SANDHYA SHAMU SHENVI, MUMBAI V. ITO WD 3(3), MUMBAI

ITA 2839/MUM/2013

• Counselvise Citation: [2017] 126 COUNSELVISE.COM (IT) 8961 (ITAT-MUMBAI)
• Duration Of Justice: 4 year(s) 6 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-11-2017
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: E
• Next Hearing Date: 01-03-2017
• Assessment Year: 2009-2010
• Appeal Filed On: 12-04-2013
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: V JUSTIN
• Keywords: Unexplained cash credit; Source of fund; Additional evidence
• Section: 143(3); 131; 69

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL E BENCH, MUM BAI , , BEFORE S/SHRI RAJENDRA, A.M. AND SANDEEP GOSAIN,J.M . ./ ././ ./ ITA NO. 2839/MUM/2013 / ASSESSMENT YEAR: 2009-10 SMT. SANDHYA SHAMU SHENVI 301, JAL TARANG, LOKPURAM. THANE (W) PIN-400 610. PAN: AMRPS 6570 L VS. INCOME TAX OFFICER-WARD-3(3) THANE MUMBAI. ( / // / APPELLANT ) ( / RESPONDENT ) REVENUE BY: SHRI V. JUSTIN -DR ASSESSEE BY: NONE / // / DATE OF HEARING: 27/09/2017 !' / DATE OF PRONOUNCEMENT: 03.11.2017 , ,, , 1961 254(1) ORDER U/S.254(1)OF THE INCOME-TAX ACT,1961(ACT) , ,, , -PER RAJENDRA,AM: CHALLENGING THE ORDER,DATED 12/12/2012,OF CIT(A)-1, THANE THE ASSESSEE HAS FILED THE PRESENT APPEAL.ASSESSEE,AN INDIVIDUAL,DERIVING INCOME FROM TUITION FEE FILED HER RETURN OF INCOME, DECLARING INCOME OF RS.1.83 LAKHS.THE ASSESSING OF FICER (AO) COMPLETED THE ASSESSMENT U/S. 143(3) OF THE ACT, ON 08.12.2011, DETERMINING HER INCOME AT RS.23.84 LAKHS. ASSESSEE DID NOT APPEAR BEFORE US.NO LETTER FOR ADJ OURNMENT IN THE CASE WAS ALSO FOUND ON THE RECORD.THEREFORE, WE ARE DECIDING THE ISSUE AFTER H EARING THE DEPARTMENTAL REPRESENTATIVE (DR) AND ON THE BASIS OF MATERIAL AVAILABLE. 2. DURING THE ASSESSMENT PROCEEDINGS,THE AO FOUND THAT THE ASSESSEE HAD MAINTAINED A SAVING BANK ACCOUNT (ACCOUNT NO.700) WITH NEW INDIA CO. OP . BANK LTD.,THAT SHE HAD DEPOSITED RS.12.40 LAKHS IN THE ACCOUNT ,THAT SHE DID NOT DIS CLOSE THE ACCOUNT IN HER RETURN OF INCOME.HE ISSUED SUMMONS TO HER AND RECORDED HER STATEMENT U/ S. 131 OF THE ACT.IN RESPONSE TO THE QUERY,RAISED BY AO ABOUT DEPOSIT IN BANK ACCOUNT,SH E STATED THAT SHE HAD RECEIVED THE LOANS FROM HER RELATIVES AND FRIENDS ON VARIOUS DATES IN CASH.AS PER THE AO,SHE COULD NOT FURNISH DETAILS,INCLUDING THE NAMES AND ADDRESSES OF RELATI VES AND FRIENDS, ABOUT THE ALLEGED LOANS.IN THE ABSENCE OF ANY SATISFACTORY REPLY,THE AO HELD T HAT ENTIRE CASH DEPOSITS,TO THE EXTENT OF RS.12.40 LAKHS, WERE HER OWN RECEIPTS FROM UNDISCLO SED SOURCES OF INCOME. HE FURTHER OBSERVED THAT THE ASSESSEE HAD ALSO DEP OSITED CHEQUES ON VARIOUS DATES IN THE SAME BANK ACCOUNT TO THE TUNE OF RS. 7.04 LAKHS. A S PER AO,THE ASSESSEE DID NOT OFFER ANY EXPLANATION IN RESPECT OF THE CHEQUE DEPOSITS.HE H ELD THAT SHE HAD UTILIZED THE FUNDS DEPOSIT - 2839/MUM/13- SANDHYA SHAMU SHENVI 2 ED IN THE BANK ACCOUNT FOR THE PURPOSE OF MAKING IN VESTMENT IN MOVABLE AND IMMOVABLE ASSETS AS WELL AS FOR INCURRING CERTAIN EXPENSES.AS THE BANK ACCOUNT IN QUESTION WAS NOT DISCLOSED BY ASSESSEE IN HER RETURN OF INCOME,SO,HE TREATED THE DEPOSITS IN THE ACCOUNT AS RECEIPTS FORM UNDISCLOSED SOURCES.UTILIZATION OF FU NDS WAS TREATED AS UNDISCLOSED INVESTMENT/ UNEXPLAINED EXPENSES. 2.1. AGGRIEVED BUY THE ORDER OF THE AO THE ASSESSEE IS IN APPEAL BEFORE THE FIRST APPELLATE AUTHORITY(FAA) AND MADE ELABORATE SUBMISSIONS.SHE A LSO FILED ADDITIONAL EVIDENCE BEFORE HIM.HE ADMITTED THE EVIDENCE AS PER RULE 46 OF THE IT RULES,1962 AND CALLED FOR A REMAND REPORT FROM AO. AFTER CONSIDERING SUBMISSION OF ASS ESSEE AND REMAND REPORT,HE HELD THAT THE BANK ACCOUNT WAS HELD JOINTLY BY THE ASSESSEE WITH HER HUSBAND,THAT IT HAD TRANSACTIONS RELATED TO HER HUSBAND ALSO,THAT THE SOURCE OF CHEQ UE DEPOSITS AMOUNTING TO RS.8.26 LAKHS STOOD EXPLAINED.HE FURTHER HELD THAT ASSESSEE HAD C ASH AVAILABLE WITH HER TO THE EXTENT OF RS.2.24 LAKHS FROM KNOWN SOURCES OF INCOME, THAT IN THE ABSENCE OF EVIDENCE OF OPENING BALANCE AS ON 1/4/2008,AMOUNTING TO RS.10.90 LAKHS COULD NOT BE ACCEPTED.THEREFORE, HE HELD THAT CASH DEPOSITS TO THE EXTENT OF RS.9.96 L AKHS(12.38 LAKHS (-) 2.42 LAKHS )REMAINED UNEXPLAINED. FINALLY, HE UPHELD THE ADDITION OF RS. 9,96,315/- TO THE INCOME OF THE ASSESSEE UNDER THE HEAD UNEXPLAINED CASH CREDIT. 2.2. WITH REGARD TO INVESTMENT BY THE ASSESSEE ,HE HELD THAT THE ASSESSEE HAD FUND AVAILABLE TO THE EXTENT OF RS.9.46 LAKHS,THAT SHE HAD MADE INVES TMENT OF RS.9.77 LAKHS,THAT INVESTMENT TO THE EXTENT OF RS.30,178/- (RS.9,77,053 MINUS RS.9,4 6,875) REMAINED UNEXPLAINED .HE ADDED THE SAID AMOUNT TO THE INCOME OF THE ASSESSEE U/S. 69 OF THE ACT. 3. NEXT GROUND OF APPEAL IS ABOUT ADDITION OF RS.73,9 42/- TO TUITION FEE EARNED BY THE ASSESSEE.THE AO FOUND THAT THE ASSESSEE HAD SHOWN INCOME OF RS.1.83 LAKHS, THAT IT INCLUDED TUITION FEE OF RS.1.74 LAKHS AND INTEREST OF RS.9, 260/-, THAT SHE HAD RECEIVED AN AMOUNT OF RS.1.23 LAKHS FROM VAIKUNTHA CLASSES IN ADDITION TO HER OWN RECEIPTS FROM TUITIONS AT HOME OF RS.1.144 LAKHS, THAT THE TOTAL RECEIPTS RECEIVED BY THE ASSESSEE FROM TUITIONS FOR THE YEAR WAS RS.2.67 LAKHS, THAT SHE HAD SHOWN THE RECEIPT T O THE EXTENT OF RS.1.74 LAKHS ONLY, THAT SHE HAD UNDERSTATED THE RECEIPT OF TUITION TO THE EXTEN T OF RS.93,942/-. IN THE APPELLATE PROCEEDINGS,THE ASSESSEE MADE SUBM ISSIONS BEFORE THE FAA, WHO ALLOWED DEDUCTION OF RS.20,000/- UNDER THE HEAD EXPENSES IN CURRED TO EARN TUITION FEE. THE BALANCE ADDITION TO THE EXTENT OF RS.73,942/- WAS UPHELD. 2839/MUM/13- SANDHYA SHAMU SHENVI 3 3.1. AS STATED EARLIER,NONE APPEARED BEFORE US,ON BEHAL F OF THE ASSESSEE.THE DR SUPPORTED THE ORDER OF THE FAA. AS NOTHING HAS BEEN BROUGHT ON RE CORD TO PROVE THAT FINDINGS GIVEN BY FAA ARE CONTRARY TO THE DOCUMENTS SO,CONFIRMING HIS ORDER WE DECIDE ALL THE GROUNDS AGAINST THE ASSESSEE. AS A RESULT, APPEAL FILED BY ASSESSEE STANDS DISMIS SED. . ORDER PRONOUNCED IN THE OPEN COURT ON 03 RD NOVEMBER , 2017. 03 2017 SD/- SD/- ( /SANDEEP GOSAIN) ( / RAJENDRA) / JUDICIAL MEMBER / ACCOUNTANT MEMBER MUMBAI; /DATED : 03.11.2017. JV.SR.PS. / COPY OF THE ORDER FORWARDED TO : 1. APPELLANT / 2. RESPONDENT / 3. THE CONCERNED CIT(A)/ , 4. THE CONCERNED CIT / 5. DR E BENCH, ITAT, MUMBAI / , , . . . 6. GUARD FILE/ //TRUE COPY// / BY ORDER, / DY./ASST. REGISTRAR , /ITAT, MUMBAI.