Meeran Mohideen, CHENNAI V. ITO Non Corporate Ward 5(5), CHENNAI

ITA 2423/CHNY/2018

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 1552 (ITAT-CHENNAI)
• Duration Of Justice: 1 year(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-09-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2015-2016
• Appeal Filed On: 23-08-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Unexplained cash credit; Income from undisclosed sources
• Section: 201

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH : CHENNAI , , BEFORE SHRI GEORGE MATHAN, JUDICIAL MEMBER & S HRI S.JAYARAMAN , ACCOUNTANT MEMBER ./ I.T.A.NO.2423/CHNY/2018 / ASSESSMENT YEAR : 2015-16 SHRI MEERAN MOHIDEEN , 4/201,4 TH STREET,5 TH MAIN ROAD, MUTHAMIZH NAGAR,KODUNGAIYUR CHENNAI 600 018. VS. INCOME - TAX OFFICER, NON-CORPORATE WARD-5(5) CHENNAI. [PAN CDUPM 2267 C ] ( / APPELLANT) ( /RESPONDENT) / APPELLANT BY : MR.D.ANAND,ADVOCATE !' /RESPONDENT BY : MR. AR. V.SREENIVASAN,JCIT,D.R & / DATE OF HEARING : 04 - 09 - 201 9 & / DATE OF PRONOUNCEMENT : 04 - 09 - 201 9 / O R D E R PER GEORGE MATHAN, JUDICIAL MEMBER THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF THE COMMISSIONER OF INCOME-TAX (APPEALS)-5, CHENNA I IN ITA NO.256/C.I.T(A)-5/2017-18 DATED 25.07.2018 FOR THE ASSESSMENT YEAR 2015-16. ITA NO. 2423/CHNY/2018 :- 2 -: 2. SHRI D.ANAND REPRESENTED ON BEHALF OF THE ASSE SSEE AND SHRI AR.V.SREENIVASAN REPRESENTED ON BEHALF OF T HE REVENUE. 3. IT WAS SUBMITTED BY LD.AR THAT ASSESSEE IS AN I NDIVIDUAL, WHO IS DOING THE BUSINESS OF INDENTING AGENT FOR IMPORT OF PAPER. IT WAS A SUBMISSION THAT IN THE COURSE OF DEMONETIZATION PER IOD, THE ASSESSEE HAD MADE A CASH DEPOSIT OF RS.3,37,40,770/- IN HIS CURRENT ACCOUNT. THE SOURCES FOR THE DEPOSITS WERE VERIFIED WITH THE DOCUMENTS FURNISHED SUCH AS BILLS OF ENTRY, BANK STATEMENT WI TH A DETAILED NATURE OF HIS BUSINESS. IT WAS SUBMITTED THAT THE EVIDENCE S PRODUCED WERE ACCEPTED AND NO UNACCOUNTED INCOME WAS FOUND IN THE HANDS OF ASSESSEE. IT WAS FURTHER SUBMITTED THAT HOWEVER, TH E ASSESSING OFFICER HAD QUESTIONED THE OPENING BALANCE OF THE CAPITAL IN THE ASSESSEES HAND, WHICH HAD BEEN CLAIMED BY THE ASSESSEE TO BE OUT OF HIS PAST SAVINGS BEING OPENING BALANCE, WHICH WAS SHOWN AS R S.25,12,359/-. UNDER THE SCHEME OF PMGKY-2016, THE ASSESSEE HAD DI SCLOSED AN AMOUNT OF RS.20,00,000/- AND PAID THE TAX THEREON. FOR THE BALANCE OF RS.5,12,369/-, THE ASSESSEE HAD SHOWN ADEQUATE S OURCE , AS PER THE ASSESSING OFFICER FOR THE ASSESSMENT YEARS 2013-14 AND 2014-15, TOTALING TO RS.3,16,390/-. THE ASSESSING OFFICER D ID NOT ACCEPT THE ASSESSEES CLAIM IN RESPECT OF BALANCE OF RS.1,95,9 69/-, WHICH HAD BEEN CLAIMED BY THE ASSESSEE AS PAST SAVINGS. IT W AS SUBMITTED THAT ITA NO. 2423/CHNY/2018 :- 3 -: EVIDENCES HAD BEEN PRODUCED EXPLAINING HIS PAST SAV ING, BUT THE SAME HAD BEEN TREATED AS UNEXPLAINED CASH CREDIT U/S.68 OF THE ACT AND ADDED TO THE TOTAL INCOME FOR IMPUGNED ASSESSMENT Y EAR WITHOUT GIVING ANY REASON. IT WAS A PRAYER THAT ADDITION OF RS.1,95,969/- ADDED AS UNEXPLAINED CASH CREDIT BE DELETED IN THE INTEREST OF JUSTICE. 4. IN REPLY, THE LD.DR VEHEMENTLY SUPPORTED THE OR DERS OF THE ASSESSING OFFICER AND THE LD.CIT(A). 5. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS AND PE RUSED THE MATERIAL AVAILABLE ON RECORD. A PERUSAL OF THE FAC TS AND BALANCE SHEET CLEARLY SHOWS THAT THE ASSESSEE HAS BEEN ABLE TO EX PLAIN THE SUMS CREDITED IN HIS BANK ACCOUNT, WHICH IS ALSO ACCEPTE D BY THE ASSESSING OFFICER. ONLY IN REGARD TO THE OPENING BALANCE OF A AMOUNT OF RS.1,95,969/- IS BEING CHALLENGED BY THE ASSESSING OFFICER AS UNEXPLAINED CASH CREDIT, OUT OF AN AMOUNT OF RS.25, 12,359/-. IT IS AN ACCEPTED FACT THAT THE ASSESSEE HAS MADE PROFITS IN THE EARLIER YEARS AND THE BALANCE SHEET, PROFIT AND LOSS ACCOUNT AS P RODUCED BY THE ASSESSEE CLEARLY SHOWS SAVINGS. THE ASSESSEES BANK ACCOUNT CAME TO BE QUESTIONED ONLY ON ACCOUNT OF CASH DEPOSIT OF RS .3,37,40,770/- IN HIS BANK CURRENT ACCOUNT DURING THE DEMONETIZATION DRIVE. NO FAULT IN THE ACCOUNTS OF THE ASSESSEE HAS BEEN POINTED OUT. THIS BEING SO, WE ARE OF THE VIEW THAT THE CLAIM OF ASSESSEE FOR HAVI NG SAVINGS OF ITA NO. 2423/CHNY/2018 :- 4 -: RS.1,95,969/- CANNOT BE FAULTED AND CONSEQUENTLY, THE ADDITION AS MADE BY THE ASSESSING OFFICER AND CONFIRMED BY THE LD.CIT(A) STANDS DELETED. 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS AL LOWED. ORDER PRONOUNCED IN THE OPEN COURT AFTER CONCLUSION OF HEARING ON 04 TH SEPTEMBER, 2019, AT CHENNAI. SD/- SD/- ( ) (S. JAYARAMAN) # /ACCOUNTANT MEMBER ( ) (GEORGE MATHAN) $ # / JUDICIAL MEMBER / CHENNAI * / DATED: 04 TH SEPTEMBER, 2019. K S SUNDARAM !,- .- / COPY TO: 1 . / APPELLANT 4. / / CIT 2. !' / RESPONDENT 5. - !2 / DR 3. / () / CIT(A) 6. / GF