Shri Arunkumar A.Modi, Baroda V. The Income tax Officer,Ward-2(4), Baroda

ITA 1446/AHD/2011

• Counselvise Citation: [2013] 140 COUNSELVISE.COM (IT) 67767 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 5 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-10-2013
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2007-2008
• Appeal Filed On: 20-05-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S C TIWARI
• Assessee Lawyers: SUNIL H TALATI
• Keywords: Unexplained investment

Judgement Text

, , , , , , , , IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCH C BENCH, AHMEDABAD .., ! ! ! ! ' #$, BEFORE SHRI N.S. SAINI, ACCOUNTANT MEMBER AND SHRI KUL BHARAT, JUDICIAL MEMBER !./ I.T.A. NO.1446/AHD/2011 ( & '& & '& & '& & '& / / / / ASSESSMENT YEAR : 2007-08) SHRI ARUNKUMAR A.MODI 59, HARINAGAR SOCIETY CHAUDHARY MARG GOTRI ROAD BARODA / VS. THE ITO WARD-2(4) BARODA ( !./)* !./ PAN/GIR NO. : AAUPM 0015 D ( (+ / // / APPELLANT ) .. ( ,-(+ / RESPONDENT ) (+ . / APPELLANT BY : SHRI SUNIL H.TALATI ,-(+ / . / RESPONDENT BY : SHRI S.C.TIWARI, DR ' 0 / $1 / / / / DATE OF HEARING : 21/10/2013 23' / $1 / DATE OF PRONOUNCEMENT : 21/10/2013 4 / O R D E R PER SHRI KUL BHARAT, JUDICIAL MEMBER : THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST T HE ORDER OF THE LD.COMMISSIONER OF INCOME TAX(APPEALS)-II, BARODA (CIT(A) FOR SHORT) DATED 10/01/2011 PERTAINING TO ASSESSMENT Y EAR (AY) 2007-08. THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS OF A PPEAL:- YOUR APPELLANT BEING DISSATISFIED WITH THE ORDER D ATED 10-01-2011 PASSED BY THE HONBLE COMMISSIONER OF INCOME TAX (A PPEALS)-II, BARODA PRESENTS THIS APPEAL AGAINST THE SAID ORDER ON THE FOLLOWING AMONGST OTHER GROUNDS:- ITA NO1446 /AHD /2011 SHRI ARUNKUMAR A.MODI VS. ITO ASST.YEAR 2007-08 - 2 - 1. THE ORDER PASSED BY THE HONORABLE COMMISSIONER OF I NCOME TAX (APPEALS) IS BAD IN LAW, CONTRARY TO LEGAL PRONOUNC EMENTS AND SAME BE QUASHED. 2. THE HONBLE CIT(A) HAS ERRED IN CONFIRMING THE ADDI TION OF ` .500000 MADE BY THE AO, WITHOUT APPRECIATING THE FA CTS SUBMITTED ON 26.12.2010 AND FURTHER FACTS SUBMITTED DURING THE COURSE OF HEARING. THE HONBLE CIT(A) HAS FAILED T O CONSIDER THE DOCUMENTS SUBMITTED (UTI BANK STATEMENT) AND CO NFIRM THE ADDITION MADE BY AO. YOUR APPELLANT THEREFORE SUBM ITS TO DELETE THE ADDITION CONFIRMED BY HONBLE CIT(A). YOUR APPELLANT CRAVES FOR LEAVE TO ADD/ALTER/AMEND/ WITHDRAW/MODIFY AND OF THE ABOVE GROUNDS BEFORE HEARING. 2. AT THE OUTSET, LD.COUNSEL FOR THE ASSESSEE SHRI SUNIL H.TALATI SUBMITTED THAT HE DOES NOT WISH TO PRESS GROUND NO.1, THE SAM E IS DISMISSED AS NOT PRESSED. 3. THE ONLY ISSUE IS LEFT FOR OUR ADJUDICATION IS A GAINST CONFIRMATION OF ADDITION OF RS.5 LACS BY THE LD.CIT(A). 3.1. BRIEFLY STATED FACTS ARE THAT THE CASE OF THE ASSESSEE WAS PICKED UP FOR SCRUTINY ASSESSMENT AND THE ASSESSMENT U/S.143(3) O F THE INCOME TAX ACT,1961 (HEREINAFTER REFERRED TO AS THE ACT) WAS FRAMED V IDE ORDER DATED 18.10.2009, THEREBY THE ASSESSING OFFICER(AO) MADE ADDITION OF RS.5 LACS ON ACCOUNT OF UNEXPLAINED INVESTMENTS. THE AO OBSERVED THAT THE ASSESSEE HAS FAILED TO FURNISH THE SOURCE OF INVESTMENT WITH SUPPORTING EV IDENCES, I.E. BOOKS OF ACCOUNTS AND BANK STATEMENT. AGAINST THIS, ASSESSE E FILED AN APPEAL BEFORE THE LD.CIT(A), WHO AFTER CONSIDERING THE SUBMISSIONS OF THE ASSESSEE, DISMISSED THE APPEAL. 3.2. NOW, THE ASSESSEE IS FURTHER IN APPEAL BEFORE US. THE LD.COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE AO HAS ERRONEOUSLY MADE ADDITION OF RS.5 LACS AND THE LD.CIT(A) CONFIRMED THE SAME ON THE BASIS THAT MERELY BECAUSE ITA NO1446 /AHD /2011 SHRI ARUNKUMAR A.MODI VS. ITO ASST.YEAR 2007-08 - 3 - INVESTMENTS HAVE BEEN MADE THROUGH BANKING CHANNEL DOES NOT MEAN THAT THEY ARE EXPLAINED FOR TAXATION PURPOSES. LD.COUNSEL FO R THE ASSESSEE SUBMITTED THAT THE SOURCE OF THE INVESTMENT IS WELL ESTABLISHED. HE SUBMITTED THAT THE INVESTMENT HAS BEEN MADE OUT OF MATURED SECURITIES WHICH WERE EXEMPT U/S.10(38) OF THE ACT. LD.COUNSEL FOR THE ASSESSEE DREW OUR ATTENTION TOWARS PAGE NOS.9 & 10 OF THE PAPER-BOOK, WHEREIN THE DETA ILS OF RS.3 LACS AND RS.2,06,543/- HAVE BEEN GIVEN AND THE SAME ARE REF LECTED IN THE BANK STATEMENT OF THE ASSESSEE. ON THE CONTRARY, LD.SR .DR SUPPORTED THE ORDERS OF THE AUTHORITIES BELOW. 4. WE HAVE HEARD THE RIVAL SUBMISSIONS, PERUSED THE MATERIAL AVAILABLE ON RECORD AND GONE THROUGH THE ORDERS OF THE AUTHORITI ES BELOW. DURING THE COURSE OF HEARING, LD.COUNSEL FOR THE ASSESSEE SUBMITTED T HAT HE HAS NO OBJECTION IF THE MATTER IS RESTORED BACK TO THE FILE OF AO FOR VERIF ICATION OF THE DETAILS AS SUBMITTED BY THE ASSESSEE. AFTER CONSIDERING ALL A SPECTS OF THE MATTER, IN THE INTEREST OF JUSTICE, THIS ISSUE IS RESTORED BACK TO THE FILE OF AO AND THE ORDER OF THE LD.CIT(A) ON THIS ISSUE IS HEREBY SET ASIDE. T HE AO IS DIRECTED TO VERIFY THE CLAIM OF THE ASSESSEE AND, ACCORDINGLY, FRAME THE A SSESSMENT ON THIS ISSUE. THIS GROUND OF ASSESSEES APPEAL IS ALLOWED FOR STA TISTICAL PURPOSES ONLY. 5. IN THE RESULT, ASSESSEES APPEAL IS ALLOWED B UT FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN OPEN COURT ON THE DATE MENTIONE D HEREINABOVE ( .. ) (' #$) ( N.S. SAINI ) ( KUL BHARAT ) ACCOUNTANT MEMBER JUDICIAL MEMBER AHMEDABAD; DATED 21/ 10 /2013 71.., .../ T.C. NAIR, SR. PS ITA NO1446 /AHD /2011 SHRI ARUNKUMAR A.MODI VS. ITO ASST.YEAR 2007-08 - 4 - 4 / ,$8 98'$ 4 / ,$8 98'$ 4 / ,$8 98'$ 4 / ,$8 98'$/ COPY OF THE ORDER FORWARDED TO : 1. (+ / THE APPELLANT 2. ,-(+ / THE RESPONDENT. 3. !! $ ': / CONCERNED CIT 4. ':() / THE CIT(A)-II, BARODA 5. 8 #; ,$ , , / DR, ITAT, AHMEDABAD 6. ;<& =0 / GUARD FILE. 4' 4' 4' 4' / BY ORDER, -8$ ,$ //TRUE COPY// > >> >/ // / !) !) !) !) ( DY./ASSTT.REGISTRAR) , , , , / ITAT, AHMEDABAD 1. DATE OF DICTATION .. 21.10.13 (DICTATION-PAD 6- P AGES ATTACHED AT THE END OF THIS FILE) 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER . 21.10.2013 3. DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR.P. S./P.S.. 4. DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE D ICTATING MEMBER FOR PRONOUNCEMENT 5. DATE ON WHICH FAIR ORDER PLACED BEFORE OTHER MEMBER 6. DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR.P .S./P.S.21.10.13 7. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 21.10.13 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