ITO, Ropar V. Sh. Mohan Inder Singh, Ropar

ITA 247/CHANDI/2014

• Counselvise Citation: 24721514 RSA 2014
• Duration Of Justice: 1 year(s) 7 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-10-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 12-10-2015
• Assessment Year: 2009-2010
• Appeal Filed On: 10-03-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S K MITTAL
• Assessee Lawyers: SUDHIR SEHGAL
• Keywords: Gift

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH,CHANDIGARH BEFORE SHRI BHAVNESH SAINI, JUDICIAL MEMBER AND MS.RANO JAIN, ACCOUNTANT MEMBER ITA NO. 247/CHD/2014 ASSESSMENT YEAR: 2009-10 THE ITO, VS SHRI MOHAN INDER SINGH, WARD 2(4), H.NO. 695, ROPAR. RTP POWER COLONY, ROPAR. PAN: AHAPS6581P (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI S.K.MITTAL RESPONDENT BY : SHRI SUDHIR SEHGAL DATE OF HEARING : 12.10.2015 DATE OF PRONOUNCEMENT : 15.10.2015 O R D E R PER BHAVNESH SAINI,JM THIS APPEAL BY REVENUE IS DIRECTED AGAINST THE ORDER OF LD. CIT(APPEALS), CHANDIGARH DATED 26.12.2 013 FOR ASSESSMENT YEAR 2009-10, CHALLENGING THE IMPUGN ED ORDER FOR DELETING THE ADDITION MADE BY ASSESSING OFFICER AMOUNTING TO RS. 19,71,600/-. 2. THE BRIEF FACTS OF THE CASE ARE THAT ON THE BASI S OF INFORMATION PROVIDED BY THE ASSESSEE, THE ASSESSING OFFICER PREPARED A CASH-FLOW STATEMENT ) WHICH HAS BEEN 2 REPRODUCED IN THE ASSESSMENT ORDER) AND WORKED OUT DEFICIT CASH BALANCE OF RS. 20,22,200/- AS ON 06.02.2009. THE ASSESSING OFFICER ASKED THE ASSESS EE TO EXPLAIN THE DEFICIT CASH BALANCE AND ASSESSEE SUBMITTED THAT HE HAD PURCHASED FDR OF RS. 10 LACS ON 12.01.2009 AND HAS RECEIVED A GIFT OF RS. 8,94,000/ - FROM HIS RELATIVES FOR WHICH NO CREDIT WAS GIVEN. THE ASSESSING OFFICER WAS NOT SATISFIED WITH EXPLANATIO N OF THE ASSESSEE AND MADE ADDITION OF RS. 20,22,000/-. 3. THE LD. CIT(APPEALS), CONSIDERING THE EXPLANATIO N OF THE ASSESSEE, ALLOWED PART RELIEF TO THE ASSESSEE I N A SUM OF RS. 19,71,600/- AND ALLOWED PART OF THIS GRO UND OF APPEAL OF THE ASSESSEE. THE FINDINGS OF LD. CIT(APPEALS) IN PARA 2.3 TO 2.3.3 IN THE IMPUGNED O RDER ARE REPRODUCED AS UNDER : 2.3 IT HAS BEEN EXPLAINED IN THE APPELLATE PROCEE DINGS THAT FDR OF RS. 10,00,000/- WAS GOT PREPARED ON 12.01.2009 AND THE DEPOSIT ENTRY ON 06.02.2009 WAS PRE-MATURE ENCASHMENT OF THIS FDR. THIS SUBMISSIO N OF THE APPELLANT IS CORRECT AS PER THE BANK STATEMENT FILED BEFORE ME AND IS HENCE ACCEPTE/D. THE ASSESSING OFFICER HAS TAKEN THIS AMOUNT OF RS. 10,00,000/- IN THE CASH STATEMENT, WHICH IS FACTUALLY NOT CORRECT. HE NCE, THE DEFICIT CASH BALANCE WILL GET REDUCED BY THIS A MOUNT. 2.3.1 IT HAS ALSO BEEN EXPLAINED THAT THE APPELL ANT HAD WITHDRAWN FOLLOWING AMOUNTS IN CASH FROM HIS BA NK ACCOUNT, WHICH HAVE NOT BEEN TAKEN INTO ACCOUNT, WH ILE PREPARING THE CASH FLOW STATEMENT: ON 10.05.2008 RS. 4,90,000/- 3 ON 13.09.2008 RS. 1,00,000/- ON 15.09.2008 RS. 2,00,000/- CASH WITHDRAWN THROUGH ATM RS.1,81,600/- BETWEEN 20.4.2008 TO 6.2.2009 --------------------- RS.9,71,600 2.3.2 THE AFORESAID WITHDRAWALS, IF TAKEN INTO ACCO UNT, WILL REDUCE THE DEFICIT CASH BALANCE BY RS. 9,71,600/-. THE EXPLANATION OF THE APPELLANT HAS BEEN FOUND TO BE C ORRECT AS PER THE BANK STATEMENT AND HENCE IS ACCEPTED. THUS , THE DEFICIT CASH BALANCE WILL GET FURTHER REDUCED BY RS . 9,71,600/-. 2.3.3 IN VIEW OF THE ABOVE, THE DEFICIT CASH BALAN CE WORKED OUT BY THE ASSESSING OFFICER WILL GET REDUCED BY TO TAL AMOUNT OF RS. 19,71,600/- (10,00,000+9,71,600). THE DEFICI T CASH BALANCE, AFTER TAKING INTO ACCOUNT THIS AMOUNT OF R S. 19,71,600/- WILL BE RS. 50,600/- (20,22,200/- - 19, 71,600 ) WHICH IS TO BE ADDED TO THE TOTAL INCOME OF THE APP ELLANT. THE APPELLANT GETS RELIEF OF RS. 19,91,600/-. GROUND OF APPEAL NO. 1 IS PARTLY ALLOWED. 4. THE LD. DR RELIED UPON ORDERS OF THE ASSESSING OFFICER AND SUBMITTED THAT WHATEVER EXPLANATION WAS GIVEN BY ASSESSEE, WAS NOT SUBMITTED BEFORE THE ASSESSING OFFICER, THEREFORE, CASH-FLOW DETAILS MAY BE REFERRED TO THE ASSESSING OFFICER FOR VERIFICATION. ON THE OTHER HAND, LD. COUNSEL FOR THE ASSESSEE REITERATED THE SUBMISSIONS MADE BEFORE AUTHORITIES BELOW AND FILED COPY OF THE BANK STATEMENT OF THE ASSESSEE FOR THE PERIOD 02.04.2008 TO 01.04.2009 AND EXPLAINED THAT ALL ENTRIES ARE THERE IN THE BANK ACCOUNT OF THE ASSESS EE WHICH HAVE BEEN CONSIDERED BY THE LD. CIT(APPEALS) AND THAT ASSESSEE ON PRE-MATURITY OF THE FDR, GOT THE 4 AMOUNT IN THE BANK ACCOUNT OF THE ASSESSEE WHICH HA VE BEEN RIGHTLY CONSIDERED BY THE LD. CIT(APPEALS). 5. WE HAVE CONSIDERED RIVAL SUBMISSIONS AND DO NOT FIND ANY MERIT IN THIS GROUND OF APPEAL OF THE REVE NUE. THE LD. CIT(APPEALS), ON VERIFICATION OF THE PREPAR ED OF THE FDR AND PRE-MATURE ENCASHMENT OF THE FDR FOUND THE CONTENTION OF ASSESSEE TO BE CORRECT AND ACCORD INGLY DIRECTED TO REDUCE THE AMOUNT OF THE FDR ENCASHMENT FOR THE PURPOSE OF ADDITION. ON GOING THROUGH THE BANK STATEMENT OF THE ASSESSEE FILED ON RECORD, WE FIND THAT LD. CIT(APPEALS) WAS JUSTIFIED IN GIVING BENEFIT OF RS. 10 LACS TO THE ASSESSEE BECAUSE ASSESSEE EARLIER PREPA RED A FDR WHICH WAS PRE-MATURED ENCASHED AND SUCH AMOUNT HAS FIND MENTION IN THE BANK ACCOUNT OF THE ASSESSE E. THE ASSESSEE FURTHER EXPLAINED THAT HE HAS WITHDRAW N THE AMOUNT IN CASH FROM THE BANK ACCOUNT IN A SUM O F RS. 9,71,600/- ON THREE DATES WHICH ARE MENTIONED I N THE FINDINGS OF LD. CIT(APPEALS) IN PARA 2.3.1. ALL THESE ENTRIES ARE FOUND MENTIONED IN THE BANK ACCOUNT OF THE ASSESSEE WHICH SUPPORT THE FINDINGS OF THE LD. CIT(APPEALS) THAT THE AMOUNT OF RS. 9,71,600/- IS AVAILABLE TO THE ASSESSEE AND SHALL HAVE TO BE REDU CED. THUS, LD. CIT(APPEALS) ON PROPER APPRECIATION OF TH E FACTS AND MATERIAL ON RECORD IN THE LIGHT OF THE EN TRIES MADE IN THE BANK STATEMENT OF THE ASSESSEE CORRECTL Y ALLOWED RELIEF OF RS. 19,71,600/-. THE DEPARTMENTA L 5 APPEAL HAS NO MERIT AND THE SAME IS ACCORDINGLY DISMISSED. 6. IN THE RESULT, DEPARTMENTAL APPEAL IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT. SD/- SD/- (RANO JAIN) (B HAVNESH SAINI) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 15 TH OCTOBER,2015. POONAM COPY TO: THE APPELLANT, THE RESPONDENT, THE CIT(A), THE CIT, DR ASSISTANT REGISTRAR, ITAT CHANDIGARH