Shri Patel Prahladbhai Harjivanbhai, Ahmedabad V. The Income tax Officer,Ward-15(3), Ahmedabad

ITA 2347/AHD/2012

• Counselvise Citation: [2013] 120 COUNSELVISE.COM (IT) 0528 (ITAT-AHMEDABAD)
• Duration Of Justice: 4 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-03-2013
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Next Hearing Date: 28-01-2013
• Assessment Year: 2009-2010
• Appeal Filed On: 18-10-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: D K SINGH
• Keywords: Opportunity of being heard

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD C BENCH AHMEDABAD BEFORE SHRI G.C.GUPTA , VICE PRESIDENT AND SHRI T.R. MEENA, ACCOUNTANT MEMBER ITA NO. 2347/AHD/2012 ASSESSMENT YEAR :2009-10 PATEL PRAHLADBHAI HARJIVANBHAI 66, ANUSTHAN BUNGLAWS, SCIENCE CITY ROAD, SOLE AHMADABAD - 380060 V/S . INCOME TAX OFFICER WARD 15(3), AHMEDABAD PAN NO. A FTPP6124L (APPELLANT) .. (RESPONDENT) BY APPELLANT MS. URVASHI SHODHAN, A.R. /BY RESPONDENT SHRI D.K.SINGH, SR. D.R. /DATE OF HEARING 28.01.2013 /DATE OF PRONOUNCEMENT 15.03.2013 O R D E R PER : T.R.MEENA, ACCOUNTANT MEMBER THIS IS AN APPEAL AT THE BEHEST OF THE ASSESSEE WHI CH HAS EMANATED FROM THE ORDER OF CIT(A)-XXI, AHMEDABAD, DATED 16.0 8.2012 FOR ASSESSMENT YEAR 2009-10. THE SOLE GROUND OF APPEAL IS AGAINST UPHOLDING THE ADDITION OF RS. 10,37,500/- FOR CASH DEPOSITS MADE IN THE BANK ACCOUNT TREATING AS UNDISCLOSED. 2. THE ASSESSEE IS A SALARIED PERSON. HE FILED RE TURN OF INCOME ON 16.06.2009 FOR A.Y. 09-10 AT RS.3,56,272/-. THE A. O. OBSERVED THAT ON GOING THROUGH AIR DETAILS, IT WAS NOTICED THAT THE ASSESS EE HAD MADE CASH DEPOSITS AMOUNTING TO A TOTAL OF RS.10,37,500/- IN THE KALUP UR COMMERCIAL CO- OPERATIVE BANK DURING THE CONCERNED YEAR. THE A.O. GAVE REASONABLE ITA NO. 2347/AHD/2012 A.Y. 09-10 PAGE 2 OPPORTUNITY OF BEING HEARD ON THIS ISSUE. THE ASSE SSEE ALSO RESPONDED AS UNDER: DATE CASH WITHDRAWN FROM BANK NAME OF BANK (FROM WHERE WITHDRAWN) CASH DEPOSITED IN BANK NAME OF BANK (WHERE DEPOSITED) 10/01/08 2,50,000/- THE KALUPUR BANK --- --- 16/01/08 2,00,000/- THE KALUPUR BANK --- --- 13/03/08 2,00,000/- THE KALUPUR BANK --- --- 17/03/08 2,00,000/- THE KALUPUR BANK --- --- 28/03/08 50,000/- THE KALUPUR BANK --- --- 04/04/08 60,000/- THE KALUPUR BANK --- --- 22/05/08 --- --- 8,50,000 THE KALUPUR BANK 09/08/08 20,000/- S.B.I --- --- 04/09/08 30,000/- S.B.I 30,000 THE KALUPUR BANK 15/09/08 20,000/- S.B.I --- --- 22/09/08 --- --- 40,000 THE KALUPUR BANK 08/10/08 30,000/- S.B.I 40,000 THE KALUPUR BANK 08/10/08 10,000/- S.B.I --- --- 10/10/08 20,000/- S.B.I 40,000 THE KALUPUR BANK 10/10/08 20,000/- S.B.I --- --- 16/02/09 20,000/- S.B.I 7,500 THE KALUPUR BANK 16/02/09 15,000/- S.B.I --- --- THE LD. A.O. OBSERVED THAT CASH WITHDRAWN WERE MADE FROM THE KALUPUR BANK IN THE MONTH OF JANUARY OR MARCH 2008, WHEREAS DEPO SITS WERE MADE ON MAY, 2008 OR SEPTEMBER AND OCTOBER 2008 IN THE SAME BANK . THERE WAS NO LOGIC TO KEEP THE HUGE CASH AT HOUSE WITHOUT ANY PURPOSE. HOWEVER, THE APPELLANT CLAIMED BEFORE THE A.O. THAT IT WAS RUMOR THAT FINA NCIAL POSITION OF THE KALUPUR COMMERCIAL CO-OPERATIVE BANK WAS WEAK AND ALSO HE W ANTED TO PURCHASE A LAND IN HIS NATIVE PLACE. THE A.O. DID NOT SATISFY WITH THE REPLY OF THE APPELLANT. THUS, HE MADE ADDITION OF RS.10,37,500/ - AS UNDISCLOSED INCOME OF THE ASSESSEE. ITA NO. 2347/AHD/2012 A.Y. 09-10 PAGE 3 3. BEING AGGRIEVED BY THE ORDER OF THE A.O., THE AS SESSEE CARRIED THE MATTER BEFORE THE CIT(A), WHO HAS ALSO CONFIRMED TH E ADDITION BY OBSERVING AS UNDER: 4.3 I HAVE CONSIDERED THE SUBMISSIONS MADE IN THIS REGARD, THE ORDER OF THE AO AND I AM OF THE VIEW THAT AN ADDITI ON OF RS.10,37,500/- MADE BY THE AO IS CORRECT IN VIEW OF THE FOLLOWING REASONS: (A) THE APPELLANTS CLAIM OF WITHDRAWAL OF CASH, PR EDOMINANTLY IN THE MONTH OF JANUARY AND MARCH 2008, AGAIN RE-DEPOS ITED IN THE MONTH OF MAY 2008 IS AGAINST PREPONDERANCE OF PROBA BILITY. IT IS UNLIKELY THAT A SUBSTANTIAL QUANTITY OF CASH WAS KE PT AT HOME FOR ABOUT THREE MONTHS AND THEN RE-DEPOSITED IN THE BAN K. (B) THE EXPLANATION OF DEPOSIT OF CASH OF RS.10,37, 500/- OFFERED BY THE APPELLANT IS SUBJECTIVE AND THE DEVOID OF ME RITS. NO DETAILED CASH FLOW TO SUPPORT CASH DEPOSIT OF RS. 10,37,500/ - IS SUBMITTED. THE CLAIM OF THE APPELLANT IS THUS REJECTED. THE G ROUND NO.1 RAISED BY THE APPELLANT IS DISMISSED. 4. NOW THE ASSESSEE IS BEFORE US. LD. COUNSEL FOR THE APPELLANT ARGUED THAT THE APPELLANT HAD WITHDRAWN CASH FROM HIS OWN BANK ACCOUNT FOR THE PURPOSE OF PURCHASE OF LAND IN HIS NATIVE PLACE AND ALSO THERE WAS A RUMOR IN THE MARKET THAT FINANCIAL POSITION OF THE KALUPUR C OMMERCIAL CO-OPERATIVE BANK WAS ALSO WEAK. THE APPELLANT FILED PAPER BOOK WHICH INCLUDES COPY OF BANK ACCOUNT OF THE KALUPUR COMMERCIAL CO-OPERATIVE BANK, COPY OF SALARY ACCOUNT, COPY OF EXPLANATION GIVEN BEFORE THE A.O., ALSO COPY OF REPLY SUBMITTED BEFORE THE CIT(A). LD. COUNSEL FURTHER R ELIED IN CASE OF ACIT VS. SHRI JOGINDER SINGH IN ITA NO. 2942 (DEL) OF 2011 F OR A.Y. 05-06, WHEREIN ITA NO. 2347/AHD/2012 A.Y. 09-10 PAGE 4 IDENTICAL ADDITIONS WERE MADE BY THE A.O. THE RESP ECTED ITAT D BENCH, NEW DELHI HAD DELETED THE ADDITION BY OBSERVING THA T THE CIT(A) WAS HAVING CO-TERMINUS POWER WITH THAT OF THE ASSESSING OFFICE R AND HE HAD GIVEN SPECIFIC FINDING ON THE ISSUE, THEREFORE, CASH DEPOSITED IN THE BANK ACCOUNT FOUND EXPLAINED AND ALLOWED THE APPEAL IN FAVOUR OF THE A SSESSEE. SIMILARLY IN CASE OF ACIT VS. BALDEV RAJ CHARLA [2009] 121 TTJ 366 (DELH I), WHEREIN IDENTICAL ADDITIONS OF CASH DEPOSITED AND IT WAS HELD BY THE C BENCH OF ITAT, DELHI, AS UNDER: WHERE THERE WERE SUFFICIENT CASH WITHDRAWALS TO CO VER CASH DEPOSITS IN QUESTION, MERELY BECAUSE THERE WAS TIME GAP BETWEEN WITHDRAWAL OF CASH AND CASH DEPOSITS, EXPLANATION O F ASSESSEE COULD NOT BE REJECTED AND ADDITION ON ACCOUNT OF CA SH DEPOSIT COULD NOT BE MADE [BLOCK PERIOD 1-4-1996 TO 24-9-2002] [I N FAVOUR OF ASSESSEE]. AT THE OUTSET, LD. SR. D.R. VEHEMENTLY RELIED UPON THE ORDERS OF CIT(A) & A.O. 5. WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE MATERIAL ON RECORD. THE ASSESSEE HAS WITHDRAWN CASH FROM THE K ALUPUR COMMERCIAL CO- OPERATIVE BANK IN THE MONTH OF JANUARY AND MARCH, 2 008, WHICH WAS RE- DEPOSITED IN THE SAME BANK ACCOUNT IN THE MONTH OF MAY 2008 AT RS.RS.8,50,000/-. THESE WERE THE CASH WITHDRAWAL MADE BY THE APPELLANT FROM HIS OWN ACCOUNT MAINTAINED WITH THE SAME BANK, NAMELY, THE KALUPUR COMMERCIAL CO-OPERATIVE BANK, WHICH WAS KEPT AT RES IDENCE. SIMILARLY WITHDRAWAL ALSO MADE FROM THE S.B.I. ACCOUNT AND DE POSITS WERE MADE IN THE KALUPUR COMMERCIAL CO-OPERATIVE BANK ON DIFFERENT DATE DURING THE YEAR. ITA NO. 2347/AHD/2012 A.Y. 09-10 PAGE 5 THE LD. A.O. HAS NOT BROUGHT ON RECORD ANY EVIDENCE THAT CASH WITHDRAWAL IN THE MONTH OF JANUARY OR MARCH, HAD BEEN USED OTHERW ISE THEN OTHER PURPOSES MENTIONED BY THE APPELLANT. THEREFORE, WE HAVE CON SIDERED VIEW THAT NO ADDITION CAN BE MADE BY FOLLOWING EXPLANATION OF TH E ASSESSEE AND TWO DECISIONS OF HONBLE ITAT, DELHI. ACCORDINGLY, THE ASSESSEES APPEAL IS ALLOWED. 6. IN THE RESULT, THE ASSESSEES APPEAL IS ALLOWED. THIS ORDER PRONOUNCED IN OPEN COURT ON 15.03.2013 SD/- SD/- (G.C.GUPTA) (T.R. MEENA) VICE PRESIDENT ACCOUNTANT MEMBER TRUE COPY S.K.SINHA ! ! ! ! '! '! '! '! / COPY OF ORDER FORWARDED TO:- 1. / APPELLANT 2. / RESPONDENT 3. '(' ) * / CONCERNED CIT 4. *- / CIT (A) 5. !./ ), ) , 12( / DR, ITAT, AHMEDABAD 6. /45 67 / GUARD FILE. BY ORDER/ , 8/ 1 ': ) , 12( ;