Suresh Chand Lalwani, CHENNAI V. ACIT, CHENNAI

ITA 1665/CHNY/2016

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 7883 (ITAT-CHENNAI)
• Duration Of Justice: 6 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-12-2016
• Appeal Filed By: Assessee
• Bench Allotted: A
• Next Hearing Date: 06-12-2016
• Assessment Year: 2009-2010
• Appeal Filed On: 03-06-2016
• Court: TRIBUNAL
• Department Lawyers: A V SREEKANTHJCIT
• Assessee Lawyers: D ANAND
• Keywords: Unexplained expenditure

Judgement Text

, A/ SMC , IN THE INCOME TAX APPELLATE TRIBUNAL A/SMC BENCH, CHENNAI . , BEFORE SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER ./ I.T.A.NO.1665 /MDS./2016 ( / ASSESSMENT YEAR :2009-10) SHRI SURESH CHAND LALWANI, 22,KALATHIPILLAI STREET, CHENNAI-79. VS. ACIT, BUSINESS CIRCLE XII, CHENNAI -6. PAN AAAPL 9234 H ( / APPELLANT ) ( / RESPONDENT ) ! ' # / APPELLANT BY : MR.D.ANAND,ADVOCATE $% ! ' # / RESPONDENT BY : MR.A.V.SREEKANTH,JCIT, D.R & ' ' ( ) / DATE OF HEARING : 07.12.2016 *+ ' ( ) /DATE OF PRONOUNCEMENT : 07 .12.2016 / O R D E R PER CHANDRA POOJARI, ACCOUNTANT MEMBER: ITA NO.1665/MDS/2016 2 THIS APPEAL IS FILED BY THE ASSESSEE, AGGRIEVED B Y THE ORDER OF THE LEARNED COMMISSIONER OF INCOME TAX(A)-5, CHENNA I DATED 22.03.2016 PERTAINING TO ASSESSMENT YEAR 2009-10. 2. THE BRIEF FACTS OF THE I SSUE ARE THAT AS PER THE AIR INFORMATION , AN AMOUNT OF ` 24,89,000/- HAD BEEN DEPOSITED BY WAY OF CASH ON VARIOUS DATES DURING THE FINANCIAL YEAR 2008-09 INT O THE SAVINGS ACCOUNT MAINTAINED WITH THE KARUR VYSYA BANK LTD. ALSO AN AMOUNT OF ` 12,51,000/- HAD BEEN DEPOSITED HAD BEEN DEPOSITED BY WAY OF CASH ON VARIOUS DATES DURING THE FINANCIAL YEAR 200 8-09 INTO THE SAVINGS ACCOUNT MAINTAINED WITH THE KARUR VYSYA BAN K LTD., PURASAIWAKKAM BRANCH. FURTHER, THE ASSESSEE HAD MA DE A PAYMENT OF ` 3,53,475/- TOWARDS HIS CREDIT CARD DUES TO ICICI B ANK LTD., DURING THE FINANCIAL YEAR 2008-09. THEREFORE, THE ASSESSEE WAS ASKED TO EXPLAIN AND FURNISH THE SOURCES OF THE ABOVE TRANSA CTIONS. THE CREDIT CARD STATEMENT WAS FURNISHED WHEREIN IT IS OBSERVED THAT MOST OF THE EXPENSES RELATE TO FUEL AND TRAVEL. THOUGH THE ASSE SSEE CLAIMS THAT THESE EXPENSES WERE INCURRED FOR BUSINESS PURPOSES AND PERTAINS TO ITA NO.1665/MDS/2016 3 OTHER CONCERNS, THERE IS NO INDICATION O EVIDENCE F OR THE SAME. HENCE, THE AO CONSIDERED THE CREDIT CARD PAYMENT OF ` 3,53,475/- AS UNEXPLAINED EXPENDITURE U/S.69 OF THE ACT. ON APPEA L, THE LD.CIT(A) CONFIRMED THE ACTION OF THE AO ON THE GROUND THAT T HE ASSESSEE DID NOT EXPLAIN THE SOURCES FOR THE PAYMENT OF CREDIT C ARD DUES AMOUNTING TO ` 3,53,475/-. AGAINST THIS, THE ASSESSEE IS IN APPEA L BEFORE US. 3. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE MATERIAL ON RECORD. THE LD.A.R SUBMITTED THAT AN AMOUNT OF ` 3,53,475/- WAS SPENT BY ASSESSEES WIFE AND SON AND IN TURN THEY H AVE REIMBURSED THE SAME THROUGH CHEQUE AND DEBITED TO THE ASSESSEE S BANK ACCOUNT WHICH WAS DULY REFLECTED IN THEIR RESPECTIV E RETURN OF INCOME. CONSIDERING THE PLEA OF THE ASSESSEES COUNSEL, WE ARE INCLINED TO REMIT THE ISSUE TO THE FILE OF AO TO EXAMINE THE GE NUINENESS OF THE CLAIM OF ASSESSEE WHETHER THIS EXPENDITURE WAS MADE BY THE ASSESSEES WIFE AND SON AND IT WAS REIMBURSED TO TH E ASSESSEE BY WAY OF CHEQUE. IF IT IS DULY REFLECTED IN THE RETUR N OF THE ASSESSEES ITA NO.1665/MDS/2016 4 WIFE AND SON, THEN THERE CANNOT BE ANY ADDITION IN THE HANDS OF ASSESSEE ON THIS COUNT. ACCORDINGLY, THIS ISSUE IS REMITTED TO THE FILE OF AO FOR FRESH CONSIDERATION. 4.. IN THE RESULT, THE APPEAL OF ASSESSEE IS PARTLY ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED ON 07 TH DECEMBER, 2016 AT CHENNAI. SD/- ( ) ( CHANDRA POOJARI ) /ACCOUNTANT MEMBER CHENNAI, DATED THE 07 TH DECEMBER, 2016 . K S SUNDARAM. , ' $(-. /.( / COPY TO: 1 . ! / APPELLANT 3. & 0( () / CIT(A) 5. .3 4 $(5 / DR 2. $% ! / RESPONDENT 4. & 0( / CIT 6. 4 6 7 ' / GF