Smt.Amita Ankitkumar Mansuria, Upleta. V. Income Tax Officer, Ward-2(3)(3), Rajkot

ITA 298/RJT/2017

• Counselvise Citation: [2019] 112 COUNSELVISE.COM (IT) 1127 (ITAT-RAJKOT)
• Duration Of Justice: 2 year(s) 2 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-12-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2011-2012
• Appeal Filed On: 19-09-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ARVIND SONTAKKE
• Assessee Lawyers: MJ RANPURA
• Keywords: Reopening of assessment; Unexplained investment; Gift
• Section: 271(1)(c); 143(1); 147; 148

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, RAJKOT BENCH, RAJKOT [CONDUCTED THROUGH E-COURT AT AHMEDABAD] BEFORE SHRI RAJPAL YADAV, JUDICIAL MEMBER AND SHRI WASEEM AHMED, ACCOUNTANT MEMBER ./ ITA NO. 298/RJT/2017 ASSESSMENT YEAR : 2011-12 SMT. AMITA ANKITKUMAR MANSURIA, BLOCK NO. 14, MAHAVIR PARK, DHANK MARG, UPLETA PAN : AMMPM 9588 P VS THE INCOME-TAX OFFICER, WARD 2(3)(3), RAJKOT / (APPELLANT) / (RESPONDENT) ASSESSEE BY : SHRI M. J. RANPURA, AR REVENUE BY : SHRI ARVIND SONTAKKE, SR DR / DATE OF HEARING : 18/11/2019 / DATE OF PRONOUNCEMENT: 12 /12/2019 / O R D E R PER RAJPAL YADAV, JUDICIAL MEMBER :- 1. THE ASSESSEE IS IN APPEAL BEFORE THE TRIBUNAL AG AINST THE ORDER OF LEARNED CIT(A)-2, RAJKOT DATED 31.07.2017 PASSED FOR ASSESS MENT YEAR 2011-12. 2. IN GROUND NOS. 2.0 & 2.1, THE ASSESSEE HAS PLEAD ED THAT LEARNED CIT(A) HAS ERRED IN UPHOLDING THE REOPENING OF ASSESSMENT BY ISSUANCE OF NOTICE UNDER SECTION 148 OF THE INCOME-TAX ACT, 1961. 3. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSE E HAS FILED HER RETURN OF INCOME ELECTRONICALLY ON 20.07.2011 DECLARING TOTAL INCOME AT RS.1,89,994/-. THIS RETURN WAS PROCESSED UNDER SECTION 143(1) OF T HE ACT. THE ASSESSING OFFICER THEREAFTER ISSUED NOTICE UNDER SECTION 148 OF THE INCOME-TAX ACT ON 22.09.2014 WHICH WAS DULY SERVED UPON THE ASSESSEE. FOR REOPENING OF THE ASSESSMENT, LEARNED ASSESSING OFFICER HAS ASSIGNED FOLLOWING REASONS:- ITA NO. 298/RJT/2017 SMT AMITA ANKITKUMAR MANSURIA VS. ITO AY : 2011-12 2 SMT. ARNITA ANKITKUMAR MANSURIA IS A ASSISTANT PRI MARY TEACHER IN SHRI DUMIYANI PRIMARY SCHOOL AT DUMIYANI TAL:- UPLETA. S HE HAS FILED HER E- RETURN OF INCOME IN ITR-1 OF RS. 1,89/994/- VIDE E- RETURN ACK. NO. 238989880200711 ON 20/07/2011 FOR A.Y.2011-12. THE I.T.O. WARD-1(4) RAJKOT VIDE HIS LETTER NO. ITO /WARD 1(4)/ SCRUTINY INTIMATION/2014-15 DATED 04/04/2014 HAS INTIMATED T HAT THE ASSESSEE IS HAVING JOINT BANK ACCOUNT ALONG-WITH SHRI ANKITKUMAR MANSU RIA (HER HUSBAND) AND WITH SMT. GITABEN MANJIBHAI MANSURIA (HER MOTHER-IN -LAW) BEARING ACCOUNT NO. 312610110000304 WITH BANK OF INDIA UPLETA AND T RANSACTION MADE IN THE ABOVE REFERRED BANK ACCOUNT ARE PERTAINS TO SMT. AM ITA ANKITKUMAR NANSURIA AS PER SUBMISSION MADE BY HER TO ITO WARD 1(4) RAJK OT ON 12/12/2013. ON VERIFICATION OF BANK ACCOUNT NO. 312610110000304 WITH BANK OF INDIA, VADLI CHOCK, UPLETA BRANCH VARIOUS HUGE TRANSACTION OF CHEQUE DEPOSITION TO THE TUNE OF RS. 32.06 LACKS WERE FOUND. THE ASSESSEE BE ING A SALARIED PERSON AND HAVING NO OTHER SOURCE OF INCOME. THUS THESE DEPOSI TIONS HAVE NO RELATIONSHIP WITH THE INCOME EARNED AND DISCLOSED BY THE ASSESS EE AND REPRESENT UNDISCLOSED INCOME OF THE ASSESSEE. ON VERIFICATION OF BANK ACCOUNT NO. 10787825603 HEL D IN HER MAIDEN NAME I.E. MISS. AMITABEN LALJIBHAI MAKADIA (NAME BEFORE MARRIAGE) WITH S.B.I, TOWER ROAD, UPLETA. THE FOLLOWING FACTS EMERGES. CASH DEPOSITION DATE AMOUNT RS. 1. 28/06/2010 RS. 2,00,000/- 2. 29/06/2010 RS, 1,50,000/- THE ABOVE TRANSACTIONS ARE ALSO UNEXPLAINED IN. IN VIEW OF THESE BEING OF THE SAME NATURE AS IN BANK OF INDIA DISCUSSED ABOVE. IN VIEW OF THE ABOVE FACTS I HAVE REASONS TO BELIEV E THAT INCOME CHARGEABLE TO TAX HAS ESCAPED ASSESSMENT WITHIN THE MEANING OF SEC. 1 47 OF THE I.T. ACT AND THIS IS A FIT CASE FOR ISSUING NOTICE U/S. 148 OF THE AC T FOR THE A.Y. 2011-12. THEREFORE, I INTEND TO ASSESS SUCH INCOME AND ALSO ANY OTHER INCOME CHARGEABLE TO TAX WHICH HAS ESCAPED ASSESSMENT AND WHICH COMES TO THE NOTICE SUBSEQUENTLY IN THE COURSE OF PROCEEDINGS UNDER THIS SECTION. TH EREFORE I HEREBY REOPEN THE ASSESSMENT FOR A.Y. 2011-2012. THE NOTICE U/S. 148 OF THE I.T. ACT 1961 IS ISSUED TODAY. SD/- PLACE : RAJKOT (N.J. ACHARYA) DATE : 11/09/2014. INCOME TAX OFFICER, WARD-3 (3), RAJKOT. ITA NO. 298/RJT/2017 SMT AMITA ANKITKUMAR MANSURIA VS. ITO AY : 2011-12 3 4. THE ASSESSEE HAS CHALLENGED THE REOPENING, BUT H ER PRAYER WAS REJECTED BY THE LEARNED ASSESSING OFFICER AS WELL AS BY THE LEARNED FIRST APPELLATE AUTHORITY. 5. BEFORE US, LEARNED COUNSEL FOR THE ASSESSEE CONT ENDED THAT, DURING THE ASSESSMENT PROCEEDINGS OF HER HUSBAND SHRI ANKIT NA NJIBHAI MANSURIYA, IT REVEALED TO THE ASSESSING OFFICER THAT A SUM OF RS. 15 LAKHS IN CASH WERE DEPOSITED IN A JOINT ACCOUNT MAINTAINED BY THREE PE RSONS NAMELY (1) SHRI ANKIT NANJIBHAI MANSURIYA (ASSESSEES HUSBAND), (2) SMT. AMITA ANKIT MANSURIYA (ASSESSEE) AND (3) SMT. GEETABEN NANJIBHAI MANSURIY A (MOTHER-IN-LAW OF THE ASSESSEE). SOURCE OF CASH DEPOSIT WAS ENQUIRED IN THE HANDS OF ASSESSEES HUSBAND AND THEREIN HE STATED THAT CASH WAS DEPOSIT ED BY THE PRESENT ASSESSEE. THE LEARNED ASSESSING OFFICER CALLED FOR NECESSARY DETAILS, BUT WAS SATISFIED ABOUT THE SOURCE AND DID NOT TAKE ANY ACTION IN THE CASE OF SHRI ANKIT NANJIBHAI MANSURIYA. THE RELEVANT FINDINGS OF THE ASSESSING OFFICER, IN THE ASSESSMENT ORDER OF SHRI ANKIT NANJIBHAI MANSURIYA, ARE AS FOL LOWS:- 3. AS PER AIR, DURING THE YEAR UNDER CONSIDERATI ON, THE ASSESSEE HAD DEPOSITED AGGREGATE CASH OF RS.15,00,000/- IN CASH IN SAVING ACCOUNT NO.312610110000304 MAINTAINED WITH BANK OF INDIA. O N VERIFICATION, IT IS ALSO NOTICED THAT THE SAID ACCOUNT WAS NOT REFLECTED IN HIS BOOKS OF ACCOUNT, ACCORDINGLY, A SUMMON DATED 29.11.2013 WAS ISSUED F IXING THE DATE OF HEARING ON 10.12.2013 AND DULY SERVED UPON THE ASSESSEE. DU RING THE RECORDING OF STATEMENT, THE ASSESSEE WAS REQUESTED TO EXPLAIN TH E SOURCE OF CASH DEPOSIT AS APPEARING IN THE ABOVE MENTIONED BANK ACCOUNT. HE H AS CATEGORICALLY AFFIRMED THAT THE JOINT SAVINGS BANK ACCOUNT NO.31261011 0000304 WAS OPENED ALONGWITH THE NAME OF (1) SMT AMITA ANKIT MANSURIYA (WIFE OF THE ASSESSEE), (2) SMT. GEETABEN NANJIBHAI MANSURIYA (MOTHER OF TH E ASSESSEE) AND (3) SHRI ANKIT NANJIBHAI MANSURIYA (THE ASSESSEE). THE SAID A/C IS MAINTAINED BY HIS WIFE SMT. AMITA AND REFLECTED IN HER REGULAR BOOKS OF ACCOUNTS. THE CASH DEPOSITS SO MADE ARE PERTAINS TO HIS WIFE SMT. AMIT A ANKIT MANSURIYA. ACCORDINGLY, THE ASSESSEE WAS REQUESTED TO FURNISH CONFIRMATION ALONGWITH COPY OF RETURN OF INCOME, P&L A/C, BALANCE SHEET ETC OF SMT. AMITA ANKITKUMAR MANSURIA. IN REPLY, SMT. AMITA ANKITKUMAR MANSURIA , VIDE HER LETTER DATED 12.12.2013 HAS CONFIRMED THAT BANK A/C NO.312610110 000304 MAINTAINED WITH BANK OF INDIA, UPLETA BRANCH, UPLETA IS HER A/ C AND HER HUSBAND SHRI ANKIT N. MANSURIYA AND HER MOTHER IN LAW SMT. GITAB EN N. MANSURIYA ARE ITA NO. 298/RJT/2017 SMT AMITA ANKITKUMAR MANSURIA VS. ITO AY : 2011-12 4 JOINT HOLDER. THE TRANSACTIONS DONE IN THE SAID A/C IS DONE BY HER. SHE HAS ALSO FILED COPY OF RETURN OF INCOME, P&L A/C, CAPITAL A/ C, BALANCE SHEET, COPY OF GIFT DEEDS ETC. IN VIEW OF ABOVE, NO ADVERSE INFERENCE I S DRAWN IN THE CASE OF ASSESSEE. 4. THE ASSESSEE IN HIS STATEMENT HAS STATED THAT H E HAS DOING TRANSACTIONS OF SHARES DURING THE YEAR UNDER CONSIDERATION, WHICH IS NOT REFLECTED IN HIS REGULAR BOOKS OF ACCOUNTS, SUBMITTED BY HIM. HE HAS PRODUCE D PROFIT & LOSS A/C, CAPITAL A/C AND BALANCE SHEET OF HIS SHARE TRADING BUSINESS . ON VERIFICATION OF PROFIT & LOSS A/C, IT IS SEEN THAT DURING THE YEAR UNDER CON SIDERATION, THE ASSESSEE INCURRED LOSS OF RS.20,832/-. AS PER BALANCE SHEET, THE ASSESSEE HAVING TOTAL CAPITAL (SHARES STOCK) OF RS.1,34,490/- WHICH IS DI SCLOSED BY THE ASSESSEE AS HIS UNACCOUNTED INVESTMENT INVESTED OUT OF UNDISCLOSED INCOME FOR THE YEAR UNDER CONSIDERATION AND AGREED TO PAY TAX THEREON. ACCORD INGLY, RS,1,34,490/- IS ADDED TO THE TOTAL INCOME OF THE ASSESSEE. FROM THE ABOVE FACTS, IT IS CLEAR THAT THE ASSESSEE HAS SHOWN INACCURATE PARTICULARS OF HIS IN COME. THIS DEFAULT OF THE ASSESSEE ATTRACTS A PENALTY LEVIABLE U/S 271(1)(C) OF THE IT ACT, 1961. I, THEREFORE, PROPOSED TO INITIATE PENALTY PROCEEDINGS U/S 271(L) (C) OF THE IT ACT. 5. SUBJECT TO ABOVE REMARKS, THE TOTAL INCOME OF THE ASSESSEE IS COMPUTED AS UNDER : RS TOTAL INCOME AS PER ORIGINAL RETURN OF INCOME 1, 50,500/- ADD : ADDITION AS DISCUSSED AT PARA. 4 ABOVE. 1, 34,490/- ASSESSED TOTAL INCOME 2,84,990/- ======== 6. ON THE STRENGTH OF THESE FINDINGS, LEARNED COUNS EL FOR THE ASSESSEE CONTENDED THAT THERE IS NO REASON DISCERNIBLE FROM THE ALLEGED REASONS FOR REOPENING SHOWING ESCAPEMENT OF INCOME. LEARNED AS SESSING OFFICER WANTED TO JUST ENQUIRE ABOUT THE DETAILS OF TOTAL DEPOSITS IN THIS JOINT ACCOUNT AMOUNTING TO RS.32.06 LAKHS. THUS, ACCORDING TO TH E LEARNED COUNSEL FOR THE ASSESSEE, THERE IS NO LIVE LINK BETWEEN THE INFORMA TION AVAILABLE WITH THE ASSESSING OFFICER VIS-A-VIS FORMATION OF BELIEF THA T INCOME HAS ESCAPED ASSESSMENT IN THE HANDS OF THE ASSESSEE. 7. LEARNED DEPARTMENTAL REPRESENTATIVE, ON THE OTHE R HAND, RELIED UPON THE ORDERS OF THE REVENUE AUTHORITIES AND CONTENDED THAT THE REASONS AVAILABLE ON PAGE NOS.13 AND 14 OF PAPER-BOOK WOULD INDICATE THAT THE ASSESSING OFFICER WAS HAVING SUFFICIENT INFORMATION. ITA NO. 298/RJT/2017 SMT AMITA ANKITKUMAR MANSURIA VS. ITO AY : 2011-12 5 8. WE HAVE DULY CONSIDERED THE RIVAL CONTENTIONS AN D GONE THROUGH THE RECORD CAREFULLY. A PERUSAL OF THE ASSESSMENT ORDE R OF SHRI ANKITKUMAR NANJIBHAI MANSURIA WOULD REVEAL THAT AIR INFORMATIO N WAS WITH REGARD TO AGGREGATE CASH DEPOSIT OF RS.15 LAKHS. THUS, THE I NQUIRY WAS CONFINED TO SOURCE OF CASH DEPOSIT IN THIS ACCOUNT. THE ASSESSI NG OFFICER HAD NOT DOUBTED THE CHEQUE DEPOSITED IN THIS ACCOUNT. THE SOURCE W AS EXPLAINED BY SHRI ANKITKUMAR NANJIBHAI MANSURIA WITH THE HELP OF COPY OF THE RETURN OF THE ASSESSEE, HER PROFIT & LOSS ACCOUNT AND ALL OTHER D ETAILS. IN THE LIGHT OF ABOVE, IF WE PERUSE THE REASONS FOR REOPENING THE ASSESSME NT, THEN IT WOULD REVEAL THAT IN THE FIRST PARAGRAPH THE ASSESSING OFFICER H AS JUST NARRATED THE BACKGROUND OF FILING OF ASSESSEES RETURN. IN THE SECOND PARAGRAPH, HE HAS MADE A MENTION ABOUT THE INFORMATION REMITTED BY TH E ITO OF SHRI ANKITKUMAR NANJIBHAI MANSURIA, I.E. HUSBAND OF THE ASSESSEE. I N THE THIRD PARAGRAPH, HE HAS MADE A MENTION OF JOINT BANK ACCOUNT REFERRED BY TH E ITO OF SHRI ANKITKUMAR NANJIBHAI MANSURIA AND OBSERVED THAT CHEQUE TO THE TUNE OF RS.32.06 LAKHS WERE FOUND TO BE DEPOSITED. THIS ASPECT HAS ALREAD Y BEEN VERIFIED BY THE ITO OF SHRI ANKITKUMAR NANJIBHAI MANSURIA. SHRI ANKITKU MAR NANJIBHAI MANSURIA IS ONE OF THE JOINT ACCOUNT HOLDERS. NO ADDITION W AS MADE. IT WAS NOT OBSERVED THAT THIS AMOUNT WAS DEPOSITED FROM UNEXPLAINED SOU RCE OF ANY OF THE JOINT ACCOUNT HOLDER. MORE SO, HE HAS NOT DOUBTED THE SOU RCE OF CHEQUE DEPOSITS. HE HAS ONLY DOUBTED THE SOURCE OF CASH DEPOSIT. THERE AFTER, HE MADE A MENTION OF A BANK ACCOUNT WHERE THE DEPOSIT IS ONLY OF RS.3.50 LAKHS. ALL THESE THINGS ARE REFLECTED IN THE COMPUTATION OF INCOME; THE ASSESSE E HAS CASH ON HAND IN ASSESSMENT YEAR 2011-12 AT RS.7,92,488/-. THUS, DE POSIT IN THE BANK ACCOUNT PER SE CANNOT BE CONSTRUED AS ESCAPED INCOME FROM TAXATIO N. SUCH DEPOSITS CAN BE OUT OF EXPLAINED SOURCES. THE ASSESSING OFFICER IN THE REASONS NOWHERE MADE REFERENCE OF ANY INFORMATION WHICH COULD SUGGE ST THAT THESE DEPOSITS OF RS.3.50 LAKHS WERE OUT OF UNEXPLAINED SOURCES. HE HAS JUST VISUALIZED AND ITA NO. 298/RJT/2017 SMT AMITA ANKITKUMAR MANSURIA VS. ITO AY : 2011-12 6 OBSERVED THAT THE INCOME HAS ESCAPED ASSESSMENT. T HE ASSESSEE IS A REGULAR ASSESSEE AND HAS BEEN FILING HER RETURN OF INCOME I N THE PAST ALSO. THEREFORE, ASSESSING OFFICER OUGHT TO HAVE MADE AN ANALYSIS OF ALL THE DETAILS. THE SIMPLE INFORMATION GIVEN BY THE ITO OF SHRI ANKITKUMAR NAN JIBHAI MANSURIA IS NOT SUFFICIENT TO FORM A BELIEF THAT THE INCOME HAS ESC APED ASSESSMENT, BECAUSE ALL THESE DETAILS WERE CONSIDERED IN THE HANDS OF ONE O F THE JOINT ACCOUNT HOLDERS IN A SCRUTINY ASSESSMENT AND NO ADDITION WAS MADE. WE COULD APPRECIATE THE REASONING OF THE ASSESSING OFFICER IF HE HAD ALLEGE D THE CHEQUE AMOUNT DEPOSITED IN THE BANK ACCOUNT REPRESENTS THE CHEQUE OF THE ASSESSEE. IN THE ABOVE SITUATION, WE ARE OF THE VIEW THAT THERE IS N O REASON AVAILABLE WITH THE ASSESSING OFFICER TO REOPEN THE ASSESSMENT OF THE A SSESSEE AND ACCORDINGLY WE QUASH THE REOPENING OF ASSESSMENT. SINCE WE HAVE QUASHED THE REASSESSMENT ORDER ITSELF, THEREFORE, THERE IS NO NEED TO DEAL W ITH THE OTHER ISSUES RAISED BY THE ASSESSEE ON MERITS. ACCORDINGLY, APPEAL OF TH E ASSESSEE IS ALLOWED. 9. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED. ORDER PRONOUNCED IN THE COURT ON 12 TH DECEMBER, 2019 AT AHMEDABAD. SD/- SD/- ( WASEEM AHMED ) (RAJPAL YADAV) ACCOUNTANT MEMBER JUDICIAL MEMBER AHMEDABAD, DATED 12/12/2019 *BT / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. ! / CONCERNED CIT 4. ! ( ) / THE CIT(A) 5. , / DR, ITAT, RAJKOT 6. & / GUARD FILE . / BY ORDER, TRUE COPY / ( DY./ASSTT.REGISTRAR) ' #, / ITAT, RAJKOT ITA NO. 298/RJT/2017 SMT AMITA ANKITKUMAR MANSURIA VS. ITO AY : 2011-12 7 1. DATE OF DICTATION- 11.12.2019 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER 11.12.2019 OTHER MEMBER 12.12.2019. 3. DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR.P. S./P.S. - 12.12.2019 4. DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE D ICTATING MEMBER FOR PRONOUNCEMENT 12.12.2019.. 5. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK12. 12.2019 6. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK . 7. THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT RE GISTRAR FOR SIGNATURE ON THE ORDER 8. DATE OF DESPATCH OF THE ORDER