MS. SIMONE KHUSHROO MEHER, Mumbai V. ACIT 16(2), Mumbai

ITA 1607/MUM/2019

• Counselvise Citation: [2021] 109 COUNSELVISE.COM (IT) 7755 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 9 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-01-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: G
• Assessment Year: 2010-2011
• Appeal Filed On: 18-03-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: T S KHALSA L D
• Assessee Lawyers: SANJAY PARIKHLD
• Keywords: Gift

Judgement Text

ITA NO.1607/MUM/2019 MS. SIMONE KHUSHROO MEHER ASSESSMENT YEAR: 2010-11 1 IN THE INCOME TAX APPELLATE TRIBUNAL G BENCH, MUMBAI , , BEFORE HONBLE SHRI MAHAVIR SINGH, VP AND HONBLE SHRI MANOJ KUMAR AGGARWAL, AM (HEARING THROUGH VIDEO CONFERENCING MODE) ./ I.T.A. NO.1607/MUM/2019 ( / ASSESSMENT YEAR: 2010-11) MS. SIMONE KHUSHROO MEHER FLAT NO.8, 3 RD FLOOR BREACH CANDY HOUSE BREACH CANDY, MUMBAI-400 026. / VS. A CIT - 16 (2) 2 ND FLOOR, MATRU MANDIR TARDEO ROAD MUMBAI-400 007. !' ./ ./PAN/GIR NO. AAFPM-0955-P ( '$ /APPELLANT ) : ( %&'$ / RESPONDENT ) ASSESSEE BY : SHRI SANJAY PARIKH-LD. AR REVENUE BY : SHRI T.S. KHALSA- LD. SR.DR / DATE OF HEARING : 12/01/2021 / DATE OF PRONOUNCEMENT : 12/01/2021 / O R D E R MANOJ KUMAR AGGARWAL (ACCOUNTANT MEMBER) 1. AFORESAID APPEAL BY ASSESSEE FOR ASSESSMENT YEAR 2010-11, CONTESTS THE ORDER OF LD. COMMISSIONER OF INCOME TA X (APPEALS) - 30, MUMBAI [CIT(A)], APPEAL NO.CIT(A)-30/ACIT-19(3) /13/13-14 DATED 21/01/2019 QUA CONFIRMATION OF CERTAIN ADDITION OF RS.5 LACS AS MADE BY LD. AO WHILE FRAMING AN ASSESSMENT U/S 1 43(3) ON 22/02/2013. ITA NO.1607/MUM/2019 MS. SIMONE KHUSHROO MEHER ASSESSMENT YEAR: 2010-11 2 2. DURING ASSESSMENT PROCEEDINGS, IT TRANSPIRED THA T THE ASSESSEE DEPOSITED CASH OF RS.9 LACS ON 10/11/2009 IN ONE OF SAVINGS BANK ACCOUNT MAINTAINED WITH STANDARD CHART ERED BANK, BREACH CANDY, MUMBAI. ACCORDINGLY, THE ASSESSEE WAS DIRECTED TO SUBSTANTIATE THE SOURCE OF CASH DEPOSIT. THE ASSESS EE ATTRIBUTED RS.5 LACS TO WITHDRAWALS MADE IN EARLIER YEARS WHER EAS THE BALANCE OF RS.4 LACS WAS STATED TO BE RECEIVED IN G IFTS FROM RELATIVES. THE CASH SUMMARY FOR FINANCIAL YEAR 2009 -10 WAS PRODUCED BEFORE LD. AO WHICH WAS AS FOLLOWS: - NO. PARTICUL ARS AMT. (RS.) 1. OPENING BALANCE AS ON 01/04/2009 2,52,500/- 2. ADD : CASH WITHDRAWALS FROM BANKS 12,68,036/- 3. ADD : CASH GIFTS 4,00,000/- 4. TOTAL (A) 19,20,536/ - 5. LESS : CASH HOUSEHOLD EXPENSES 9,38,500/- 6. LESS : CASH RE-DEPOSITED IN BANK 9,45,000/- 7. CLOSING BALANCE AS ON 31/03/2010 37,036/ - HOWEVER, FINDING CERTAIN DISCREPANCIES IN ASSESSEE S EXPLANATIONS, THE AMOUNT OF RS.9 LACS WAS ADDED TO THE INCOME OF THE ASSESSEE. 3. BEFORE LD. CIT(A), THE ASSESSEE FURNISHED DATE-W ISE DETAILS OF DEPOSITS AND WITHDRAWALS FOR FINANCIAL YEAR 2008 -09. THE LD. CIT(A), UPON PERUSAL OF DOCUMENTS, OBSERVED THAT TH E ASSESSEE HAD CLOSING CASH AS ON 31/03/2009 FOR RS.2.52 LACS. THE CASH RECEIPTS IN FINANCIAL YEAR 2009-10 WERE RS.19.20 LA CS WHEREAS CASH EXPENSES WERE RS.18.83 LACS LEAVING CLOSING CA SH BALANCE OF RS.0.37 LACS. THEREFORE, A CONCLUSION WAS REACHE D BY LD. CIT(A) THAT NO CASH WAS AVAILABLE WITH THE ASSESSEE FOR REDEPOSIT INTO BANK FROM EARLIER CASH WITHDRAWALS AFTER MEETI NG HOUSEHOLD EXPENSES. THEREFORE, THE ADDITION TO THE EXTENT OF RS.5 LACS WAS CONFIRMED. TO SUPPORT THE CASH GIFTS, THE ASSESSEE FILED ITA NO.1607/MUM/2019 MS. SIMONE KHUSHROO MEHER ASSESSMENT YEAR: 2010-11 3 CONFIRMATIONS OF THE RELATIVE DONORS AND SUCCESSFUL LY ESTABLISHED THE IDENTITY AND CREDITWORTHINESS OF THE DONORS. TH EREFORE, THE ADDITION TO THE EXTENT OF RS.4 LACS WAS DELETED BUT THE BALANCE ADDITION OF RS.5 LACS WAS CONFIRMED. AGGRIEVED, THE ASSESSEE IS IN FURTHER APPEAL BEFORE US. 4. UPON PERUSAL OF ASSESSEES COMPUTATION OF INCOME , WE FIND THAT THE ASSESSEE HAS ALREADY OFFERED INTEREST INCO ME EARNED FROM SAVINGS BANK ACCOUNT MAINTAINED WITH STANDARD CHART ERED BANK AND THE SAME IS NOT AN UNDISCLOSED ACCOUNT WHICH IS ALSO EVIDENT FROM ASSESSEES BALANCE SHEET AS ON 31/03/2010 WHER EIN THIS ACCOUNT HAS BEEN REFLECTED. 5. WE FIND THAT THE ASSESSEE HAS OPENING & CLOSING CASH BALANCE OF RS.2.52 LACS & RS.0.37 LACS AS PER ITS B ALANCE SHEET AS ON 31/03/2009 & 31/03/2010. THE PERUSAL OF SUMMA RY CASH DEPOSITS AND WITHDRAWALS FOR THE YEAR UNDER CONSIDE RATION, AS PLACED ON RECORD, WOULD SUPPORT THE FACT THAT THE A SSESSEE HAD CASH AVAILABILITY OF RS.19.20 LACS DURING THE YEAR WHICH WAS USED TO MEET AVERAGE HOUSEHOLD EXPENSES OF RS.9.38 LACS AND THE BALANCE RS.9.45 LACS WAS RE-DEPOSITED IN THE BANK A CCOUNT. THE LD. CIT(A), IN OUR OPINION, ERRED IN NOTING THAT TH E HOUSEHOLD EXPENDITURE WAS RS.18.83 LACS AS AGAINST THE FACT T HAT THIS AMOUNT INCLUDE THE CASH RE-DEPOSITED BY THE ASSESSEE IN HE R BANK ACCOUNT. HENCE, THE SOURCE OF CASH DEPOSIT, IN OUR OPINION, WAS WELL DOCUMENTED AND SUFFICIENTLY EXPLAINED BY THE ASSESS EE. THEREFORE, ON THE FACTS AND CIRCUMSTANCES OF THE CASE, THE ADD ITION OF RS.5 LACS AS CONFIRMED BY LD. CIT(A) COULD NOT BE SUSTAI NED. WE ORDER SO. ITA NO.1607/MUM/2019 MS. SIMONE KHUSHROO MEHER ASSESSMENT YEAR: 2010-11 4 6. RESULTANTLY, THE APPEAL STANDS ALLOWED. ORDER PRONOUNCED ON 12 TH JANUARY, 2021. SD/- SD/- (MAHAVIR SINGH) (MANOJ KUMAR AGGARWAL) / VICE PRESIDENT / ACCOUNTANT MEMBER MUMBAI; DATED : 12/01/2021 SR.PS, JAISY VARGHESE / COPY OF THE ORDER FORWARDED TO : 1. '$ / THE APPELLANT 2. %&'$ / THE RESPONDENT 3. - ( ) / THE CIT(A) 4. - / CIT CONCERNED 5. ./% ( 0 , 0 , / DR, ITAT, MUMBAI 6. /123 / GUARD FILE / BY ORDER, / (DY./ASSTT.REGISTRAR) , / ITAT, MUMBAI.