Shri Piyushbhai Mangalbhai Patel, Ahmedabad V. The ITO, Ward-7(1)(5), Ahmedabad

ITA 198/AHD/2020

• Counselvise Citation: [2022] 103 COUNSELVISE.COM (IT) 9654 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 8 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-10-2022
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 19-10-2022
• Assessment Year: 2011-2012
• Appeal Filed On: 26-02-2020
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Gift
• Section: 148; 12; 143(1)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL “SMC” BENCH, AHMEDABAD BEFORE MS. SUCHITRA KAMBLE, JUDICIAL MEMBER I .T .A . No .1 98 /A h d / 20 20 ( A s s e s s me nt Y ea r : 20 1 1- 12 ) Pi yu sh bha i Ma n g a l bha i Pa te l A-4 0 3, R B L Ed if ic e, N r . V o da f o ne To w er , D a s k r o i, A h me dab ad - 38 2 4 81 V s . I nc o me Ta x O f f ic er , War d - 7 ( 1) ( 5 ) , A h me da ba d [P AN N o.A D UP P 3 97 1C] (Appellant) .. (Respondent) Appellant by : Shri P. D. Shah, A.R. Respondent by: Shri Ravindra, CIT DR D a t e of H ea r i ng 20.10.2022 D a t e of P r o no u n ce me nt 28.10.2022 O R D E R This appeal is filed by the assessee against the order dated 25.06.2019 passed by the Ld. CIT(Appeals)-7, Ahmedabad for A.Y. 2011- 12. 2. The grounds of appeal raised by the assessee read as under: “1. That the ld.AO has erred in law and facts by issuing notice under section 148 of the Act and further the ld.AO has erred in law by passing the order under section 143(3) r.w.s. 147 of the Act and therefore the ld. AO should be directed to accept the returned income and delete the addition made therein, in full. 2. That the ld. CIT(A) has erred in law and facts by confirming the addition of Rs. 12,70,000/- treating cash deposit as unexplained income and therefore the ld.AO be directed to accept the returned income and delete the addition made therein, in full. 3. That your appellant craves to leave to add, alter or amend, any ground at the time of hearing.” 3. The return of income was filed on 31.07.2011 declaring total income of Rs.3,35,490/-. The return was duly processed under Section 143(1) of the Income Tax Act, 1961. Subsequently, the Assessing Officer received AIR information that during F.Y. 2010-11 relevant to A.Y. 2011-12, the assessee ITA No.198/Ahd/2020 Piyushbhai Mangalbhai Patel vs. ITO Asst.Year –2011-12 - 2 - deposited total cash of Rs. 15,70,000/- in State Bank of India, Lunawada. Therefore, the then ITO issued a query letter to the assessee on 30.07.2013 and requested to submit the copy of return of income filed for A.Y. 2011-12 with computation of total income, supporting bank account statement, source of cash deposit with documentary evidences etc. In response, the assessee filed reply along with return of income and Form 16 only. The Assessing Officer made addition of Rs. 12,70,000/- on account of unexplained cash deposits in Bank account and Rs. 446 towards undisclosed interest income. 4. Being aggrieved by the assessment order, the assessee filed appeal before the CIT(A). The CIT(A) dismissed the appeal of the assessee. 5. The Ld. AR submitted that during the said assessment year, the assessee’s son was planning to go to USA for higher education and as per the norms of respective college or university, the student or his parents shall have minimum balance of Rs. 15,00,000/- in the bank account. Therefore, during the year, the assessee started arranging the fund and the same was sourced by loan from bank withdrawal from Provident Fund and Teachers’ credit society, Gift from father-in-law, Loan from sister-in-law, Gift from wife and remaining balance was managed from his personal savings. The Ld. AR submitted that the details of which are set out in para 3 of the order of the CIT(A) where the assessee’s submissions were quoted. Therefore, the Ld. AR prayed that the addition be deleted as the cash deposits were fully explained by the assessee before both the revenue authorities. ITA No.198/Ahd/2020 Piyushbhai Mangalbhai Patel vs. ITO Asst.Year –2011-12 - 3 - 6. The Ld. DR relied upon the assessment order and the order of the CIT(A). 7. Heard both the parties and perused all the relevant material available on record. It is pertinent to note that the assessee during the assessment proceedings has explained the reasons for which the assessee collected the cash deposits as well as the arrangement for the money. The assessee submitted evidence related to amount withdrawn from Teachers’ society which was accepted by the Assessing Officer. Besides this the confirmations from sister-in-law regarding the loan and gift from father-in- law were also on record. The same were not doubted by the Assessing Officer. The Gift from wife was also explained by the assessee through bank statements. Regarding personal saving the CIT(A) doubted that the assessee could not save that much amount. But the assessee was working as pharmacist in Government Hospital since 1976 and received salary, therefore, personal saving of a government employee cannot be doubted for several years. Thus, the Assessing Officer as well as the CIT(A) both failed to take cognizance of the evidences produced by the assessee during the assessment proceedings as well as before the CIT(A). The appeal of the assessee is allowed. 8. In result, appeal of the assessee is allowed. This Order pronounced in Open Court on 28/10/2022 Sd/- (Ms. SUCHITRA KAMBLE) JUDICIAL MEMBER Ahmedabad; Dated 28/10/2022 TANMAY, Sr. PS TRUE COPY ITA No.198/Ahd/2020 Piyushbhai Mangalbhai Patel vs. ITO Asst.Year –2011-12 - 4 - आदेश क त ल प अ े षत/Copy of the Order forwarded to : 1. अपीलाथ / The Appellant 2. यथ / The Respondent. 3. संबं धत आयकर आय ु त / Concerned CIT 4. आयकर आय ु त(अपील) / The CIT(A)- 5. वभागीय त न ध, आयकर अपील!य अ धकरण, अहमदाबाद / DR, ITAT, Ahmedabad 6. गाड' फाईल / Guard file. आदेशान ु सार/ BY ORDER, उप/सहायक पंजीकार (Dy./Asstt.Registrar) आयकर अपील य अ धकरण, अहमदाबाद / ITAT, Ahmedabad 1. Date of dictation 27.10.2022(The order dictated in her own computer) 2. Date on which the typed draft is placed before the Dictating Member 27.10.2022 3. Other Member..................... 4. Date on which the approved draft comes to the Sr.P.S./P.S .10.2022 5. Date on which the fair order is placed before the Dictating Member for pronouncement .10.2022 6. Date on which the fair order comes back to the Sr.P.S./P.S 28.10.2022 7. Date on which the file goes to the Bench Clerk 28.10.2022 8. Date on which the file goes to the Head Clerk.......................................... 9. The date on which the file goes to the Assistant Registrar for signature on the order.......................... 10. Date of Despatch of the Order..........................................