SHRI MOHD. IQUBAL, JAIPUR, JAIPUR V. INCOME TAX OFFICER, JAIPUR

ITA 209/JPR/2018

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 3679 (ITAT-JAIPUR)
• Duration Of Justice: 1 year(s) 2 month(s) 16 day(s)
• Appeal Type: Income Tax (International Taxation) Appeal
• Pronouncement Date: 29-04-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2008-2009
• Appeal Filed On: 12-02-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: POONAM RAI
• Assessee Lawyers: PRASHANT SHARMA; VIKRAM GUPTA
• Section: 147

Judgement Text

VK;DJ VIHYH; VF/KDJ.K] T;IQJ U;K;IHB] T;IQJ IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHE S, JAIPUR JH FOT; IKWY JKO] U;KF;D LNL; ,OA JH FOE FLAG ;KNO] YS[KK LNL; DS LE{K BEFORE: SHRI VIJAY PAL RAO, JM & SHRI VIKRAM SINGH YADAV, AM VK;DJ VIHY LA-@ ITA NO. 209/JP/2018 FU/KZKJ.K O'K Z@ ASSESSMENT YEARS : 2008-09 MOHD. IQBAL PLOT NO. 12, MUKUND GRAH HOUSE, S.C. ROAD, BEHIND CITY CENTRE, JAIPUR CUKE VS. ITO WARD-7(1) JAIPUR LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN/GIR NO.: AARPI4477L VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT FU/KZKFJRH DH VKSJ L S@ ASSESSEE BY : SHRI VIKRAM GUPTA & SHRI PRASHANT SHARMA (CA) JKTLO DH VKSJ LS @ REVENUE BY : SMT. POONAM RAI (DCIT) LQUOKBZ DH RKJH[ K@ DATE OF HEARING : 30/07/2018 MN?KKS'K.KK DH RKJH[ K@ DATE OF PRONOUNCEMENT : 06/08/2018 VKNS'K@ ORDER PER: VIKRAM SINGH YADAV, A.M. THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST TH E ORDER OF LD. CIT(A)-3, JAIPUR DATED 20.12.2017 FOR ASSESSMEN T YEAR 2008-09. 2. IN GROUND NO. 3, THE ASSESSEE HAS CHALLENGED THE SUSTENANCE OF ADDITION OF RS. 64,940/- BEING 1/3 PAYMENT IN CREDI T CARD TOTALING TO RS. 194,820/-. 3. BRIEFLY STATED, THE FACTS OF THE CASE ARE THAT T HE ASSESSMENT IN THIS CASE WAS COMPLETED U/S 147 READ WITH 144 OF TH E ACT WHEREIN THE AO BROUGHT TO TAX A SUM OF RS. 83,306/- BEING 1/3 O F TOTAL CREDIT CARD ITA NO. 209/JP/2018 MOHD. IQUBAL, JAIPUR VS. ITO, JAIPUR 2 BILL PAYMENT OF RS. 2,40,920/- DURING THE COURSE OF FINANCIAL YEAR 2007- 08 RELEVANT TO THE IMPUGNED ASSESSMENT YEAR FOR THE REASON THAT THE ASSESSEE FAILED TO PROVE/PRODUCE SUPPORTING DOCUMEN TATION THAT THE AMOUNT USED IN PAYMENT OF CREDIT CARD WAS OUT OF CU RRENT AND PAST SAVINGS. THE SAID ACTION OF THE ASSESSING OFFICER W AS CONFIRMED BY THE LD. CIT(A) WITH A DIRECTION TO VERIFY WHETHER THE T OTAL CASH DEPOSIT WAS RS. 1,94,820/- OR RS. 2,40,920/-. 4. DURING THE COURSE OF HEARING, THE LD. AR SUBMITT ED THAT THE ASSESSEE HAS WITHDRAWN A SUM OF RS. 198556/- FROM H IS CREDIT CARD ACCOUNT ON VARIOUS DATES DURING THE FY 2007-08 AND THE ASSESSEE HAS DEPOSITED AN AMOUNT OF RS. 194820/- IN HIS CREDIT C ARD ACCOUNT ON VARIOUS DATES. FURTHER, THE ASSESSEE HAS EARNED SAL ARY INCOME OF RS. 193923/- NET OF DEDUCTION OF RS. 3450/- FROM HBL GL OBAL PRIVATE LTD. WHICH WAS REGULARLY WITHDRAWN FROM HIS SALARY ACCOU NT AND USED FOR REPAYING THE CREDIT CARDS DUES. IT WAS SUBMITTED TH AT THE ASSESSING OFFICER FAIRED TO APPRECIATE WITHDRAWAL OF CASH OF RS. 198556/- FROM HIS CREDIT CARD ACCOUNT AND HAS ONLY CONSIDERED THE DEP OSIT OF RS. 240920/- AS AGAINST ACTUAL DEPOSIT OF RS. 194820/-. IT WAS A CCORDINGLY SUBMITTED THAT THERE IS NO BASIS FOR MAKING THE ADDITION OF 1 /3 THE TOTAL CASH DEPOSIT IN HIS CREDIT CARD ACCOUNT. 5. THE LD DR IS HEARD WHO HAS RELIED ON THE ORDER O F THE LOWER AUTHORITIES. 6. WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. IT IS NOTED FROM THE CREDIT CA RD STATEMENT THAT THERE ARE REGULAR WITHDRAWALS AND DEPOSITS ON VARIO US DATES DURING THE FY 2007-08. AS AGAINST THE WITHDRAWAL OF RS. 198556 /-, THERE IS DEPOSIT OF RS. 194820/- WHICH LARGELY EXPLAINS THE SOURCE O F DEPOSITS. FURTHER, ITA NO. 209/JP/2018 MOHD. IQUBAL, JAIPUR VS. ITO, JAIPUR 3 THE ASSESSEE HAS ALSO WITHDRAWN HIS SALARY AT REGUL AR INTERVALS FROM HIS SALARY ACCOUNT MAINTAINED WITH HDFC BANK. THUS, WIT HDRAWAL OF CASH FROM HIS CREDIT CARD ACCOUNT AS WELL AS WITHDRAWAL OF CASH FROM HIS SALARY ACCOUNT SUFFICIENTLY EXPLAINED THE DEPOSIT O F CASH IN HIS CREDIT CARD ACCOUNT. FURTHER WE DO NOT SEE ANY BASIS FOR M AKING AN ADHOC DISALLOWANCE OF 1/3 OF TOTAL DEPOSIT IN THE CREDIT CARD ACCOUNT. IN LIGHT OF THE SAME, THE ADDITION MADE BY THE AO IS HEREBY DEL ETED. 7. THE GROUND NO. 1 IS REGARDING CHALLENGING THE IN ITIATION OF PROCEEDINGS U/S 147 OF THE ACT AND IN GROUND NO. 2, THE ASSESSEE HAS CHALLENGED THE MECHANICAL GRANT OF SANCTION U/S 151 OF THE ACT. IN VIEW OF THE FACT THAT THE ADDITION MADE BY THE AO HAS BE EN DELETED, THESE TWO GROUNDS HAVE BECOME ACADEMIC AND WE DONOT DEEM IT APPROPRIATE TO ADJUDICATE THE SAME. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 09/08/2018. SD/- SD/- FOT; IKWY JKO FOE FLAG ;KNO (VIJAY PAL RAO) (VIKRAM SINGH YADAV) U;KF;D LNL;@ JUDICIAL MEMBER YS[KK LNL;@ ACCOUNTANT MEMBER TK;IQJ@ JAIPUR FNUKAD@ DATED:- 09/08/2018 * GANESH KR. VKNS'K DH IZFRFYFI VXZSFKR@ COPY OF THE ORDER FORWARDED TO: 1. VIHYKFKHZ@ THE APPELLANT- MOHD. IQUBAL, JAIPUR 2. IZR;FKHZ@ THE RESPONDENT- ITO, JAIPUR 3. VK;DJ VK;QDR@ CIT 4. VK;DJ VK;QDR@ CIT(A) ITA NO. 209/JP/2018 MOHD. IQUBAL, JAIPUR VS. ITO, JAIPUR 4 5. FOHKKXH; IZFRFUF/K] VK;DJ VIHYH; VF/KDJ.K] T;IQJ@ DR, ITAT, JAIPUR. 6. XKMZ QKBZY@ GUARD FILE { ITA NO. 209/JP/2018} VKNS'KKUQLKJ@ BY ORDER, LGK;D IATHDKJ@ ASST. REGISTRAR