V.Duraisamy, Trichy V. ITO Ward 2(2), Trichy

ITA 2677/CHNY/2018

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 2065 (ITAT-CHENNAI)
• Duration Of Justice: 9 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-06-2019
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: B
• Assessment Year: 2014-2015
• Appeal Filed On: 18-09-2018
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: ABIJIT RAKSHIT
• Assessee Lawyers: S SRIDHAR
• Keywords: Unexplained cash credit; Gift

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH: CHENNAI , ! . , ! ' BEFORE SHRI GEORGE MATHAN, JUDICIAL MEMBER AND SHRI S. JAYARAMAN, ACCOUNTANT MEMBER ./ ITA NO.2677/CHNY/2018 /ASSESSMENT YEAR: 2014-15 SHRI V.DURAISAMY, C/O.SHRI S.SRIDHAR, A.S.SRIRAMAN, ADVOCATES, NEW NO.14, OLD NO.82, FLAT NO.5, 1 ST AVENUE, INDIRA NAGAR, ADYAR, CHENNAI-20. [PAN: AAHPD 6377 Q] VS. THE INCOME TAX OFFICER, WARD-2(2), TRICHY. ( ) /APPELLANT) ( *+) /RESPONDENT) ) , / APPELLANT BY : MR.S.SRIDHAR, ADV. *+) , /RESPONDENT BY : MR.ABIJIT RAKSHIT, JCIT , /DATE OF HEARING : 19.06.2019 , /DATE OF PRONOUNCEMENT : 19.06.2019 / O R D E R PER GEORGE MATHAN, JUDICIAL MEMBER : THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST TH E ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS)-1, TRICHY, IN ITA NO.84/2016- 17/CIT(A)-1/TRY DATED 21.08.2018 FOR THE AY 2014-15 . 2. SHRI ABIJIT RAKSHIT, JCIT, REPRESENTED ON BEHALF OF THE REVENUE AND SHRI S.SRIDHAR, ADV., REPRESENTED ON BEHALF OF THE ASSESSEE. ITA NO.2677/CHNY/2018 :- 2 -: 3. IT WAS SUBMITTED BY THE LD.AR THAT THE ASSESSEE IS AN INDIVIDUAL WHO IS AN EMPLOYEE WITH BHEL. IT WAS A SUBMISSION THAT THERE WAS A CASH DEPOSITS OF NEARLY RS.67.00 LAKHS IN THE ASSESSEES BANK ACCOUNT WITH BHEL EMPLOYEES COOPERATIVE BANK A/C NO.522266. IT WAS A SUBMISSION THAT THE ASSESSEE WAS ASKED TO EXPLAIN THE CASH DEP OSITS, TO WHICH, THE ASSESSEE HAD EXPLAINED THAT THE DEPOSITS WERE FROM THE LOANS TAKEN AND GIFTS RECEIVED FROM THE ASSESSEES RELATIVES. IT W AS A SUBMISSION THAT IN THE COURSE OF THE ASSESSMENT ALSO, THE AO HAD ISSUE D A LETTER TO THE ASSESSEE ON 01.12.2016, WHEREIN, HE HAD IDENTIFIED FOUR OF THE RELATIVES WHOSE DEPOSITS AMOUNTED TO RS.20,30,000/- AND HAD S PECIFICALLY CONFIRMED THAT THE SAME WAS ACCEPTED. THE LD.AR DR EW OUR ATTENTION TO PAGE NO.3 OF THE PAPER BOOK, WHICH WAS A COPY OF TH E LETTER OF THE AO DATED 01.12.2016, WHICH IS EXTRACTED HEREIN BELOW: GOVERNMENT OF INDIA OFFICE OF THE INCOME TAX OFFICER, WARD-2(2) NO.44, WILLIAMS ROAD, CANTONMENT TIRUCHIRAPALLI-620 001 PHONE NO.0431-2460013 --------------------------------------------------- --------------------------------------------------- PAN: AAHPD 6377 Q W-2(2)/TRY/2016-17 DATED 01.12.2016 TO SHRI V.DURAISAMY, 4/308, GOKUL NAGAR, 1 ST CROSS KATTUR POST, TRICHY-620 019. SIR, SUB: SCRUTINY ASSESSMENT - INCOME TAX - A.Y. 2014 -15 - YOUR OWN - REG. REF: 1. NOTICE U/S.143(2) DATED 31.08.2015. 2. THIS OFFICE LETTER DATED 17.11.2016. **** PLEASE REFER TO THE ABOVE. ON EXAMINATIONS OF YOUR BHEL BANK STATEMENTS IN ACCO UNT NUMBER 522266, AN AMOUNT OF RS.67,34,009/- HAS BEEN DEPOSITED ON VARIOUS DATES. THE DETAILS OF SOURCE FOR THE DEPOSITED AMOUNT OF RS 67,34,009/-ARE ALREADY CALLE D FOR. IN THIS CONNECTION, YOU HAVE FURNISHED THE DETAILS OF SOURCE TO AN EXTENT OF RS. 38,61,912/- ON 17.11.2016. ON ITA NO.2677/CHNY/2018 :- 3 -: VERIFICATION OF THE SAME IT REVEALS THAT ONLY RS.20 ,30,000/- IS ACCEPTED. THE DETAILS ARE AS UNDER: S.NO. LOAN RECEIVE BY A FROM OTHERS AMOUNT (RS.) DATE MODE OF PAYMENT 1 S.HARIHARAN 3,80,000 14.08.2013 CASH 2 R.MALIKOLUNDU 3,50,000 27.09.2013 CASH 3 N.RAVICHANDRAN 9,00,000 20.01.2014 CASH 4 S.PALANIAMMAL 4,00,000 05.03.2014 CASH TOTAL 20,30,000 IN THIS CONNECTION, YOUR CASE WAS POSTED FOR HEARIN G IN THIS OFFICE ON 21.11.2016. ON THAT DAY YOU HAVE FILED A LETTER SEEKING ADJOURNMENT TO 30.11.2016. ON 30.11.2016 YOU HAVE NEITHER APPEARED NOR FILED ANY REPLY. ONCE AGAIN YOU ARE REQUIRED TO PRODUCE THE DETAILS O F SOURCE FOR THE BALANCE AMOUNT RS. 47,04,009/- WITH PROPER EVIDENCE. IN THIS CONNECTION, YOUR CASE IS REPOSTED FOR HEARI NG IN THIS OFFICE ON 06.12.2016 @ 11.00 AM. FAILURE ON YOUR PART WOULD RESULT IN COMPLETION OF ASSESSMENT WITH THE FOLLOWING ADDITIONS: 1 RETURNED INCOME RS.8,88,490/- 2 ADDITION: UNEXPLAINED CASH CREDITS U/S.68 RS.47,04,009/- ASSESSABLE INCOME RS.55,92,499 PLEASE NOTE THAT THIS IS THE FINAL OPPORTUNITY, SIN CE THE ASSESSMENT IS A TIME BARRING ONE AND SUFFICIENT NUMBER OF OPPORTUNITIES WAS ALREADY GIVEN TO YOU. YOURS FAITHFULLY, SD/- (S. UTHAYACHANDRAN) INCOME TAX OFFICER WARD 2(2), TRICHY. 4. IT WAS A SUBMISSION THAT WHEN COMPLETING THE ASS ESSMENT, THE AO DID NOT GRANT THE ASSESSEE THE BENEFIT OF DEDUCTION IN RESPECT OF THE SAID FOUR PERSONS WHICH HAD BEEN ACCEPTED ALSO. IT WAS A FURTHER SUBMISSION THAT ON APPEAL, THE LD.CIT(A) HAD ACCEPTED THE PART OF THE AMOUNTS RECEIVED FROM THE CO-BROTHER, SISTER-IN-LAW, ASSESS EES SON AND ALSO ESTIMATED THE SAVINGS OF THE ASSESSEE FROM HIS PAS T SALARIES AND HAD GRANTED THE ASSESSEE THE BENEFIT OF DEDUCTION AT RS .17.43 LAKHS FROM THE ADDITION OF RS.43.90 LAKHS AS MADE BY THE AO. IT WA S A SUBMISSION THAT THE ASSESSEE MAY BE GRANTED THE BENEFIT OF DEDUCTIO N IN RESPECT OF THE FOUR PERSONS ALSO AS ACCEPTED BY THE AO IN HIS LETT ER DATED 01.12.2016. IT ITA NO.2677/CHNY/2018 :- 4 -: WAS A PRAYER THAT THE PERCENTAGE OF THE SAVINGS ADO PTED BY THE LD.CIT(A) IN RESPECT OF THE ASSESSEES SALARY WAS TAKEN AT AR OUND 25%. IT WAS A PRAYER THAT THE SAVINGS MAY PLEASE BE INCREASED TO 50%. 5. IN REPLY, THE LD.DR VEHEMENTLY SUPPORTED THE ORD ER OF THE AO AND THE LD.CIT(A). IT WAS A SUBMISSION THAT THE LD.CIT (A) HAS GIVEN ADEQUATE RELIEF AND NO FURTHER RELIEF WAS CALLED FOR IN THE CASE OF THE ASSESSEE. 6. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS. 7. A PERUSAL OF THE ASSESSMENT ORDER MORE SPECIFICA LLY AT PARA NO.13 OF THE ASSESSMENT ORDER SHOWS THAT AN ADDITION OF RS.2 5.00 LAKHS HAS BEEN MADE WHICH INCLUDES AN AMOUNT OF RS.9.00 LAKHS ADVA NCE BY ONE SHRI RAVICHANDRAN. BUT THE SAME HAS BEEN ACCEPTED BY THE AO AT ITEM NO.3 IN HIS LETTER DATED 01.12.2016. SIMILARLY, IN PARA NO .10 IN RESPECT OF THE CASH DEPOSITS OF RS.7.50 LAKHS, RS.3.50 LAKHS HAS B EEN ACCEPTED IN RESPECT OF SHRI R.MALAIKOLUNDU BUT IN RESPECT OF SHRI S. H ARIHARAN, THE AMOUNT HAS NOT BEEN ACCEPTED TO THE EXTENT OF RS.3,80,000/ - BUT IN THE LETTER DATED 01.12.2016, THE AMOUNT IN RESPECT OF SHRI S.H ARIHARAN HAS BEEN ACCEPTED. SIMILARLY, IN RESPECT OF SHRI S.PALANIAM MAL AN AMOUNT OF RS.4.00 LAKHS HAS BEEN ACCEPTED IN THE LETTER DATED 01.12.2016 BUT IN THE ASSESSMENT ORDER AT PARA NO.15, THE SAME HAS BEEN T REATED AS UNEXPLAINED CASH DEPOSITS. IN THESE CIRCUMSTANCES, THE SAID THREE DEPOSITS REPRESENTING SHRI S.HARIHARAN TO THE EXTEN T OF RS.3.80 LAKHS AND ITA NO.2677/CHNY/2018 :- 5 -: SHRI N.RAVICHANDRAN TO THE EXTENT OF RS.9.00 LAKHS AND SHRI S.PALANIAMMAL TO THE EXTENT OF RS.4.00 LAKHS AS HAS BEEN ACCEPTED BY THE AO IN HIS LETTER DATED 01.12.2016, THE ADDITION TO THIS EXTENT STANDS REDUCED. CONSEQUENTLY, THE ASSESSEE GETS RELIEF OF RS.16,80,000/- FROM THE ADDITION MADE UNDER THE HEAD UNEXPLAINED CASH CREDITS. THE ASSESSEES PRAYER FOR INCREASING OF THE PERSONAL SA VINGS OF THE ASSESSEE FROM 25% ESTIMATED BY THE LD.CIT(A) TO 50% IS REJEC TED AS THE ASSESSEE HAS NOT PRODUCED ANY EVIDENCE TO SHOW SUCH SAVINGS. 8. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS PARTLY ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON THE 19 TH DAY OF JUNE, 2019, IN CHENNAI. SD/- SD/- ( . ) ( S. JAYARAMAN ) ! /ACCOUNTANT MEMBER ( ) (GEORGE MATHAN) ! /JUDICIAL MEMBER /CHENNAI, 3 /DATED: 19 TH JUNE, 2019. TLN , *45 65 /COPY TO: 1. ) /APPELLANT 4. 7 /CIT 2. *+) /RESPONDENT 5. 5 * /DR 3. 7 ( ) /CIT(A) 6. /GF