NEDUMARAN SANGEETHA, DHARMAPURI V. ITO WARD-1 , DHARMAPURI

ITA 2111/CHNY/2019

• Counselvise Citation: [2019] 115 COUNSELVISE.COM (IT) 3292 (ITAT-CHENNAI)
• Duration Of Justice: 3 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-11-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2010-2011
• Appeal Filed On: 16-07-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Salary income

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH : CHENNAI . . . , , [BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER ] ./I.T.A. NO.2111/CHNY/2019 ! / ASSESSMENT YEAR : 2010-2011. NEDUMARAN SANGEETHA, SANDAPATTI MAIN ROAD, HARUR TALUK, DHARMAPURI. VS. THE INCOME TAX OFFICER, WARD 1, DHARMAPURI. [PAN BNNFS 5735F] ( / APPELLANT) ( /RESPONDENT) '# $ % / APPELLANT BY : SHRI.G. BASKAR, ADVOCATE &' '# $ % /RESPONDENT BY : SHRI. AR.V. SREENIVASAN, JCIT. ( ) $ * /DATE OF HEARING : 24-10-2019 +,! $ * /DATE OF PRONOUNCEMENT : 07-11-2019 / O R D E R PER INTURI RAMA RAO, ACCOUNTANT MEMBER THIS IS AN APPEAL FILED BY THE ASSESSEE DIRECTED AG AINST THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS), SALEM (CIT(A) FOR SHORT) DATED 31.05.2019 FOR THE ASSESSMENT YEAR (AY) 2010-11. ITA NO. 2111/2019 :- 2 -: 2. THE ASSESSEE RAISED THE FOLLOWING GROUNDS OF APPEAL : 1. THE COMMISSIONER OF INCOME-TAX (APPEALS) IS NO T JUSTIFIED IN CONFIRMING ASSESSMENT OF RS.6,34,130/- ADDING OF RS . 2.9 LAKHS TO RETURNED INCOME OF RS. 3,44,130/-, OUT OF CASH OF R S.10,39,500/- DEPOSITED INTO S B ACCOUNT WITH ICICI BANK LIMITED, IN THE CIRCUMSTANCES OF THE CASE. 2. HAVING CONFIRMED BY THE ASSESSMENT ORDER THE FAC T THAT EXPLANATIONS SUBMITTED FOR THE SOURCES FOR THE DEPO SITS WERE DISCUSSED, THE ASSESSING OFFICER IS NOT CORRECT IN HOLDING WITHOUT ANY BASIS THAT PROPER EXPLANATION FOR RS. 2.9 LAKHS WAS NOT GIVEN.. 3. THE COMMISSIONER (APPEALS), WHO HAS PERUSED THE WRITTEN SUBMISSIONS FILED BY THE APPELLANT OUGHT TO HAVE D ISCUSSED HOW THEY WERE NOT VALID. 4. THE COMMISSIONER OUGHT TO HAVE ACCEPTED THE WRIT TEN SUBMISSIONS, WHICH EXPLAINED THE SOURCES AS FUNDS E ARNED BY (I) ASSESSEE AS A GOVERNMENT HOSPITAL DOCTOR FROM 2006, (II) HER HUSBANDS INCOME AS EMPLOYEE OF AN INFORMATION TECH NOLOGY COMPANY FROM 2004, IN WHOSE NAME, A HOUSE WAS PURCH ASED FROM S.S. FOUNDATION OUT OF WITHDRAWALS AND (III) S ALARY ACCUMULATIONS BY BOTH HER PARENTS AS GOVERNMENT SCH OOL TEACHERS; CONFIRMATIONS DATED 14-02-2018 FILED FROM ASSESSEES PARENTS BEFORE THE COMMISSIONER SHOULD HAVE BEEN CO NSIDERED. 5. FOR THESE AND OTHER REASONS, WHICH MAY BE STATED AT THE TIME OF HEARING OF THE APPEAL, IT IS PRAYED THAT THE ADD ITIONS OF RS. 2.9 LAKHS MADE TO INCOME RETURNED MAY PLEASE BE DELETED . 3. THE BRIEF FACTS OF THE CASE ARE AS UNDER: THE APPELLANT IS AN INDIVIDUAL AND DERIVING INCOME UNDER THE HEAD INCOME FROM SALARY AND WORKING AS ASSISTAN T PROFESSOR IN GOVERNMENT COLLEGE. THE RETURN OF INCOME WAS NOT F ILED VOLUNTARILY U/S.139(1) OF THE INCOME TAX ACT, 1961 (IN SHORT T HE ACT). ITA NO. 2111/2019 :- 3 -: SUBSEQUENTLY, THE ASSESSING OFFICER HAD COME TO KNO W THAT ASSESSEE HAD MADE CASH DEPOSITS IN ICICI BANK AND FORMED A N OPINION THAT ASSESSMENT ESCAPED ASSESSMENT AND ACCORDINGLY ISSU ED NOTICE U/S.148 OF THE ACT ON 30.03.2017. IN RESPONSE TO N OTICE U/S.148 OF THE ACT, ASSESSEE FILED RETURN OF INCOME ON 25.04.2017 DISCLOSING TOTAL INCOME OF RS.3,44,130/-. AGAINST THE SAID RETURN O F INCOME, THE ASSESSMENT WAS COMPLETED BY THE INCOME TAX OFFICER, WARD I, DHARMAPURI PASSED U/S.143(3) R.W.S 147 OF THE ACT O N 26.12.2017AT TOTAL INCOME OF RS.5,24,130/- BY MAKING ADDITION O F RS.2,90,000/- AS UNEXPLAINED CASH DEPOSITS MADE IN SAVING BANK OF ICICI BANK, OUT OF TOTAL CASH DEPOSITS RS.10,39,500/-. 4. . BEING AGGRIEVED, AN APPEAL WAS PREFERRED BEFORE THE LD.CIT(A). IT WAS CONTENDED THAT CASH DEPOSITS WE RE MADE OUT OF MONEY RECEIVED FROM HER FATHER AND MOTHER, BOTH OF THEM WERE RETIRED GOVERNMENT TEACHERS DRAWING PENSION. HOWEVER, THIS EXPLANATION WAS NOT ACCEPTED BY THE LD. COMMISSIONER OF INCOME TAX (APPEALS). THE LD. COMMISSIONER OF INCOME TAX (APPEALS) CONFIR MED THE ACTION OF THE ASSESSING OFFICER. 5. WE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE MATE RIAL ON RECORD. THE EXPLANATION OFFERED BY THE ASSESSEE I N SUPPORT OF THE ITA NO. 2111/2019 :- 4 -: SOURCE OF THE CASH DEPOSITS THAT MONEY WAS RECEIVE D FROM HER FATHER AND MOTHER CANNOT BE DISBELIEVED IN THE LIGHT OF TH E CONFIRMATION LETTERS FILED, MEAGRELY AMOUNT INVOLVED AND THERE IS N O REASON TO HOLD THAT EXPLANATION IS UNREASONABLE. IN THE CIRCUMSTANCES, WE DIRECT THE ASSESSING OFFICER TO DELETE THE ADDITION MADE. 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE STANDS AL LOWED. ORDER PRONOUNCED ON 7TH DAY OF NOVEMBER, 2019, AT CHENNAI. SD/- SD/- ( . . . ) (N.R.S. GANESAN) /JUDICIAL MEMBER ( ) (INTURI RAMA RAO) /ACCOUNTANT MEMBER - ) / CHENNAI . / DATED: 7TH NOVEMBER, 2019. KV $ &*01 21!* / COPY TO: 1 . '# / APPELLANT 3. ( 3* () / CIT(A) 5. 16 &*7 / DR 2. &' '# / RESPONDENT 4. ( 3* / CIT 6. 8 9) / GF