Smt. S.Lakshmi, Coimbatore V. ITO, Coimbatore

ITA 251/CHNY/2011

• Counselvise Citation: [2011] 134 COUNSELVISE.COM (IT) 5271 (ITAT-CHENNAI)
• Duration Of Justice: 2 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-04-2011
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2006-2007
• Appeal Filed On: 15-02-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: M SWAMINATHAN
• Keywords: Set aside

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL BENCH A CHENNAI ( BEFORE SHRI U.B.S.BEDI JUDICIAL MEMBER AND SHRI N.S.SAINI ACCOUNTANT MAMBER ) .. I.T.A. NO. 251/MDS/2011 ASSESSMENT YEAR : 2006-2007 SMT. S.LAKSHMI, 2,SURYA GARDEN, BHARATHI COLONY,PEELAMEDU, COIMBATORE 641 004. PAN ABJPL 1471 G (APPELLANT) V. THE INCOME TAX OFFICER, WARD II(4), COIMBATORE. (RESPONDENT) APPELLANT BY : SHRI M.SWAMINATHAN RESPONDENT BY : SHRI SHAJI P. JACOB O R D E R PER N.S.SAINI, ACCOUNTANT MEMBER : THIS APPEAL IS FILED BY ASSESSEE FOR THE ASSESSMEN T YEAR 2006- 2007 AGAINST AN ORDER DATED 03.12.2010 OF CIT(A)-1, COIMBATORE. 2. THE APPEAL FILED BY THE ASSESSEE IS BARRED BY LI MITATION BY ONE DAY. THE ASSESSEE HAS FILED CONDONATION APPLICATION AND WE ARE SATISFIED THAT THERE WAS SUFFICIENT CAUSE IN FILING OF APPEAL LATE BY ONE 2 DAY AND THEREFORE, WE CONDONE THE DELAY AND ADMIT T HE APPEAL FOR HEARING. 3. THE ASSESSEE HAS TAKEN FIVE GROUNDS OF APPEAL A ND THE SOLE ISSUE INVOLVED IN ALL THE GROUNDS OF APPEAL IS THAT THE CIT(A) WAS NOT JUSTIFIED IN CONFIRMING THE ADDITION OF ` 4,92,515/- MADE BY THE A.O. AS INCOME FROM UNEXPLAINED SOURCES. 4. WE HAVE HEARD RIVAL SUBMISSIONS AND PERUSED THE MATERIALS ON RECORD. THE BRIEF FACTS OF THE CASE ARE THAT THE A SSESSEE HAS SHOWN ADDITIONAL CAPITAL OF ` 4,92,515/-. ASSESSEE EXPLAINED BEFORE THE A.O. THAT THE SOURCE OF THIS CAPITAL WAS DRAWINGS OF ` 3,35,052/-. SINCE THE ASSESSEE DID NOT PRODUCE THE DETAILS OR EVIDENCES, THE A.O. TREATED THE CAPITAL INTRODUCED AS INCOME FROM UNEXPLAINED S OURCE AND ADDED THE SAME TO THE INCOME OF THE ASSESSEE. 5. IN APPEAL, THE CIT(A) OBSERVED THAT ASSESSEE HA S CLAIMED THAT ` 2,42,000/- WAS TRANSFERRED FROM M/S.VALLIAMMAL STAM PINGS ON 09.01.2006 AND ` 2,95,000/- WAS WITHDRAWN ON 10.08.2005 FROM THE SAVINGS BANK ACCOUNT HELD JOINTLY BY THE ASSESSEE O UT OF WHICH ` 2,50,000/- WAS CREDITED TO THE ACCOUNT OF M/S.VALLI AMMAL STAMPINGS ON 21.10.2005. THE CIT(A) OBSERVED THAT NO NEXUS B ETWEEN THE AMOUNT WITHDRAWN FROM THE JOINT ACCOUNT HELD BY TH E ASSESSEE AND THE AMOUNT CREDITED TO THE CURRENT ACCOUNT OF M/S.V ALLIAMMAL 3 STAMPINGS COULD BE PROVED BY THE ASSESSEE. ACCORDI NGLY, HE CONFIRMED THE ADDITION MADE BY THE A.O. 6. BEFORE US, THE AR REITERATED THE SUBMISSIONS MA DE BEFORE THE LOWER AUTHORITIES AND FURTHER SUBMITTED THAT THE CI T(A) HAS CALLED FOR A REMAND REPORT FROM THE A.O. AND IN THE REMAND RE PORT IN THE LAST PARA AT PAGE-2, THE A.O. HAS STATED THAT IT IS NOTI CED THAT ON 09.01.2006, THERE IS A WITHDRAWAL OF ` 2,42,000/- FROM THE JOINT ACCOUNT AND ON THE SAME DAY CREDITED TO THE ACCOUNT OF M/S.VALLIAMMAL STAMPINGS, THE CREDIT FOR WHICH MAY BE CONSIDERED. THE AR SUBMITTED THAT THE CIT(A) HAS OVERLOOKED THE SAID OBSERVATION OF THE A.O. AND MADE THE ADDITION IN SP ITE OF THE A.O. ACCEPTING THE SOURCE OF CREDIT OF ` 2,42,000/- DEPOSITED IN THE CAPITAL ACCOUNT OF THE ASSESSEE. REGARDING THE ADDITION OF ` 2,50,000/- CREDITED TO THE CAPITAL ACCOUNT OF THE ASSESSEE, TH E AR SUBMITTED THAT CONSIDERING THE WITHDRAWAL OF ` 3,35,052/- MADE BY THE ASSESSEE THE SOURCE OF DEPOSIT OF ` 2,50,000/- SHOULD BE TREATED AS EXPLAINED AND THE ADDITION OF ` 2,50,000/- SHOULD BE DELETED. 7. THE DR ON THE OTHER HAND, SUPPORTED THE ORDERS OF THE LOWER AUTHORITIES. 4 8. WE FIND THAT THE ASSESSEE COULD NOT FILE THE DE TAILS AND EVIDENCES FOR ADDITIONAL CAPITAL OF ` 4,92,515/- AND HENCE ADDITION WAS MADE TO THE INCOME OF THE ASSESSEE AS INCOME FR OM UNEXPLAINED SOURCE. THE CIT(A) AFTER CALLING A REM AND REPORT FROM THE A.O. WHEREIN THE A.O. STATED THAT ` 2,42,000/- WAS WITHDRAWN FROM JOINT ACCOUNT ON 09.01.06 AND CREDITED TO THE ACCOU NT OF M/S.VALLIAMMAL STAMPINGS ON THE DAME DAY, THE CREDI T MAY BE CONSIDERED, CONFIRMED THE ADDITION OF ` 2,42,000/- WITHOUT GIVING ANY REASON FOR NOT ACCEPTING THE REMAND REPORT OF THE A .O. FURTHER, NO REASONS HAVE BEEN GIVEN BY THE CIT(A) FOR NOT ACCEP TING THE EXPLANATION OF THE ASSESSEE THAT ` 2,50,000/- WAS DEPOSITED OUT OF THE DRAWINGS OF ` 3,35,052/-. FURTHER WE ALSO FIND THAT DETAILS AND EVIDENCES IN RESPECT OF CREDIT OF ` 4,92,515/- IN THE CAPITAL ACCOUNT OF THE ASSESSEE WAS NOT FILED BY THE ASSESSEE BEFORE T HE A.O. AND THEREFORE, THE A.O. DID NOT HAVE OPPORTUNITY TO VER IFY AND CONSIDER THE SAME. THEREFORE, IN OUR CONSIDERED OPINION, IT SHAL L BE IN THE INTEREST OF JUSTICE TO SET ASIDE THE ORDERS OF THE LOWER AUT HORITIES AND TO REMIT THE MATTER BACK TO THE FILE OF THE A.O. FOR VERIFIC ATION OF THE DETAILS AND EVIDENCES FILED BY THE ASSESSEE BEFORE THE CIT(A) AND RE-ADJUDICATE THE ISSUE AFTER PROPER VERIFICATION AND AFTER ALLOW ING REASONABLE OPPORTUNITY OF HEARING TO THE ASSESSEE. WE ORDER AC CORDINGLY. HENCE, THE GROUNDS OF APPEAL OF THE ASSESSEE ARE ALLOWED F OR STATISTICAL PURPOSES. 5 9. IN RESULT, THE APPEAL OF THE ASSESSEE IS ALLOWE D FOR STATISTICAL PURPOSES. THE ORDER WAS PRONOUNCED IN THE COURT AT THE CLOSE OF THE HEARING IN THE PRESENCE OF THE PARTIES ON 26/04/201 1. SD/- SD/- ( U.B.S.BEDI ) ( N.S. SAINI) JUDICIAL MEMBER ACCOUNTANT MEMBER CHENNAI, DATED THE 26 TH APRIL, 2011. KSS COPY TO: 1. APPELLANT 4.CIT 2. RESPONDENT 5. DR 3. CIT(A)-I COIMBATORE 6.GUARD FILE