ACIT, Kancheepuram V. T.Ravishankar, Kancheepuram

ITA 2029/CHNY/2015

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 9773 (ITAT-CHENNAI)
• Duration Of Justice: 6 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-04-2016
• Appeal Filed By: Department
• Bench Allotted: B
• Next Hearing Date: 29-02-2016
• Assessment Year: 2011-2012
• Appeal Filed On: 28-09-2015
• Court: TRIBUNAL
• Department Lawyers: A B KOLI
• Assessee Lawyers: P RAJASEKARAN
• Keywords: Income from undisclosed sources; Peak credit

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH : CHENNAI . . . , . !' , # $ % [ BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER ] ./ I.T.A.NO.2029/MDS/2015 / ASSESSMENT YEAR : 2011-12 THE ASSTT. COMMISSIONER OF INCOME-TAX KANCHIPURAM CIRCLE KANCHIPURAM VS. SHRI T. RAVISHANKAR 41-B, METTU STREET KANCHEEPURAM 631 501 [PAN BEPPR 7179 Q ] ( &' / APPELLANT) ( ()&' /RESPONDENT) / APPELLANT BY : SHRI A.B KOLI, JCIT /RESPONDENT BY : SHRI P. RAJASEKARAN, CA / DATE OF HEARING : 29 - 02 - 2016 ! / DATE OF PRONOUNCEMENT : 01 - 04 - 2016 / O R D E R PER N.R.S.GANESAN, JUDICIAL MEMBER THIS APPEAL OF THE REVENUE IS DIRECTED AGAINST THE ORDER OF THE COMMISSIONER OF INCOME-TAX (APPEALS)-7, CHENNA I, DATED 21.4.2015 AND PERTAINS TO ASSESSMENT YEAR 2011-1 2. 2. SHRI A.B KOLI, LD. DEPARTMENTAL REPRESENTATIVE SUBM ITTED THAT THE ASSESSING OFFICER ON THE BASIS OF THE ANNUAL IN FORMATION REPORT FOUND THAT THERE WERE CASH DEPOSITS IN THE ASSESSE ES BANK ACCOUNTS WITH AXIS BANK AND LAKSHMI VILAS BANK. THE ASSESS EE EXPLAINED ITA NO. 2029/15 :- 2 -: BEFORE THE ASSESSING OFFICER THAT THE AMOUNTS RECEI VED FROM REAL ESTATE BUSINESS AND MILK BUSINESS WAS DEPOSITED IN THE BANKS. IN THE ABSENCE OF ANY SUPPORTING MATERIAL, THE ASSESSING O FFICER FOUND THE DEPOSIT OF ` 17,20,488/- IN THE LAKSHMI VILAS BANK AS INCOME OF THE ASSESSEE. SIMILARLY, CASH DEPOSITS OF ` 37,18 ,800/- IN AXIS BANK ACCOUNT WAS ALSO NOT SUBSTANTIATED BY PRODUCING NEC ESSARY MATERIALS. THEREFORE, THE ASSESSING OFFICER FOUND THAT THE MON EY DEPOSITED IN THE BANKS AS UNACCOUNTED INCOME OF THE ASSESSEE. HOWE VER, ON APPEAL BY THE ASSESSEE, THE CIT(A) FOUND THAT THERE WERE CASH WITHDRAWALS FROM BANK ON SEVERAL DATES AND THESE CASH WITHDRAWA LS WILL FORM SOURCE FOR THE SUBSEQUENT CASH DEPOSITS. AFTER REF ERRING TO THE REGULAR BOOKS OF ACCOUNT, THE CIT(A) FOUND THAT THERE WAS C ASH BALANCE OF ` 6,63,108/- AS ON 1.4.2010. ACCORDINGLY, THE CIT(A) HAS TAKEN THE PEAK CASH CREDIT AS UNACCOUNTED CASH DEPOSITED IN THE BA NK ACCOUNT. ULTIMATELY, THE CIT(A) FOUND THAT THE PEAK CASH CRE DIT IN THE BANK ACCOUNT IS ` 4,07,696/- AS ON 1.10.2010. AFTER CONSIDERING THE ESTIMATED INCOME AT ` 1,75,000/- FROM CONSULTANCY CHARGES, THE CIT(A) FOUND THAT THE PEAK CREDIT COMES TO ` 2,32,696/-. ACCORDINGLY, THE CIT(A) CONFIRMED THE ADDITION TO THE EXTENT OF ` 2,32,696/- INSTEAD OF ` 52,06,592/- ADDED BY THE ASSESSING OFFICER. THE L D. DR FURTHER SUBMITTED THAT AS ON 4.10.2010, THERE WAS A CASH DE POSIT OF ` 25 LAKHS. THIS DEPOSIT OF ` 25 LAKHS ON A SINGLE DAY WAS NOT CONSIDERED ITA NO. 2029/15 :- 3 -: BY THE CIT(A) WHILE COMPUTING THE PEAK CREDIT. THE REFORE, THE CIT(A) IS NOT CORRECT IN TAKING THE PEAK CREDIT AT ` 4,07,696/-. 3. ON THE CONTRARY, SHRI P. RAJASEKARAN, LD. REPRESENT ATIVE FOR THE ASSESSEE SUBMITTED THAT THE CIT(A) FOUND THAT THERE ARE SEVERAL WITHDRAWALS AND DEPOSITS IN THE BANK ACCOUNT. REFE RRING TO THE COPY OF THE BANK STATEMENT, THE COPY OF WHICH IS AVAILAB LE IN THE PAPER BOOK, THE LD. REPRESENTATIVE SUBMITTED THAT AS ON 4 .10.2010 THERE WAS A WITHDRAWAL OF ` 25 LAKHS FROM AXIS BANK. IT IS NOT A CASE OF DEPO SIT. THE REVENUE FILED THE APPEAL BEFORE THIS TRIBUNAL B Y MISUNDERSTANDING THE WITHDRAWAL OF CASH FROM AXIS BANK AS CASH DEPOS IT. AFTER CONSIDERING THE INCOME FROM SALE OF MILK, BROUGHT F ORWARD CASH BALANCES FROM EARLIER YEARS, CASH DEPOSITS AND AMOU NT TRANSFERRED FROM ONE ACCOUNT TO ANOTHER, THE CASH WITHDRAWALS W ERE AVAILABLE WITH THE ASSESSEE FOR MAKING FURTHER DEPOSIT, THE CIT(A ) FOUND THAT ONLY PEAK CREDIT HAS TO BE TAKEN AS UNACCOUNTED DEPOSITS IN THE BANK ACCOUNT. OTHER THAN THIS ` 25 LAKHS ON 4.10.2010, THE REVENUE HAS NO OBJECTION OF COMPUTING THE PEAK CREDIT AT ` 4,07,696/-. THEREFORE, THE CIT(A) HAS RIGHTLY FOUND THE PEAK CREDIT AT ` 4,07,696/-. 4. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS ON EITHER SIDE AND ALSO PERUSED THE MATERIAL AVAILABLE ON RECORD. AS R IGHTLY SUBMITTED BY THE LD. REPRESENTATIVE FOR THE ASSESSEE, THE MAIN OBJECTION OF THE ITA NO. 2029/15 :- 4 -: REVENUE IS THAT ON 4.10.2010 THERE WAS A CASH DEPOS IT OF ` 25 LAKHS. THE COPY OF THE BANK STATEMENT AVAILABLE IN THE PAP ER BOOK, PARTICULARLY PAGE 27, CLEARLY SHOWS THAT THERE WAS A WITHDRAWAL OF ` 25 LAKHS ON 4.10.2010 AND IT IS NOT A CASH DEPOSIT. I F IT IS CONSIDERED AS A WITHDRAWAL OF ` 25 LAKHS ON 4.10.2010 THEN THE PEAK CREDIT COMPUTE D BY THE CIT(A) AT ` 4,07,696/- CANNOT BE FOUND FAULTED WITH. AS RIGHT LY FOUND BY THE CIT(A), THERE WERE SEVERAL WITHDRAWALS FROM THE BANK AND DEPOSITS, THEREFORE, THE MONEY WITHDRAWN FROM B ANK IS VERY MUCH AVAILABLE FOR MAKING FURTHER DEPOSITS. THE ASSESSE E HAS INCOME FROM SALE OF MILK AND ALSO COMMISSION FROM REAL ESTATE B USINESS. THE CIT(A) FURTHER FOUND THAT SOME OF THE DEPOSITS IN T HE BANK ACCOUNT ARE NOT CASH DEPOSITS BUT THESE ARE TRANSFER OF AMOUNT FROM ONE ACCOUNT TO ANOTHER. THIS STATEMENT OF THE CIT(A) IS EVIDEN CED BY THE BANK STATEMENT FILED BY THE ASSESSEE. IN THOSE CIRCUMS TANCES, THIS TRIBUNAL IS OF THE CONSIDERED OPINION THAT THE CIT (A) HAS RIGHTLY COMPUTED THE PEAK CREDIT AT ` 4,07,696/- AS ON 1.10.2010. AFTER CONSIDERING THE INCOME DECLARED BY THE ASSESSEE F OR THE ASSESSMENT YEAR 2011-12 TO THE EXTENT OF ` 1,75,000/-, THE PEAK CREDIT WAS DETERMINED AT ` 2,32,696/-. THEREFORE, THIS TRIBUNAL DO NOT FIND ANY REASON TO INTERFERE WITH THE ORDER OF THE CIT(A). ACCORDINGLY, THE SAME IS CONFIRMED. ITA NO. 2029/15 :- 5 -: 5. IN THE RESULT, THE APPEAL OF THE REVENUE STANDS DI SMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 1 ST APRIL, 2016, AT CHENNAI. SD/- SD/- ( . !' ) (A. MOHAN ALANKAMONY) # / ACCOUNTANT MEMBER ( . . . ' ) (N.R.S. GANESAN) / JUDICIAL MEMBER #$ / CHENNAI %& / DATED: 1 ST APRIL, 2016 RD &' ()*) / COPY TO: 1 . / APPELLANT 3. +,' / CIT(A) 5. )-. / / DR 2. / RESPONDENT 4. + / CIT 6. .01 / GF