The ITO,Vapi Ward-3, Vapi V. Smt. Sushilaben Ambelal Prajapati, Vapi

ITA 1421/AHD/2012

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 76892 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-06-2014
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 24-06-2014
• Assessment Year: 2009-2010
• Appeal Filed On: 28-06-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: P L KUREEL
• Section: 143(3); 69

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, AHMEDABAD (BEFORE SHRI ANIL CHATURVEDI, A.M. & SHRI KUL BHARA T, J.M.) I.T. A. NO. 1421/AHD/2012 (ASSESSMENT YEAR: 2009-10) INCOME-TAX OFFICER, VAPI WARD-3, VAPI. V/S SMT. SUSHILABEN AMBELAL PRAJAPATI C/O. AUTOMOBILES ADVANCE COMPLES, N.H. 8, VAPI. (APPELLANT) (RESPONDENT) PAN: ABGPP6598M APPELLANT BY : SHRI P.L. KUREEL, SR. D.R. RESPONDENT BY : SHRI RAJESH M. UPADHYAY. A.R. ( )/ ORDER DATE OF HEARING : 24-06-2014 DATE OF PRONOUNCEMENT : 30-06-2014 PER SHRI ANIL CHATURVEDI,A.M. 1. THIS APPEAL IS FILED BY THE REVENUE AGAINST THE ORD ER OF CIT(A), VALSAD. DATED 29.03.2012 FOR A.Y. 2009-10. 2. THE FACTS AS CULLED OUT FROM THE MATERIAL ON RECORD ARE AS UNDER. 3. ASSESSEE IS AN INDIVIDUAL STATED TO BE DERIVING INC OME FROM INSURANCE COMMISSION. ASSESSEE FILED HER RETURN OF INCOME FOR AY 09-10 ON 15.3.2010 DECLARING TOTAL INCOME OF RS 2,71,700/-. THE CASE WAS SELECTED FOR SCRUTINY AND THEREAFTER ASSESSMENT WAS FRAMED U/S 143(3) ITA NO 1421 /AHD /2012 . A.Y. 2009-1 0 2 VIDE ORDER DATED 21.11.2011 AND THE TOTAL INCOME WA S DETERMINED AT RS 61,75,700/-. AGGRIEVED BY THE ORDER OF AO, ASSESSEE CARRIED THE MATTER BEFORE CIT(A). CIT(A) VIDE ORDER DATED 29.3.2012 AL LOWED THE APPEAL OF THE ASSESSEE. AGGRIEVED BY THE ORDER OF CIT(A), REV ENUE IS NOW IN APPEAL BEFORE US AND HAS RAISED THE FOLLOWING GROUN DS:- 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CAS E, AND IN LAW, THE LD. CIT(A) HAS ERRED IN DELETING THE ADDITION OF RS. 59,04,000/- MADE BY THE A.O ON ACCOUNT OF UNEXPLAINED CASH DEPOSIT U/S. 69A OF THE I.T. ACT. 4. DURING THE COURSE OF ASSESSMENT PROCEEDINGS AO NOTI CED THAT ASSESSEE WAS HAVING A BANK ACCOUNT WITH BARODA GUJARAT GRAMI N BANK WHICH WAS OPERATED BY HER BUT WAS NOT DISCLOSED IN THE RETURN OF INCOME. ON PERUSAL OF THE BANK STATEMENT OF THE AFORESAID BANK ACCOUNT , AO NOTICED THAT IN THE ACCOUNT CASH DEPOSITS AGGREGATING TO RS 59,04,0 00/- WAS DEPOSITED DURING THE RELEVANT ASSESSMENT YEAR. THE ASSESSEE S UBMITTED THAT SHE WAS DEPOSITING CASH RECEIVED FROM THE CLIENTS WHO ARE R EQUIRED TO INSURE THEIR TWO WHEELERS WHILE PURCHASING IT AND THE AMOUNT DEP OSITED WAS WITHDRAWN TO PAY THE PREMIUM. IN THE ABSENCE OF THE DETAILS LIKE THE NAMES AND ADDRESSES OF THE PURCHASERS OF TWO WHEELE RS, THE SUBMISSION OF THE ASSESSEE WAS NOT FOUND ACCEPTABLE TO THE AO. AO WAS FURTHER OF THE VIEW THAT THAT THE INSURANCE PREMIUM FOR TWO WH EELERS MAY BE BETWEEN RS 2,000 TO RS 10,000 BUT IN THE BANK STATE MENT THERE WERE MANY AMOUNTS IN EXCESS OF RS 20,000/-. HE ACCORDING LY CONSIDERED THE TOTAL CASH DEPOSITS OF RS 59,04,000/- APPEARING IN THE BANK ACCOUNT AS UNEXPLAINED MONEY OF THE ASSESSEE U/S 69A AND ADDED THE SAME TO THE INCOME. AGGRIEVED BY THE ORDER OF A.O, ASSESSEE CAR RIED THE MATTER BEFORE CIT(A). CIT(A) AFTER CONSIDERING THE SUBMISS IONS OF THE ASSESSEE ITA NO 1421 /AHD /2012 . A.Y. 2009-1 0 3 AND THE MATERIAL PLACED ON RECORD, DELETED THE ADDI TION BY HOLDING AS UNDER:- 4.3 DECISION: - I HAVE CAREFULLY CONSIDERED THE OBSERVATION OF TH E A.O IN THE ASSESSMENT ORDER AS WELL AS THE CONTENTION RAISED BY THE AR OF THE APPELLANT . THE AO CONTENDED THAT THE APPELLANT DID NOT DISCLOSE THE ACCOUNT WITH 'BARODA GUJARAT GRAMIN BA NK'S ACCOUNT NO. 2002169 IN THE R/L FILED AND THEREFORE, A.O ADDED AN AMOUNT OF RS. (59,04,000/- (CASH DEPOSIT) TO THE RETURNED INCOME OF RS. 2,71,699/- TREATING THE DEPOSITS IN 'BARODA GUJARAT GRAMIN BANK'S ACCOUNT NO. 2002169 AS UNDISCLOSED INCOME, WHICH IN FACT IS THE INSURANCE PREMIUM COLLECTED FROM THE BUYERS OF HERO HONDA BIKES BY THE APPELLANT AS AGENT OF I.C.I. C.I LOMBA RD GENERAL INSURANCE COMPANY LTD. ON THE OTHER HAND THE ID. AR SUPPLIED RELEVANT DOCUMENTS TO AUGM ENT HIS POSITION THAT THE APPELLANT HAS NOT TAKEN THE INSURANCE PREMIUM DEPOSITED IN BARODA GUJARAT G RAMIN BANK LTD, A/C NO 307501000009201 INTO HER BOOKS OF ACCOUNTS SINCE THE BEGINNING BECAUSE I NSURANCE PREMIUM COLLECTED FROM THE BUYERS OF HERO HONDA BIKE IS ON BEHALF OF ICICI LOMBARD GENER AL INSURANCE CO. LTD. AND NOT A SINGLE PIE WAS EVER USED BY THE APPELLANT FOR HER OWN PURPOSE OUT OF THE ABOVE COLLECTION. TO PROVE THE POINTS THE APPELLANT FILED A. COPY OF THE SAID ACCOUNT WITH BA RODA GUJARAT GRAMIN BANK SHOWING CHEQUES DRAWN IN FAVOUR OF ICICI LOMBARD GENERAL INSURANCE COMPAN Y LTD. [PAGE NO. 3 TO 56 OF PAPER BOOK ENCLOSED]. FURTHER, THE ID. AR CONTENDED THAT IT IS THE POLICY OF ICICI LOMBARD GENERAL INSURANCE COMPANY LTD. TO HAVE BETTER CONTROL OF THE INSURANC E PREMIUM COLLECTED BY THE AGENTS. THE ID. AR ALSO SUBMITTED DETAILS SHOWING THAT THE DEPOSITS ARE SMA LL AMOUNT NOT MORE THAN RS. 1100/- AND THE AMOUNTS REPRESENTS EITHER FRESH PREMIUM OR RENEWAL PREMIUM - DESCRIPTION FOR WHICH IS APPEARING AGAINST EACH ENTRY. IN THIS BACK GROUND WHAT IS VER Y CLEAR AND UNDISPUTED IS THAT THE DEPOSITS IN THE SAID A/C' WAS NOTHING BUT THE INSURANCE PREMIUM COL LECTED FROM THE BIKE OWNERS WHO HAVE INSURED THEIR BIKES WITH ICICI LOMBARD GENERAL INSURANCE CO MPANY LTD. THE EXPLANATION GIVEN BY THE APPELLANT THAT ICICI LOMBARD GENERAL INSURANCE COMP ANY LTD. INSISTS SEPARATE BANK A/C TO BE MAINTAINED BY THE AGENT FOR BETTER CONTROL OF INSUR ANCE PREMIUM IS PLAUSIBLE. I HAVE CONSIDERED THE FACTS OF THE CASE. THE SOURCE OF THE DEPOSITS IN TH E SAID A/C. IS WELL EXPLAINED BY THE APPELLANT' TO THE AO BUT THE A.O DID NOT APPRECIATE PRESUMABLY THE AC COUNT WAS NOT DISCLOSED BY THE APPELLANT IN HER RETURN OF INCOME. THE APPELLANT ALSO DEMONSTRATED H OW THOSE PREMIUM AMOUNT WAS TRANSFERRED TO THE A/C OF ICICI LOMBARD GENERAL INSURANCE COMPANY LTD. IN THESE CIRCUMSTANCES INVOKING SEC.69A OF THE ACT FOR MAKING ADDITION IS NOT JUSTIFIABLE AND ALSO LEGALLY NOT SUSTAINABLE. KEEPING THE INSURER'S PRINCIPLE IN VIEW, THE APPELLANT HAS BEEN MAINTAINI NG SEPARATE A/C TO RECORD THE INSURANCE PREMIUM COLLECTED BY HER ON THE BASIS OF WHICH SHE GETS HER COMMISSION. THESE FACTS HAVE BEEN SUFFICIENTLY EXPLAINED BY THE APPELLANT. THEREFORE, THE AO IS DI RECTED TO DELETE THE ADDITION MADE IN THIS GROUND. ACCORDINGLY, THIS GROUND IS ALLOWED. 5. AGGRIEVED BY THE ORDER OF CIT(A), REVENUE IS NOW IN APPEAL BEFORE US. BEFORE US, LD DR STRONGLY SUPPORTED THE ORDER OF AO . ON THE OTHER HAND, ID AR REITERATED THE SUBMISSIONS MADE BEFORE A.O AN D CIT(A) AND SUPPORTED THE ORDER OF CIT(A). 6. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL ON RECORD. WE FIND THAT WHILE DELETING THE ADDITION, CIT(A) HA S GIVEN A CATEGORICAL FINDING THAT THE DEPOSITS IN THE BANK ACCOUNT WERE INSURANCE PREMIUM COLLECTED FROM THE BIKE OWNERS WHO HAD INSURED THEI R BIKES WITH ICICI ITA NO 1421 /AHD /2012 . A.Y. 2009-1 0 4 LOMBARD GENERAL INSURANCE COMPANY LTD AND THE PREMI UM AMOUNTS WERE TRANSFERRED TO THE ACCOUNT OF ICICI LOMBARD GE NERAL INSURANCE CO LTD. CIT(A) HAS ALSO GIVEN A FINDING THAT THE SOURC E OF THE DEPOSITS IN THE BANK ACCOUNT WAS WELL EXPLAINED BY ASSESSEE AND THE ADDITION U/S 69 WAS LEGALLY NOT SUSTAINABLE. HE HAS FURTHER NOTED THAT THE ASSESSEE HAS BEEN MAINTAINING SEPARATE ACCOUNT TO RECORD THE INSURANC E PREMIUM COLLECTED BY HER ON THE BASIS OF WHICH SHE GETS HER COMMISSIO N. BEFORE US, REVENUE HAS NOT BROUGHT ANY MATERIAL ON RECORD TO C ONTROVERT THE FINDINGS OF CIT(A) AND THEREFORE WE FIND NO REASON TO INTERFERE WITH THE ORDER OF CIT(A). THUS THIS GROUND OF REVENUE IS DIS MISSED. 7. IN THE RESULT THE APPEAL OF REVENUE IS DISMISSED. ORDER PRONOUNCED IN OPEN COURT ON 30 - 06 - 2014. SD/- SD/- (KUL BHARAT) (ANIL CHATURVEDI) JUDICIAL MEMBER ACCOUNTANT MEMBER AHMEDABAD. TRUE COPY RAJESH COPY OF THE ORDER FORWARDED TO: - 1. THE APPELLANT. 2. THE RESPONDENT. 3. THE CIT (APPEALS) 4. THE CIT CONCERNED. 5. THE DR., ITAT, AHMEDABAD. 6. GUARD FILE. BY ORDER DEPUTY/ASSTT.REGISTRAR ITAT,A HMEDABAD