ITO, Jaipur V. RAM AVATAR JAT, Jaipur

ITA 193/JPR/2011

• Counselvise Citation: 19323114 RSA 2011
• Duration Of Justice: 5 month(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-08-2011
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2006-2007
• Appeal Filed On: 04-03-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: D K MEENA
• Keywords: Additional evidence
• Section: 142(1); 144

Judgement Text

1 ITA 193-11 IN THE INCOME TAX APPELLATE TRIBUNAL JAIPUR BENCH A JAIPUR BEFORE SHRI R.K. GUPTA AND SHRI N.L. KALRA ITA NO. 193/JP/2011. ASSTT. YEAR : 2006-07. THE INCOME-TAX OFFICER, VS SHRI RAM AVTAR JAT, WARD 7(2), GRAM JHAI, POST BHAMBHORIYA, JAIPUR. TEHSIL SANGANER, JAIPUR. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI D.K. MEENA RESPONDENT BY : NONE DATE OF HEARING : 02.8.11. DATE OF PRONOUNCEMENT : 19.8.2011. ORDER DATE OF ORDER : 19/08/2011. PER R.K. GUPTA, J.M. THIS IS AN APPEAL BY DEPARTMENT AGAINST THE ORDER OF LD. CIT (A) RELATING TO ASSESSMENT YEAR 2006-07. 2. THE DEPARTMENT IS OBJECTING IN DELETING THE ADDI TION OF RS. 11,00,000/- MADE BY THE AO ON ACCOUNT OF DEPOSIT IN BANK BY ACCEPTING A DDITIONAL EVIDENCE UNDER RULE 46A OF ITAT RULES. 3. THE ASSESSMENT IN THIS CASE WAS COMPLETED ON AN INCOME OF RS. 11.5 LACS UNDER SECTION 144 OF THE IT ACT. AN INFORMATION WAS RECE IVED FROM BANK THAT ASSESSEE HAD MADE DEPOSIT OF RS. 11,00,000/- ON 9.6.2005 IN HIS BANK ACCOUNT IN CENTRAL BANK OF INDIA. A NOTICE UNDER SECTION 142(1) WAS ISSUED ON ASSESSEE REQUIRING TO FILE HIS RETURN OF INCOME. HOWEVER, ASSESSEE FILED A LETTER ON 20.3.2 007 AND REQUESTED FURTHER TIME FOR 2 FILING THE RETURN OF INCOME. FURTHER TIME WAS GIVE N. HOWEVER, NO RETURN WAS FILED WITHIN THE TIME ALLOWED. THEREFORE, AO COMPLETED ASSESSMEN T UNDER SECTION 144 BY MAKING ADDITION OF RS. 11,00,000/- ON ACCOUNT OF UNEXPLAIN ED DEPOSIT IN BANK ACCOUNT AND A FURTHER ADDITION OF RS. 50,000/- WAS MADE ON ESTIMA TE BASIS AS INCOME FROM OTHER SOURCES. DETAILED WRITTEN SUBMISSIONS WERE FILED B EFORE LD. CIT (A) AND ON REQUEST OF THE ASSESSEE THE DETAILED WRITTEN SUBMISSIONS ALONG WIT H VARIOUS EVIDENCES SHOWING THE SOURCE OF DEPOSIT IN BANK ALONG WITH A REQUEST LETT ER TO ADMIT THE SAME UNDER RULE 46A WAS SENT TO THE AO FOR HIS COMMENTS AND REPORT. THE AO SENT HIS REPORT DATED 15.12.2010, COPY OF THE SAME WAS PROVIDED TO THE AS SESSEE FOR COUNTER COMMENTS. COUNTER COMMENTS WERE FILED BEFORE LD. CIT (A). TH E LD. CIT (A) FOUND THAT ADDITIONAL EVIDENCE GOES TO THE ROOT OF THE CASE. THEREFORE, T HEY WERE ADMITTED UNDER RULE 46A OF THE IT RULES. THEREAFTER, LD. CIT (A) GIVEN THE FO LLOWING FINDING IN PARA 3 AT PAGES 3 & 4 OF HIS ORDER :- 3. ON CAREFUL CONSIDERATION OF THE FACTS OF THE C ASE AD SUBMISSIONS OF THE LD. A/R, AS WELL AS, THE EVIDENC ES FURNISHED BY THE LD. AR IN SUPPORT OF HIS WRITTEN SUBMISSIONS, I FIND THAT THE APPELLANTS FATHER, SHRI GOPAL LAL SOLD HIS 1/3 RD SHARE OF AGRICULTURAL LAND ON 15.3.2005 TO M/S. RADHEYSHYAM TOWNSHIP AND DEVELOPERS PVT. LTD., JAIPUR AND AGAINST THAT R ECEIVED A SUM OF RS. 12,23,000/-, WHICH WAS DEPOSITED BYM HIM (SHRI GOPAL LAL) IN HIS BANK ACCOUNT NO. 4711 IN CENTRAL BANK OF INDIA, BAD KE BALAJI BRANCH ON 23.3.3005. FURTHER, IT IS OBSERVED THAT S HRI GOPAL LAL TRANSFERRED A SUM OF RS. 11,00,000/-, ON 9.6.2005, FROM THAT BANK ACCOUNT, TO THE BANK ACCOUNT NO. 2804 IN THAT VERY BANK, BELONGING TO HIS SON (SHRI RAMAVTAR JAT, THE APPELLANT T). T HEREFORE, ON THESE FACTS, I FIND THAT THE SOURCE OF DEPOSIT OF RS.11,0 0,000/- ON 9.6.2005 IN THE APPELLANTS BANK ACCOUNT NO.2804 IN THE CENTRAL 3 BANK OF INDIA, BAD KE BALAJI BRANCH, STANDS FULLY E XPLAINED, AS THAT AMOUNT HAVING BEEN RECEIVED BY THE APPELLANT F ROM HIS FATHER. HENCE, IT IS HELD THAT THE ADDITION OF RS.11,00,000 /- MADE BY THE AO, TREATING THE SAME AS APPELLANTS UNDISCLOSED IN COME, IS NOT SUSTAINABLE. FURTHER, I FIND THAT THE LD. AO HAS N OT GIVEN ANY BASIS FOR ESTIMATING THE APPELLANTS UNDISCLOSED INCOME F ROM OTHER SOURCES AT RS.50,000/-. THEREFORE, IT IS HELD THAT SUCH AN ADDITION, MADE WITHOUT ANY BASIS, IS ALSO NOT SUSTAINABLE. HO WEVER, I FIND THAT, AS PER THE APPELLANTS BANK ACCOUNT, THE APPE LLANT HAS EARNED INTEREST OF RS. 2,950/- (RS. 2,929 + RS. 21) ON HIS BANK DEPOSITS DURING THIS YEAR. THEREFORE, THE APPELLANTS INCOM E FROM OTHER SOURCES IS TO BE TAKEN AT RS. 2,950/-, AS AGAINST T HE ESTIMATED INCOME FROM OTHER SOURCES AT RS. 50,000/- TAKEN BY THE LD. AO. ACCORDINGLY, THE APPELLANTS TOTAL INCOME IS DETERM INED AT RS. 2,950/-, AGAINST THE SAME ASSESSED AT RS. 11,50,000 /- BY THE LD. AO. CONSEQUENTLY, THIS GROUND OF APPEAL IS TREATED AS P ARTLY ALLOWED. 4. AGAINST THE ABOVE FINDINGS, THE DEPARTMENT IS IN APPEAL HERE BEFORE THE TRIBUNAL. 5. THE LD. D/R PLACED RELIANCE ON THE ORDER OF AO. 6. ON THE OTHER HAND, NONE APPEARED ON BEHALF OF TH E ASSESSEE. 7. THE APPEAL IS DISPOSED OFF AFTER HEARING THE LD. D/R AND CONSIDERING THE MATERIAL ON RECORD. 8. AFTER CONSIDERING THE ORDERS OF THE AO AND LD. C IT (A), WE FIND NO INFIRMITY IN THE ORDER OF LD. CIT (A), WHICH ARE REPRODUCED SOME WHERE ABOVE IN THIS ORDER. THE FINDINGS OF LD. CIT (A) ARE SELF EXPLANATORY WHICH REMAINED UNCONTROVERTED. THEREFORE, WE SEE NO REASON TO INTERFERE WITH THE FINDINGS OF LD. CIT (A). ACCORDINGLY, THE SAME ARE CONFIRMED. 4 9. IN THE RESULT, APPEAL OF THE DEPARTMENT IS DISMI SSED. 10. THE ORDER IS PRONOUNCED IN THE OPEN COURT ON 19 .8.2011. SD/- SD/- ( N.L. KALRA ) ( R.K. GUPTA ) ACCOUNTANT MEMBER JUDICIAL MEMBER JAIPUR, D/- COPY FORWARDED TO :- THE ITO WARD 7(2), JAIPUR. SHRI RAM AVTAR JAT, JAIPUR. THE CIT (A) THE CIT THE D/R GUARD FILE (ITA NO. 193/JP/2011) BY ORDER, AR ITAT JAIPUR.