ITO, New Delhi V. Sh. Ranbir Singh, Delhi

ITA 1454/DEL/2013

• Counselvise Citation: 145420114 RSA 2013
• Duration Of Justice: 1 year(s) 6 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-09-2014
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: F
• Next Hearing Date: 04-08-2014
• Assessment Year: 2008-2009
• Appeal Filed On: 11-03-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MANOJ KUMAR CHOPRA
• Assessee Lawyers: AMIT KUMAR
• Keywords: Unexplained cash credit; Income from undisclosed sources; Peak credit

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: F NEW DELHI BEFORE SMT DIVA SINGH, JUDICIAL MEMBER AND SH. J.S.REDDY, ACCOUNTANT MEMBER I.T.A .NO. - 1454 /DEL/201 3 (ASSESSMENT YEAR - 2 008 - 09 ) ITO, WARD - 44(1), NEW DELHI (APPELLANT) VS RANBIR SINGH, S/O - SH. RISHAL SINGH, HOUSE NO.324, VILL. & P.O. - PEHLADPUR NANGER, DELHI PAN - APOPS7163P (RESPONDENT) APPELLANT BY SH. MANOJ KUMAR CHOPRA, SR. DR RESPONDENT BY SH. AMIT KUMAR, CA ORDER PER DIVA SINGH, JM TH IS IS AN APPEAL FILED BY THE REVENUE AGAINST THE ORDER DATED 11 . 1 2 .201 2 OF THE CIT(A) - XXX, NEW DELHI PERTAINING TO 200 8 - 0 9 ASSESSMENT YEAR ON THE FOLLOWING GROUNDS: - 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE LD. CIT(A) HAS ERRED IN RESTRIC TING THE ADDITION TO RS.3,27,626/ - BY TAKING THE PEAK OF CREDIT AS AGAINST ADDITION OF RS.18,95,500/ - MADE BY THE AO WITHOUT ANALYZING THE ENTIRE FLOW STATEMENT OF THE ASSESSEE. 2. THE APPELLANT CRAVES LEAVE TO ADD, ALTER, AMEND ANY GROUND(S) OF APPEAL RAISED ABOVE AT THE TIME OF THE HEARING. 2. THE RELEVANT FACTS OF THE CASE ARE THAT THE ASSESSEE DECLARED AN INCOME OF RS.3,00,450/ - AS SALARY FROM AIRPORT AUTHORITY OF INDIA. THE RETURN FILED ON 27.09.2008 WAS SELECTED FOR SCRUTINY THROUGH CASS SINCE AS PER THE AIR INFORMATION THE ASSESSEE WAS FOU ND TO HAVE DEPOSITED CASH OF RS.30,70,500/ - IN A SAVING BANK A/C WITH ORIENTAL B ANK OF COMMERCE, PEHLADPUR BANGER BRANCH, DELHI IN THE YEAR UNDER CONSIDERATION. THE ASSESSEE WAS REQUIRED TO EXPLAIN THE SAME. THE EXPLANATION BY WAY IN AN AFFIDAVIT THAT TH E AMOUNT WAS WITHDRAWN TO 2 I.T.A .NO. - 1454 /DEL/201 3 LEND MONEY TO HIS RELATIVES AND REPAYMENT OF LOANS BY THE M WAS DEPOSITED BACK IN THE BANK WAS NOT ACCEPTED. IN VIEW OF THE SAME THE TOTAL AMOUNT OF RS.18,95,500/ - WAS TREATED AS UNEXPLAINED DEPOSIT AND ADDED TO THE INCOME OF THE ASSESSEE. IN APPEAL BEFORE THE FIRST APPELLATE AUTHORITY IT WAS CONTENDED THAT TOTAL CASH DEPOSITED CANNOT BE TREATED AS INCOME FROM UNDISCLOSED SOURCES. IT WAS CONTENDED THAT AT BEST CASH PEAK OF RS. 2,86,500/ - COULD BE ADDED IN TERMS OF THE JUDGEMENT OF THE VARIOUS HIGH COURTS: - (I) CIT VS VIJAY AGRICULTURE INDUSTRIES [2007] 294 ITR 0610; (II) CIT VS P.M.P SOUNDARA PANDIAN AND BROS [1983] 140 ITR 0385 ; (III) CIT VS NURUDIN AND BROTHERS [1990] 185 ITR 0481 3. CONSIDERING THE SAME THE CIT(A) CAME TO THE FOLLOWING CONCLUSIONS: - 7. I HAVE PERUSED THE ASSESSMENT ORDER, GROUNDS OF APPEALS, WRITTEN SUBMISSION AND DISCUSSED THE MATTER W ITH THE AR OF THE ASSESSEE VERY CAREFULLY. I AM OF THE VIEW THAT IT COULD BE UNJUSTIFIED IF THE FULL AMOUNT OF RS.18,95,500/ - BEING TOTAL UNEXPLAINED CASH DEPOSIT AS DETERMINED BY THE ASSESSING OFFICER IS TREATED AS THE INCOME OF APPELLANT. THERE IS TOTA L WITHDRAWAL OF RS.47,11,000/ - OF CASH FROM BANK A/C DURING THE F.Y.2007 - 08 AND TOTAL CASH DEPOSIT OF RS.30,70,500/ - . THE ASSESSING OFFICER HAS NOT CONSIDERED THE VARIOUS AMOUNTS OF WITHDRAWALS OF DATED 06.07.2007, 07.08.2007, 10.08.2007, 21.08.2007, 25.0 9.2007 AND 01.10.2007. FURTHER THE TOTAL UNEXPLAINED CASH DEPOSIT CAN NOT BE TREATED AS THE INCOME FO THE ASSESSEE AND ONLY THE AMOUNT OF PEAK CREDIT CAN BE ADDED AS UNEXPLAINED CASH CREDIT AS ALSO DECIDED IN VARIOUS JUDGEMENTS SUBMITTED BY THE ASSESSEE. I ATTACH THE CASH DEPOSIT/WITHDRAWAL ANALYSIS OF BANK A/C FOR READY REFERENCE. FROM THIS ANALYSIS, O.B. OF RS.41,126/ - AND CASH PEAK CREDIT OF RS.2,86,500/ - ARE REQUIRED TO BE ADDED TO THE INCOME OF APPELLANT. THE APPELLANT RECEIVED COMPENSATION AGAINST LAND ACQUISITION BY DELHI GOVT. IN F.Y. 2004 - 05. IN ORDER TO RUN HIS FAMILY, HE INVITES THIS MONEY ON MONEY LENDING/ SUCH TYPE OF BUSINESS WHERE EXTRA INCOME IN THE FORM OF INTEREST IS RECEIVED. TO GIVE JUSTICE TO REVENUE, I ADD RS.30,000/ - AS EXTRA INC OME ON ESTIMATE BASIS. 4. THE L D . SR. DR PLACES RELIANCE UPON THE ASSESSMENT ORDER. LD. AR OF THE ASSESSEE RELYING UPON THE IMPUGNED ORDER MADE A SPECIFIC REFERENCE TO PAGE 2 OF THE PAPER BOOK WHICH CONTAINS THE CALCULATION SHEET OF CASH PEAK ON THE BASIS OF WHICH IT WAS REQUESTED THAT PEAK CREDIT AT BEST COULD HAVE BEEN ADDED. REFERRING TO ASSESSMENT ORDER IT WAS SUBMITTED THAT THE STATEMENT SHOWING CASH DEPOSITED AND CASH WITHDRAWN HAS BEEN REPRODUCED BY THE AO IN THE ORDER ITSELF AS SUCH ON THE 3 I.T.A .NO. - 1454 /DEL/201 3 SPECIFIC AMOUNTS WITHDRAWN AND DEPOSI TED ALL FACTS ARE AVAILABLE ON RECORD . HEAVY RELIANCE WAS PLACED UPON THE IMPUGNED ORDER ON THE BASIS OF WHICH IT WAS SUBMITTED THAT THE DEPARTMENT S APPEAL BE DISMISSED. 5. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL AVAILABLE ON RECOR D. ON A CONSIDERATION THEREOF, WE FIND THAT NOTHING HAS BEEN PLACED BEFORE US TO SHOW THAT THE CALCULATION OF THE PEAK CREDIT ON THE FACTS IS INCORRECT AND FOR THAT MATTER THAT WHY IN THE PECULIAR FACTS AND CIRCUMSTANCES THE CASE PEAK AMOUNT SHOULD NOT HA VE BEEN CONSIDERED. WE ALSO FIND THAT APART FROM THE PEAK AMOUNT OF RS.2,86,500/ - THE CIT(A) HAS ALSO SUSTAINED THE ADDITION OF O.B. OF RS.41,126/ - AND RS.30,000/ - AS EXTRA INCOME FROM RUNNING THE MONEY LENDING BUSINESS OUT OF THE COMPENSATION, RECEIVED IN FINANCIAL YEAR 2004 - 05 ASSESSMENT YEAR. BEING SATISFIED BY THE REASONING AND FINDING , THE SAME IS UPHELD IN THE ABSENCE OF ANY COGENT ARGUMENTS O N F A C T S A N D L A W TO THE CONTRARY, THE DEPARTMENTAL APPEAL IS DISMISSED. 6 . IN THE RESULT THE APPEAL OF THE DEPARTMENT IS DISM ISSED. THE ORDER IS PRONOUNCED IN THE OPEN COURT ON 1 9 T H OF SEPTEMBER 2014. S D / - S D / - ( J.S.REDDY ) (DIVA SINGH) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 1 9 /0 9 /2014 *AMIT KUMAR* COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI