A. Radhakrishnan, Pollachi V. ITO, Pollachi

ITA 1816/CHNY/2013

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 8086 (ITAT-CHENNAI)
• Duration Of Justice: 2 year(s) 3 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-01-2016
• Appeal Filed By: Assessee
• Bench Allotted: B
• Next Hearing Date: 03-11-2015
• Assessment Year: 2008-2009
• Appeal Filed On: 08-10-2013
• Court: TRIBUNAL
• Department Lawyers: DR B NISCHAL
• Assessee Lawyers: S VISWANATHAN
• Section: 142(1)

Judgement Text

, , IN THE INCOME - TAX APPELLATE TRIBUNAL B BENCH, CHENNAI . , . , BEFORE SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER & SHRI DUVVURU R L REDDY , JUDICIAL MEMBER ./ I.T.A.NO. 1 816/MDS/2013 / ASSESSMENT YEAR :20 0 8 - 0 9 SHRI A. RADHAKRISHNAN, NO.7/51, S. KUMARAPALAYAM, MAPPILLAIGOUNDANPUDUR, POLLACHI 642 005. [PAN: A JQPR7599Q ] VS. THE INCOME TAX OFFICER , WARD I ( 2 ), POLLACHI . ( / APPELLANT ) ( / RESPONDENT ) / APPELLANT BY : SHRI S . VISWANATHAN, ADVOCATE / RESPONDENT BY : DR. B. NISCHAL, JCIT / DATE OF HEARING : 0 3 . 11 .201 5 / DATE OF P RONOUNCEMENT : 29 . 0 1 .201 6 / O R D E R PER DUVVURU RL REDDY , JUDICIAL MEMBER : THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF THE LD. COMMISSIONER OF INCOME TAX (APPEALS) II, COIMBATORE DATED 20.06.2013 F OR THE ASSESSMENT YEAR 2008 - 09. THE ONLY EFFECTIVE GROUND RAISED IN THE APPEAL OF THE ASSESSEE IS WITH REGARD TO CONFIRMATION OF ADDITION MADE UNDER SECTION 69A OF THE INCOME TAX ACT, 1961 [ ACT IN SHORT]. 2. BRIEF FACTS OF THE CASE ARE THAT THE ASSESS EE IS AN INDIVIDUAL, ENGAGED IN THE BUSINESS OF BORE WELL ERECTION AGENT AND FILED HIS RETURN ADMITTING I.T.A. NO . 1 816 / M/ 13 2 INCOME OF .1,15,500/ - AND ALSO DECLARED AGRICULTURAL INCOME AT .4,90,000/ - . THE CASE OF THE ASSESSEE WAS PROCESSED UNDER SECTION 143(1) OF THE ACT AND SELECTED FOR SCRUTINY. NOTICE UNDER SECTION 143(2) OF THE ACT WAS SERVED ON THE ASSESSEE ON 15.09.2009 AND NOTICE UNDER SECTION 142(1) OF THE ACT WAS ALSO ISSUED ON 30.07.2010 CALLING CERTAIN DETAILS. THE ASSESSEE IS BASICALLY AN AGRICULTURIST. HE IS ALSO DERIVING INCOME FROM THE BUSINESS OF ERECTION OF BORE WELL, BESIDES HE IS GETTING BROKERAGE INCOME ON ARRANGING F OR SALE OF IMMOVABLE PROPERTIES. THE ASSESSEE HAS NOT MAINTAINED BOOKS OF ACCOUNTS FOR HIS BUSINESS. DURING THE COURSE OF HEARING BEFORE THE ASSESSING OFFICER ON 07.09.2010, THE AR OF THE ASSESSEE SUBMITTED STATEMENT OF AFFAIRS AS ON 31.03.2008 AND 31.03.2 007. THE ASSESSING OFFICER HAS OBSERVED FROM THE SUBMISSIONS MADE BY THE ASSESSEE THAT THE ASSESSEE IS MAINTAINING BANK ACCOUNTS WITH AXIS BANK, HDFC BANK AND IOB AND ALSO SUBMITTED BANK STATEMENTS FOR THE SAME. THE ASSESSEE HAS ALSO STATED THAT THE SOURCE ARE OUT OF AGRICULTURAL OPERATIONS AND MOREOVER, THE ASSESSEE HAS SHOWN AGRICULTURAL INCOME OF .4,90,000/ - IN THE RETURN OF INCOME FRILLED OUT OF AGRICULTURAL OPERATION. SUBSEQUENTLY, THE ASSESSING OFFICER CAME TO KNOW THAT THE ASSESSEE IS MAINTAINING AN ACCOUNT IN THE INDIAN BANK, POLLACHI IN A/C. NO.723540828 AND THIS HAS NOT BEEN REFLECTED IN TH E STATEMENT OF ACCOUNTS AND RETURN OF INCOME FILED BY THE ASSESSEE. THE ASSESSEE HAS ALSO NOT SHOWN THIS ACCOUNT IN THE LIST OF BANK ACCOUNTS MAINTAINED AS SUBMITTED BEFORE THE ASSESSING OFFICER VIDE HIS LETTER DATED I.T.A. NO . 1 816 / M/ 13 3 01.09.2010. THE ASSESSEE HAS MADE FOLLO WING CASH DEPOSITS IN THE INDIAN BANK ACCOUNT: S.NO. DATE OF DEPOSIT AMOUNT (RS.) 1 15.05.2007 10,5000 2 01.06.2007 7,38,000 3 14.09.2007 50,000 4 24.09.2007 50,000 5 23.10.2007 12,000 6 09.11.2007 3,50,000 TOTAL 11,69,500 3. DURING THE COURSE OF HEARING, THE ASSESSING OFFICER HAS ASKED THE ASSESSEE TO EXPLAIN THE SOURCE FOR THE ABOVE DEPOSITS. HOWEVER, THE ASSESSEE COULD NOT FURNISH ANY EXPLANATION EXCEPT STATING THAT IT IS OUT OF THE AGRICULTURAL OPERATIONS. SINCE THE ASSESSEE COULD NOT HAVE MADE CASH DEPOSIT OF OVER .7 LAKHS IN A SINGLE INSTANCE OUT OF AGRICULTURAL INCOME, THE EXPLANATION OFFERED BY THE ASSESSEE IS NOT SATISFACTORY, THE ASSESSING OFFICER TREATED THE ABOVE CASH DEPOSITS MADE IN THE INDIAN BANK ACCOUNT AS UNEXPLAINED MONEY UNDER SECTION 69A OF THE ACT AND ADDED THE SAME IN THE INCOME OF THE ASSESSEE. 4. THE ASSESSEE CARRIED THE MATTER IN APPEAL. THE ASSESSEE HAS FILED VARIOUS DETAILS WITH REGARD TO THE AGRICULTURAL LAND POSSESSED BY HIM AND HIS FAMILY MEMBERS AND INCOME THEREON. AFTER CONSIDERING THE SUBMISSIONS OF THE ASSESSEE, THE LD. CIT(A) CONFIRMED THE ADDITION MADE BY THE ASSESSING OFFICER. I.T.A. NO . 1 816 / M/ 13 4 5. AGGRIEVED, THE ASSESSEE IS IN APPEAL BEFORE THE TRIBUNAL AND BY REITERATING THE SUBMISSIONS AS MADE BEFORE THE AUTHORITIES BELOW, THE LD. COUNSEL FOR TH E ASSESSEE PLEADED THAT THE ADDITION MADE BY THE ASSESSING OFFICER MAY BE DELETED. ON THE OTHER HAND, THE LD. DR SUPPORTED THE ORDERS OF AUTHORITIES BELOW. 6. WE HAVE HEARD BOTH SIDES, PERUSED THE MATERIALS ON RECORD AND GONE THROUGH THE ORDERS OF AUTHO RITIES BELOW. IN THE RETURN OF INCOME FILED BY THE ASSESSEE, THE ASSESSEE HAS ADMITTED HIS INCOME OF .1,14,500/ - BESIDES AGRICULTURAL INCOME OF .4,90,000/ - . SINCE THE ASSESSEE WAS NOT MAINTAINING BOOKS OF ACCOUNTS, HE HAS SUBMITTED STATEMENT OF AFFAIRS B EFORE THE ASSESSING OFFICER AND IT WAS FOUND THAT THE ASSESSEE WAS MAINTAINING ACCOUNTS WITH AXIS BANK, HDFC BANK AND IOB. THE ASSESSING OFFICER HAS FOUND THAT THE ASSESSEE WAS MAINTAINING ANOTHER ACCOUNT WITH INDIAN BANK AND DEPOSITED MONEY ON VARIOUS DAT ES WAS RECORDED IN THE ASSESSMENT ORDER AND THE SAME IS REPRODUCED HEREIN ABOVE. EVEN BEFORE US, THE ASSESSEE HAS NOT OFFERED ANY EXPLANATION AS TO WHY THE AMOUNTS DEPOSITED IN THE INDIAN BANK ACCOUNT ARE NOT BROUGHT ON RECORD AND DISCLOSED IN THE RETURN O F INCOME . IN THE RETURN FILED BY THE ASSESSEE, THE ASSESSEE HAS ADMITTED AGRICULTURAL INCOME TO THE EXTENT OF .4,90,000/ - FOR THE ASSESSMENT YEAR UNDER CONSIDERATION AND ACCOUNTED IN THE ACCOUNTS MAINTAINED BY THE ASSESSEE IN AXIS BANK, HDFC BANK AND IOB . FOR THE AMOUNTS DEPOSITED IN I.T.A. NO . 1 816 / M/ 13 5 THE INDIAN BANK ACCOUNT IN CASH TO THE EXTENT OF .11,69,500/ - , THE ASSESSEE HAS NOT OFFERED ANY VALID EXPLANATION EITHER BEFORE THE ASSESSING OFFICER OR BEFORE THE LD. CIT(A) OR EVEN BEFORE THE TRIBUNAL. THEREFORE , WE ARE OF THE OPINION THAT THE ASSESSING OFFICER HAS RIGHTLY TREATED IT AS UNEXPLAINED MONEY UNDER SECTION 69A OF THE ACT, WHICH WAS CONFIRMED BY THE LD. CIT(A). ACCORDINGLY, WE FIND NO INFIRMITY IN THE ORDER PASSED BY THE LD. CIT(A) . THUS, THE GROUND RAISED BY THE ASSESSEE IS DISMISSED. 7 . IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE STANDS DISMISSE D . ORDER PRONOUNCED ON THE 29 TH J ANUARY, 2016 AT CHENNAI. SD/ - SD/ - (A. MOHAN ALANKAMONY ) ACCOUNTANT MEMBER ( DUVVURU RL REDDY ) JUDICIAL MEMBER CHENNAI, DATED, THE 29 . 0 1 .201 6 VM/ - / COPY TO: 1. / APPELLANT , 2. / RESPONDENT , 3. ( ) / CIT(A) , 4. / CIT , 5. / DR & 6. / GF.