The ITO, Ward-14(4), Ahmedabad V. Shri Rambilas K.Shukla, Ahmedabad

ITA 1575/AHD/2011

• Counselvise Citation: 157520514 RSA 2011
• Duration Of Justice: 4 year(s) 2 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-08-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Next Hearing Date: 29-07-2015
• Assessment Year: 2008-2009
• Appeal Filed On: 03-06-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PRADIPKUMAR MAJUMDAR
• Section: 143(3); 68

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD D BENCH BEFORE: S H RI G. D. AGRAWAL , VICE PRESIDENT AND SHR I S.S. GODARA , JUDICIAL MEMBER INCOME TAX OFFICER, WARD 14(4), AHMEDABAD (APPELLANT) VS SHRI RAMBILAS K SHUKLA, C/228, RADHE BUNGLOW, NR. KHOKHRA CIRCLE, MANINAGAR, AHMEDABAD PAN: ASYPS1022J (RESPONDENT) REVENUE BY : S H RI PRADIPKUMAR MAJ UMDAR , SR. D . R. ASSESSEE BY: S MT. URVASHI SODHAN , A.R. DATE OF HEARING : 29 - 07 - 2 015 DATE OF PRONOUNCEMENT : 07 - 08 - 2 015 / ORDER P ER : S. S. G ODARA , JUDICIAL MEMBER : - THIS REVENUE S APPEAL FOR A.Y. 2008 - 09, AR ISES FROM ORDER OF THE CIT(A) - XXI, AHMEDABAD DATED 22 - 03 - 2011 IN APPEAL NO. CIT(A)XXI/905/WD.14(4)/ 10 - 11, IN PROCEEDINGS UNDER SECTION 143(3) OF THE INCOME TAX ACT, 1961; IN SHORT THE A CT. I T A NO . 1575 / A HD/20 11 A SSESSMENT YEAR 200 8 - 09 I.T.A NO. 1575 /AHD/20 11 A.Y. 2008 - 09 PAGE NO ITO VS. SHRI RAMBILAS K. SHUKLA 2 2. THE REVENUE SOLE SUBSTANTIVE GROUND CHALLENGES THE CIT(A) ORDER RESTRICTING SECTION 68 ADDITION OF UNEXPLAINED CASH DEPOSIT S O F RS. 27,66,100/ - TO RS. 4,74, 650/ - ONLY . THE ASSESSING OFFICER IN THE COURSE OF SCRUTINY TOOK COGNIZANCE OF ITS DATA DEMONSTRATIN G ASSESSEE TO HAVE DEPOSITED CASH SUM S OF RS. 22,65,750/ - IN HIS BANK ACCOUNT MAINTAINED WITH INDIAN OVERSEAS BANK, AHMEDABAD. HE SOUGHT TO INVOKE SECTION 68. THE A SSESSEE IS A SALARIED PERSON. HE INTER ALIA PRODUCED SUMMARY OF CASH DEPOSIT S IN THE ABOVE SAID BANK ALONG WITH SOURCE AND HIGHLIGHTED THE FACT THAT THE OPENING CASH THEREIN WAS ALREADY OF RS. 4.70 LACS AS ON 01 - 04 - 2007. THE ASSESSING OFFICER SOUGHT FO R DAY TO DAY CASH BOOK , BANK ST ATEMENT AND BOOKS OF ACCOUNT . H E FRAMED A REGULA R ASSESSMENT QUOTING ASSESSEE S FAILURE IN PRODUCING THE SAME AND ADDED THE IMPUGNED SUM OF R S. 27,40,750/ - COMPRISING OF CASH DEPOSIT OF RS. 22,65,750/ - ALONG WITH OPENING BALANCE (SUPRA) AS UNEXPLAINED U/S. 68 OF THE ACT. 3. THE ASSESSEE PREFERRED APP EAL. HE FILED WORKING OF CASH DEPOSITED OUT O F PREVIOUS WITHDRAWALS FROM THE VERY ACCOUNT ALONG WITH PEAK OF THE DEPOSIT S/DEBITS IN COURSE OF LOWER APPELLATE PROCEEDINGS. THE CIT(A) HAS PARTLY ACCEPT ED THE SAME AS UNDER: - 4. I HAVE CONSIDERED THE SUBMIS SION MADE BY THE APPELLANT A N D OBSERVATION OF THE AO . THE APPELLANT HAS EXPLAINED IN DETAIL SUMMARY OF CASH DEPOSITED IN BANK AND SOURCE OF CASH DEPOSITED VIDE IT S REPLY DT. 24 - 12 - 2010 FILED WITH A.O. IN THE SAID SUMMARY FILED THE CASH WAS DEPOSITED OUT OF PREVIOUS WITHDRAWALS , WHICH DETAILS IS ALSO FI L ED IN ANNEXURE - I AT T H E TIME OF HEARING OF THE APPEAL. THE A.O. HAS ACCEPTED ALL THE OTHER ENTRIES OF DEPOSIT AND WITHDRAWALS MADE IN THE BANK ACCOUNT, AS NO ADVERSE COMMENT IS MENTIONED IN THE ASSESSMENT ORDER. THUS THE APPELLANT HAS WITHDRAWN THE CASH F R O M GENUINE TRANSACTIONS OF CHEQUES DEP OSITED WHICH FACT IS ALSO ACCEPTED BY THE A.O. THE APPELLANT HAS THEREFORE PROVED HIS ONUS OF GENUINENESS OF THE CASH DEPOSITS OUT O F T HE CASH BALANCE . NOW THAT WH E T H ER THERE WAS SUFFICIENT CASH ON HAND DURING I.T.A NO. 1575 /AHD/20 11 A.Y. 2008 - 09 PAGE NO ITO VS. SHRI RAMBILAS K. SHUKLA 3 THE PREVIOUS YEAR IS TO BE EXAMINED FOR WHICH THE APPELLANT SUBMITTED THE PEAK DEFICIT STATEMENT IN ANNEXURE II OF THE WRITTEN SUBMISSION FI L E D AT THE TIME OF HEARING. ON VERIFICATION, IT IS S EEN THAT THE MAX IMUM PEAK DEFICIT IS OF RS . 4,74,650/ - . 5. THUS THE APPELLANT HAS NOT EXPLAINED THE PEAK DEFICIT OF R S. 4,74,650/ - DURING THE COURSE OF APPELLATE PROCEEDINGS . THE APPELLANT HAS ACCEPTED THAT THE PEAK DEFIC IT OF RS. 4,74,650/ - MAY BE ADDED AS UNEXPLAINED INCOME U/S. 68. 6. THEREFORE IN THIS CASE, THE APPELLANT HAS FAILED TO PROVE THE GENUINENESS OF RS. 4,74,650/ - BECAUSE LD. A.R. COULD NOT EXPLAIN THE PEAK DEFICIT OF RS. 4,74,650/ - . THEREFORE, OUT OF RS. 27,40,750/ - , THIS AMOUNT OF RS. 4,74,650/ - IS CONF IRMED U/S. 68 OF THE I.T. ACT AND THE BALANCE AMOUNT IS DELETED. THUS, THE APPELLANT GETS RELIEF OF RS. 22,66,100/ - . 4. WE HAVE HEARD BOTH THE PARTIES AND GONE THROUGH THE CASE FILE . THE REVENUE S ARGUMENTS SEE K TO RESTORE THE ENTIRE SUM OF R S. 27,40 ,7 50/ - ADDED U/S. 68 IN THE COURSE OF ASSESSMENT . THE ASSESSEE S OPENING BALANCE OF R S. 4,70,000/ - AS ON 01 - 04 - 2007 IS NOT DISPUTED. WE TREAT IT AS EXPLAINED ACCORDINGLY. NOW , WE COME TO THE DEPOSITS MADE OF RS. 22,65,750/ - . THE ASSES SEE HAS PLACED ON RE CORD ALL OF ITS DEBIT/CREDIT TRANSACTIONS IN QUESTION RIGHT FROM 16 - 04 - 2007 TO 24 - 03 - 2008 RELEVANT TO THE BANK ACCOUNT IN QUESTION. THE PEAK SUM THEREIN IS RS. 4,74,650/ - ONLY AS CONFIRMED IN THE LOWER APPELLATE ORDER. THE REVENUE FAILS TO REBUT CORR ECTN ESS THEREOF. T HERE ARE TOTAL 49 DEBIT/CREDIT TRANSACTIONS IN THE BANK ACCOUNT WITHOUT ANY LONG BREAK. THE SAME IS ALL THE MORE REASON TO INFER THAT THE AMOUNTS WITHDRAWN WERE LATER ON DEPOSITED IN THE VERY ACCOUNT. THERE IS NO MATERIAL QUOTED ALLEGING A NY DIVERSION OF THE SUMS WITHDRAWN. WE OBSERVE IN THESE FACTS THAT CIT(A) HAS RIGHTLY ADDED PEAK DEPOSIT AMOUNT OF R S. 4,74,650/ - ONLY INSTEAD OF ENTIRE SUM OF R S. 27,40,750/ - . THE REVENUE S SOLE SUBSTANTIVE GROUND FAILS. I.T.A NO. 1575 /AHD/20 11 A.Y. 2008 - 09 PAGE NO ITO VS. SHRI RAMBILAS K. SHUKLA 4 5. THIS REVENUE S APPEAL IS D ISMISSED. ORDER PR ONOUNCED IN THE OPEN C OURT ON 07 - 08 - 2015 SD/ - SD/ - ( G.D. AGRAWAL ) ( S.S. GODARA ) VICE PRESIDENT JUDICIAL MEMBER AHMEDABAD : DATED 0 7 /08 /2015 AK / COPY OF ORDER FORWARDED TO: - 1. ASSESSEE 2. REVENUE 3. CONCERNED CIT 4. CIT (A) 5. DR, ITAT, AHMEDABAD 6. GUARD FILE. BY ORDER/ , / ,