T.Savithri, CHENNAI V. ITO, Pollachi

ITA 1606/CHNY/2013

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 8776 (ITAT-CHENNAI)
• Duration Of Justice: 3 year(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-08-2016
• Appeal Filed By: Assessee
• Bench Allotted: D
• Next Hearing Date: 02-08-2016
• Assessment Year: 2008-2009
• Appeal Filed On: 29-07-2013
• Court: TRIBUNAL
• Department Lawyers: DURAI
• Assessee Lawyers: S SRIDHAR
• Keywords: Opportunity of being heard; Peak credit; Agreed addition

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH, CHENNAI , . ! ' , # '$ BEFORE SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER AND SHRI G. PAVAN KUMAR, JUDICIAL MEMBER /ITA NO. 1606/MDS/2013 / ASSESSMENT YEAR : 2008-09 SMT. T. SAVITHRI, KORTAR ILLAM, CHELLAPPAMPALAYAM, UDUMALPET 642 127. PAN AIZPS4742E ( / APPELLANT) V. THE INCOME-TAX OFFICER, WARD-I(1), POLLACHI. ( RESPONDENT) AND . /ITA NO. 1605/MDS/2013 / ASSESSMENT YEAR : 2008-09 SHRI P. PANDURANGAN, OLD NO.6, NEW NO.25, VENKATARAMAPURAM STREET, POLLACHIN 642 001. PAN AFOPP2870A ( / APPELLANT) V. THE INCOME-TAX OFFICER, WARD-I(2), POLLACHI. ( RESPONDENT) / APPELLANT BY : SHRI S. SRIDHAR, ADVOCATE / RESPONDENT BY : SHRI DURAI PANDIAN, JCIT / DATE OF HEARING : 02.08.2016 !' / DATE OF PRONOUNCEMENT : 05.08.2016 - - ITA 1605 & 1606/13 2 % / O R D E R PER CHANDRA POOJARI, ACCOUNTANT MEMBER THESE APPEALS ARE FILED BY DIFFERENT ASSESSEES AG AINST DIFFERENT ORDERS OF THE COMMISSIONER OF INCOME-TAX( APPEALS) FOR THE ASSESSMENT YEAR 2008-09. ITA NO.1606/MDS/2013: 2. IN THIS APPEAL, THE FIRST GROUND IS WITH REGARD TO SUSTENANCE OF ADDITION OF 4 LAKHS U/S.69 OF THE ACT. 3. AT THE TIME OF HEARING, NO ARGUMENT WAS ADVANCED BY THE LD. AR, BEFORE US. IT IS TO BE NOTED THAT THE ASSESSEE HAS NOT PRESSED THIS GROUND OF APPEAL. THE CIT (APPEALS) SUSTAINE D THE ADDITION AS ADMITTED BY THE ASSESSEE. IN VIEW OF THE JUDGME NT OF THE MADRAS HIGH COURT IN THE CASE OF RAMANLAL KAMDAR V. CIT (1 08 ITR 73), NO APPEAL LIES ON AGREED ADDITION, THEREFORE, THE ASSE SSEE CANNOT HAVE ANY GRIEVANCE. ACCORDINGLY, THIS GROUND IS DISMISS ED. 4. THE NEXT GROUND IN THIS APPEAL IS WITH REGARD TO SUSTAINING THE ADDITION OF 11,21,381/- OUT OF 25,00,726/- MADE TOWARDS CASH DEPOSITS IN THE BANK ACCOUNT. - - ITA 1605 & 1606/13 3 5. THE AO FOUND THAT THE ASSESSEE HAS MADE A SUM OF 25,00,726/- IN THE KARUR VYSYA BANK ACCOUNT NO.1212 1552862 (JOINT ACCOUNT OF S. THIRUMALAISAMY & SAVITHRI. AC CORDING TO THE AO, SOURCES OF DEPOSITS WERE NOT EXPLAINED. THEREFORE, HE MADE AN ADDITION. ON APPEAL, THE CIT(APPEALS) DIRECTED THE AO TO CONSIDER THE PEAK CREDIT OF THIS ACCOUNT AS ON 16.2.2008 AT 11,21,381/- AS AGAINST THE TOTAL DEPOSIT OF 25,00,726/-. AGAINST THIS, THE ASSESSEE IS IN APPEAL BEFORE US. 6. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE MATERIAL ON RECORD. THE LD. AR SUBMITTED THAT IT IS A JOINT ACCOUNT OF S. THIRUMALAISAMY & SAVITHRI AND THERE IS FLOW OF FUND S FROM S. THIRUMALAISAMY-HUF, S. THIRUMALAISAMY-INDIVIDUAL A CCOUNT AND FROM THE ACCOUNT OF SMT. SAVITHRI. HE ALSO SUBMITTED THAT THERE IS AN SBI ACCOUNT IN THE NAME OF S. THIRUMALAIS AMY-HUF AND ALL THE TRANSACTIONS BETWEEN THESE TWO ACCOUNTS AR E TO BE CONSIDERED. FURTHER, HE SUBMITTED THAT THE ASSES SEE CAN EXPLAIN THE NATURE AND SOURCES OF DEPOSITS IN THESE ACCOUNT S, IF AN OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. IN OUR OPINION, THE PLEA OF THE LD. AR IS TO BE ACCEPTED. IN THE INTER EST OF JUSTICE, WE REMIT THE ISSUE TO THE FILE OF THE AO WITH DIRECTIO N TO GIVE ONE MORE - - ITA 1605 & 1606/13 4 OPPORTUNITY TO THE ASSESSEE TO EXPLAIN THE NATURE A ND SOURCE OF DEPOSITS INTO THE KARUR VYSYA BANK ACCOUNT AND DECI DE THE ISSUE AFRESH. ACCORDINGLY, THIS APPEAL OF THE ASSESSEE I S PARTLY ALLOWED FOR STATISTICAL PURPOSES. ITA NO.1605/MDS/2013 7. IN THIS APPEAL, THE GRIEVANCE OF THE ASSESSEE IS WITH REGARD TO SUSTENANCE OF ADDITION MADE U/S.69 OF THE ACT, AS P ROPER OPPORTUNITY WAS NOT GIVEN BY THE LOWER AUTHORITIES. 8. THE FACTS OF THE CASE ARE THAT THERE WAS A CASH CREDIT ENTRY OF 29 LAKHS IN THE BOOKS OF ACCOUNT OF THE ASSESSEE. AT THE TIME OF ASSESSMENT, THE ASSESSEE HAS NOT GIVEN PROPER EXPLA NATION REGARDING THE NATURE AND SOURCES OF THE AFORESAID C ASH CREDIT. HENCE, THE ENTIRE AMOUNT OF 29 LAKHS WAS TREATED BY THE AO AS UNDISCLOSED INCOME U/S.68 OF THE ACT. AGAINST THIS, THE ASSESS EE WENT IN APPEAL BEFORE THE CIT(APPEALS). 9. BEFORE THE CIT(APPEALS), IT WAS SUBMITTED THAT T HESE CASH CREDITS ARE FROM SPECULATIVE INCOME. THE CIT(APPEA LS) ASKED TO PRODUCE THE DETAILS OF COMMODITY IN WHICH SP ECULATIVE PROFITS WAS DERIVED INCLUDING CONTRACT NOTES FOR THESE TRANSACTIONS AND DETAILS OF RECEIPTS FOR SPECULATIVE PROFITS REC EIVED BY THE - - ITA 1605 & 1606/13 5 ASSESSEE. THE ASSESSEE FAILED TO FURNISH NECESSARY DETAILS. ACCORDINGLY, THE CIT(APPEALS) WAS OF THE OPINION TH AT THE ASSESSEE HAS NOT ESTABLISHED THE NATURE OF SOURCES OF THESE CREDITS. AGGRIEVED BY THIS, THE ASSESSEE IS IN APPEAL BEFORE US. 10. WE HAVE HEARD BOTH THE PARTIES AND PERU SED THE MATERIAL ON RECORD. BEFORE US, THE ASSESSEE HAS FILED THE D ETAILS OF SPECULATIVE TRANSACTIONS AND THE DETAILS OF B ANK ACCOUNTS. ACCORDING TO THE LD. AR, AN OPPORTUNITY MAY BE GIV EN TO THE ASSESSEE TO PRODUCE THE SAME BEFORE THE LOWER AUTHO RITIES. CONSIDERING THE PLEA OF THE ASSESSEE, WE ARE OF THE OPINION THAT IT IS APPROPRIATE TO GIVE ONE MORE OPPORTUNITY TO THE ASSESSEE TO PLACE ALL NECESSARY DOCUMENTS BEFORE THE AO. ACCORDINGLY, WE ARE OF THE OPINION THAT IF THE ASSESSEE IS A BLE TO EXPLAIN THE NATURE AND SOURCE OF THE CASH CREDITS REGARDING THE TRANSACTIONS UNDERTAKEN BY THE ASSESSEE BEFORE THE AO, HE SHALL CONSIDER THE SAME. WITH THIS OBSERVATION, WE REMIT THIS ISSUE T O THE FILE OF THE AO - - ITA 1605 & 1606/13 6 FOR FRESH CONSIDERATION AND THIS APPEAL OF THE ASSE SSEE IS PARTLY ALLOWED FOR STATISTICAL PURPOSES. 11. IN THE RESULT, THE APPEALS OF THE ASSESSEES ARE PARTLY ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED ON FRIDAY, THE 5 TH OF AUGUST, 2016 AT CHENNAI. SD/- SD/- ( . ! ') ( ) (G. PAVAN KUMAR) (CHANDRA POOJARI) # / JUDICIAL MEMBER / ACCOUNTANT MEMBER #$ /CHENNAI, %& /DATED, THE 5 TH AUGUST, 2016. MPO* &' () *) /COPY TO: 1. /APPELLANT 2. /RESPONDENT 3. + ( ) /CIT(A) 4. + /CIT 5. ),- . /DR 6. -/ 0 /GF.