Sh. Raj Kumar Khanna, Amritsar. V. The Income Tax Officer, Amritsar.

ITA 223/ASR/2016

• Counselvise Citation: [2016] 121 COUNSELVISE.COM (IT) 3719 (ITAT-AMRITSAR)
• Duration Of Justice: 7 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-11-2016
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: DB
• Next Hearing Date: 24-11-2016
• Assessment Year: 2011-2012
• Appeal Filed On: 18-04-2016
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Assessee Lawyers: JATINDER NAGPAL
• Keywords: Peak credit

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNA AMRITSAR BENCH; AMRITSAR BEFORE SH.T.S. KAPOOR, ACCOUNTANT MEMBER AND SH.SANJAY GARG, JUDICIAL MEMBER I.T.A. NO.223(ASR)/2016 ASSESSMENT YEAR: 2011-12 SH. RAJ KUMAR KHANNA, H. NO. 903/9, GALI DHOBIAN WALI, INSIDE KHAZANA GATE, AMRITSAR. PAN:AHKPK5844M VS. INCOME TAX OFFICER, WARD 3(3), AMRITSAR. (APPELLANT) (RESPONDENT) APPELLANT BY: SH. JATINDER NAGPAL, ADV. RESPONDENT BY: SH. RAHUL DHAWAN, DR DATE OF HEARING: 24/11/2016 DATE OF PRONOUNCEMENT: 30/11/2016 ORDER PER T.S. KAPOOR, AM: THIS IS AN APPEAL FILED BY ASSESSEE AGAINST THE OR DER OF LD. CIT(A), AMRITSAR, DATED14.01.2016 FOR ASST. YEAR: 2011-12. 2. THE EFFECTIVE GROUND OF APPEAL IN THIS CASE, IS THE GRIEVANCE OF ASSESSEE WITH THE ACTION OF LD. CIT(A), BY WHICH HE HAS NOT GIVEN CREDIT FOR INCOME EARNED DURING THE YEAR FOR THE PURPOSE O F CALCULATION OF PEAK CREDIT. 3. THE BRIEF FACTS OF THE CASE AS NOTED IN ASSESSME NT ORDER ARE THAT ASSESSEE FILED RETURN OF INCOME DECLARING INCOME OF RS.5,24,750/-. THE CASE OF THE ASSESSEE WAS SELECTED FOR SCRUTINY. DUR ING ASSESSMENT ITA NO.223/ASR/2016 A.Y. 2011-12 2 PROCEEDINGS, THE ASSESSING OFFICER OBSERVED THAT AS SESSEE HAD MADE CASH DEPOSITS OF RS.43,45,000/- IN HIS BANK ACCOUNT AND THEREFORE, AFTER SHOW CAUSING HIM MADE THE ADDITION OF RS.43,45,000/-. 4. AGGRIEVED THE ASSESSEE FILED APPEAL BEFORE LD. C IT(A), WHO PARTLY ALLOWED RELIEF TO THE ASSESSEE BY CALCULATING THE P EAK CREDIT AFTER CONSIDERING TOTAL CASH WITHDRAWALS AND TOTAL CASH D EPOSITS AND HE UPHELD THE ADDITION TO THE TUNE OF RS.23,58,000/-. THE ASSESSEE IS AGGRIEVED ONLY TO THE EXTENT THAT WHILE CONSIDERING THE PEAK CREDIT, THE LD. CIT(A) SHOULD HAVE CONSIDERED THE CURRENT INCOME EA RNED BY ASSESSEE TO THE TUNE OF RS.5,24,750/-. THE LD. AR IN THIS RESPE CT INVITED OUR ATTENTION TO ASSESSMENT ORDER WHERE THE FACT OF HAVING EARNED THIS INCOME HAS BEEN MENTIONED BY ASSESSING OFFICER HIMSELF. THEREF ORE, IT WAS PRAYED THAT THE NECESSARY RELIEF ON ACCOUNT OF INCOME EARN ED DURING THE YEAR SHOULD BE GIVEN. 5. THE LD. DR, ON THE OTHER HAND, HEAVILY PLACED HI S RELIANCE ON THE ORDER OF AUTHORITIES BELOW. 6. WE HAVE HEARD THE RIVAL PARTIES AND HAVE GONE TH ROUGH THE MATERIAL PLACED ON RECORD. IT IS AN UNDISPUTED FACT THAT LD. CIT(A) HAD ALLOWED RELIEF TO THE ASSESSEE ON THE BASIS OF PEAK CREDIT CALCULATED BY NETTING CASH WITHDRAWALS AND CASH DEPOSITS. HE HAS NOT CONSIDERED THE FACT THAT ASSESSEE HAD DECLARED AN INCOME OF RS.5,2 4,750/- WHICH WAS ALSO AVAILABLE TO THE ASSESSEE AS CASH IN HAND. HOW EVER, THE CLAIM OF THE LD. AR THAT THE ENTIRE INCOME SHOULD HAVE BEEN CONS IDERED FOR CALCULATION ITA NO.223/ASR/2016 A.Y. 2011-12 3 OF AVAILABILITY OF CASH IS NOT CORRECT, IN VIEW OF THE FACT THAT ASSESSEE MUST HAVE INCURRED HOUSEHOLD EXPENDITURE AND OTHER DRAWI NGS OUT OF THIS INCOME. THEREFORE, CONSIDERING THE ENTIRE FACTS AND CIRCUMSTANCES, WE HOLD THAT A RELIEF OF RS.3 LAC SHOULD BE GIVEN TO A SSESSEE OUT OF INCOME EARNED DURING THE YEAR AND WE ORDER ACCORDINGLY. IN VIEW OF THE ABOVE, THE ASSESSEE GETS RELIEF OF RS.3 LAC. 7. IN NUTSHELL, THE APPEAL FILED BY THE ASSESSEE IS PARTLY ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 30/11/201 6. (SANJAY GARG) (T.S. KAPOOR) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 30/11/2016 /PK/PS COPY OF THE ORDER FORWARDED TO: 1. THE ASSESSEE: 2. THE 3. THE CIT(A), 4. THE CIT, 5. THE SR DR, ITAT, AMRITSAR. TRUE COPY BY ORDER INCOME TAX APPELLATE TRIBUNAL, AMRITSAR BENCH: AMRITSAR.