Smt Kiran Shah, Indore V. ITO 3(2), Indore, Indore

ITA 272/Ind/2018

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 8039 (ITAT-INDORE)
• Duration Of Justice: 1 year(s) 9 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-01-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 15-01-2020
• Assessment Year: 2008-2009
• Appeal Filed On: 28-03-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: V J BORICHA
• Assessee Lawyers: ATIQ BANSAL

Judgement Text

SMC - KIRAN SHAH ITA 272 OF 2018 1 IN THE INCOME TAX APPELLATE TRIBUNAL INDORE SMC BENCH, INDORE BEFORE SHRI KUL BHARAT, JUDICIAL MEMBER ITA NO.272/IND/2018 A.Y. 2008-09 SMT. KIRAN SHAH, INDORE PAN ATNPS 8406 L :: APPELLANT VS ITO-3(2), INDORE :: RESPONDENT ASSESSEE BY SHRI ATIQ BANSAL, CA RESPONDENT BY SHRI V.J. BORICHA, SR. DR DATE OF HEARING 15.1.2020 DATE OF PRONOUNCEMENT 16.1.2020 O R D E R THIS APPEAL IS FILED BY THE ASSESSEE AGAINST THE O RDER OF LD. CIT(A)-III, INDORE DATED 20.1.2018 FOR THE ASSESSME NT YEAR 2008-09. 2. THE ONLY GROUND RAISED BY THE ASSESSEE IS THAT T HE LD. CIT(A) HAS ERRED IN ADDING ALL THE PAYMENT MADE TO THE CREDIT CARD CO. OF RS.2,72,358/- WITHOUT CONSIDERING THE DRAWINGS MADE BY THE ASSESSEE HERSELF AND HER SON. FACTS GIVING RISE TO THE GROUN D OF APPEAL ARE THAT SMC - KIRAN SHAH ITA 272 OF 2018 2 THE RETURN OF INCOME OF RS.2,02,500/- WAS VOLUNTARI LY FILED ON 24.9.2008 AND THE CASE WAS SELECTED UNDER SCRUTINY ON THE BASIS OF AIR RELATING TO VERIFICATION OF SOURCE OF CREDIT CA RD PAYMENTS OF RS.2,72,358/-. THE ASSESSING OFFICER COMPLETED THE ASSESSMENT AND ADDED RS.2,72,358/- TO THE TOTAL INCOME OF THE ASSE SSEE, WHICH WAS CHALLENGED BEFORE THE LD. CIT(A). THE LD. CIT(A) CO NFIRMED THE ACTION OF THE ASSESSING OFFICER. THUS, THE ASSESSEE IS BEF ORE THIS TRIBUNAL. 3. BEFORE ME, LEARNED COUNSEL FOR THE ASSESSEE HAS REITERATED THE SUBMISSION MADE BEFORE THE AUTHORITIES BELOW AND SU BMITTED THAT THE ASSESSEE IS DIVORCEE LADY AGED ABOUT 45 YEARS IN TH E YEAR UNDER ASSESSMENT. SHE ALONG WITH HER SON WAS EARNING HER LIVINGS BY PROVIDING TUITION CLASSES. IN THE YEAR 2006-07 ALSO , THE ASSESSEE WAS ASSESSED AT RS.1,91,500/- AND HER RETURNED INCOME W AS ACCEPTED WITH NO ADDITIONS. IN THE YEAR 2007-08, THE ASSESSI NG OFFICER MADE THE ADDITION OF RS.35,000/- ON ACCOUNT OF LOW HOUSEHOLD WITHDRAWALS DESPITE THE FACT THAT SHE HAD CONTRIBUTED RS.6000 H ERSELF AND RS.48,000/- WAS CONTRIBUTED BY HER SON AND THE ASSE SSING OFFICER WAS SATISFIED WITH TOTAL WITHDRAWALS OF RS.89,000/- AND IN THAT YEAR ALSO, SMC - KIRAN SHAH ITA 272 OF 2018 3 THERE WERE CREDIT CARD PAYMENTS. DURING THE YEAR UN DER APPEAL, THE ASSESSEES DRAWINGS WERE OF RS.84,000/- AND HER SON ALSO CONTRIBUTED RS.1 LAKH BUT DUE TO HER SONS ACCIDENT AND SHIFTIN G FROM ONE PLACE TO ANOTHER, THE ASSESSEE LATER ON TOOK A LOAN OF RS.2 LAKHS TO MEET OUT PAYMENTS TO THE CREDIT CARD CO. AND OTHER DAY TO DA Y NEEDS. THE ASSESSEE HAD FILED COPIES OF RETURN ALONG WITH COMP UTATION OF INCOME OF HER SON AND ALSO HER CAPITAL ACCOUNT. OUT OF RS. 2,72,358/-, RS.1,27,710/- WAS PAID IN CASH ON DIFFERENT DATES A ND REST OF THE PAYMENTS WERE MADE BY CHEQUES, WHICH PERTAIN TO CUR RENT YEAR INCOME AND SAVINGS OF PAST ACCUMULATED. THE ASSESSE E AND HER SON GROSSLY EARNED RS.5,55,987/- DURING THE YEAR UNDER APPEAL. THEREFORE, IF TOTAL FAMILY WITHDRAWALS ARE CONSIDERED, THERE A RE SUFFICIENT FUNDS WITH THE ASSESSEE TO MEET OUT CASH PAYMENTS OF CRED IT CARD, THUS, THE ADDITION IS UNJUSTIFIED. ON THE OTHER HAND, LD. SR. DR RELIED ON THE ORDERS OF THE REVENUE AUTHORITIES BUT COULD NOT CON TROVERT THE SUBMISSION OF THE ASSESSEE BY BRINGING ANY CONTRARY MATERIAL ON RECORD. SMC - KIRAN SHAH ITA 272 OF 2018 4 4. I HAVE CONSIDERED THE RIVAL SUBMISSIONS OF BOTH THE PARTIES AND GONE THROUGH THE MATERIAL AVAILABLE ON THE FILE. ON CONSIDERATION OF ABOVE FACTS, I FIND THAT IN THE PREVIOUS YEAR, THE ASSESSEE HAD CONTRIBUTED RS.6000 HERSELF AND RS.48,000/- WAS CON TRIBUTED BY HER SON AND THE ASSESSING OFFICER WAS SATISFIED WITH TO TAL WITHDRAWALS OF RS.89,000/- AS REASONABLE AND IN THAT YEAR AND THER E WERE CREDIT CARD PAYMENTS. HOWEVER, DURING THE YEAR UNDER APPEAL, TH E ASSESSEES DRAWINGS WERE OF RS.84,000/- AND HER SON ALSO CONTR IBUTED RS.1 LAKH BUT DUE TO HER SONS ACCIDENT AND SHIFTING FROM ONE PLACE TO ANOTHER, THE ASSESSEE LATER ON TOOK A LOAN OF RS.2 LACS TO M EET OUT PAYMENTS TO THE CREDIT CARD CO. AND OTHER DAY TO DAY NEEDS. THE ASSESSEE BY FILING COPIES OF RETURN ALONG WITH COMPUTATION OF INCOME O F HER SON AND ALSO HER CAPITAL ACCOUNT FURNISHED EVIDENCE IN SUPPORT O F THE CONTENTION EXPLAINING THAT OUT OF RS.2,72,358/-, RS.1,27,710/ - WAS PAID IN CASH ON DIFFERENT DATES AND REST OF THE PAYMENTS WERE MA DE BY CHEQUES. THE ASSESSEE AND HER SON GROSSLY EARNED RS.5,55,987 /- DURING THE YEAR UNDER APPEAL. LOOKING TO THESE FACTS, I FIND T HAT IF TOTAL FAMILY WITHDRAWALS AND PREVIOUS YEARS ASSESSMENTS AS DISCU SSED HEREINABOVE ARE CONSIDERED, THERE ARE SUFFICIENT FU NDS WITH THE SMC - KIRAN SHAH ITA 272 OF 2018 5 ASSESSEE TO MEET OUT CASH PAYMENTS OF CREDIT CARD, THUS, I DIRECT THE ASSESSING OFFICER TO DELETE THE ADDITION OF RS.2,72 ,358/-. ACCORDINGLY, GROUND NO.1 RAISED BY THE ASSESSEE IS ALLOWED. 8. IN RESULT, THE APPEAL OF THE ASSESSEE IS ALLOWED . ORDER WAS PRONOUNCED IN THE OPEN COURT ON 16.1.2020 . SD/ - (KUL BHARAT) JUDICIAL MEMBER DATED : 16.1.2020 ! VYAS ! COPY TO: APPELLANT/RESPONDENT/PR.CIT(A)/PR.CIT/DR, INDORE