S.Alwarappan, Coimbatore V. ITO, Coimbatore

ITA 1377/CHNY/2017

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 6180 (ITAT-CHENNAI)
• Duration Of Justice: 3 month(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-09-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Assessment Year: 2011-2012
• Appeal Filed On: 30-05-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: B SAGADEVAN IRS
• Assessee Lawyers: S SRIDHAR
• Section: 68

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL D (SMC) BENCH : CHENNAI . , [BEFORE SHRI ABRAHAM P. GEORGE, ACCOUNTANT M EMBER ] ./I.T.A. NO. 1377/MDS/2017 / ASSESSMENT YEAR : 2011-2012. S. ALWARAPPAN, 62, CO-OPERATIVE COLONY, K.K. PUDUR, COIMBATORE 641 038. [PAN AERPA 0458D] VS. THE INCOME TAX OFFICER, WARD II(5) COIMBATORE 641 018. ( !' / APPELLANT) ( #$!' /RESPONDENT) / APPELLANT BY : SHRI. S. SRIDHAR, ADVOCATE /RESPONDENT BY : SHRI. B. SAGADEVAN, IRS, JCIT. /DATE OF HEARING : 13-09-2017 !' /DATE OF PRONOUNCEMENT : 15-09-2017 % / O R D E R ASSESSEE THROUGH THIS APPEAL WHICH IS DIRECTED AGA INST AN ORDER DATED 30.03.2017 OF LD. COMMISSIONER OF INCOM E TAX (APPEALS)- 2, COIMBATORE, IS AGGRIEVED ON AN ADDITION OF A9,0 0,000/- UNDER SECTION 68 OF THE INCOME TAX ACT, 1961 (IN SHORT THE ACT). ITA NO.1377/2017 :- 2 -: 2. FACTS APROPOS ARE THAT ASSESSEE A SALARIED EMPLOYE E HAD FILED HIS RETURN FOR THE IMPUGNED ASSESSMENT YEAR D ECLARING INCOME OF A2,50,550/- FROM SALARY AND A5,426/- FROM OTHER SOU RCES. DURING THE COURSE OF THE ASSESSMENT PROCEEDINGS, ASSESSEE WAS REQUIRED TO EXPLAIN SOURCE FOR THE FOLLOWING DEPOSITS IN HIS BA NK ACCOUNT WITH M/S. SBI, SAIBABA COLONY BRANCH, COIMBATORE:- DATE OF DEPOSIT AMOUNT 11.10.2010 9,00,000 13.10.2010 32,000 21.01.2011 8,00,000 25.01.2011 7,00,000 28.01.2011 3,99,000 TOTAL CASH DEPOSITS 28,31,000 ASSESSEE EXPLAINED THE SUM OF A9,00,000/- AS COMING OUT OF A HOUSING LOAN TAKEN FROM THE SAME BANK, WHICH WAS IN THE INT ERIM GIVEN BY HIM AS A TEMPORARY ADVANCE TO ONE OF HIS FRIENDS. AS PER THE ASSESSEE WHEN THE FRIEND RETURNED THE SUM, IT WAS DEPOSITED BY HIM IN THE BANK. OTHER DEPOSITS WERE EXPLAINED AS CASH RECEIVE D FROM HIS MATERNAL UNCLES AND MOTHER. LD. ASSESSING OFFICER DID NOT ACCEPT ITA NO.1377/2017 :- 3 -: THESE EXPLANATIONS. HE MADE AN ADDITION OF A28,31, 000/- AND COMPLETED THE ASSESSMENT. 3. ASSESSEES APPEAL BEFORE THE LD. COMMISSIONER OF IN COME TAX (APPEALS) WAS PARTLY SUCCESSFUL. HE ACCEPTED T HE EXPLANATION AND EVIDENCE FURNISHED BY THE ASSESSEE FOR ALL THE DEP OSITS EXCEPT FOR A9,00,000/- DEPOSITED ON 11.10.2010. ACCORDING TO H IM FOR THE SUM OF A9,00,000/-, ASSESSEE WAS UNABLE TO IDENTIFY THE F RIEND TO WHOM THE MONEY COMING OUT OF THE LOAN FROM SBI WAS GIVEN. AC CORDING TO THE LD. COMMISSIONER OF INCOME TAX (APPEALS) THERE WAS NO C ONFIRMATION FROM SUCH FRIEND AVAILABLE ON RECORD. 4. NOW BEFORE ME, LD. AUTHORISED REPRESENTATIVE SUBMIT TED THAT THE FACTUM OF HOUSING LOAN RAISED BY THE ASSESSEE F ROM SBI WAS NEVER DISPUTED BY THE LOWER AUTHORITIES. THUS, ACCORDING TO HIM, SOURCE STOOD EXPLAINED SINCE ASSESSEE HAD NOT CONSTRUCTED ANY HO USE. 5. PER CONTRA, LD. DEPARTMENTAL REPRESENTATIVE STRONG LY SUPPORTED THE ORDERS OF THE AUTHORITIES BELOW. 6. I HAVE CONSIDERED THE RIVAL CONTENTIONS AND PERUSE D THE ORDERS OF THE AUTHORITIES BELOW. REVENUE HAS NOT DI SPUTED THE HOUSING LOAN TAKEN BY THE ASSESSEE FROM SBI. IT HAS ALSO N OT DISPUTED THAT ASSESSEE HAD DRAWN A9,00,000/- FROM SUCH LOAN ACCO UNT. THERE IS ITA NO.1377/2017 :- 4 -: ALSO NO CASE FOR THE REVENUE THAT HOUSING LOAN WAS RAISED AT A SUBSTANTIALLY EARLIER POINT OF TIME, FOR DISBELIEVI NG THE SOURCE. EVEN, IF I PRESUME THAT ASSESSEE WAS UNABLE TO PROVE HIS GIVIN G THE SUM AS A TEMPORARY LOAN TO HIS FRIEND AND RETURN OF THE AMOU NT FROM HIS FRIEND, THERE CAN BE NO DOUBT THAT ASSESSEE HAD SUFFICIENT SOURCE TO EXPLAIN FROM WHERE THE SUM OF A9,00,000/- HAD ORIGINATED. IN THE CIRCUMSTANCES, I AM OF THE OPINION THAT AN ADDITION COULD NOT HAVE BEEN MADE UNDER SECTION 68 OF THE ACT. SUCH ADDITI ON STANDS DELETED. 7. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED. ORDER PRONOUNCED ON FRIDAY, THE 15 TH DAY OF SEPTEMBER, 2017, AT CHENNAI. SD/- ( . ) (ABRAHAM P. GEORGE) / ACCOUNTANT MEMBER #$ / CHENNAI %& / DATED: 15TH SEPTEMBER, 2017 KV &' ()*) / COPY TO: 1 . / APPELLANT 3. +,- / CIT(A) 5. )./ 0 / DR 2. / RESPONDENT 4. + / CIT 6. /1 / GF