V.K.PURI., Kolkata V. A.C.I.T.Cir - 26,Kol., Kolkata

ITA 1857/KOL/2012

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 83150 (ITAT-KOLKATA)
• Duration Of Justice: 1 year(s) 9 month(s) 30 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-10-2014
• Appeal Filed By: Assessee
• Bench Allotted: A
• Next Hearing Date: 21-11-2016
• Assessment Year: 1999-2000
• Appeal Filed On: 17-12-2012
• Court: TRIBUNAL
• Assessee Lawyers: V K PURI
• Keywords: Gift

Judgement Text

I.T.A. NOS. 1857, 1858 & 1859/KOL./2012 ASSESSMENT YEARS: 1999-2000, 2000-2001 & 2001-2002 PAGE 1 OF 8 IN THE INCOME TAX APPELLATE TRIBUNAL, KOLKATA A BENCH, KOLKATA BEFORE SHRI P.M. JAGTAP, ACCOUNTANT MEMBER AND SHRI N.V. VASUDEVAN, JUDICIAL MEMBER I.T.A. NOS. 1857, 1858 & 1859/KOL/ 2012 ASSESSMENT YEARS: 1999-2000, 2000-2001 & 2001-2002 SHRI V.K. PURI,.................................... .............................................APPELL ANT A-184, SARITA VIHAR, NEW DELHI-110 076 [PAN : AFSPP 9547 C] -VS.- ASSISTANT COMMISSIONER OF INCOME TAX,.............. .......................RESPONDENT CIRCLE-26, KOLKATA; 169, A.J.C. BOSE ROAD, KOLKATA-700 014 APPEARANCES BY: SHRI V.K. PURI, ADVOCATE, FOR THE ASSESSEE SHRI SALLONG YADEN, ADDL. CIT, D.R., FOR THE DEPARTMENT DATE OF CONCLUDING THE HEARING : NOVEMBER 21, 2016 DATE OF PRONOUNCING THE ORDER : DECEMBER 02, 2016 O R D E R PER SHRI P.M. JAGTAP: ALL THESE THREE APPEALS FILED BY THE ASSESSEE AGAIN ST THE COMMON ORDER OF LD. COMMISSIONER OF INCOME TAX (APPEALS)-X IV, KOLKATA DATED 19.11.2012 WERE EARLIER DISPOSED OF BY THE TRIBUNAL VIDE ITS COMMON ORDER DATED 16.10.2014. THEREAFTER THE ASSESSEE MOV ED MISCELLANEOUS APPLICATIONS BEING M.A. NOS. 74, 75 & 76/KOL/2016 P OINTING OUT THAT CERTAIN ADDITIONS MADE TO THE TOTAL INCOME OF THE A SSESSEE FOR ALL THE THREE YEARS UNDER APPEAL WERE CONFIRMED BY THE TRIB UNAL VIDE ITS ORDER DATED 16.10.2014 (SUPRA) WITHOUT TAKING INTO CONSID ERATION THE SPECIFIC COMMENTS MADE BY THE ASSESSING OFFICER ON THE CONCE RNED ISSUES IN THE SECOND REMAND REPORT. IT WAS ALSO POINTED OUT BY TH E ASSESSEE IN THE SAID MISCELLANEOUS APPLICATIONS THAT ONE OF THE ISSUES I NVOLVED IN GROUNDS NO. 2 TO 5 OF HIS APPEAL FOR A.Y. 2001-02 BEING I.T.A. NO. 1859/KOL/2012 RELATING TO THE ADDITION OF RS.60,000/- HAD NOT BEE N DECIDED BY THE TRIBUNAL VIDE ITS ORDER DATED 16.10.2014 (SUPRA). A FTER CONSIDERING THE I.T.A. NOS. 1857, 1858 & 1859/KOL./2012 ASSESSMENT YEARS: 1999-2000, 2000-2001 & 2001-2002 PAGE 2 OF 8 SUBMISSIONS MADE BY THE ASSESSEE AND ON THE PERUSAL OF THE RELEVANT RECORD, THE TRIBUNAL FOUND THAT THE ORDER PASSED BY IT CONTAINED THE MISTAKES AS POINTED OUT BY THE ASSESSEE IN HIS MISC ELLANEOUS APPLICATIONS. ACCORDINGLY, THE SAID MISCELLANEOUS A PPLICATIONS FILED BY THE ASSESSEE WERE ALLOWED BY THE TRIBUNAL VIDE ITS COMMON ORDER DATED 05.08.2016, WHEREBY THE ORDER DATED 16.10.2014 (SUP RA) WAS RECALLED BY THE TRIBUNAL TO THE EXTENT IT DECIDED THE ISSUES RE LATING TO THE RELEVANT ADDITIONS AND THE REGISTRY WAS DIRECTED TO FIX THE APPEALS OF THE ASSESSEE BEFORE THE REGULAR BENCH FOR THE LIMITED PURPOSE OF HEARING AND DECIDING ONLY THOSE ISSUES. ACCORDINGLY, THE CASE HAS BEEN H EARD AND THE SAID ISSUES ARE NOW BEING DECIDED ON MERITS. 2. WE HAVE HEARD THE ARGUMENTS OF BOTH THE SIDES AN D ALSO PERUSED THE RELEVANT MATERIAL AVAILABLE ON RECORD. THE DETAILS OF ADDITIONS WHICH WE ARE NOW CALLED UPON TO DECIDE AS INVOLVED IN THE YE ARS UNDER CONSIDERATION ALONG WITH THE CORRESPONDING COMMENTS MADE BY THE ASSESSING OFFICER THEREON IN THE SECOND REMAND REPO RT ARE REPRODUCED HEREUNDER:- ASSESSMENT YEAR: 1999-2000 (ITA NO. 1857/KOL/2012) SL. NO. PARAGRAPH NO. & AMOUNT OF ADDITION A.O.S COMMENTS IN THE SECOND REMAND REPORT 1. 4.3(13), RS.40,000/- A SUM OF RS 1,20,000 HAS BEEN DEPOSITED IN CASH WHICH GETS FULLY EXPLAINED FROM THE CASH FLOW STATEMENT AND WITH THE CASH WITHDRAWALS FROM BANKS,' AND AS REFLECTED IN THE COPIES OF BANK STATEMENTS, ALL THE CORRESPONDING DETAILS ARE GIVEN AT PAGES 100-115 OF PAPER BOOK, THE BALANCE AMOUNTS OF RS.1,665/- AND RS.650/- ARE EXPLAINED AS BANK INTEREST AND DIVIDEND INCOME (PAGES 149-52 OF PAPER BOOK), BOTH OF WHICH AMOUNTS HAVE BEEN OFFERED TO TAX, THE RECEIPTS ARE EXPLAINED AND VERIFIED WHICH FOUND TO BE IN ORDER WITH REFERENCE TO PAGE NO. MENTIONED IN CL- I.T.A. NOS. 1857, 1858 & 1859/KOL./2012 ASSESSMENT YEARS: 1999-2000, 2000-2001 & 2001-2002 PAGE 3 OF 8 5. 2. 4.3(16), RS.55,000/- THIS IS A FIXED DEPOSIT OF RS.55,000/- MADE WITH GLOBAL TRUST BANK LTD, NARIMAN POINT, MUMBAI, AS SEEN FROM THE SUPPORTING DOCUMENTS AT PAGES 156-57 OF PAPER BOOK. THE DEPOSIT WAS MADE IN CASH AND THE DEPOSITED AMOUNT IS EXPLAINED THROUGH THE CASH FLOW STATEMENT, WHICH HAS BEEN VERIFIED WITH CASH WITHDRAWALS FROM BANKS, AND AS REFLECTED IN THE COPIES OF BANK STATEMENTS. ALL THE CORRESPONDING DETAILS ARE GIVEN AT PAGES 100- 115 OF PAPER BOOK. THIS DEPOSIT IS NOT REFLECTED IN THE STATEMENT OF AFFAIRS OF AMITA PURI FOR REASON THAT IT WAS ENCASHED WITHIN THE SAME ASSESSMENT YEAR. HOWEVER THE INTEREST INCOME FROM IT WAS OFFERED TO TAX BY AMITA PURI, THUS THE DEPOSIT GETS EXPLAINED AND VERIFIED WHICH FOUND TO BE IN ORDER WITH REFERENCE TO PAGE NO. MENTIONED IN CL-5. 3. 4.3(19), RS.96,000/- THESE ARE INVESTMENTS OF RS. 48,000/- IN FIXED DEPOSITS IN GLOBAL TRUST BANK, FC ROAD, PUNE. THE DETAILS ARE GIVEN AT PAGES 161-63 OF THE PAPER BOOK. THE FIRST INVESTMENT IN THE NAME OF V.K. PURI WAS MADE THOUGH DEBIT ON 10.09.1998 IN SAVINGS BANK A/C NO. 61063 IN HDFC BANK, PUNE - PAGE 139 OF PAPER BOOK. THE OTHER INVESTMENT IN THE NAME NEHA PURI WAS MADE IN CASH AND THE DEPOSITED AMOUNT IS EXPLAINED THROUGH THE CASH FLOW STATEMENT, WHICH HAS BEEN VERIFIED WITH CASH WITHDRAWALS FROM BANKS AND AS REFLECTED IN THE COPIES OF BANK STATEMENTS. ALL THE CORRESPONDING DETAILS ARE GIVEN AT PAGES 100-115 OF PAPER BOOK. THE INVESTMENTS ARE EXPLAINED AND VERIFIED WHICH FOUND TO BE IN ORDER WITH REFERENCE TO PAGE NO. MENTIONED IN CL-5. ASSESSMENT YEAR: 2000-2001 (ITA NO. 1858/KO L/2012) SL. NO. PARAGRAPH NO. & AMOUNT OF ADDITION A.O.S COMMENTS IN THE SECOND REMAND REPORT 1. 8.1(3), RS.48,000/- THIS IS A FIXED DEPOSIT MADE WITH ICICI BANK, BUND GARDEN ROAD, PUNE. THE DEPOSIT WAS MADE IN CASH AND THE DEPOSITED AMOUNT IS EXPLAINED THROUGH THE CASH FLOW STATEMENTS, WHICH HAS BEEN I.T.A. NOS. 1857, 1858 & 1859/KOL./2012 ASSESSMENT YEARS: 1999-2000, 2000-2001 & 2001-2002 PAGE 4 OF 8 VERIFIED WITH CASH WITHDRAWALS FROM BANKS, AND AS REFLECTED IN THE COPIES OF BANK STATEMENTS. ALL THE CORRESPONDING DETAILS ARE GIVEN AT PAGES 55- 63 OF PAPER BOOK. ALSO REFLECTED IN THE STATEMENT OF AFFAIRS OF AMITA PURI (AT PAGES 71 OF PAPER BOOK), WHICH WAS PART OF HER ASSESSMENT PROCEEDINGS FOR THE AY-PAGES 73-77 OF PAPER BOOK. THUS THE DEPOSIT GETS EXPLAINED AND VERIFIED AND FOUND IN ORDER WITH REFERENCE TO PAGE NO. MENTIONED IN CL-5. 2. 8.1(5), RS.48,000/- THE FIRST OF THESE IS A FIXED DEPOSIT MADE WITH ICICI BANK, SHIVAJI NAGAR, GARDEN ROAD, PUNE. THE DEPOSIT WAS MADE IN CASH AND THE DEPOSITED AMOUNT IS EXPLAINED THROUGH THE CASH FLOW STATEMENT, WHICH HAS BEEN VERIFIED WITH CASH WITHDRAWALS FROM BANKS, AND AS REFLECTED IN THE COPIES OF BANK STATEMENTS. ALL THE CORRESPONDING DETAILS ARE GIVEN AT PAGES 49-54 AND 57-63 OF PAPER BOOK. ALSO REFLECTED IN THE STATEMENT OF AFFAIRS OF AMITA PURI (AT PAGES 71 OF PAPER BOOK), WHICH WAS PART OF HER ASSESSMENT PROCEEDINGS FOR THE A.Y. THUS THE DEPOSIT GETS EXPLAINED AND VERIFIED AND FOUND IN ORDER WITH REFERENCE TO PAGE NO. MENTIONED IN CL-5. 3. 8.1(8), RS.52,194/- THIS AMOUNT OF RS.2,95,471/- REPRESENTS AMOUNTS CREDITED TO THE HDFC BANK, PUNE SB A/C. 61063 FROM 03.05.1999 TO 31.03.2000. THIS REPRESENTS CASH DEPOSITS, HONORARIUM, INTEREST, REDEMPTION AMOUNTS OF MUTUAL FUNDS, MATURITY AMOUNTS OF COMPANY DEPOSITS, CHEQUE RETURNED, RE-CREDIT IN ATM ETC. THE BREAK-UP OF THIS AMOUNT AND THE SOURCES OF EACH DEPOSIT ARE GIVEN AT PAGE 96 OF THE PAPER BOOK. ALL THESE HAVE BEEN VERIFIED WITH SUPPORTING DOCUMENTS AT PAGES 97-116 OF PAPER BOOK. THE CASH DEPOSIT OF RS.56,000/- IS REFLECTED IN THE CASH FLOW STATEMENT, WHICH HAS BEEN VERIFIED WITH CASH WITHDRAWALS FROM BANKS AND AS REFLECTED IN THE COPIES OF BANK STATEMENTS. ALL THE CORRESPONDING DETAILS GIVEN AT PAGES 55-63 OF PAPER BOOK WERE VERIFIED AND FOUND IN ORDER WITH REFERENCE TO PAGE NO. MENTIONED IN CL-5. 4. 8.1(41) RS.22,000/- BACK SIDE OF PAGE NO. 101 OF THE PAPER BOOK OF THE ASSESSEE IS SUFFICIENT TO SHOW THAT BOTH THE DEPOSITS OF RS.11,000/- EACH WERE MADE OUT OF THE MATURITY PROCEEDS OF THE OLD DEPOSITS, WHICH WERE RENEWED FOR A FURTHER PERIOD. (OUR OWN I.T.A. NOS. 1857, 1858 & 1859/KOL./2012 ASSESSMENT YEARS: 1999-2000, 2000-2001 & 2001-2002 PAGE 5 OF 8 OBSERVATION/FINDING) ASSESSMENT YEAR: 2001-2002 (ITA NO. 18 59/KOL/2012) SL. NO. PARAGRAPH NO. & AMOUNT OF ADDITION A.O.S COMMENTS IN THE SECOND REMAND REPORT 1. 12(9), RS.9,347/- THESE ARE AMOUNTS REPRESENTING ACCRUED INTEREST ON FIXED DEPOSITS IN THE NAMES OF V.K. PURI AND NEHA PURI IN UTI BANK, JM ROAD, PUNE AT PAGES 92-108 OF THE PAPER BOOK. THE DEPOSITS WERE MADE ON 27.03.1999 AND MATURED ON 27.3.2002. THERE WERE SUBJECT MATTER OF ADDITION IN AY 1999-2000. TAX ON ACTUAL INTEREST OF RS.20,469/- EACH WAS PAID BY AMITA PURI AN NEHA PURI DURING AY 2002-3 ON CASH BASIS. SINCE TAX HAS ALREADY BEEN PAID AND ASSESSMENTS FINALIZED WHICH IS VERIFIED AND FOUND IN ORDER WITH REFERENCE TO PAGE NO. MENTIONED IN CL-5. 2. 12(11), RS.5,977/- THESE AMOUNTS REPRESENT THE INTEREST RECEIVED ON 09.04.2000 ON MATURITY OF FIXED DEPOSITS OF RS.11,000/- EACH WITH M/S. ACC LTD. IN THE NAMES OF V.K. PURI, DIVYA PURI AND NEHA PURI HAVING NOS. 726542, 726541 AND 726543 AND AS REFERRED TO IN THE PREVIOUS SERIAL NO. THE INTEREST INCOMES OF RS.5,977/- EACH FROM DEPOSITS IN THE NAMES OF V.K. PURI AND DIVYA PURI WERE OFFERED TO TAX BY AMITA PURI. THIS IS CLEAR FROM HER STATEMENT OF AFFAIRS AT PAGES 79-87, ASSESSMENT ORDER AT PAGES 109-13. THIS IS ALSO CLEAR FROM ORDERS DATED 15.04.2010 AND 31.08.2010 GIVING EFFECT TO ITAT ORDER 11.05.2009 AND THE DETAILS OF INCOME OFFERED TO TAX BY HER. NEHA PURI OFFERED THIS INTEREST INCOME IN THE RETURN WHICH IS VERIFIED. 3. 12(13 & 14), RS.53,017/- THESE TWO REPRESENT A TOTAL AMOUNT OF RS.4,08,951/- WHICH WAS CREDITED TO THE HDFC BANK, PUNE SB A/C. 61063 FROM 01.04.2000 TO 31.03.2001 AT PAGES 121-22 OF PAPER BOOK. OUT OF THIS, RS.3,35,404/- REPRESENTS CASH DEPOSIT AND FINDS A PLACE IN THE CASH FLOW STATEMENT, WHICH HAS BEEN VERIFIED WITH CASH WITHDRAWALS FROM BANKS, AND AS REFLECTED IN THE COPIES OF BANK STATEMENTS. ALL THE CORRESPONDING DETAILS ARE GIVEN AT PAGES 73-78 OF PAPER BOOK, RS.9000/- I.T.A. NOS. 1857, 1858 & 1859/KOL./2012 ASSESSMENT YEARS: 1999-2000, 2000-2001 & 2001-2002 PAGE 6 OF 8 AND RS 10,000/- HAVE BEEN STATED TO REPRESENT RETURN OF LOAN AND A GIFT BY THE APPELLANT'S FATHER - IN-LAW TO HIS GRAND-CHILDREN RESPECTIVELY. THE BALANCE RS.54,547/- REPRESENTS THE PRINCIPAL AMOUNT, AND INTEREST/DIVIDEND RECEIVED. THE DETAILS OF THESE ARE GIVEN AT PAGE 123 OF PAPER BOOK. ALL THE AMOUNTS RECEIVED ARE SUPPORTED BY DOCUMENTS AT PAGES 124-35 OF PAPER BOOK. THE SAME HAVE BEEN VERIFIED. INTEREST/DIVIDEND ALREADY OFFERED TO TAX BY AMITA PURI AND NEHA PURI WHICH HAS BEEN EXAMINED AND VERIFIED AND FOUND IN ORDER WITH REFERENCE TO PAGE NO. MENTIONED IN CL-5. 3. A PERUSAL OF THE CORRESPONDING COMMENTS MADE BY THE ASSESSING OFFICER IN HIS REMAND REPORT SUBMITTED TO THE LD. C IT(APPEALS) ON THE RELEVANT ADDITIONS MADE TO THE TOTAL INCOME OF THE ASSESSEE IN ALL THE THREE YEARS UNDER CONSIDERATION CLEARLY SHOWS THAT THE EXPLANATION OFFERED BY THE ASSESSEE IN RESPECT OF THE SAID ADDI TIONS WAS ACCEPTED BY THE ASSESSING OFFICER AFTER DUE VERIFICATION AND TH IS POSITION CLEARLY EVIDENT FROM THE REMAND REPORT SUBMITTED BY THE ASS ESSING OFFICER TO THE LD. CIT(APPEAL) HAS NOT BEEN DISPUTED EVEN BY THE L D. D.R. IT IS THUS CLEAR THAT THE SAID ADDITIONS MADE TO THE TOTAL INCOME OF THE ASSESSEE IN ALL THE THREE YEARS UNDER CONSIDERATION ARE NOT SUSTAINABLE AS AGREED BY THE ASSESSING OFFICER HIMSELF IN HIS REMAND REPORT ON D UE VERIFICATION. WE, THEREFORE, DELETE THE SAID ADDITIONS MADE TO THE TO TAL INCOME OF THE ASSESSEE AND ALLOW THE RELEVANT GROUNDS OF THE ASSE SSEES APPEALS FOR ALL THE THREE YEARS UNDER CONSIDERATION. 4. AS REGARDS THE ADDITION OF RS.60,000/- MADE TO T HE TOTAL INCOME OF THE ASSESSEE FOR A.Y. 2001-02, IT IS OBSERVED THAT THE SAME AS PER THE ORDER OF THE ASSESSING OFFICER WAS MADE ON THE BASI S OF A DOCUMENT FOUND AND SEIZED DURING THE COURSE OF SEARCH, WHICH WAS I DENTIFIED AS D/113. AT THE TIME OF HEARING, THE LD. COUNSEL FOR THE ASSESS EE HAS INVITED OUR ATTENTION TO THE COPY OF THE SAID DOCUMENT PLACED A T PAGE NO. 42 OF HIS I.T.A. NOS. 1857, 1858 & 1859/KOL./2012 ASSESSMENT YEARS: 1999-2000, 2000-2001 & 2001-2002 PAGE 7 OF 8 PAPER BOOK TO SHOW THAT THE SAME IS IN RESPECT OF T HE INVESTMENT OF RS.10,000/- MADE BY THE ASSESSEE IN PURCHASE OF KIS AN VIKASH PATRA AND NOT IN RESPECT OF INVESTMENT OF RS.60,000/- MADE BY THE ASSESSEE IN SRF LIMITED AS ALLEGED BY THE ASSESSING OFFICER. HE HAS ALSO INVITED OUR ATTENTION TO THE SUBMISSIONS MADE BEFORE THE ASSESS ING OFFICER DURING THE COURSE OF ASSESSMENT PROCEEDINGS (RELEVANT PORTION AT PAGE 37 OF THE PAPER BOOK), WHEREIN A SPECIFIC OBJECTION WAS RAISE D BY THE ASSESSEE AS REGARDS THE INVESTMENT OF RS.60,000/- IN SRF LIMITE D NOT BEING REFLECTED IN THE RELEVANT SEIZED DOCUMENT D/113. AS SUBMITTED BY HIM, THE ASSESSING OFFICER, HOWEVER, HAS NOT BROUGHT ON RECO RD ANY MATERIAL TO ESTABLISH THE INVESTMENT OF RS.60,000/- ALLEGEDLY M ADE BY THE ASSESSEE IN SRF LIMITED AND THIS POSITION HAS NOT BEEN DISPUTED EVEN BY THE LD. D.R. IT IS THUS CLEAR THAT THERE IS NO EVIDENCE BROUGHT ON RECORD BY THE DEPARTMENT TO SHOW THE INVESTMENT OF RS.60,000/- AL LEGEDLY MADE BY THE ASSESSEE IN SRF LIMITED AND IN THE ABSENCE OF THE S AME, WE FIND MERIT IN THE ARGUMENT OF THE LD. COUNSEL FOR THE ASSESSEE TH AT THE IMPUGNED ADDITION OF RS.60,000/- MADE BY THE ASSESSING OFFIC ER IS LIABLE TO BE DELETED. ACCORDINGLY, GROUNDS NO. 2 TO 5 OF THE ASS ESSEES APPEAL FOR A.Y. 2001-02 ARE ALLOWED. 5. IN THE RESULT, ALL THE THREE APPEALS OF THE ASSE SSEE STAND PARTLY ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON DECEMBER 02, 2016. SD/- SD/- (N.V. VASUDEVAN) (P.M. JAGTAP) JUDICIAL MEMBER ACCOUNTANT MEMBER KOLKATA, THE 2 ND DAY OF DECEMBER, 2016 COPIES TO : (1) SHRI V.K. PURI, A-184, SARITA VIHAR, NEW DELHI-110 076 (2) ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE-26, KOLKATA, 169, A.J.C. BOSE ROAD, KOLKATA-700 014 I.T.A. NOS. 1857, 1858 & 1859/KOL./2012 ASSESSMENT YEARS: 1999-2000, 2000-2001 & 2001-2002 PAGE 8 OF 8 (3) COMMISSIONER OF INCOME TAX(APPEALS)-XIV, KOLKATA, (4) COMMISSIONER OF INCOME TAX, KOLKATA-18, KO LKATA (5) THE DEPARTMENTAL REPRESENTATIVE (6) GUARD FILE BY ORDER ASSISTANT REGISTRAR, INCOME TAX APPELLATE TRIBUNAL, KOLKATA BENCHES, KOLKATA LAHA/SR. P.S.