Income Tax Officer Ward-3(4), Purulia, Purulia V. Raj Kumari Shah, Purulia

ITA 2171/KOL/2013

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 4738 (ITAT-KOLKATA)
• Duration Of Justice: 2 year(s) 10 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-06-2016
• Appeal Filed By: Department
• Bench Allotted: B
• Next Hearing Date: 24-05-2016
• Assessment Year: 2009-2010
• Appeal Filed On: 25-07-2013
• Court: TRIBUNAL
• Department Lawyers: RANU BISWAS
• Keywords: Gift
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH: KOL KATA [BEFORE SHRI N. V. VASUDEVAN, JM & SHRI M. BALAGAN ESH, AM] I.T.A NO.2171/KOL/2013 ASSESSMENT YEAR: 2009-10 INCOME-TAX OFFICER, WD-3(4), KOLKATA. VS. RAJ KUM ARI SHAH (PAN: ALKPS4495G) ( APPELLANT ) ( RESPONDENT ) DATE OF HEARING: 24.05.2016 DATE OF PRONOUNCEMENT: 01.06.2016 FOR THE APPELLANT: SMT. RANU BISWAS, JCIT, SR. DR FOR THE RESPONDENT: SHRI SUBASH AGARWAL, ADVOCAT E ORDER PER SHRI BALAGANESH, AM: THIS APPEAL BY REVENUE IS ARISING OUT OF ORDER OF C IT(A), ASANSOL VIDE APPEAL NO. 314/CIT(A)ASL/W-3(4)/ASL/PUR/11-12 DATED 31.05 .2013. ASSESSMENT WAS FRAMED BY ITO, WD-3(4), PURULIA U/S. 143(3) OF THE INCOME TAX ACT, 1961 (HEREINAFTER REFERRED TO AS THE ACT) FOR AY 2009-10 VIDE HIS ORDER DATE D 27.12.2011. 2. THE ONLY ISSUE TO BE DECIDED IN THIS APPEAL IS AS TO WHETHER THE CREDITS IN THE BANK ACCOUNT JOINTLY HELD WITH ASSESSEE AND HER DAUGHTER TO THE EXTENT OF RS. 42,44,508/- AND RS. 3,06,041/- COULD BE FULLY BROUGHT TO TAX IN THE HANDS OF THE ASSESSEE IN THE FACTS AND CIRCUMSTANCES OF THE CASE. 3. THE BRIEF FACTS OF THIS ISSUE ARE THAT THE ASSE SSEE , A SENIOR CITIZEN LADY , FILED HER RETURN OF INCOME FOR THE AY 2009-10 ON 31.3.2010 SH OWING TOTAL INCOME OF RS. 2,50,770/- . THE LEARNED AO DURING THE COURSE OF AS SESSMENT PROCEEDINGS OBSERVED THAT THE ASSESSEE HAD CERTAIN UNDISCLOSED BANK ACCOUNTS WHICH WHEN CONFRONTED, THE ASSESSEE REPLIED AS FOLLOWS:- (A) TRANSACTIONS WITH INDIAN BANK SAVINGS BANK ACCO UNT BEARING NO. 539840776 JOINTLY HELD WITH DAUGHTER TRANSACTIONS CONSIDERED IN THE HANDS OF DAUGHTER SMT.RITA BAGARIA. (B) TRANSACTIONS WITH AXIS BANK SAVINGS ACCOUNT BEA RING NO. 397010100037174 FD INTEREST OFFERED TO TAX IN THE ASSESSMENT. 2 ITA NO.2171/K/2013 RAJ KUMARI SHAH AY 2009-10 THE LEARNED A.O DURING THE COURSE OF SCRUTINY HAS A SKED FOR DETAILS OF INDIAN BANK SAVINGS ACCOUNT BEARING NO. 539840776. THE ASSESSEE HAS SUBMITTED ALL RELEVANT DOCUMENTS WITH EVIDENCES SHO WING THAT THE SAID SAVINGS ACCOUNT WAS A JOINT SAVINGS BANK ACCOUNT IN THE NAM E OF SMT RAJ KUMARI SHAH AND SMT RITA BAGARIA. SMT RITA BAGARIA IS THE ONLY DAUGHTER OF THE ASSESSEE. SMT RITA BAGARIA IS REGULARLY FILING HER RETURN OF INCO ME BEFORE THE ITO, WARD-3(2), PURULIA. THE SAID JOINT SAVINGS ACCOUNT AS DISCUSSE D ABOVE IS DULY SHOWN IN THE ACCOUNTS STATEMENT OF SMT RITA BAGARIA WHICH IS DUL Y FILED BEFORE THE CONCERNED ITO. THE SAID BANK ACCOUNT IS ACTUALLY OF SMT RITA BAGARIA. IN THIS REGARD THE COPY OF RETURN FILED ALONG WITH THE ACCOUNTS WERE P RODUCED AND SUBMITTED BEFORE THE LEARNED A.O. WHO HAS ACCEPTED THE SAME I N HIS LETTER DATED 19/12/2011. THE SAID BANK DETAILS ARE PROPERLY SHOW N IN THE JOINT HOLDER'S INCOME TAX STATEMENT WHO IS THE ONLY DAUGHTER OF TH E SMT RAJ KUMARI SHAH WHO IS SUFFERING FROM VARIOUS HEALTH AILMENTS AND IS MO RE OR LESS BED RIDDEN. THE MEDICAL CERTIFICATES IN THIS REGARD WERE ALSO SUBMI TTED TO THE LEARNED ASSESSING OFFICER. THUS THE INDIAN BANK SAVINGS ACCOUNT NO.53 9840776 ALONG WITH THE FDRS MADE THROUGH THE SAID BANK ACCOUNT IN WHICH TH E LD A.O. HAS DISALLOWED THE TOTAL DEPOSIT FOR RS.4244508/- ARE VERY GENUINE AND ARE PROPERLY SHOWN AND DECLARED BEFORE THE DEPARTMENT BY THE DAUGHTER. THE LD. A.O. HAS COMPLETELY IGNORED THE MATERIAL FACTS ON RECORD AND DISALLOWED THE SAME AND ADDED BACK THE AMOUNT TO THE TOTAL INCOME OF THE ASSESSEE. THE LEARNED A.O HAS ADDED BACK RS.3,06,041/- BEING DEPOSIT IN INDIAN BANK. IT IS WORTHWHILE TO MENTION HERE THAT WHEN TH E LD A.O. HAS ADDED BACK TOTAL DEPOSIT OF SAVINGS BANK ACCOUNT NO.539840776 AS STATED EARLIER, IT IS VERY ASTONISHING TO SEE IN THE ORDER THAT FROM WHERE THE SAID AMOUNT WAS DERIVED BY THE LD. A.O. THERE IS NO MENTION OF SUCH AMOUNT IN THE FINDINGS MADE BY THE A.O. IN HIS ORDER SHEET. THUS THE ADDITION MADE IN THIS REGARD IS TOTALLY ABSURD AND BOGUS. THE LD. A.O. HAS JUST MADE THE ADDITION OF RS.306041/- ON HIS IMAGINATION WITHOUT GOING THROUGH THE FACTS AND FIG URES PROPERLY. 4. THE LEARNED CIT(A) DELETED THE ADDITION BY OBSE RVING AS UNDER:- 3 ITA NO.2171/K/2013 RAJ KUMARI SHAH AY 2009-10 5. THE ARGUMENT OF APPELLANT IS THAT THIS BANK ACC OUNT IS CONTINUOUSLY BEING ACCOUNTED BY SMT. RITA BAGARIA. THIS HAS BEEN STATED BEFORE ASS ESSING OFFICER AND IS MENTIONED IN ASSESSMENT ORDER. HE RELIED ON THE I. T. RETURN AN D ACCOMPANYING STATEMENTS OF SMT. RITA BAGARIA. THE ASSESSING OFFICER TOOK THE STAND THAT RETURN OF SMT. RITA BAGARIA WAS NOT FILLED IN, ONLY COMPUTATION PART WAS FILLED IN. TH E FIRST ENQUIRY REGARDING AN SB ACCOUNT IS AS TO WHO HAS ACCOUNTED THE SAME IN TRIAL BALANCE. I FIND THAT THE CONCLUSION DRAWN IS BASED ON INCORRECT FACTS BY ASSESSING OFFICER SINCE THE SB ACCOUNT FIGURES IN THE TRIAL BALANCE OF SMT. RITA BAGARIA. IT IS SEEN THAT THE A RGUMENT OF THE APPELLANT IS CORRECT. HENCE RELIEF IS DUE TO THE APPELLANT. 6. EVEN OTHERWISE ON MERITS ALSO THERE IS NO CASE F OR ADDITION. THE REASONS ARE AS UNDER:- (A) IN THE BANK ACCOUNT CASH DEPOSITS ARE RS.3,40,000/- (11.11.2008), RS.1,35,000/- (12.11.2008), RS.82,000/- (7.02.2009) , RS.50,000/- (9.02.2009) AND RS.5,00,000/- (25.03.2009) AND RS.3,75,000/- (3 1.03.2009). THIS, AS PER CASH BOOK OF RITA BAGARIA THESE CAME OUT OF SURPLUS FUNDS WHICH INCLUDES CASH WITHDRAWAL FROM THE SAME BANK. (B) ALL OTHER ENTRIES ARE TRANSFER ENTRIES, INTERES T CREDITS WHICH ALSO IS INCLUDED IN BOOKS OF ACCOUNT. ALL THESE FIGURES IN CASH BOOK OF SMT. RITA BAGARIA. (C) THERE IS NO ACCRETION TO CAPITAL OF SMT. RITA B AGARIA THROUGH ANY ARTIFICIAL ENTRIES LIKE LOAN, GIFT ADVANCE ETC IN THE YEAR. (D) EVEN OTHERWISE ENTIRE DEPOSIT CANNOT BE ADDED A ND BENEFIT OF RECYCLING OF FUNDS IS TO BE GRANTED TO ASSESSEE. 7. CONSIDERING THE ASPECTS DISCUSSED IN PARA 4 AND 5, I DELETE THE ADDITION OF RS.42,44,508/-. 8. THE ASSESSING OFFICER ALSO MADE AN ADDITION OF R S.3,06,041/- BEING DEPOSIT IN INDIAN BANK. THE SUM IS ALREADY INCLUDED IN THE ABOVE RS.4 2,44,508/- AND SINCE THE ADDITION OF RS.42,44,508/- IS DELETED THERE IS NO REASON TO CON SIDER THE ADDITION. THE SAME IS DELETED SINCE THE ORIGINAL ADDITION OF RS.3,06,041/- ITSELF IS A DOUBLE ADDITION. AGGRIEVED, THE REVENUE IS IN APPEAL BEFORE US ON TH E FOLLOWING GROUNDS:- 1. THAT THE LD. CIT(A), ASANSOL HAS ERRED IN LAW A ND ON FACTS BY DELETING THE ADDITION OF RS.42,44,508/- MADE BY THE AO ON ACCOUNT OF DEPOSIT ION OF CASH INTO INDIAN BANK, PURULIA AS THE ASSESSEE COULD NOT SUBSTANTIATE THAT THE AMO UNT HAS BEEN DEPOSITED BY 2 ND NAME OF THE JT. BANK ACCOUNT HOLDER. 2. THAT THE LD. CIT(A), ASANSOL HAS ERRED IN LAW AN D ON FACTS BY DELETING THE ADDITION OF RS.3,06,141/- MADE BY THE AO ON ACCOUNT OF DEPOSITI ON OF CASH INTO INDIAN BANK, PURULIA AS THE ASSESSEE COULD NOT SUBSTANTIATE THAT THE AMO UNT HAS BEEN DEPOSITED BY 2 ND NAME OF THE JT. BANK ACCOUNT HOLDER. 5. THE LEARNED DR VEHEMENTLY RELIED ON THE ORDER O F THE LEARNED AO. IN RESPONSE TO THIS, THE LEARNED AR REITERATED THE SUBMISSIONS MADE BEFORE THE LOWER AUTHORITIES THAT THE JOINT BANK ACCOUNT WAS EITHER OR SURVIVOR ACCOU NT JOINTLY HELD BY ASSESSEE WITH HER DAUGHTER SMT. RITA BAGARIA AND ALL THE TRANSACTIONS IN THE SAID BANK ACCOUNT WERE DULY 4 ITA NO.2171/K/2013 RAJ KUMARI SHAH AY 2009-10 CONSIDERED IN THE RETURN OF INCOME FILED BY THE DAU GHTER WHICH WERE ALSO VERIFIED BY THE LEARNED AO FROM THE JURISDICTIONAL AO OF THE DAUGHT ER OF THE ASSESSEE. 6. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE MATERIALS AVAILABLE ON RECORD INCLUDING THE DETAILED PAPER BOOK FILED BY T HE LEARNED AR CONTAINING INCOME TAX RETURNS , COMPUTATION OF TOTAL INCOME AND FINAL ACC OUNTS OF ASSESSEE (PGS 1 TO 8 OF PB) ; INCOME TAX RETURNS , COMPUTATION OF TOTAL INCOME AN D FINAL ACCOUNTS OF SMT. RITA BAGARIA (DAUGHTER) ( PGS 9 TO 11 OF PB) ; TRIAL BALANCE OF SMT. RITA BAGARIA (PGS 12 TO 14 OF PB) ; CASH BOOK OF SMT. RITA BAGARIA (PGS 15 TO 20 OF P B) ; BANK BOOK WITH INDIAN BANK ACCOUNT OF SMT. RITA BAGARIA (PGS 21 TO 25 OF PB) A ND BANK STATEMENT OF INDIAN BANK A/C NO. 539840776 (PGS 26 TO 30 OF PB). FROM THE PERUSAL OF THE SAME, WE ARE CONVINCED OF THE FACT THAT THE ENTIRE TRANSACTIONS IN THE JOINT BANK ACCOUNT WITH INDIAN BANK A/C NO. 539840776 HAVE BEEN DULY CONSIDERED IN THE RETURNS FILED BY THE DAUGHTER OF THE ASSESSEE. THE LEARNED AO HAD EVEN CROSS VER IFIED THE INCOME TAX RETURNS OF DAUGHTER FROM THE JURISDICTIONAL AO OF SMT. RITA BA GARIA (DAUGHTER). WE FIND THAT THE REJECTION OF THE CONTENTIONS OF THE ASSESSEE BY THE AO ON THE FLIMSY GROUND THAT THE RETURN OF INCOME DOES NOT CONTAIN DETAILED ANNEXURE S AND HENCE THE SAME COULD NOT BE VERIFIED IN DETAIL IS, IN OUR OPINION, IS HIGHLY UN JUSTIFIED. THE LEARNED AR EVEN BROUGHT TO OUR NOTICE THE RELEVANT PORTION OF THE ACTION PO INTS OF RETURN OF INCOME WHEREIN THE CBDT HAD CLEARLY STATED THAT THE RETURN FORM SHOULD NOT BE ACCOMPANIED BY ANY ENCLOSURES SHOWING (I) COMPUTATION OF TAX PAYABLE O R (II) PROOF OF ANY TAX, IF ANY, CLAIMED TO HAVE BEEN DEDUCTED OR COLLECTED AT SOURC E, OR (III) PROOF OF TAX, IF ANY, CLAIMED TO HAVE BEEN PAID BY WAY OF ADVANCE TAX OR SELF ASST TAX OR (IV) ANY DOCUMENT OR COPY OF ANY ACCOUNT OR FORM, OR (V) AUDIT REPORT U/ S 44AB. THE CBDT HAD FURTHER EMPHASIZED THE NEED TO ENSURE STRICT COMPLIANCE OF THE SAME BY DIRECTING THE CCITS TO INFORM THE RECEIVING OFFICIALS TO DETACH ALL THE AN NEXURES FILED BY THE ASSESSEE BY RETURNING BACK TO THE ASSESSEE AT THE TIME OF COLLE CTING THE RETURNS. IT IS TRUE THAT THE GOVT IS WORKING PROGRESSIVELY TO HAVE A PAPERLESS R EGIME, BUT AT THE SAME TIME, THE SAME SHOULD NOT BE USED AGAINST THE ASSESSEE FOR NO T FILING THE ANNEXURES ALONG WITH THE RETURN OF INCOME. WE FIND THAT THE LEARNED CITA HA D GIVEN CATEGORICAL FINDINGS THAT THE ENTIRE CREDITS IN THE INDIAN BANK ACCOUNT HAVE BEEN DULY CONSIDERED BY SMT. RITA BAGARIA WITH PROPER EXPLAINABLE SOURCES AND THERE I S NO CASE FOR MAKING ANY ADDITION IN 5 ITA NO.2171/K/2013 RAJ KUMARI SHAH AY 2009-10 THE HANDS OF THE ASSESSEE IN THE SUM OF RS. 42,44,5 08/-. HE HAD ALSO CATEGORICALLY HELD THAT AN ADDITION OF RS. 3,06,041/- IS ALSO INCLUDED IN THE AMOUNT ALREADY ADDED IN THE SUM OF RS. 42,44,508/- AND HENCE IN ANY CASE WOULD ONLY RESULT IN DOUBLE ADDITION. ACCORDINGLY HE HAD DELETED THE ADDITIONS OF RS. 42, 44,508/- AND RS. 3,06,041/-. THE LEARNED DR HAD PRAYED FOR SETTING ASIDE OF THIS APP EAL TO THE FILE OF THE LEARNED AO FOR VERIFICATION OF RETURNS OF SMT. RITA BAGARIA. WE F EEL THAT THIS IS NOT NECESSARY AS WE ARE THOROUGHLY CONVINCED THAT THE ENTIRE CREDITS IN THE BANK ACCOUNT HAVE BEEN DULY CONSIDERED IN THE HANDS OF SMT. RITA BAGARIA AND IT WOULD NOT ADVANCE THE CASE OF THE REVENUE IN ANY MANNER. HENCE WE FIND NO INFIRMITY IN THE ORDER PASSED BY THE LEARNED CITA IN THIS REGARD. ACCORDINGLY, THE GROUNDS RAIS ED BY THE REVENUE ARE DISMISSED. 7. IN THE RESULT, THE APPEAL OF THE REVENUE IS DIS MISSED. 8. ORDER IS PRONOUNCED IN THE OPEN COURT ON 01.06.2 016 SD/- SD/- (N. V. VASUDEVAN) (M. BALAGANESH) JUDICIAL MEMBER ACCOUNTAN T MEMBER DATED : 1ST JUNE, 2016 JD.(SR.P.S.) COPY OF THE ORDER FORWARDED TO: 1 . APPELLANT ITO, WARD-3(4), PURULIA. 2 RESPONDENT SMT. RAJ KUMARI SHAH, SADARPARA, P.O & DIST., PURULIA- 723101 3 . THE CIT(A), ASANSOL 4. 5. CIT , ASANSOL DR, KOLKATA BENCHES, KOLKATA / TRUE COPY, BY ORDER, ASSTT. REGISTRAR .