Sh. Puran Chand Gupta, New Delhi V. ITO, New Delhi

ITA 2248/DEL/2014

• Counselvise Citation: 224820114 RSA 2014
• Duration Of Justice: 1 year(s) 3 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-07-2015
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: SMC 2
• Next Hearing Date: 30-06-2015
• Assessment Year: 2009-2010
• Appeal Filed On: 15-04-2014
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: P D TAN EJA
• Assessee Lawyers: K P MUNJANI
• Keywords: Income from undisclosed sources; Peak credit
• Section: 148

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH SMC -2, NEW DELHI BEFORE SH. I.C.SUDHIR, JM ITA NO. 2248/DEL./2014 : ASSTT. YEAR : 2009-10 PURAN CHAND GUPTA 29-BALDEV PARK NEW DELHI VS I.T.O. WARD-36(2) NEW DELHI (APPELLANT) (RESPONDENT) PAN NO. AALPG4703D APPELLANT BY : SH . K.P. MUNJANI, , ADV. RESPONDENT BY : SH. P.D.TAN EJA, SR. DR DATE OF HEARING : 30.06.2015 DATE OF PRONOUNCEMENT : 30.07.2015 ORDER PER I.C.SUDHIR, J.M. THIS IS AN APPEAL BY THE ASSESSEE AGAINST THE ORDER DATED 17.01.2014 OF THE LD. C.I.T.(A)-XXVII, NEW DELHI. 2. THE ASSESSEE HAS QUESTIONED FIRST APPELLATE ORD ER ON THE GROUND THAT THE LD. CIT(A) HAS ERRED IN SUSTAINING THE ADDITION OF RS. 4,04,495/-. THE GRIEVANCE OF THE AS SESSEE IS THAT THE LD CIT(A) WHILE SUSTAINING THE ADDITION O F RS. 4,04,495/- HAS NOT GIVEN THE CREDIT FOR CASH AVAILA BLE WITH THE ASSESSEE. ITA NO.2248/DEL/2014 PURAN CHAND GUPTA 2 3. HEARD AND CONSIDERED THE ARGUMENTS ADVANCED BY THE PARTIES IN VIEW OF THE ORDERS OF THE AUTHORITIES BE LOW AND THE MATERIAL AVAILABLE ON RECORD. 4. THE FACTS IN BRIEF ARE THAT MAIN SOURCE OF INC OME OF THE ASSESSEE IS INTEREST INCOME, BESIDES 25% PARTNERSHI P IN M/S DEVENDER SANITATIOS. ON THE BASIS OF ITR INTIMATION THAT THE ASSESSEE HAD DEPOSITED CASH ON VARIOUS DATES TOTALI NG TO RS. 1089500/- IN OBC BRANCH AT HARIDWAR, RANIPUR NOTICE U/S 148 OF THE ACT WAS ISSUED TO THE ASSESSEE AND IN AB SENCE OF EXPLANATION OF THE ASSESSEE, THE AO ADDED RS. 12,23 ,300/- AS INCOME FROM UNDISCLOSED SOURCES IN THE HANDS OF THE ASSESSEE. THE LD. CIT(A) HAS RESTRICTED THE ADDITIO N TO RS. 4,04,495/- WHICH HAS BEEN QUESTIONED BY THE ASSESSE E BEFORE THE TRIBUNAL. 5. THE LD. AR SUBMITTED THAT THE LD. CIT(A) HAS S USTAINED THE ADDITION AT RS. 4,04,495/- WITHOUT GIVING CREDI T FOR CASH AVAILABLE WITH THE ASSESSEE. IN THIS REGARD THE LD. AR REFERRED PAGE NO. 5 TO 7 OF THE PAPER BOOK I.E. BAN K ACCOUNT OF THE ASSESSEE WITH OBC HARIDWAR. HE HAS ALSO REFE RRED BALANCE SHEET OF THE ASSESSEE, AND HIS SON FOR THE YEAR ENDING ON 31.3.2008 AND 31.3.2009. IN THE ALTERNATI VE ARGUMENT HE SUBMITTED THAT AT THE BEST RS. 56,000/- ONLY CAN ITA NO.2248/DEL/2014 PURAN CHAND GUPTA 3 BE ADDED. HE CONTENDED FURTHER THAT PRINCIPLE OF AP PLICATION OF PICK CREDIT HAS NOT BEEN FOLLOWED BY THE LD. CIT (A). 6. THE LD. DR ON THE OTHER HAND PLACED RELIANCE O N THE FIRST APPELLATE ORDER WITH THIS CONTENTION THAT THE LD. C IT(A) HAS ALREADY FOLLOWED PICK CREDIT WHILE SUSTAINING THE ADDITION OF RS. 4,04,495/-. 7. HAVING GONE THROUGH THE ORDER IMPUGNED, I FIN D THAT WHILE SUSTAINING THE ADDITION OF RS. 4,04,495/- OUT OF THE TOTAL ADDITION OF RS. 12,23,300/- MADE BY THE AO ON ACCOUNT OF UNDISCLOSED CASH DEPOSIT, THE LD. CIT(A) HAS ALR EADY APPLIED THE THEORY OF PICK CREDIT. FOR A READY REFE RENCE PARA 6 OF THE FIRST APPELLATE ORDER IS BEING REPRODUCED HERE UNDER :- 6. AS PER THE APPELLANTS AR, THE SOURCE OF DEPO SIT IN THE BANK ACCOUNT IS THE CASH IN HAND OF RS. 2,65,070/- SHOWN IN APPELLANTS BALANCE SHEET AS ON 31.03.2009 AND OUT OF CASH WITHDRAWALS MADE BY THE APPELLANT ON VARIOUS DATES. ON VERIFYING THE BANK PASSBOOK, IT IS SEEN THAT APPELLANT HAD DEPOSITED R S. 2,35,000/- TILL 5 TH JUNE, 2008 WITHOUT ANY WITHDRAWALS DURING THIS PERIOD. SIMILARLY, THE DEPOSIT BETWEEN 4 TH NOVEMBER AND 20 TH NOVEMBER IS RS. 3,85,000/- WITHOUT ANY CORRESPONDING WITHDRAWALS DURING THIS PERIOD. THEREFORE, IT IS NO T POSSIBLE TO ACCEPT APPELLANTS PLEA THAT THE ENTIRE CASH DEPOSITS IN THE BANK ACCOUNT WERE OUT OF THE CASH IN HAND AVAILABLE WITH APPELLANT AS ON 31.03.2009. MOREOVER, APPELLANTS AR IN HIS WRITTEN ITA NO.2248/DEL/2014 PURAN CHAND GUPTA 4 SUBMISSIONS DATED 14.01.2014 ADMITS THAT THE APPELLANT HAD PURCHASED & SOLD PROPERTY IN HARIDWAR AND THE INCOME FROM THE SAME WAS NOT OFFERED TO TAX. TAKING ALL THESE ASPECTS INTO CONSIDERATION, I AM OF THE VIEW THAT THE APPELLANT S UNEXPLAINED INCOME SHOULD BE LIMITED TO THE PEAK CREDIT OF RS. 4,04,495/- IN HIS BANK WITH ORIENTAL BANK OF COMMERCE, HARIDWAR BRANCH AS ON 20 TH NOVEMBER, 2008. THEREFORE, THE ADDITION OF RS. 4,04,495/- ALONE IS SUSTAINED AND THE BALANCE ADDITION OF RS. 8,18,805/- (12,23,300-4,04,495) IS DELETED. THUS, GROUND NO. 1 IS PARTLY ALLOWED. 8. THE FIRST APPELLATE ORDER ON THE ISSUE IS COM PREHENSIVE AND REASONED ONE, HENCE I AM NOT INCLINED TO INTERF ERE THEREWITH. SAME IS UPHELD. THE GROUND IS ACCORDINGL Y REJECTED. IN RESULT APPEAL IS DISMISSED. ORDER PRONOUNCED IN THE COURT ON 30/07/2015). SD/- (I.C.SUDHIR) JUDICIAL MEMBER DATED: 30 / 07/2015 *B.RUKHAIYAR* COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR ITA NO.2248/DEL/2014 PURAN CHAND GUPTA 5 DATE INITIAL 1. DRAFT DICTATED ON 21.07.2015 2. DRAFT PLACED BEFORE AUTHOR 23.07.2015 3. DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER JM/AM 4. DRAFT DISCUSSED/APPROVED BY SECOND MEMBER. JM/AM 5. APPROVED DRAFT COMES TO THE SR.PS/PS PS/PS 6. KEPT FOR PRONOUNCEMENT ON PS 7. FILE SENT TO THE BENCH CLERK PS 8. DATE ON WHICH FILE GOES TO THE AR 9. DATE ON WHICH FILE GOES TO THE HEAD CLERK. 10. DATE OF DISPATCH OF ORDER.