R.Venkatesh, CHENNAI V. JCIT, CHENNAI

ITA 1356/CHNY/2016

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 9233 (ITAT-CHENNAI)
• Duration Of Justice: 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-05-2016
• Appeal Filed By: Assessee
• Bench Allotted: C
• Assessment Year: 2009-2010
• Appeal Filed On: 17-05-2016
• Court: TRIBUNAL
• Department Lawyers: A V SREEKANTH
• Assessee Lawyers: K RAVI
• Section: 143(3)

Judgement Text

, , IN THE INCOME - TAX APPELLATE TRIBUNAL C BENCH, CHENNAI , . , BEFORE SHRI CHANDRA POOJARI , ACCOUNTANT MEMBER & SHRI DUVVURU RL REDDY , JUDICIAL MEMBER ./ I.T.A.NO. 13 5 6/MDS/2016 / ASSESSMENT YEAR :200 9 - 1 0 SHRI R. VENKATESH, NO. 25/12, C - 1, CEEBROS SHANMUGA VILLA, VENKATARAMAN STREET, T. NAGAR, CHENNAI 600 0 17 . [PAN: A A HPV6258N ] VS. THE JOINT COMMISSIONER OF I NCOME TAX , SALARY RANGE VI, CHENNAI 600 0 34 . ( / APPELLANT ) ( / RESPONDENT ) / APPELLANT BY : SHRI K. RAVI , ADVOCATE / RESPONDENT BY : SHRI A. V. SREEKANTH , J CIT / DATE OF H EARING : 2 5 . 0 5 .201 6 / DATE OF P RONOUNCEMENT : 31 . 0 5 .201 6 / O R D E R PER DUVVURU RL REDDY , JUDICIAL MEMBER : TH I S APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF THE LD. COMMISSIONER OF INCOME TAX (APPEALS) 15 , CHENNAI , DATED 0 4 . 03 .20 1 6 RELEVANT TO THE ASSESSMENT YEAR 200 9 - 1 0 . THE ONLY EFFECTIVE GROUND RAISED IN THE APPEAL OF THE ASSESSEE IS WITH REGARD TO CONFIRMATION OF ADDITION BASED ON CREDIT IN THE BANK ACCOUNT AT .4.00 LAKHS . I.T.A. NO . 13 5 6 /M/ 16 2 2. THE ASSESSEE IS AN I NDIVIDUAL, EARNED INCOME OUT OF SALARY AND FILED HIS RETURN FOR THE ASSESSMENT YEAR 2009 - 10 ON 07.09.2009 ADMITTING TOTAL INCOME OF .1,39,98,324/ - . THE CASE OF THE ASSESSEE WAS SELECTED FOR SCRUTINY AND NOTICE UNDER SECTION 143(2) OF THE INCOME TAX ACT, 1 961 [ ACT IN SHORT] DATED 20.09.2010 WAS ISSUED AND SERVED ON THE ASSESSEE. IN RESPONSE TO THE ABOVE NOTICE, THE AR OF THE ASSESSEE FURNISHED BANK STATEMENTS, FORM 16, DETAILS OF CREDITS IN BANK ACCOUNT, DETAILS OF INTEREST RECEIPTS, DETAILS OF SALE OF SH ARES AND DETAILS OF INVESTMENTS IN MUTUAL FUNDS. AFTER VERIFYING THE DETAILS AND CONSIDERING THE SUBMISSIONS OF THE ASSESSEE, THE ASSESSING OFFICER HAS COMPLETED THE ASSESSMENT UNDER SECTION 143(3) OF THE ACT BY DETERMINING THE TOTAL INCOME OF THE ASSESSEE AT .1,50,35,435/ - AFTER MAKING VARIOUS ADDITIONS. 3. ON APPEAL, THE LD. CIT(A) PARTLY ALLOWED THE APPEAL FILED BY THE ASSESSEE. 4. ON BEING AGGRIEVED, THE ASSESSEE IS IN APPEAL BEFORE THE TRIBUNAL. WITH REGARD TO THE ADDITION MADE BY THE ASSESSING OFFICER, THE LD. COUNSEL FOR THE ASSESSEE HAS SUBMITTED THAT THE ASSESSEE HAS PRODUCED ALL THE DETAILS INCLUDING BANK STATEMENTS OF CITIBANK BEFORE THE AUTHORITIES BELOW , WHICH CLEARLY INDICATES THE SOURCE OF INVESTMENT MADE IN MUTUAL FUNDS. THEREFORE, HE PRAYED THE ADDITION MADE ON THIS ACCOUNT SHOULD BE DELETED. I.T.A. NO . 13 5 6 /M/ 16 3 5. ON THE OTHER HAND, THE LD. DR FAIRLY CONCEDED THAT THE SOURCE FOR INVESTMENT HAS BEEN VERY MUCH AVAILABLE IN THE STATEMENT OF CITIBANK. HOWEVER, HE RELIED ON THE DECISION OF THE AUTHORITIES BELOW. 6. WE HAVE HEARD BOTH SIDES, PERUSED THE MATERIALS ON RECORD AND GONE THROUGH THE ORDERS OF AUTHORITIES BELOW. BASED ON THE AIR INFORMATION, THE ASSESSING OFFICER HAS NOTED THAT THE ASSESSEE HAS INVESTED A SUM OF .4,00,000/ - IN HDFC MUTUAL FUNDS ON 01.12.200 8. SINCE THE AR OF THE ASSESSEE WAS NOT ABLE TO FURNISH THE SOURCE FOR THE INVESTMENT IN MUTUAL FUND, THE ASSESSING OFFICER BROUGHT IT TO TAX. IN THE APPELLATE ORDER, THE LD. CIT(A) HAS ALSO OBSERVED THAT THE ASSESSEE HAS NOT BEEN ABLE TO PRODUCE SOURCE FO R THE INVESTMENT IN MUTUAL FUND, HE CONFIRMED THE ADDITION MADE BY THE ASSESSING OFFICER. BEFORE US, THE LD. COUNSEL FOR THE ASSESSEE HAS STRONGLY CONTENDED THE OBSERVATIONS OF THE AUTHORITIES BELOW AND BY FILING COPIES OF THE BANK STATEMENTS; HE HAS SUBMI TTED THAT THE SOURCE FOR INVESTMENT HAS BEEN VERY MUCH AVAILABLE IN THE STATEMENT OF CITIBANK ACCOUNT OF THE ASSESSEE FOR MAKING INVESTMENT IN HDFC MUTUAL FUND. WE HAVE CAREFULLY PERUSED THE COPIES OF THE BANK STATEMENT OF ACCOUNTS OF THE ASSESSEE FILED BY THE ASSESSEE BEFORE THE TRIBUNAL AND FOUND THAT IN THE STATEMENT OF CITIBANK ACCOUNT, AS ON 02.09.2008, IT REFLECTS AN INVESTMENT OF .4,00,000/ - AND THE SAME WAS MATURED AND INVESTED IN HDFC MUTUAL FUND . I.T.A. NO . 13 5 6 /M/ 16 4 ACCORDINGLY, WE SET ASIDE THE ORDER PASSED BY THE LD. CIT(A) ON THIS ISSUE AND DELETE THE ADDITION MADE BY THE ASSESSING OFFICER. 7 . IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED . ORDER PRONOUNCED ON THE 31 ST MAY , 201 6 AT CHENNAI. SD/ - SD/ - ( CHANDRA POOJARI ) ACCOUNTANT MEMBER ( DUVVURU RL REDDY ) JUDICIAL MEMBER CHENNAI, DATED, THE 31 . 0 5 .201 6 VM/ - / COPY TO: 1. / APPELLANT , 2. / RESPONDENT , 3. ( ) / CIT(A) , 4. / CIT , 5. / DR & 6. / GF.