Mr. Sathappan Visvanathan, New Delhi V. ACIT, New Delhi

ITA 2877/DEL/2016

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 1455 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-06-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2010-2011
• Appeal Filed On: 20-05-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: PN SHASTRI
• Keywords: Salary income
• Section: 143(1)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: C NEW DELHI BEFORE SHRI G. D. AGRAWAL, VICE PRESIDENT AND MS SUCHITRA KAMBLE, JUDICIAL MEMBER I.T.A. NO. 2877 /DEL/201 6 A.Y 201 0 - 11 MR. SATHAPPAN VISVANATHAN 408, SARVAPRIYA APARTMENTS SARVAPRIYA VIHAR NEW DELHI 110 016 PAN: AABPV8025B VS A CIT CIRCLE - 42 (1) NEW DELHI (APPELLANT) (RESPONDENT) APPELLANT BY SH. M.P. RASTOGI, ADV. & SH. P.N. SHASTRI, C.A. RESPONDENT BY SH. AMIT KATOCH, SR.D.R. ORDER PER SUCHITRA KAMBLE, JM THIS APPEAL IS FILED BY THE ASSESSEE AGAINST THE ORDER DATED 11/03/ 201 6 PASSED BY THE CIT(A) - 28 , NEW DELHI FOR ASSESSMENT YEAR 201 0 - 11 . 2. THE GROUNDS OF APPEAL ARE AS UNDER: - 1. THE CIT(A) HAS ERRED IN CONFIRMING THE ADDITION OF RS. 2,5 0,000/ - ON ACCOUNT OF CASH DEPOSITED IN BANK IGNORING THE CASH DRAWINGS PLUS THE CREDIT CARD DRAWINGS AND OTHER FACTORS. 2. THAT THE APPELLANT SEEKS LEAVE TO ADD TO, ALTER, AMEND, ABANDON OR SUBSTITUTE ANY OF THE A B OVE GROUNDS AT THE TIME OF HEARING OF APPEAL. DATE OF HEARING 04.06. 2019 DATE OF PRONOUNCEMENT 07 .0 6 .2019 ITA NO. 2877 /DEL/2019 A.Y. 201 0 - 11 MR.SATHAPPAN VISVANATHAN VS. A CIT 2 3. THE ASSESSEE IS A VICE PRESIDENT IN M/S GE CAPITAL SERVICES INDIA AND DERIVES SALARY INCOME AND ALSO DERIVES RENTAL INCOME FROM HOUSE PROPERTY, STCG, LTCG ON SALE OF SHARES AND INTEREST INCOME FROM FDRS AND SAVINGS BANK ACCOUNTS. THE RETURN OF INCOME WAS ELECTRONICALLY FILED ON 30.07.2010 DECLARING INCOME OF RS.1,33,47,240/ - . THE RETURN WAS PROCESSED U/S 143(1) OF THE INCOME TAX ACT, 1961 ON 09.05.2011. THE CASE WAS SELECTED FOR SCRUTINY UNDER CA SS AND INITIAL STATUTORY NOTICE U/S 143(2) OF THE INCOME TAX ACT, 1961 (THE ACT) ON 22.9.2015 WAS ISSUED AND SERVED UPON THE ASSESSEE. THE C.A. AND A UTHORIZED R EPRESENTATIVE OF THE ASSESSEE ATTENDED THE ASSESSMENT PROCEEDINGS FROM TIME TO TIME AND FILED THE DETAILS WHICH WERE EXAMINED BY THE ASSESSING OFFICER . THE ASSESSING OFFICER MADE VARIOUS ADDITIONS INCLUDING THE ADDITION OF RS.2,50,000/ - IN RESPECT OF UNEXPLAINED CASH DEPOSITS. 4. BEING AGGRIEVED BY THE ASSESSMENT ORDER, THE ASSESSEE FILED APPEAL BEFORE THE CIT(A) AND THE CIT(A) PARTLY ALLOWED THE APPEAL OF THE ASSESSEE. 5. THE LD. AR SUBMITTED THAT THE CIT(A) ERRED IN CONFIRMING THE ADDITION OF RS.2,50,000/ - ON ACCOUNT OF CASH DEPOSITED IN BANK IGNORING THE CASH DRAWINGS PLUS CREDIT CARD DRAWING S FOR WHICH DOCUMENTARY EVIDENCE WAS PRODUCED BEFORE THE ASSESSING OFFICER . T HE LD. AR DEMONSTRATED FROM THE PAPER BOOK THAT THE DETAILS OF CASH WITHDRAWALS WAS BEFORE THE ASSESSING OFFICER WHICH WAS NOT TAKEN INTO ACCOUNT BY THE ASSESSING OFFICER AS WELL AS BY THE CIT(A). THE LD. AR ALSO SUBMITTED THE CASH FLOW STATEMENT FOR F.Y. 2009 - 10 I.E. A.Y. 2010 - 11. THE LD. AR FURTHER SUBMITTED THAT THE AS SESSEE BEING SALARIED EMPLOYEE IN THE NORMAL CIR CUMSTANCES DOES NOT REQUIRE PREPARING AND MAINTAINING THE STATEMENT OF AFFAIRS. FURTHER THE ASSESSEE BEING A SR. EXECUTIVE WAS REQUIRED TO TRAVEL EXTENSIVELY AND THUS COULD NOT GET THEM PREPARED IN A SHORT TIME. THE ASSESSEE IS A SINGLE MAN AND IS HAVING A HOUSE AND CAR PERQUISITES BESIDES THE USUAL FACILIT Y OF PHONE ETC. THE LD. AR FURTHER SUBMITTED THAT B EING AN EXECUTIVE, HE MEETS MOST OF HIS PERSONAL EXPENSES ITA NO. 2877 /DEL/2019 A.Y. 201 0 - 11 MR.SATHAPPAN VISVANATHAN VS. A CIT 3 THROUGH CREDIT CARDS. HIS DRAWINGS THROUGH CREDIT CARDS OTHER THAN CASH WITHDRAWALS WAS TO THE EXTENT OF RS.10,38,356/ - , WHICH IS SUFFICIENTLY LA RGE FOR HIS USUAL EXPENSES. THE ASSESSEE MAINTAINS A REASONABLY LARGE CASH BALANCE AS HE IS REQUIRED TO UNDERTAKE EXTENSIVE TRAVEL AND MAY REQUIRE IT, THE DETAILS OF WHICH HAS BEEN GIVEN TO THE REVENUE AUTHORITIES DURING THE ASSESSMENT PROCEEDINGS AND BEFO RE THE CIT(A) . THUS THE LD. AR SUBMITTED THE ASSESSING OFFICER AS WELL AS THE CIT(A) WAS NOT CORRECT IN MAKING ADDITION AS UNEXPLAINED CASH DEPOSITS. 6. THE LD. DR RELIED UPON THE ASSESSMENT ORDER AND ORDER OF THE LD.CIT(A) . 7. WE HAVE HEARD BOTH THE PARTIES AND PERUSED ALL THE MATERIAL AVAILABLE ON RECORD. THE FINDING OF THE CIT(A) THAT WITHDRAWALS WERE ONLY NOMINAL DOES NOT APPEARS TO BE CORRECT AFTER GOING THROUGH THE EVIDENCES PRODUCED BEFORE THE ASSESSING OFFICER AS WELL A S BEFORE THE CIT(A). IN FACT, THE ASSESSEE IN A YEAR HAS WITHDRAWN MORE THAN RS.10 LAKHS. THIS CRUCIAL FACTOR HAS BEEN OVERLOOKED BY THE ASSESSING OFFICER AS WELL AS BY THE CIT(A). T HE DETAILS FILED BY ASSESSEE DURING THE ASSESSMENT PROCEEDINGS AND BEFORE THE CIT(A) ITSELF SPEAKS THAT THE CASH DEPOSIT OF RS.2,50,000/ - IS FROM THE SAID CASH WITHDRAWALS WHICH WAS MADE FOR TRAVELLING EXPENSES OF THE ASSESSEE FOR HIS OFFICIAL DUTY AS AN EMPLOYEE OF M/S GE CAPITAL SERVICES INDIA . THEREFORE, THE CIT(A) AS WELL AS THE ASSESSING OFFICER WERE NOT CORRECT IN MAKING SUCH ADDITIONS. THUS, APPEAL OF THE ASSESSEE IS ALLOWED . 8 . IN R ESULT, APPEAL OF THE ASSESSEE IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 07 TH JUNE, 2019 . SD/ - SD/ - (G. D. AGRAWAL) (SUCHITRA KAMBLE) VICE PRESIDENT JUDICIAL MEMBER DATED: 07 /06/2019 *GMV ITA NO. 2877 /DEL/2019 A.Y. 201 0 - 11 MR.SATHAPPAN VISVANATHAN VS. A CIT 4 COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI DATE DRAFT DICTATED ON 04/06/19 DRAFT PLACED BEFORE AUTHOR 0 7 /06/19 DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER DRAFT DISCUSSED/APPROVED BY SECOND MEMBER. APPROVED DRAFT COMES TO THE SR.PS/PS KEPT FOR PRONOUNCEMENT ON & ORDER UPLOADED ON : 07 /06/19 FILE SENT TO THE BENCH CLERK DATE ON WHICH FILE GOES TO THE AR DATE ON WHICH FILE GOES TO THE HEAD CLERK. DATE OF DISPATCH OF ORDER.