Shri Nirav Ashok Shah, Surat V. The Income tax Officer,Ward-3(3), Surat

ITA 1408/AHD/2011

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 76849 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 1 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-06-2014
• Appeal Filed By: Assessee
• Bench Allotted: C
• Assessment Year: 2007-2008
• Appeal Filed On: 16-05-2011
• Court: TRIBUNAL
• Department Lawyers: ROOP CHAND
• Keywords: Unexplained investment; Gift
• Section: 133(6); 69

Judgement Text

, , , , IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, AHMEDABAD 0 00 0 0 00 0 , , , , !'# !$ !'# !$ !'# !$ !'# !$0 00 0! !! !0 00 0 %$ %$ %$ %$, , , , &' ( &' ( &' ( &' ( & & & & BEFORE SHRI G.C. GUPTA, VICE PRESIDENT AND SHRI N.S. SAINI, ACCOUNTANT MEMBER ITA NO. 1408/AHD/2011 ASSESSMENT YEAR 2007-08 SHRI NIRAV ASHOK SHAH 2-A, PRADAKSHINA APARTMENT PRATISTHAN COMPLEX, PARLE POINT, SURAT. PAN: APRPS0912H VS INCOME TAX OFFICER WARD-3(3), SURAT. )*/ APPELLANT ,-)* / RESPONDENT REVENUE BY : SHRI ROOPCHAND, SR. DR ASSESSEE(S) BY : SHRI MEHUL SHAH, AR $'. / 0'/ // / DATE OF HEARING : 29/05/2014 123 / 0' / DATE OF PRONOUNCEMENT : 20/06/2014 &4 &4 &4 &4/ // / O R D E R PER SHRI N.S. SAINI, ACCOUNTANT MEMBER: THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST O RDER OF THE COMMISSIONER OF INCOME TAX (APPEALS)-II, SURAT DATE D 23.02.2011. 2. THE SOLE GROUND OF APPEAL TAKEN BY THE ASSESSEE IS THAT THE COMMISSIONER OF INCOME TAX (APPEALS) HAS ERRED IN C ONFIRMING THE ACTION OF THE ASSESSING OFFICER IN TREATING THE ENTIRE DEPOSI TS IN THE BANK ACCOUNT OF RS 12, 88,000/- AS ALLEGED UNEXPLAINED INVESTMENT U /S. 69 OF THE ACT. ITA NO. 1408/AHD/2011 NIRAV ASHOK SHAH FOR A.Y. 2007-08 - 2 - 3. THE BRIEF FACTS OF THE CASE ARE THAT DURING THE YEAR UNDER CONSIDERATION, THE ASSESSING OFFICER CAME TO KNOW T HAT THE ASSESSEE WAS HAVING ONE BANK ACCOUNT BEARING NO. 3546 WITH SURAT PEOPLES COOPERATIVE BANK LIMITED, UMRA JAKATNAKA, SURAT WHEREIN CASH OF RS 12,88,000/- WAS DEPOSITED DURING THE PERIOD 01.04.2006 TO 31.03.200 7 AND THAT THE SAID BANK ACCOUNT HAD NOT BEEN DISCLOSED BY THE ASSESSEE DURING THE YEAR UNDER CONSIDERATION. THE ASSESSING OFFICER CALLED FOR A STATEMENT OF ACCOUNT ALONGWITH THE ACCOUNT OPENING FORM AND SPECIMEN SIG NATURE FROM THE BANK U/S. 133(6) OF THE ACT AND FOUND THAT THE ASSESSEE WAS JOINTLY HOLDING THE ACCOUNT WITH SHRI DHAVAL K. PANDYA AND THAT THE BUS INESS ACTIVITY DECLARED BY THE BANK WAS SHARE ACTIVITY. THE ASSESSING OFFI CER ALSO FOUND THAT THE ASSESSEE WAS FIRST HOLDER OF THE BANK ACCOUNT AND T HERE WAS CASH DEPOSIT OF RS 12,88,000/- IN THE SAID ACCOUNT. ACCORDINGLY, S HOW CAUSE NOTICE WAS ISSUED BY THE ASSESSING OFFICER TO THE ASSESSEE TO EXPLAIN THE SOURCE OF DEPOSIT IN THE ABOVE BANK ACCOUNT AND IN ABSENCE OF WHICH, WHY THE SAME SHOULD NOT BE TREATED AS UNEXPLAINED INVESTMENT OF THE ASSESSEE AND ADDED TO THE INCOME OF THE ASSESSEE. THE ASSESSEE EXPL AINED THAT THERE WAS A SOCIAL AND RELIGIOUS EVENT IN HIS FAMILY AND HE REC EIVED VARIOUS SUMS AS GIFT WHICH HE DEPOSITED ON DIFFERENT DATES AND OFFERED C ASH DEPOSITS OF RS 12,88,000/- FOR TAXATION. THE ASSESSING OFFICER RE QUIRED THE ASSESSEE TO PRODUCE THE RELATED PERSONS FROM WHOM GIFT HAD BEEN RECEIVED. HOWEVER, THE ASSESSEE SUBMITTED THAT NO SUCH DETAILS WERE AV AILABLE WITH HIM. THEREFORE, THE ASSESSING OFFICER TREATED AMOUNT OF RS 12,88,000/- AS UNEXPLAINED INVESTMENT AND ADDED THE SAME TO THE IN COME OF THE ASSESSEE. 4. ON APPEAL, THE COMMISSIONER OF INCOME TAX (APPE ALS) CONFIRMED THE ACTION OF THE ASSESSING OFFICER BY OB SERVING AS UNDER: IN VIEW THAT ALL GROUNDS OF APPEAL RELATE TO THE AD DITION OF RS 12,88,000/-, I TAKE ALL OF THEM TOGETHER FOR DISCUS SION AND DISPOSAL. I HAVE DULY CONSIDERED THE SUBMISSION OF THE APPELLANT AND FIND THAT THE APPELLANT HAS NOT DISPUTED THE SU BMISSION ITA NO. 1408/AHD/2011 NIRAV ASHOK SHAH FOR A.Y. 2007-08 - 3 - MADE BY HIM VIDE LETTER DATED 15.12.2009 DURING THE COURSE OF ASSESSMENT PROCEEDINGS. HOWEVER, HE HAS STATED THA T HE HAD OFFERED INCOME ARISING FROM THE ABOVE CASH DEPOSITS FOR TAXATION AND NOT THE ENTIRE AMOUNT OF RS 12,88,000/- ADDED B Y THE ASSESSING OFFICER, AND FURTHER THAT THE OFFER MADE DURING THE COURSE OF ASSESSMENT PROCEEDINGS, WAS CONDITIONAL A ND THAT THERE WAS NET INCOME OF RS 1,42,785/- ONLY FROM THE SAID BANK ACCOUNT ON GIFTS RECEIVED ON SOCIAL AND RELIGIOUS O CCASIONS AND, HAS REQUESTED THAT THE ADDITION MADE BE RESTRICTED TO RS 1,42,785/- ONLY. THE ABOVE SUBMISSION MADE BY THE APPELLANT DURING THE COURSE OF APPELLATE PROCEEDINGS IS CONTR ADICTORY IN THE SUBMISSION MADE VIDE LETTER DATED 15.12.2009 DURING THE COURSE OF ASSESSMENT PROCEEDINGS, WHEREIN, THE APPELLANT H IMSELF STATED HE IS OFFERING CASH DEPOSITS OF RS 12,88,000 /- FOR TAXATION. THE SAID REPLY IS REPRODUCED IN PAGE 3 O F THE ASSESSMENT ORDER. THE APPELLANT HAS DURING THE COU RSE OF APPELLATE PROCEEDINGS NOT FURNISHED ANY EVIDENCE RE LATING TO ALLEGED GIFTS RECEIVED FROM RELATIVES TO EXPLAIN CA SH DEPOSITS OF RS 12,88,000/- IN THE ABOVE BANK ACCOUNT. I, THERE FORE, DO NOT FIND ANY MERIT IN THE SUBMISSION OF THE APPELLANT T HAT THE ABOVE CASH DEPOSITS ARE GIFTS RECEIVED ON VARIOUS SOCIAL AND RELIGIOUS OCCASIONS, WHICH AMOUNT HAS BEEN ALLEGED TO HAVE BE EN USED BY HIM IN SHARE TRADING ACTIVITY. IN VIEW OF THE SAME , I DO NOT FIND ANY REASON TO DISTURB THE FINDING OF THE ASSESSING OFFICER AND CONFIRM THE ADDITION OF RS 12,88,000/-. GROUNDS OF APPEAL NO. 1 TO 4 ARE, ACCORDINGLY, DISMISSED. 5. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE ORDERS OF LOWER AUTHORITIES AND MATERIAL AVAILABLE ON RECORD. IN THE INSTANT CASE, THE ASSESSING OFFICER OBSERVED THAT THE ASSESSEE HAS MA DE DEPOSITS IN CASH AGGREGATING TO RS 12,88,000/- DURING THE PERIOD 01. 04.2006 TO 31.03.2007 IN ACCOUNT NO. 3546 MAINTAINED WITH SURAT PEOPLES COOPERATIVE BANK LIMITED. THE ASSESSEE COULD NOT PRODUCE ANY EVIDEN CE IN RESPECT OF THE SOURCE FROM WHICH SAID CASH DEPOSITS WERE MADE. TH E ASSESSEE HIMSELF IN THE WRITTEN SUBMISSION DATED 15.12.2009 FILED BEFOR E THE ASSESSING OFFICER OFFERED CASH DEPOSIT OF RS 12,88,000/- FOR TAXATION AS HIS INCOME. THEREFORE, THE ASSESSING OFFICER ADDED RS 12,88,000 /- TO THE INCOME OF THE ASSESSEE AS UNEXPLAINED INVESTMENT. ITA NO. 1408/AHD/2011 NIRAV ASHOK SHAH FOR A.Y. 2007-08 - 4 - 6. ON APPEAL, THE COMMISSIONER OF INCOME TAX (APPE ALS) CONFIRMED THE ACTION OF THE ASSESSING OFFICER. 7. BEFORE US, THE AUTHORIZED REPRESENTATIVE OF THE ASSESSEE SUBMITTED THAT ONLY PEAK DEPOSIT IN THE SAID BANK A CCOUNT OUGHT TO HAVE BEEN CONSIDERED AS THE INCOME OF THE ASSESSEE. 8. WE FIND ON PERUSAL OF THE RELEVANT BANK STATEME NT THAT THERE WAS NO WITHDRAWAL OF CASH FROM THE SAID BANK ACCOUN T. NO MATERIAL WAS BROUGHT BEFORE US TO SHOW THAT THE WITHDRAWAL MADE FROM THE BANK ACCOUNT WAS CONVERTED INTO CASH BY THE ASSESSEE AND THEREFO RE THE AMOUNT WITHDRAWN FROM THE BANK WAS AVAILABLE WITH THE ASSE SSEE IN CASH FOR MAKING SUBSEQUENT CASH DEPOSITS IN THE SAID BANK ACCOUNT. IN ABSENCE OF ANY SUCH MATERIAL BROUGHT BEFORE US, WE DO NOT FIND ANY GOOD REASON TO INTERFERE WITH THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEAL S). THEREFORE, THE APPEAL OF THE ASSESSEE IS DISMISSED. ORDER PRONOUNCED IN THE COURT ON FRIDAY, THE 20 TH OF JUNE, 14 AT AHMEDABAD. SD/- SD/- (G.C. GUPTA) VICE PRESIDENT ( N.S. SAINI) ACCOUNTANT MEMBER AHMEDABAD; DATED 20/06/2014 GHANSHYAM MAURYA, SR. P.S.