R.Hariprasad, CHENNAI V. ITO, CHENNAI

ITA 2058/CHNY/2011

• Counselvise Citation: [2013] 120 COUNSELVISE.COM (IT) 2485 (ITAT-CHENNAI)
• Duration Of Justice: 1 year(s) 6 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-06-2013
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: C
• Next Hearing Date: 20-06-2013
• Assessment Year: 2006-2007
• Appeal Filed On: 15-12-2011
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: T N BETGIRI
• Assessee Lawyers: N MUTHUKUMARAN
• Keywords: Peak credit
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH : CHENNAI [BEFORE DR. O.K.NARAYANAN, VICE PRESIDENT AND SHRI VIKAS AWASTHY, JUDICIAL MEMBER] I.T.A. NO. 2058/MDS/2011 ASSESSMENT YEAR : 2006-07 R. HARIPRASAD, 48, ARCOT ROAD, SALIGRAMAM, CHENNAI 93. VS INCOME TAX OFFICER, SALARY WARD III(1), CHENNAI. [PAN: AAYPH 6600 B] (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI N.MUTHU KUMARAN, CA RESPONDENT BY : SHRI T.N. BETGIRI, JCIT DATE OF HEARING : 20-06-2013 DATE OF PRONOUNCEMENT : 20-06-2013 O R D E R PER VIKAS AWASTHY, JUDICIAL MEMBER THE APPEAL HAS BEEN FILED BY THE ASSESSEE AGAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX(APPEALS)-IV , CHENNAI DATED 15-09-2011 RELEVANT TO THE ASSESSMENT YEAR (A Y) 2006-07. I.T.A. NO. 2058/MDS/2011 :- 2 -: 2. THE APPEAL HAS BEEN FILED WITH THE DELAY OF TWO DAYS. THE LD. COUNSEL FOR THE ASSESSEE PRAYED FOR THE CONDONA TION OF DELAY OF TWO DAYS IN FILING THE APPEAL. IN THE INTEREST OF JUSTICE, DELAY OF TWO DAYS IN FILING OF THE APPEAL IS CONDONED. THE APPEAL IS ADMITTED TO BE HEARD AND DISPOSED-OFF ON MERITS. 3. THE BRIEF FACTS OF THE CASE ARE; THE ASSESSEE I S AN EMPLOYEE OF STANDARD CHARTERED BANK. HE FILED HIS RETURN OF INCOME FOR THE AY. 2006-07 ON 30-08-2006 DECLARING HIS TOTAL INCOME AS RS. 89,310/-. THE CASE OF THE ASSESSEE W AS SELECTED FOR SCRUTINY AND NOTICE U/S. 143(2) OF THE INCOME T AX ACT, 1961 (HEREIN AFTER REFERRED TO AS THE ACT) WAS ISSUED TO THE ASSESSEE. DURING THE COURSE OF SCRUTINY ASSESSMENT, THE ASSES SING OFFICER FOUND THAT THE ASSESSEE HAD MADE SEVERAL DEPOSITS B Y WAY OF CASH ON VARIOUS DATES IN HIS SB A/C MAINTAINED WITH STANDARD CHARTERED BANK, MYLAPORE BRANCH, CHENNAI. THE TOTA L OF CASH DEPOSITS MADE IN THE ACCOUNT OF THE ASSESSEE ON VAR IOUS DATES AMOUNTS TO RS. 15,37,733/-. THE ASSESSEE WAS ASKE D TO EXPLAIN HUGE NUMBER OF DEPOSITS ALONG WITH DOCUMENTARY EVID ENCE. THE CONTENTION OF THE ASSESSEE WAS THAT THE SAID TRANSA CTIONS DOES NOT PERTAIN TO HIM BUT WERE DONE BY SHRI A. GOPALAK RISHNAN OF SRI I.T.A. NO. 2058/MDS/2011 :- 3 -: KRISHNA SERVICE STATION TO HONOUR THE DAILY INWARD CHEQUES ISSUED TO BPCL FOR THE PURCHASE OF PETROL OR DIESEL . THE ASSESSEE WAS NOT AWARE OF THE ACTUAL TRANSACTION AS SAID GOPALAKRISHNAN HAD TAKEN BLANK CHEQUES FROM THE ASS ESSEE STATING THAT HE WOULD USE THESE CHEQUES FOR HIS CRE DIT CARD PAYMENTS. NOT SATISFIED WITH THE REPLY FURNISHED B Y THE ASSESSEE, THE ASSESSING OFFICER MADE ADDITION OF RS. 15,37,73 3/- IN THE INCOME RETURNED BY THE ASSESSEE. AGGRIEVED AGAINST THE ASSESSMENT ORDER DATED 30-12- 2008 PASSED U/S. 143(3) R.W.S. 147 OF THE ACT, THE ASSES SEE PREFERRED AN APPEAL BEFORE THE CIT (APPEALS). THE LD. CIT (A PPEALS) AFTER CONSIDERING THE SUBMISSIONS MADE BY THE LD. AR OF T HE ASSESSEE, DISMISSED THE APPEAL OF THE ASSESSEE VIDE ORDER DAT ED 15-09-2011. NOW, THE ASSESSEE HAS COME IN SECOND A PPEAL BEFORE US IMPUGNING THE ORDER PASSED BY THE CIT (AP PEALS), CHENNAI. 4. SHRI N. MUTHU KUMARAN, APPEARING ON BEHALF OF TH E ASSESSEE SUBMITTED THAT THE ASSESSEE IS A SALARIED EMPLOYEE AND IS WORKING WITH STANDARD CHARTERED BANK. THE C ASH DEPOSITED ON VARIOUS DATES AMOUNTING TO RS. 15.38 L AKHS (APPROX) I.T.A. NO. 2058/MDS/2011 :- 4 -: DOES NOT REPRESENT INCOME OF THE ASSESSEE. THE LD. AR REITERATED HIS SUBMISSIONS MADE BEFORE THE ASSESSING OFFICER A ND THE CIT (APPEALS) AND PRAYED FOR DELETING THE ADDITION MADE BY THE ASSESSING OFFICER AND THEREAFTER UPHELD BY THE CIT (APPEALS). 5. ON THE OTHER HAND, SHRI T.N. BETGIRI, APPEARING ON BEHALF OF THE REVENUE STRONGLY SUPPORTED THE ORDER OF THE CIT (APPEALS) AND PRAYED FOR THE DISMISSAL OF THE APPEAL OF THE A SSESSEE. THE LD. DR SUBMITTED THAT THE ASSESSEE HAS NOT PLACED O N RECORD ANY EVIDENCE TO SHOW THAT THE CASH DEPOSITED IN HIS ACC OUNT BELONG TO SRI KRISHNA SERVICE STATION. 6. WE HAVE HEARD THE SUBMISSIONS MADE BY THE RIVAL PARTIES AND HAVE PERUSED THE ORDERS OF THE AUTHORITIES BELO W. IT IS AN UN- DISPUTED FACT THAT CASH TO THE TUNE OF RS. 15.38 LA KHS WAS DEPOSITED IN THE SB A/C OF THE ASSESSEE ON VARIOUS DATES. THE CONTENTION OF THE ASSESSEE IS THAT THE AMOUNT HAS B EEN DEPOSITED BY ONE OF HIS ACQUAINTANCES SHRI GOPALAKRISHNAN TO MAKE PAYMENTS TO BPCL FOR PURCHASE OF PETROL / DIESEL. T HE TRANSACTIONS WERE MADE BY SHRI GOPALAKRISHNAN WITHO UT THE I.T.A. NO. 2058/MDS/2011 :- 5 -: KNOWLEDGE OF THE ASSESSEE. THE LD. AR OF THE ASSES SEE HAS NOT BROUGHT ON RECORD ANY EVIDENCE TO CORROBORATE HIS C ONTENTIONS EITHER BEFORE THE AUTHORITIES BELOW OR BEFORE US. IT IS AN ADMITTED FACT THAT CORRESPONDING TO THE DEPOSITS, THERE ARE WITHDRAWALS FROM THE SAVINGS BANK ACCOUNT OF THE ASSESSEE. IN THE FACTS AND CIRCUMSTANCES OF THE CASE AND TO M EET THE ENDS OF JUSTICE, IT WOULD BE APPOSITE IF ADDITION I S MADE ON THE BASIS OF PEAK CREDIT. THE ASSESSING OFFICER IS AC CORDINGLY DIRECTED TO EXAMINE THE ACCOUNT STATEMENT OF THE AS SESSEE WHEREIN SUCH TRANSACTIONS WERE MADE AND MAKE ADDITION TO THE EXTENT OF PEAK CREDIT BALANCE DURING THE RELEVANT A SSESSMENT YEAR. ORDER OF THE CIT (APPEALS) IS MODIFIED IN TH E AFORESAID TERMS. APPEAL OF THE ASSESSEE IS PARTLY ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT IN THE PRESENCE OF BOTH THE PARTIES ON THURSDAY, THE 20 TH JUNE, 2013 AT CHENNAI. SD/- SD/- ( D R . O.K. NARAYANAN ) VICE PRESIDENT ( V I KAS AWASTHY ) JUDICIAL MEMBER DATED: 20 TH JUNE, 2013 TNMM COPY TO: APPELLANT/RESPONDENT/CIT(A)/CIT/DR