ITO,Wd.-1(3), Aurangabad V. Shri Bombe Sarangdhar Vithal, Jalna

ITA 193/PUN/2010

• Counselvise Citation: [2011] 140 COUNSELVISE.COM (IT) 49860 (ITAT-PUNE)
• Duration Of Justice: 1 year(s) 4 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-06-2011
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2005-2006
• Appeal Filed On: 02-02-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Source of fund
• Section: 142(1)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH B , PUNE BEFORE SHRI I.C. SUDHIR (JM) AND SHRI D.KARUNAKARA RAO (AM) ITA NO. 193/PN/2010 (ASSTT. YEAR : 2005-06) THE INCOME TAX OFFICER , WARD 1(3), AURANGABAD .. APP ELLANT V. SHRI BOMBE SARANGD HAR VITHAL, . RESPONDENT A/P AADGAON, TQ. BHOKARDAN, DIST. JALNA APPELLANT BY : MS. NEERA MALHOTRA RESPONDENT BY : NONE ORDER PER I.C. SUDHIR, JM THE REVENUESSEE HAS QUESTIONED FIRST APPELLATE ORD ER MAINLY ON THE GROUND THAT LD CIT(A) HAS ERRED IN DELETING TH E ADDITION MADE BY THE ITO AT RS. 27,78,157/- ON THE BASIS OF REMAND REPO RT OF ITO. 2. IN SUPPORT OF THE GROUND, THE LD. D.R. HAS BASIC ALLY PLACED RELIANCE ON THE ASSESSMENT ORDER WHICH WE WILL DISCUSS IN THE SUCCEEDING PARAGRAPHS. 3. THE RELEVANT FACTS OF THE CASE ARE THAT ON THE B ASIS OF ANNUAL INFORMATION RETURN FILED U/S. 285BA, IT CAME TO THE NOTICE OF THE ITO (CIB) THAT THE ASSESSEE HAD DEPOSITED CASH AMOUNTIN G TO RS. 27,78,157/- IN HIS SAVING BANK A/C. MAINTAINED WITH THE AURANG ABAD-JALNA GRAMIN BANK. THE I.T.O ISSUED NOTICE U/S. 142(1) TO THE A SSESSEE FOR FILING RETURN OF INCOME AND EXPLAINING THE SOURCE OF CASH DEPOSIT ED IN SAVING BANK A/C. FROM TIME TO TIME. IN VIEW OF NON-COMPLIANCE BY THE ASSESSEE, THE ITO CONCLUDED THAT THE ASSESSEE HAD NO EXPLANATION TO OFFER REGARDING THE SOURCE OF CASH AND ACCORDINGLY, HE PASSED ASSES SMENT ORDER TREATING ITA . NO 193/PN/2010 SHRI BOMBE SARANGDHAR VITHAL.. A.Y 2005-06 PAGE OF 3 2 ENTIRE DEPOSIT OF RS. 27,78,157/- AS INCOME OF THE ASSESSEE. THE LD CIT(A) BEING SATISFIED WITH THE EXPLANATION OF THE ASSESSEE HAS DELETED THE ADDITION, AGAINST WHICH, REVENUE IS IN APPEAL B EFORE US. 4. HAVING GONE THROUGH THE ORDERS OF THE AUTHORITIE S BELOW, WE DO NOT FIND INFIRMITY IN THE FIRST APPELLATE ORDER ON THE ISSUE SINCE THE LD CIT(A) HAS DELETED THE ADDITION ON THE BASIS OF REMAND REP ORT FILED BY THE I.T.O. BEFORE THE LD CIT(A), THE ASSESSEE EXPLAINED THAT H E IS AN AGRICULTURIST RESIDING AT VILLAGE ADGAON, TAL: BHOKARDAN, DIST. J ALNA. IT WAS SUBMITTED THAT WITH THE APPROVAL OF PANCHAYAT SAMITI, VILLAGE RS DECIDED TO CONSTRUCT A TEMPLE BY COLLECTING DONATIONS AND ASSESSEE WAS S ELETED AS CUSTODIAN OF THE FUNDS. IT WAS FURTHER EXPLAINED THAT THE E NTIRE AMOUNT DEPOSITED IN THE SAVING BANK ACCOUNT OF THE ASSESSEE MAINTAIN ED WITH AURANGABAD- JALNA GRAMIN BANK REPRESENTS THE DONATION COLLECTED FOR CONSTRUCTION OF THE TEMPLE WHICH WAS SUBSEQUENTLY UTILIZED FOR CONS TRUCTING THE TEMPLE AND TEMPLE COMPLEX KNOWN AS ROKDOBA MAHARAJA SAN STHAN. IN SUPPORT OF HIS CLAIM, THE ASSESSEE FURNISHED A COPY OF THE RESOLUTION PASSED BY THE VILLAGERS, CERTIFICATES ISSUED FROM VILLAGE PANCHAYAT AND 7 PHOTOGRAPHS OF NEWLY CONSTRUCTED TEMPLE AND SOME SH OPS IN THE TEMPLE COMPLEX. THE RELEVANT PORTION OF THE EXPLANATION O F THE ASSESSEE IN THIS REGARD HAS BEEN REPRODUCED BY THE LD CIT(A) AT PAGE NOS. 2 & 3 OF THE FIRST APPELLATE ORDER. THE LD CIT(A) CALLED FOR RE MAND REPORT OF THE I.T.O ON THE ABOVE SUBMISSIONS OF THE ASSESSEE. THE I.T .O FURNISHED HIS REMAND REPORT ON 24.6.2009, CONTENTS WHEREOF HAS BE EN REPRODUCED AT PAGE NOS.3 & 4 OF THE FIRST APPELLATE ORDER. IN HI S REMAND REPORT, THE ITO HAS SUMMARIZED HIS FINDING AS UNDER : FINALLY, I WOULD LIKE TO SUBMIT THAT THE MONIES DE POSITED IN THE BANK ACCOUNT OF THE ASSESSEE TO THE EXTENT OF RS.27 ,78,157/- IS NOT THE INCOME OF THE ASSESSEE, THE SAME IS EXCLUSIVELY REPRESENTS THE ITA . NO 193/PN/2010 SHRI BOMBE SARANGDHAR VITHAL.. A.Y 2005-06 PAGE OF 3 3 DONATIONS COLLECTED FROM VARIOUS PEOPLE AND PILGRIM S FOR THE PURPOSE OF CONSTRUCTION OF SHOPPING COMPLEX AND STA Y ARRANGEMENTS FOR THE PILGRIMS WITH AN INTENTION TO CREATE SOURCES OF INCOME FOR MEETING THE DAY TO DAY MAINTENANCE OF TE MPLE. ON THE BASIS OF ABOVE REPORT, WHICH IS NOT REBUTTED BY THE REVENUE TILL DATE, WE ARE OF THE VIEW THAT THE LD CIT(A) HAS RIG HTLY DELETED THE ADDITION WITH THIS FINDING THAT RS.27,78,157/- IS NOT THE INCOME OF THE ASSESSEE. THE SAME IS UPHELD. THE GROUND IS ACCOR DINGLY REJECTED. 5. IN RESULT, APPEAL IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 30TH JUNE 20 11 SD/- SD/- ( D. KARUNAKARA RAO ) ACCOUNTANT MEMBER ( I.C. SUDHIR ) JUDICIAL MEMBER PUNE, DATED THE 30TH JUNE, 2011 US COPY OF THE ORDER IS FORWARDED TO : 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT AURANGABAD 4. THE CIT(A), AURANAGABD 4. THE D.R. B BENCH, PUNE 5. GUARD FILE BY ORDER ASSISTANT REGISTRAR INCOME TAX APPELLATE TRIBUNAL PUNE