Shri Deepak Indrakumar Bhagchandani, RAJKOT-GUJARAT V. The Income Tax Officer, Ward-1, GANDHIDHAM

ITA 144/RJT/2015

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 8891 (ITAT-RAJKOT)
• Duration Of Justice: 2 year(s) 9 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-02-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2009-2010
• Appeal Filed On: 15-04-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: K L SOLANKI
• Keywords: Salary income; Opportunity of being heard; Source of fund

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL RAJKOT BENCH, RAJKOT [CONDUCTED THROUGH E-COURT AT AHMEDABAD] IZEKSN DQEKJ IZEKSN DQEKJ IZEKSN DQEKJ IZEKSN DQEKJ BEFORE SHRI PRAMOD KUMAR, ACCOUNTANT MEMBER AND SHRI MAHAVIR PRASAD, JUDICIAL MEMBER I.T.A. NO.144/RJT/2015 ( / ASSESSMENT YEAR : 2009-10) SHRI DEEPAK INDRAKUMAR BHAGCHANDANI, KALPESH S. DOSHI & CO. CHARTERED ACCOUNTANTS 411, COSMA COMPLEX MAHILA COLLEGE CIRCLE, RAJKOT 360 001 VS. INCOME TAX OFFICER, WARD -1, GANDHIDHAM. ! PAN/GIR NO. : AKDPB 9154 B ( ' / APPELLANT ) .. ( #' RESPONDENT ) '$ APPELLANT BY : SHRI KALPESH DOSHI, A.R. #'%$ / RESPONDENT BY : SHRI K. L. SOLANKI, SR. D.R. & ' (%) * / DATE OF HEARING 29/01/2018 +,-. %) * / DATE OF PRONOUNCEMENT 12/02/2018 / O R D E R PER MAHAVIR PRASAD, JUDICIAL MEMBER: THIS IS AN APPEAL BY THE ASSESSEE AGAINST THE OR DER OF THE COMMISSIONER OF INCOME TAX(APPEALS)-3, RAJKOT, VIDE APPEAL NO.CIT(A)-3/RJT/0027/2011-12 DATED 09/01/2015 FOR T HE ASSESSMENT YEAR (AY) 2009-10, ON THE FOLLOWING GROUNDS: 1. THAT, THE LEARNED CIT(A) HAS WRONGLY CONFIRMED ADDITIONS WITHOUT AFFORDING PROPER OPPORTUNITY OF BEING HEARD . 2. THAT, THE LEARNED CIT(A) HAS WRONGLY CONFIRM ED ADDITION OF RS.20,42,611/- ON ACCOUNT OF CASH DEPOSITS IN BANK ACCOUNT U/S.69 OF THE I.T. ACT. ITA NO.144/RJT/ 2015 SHRI DEEPAL INDRAKUMAR BHAGCHANDANI VS. ITO ASST.YEAR 2009-10 - 2 - 3. THAT, THE LEARNED CIT(A) HAS WRONGLY CONFIRM ED ADDITION OF RS.55,0507- TOWARDS COMMISSION AND INSURANCE INCOME OF THE I.T. ACT. 4. THAT, THE FINDINGS OF THE LEARNED CIT(A) ARE UNJUSTIFIED AND REQUIRED TO BE DELETED 2. THERE IS DELAY OF 16 DAYS FOR FILING OF APPEAL. LD. AR SUBMITTED AN APPLICATION FOR CONDONATION OF DELAY. WE ARE SATISF IED WITH THE REASONS CONTAINED THEREIN. THEREFORE, WE CONDONE THE DELAY. 3. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSE E IS A SALARIED PERSON. DURING THE YEAR UNDER CONSIDERATION THE ASSESSEE HA S SHOWN SALARY INCOME OF RS.1,68,000/- AND INTEREST INCOME FROM PA RTNERSHIP FIRM OF RS.25,789/-. THE ASSESSEE HAS ALSO CLAIMED DEDUCTIO N UNDER CHAPTER VI-A TO THE TUNE OF RS.46,356/-. THUS TOTAL INCOME OFFER ED FOR TAXATION IS OF RS.1,47,440/-. THE CASE, WAS SELECTED FOR SCRUTINY ON THE BASIS OF AIR DATA. DURING THE COURSE OF PROCEEDINGS SEVERAL NOTICES WE RE ISSUED TO THE ASSESSEE. DETAILS OF SAME AREAS UNDER: NOTICE U/S. DATE OF ISSUE DATE OF HEARING REMARKS NOTICE U/S.143(2) ISSUED 24-09-2010 28-09-2010 NO BODY ATTENDED NOTICE U/S.142(1) ALONG WITH QUESTIONER ISSUED 28-02-2011 23-03-2011 NO BODY ATTENDED NOTICE U/S.129 13-07-2011 19-07-2011 NO BODY ATTENDED NOTICE U/S.271(L)(B) 13-09-2011 19-09-2011 NO BODY ATTENDED ITA NO.144/RJT/ 2015 SHRI DEEPAL INDRAKUMAR BHAGCHANDANI VS. ITO ASST.YEAR 2009-10 - 3 - NOTICE U/S.271(L)(B) 10-10-2011 17-10-2011 NO BODY ATTENDED, A LETTER WAS FILED FINAL SHOW CAUSE NOTICE 17-11-2011 24-11-2011 NO BODY ATTENDED 3.1 ADDITION OF RS.20,42.611/- AS UNEXPLAINED CASH CRE DIT U/S. 69: IN THIS CASE, AIR INFORMATION RELATED TO CASH DEPOS IT OF RS.14,66,611/- IN KOTAK MAHINDRA BANK, SAVINGS BANK ACCOUNT WAS AVAILABLE. AS PER THE ITR FILED THE ASSESSEE HAD OF FERED TOTAL INCOME FOR TAXATION OF RS.1,47,440/-. TO VERIFY THE SOURCE OF CASH DEPOSIT AND TO VERIFY THE BOOKS, THE ASSESSEE WAS ISSUED SEVERAL N OTICES. AS THE ASSESSEE DID NOT PREFER TO SUBMIT ANY DETAILS AS CALLED FOR IN-SPITE OF SUFFICIENT OPPORTUNITIES GIVEN AS ABOVE AND THE AMOUNT OF CASH DEPOSITED IN KOTAK MAHINDRA BANK S.B. ACCOUNT (AS PER AIR REPORT) WAS MUCH HIGHER THAN THE GROSS INCOME OF THE ASSESSEE FOR THE YEAR UNDER CONSIDERATION, THEREFORE THE DETAILS OF THE KOTAK MAHINDRA BANK AC COUNT WERE GATHERED FROM THE KOTAK MAHINDRA BANK U/S.133(6). FROM THE DATA FURNISHED BY THE BANK, IT WAS GATHERE D THAT THE ASSESSEE WAS HAVING AN SAVING ACCOUNT NUMBER 082201 10001382, IN WHICH CASH AMOUNT OF RS.14,66,611/- WAS DEPOSITED O N VARIOUS DATES DURING THE YEAR. A CHEQUE OF RS.5,76,000/- WAS ALSO CREDITED IN TO BANK ACCOUNT ON 05-11-2008 WHICH WAS SUBSEQUENTLY ENCASH ED ON THE SAME DAY. IN THE ABSENCE OF ANY CLARIFICATION THE SOURCE OF THIS CHEQUE DEPOSITED WAS ALSO DOUBTFUL. FURTHER THE AMOUNT O F RS.5,76,000/- WAS NOT RE DEPOSITED IN BANK AS NO CASH WAS DEPOSITED IN THE BANK AFTER THIS WITHDRAWAL DURING THE REST OF THE YEAR. ON PERUSAL OF THE BANK STATEMENT, ITA NO.144/RJT/ 2015 SHRI DEEPAL INDRAKUMAR BHAGCHANDANI VS. ITO ASST.YEAR 2009-10 - 4 - IT WAS ALSO NOTICED THAT THE CASH DEPOSITS WERE SUB SEQUENTLY UTILIZED FOR INVESTMENTS IN SHARES THOUGH KOTAK SECURITIES. FROM THE ABOVE DISCUSSION IT IS VERY MUCH CLEAR THA T ASSESSEE HAD DEPOSITED CASH OF RS.14 66,611/- AND CHEQUE OF RS.5 ,76,000/- IN THE KOTAK MAHINDRA BANK S.B. ACCOUNT ON VARIOUS DATES F OR WHICH NO EXPLANATION WAS OFFERED BY THE ASSESSEE. CONSIDERING THE INCOME OF THE ASSESSEE FOR THE YEAR , IT APPEARS THAT THE TOTAL SUM OF RS.20,42,611/- (14,66,611 + 5,76,0 00/- ) HAS BEEN DEPOSITED IN THE KOTAK MAHINDRA BANK SAVINGS ACCOUN T FROM UNEXPLAINED SOURCES OF INCOME AND THEREFORE AN ADDITION OF RS.2 0,42,611/- IS MADE TO THE TOTAL INCOME OF THE ASSESSEE AS UNEXPLAINED CAS H CREDIT U/S.69. 3.2 ADDITION OF RS.55,050/- TOWARDS COMMISSION AND INS URANCE INCOME. ON VERIFICATION OF 26AS DATA AVAILABLE ON RECORD IN THE CASE, IT WAS GATHERED THAT THE ASSESSEE HAD RECEIVED A COMMISSIO N INCOME OF RS.52,800/- FROM VODAFONE ESSAR GUJARAT LIMITED AND INSURANCE COMMISSION INCOME OF RS.2,250/- FROM MAX NEW YORK L IFE INSURANCE ON WHICH TOTAL TDS AMOUNT OF RS.6,239/- WAS DEDUCTE D. THIS INCOME WAS NOT FOUND REFLECTED IN THE ITR FILED BY THE ASS ESSEE WITH THE DEPARTMENT. HENCE I ALSO MADE AN ADDITION OF RS.55, 050/- TO THE TOTAL INCOME OF THE ASSESSEE AS INCOME NOT OFFERED FOR TA XATION. PENALTY U/S. 271(L)(C) IS INITIATED FOR CONCEALMENT OF INCOME. 3.3 FINALLY AO MADE AN ADDITION OF RS.20,97,661/-. ITA NO.144/RJT/ 2015 SHRI DEEPAL INDRAKUMAR BHAGCHANDANI VS. ITO ASST.YEAR 2009-10 - 5 - 4. AGAINST THE SAID ORDER ASSESSEE PREFERRED FIRST STATUTORY APPEAL BEFORE THE LD. CIT(A). LD. CIT(A) PASSED EX-PARTE ORDER AND CONFIRMED THE ADDITION MADE BY THE LD. AO. 5. WE HAVE GONE THROUGH THE RELEVANT RECORD AND IMP UGNED ORDER. BOTH THE LOWER AUTHORITIES HAVE PASSED EX-PARTE AS ASSESSEE HAVE BEEN FAILED TO APPEAR BEFORE THE AO AND AS WELL AS CIT(A ). IN THE INTEREST OF JUSTICE, WE WOULD LIKE TO GIVE ONE MORE CHANCE TO T HE ASSESSEE TO APPEAR BEFORE THE LD. CIT(A). ORDER OF THE LD. CIT(A) SET ASIDE AND LD. CIT(A) HAS DIRECTED TO DECIDE THE MATTER AFRESH AFTER GIVI NG NOTICE TO THE ASSESSEE AND ASSESSEE IS ALSO DIRECTED TO CO-OPERATE WITH TH E LD. CIT(A) AND SUBMIT THE PAPERS IN SUPPORT OF HIS CONTENTION. 6. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED . THIS ORDER PRONOUNCED IN OPEN COURT ON 12/02/2018 SD/- SD/- IZEKSN DQEKJ IZEKSN DQEKJ IZEKSN DQEKJ IZEKSN DQEKJ EGKOHJ IZLKN EGKOHJ IZLKN EGKOHJ IZLKN EGKOHJ IZLKN YKS[KK LN YKS[KK LN YKS[KK LN YKS[KK LNL; L; L; L; U;KF;D LNL; U;KF;D LNL; U;KF;D LNL; U;KF;D LNL; (PRAMOD KUMAR) ( MAHAVIR PRASAD ) ACCOUNTANT MEMBER JUDICIAL MEMBER AHMEDABAD; DATED 12/02/2018 PRITI YADAV, SR. PS ITA NO.144/RJT/ 2015 SHRI DEEPAL INDRAKUMAR BHAGCHANDANI VS. ITO ASST.YEAR 2009-10 - 6 - COPY OF THE ORDER FORWARDED TO : 1. ' / THE APPELLANT 2. #' / THE RESPONDENT. 3. 012) & 3) / CONCERNED CIT 4. & 3) 45 / THE CIT(A)-3, RAJKOT. 5. 67 8)'12 *12. 0 / DR, ITAT, AHMEDABAD 6. 8 9: ( GUARD FILE. / BY ORDER, # 6)) //TRUE COPY// / !'# ( DY./ASSTT.REGISTRAR) #$ %, / ITAT, AHMEDABAD 1. DATE OF DICTATION 29/01/2018 (DICTATION-PAD 1 P AGES ATTACHED AT THE END OF THIS APPEAL-FILE) 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER 30/01/2018 3. OTHER MEMBER 4. DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR.P. S./P.S.. 5. DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE D ICTATING MEMBER FOR PRONOUNCEMENT 6. DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR.P .S./P.S. 7. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 8. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK ... 9. THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT RE GISTRAR FOR SIGNATURE ON THE ORDER.. 10. DATE OF DESPATCH OF THE ORDER