SHRI ANIL YADAV, Jaipur V. ITO, Jaipur

ITA 290/JPR/2012

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 82741 (ITAT-JAIPUR)
• Duration Of Justice: 2 year(s) 5 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-08-2014
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: A
• Assessment Year: 2007-2008
• Appeal Filed On: 27-03-2012
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: D C SHARMA
• Assessee Lawyers: K L MOOLCHANDAN I
• Keywords: Unexplained expenditure

Judgement Text

ITA NO. 290//JP/2012 SHRI ANIL YADAV VS. ITO 1 IN THE INCOME TAX APPELLATE TRIBUNAL JAIPUR BENCH, JAIPUR (BEFORE SHRI R.P. TOLANI AND SHRI T.R. ME ENA) ITA NO. 290/JP/2012 ASSESSMENT YEARS : 2007-08 PAN : AANPY 5454 B SHRI ANIL YADAV VS. THE ITO PLOT NO. 340, DEVI NAGAR WARD- 2(4) SANGANER ROAD, JAIPUR JAIPUR (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI K.L. MOOLCHANDANI DEPARTMENT BY: SHRI D.C. SHARMA DATE OF HEARING: 26-08-2014 DATE OF PRONOUNCEMENT: 28-08-2014 ORDER PER R.P. TOLANI, JM THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST T HE ORDER OF THE LD. CIT(A)- 1, JAIPUR DATED 23-01-2012 FOR THE ASSE SSMENT YEAR 2007-08 WHEREIN THE GROUNDS RAISED BY THE ASSESSEE IN BRIEF ARE AS UNDER:- THE LD. CIT(A) ERRED IN LAW AND FACTS IN:- (I) CONFIRMING THE ADDITION OF RS. 58,500/- UNDER T HE HEAD COMMISSION INCOME . (II) RETAINING THE ADDITION OF RS. 3,05,938/- U/S 6 9A OF THE ACT OUT OF ADDITION OF RS. 7,72,050/- MADE BY T HE AO (III) NOT GIVING SET OFF OF ADDITION OF RS. 58,500/ - I.E. EXTRA INCOME HELD TO BE EARNED. ITA NO. 290//JP/2012 SHRI ANIL YADAV VS. ITO 2 2.1 DURING THE COURSE OF HEARING, THE LD. AR CONTEN DS THAT THE ASSESSEE IS A SMALL PROPERTY BROKER. CONSEQUENTLY, THE BOOKS OF ACCOUNT OF THE ASSESSEE ARE NOT MAINTAINED. THE ASSESSEE HAD SHOWN GROSS BR OKERAGE AT RS. 2,73,150/- AND NET PROFIT OF RS. 1,41,500/-. THE AO GIVING WITHOUT GIVING COGENT REASONS ESTIMATED THE INCOME OF THE ASSESSEE WHICH WAS CONFIRMED BY THE LD. CIT(A). 2.2 THE LD. DR RELIED ON THE ORDER OF AO. 2.3 WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE MATERIALS AVAILABLE ON RECORD. ON THIS ISSUE, THE INTEREST OF JUSTICE WILL BE SERVED IF THE ADDITION ON THE ESTIMATED INCOME IS RESTRICTED TO R S. 25,000/-. THUS GROUND NO. 1 OF THE ASSESSEE IS PARTLY ALLOWED. 3.1 APROPOS SECOND GROUND, THE LD. CIT(A) RESTRICTE D THE ADDITION TO RS. 3,05,938/- BY OBSERVING AS UNDER:- 5.4 I HAVE CAREFULLY PERUSED THE ORDER OF THE AO AND THE SUBMISSIONS OF THE A.R.. ON PERUSAL OF THE DETA ILS FILED BY THE A.R. FROM TIME TO TIME, IT IS SEN THAT DURING T HE YEAR THE APPELLANT HAD PURCHASED A.C. (RS.13,950/-), FURNITU RE AND FIXTURE (RS. 25,500/-), COMPUTER (RS. 20,000/-), CA RD RS. 5,45,500/-) AND BUILDING RS. 1,95,000/-). AS PER HI S OWN SUBMISSION, THE A.R. HAS ADMITTED ON 16-01-2012 THA T THE TOTAL HOUSEHOLD EXPENDITURE OF RS. 3,16,334/- AS FOLLOWS. (I) H.H. EXPENSES RS. 1,30,000/- (II) AIR CONDITIONER RS. 13,950/- (III) FURNITURE & FIXTURE RS. 25,500/- (IV) COMPUTER RS. 20,000/- (V) CASH PAID FOR CAR RS. 1,26,884/- ITA NO. 290//JP/2012 SHRI ANIL YADAV VS. ITO 3 RS. 3,16,334/- REGARDING PAYMENT OF EMI FOR LOANS TAKEN FROM ICICI BANK , IT IS SEEN FROM HIS SUBMISSION DATED 15-09-2 011 THAT THE ASSESSEE HAS PAID RS. 1,47,004/- AS EMI DURING THE YEAR AS PER THE CHART BELOW:- DATE OF LOAN TAKEN EMI X NO. OF MONTHS TOTAL PAYMENT MADE TO BANK 1. JUNE, 2007 3771 X 10 37,710/- 2. JULY, 2006 4865 X 9 43,785/- 3. 10-10-2006 8895 X 6 53,370/- 4. 6-03-2007 12139X1 12,139/- 1,47,004/- THUS THE TOTAL WITHDRAWALS DURING THE YEAR FOR HOUS E HOLD EXPENDITURE, PURCHASE OF ASSETS AND PAYMENT OF EMI COMES TO RS. 4,63,338/-. AS SUCH, HE ONLY HAD RS. 8,28,662/- (RS. 12,92,000/- - RS. 4,63,338/-) AT HIS DISPOSAL FOR ROTATION BY WAY OF DEPOSIT IN THE BANK ACCOUNT WHEREAS THE CASH DEP OSITS HAVE BEEN SHOWN AT RS. 11,34,600/-. THEREFORE, THE BALAN CE AMOUNT OF RS. 3,05,938/- REMAINS UNEXPLAINED CASH DEPOSITS IN THE BANK ACCOUNT OF THE ASSESSEE WHICH IS TO BE ADDED TO THE TOTAL INCOME OF THE ASSESSEE DURING THIS ASSESSMENT YEAR. THUS, THE IMPUGNED ADDITION OF RS. 7,72,050/- IS RESTRICTED TO RS. 3,0 5,938/- U/S 69A AS UNEXPLAINED CASH DEPOSITS IN HIS BANK ACCOUNT. 3.2 WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE MATERIALS AVAILABLE ON RECORD. WE ARE OF THE VIEW THAT THE LD . CIT(A) HAS GIVEN APPROPRIATE WORKING AS TO THE ASSESSEE'S UNEXPLAIN ED EXPENDITURE BY CONSIDERING THE HEADWISE INVESTMENT / EXPENDITURE. THUS IN VIEW THEREOF, NO ITA NO. 290//JP/2012 SHRI ANIL YADAV VS. ITO 4 INTERFERENCE IS CALLED FOR IN THE LD. CIT(A)S ORDE R WHICH IS UPHELD ON THIS ISSUE. THUS SECOND GROUND OF THE ASSESSEE IS DISMIS SED. 4.1 APROPOS THIRD GROUND OF THE ASSESSEE, WE FIND M ERIT IN THE ARGUMENTS OF THE LD. COUNSEL FOR THE ASSESSEE THAT WHEN EXTR A INCOME IS ESTIMATED TO BE EARNED BY THE ASSESSEE THEN THAT WILL GO TO SET OFF THE UNEXPLAINED EXPENDITURE TO THAT EXTENT. SINCE WE HAVE RETAINED 25% BY WAY ESTIMATED COMMISSION ADDITION, WE HOLD THAT THIS AMOUNT SHALL BE THE SET OFF AGAINST THE UNEXPLAINED EXPENDITURE OF RS. 3,05,938/-. THE BALANCE ADDITION IS WORKED OUT TO RS. 2,80,938/-. THUS THE ASSESSEE GET S THE PART RELIEF. 5.0 IN THE RESULT, THE APPEAL OF THE ASSESSEE IS PA RTLY ALLOWED. THE ORDER IS PRONOUNCED IN THE OPEN COURT ON 2 8 -08-2014 SD/- SD/- (T.R. MEENA) (R.P. TOLANI) ACCOUNTANT MEMBER JUDICIAL MEMBER JAIPUR DATED: 28 TH AUG. 2014 *MISHRA COPY FORWARDED TO:- 1. SHRI ANIL YADAV, JAIPUR 2. THE ITO, WARD- 2 (4), JAIPUR 3. THE LD. CIT 4. THE LD. CIT(A), JAIPUR BY ORDER 5..THE LD. DR 6.THE GUARD FILE (IT NO. 290/JP/2012) ITA NO. 290//JP/2012 SHRI ANIL YADAV VS. ITO 5 AR ITAT, JAIPUR ITA NO. 290//JP/2012 SHRI ANIL YADAV VS. ITO 6 ITA NO. 290//JP/2012 SHRI ANIL YADAV VS. ITO 7