTHORITIES WITHOUT DUE CONSIDERATION OF THE MATERIAL PLACED BEFORE THEM IS NOT JUSTIFIED AN D HENCE PLEADED TO ALLOW THE APPEAL. 4. PER CONTRA, THE LD. DR SUBMITTED THAT THE LD. CI T(A) DULY CONSIDERED THE ASSESSEES SUBMISSIONS AND GAVE DUE CREDIT FOR THE DEPOSITS MADE ON 24.04.2013, 17.12.2014, 24.02.2014, 04.06.2014 TO T HE EXTENT OF RS. 24,80,000/-. HOWEVER, FOR THE DEPOSITS MADE ON 29. 03.2014 RS. 16LAKHS + 8 LAKHS AND 29.03.2014 AT RS. 24 LAKHS CLAIMED TO HA VE BEEN OUT OF AGRICULTURAL INCOME OF EARLIER YEARS, THE LD. CIT(A) DULY CONSI DERED THE EXPLANATION GIVEN BY :-5-: ITA NO.1332/CHNY/2019 THE ASSESSEE THAT THE BANK IS LOCATED IN A FAR AWAY WAS DISPROVED BY THE ASSESSING OFFICER. EVEN IF THERE WAS EARLIER YEARS INCOMES AVAILABLE IN THE HANDS OF THE ASSESSEE, THE SAME MUST HAVE BEEN DEPOSITED AS ON 20.04.2013, WHEN THE ASSESSEE MADE THE FIRST DEPOSIT WITH THE BANK D URING THE YEAR AND THERE IS NO REASON WHY THE ASSESSEE WAS HOLDING THE AMOUNT TILL 29.03.2014. THEREFORE, THE LD. CIT(A) HAS CORRECTLY DECIDED THE APPEAL AND ACC ORDINGLY SUPPORTED THE ORDERS OF THE LOWER AUTHORITIES. 5. WE HEARD THE RIVAL SUBMISSIONS AND GONE THROUGH THE RELEVANT MATERIAL. THE ASSESSEES SOURCES OF INCOME ARE RENTAL INCOME, INTEREST FROM BANK RECEIPTS AND AGRICULTURAL INCOME. SUBSTANTIAL AGRICULTURAL INCOME IS ADMITTED BY THE ASSESSEE AND THE SAME HAS BEEN ACCEPTED FROM THE AS SESSMENT YEARS 2009-10, 2010,-11 & 2013-14 U/S. 143(1) AND FOR THE ASSESSME NT YEARS 2012-13 & 2014- 15 UNDER SCRUTINY. THE ADMITTED INCOME IS NOT VARI ED DURING THE PERIOD RELEVANT TO THIS ASSESSMENT YEAR 2014-15 ALSO. THE ASSESSEE PLEADS THAT THE SOURCES OF DEPOSITS IN THE BANK ACCOUNTS ARE FROM AGRICULTURAL INCOME RETAINED FROM THE EARLIER YEARS AND FILED DETAILED CASH FLOW STATEMEN T ETC BEFORE THE LD. CIT(A) WHICH SHOULD HAVE BEEN DULY EXAMINED WITH THE RELEV ANT FACTS AND CIRCUMSTANCES OF THE ASSESSEE. SINCE, IT HAS NOT BEEN DONE IN TH IS CASE, IN THE INTERESTS OF JUSTICE, WE ARE OF THE VIEW THAT THIS ISSUE REQUIRE S TO BE REMITTED BACK FOR A FRESH EXAMINATION AT A LEVEL OF AO. THEREFORE, WE DEEM I T FIT TO REMIT THIS ISSUE BACK TO THE AO FOR A FRESH EXAMINATION. THE ASSESSEE SHALL FURNISH THE RELEVANT PARTICULARS/MATERIALS IN SUPPORT OF HER CONTENTION AND COMPLY WITH THE :-6-: ITA NO.1332/CHNY/2019 REQUIREMENTS OF THE AO IN ACCORDANCE WITH THE LAW. THE AO ON DUE EXAMINATION OF THEM AND AFTER GIVING DUE OPPORTUNIT Y TO THE ASSESSEE, SHALL DECIDE THE ISSUE IN ACCORDANCE WITH LAW BY A SPEAKI NG ORDER. 6. IN THE RESULT, THE ASSESSEES APPEAL IS TREATED AS PARTLY ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED ON 06 TH JANUARY, 2021 AT CHENNAI. SD/- ( . ' ) (DUVVURU RL REDDY) $% /JUDICIAL MEMBER SD/- ( ) (S. JAYARAMAN) % /ACCOUNTANT MEMBER /CHENNAI, 1 /DATED: 06 TH JANUARY, 2021 JPV (+3454 /COPY TO: 1. ' / APPELLANT 2. +,' /RESPONDENT 3. 6 ) ( /CIT(A) 4. 6 /CIT 5. 4+ /DR 6. 9 /GF