Smt. Pushpa Gupta, Indore V. The I.T.O., Indore

ITA 164/IND/2010

• Counselvise Citation: [2010] 136 COUNSELVISE.COM (IT) 2837 (ITAT-INDORE)
• Duration Of Justice: 2 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-06-2010
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2004-2005
• Appeal Filed On: 30-03-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: APARNA KARAN
• Assessee Lawyers: S S DESHPANDE

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL, INDORE SMC BENCH, INDORE BEFORE SHRI JOGINDER SINGH, JUDICIAL MEMBER ITA NO.164/IND/2010 AY: 2004-05 SMT. PUSHPA GUPTA, INDORE (PAN ABSPG-3569-R) ..APPELLANT V/S. INCOME-TAX OFFICER, 3(2), INDORE ..RESPONDENT APPELLANT BY : SHRI S.S. DESHPANDE, C.A. DEPARTMENT BY : SMT. APARNA KARAN, SR. DR ORDER THIS APPEAL IS BY THE ASSESSEE CHALLENGING THE OR DER OF THE LD. CIT(A) DATED 24.12.2009 ON THE GROUND THAT THE LEARNED CIT(A) WRONGLY UPHELD THE ADDITION OF RS.75,000/- MADE BY THE AO AS UNEXPLAINED CASH DEPOSITED IN BANK. DURING HEARING OF THIS APPEAL, THE LD. COUNSEL FOR ASSESSEE SHRI S.S. DESHPANDE CONTEN DED THAT THE ASSESSEE IS HAVING RENTAL INCOME OF RS. 1,20,000/- AND INTEREST INCOME OF RS. 93,000/-. THE RENT WAS CLAIMED TO HAVE BEEN RECEIVED IN CASH FROM HANDLOOM BUSINESS. IT WAS FURTHER SUBMITTED TH AT ALL DETAILS WERE 2 GIVEN TO THE AO FOR WHICH MY ATTENTION WAS INVITED TO PAGE 16 OF THE PAPER BOOK. ON THE OTHER HAND, LEARNED SR. DR SMT. APARNA KARAN STRONGLY DEFENDED THE ADDITION BY SUBMITTING THAT F IRST OF ALL NECESSARY DETAILS WERE NOT SUBMITTED BY THE ASSESSEE AND SECO NDLY IT IS A CASE OF CAPITAL FORMATION BY ILLEGAL MEANS. 2. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS AND P ERUSED THE MATERIAL AVAILABLE ON FILE. BRIEF FACTS ARE THE AS SESSEE DERIVES INCOME FROM PROPERTY, INTEREST INCOME, INCOME FROM CAPITAL GAINS. THE ASSESSEE DECLARED INCOME OF RS.1,56,000/- IN ITS RE TURN FILED ON 2.8.2004 WHICH WAS PROCESSED U/S 143(1)(A) OF THE A CT RESULTING INTO REFUND OF RS. 8552/-,ISSUED VIDE RV NO. 044415 DATE D 18.1.2005. FROM THE BANK ACCOUNTS OF THE ASSESSEE IT WAS FOUND BY T HE LEARNED AO THAT THERE WAS CASH DEPOSIT OF RS.75,000/- (RS.25,.000/- ON 8.10.2003, RS. 25,000/- ON 13.10.2003 AND RS. 25,000/- ON 17.1 0.2003). THE ASSESSEE WAS ASKED TO EXPLAIN THE SOURCE OF SUCH DE POSIT WHICH WAS CLAIMED TO BE DEPOSITS FROM VARIOUS DEBTORS AND CER TAIN AMOUNTS FROM RENT RECEIPTS. AS PER THE DEPARTMENT, THE ASSESSEE COULD NOT EXPLAIN THE SOURCE OF SUCH RECEIPTS, NAMES OF THE DEBTORS A ND AVOIDED PRODUCING ANY EVIDENCE FOR THE SOURCE OF SUCH DEPOS ITS, THEREFORE, THE AMOUNT OF RS.75,000/- WAS TREATED FROM UNEXPLAINED SOURCES. ON APPEAL, THE ASSESSMENT ORDER WAS AFFIRMED WHICH IS UNDER CHALLENGE 3 BEFORE THIS TRIBUNAL. THE STAND OF THE ASSESSEE IS THAT NECESSARY DETAILS WERE DULY FURNISHED BEFORE THE AO WHEREAS THE STAND OF THE REVENUE IS THAT THE IMPUGNED AMOUNTS WERE FROM UNEXPLAINED SOU RCES. THE LEARNED SENIOR DR PLEADED THAT INSPITE OF OPPORTUN ITY PROVIDED TO THE ASSESSEE, SHE COULD NOT FURNISH THE DETAILS OF DEBT ORS OUTSTANDING AS ON 31.3.2004 AND THE BOOKS OF ACCOUNTS WERE ALSO NOT M AINTAINED. ANOTHER PLEA WAS RAISED BY THE LEARNED COUNSEL FOR THE ASSESSEE THAT THE IMPUGNED AMOUNTS WERE RECEIVED FROM TENANTS AND SOME AMOUNTS FROM DEBTORS. I HAVE PERUSED THE COMPUTATION OF IN COME (PAGES 7 AND 8 OF THE PAPER BOOK) WHEREIN THE ASSESSEE HAS DULY SHOWN THE RECEIPT OF RENT AND ALSO INTEREST RECEIPT FROM CAPS & CHEMI CALS. THE ASSESSEE ALSO SHOWED INCOME FROM CAPITAL GAINS. EVEN VIDE LE TTER DATED 18.11.2008 ADDRESSED TO THE LEARNED CIT(A) THE ASSE SSEE ENCLOSED THE BALANCE-SHEET, STATEMENT OF INCOME AND REPLIES FILE D AGAINST QUESTIONNAIRE ISSUED BY THE AO. THE INCOME-TAX RET URNS OF ALL THE MAJOR MEMBERS OF THE FAMILY SHOWING WITHDRAWALS AND COPY OF BALANCE-SHEET AS ON 31.3.2003 SHOWING SUNDRY DEBTOR S WERE DULY FILED BEFORE HIM. SINCE THE RECEIPT OF RENT AND THE AMOU NT RECEIVED FROM DEBTORS WERE DULY EXPLAINED, THEREFORE, THE IMPUGNE D AMOUNT CANNOT BE TREATED AS UNEXPLAINED. THERE IS NO EVIDENCE BY THE REVENUE THAT THE RECEIPT OF INCOME FROM DEBTORS AND RENT WERE UT ILISED FOR ANY 4 OTHER PURPOSE. IN VIEW OF THESE FACTS, THIS APPEAL OF THE ASSESSEE DESERVES TO BE ALLOWED. FINALLY, THE APPEAL OF THE ASSESSEE IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 2.6.2010. SD/- (JOGINDER SINGH) JUDICIAL MEMBER DATED: 2.6.2010 D/- COPY TO: APPELLANT/RESPONDENT/CIT/CIT(A)/DR/GUARD F ILE