SHRI SURESH KUMAR, BATHINDA V. INCOME TAX OFFICER, WARD-1(2), BATHINDA

ITA 136/ASR/2018

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 3308 (ITAT-AMRITSAR)
• Duration Of Justice: 1 year(s) 5 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-08-2019
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Next Hearing Date: 28-08-2019
• Assessment Year: 2005-2006
• Appeal Filed On: 12-03-2018
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: AMAR PAL MEENA
• Keywords: Peak credit
• Section: 147; 144

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AMRITSAR SMC BENCH, AMRITSAR BEFORE SH. B. R. BASKARAN, ACCOUNTANT MEMBER I.T.A. NO. 136/ASR/2018 A SSESSMENT YEAR: 2005-06 SURESH KUMAR L/H LATE SH. SANT RAM, #6329, MATA RANI WALI GALI, BATHINDA [PAN: AMGPK 5985L] VS. THE INCOME TAX OFFICER, WARD-1(2), BATHINDA (APPELLANT) (RESPONDENT) APPELLANT BY : SH. ASHWANI KALIA ( C.A.) RESPONDENT BY: SH. AMAR PAL MEENA (D.R.) DATE OF HEARING: 28.08.2019 DATE OF PRONOUNCEMENT: 28.08.2019 ORDER PER B. R. BASKARAN, ACCOUNTANT MEMBER: THE ASSESSEE HAS FILED THIS APPEAL CHALLENGING THE ORDER DATED 12-01-2018 PASSED BY LD CIT(A), BATHINDA AND IT RELATES TO THE ASSESSMENT YEAR 2005-06. THE ASSESSEE IS AGGRIEVED BY THE DECISION OF LD CIT(A) IN CONFIRMING THE ADDITION RELATING TO BANK DEPOSITS TO THE EXTENT OF RS.4,15, 000/-. 2. THIS IS SECOND ROUND OF PROCEEDINGS. THE OR IGINAL ASSESSMENT WAS COMPLETED BY THE AO U/S 144 R.W.S. 147 OF THE ACT ON RECEIPT OF INFORMATION THAT THE ASSESSEE HAD MADE CASH DEPOSITS TO THE TUNE OF RS.11.80 LAKH S IN A BANK ACCOUNT. THE AO ASSESSED THE PEAK CREDIT AMOUNT OF RS.9,65,000/-. SINCE THE ASSESSEE HAD EXPIRED, ITA NO. 136/ASR/2018 (AY 2005-06) SURESH KUMAR V. THE ITO 2 THE AO COMPLETED THE ASSESSMENT IN THE NAME OF ONE OF THE LEGAL HEIRS NAMED SHRI SURESH KUMAR. IN THE FIRST ROUND, THE LD CIT(A) SU STAINED THE ADDITION TO THE EXTENT OF RS.5,15,000/-. WHEN THE MATTER REACHED I TAT, THE TRIBUNAL RESTORED THE MATTER BACK TO THE FILE OF AO ON A TECHNICAL ISSUE. THE AO AGAIN COMPLETED THE ASSESSMENT BY DETERMINING TOTAL INCOME AT RS.9,65,0 00/-. IN THE SECOND ROUND, THE LD CIT(A) SUSTAINED ADDITION TO THE EXTENT OF RS.4, 15,000/-. STILL AGGRIEVED, THE ASSESSEE HAS FILED THIS APPEAL. 3. THE LD A.R SUBMITTED THAT THE ASSESSEE WAS A SMALL TIME BUSINESSMAN ENGAGED IN PURCHASE AND SALE OF SMALL BITS OF LAND. HE DID NOT MAINTAIN BOOKS OF ACCOUNTS. HE HAS ALSO SOLD HIS OWN LANDS IN OCTOBE R, 2000, AUGUST 2003 AND JANUARY 2005 FOR RS.3.40 LAKHS, RS.1.00 LAKH AND RS .2.50 LAKHS RESPECTIVELY. THE LD A.R SUBMITTED THAT THE SAVINGS WITH THE ASSESSEE AS WELL AS THE ABOVE SAID SALE PROCEEDS WERE USED TO MAKE IMPUGNED BANK DEPOSITS. HE FURTHER SUBMITTED THE BANK ACCOUNT STOOD IN THE JOINT NAME OF ASSESSEE AN D HIS SON. INVITING MY ATTENTION TO PARAGRAPH 4 OF THE ASSESSMENT ORDER, THE LD A.R SUBMITTED THAT THE AO HIMSELF HAS OBSERVED THAT THE AMOUNT SO DEPOSITED WAS BELO NGED TO EITHER SHRI SANT RAM OR SHRI SURESH KUMAR. HAVING OBSERVED SO, THE AO HAS, HOWEVER, PROCEEDED TO ASSESS ENTIRE DEPOSITS IN THE HANDS OF THE ASSESSEE . HE SUBMITTED THAT SON OF THE ASSESSEE MIGHT HAVE ALSO DEPOSITED HIS OWN FUNDS IN THE IMPUGNED BANK ACCOUNT. SINCE THEY DO NOT MAINTAIN BOOKS OF ACCOUNTS, THE E XPLANATIONS COULD NOT BE PROPERLY SUPPORTED. THE LD A.R SUBMITTED THAT CONS IDERING THE ABOVE SAID SUBMISSIONS, STATUS OF THE ASSESSEES, HUMAN PROBABI LITIES AND SURROUNDING CIRCUMSTANCES, THE ENTIRE ADDITION MAY BE DELETED. ITA NO. 136/ASR/2018 (AY 2005-06) SURESH KUMAR V. THE ITO 3 4. THE LD D.R, ON THE CONTRARY, SUBMITTED THAT THE ASSESSEE HAS NOT PROPERLY PROVED THE SOURCES FOR MAKING DEPOSITS AND ACCORDIN GLY SUBMITTED THAT THE ORDER PASSED BY LD CIT(A) DOES NOT CALL FOR ANY INTERFERE NCE. 5. I HEARD THE PARTIES AND PERUSED THE RECORD. I NOTICE THAT THE ASSESSING OFFICER HAS ASSESSED ENTIRE AMOUNT OF DEPOSITS IN THE HANDS OF THE ASSESSEE, EVEN THOUGH HE HAS OBSERVED THAT THE DEPOSITS BELONGED TO EITHER T HE ASSESSEE OR HIS SON. HENCE, THERE IS A POSSIBILITY THAT A PART OF DEPOSITS COUL D HAVE BEEN MADE BY THE SON OF THE ASSESSEE ALSO. I ALSO NOTICE THAT THE LD CIT(A) HA S NOT GIVEN ANY CREDIT FOR PAST SAVINGS OF THE ASSESSEE. THE LD A.R SUBMITTED THAT THE ASSESSEE WAS A SMALL TIME TRADER IN LANDS AND WAS EARNING MONEY. FURTHER THE ASSESSEE HAS SOLD HIS OWN LANDS FOR AN AGGREGATE AMOUNT OF RS.6.90 LAKHS AND THE LD CIT(A) HAS GIVEN CREDIT ONLY TO THE TUNE OF RS.5.50 LAKHS OUT OF THE ABOVE SAID AMOUNT OF RS.6.90 LAKHS. ACCORDINGLY HE HAS CONFIRMED ADDITION TO THE TUNE O F RS.4,15,000/-. 6. IN MY VIEW, FURTHER CREDIT TOWARDS PAST SAVI NGS OF THE ASSESSEE, DEPOSITS BY SON OF THE ASSESSEE SHOULD ALSO BE GIVEN CONSIDERIN G THE HUMAN PROBABILITIES AND SURROUNDING CIRCUMSTANCES. ACCORDINGLY I ESTIMATE THE PAST SAVINGS OF THE ASSESSEE AT RS.1.25 LAKHS AND THE DEPOSITS BELONGING TO THE SON OF THE ASSESSEE AT RS.1.50 LAKHS. THE AGGREGATE OF BOTH THE AMOUNTS IS RS.2.7 5 LAKHS. ACCORDINGLY I MODIFY THE ORDER PASSED BY LD CIT(A) AND ALLOW CREDIT OF R S.8.25 LAKHS (5.50 + 2.75) AGAINST THE ADDITION OF RS.9.65 LAKHS MADE BY THE A O. ACCORDINGLY, THE ADDITION IS SUSTAINED TO THE EXTENT OF RS.1.45 LAKHS. I ORDER ACCORDINGLY. ITA NO. 136/ASR/2018 (AY 2005-06) SURESH KUMAR V. THE ITO 4 7. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS PARTLY ALLOWED. ORDER PRONOUNCED IN THE OPEN CO URT ON AUGUST 28, 2019 SD/- (B. R. BASKARAN) ACCOUNTANT MEMBER DATE: 28.08.2019 /GP/SR. PS. COPY OF THE ORDER FORWARDED TO: (1) THE APPELLANT: (2) THE RESPONDENT: (3) THE CIT(APPEALS) (4) THE CIT CONCERNED (5) THE SR. DR, I.T.A.T TRUE COPY BY ORDER