Amrutlal Shankardas Patel, Mehsana V. ITO, Ward-1, Mehsana

ITA 1730/AHD/2017

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 6883 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-07-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2013-2014
• Appeal Filed On: 14-07-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: JAYA CHOWDHURY
• Assessee Lawyers: S N DIVATIA
• Keywords: Income from undisclosed sources
• Section: 143(3)

Judgement Text

, SMC IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH, AHMEDABAD BEFORE SHRI MAHAVIR PRASAD, JUDICIAL MEMBER & SHRI AMARJIT SINGH, ACCOUNTANT MEMBER ./I.T.A. NO. 1730/AHD/2017 ( / ASSESSMENT YEAR: 2013-14) AMRUTLAL SHANKARDAS PATEL PATEL VAS, KELISANA TAL. VIJAPUR, DIST: MEHSANA - 382830 / VS. ITO WARD-1, MEHSANA, 204, APOLLO ENCLAVE, OPP. SIMANDHAR TEMPLE, MEHSANA ./ ./PAN/GIR NO. : ACR PP5 188 P ( /APPELLANT ) .. ( / RESPONDENT ) / APPELLANT BY : SHRI S. N. DIVATIA & MEHUL TALERA, A.R. / RESPONDENT BY: M/S. JAYA CHOWDHURY, SR. DR !' /DATE OF HEARING 11/07/2019 #$!' / DATE OF PRONOUNCEMENT 30/07/2019 %& /O R D E R PER AMARJIT SINGH - AM: THE APPEAL FILED BY THE ASSESSEE FOR A.Y. 2013-14, ARISE FROM ORDER OF THE CIT(A), GANDHINAGAR, AHMEDABAD DATED 30.05.2017, IN PROCEEDINGS UNDER SECTION 143(3) OF THE INCOME TAX ACT, 1961; IN SHORT THE AC T. 2. THE INSTANT APPEAL OF THE ASSESSEE IS FILED AGAIN ST THE DECISION OF THE LD. CIT(A) GANDHINAGAR, IN UPHOLDING THE ADDITION OF OPE NING CASH BALANCE TO THE EXTENT OF RS. 16,67,170/-. SINCE IN ALL THE GROUND OF APPEAL OF THE ASSESSEE THE COMMON ISSUE OF ADDITION ON ACCOUNT OF OPENING CASH BALANCE IS INVOLVED, THEREFORE, FOR THE SAKE OF CONVENIENCE ALL GROUNDS OF APPEALS ARE ADJUDICATED TOGETHER. ITA NO. 1730/AHD/2017 A.Y. 2013-14 2 3. THE FACT IN BRIEF THAT RETURN OF INCOME DECLARING INCOME OF RS. 74,450/- WAS FILED ON 26.07.2013. THE CASE WAS SUBJECT TO SCRUTI NY ASSESSMENT. THE ASSESSMENT ORDER U/S. 143(3) OF THE ACT WAS PASSED ON 22.03.20 06 AND TOTAL INCOME WAS ASSESSED AT RS. 36,77,640/-. REGARDING ISSUE IN APPEAL OF ADDITION OF RS. 17,97 ,190/- AS OPENING BALANCE:- 4. DURING THE COURSE OF ASSESSMENT THE ASSESSEE HAS NOTICED THAT ASSESSEE HAS SHOWN OPENING BALANCE OF RS. 17,97,190/- AS ON 01.0 4.2012 FOR FINANCIAL YEAR 2012-13 RELEVANT TO THE ASSESSMENT YEAR UNDER CONSI DERATION. THE AO OBSERVED THAT SINCE THE ASSESSEE HAS ONLY INCOME FROM AGRICU LTURE AND INTEREST INCOME, THEREFORE, HE WAS OF THE VIEW THAT SUCH AMOUNT OF C ASH BALANCE SHOWN BY THE ASSESSEE WAS NOT JUSTIFIED. THE ASSESSEE HAS EXPLAI NED THAT HE HAS FILED HIS RETURN OF INCOME DISCLOSING RETURN OF INCOME OF RS. 84,450 /- AND AGRICULTURAL INCOME OF RS. 21,22,337/- AND STATED THAT ALL DOCUMENT/PAPERS REGARDING AGRICULTURAL ACTIVITIES HAVE BEEN SUBMITTED IN HIS SUBMISSION. HE HAS FURT HER INFORMED THAT CASH BOOK FOR FINANCIAL YEAR 2012-13 HAS SHOWN OPENING BALANCE OF CASH IN HAND OF RS. 17,97,190/- WHICH WAS EARLIER ACCUMULATED AGRICULTU RAL INCOME AND ALSO STATED THAT COPIES OF AGRICULTURE BILL FOR EARLIER YEARS HAS BE EN ATTACHED FOR VERIFICATION. THE AO HAS NOT AGREED WITH THE SUBMISSION OF THE ASSESS EE AND HE WAS OF THE VIEW THAT THE BILL VOUCHER WERE PAID BY GUJARAT RAAJYA BEEJ N IGAM LTD. AND ASSESSEE HAS NOT EXPLAINED HOW AND WHEN CHEQUES TRANSACTIONS WERE CO NVERTED INTO CASH. THEREFORE, THE AO HAS TREATED THE OPENING CASH BALAN CE OF RS. 17,97,120/- AS UNACCOUNTED INCOME OF THE ASSESSEE. 5. AGGRIEVED ASSESSEE HAS FILED BEFORE THE LD. CIT(A) . LD. CIT(A) HAS RESTRICTED THE ADDITION TO THE EXTENT OF RS. 16,67, 170/- ON CONSIDERING THE CASH WITHDRAWAL IN THE LAST MONTH OF THE FINANCIAL YEAR 2011-12. ITA NO. 1730/AHD/2017 A.Y. 2013-14 3 DURING THE COURSE OF APPELLATE PROCEEDING BEFORE U S THE LD. COUNSEL HAS FURNISHED PAPER BOOK COMPRISING DETAILS AND COPIES OF DOCUMENT FURNISHED BEFORE THE AO AND LD. CIT(A). THE LD. COUNSEL HAS CONTENDE D THAT ASSESSEE SOURCE OF INCOME OF ASSESSEE IS AGRICULTURAL INCOME ONLY AND THERE IS A SMALL AMOUNT OF INTEREST WHICH WAS SHOWN IN THE RETURN OF INCOME. HE HAS FURTHER CONTENDED THAT DURING THE YEAR UNDER CONSIDERATION THE ASSESSEE HA S SHOWN SUBSTANTIAL AMOUNT OF AGRICULTURAL INCOME OF RS. 21,22,337/- WHICH HAS NO T BEEN DISPUTED BY THE AO. HE HAS FURTHER STATED THAT DURING THE COURSE OF ASSESS MENT PROCEEDING THE ASSESSEE HAS SUBMITTED THE COPY OF RETURN OF INCOME, BALANCE SHE ET AND BANK WITHDRAWAL FROM DIFFERENT BANKS OF EARLIER YEAR WHICH DEMONSTRATE T HAT ASSESSEE WAS HAVING SUFFICIENT AGRICULTURE INCOME AND CASH WITHDRAWAL F ROM BANKS. HOWEVER, THE AO AND LD. CIT(A) HAS NOT CONTROVERT THE DETAIL AND DO CUMENT FURNISHED BY THE ASSESSEE. THEREFORE, THE DECISION OF THE LD. CIT(A) SUSTAINING THE ADDITION IS UNJUSTIFIED. 6. ON THE OTHER HAND, THE LD. DR HAS SUPPORTED THE O RDER OF CIT(A). 7. WE HAVE HEARD BOTH THE SIDES AND PERUSED THE MAT ERIAL ON RECORD CAREFULLY. AFTER PERUSAL OF THE MATERIAL ON RECORD IT IS NOTIC ED THAT ASSESSEE IS AN INDIVIDUAL AND MAIN SOURCE OF INCOME IS FROM AGRICULTURE AND D URING THE YEAR UNDER CONSIDERATION THE ASSESSEE HAS EARNED NET AGRICULTU RE INCOME OF RS. 21,22,327/- WHICH WAS NOT DISPUTED BY THE LOWER AUTHORITY. THE ASSESSEE HAS NON-AGRICULTURAL INCOME OF RS. 74,450/- AS INTEREST FROM SAVING UNDE R THE HEAD INCOME FROM OTHER SOURCE WHICH WAS DISCLOSED IN THE RETURN OF INCOME FILED BY THE ASSESSEE. DURING THE COURSE OF ASSESSMENT PROCEEDING THE ASS ESSEE HAS FILED DETAIL AND INFORMATION OF ALL HIS BANK ACCOUNT WHERE THE CASH WAS DEPOSITED AND AO HAS NOT RAISED ANY QUERY REGARDING THE CASH DEPOSIT IN THE BANK ACCOUNTS. REGARDING QUERY OF THE AO ABOUT THE OPENING CASH OF RS. 17,97,190/- THE ASSESSEE HAS SUBMITTED THE BALANCE SHEET AS ON 31.03.2012 AS PER WHICH THE CLO SING CASH IN HAND WAS TO THE AMOUNT OF RS. 17,97,190/-. THE ASSESSEE HAD ALSO FI LED HIS RETURN OF INCOME FOR ITA NO. 1730/AHD/2017 A.Y. 2013-14 4 PRECEDING YEAR 2012-13 ALONG WITH BALANCE SHEET FOR ASSESSMENT YEAR 2012-13 WHICH INDICATE THAT THERE WAS CLOSING CASH BALANCE OF RS. 17,97,190/-. WITHOUT DISPROVING THE FACT REPORTED IN THE RETURN OF INCOM E FILED BY THE ASSESSEE FOR A.Y. 2012-13 AS PER WHICH THE ASSESSEE HAS SHOWN CLOSING CASH BALANCE OF RS. 17,97,190/- THE AO HAS MADE ADDITION OF OPENING CAS H BALANCE FOR THE YEAR UNDER CONSIDERATION. ON PERUSAL OF THE MATERIAL ON RECOR D IT IS NOTICED THAT THE OPENING CASH BALANCE OF RS. 17,97,190/- AS ON 01.04.2012 WA S THE CLOSING CASH BALANCE AS ON 31.03.2012. THE ASSESSEE HAS SUBMITTED THE SUPP ORTING RELEVANT EVIDENCE BEFORE THE AO I.E. THE COPY OF BALANCE SHEET FOR A. Y. 2012-13 (F.Y. 2011-12) WHICH DEMONSTRATE THAT ASSESSEES CLOSING BALANCE O F RS. 17,97,190/- WAS SUPPORTED BY THE RETURN OF INCOME FILED FOR A.Y. 20 12-13. IT IS UNDISPUTED FACT THAT ASSESSEE HAS BEEN REGULARLY DRIVING INCOME FROM AGR ICULTURE ACTIVITY AND DURING THE EARLIER YEAR ALSO THE ASSESSEE HAS SHOWN TREMENDOUS AMOUNT OF AGRICULTURAL INCOME IN THE IMMEDIATELY PRECEDING ASSESSMENT YEAR. AS P ER PAPER BOOK PAGES NO. 33 TO 51 THE ASSESSEE HAS FILED DETAIL OF BANK CASH AND I NCOME DETAIL FROM FINANCIAL YEAR 2007-08 TO FINANCIAL YEAR 2011-12, HOWEVER, THE AO HAS FAILED TO DISPROVE THIS FACT REPORTED BY THE ASSESSEE THAT HE WAS HAVING SUFFICI ENT AGRICULTURAL INCOME AND BANK WITHDRAWAL AND THE AMOUNT OF OPENING CASH BALANCE W AS DULY DISCLOSED IN THE PRECEDING YEAR RETURN OF INCOME AND DULY SUPPORTED WITH THE BALANCE SHEET FOR FINANCIAL YEAR 2011-12. IN THE LIGHT OF THE ABOVE FACTS AND CIRCUMSTANCES W E OBSERVE THAT AO HAS FAILED TO DISPROVE THE GENUINEN ESS OF SUBSTANTIAL AMOUNT OF AGRICULTURAL INCOME EARNED BY THE ASSESSEE AND WITH DRAWAL OF CASH FROM THE BANK WHICH WERE GENERATED ON ACCOUNT OF AGRICULTURAL INC OME AND ALSO FAILED TO DISPROVE THAT THE CLOSING CASH BALANCE OF RS. 17,97,190/- WA S SHOWN IN THE BALANCE SHEET AND RETURN OF INCOME FILED IN THE PREVIOUS YEAR. CONSI DERING THE ABOVE FACTS AND CIRCUMSTANCES WE CONSIDER THAT LD. CIT(A) IS NOT JUS TIFIED IN SUSTAINING THE ADDITION MADE BY THE AO WITHOUT DISPROVING THE GENU INENESS OF OPENING CASH BALANCE WHICH WAS SUPPORTED WITH RELEVANT EVIDENCES I.E. RETURN OF INCOME OF PREVIOUS YEAR AND BALANCE SHEET AND AGRICULTURAL IN COME AND BANK WITHDRAWAL ETC. THEREFORE, APPEAL OF THE ASSESSEE IS ALLOWED. ITA NO. 1730/AHD/2017 A.Y. 2013-14 5 8. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED. SD/- SD/- (MAHAVIR PRASAD) (AMARJIT SINGH) JUDICIAL MEMBER ACC OUNTANT MEMBER AHMEDABAD: DATED 30/07/2019 TANMAY TRUE COPY / COPY OF ORDER FORWARDED TO:- 1. / REVENUE 2. % / ASSESSEE 3. '( ! )! / CONCERNED CIT 4. )! - / CIT (A) 5. *+, ! ( , ' ( , -.%'% / DR, ITAT, AHMEDABAD 6. ,/ 0 / GUARD FILE. BY ORDER / %& , 1 / - ' ( , -.%'% 2 1.DATE OF DICTATION ON 25.07.2019 2.DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE TH E DICTATING MEMBER 25.07.2019 3.DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR. P.S./P.S. 30.07.2019 4.DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE DICTATING MEMBER FOR PRONOUNCEMENT 30.07.2019 5.DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR .P.S./P.S 30.07.2019 6.DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 31.07.2019 7.DATE ON WHICH THE FILE GOES TO THE HEAD CLERK . 8.THE DATE ON WHICH THE FILE GOES TO THE ASSTT. REG ISTRAR FOR SIGNATURE ON THE ORDER 9.DATE OF DESPATCH OF THE ORDER THIS ORDER PRONOUNCED IN OPEN COURT ON 30/0 7/2019