DR. (MRS) SHOBHA TOMAR, JAIPUR V. ASSISTANT COMMISSIONER OF INCOME TAX, JAIPUR

ITA 14/JPR/2018

• Counselvise Citation: [2018] 121 COUNSELVISE.COM (IT) 6259 (ITAT-JAIPUR)
• Duration Of Justice: 5 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-06-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2015-2016
• Appeal Filed On: 02-01-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ROLI AGARWAL
• Keywords: Unexplained expenditure; Document seized; Documents seized
• Section: 132

Judgement Text

VK;DJ VIHYH; VF/KDJ.K] T;IQJ U;K;IHB] T;IQJ IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHE S, JAIPUR JH FOT; IKWY JKO] U;KF;D LNL; ,OA JH FOE FLAG ;KNO] YS[KK LNL; DS LE{K BEFORE: SHRI VIJAY PAL RAO, JM & SHRI VIKRAM SINGH YADAV, AM VK;DJ VIHY LA-@ ITA. NO. 14/JP/2018 FU/KZKJ.K O'K Z@ ASSESSMENT YEARS : 2015-16 DR. (MRS) SHOBHA TOMAR B-4, GOVIND MARG, ADARSH NAGAR, JAIPUR. CUKE VS. ACIT, CENTRAL CIRCLE-1, JAIPUR LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN/GIR NO.: AALPT 4876 A VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT FU/KZKFJRH DH VKSJ L S@ ASSESSEE BY : SHRI G. M. MEHTA (CA) JKTLO DH VKSJ LS @ REVENUE BY : SMT. ROLI AGARWAL (CIT) LQUOKBZ DH RKJH[ K@ DATE OF HEARING : 19/06/2018 MN?KKS'K.KK DH RKJH[ K@ DATE OF PRONOUNCEMENT : 25/06/2018 VKNS'K@ ORDER PER: VIKRAM SINGH YADAV, A.M. THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST TH E ORDER OF LD. CIT(A)-4, JAIPUR DATED 03.10.2017 FOR ASSESSMENT YE AR 2015-16 WHEREIN THE FOLLOWING SOLE GROUND OF APPEAL HAS BEE N TAKEN:- LD. CIT(A) HAS ERRED IN LAW AND ON FACTS IN SUSTAI NING ADDITION OF RS. 2,68,450/- ESTIMATED FOR FOREIGN TOUR EXPENSES, THO UGH DURING COURSE OF SEARCH U/S 132 OF IT ACT ON 30.10.2014, NO INCRIMIN ATING MATERIAL OR OTHER EVIDENCE WAS FOUND FOR INCURRING SUCH EXPENSE S AS MADE OUT OF HER UNDISCLOSED SOURCES FOR THE REASONS THAT THE SA ME WERE INCURRED BY THE ASSESSEE OUT OF HER SUBSTANTIAL AMOUNT OF DRAWI NGS DURING THE YEAR AS AGAINST LOWER DRAWINGS IN IMMEDIATELY PRECEDING YEAR. ITA NO. 14 /JP/2018 DR. (MRS) SHOBHA TOMAR, VS. ACIT 2 2. BRIEFLY STATED, THE FACTS OF CASE ARE THAT THE A O OBSERVED THAT BASED ON VARIOUS SEIZED DOCUMENTS AND DETAILS COLLE CTED DURING THE COURSE OF POST SEARCH INVESTIGATION, SHRI BALVIR SI NGH TOMAR AND SMT. SHOBHA TOMAR, THE ASSESSEE HAVE FREQUENTLY TRAVELLE D TO FOREIGN COUNTRIES. THE AO DETERMINED AN AMOUNT OF RS. 2,70, 050/- TOWARDS FOREIGN TOUR EXPENSES OF DR. SOBHA TOMAR AND RS. 3, 33,750/- TOWARDS FOREIGN TOUR EXPENSES OF SHRI BALVIR SINGH TOMAR AN D THEREAFTER TAKING INTO CONSIDERATION VISA CHARGES RS. 1,14,000/-, DET ERMINED TOTAL FOREIGN TOUR EXPENSES RS. 7,71,800/-. IT WAS FURTHER OBSERV ED BY THE AO THAT THE NIMS UNIVERSITY HAS PAID RS. 4,54,900/- TOWARDS SUCH FOREIGN TOUR EXPENSES AND THE BALANCE AMOUNT OF RS. 2,62,900/- W AS DETERMINED AS UNDISCLOSED EXPENSES INCURRED IN CASH BY DR. SOBHA TOMAR AND SHRI BALVIR SINGH TOMAR AS NO PROOF WITH REGARD TO THE S OURCE WAS FOUND DURING THE SEARCH AS WELL AS POST-SEARCH PROCEEDING S. A SHOW CAUSE WAS ISSUED TO THE ASSESSEE AND THE RESPONSE SO SUBM ITTED BY THE ASSESSEE WAS HOWEVER, NOT FOUND ACCEPTABLE TO THE A SSESSING OFFICER. THE AO BROUGHT TO TAX HALF OF THE TOTAL UNEXPLAINED EXPENDITURE OF RS. 2,62,900/- TO TAX IN THE HANDS OF THE ASSESSEE. FUR THER HE HAS ESTIMATED EXPENSES OF RS. 97,000/- ON TWO RETURN TR IPS TO LONDON AND RS. 22,000/- AS RETURN TRIP TO SHARJAH. THE AO ACCO RDINGLY MADE AN ADDITION TO RS. 2,68,450/- IN THE HANDS OF ASSESSEE . 3. BEING AGGRIEVED, THE ASSESSEE CARRIED THE MATTER IN APPEAL BEFORE THE LD CIT(A) AND SUBMITTED THAT DURING THE COURSE OF SEARCH PROCEEDINGS, NO INCRIMINATING MATERIAL OR OTHER EVI DENCE WAS FOUND WHICH SHOWS THAT THE APPELLANT HAS INCURRED FOREIGN TOUR EXPENSES, VISA ITA NO. 14 /JP/2018 DR. (MRS) SHOBHA TOMAR, VS. ACIT 3 EXPENSES AND OTHER EXPENSES OUT OF HER UNDISCLOSED SOURCES. IT WAS FURTHER SUBMITTED THAT THE ASSESSEE HAS INCURRED TH E FOREIGN TOUR EXPENSES OUT OF HIS PERSONAL DRAWINGS OF RS. 11,13, 115/- DURING THE YEAR. THE LD. CIT(A) HOWEVER CONFIRMED THE ADDITION RELYING ON THE FINDING OF THE AO THAT THE EXPENSES ON FOREIGN TRAV EL IS NOT RELATABLE TO DRAWINGS AND NO CASH FLOW OR EVIDENCE IS SUBMITTED TO SHOW THAT SUCH CASH PAYMENT HAS BEEN MADE OUT OF THE CUMULATIVE DR AWINGS MADE DURING THE YEAR. FURTHER, LD. CIT(A) REFERRED TO TH E DECISION OF THE SETTLEMENT COMMISSION WHICH HAS ALSO REFUSED TO REC OGNIZE THAT EXPENSES ON SUCH TRIPS HAVE BEEN MADE FROM THE ACCO UNTS OF IMT. 4. NOW, THE ASSESSEE IS IN APPEAL AGAINST THE SAID FINDINGS OF THE LD CIT(A). DURING THE COURSE OF HEARING, THE LD. AR RE ITERATED THE SUBMISSIONS MADE BEFORE THE LOWER AUTHORITIES AND S UBMITTED THAT ADDITIONS HAVE BEEN MADE ON MERE ESTIMATION AND GUE SS WORK WITHOUT ANY INCRIMINATING MATERIAL FOUND DURING THE COURSE OF SEARCH. IT WAS FURTHER SUBMITTED THAT THE ASSESSEE LIVES IN A JOIN T FAMILY IN A HOUSE JOINTLY OWNED ALONG WITH HER HUSBAND, THEREFORE, NO RENT IS PAYABLE FOR RESIDENCE. BESIDES, THE ASSESSEE AND THE FAMILY MEM BERS HAVE DRAWN SUBSTANTIAL AMOUNT OF DRAWINGS IN FY 2014-15 DULY D ISCLOSED IN THEIR RESPECTIVE INCOME TAX RETURNS. IT WAS FURTHER SUBMI TTED THAT THE INDIVIDUAL DRAWINGS OF THE ASSESSEE DURING THE YEAR COMES TO RS. 11,13,115/- WHICH IS SUFFICIENT ENOUGH TO TAKE CARE OF FOREIGN TOUR EXPENSES WHICH HAVE BEEN BROUGHT TO TAX IN THE HAND S OF THE ASSESSEE. 5. THE LD CIT DR IS HEARD WHO HAS VEHEMENTLY ARGUED THE MATTER AND RELIED ON THE FINDINGS OF THE LOWER AUTHORITIES . ITA NO. 14 /JP/2018 DR. (MRS) SHOBHA TOMAR, VS. ACIT 4 6. WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. THE AO HAS MADE AN ADDITION OF RS. 2,68,450/- ON ACCOUNT OF UNEXPLAINED FOREIGN TOUR EXPENSES. THE L D AR HAS REITERATED THE CONTENTIONS RAISED BEFORE THE LD CIT(A) AND SUB MITTED THAT THE ASSESSEES DRAWINGS DURING THE YEAR ARE SUFFICIENT ENOUGH TO EXPLAIN THE SOURCE OF SUCH EXPENDITURE. IN SUPPORT, OUR REFERE NCE WAS DRAWN TO THE ASSESSEES CAPITAL ACCOUNT FOR THE FINANCIAL YE AR ENDED 31 ST MARCH, 2015 WHICH SHOWS TOTAL DRAWINGS OF RS. 11,13,115/-. IT WAS FURTHER SUBMITTED THAT SIMILAR ADDITIONS MADE IN THE HANDS OF DR BALVIR SINGH TOMAR HAVE BEEN RECENTLY DELETED BY THIS BENCH IN ITA NO. 837/JP/2017 DATED 27.04.2018. IN ABSENCE OF ANYTHING CONTRARY ON RECORD, IT WOULD BE REASONABLE TO HOLD THAT THE FOR EIGN TOUR EXPENSES OF RS 2,68,450 ARE MET OUT OF SUCH DRAWINGS OF RS 11,1 3,115. IN THE RESULT, FOLLOWING OUR DECISIONS IN CASE OF DR BALVI R SINGH TOMAR, THE ADDITION MADE BY THE AO IS HEREBY DELETED AND GROUN D OF THE ASSESSEES APPEAL IS ALLOWED. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 25/06/2018. SD/- SD/- FOT; IKY JKO FOE FLAG ;KNO (VIJAY PAL RAO) (VIKRAM SINGH YADAV) U;KF;D LNL;@ JUDICIAL MEMBER YS[KK LNL;@ ACCOUNTANT MEMBER TK;IQJ@ JAIPUR FNUKAD@ DATED:- 25/06/2018. * SANTOSH VKNS'K DH IZFRFYFI VXZSFKR@ COPY OF THE ORDER FORWARDED TO: 1. VIHYKFKHZ@ THE APPELLANT- DR. (MRS) SHOBHA TOMAR, JAIPUR ITA NO. 14 /JP/2018 DR. (MRS) SHOBHA TOMAR, VS. ACIT 5 2. IZR;FKHZ@ THE RESPONDENT- ACIT, CENTRAL CIRCLE-1, JAIPUR 3. VK;DJ VK;QDR@ CIT 4. VK;DJ VK;QDR@ CIT(A) 5. FOHKKXH; IZFRFUF/K] VK;DJ VIHYH; VF/KDJ.K] T;IQJ@ DR, ITAT, JAIPUR. 6. XKMZ QKBZY@ GUARD FILE { ITA NO. 14/JP/2018} VKNS'KKUQLKJ@ BY ORDER, LGK;D IATHDKJ@ ASST. REGISTRAR