I.T.O., Ranchi V. Smt. Reba Tayel, Ranchi

ITA 299/RAN/2014

• Counselvise Citation: [2015] 134 COUNSELVISE.COM (IT) 0314 (ITAT-RANCHI)
• Duration Of Justice: 1 year(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-11-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2006-2007
• Appeal Filed On: 21-10-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: CHOUDHARY ORAON
• Keywords: Unexplained investment
• Section: 144

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL RANCHI CIRCUIT BENCH, RANCHI BEFORE SHRI N.S. SAINI, HONBLE ACCOUNTANT MEMBER AND SHRI GEORGE MATHAN, HONBLE JUDICIAL MEMBER ITA NO. 299/RAN/2014 (ASST. YEAR : 2006-07) ITO, WARD-2(4), RANCHI. VS. SMT. REBA TAYEL, MATRON, DENTAL DEPARTMENT, CCL HOSPITAL, GANDHINAGAR, RANCHI. PAN NO. AAGPT 0158 G (APPELLANT) (RESPONDENT) ASSESSEE BY : MS. AMRITA SINHA WITH SHRI M.K. CHOUDHARY ADV. DEPARTMENT BY : SHRI CHOUDHARY ORAON - DR DATE OF HEARING : 05/11/2015. DATE OF PRONOUNCEMENT : 05/11/2015. O R D E R PER N.S. SAINI, ACCOUNTANT MEMBER THIS IS AN APPEAL FILED BY THE REVENUE AGAINST THE ORDER OF COMMISSIONER OF INCOME TAX (APPEALS), RANCHI, DATED 12/08/2014. 2. THE SOLE GROUND OF APPEAL TAKEN BY THE REVENUE IN THIS APPEAL IS THAT THE COMMISSIONER OF INCOME TAX (APPEALS) IS NO T JUSTIFIED IN DELETING THE ADDITION MADE ON ACCOUNT OF UNEXPLAINE D INVESTMENT IN ICICI MUTUAL FUND AND UNEXPLAINED INVESTMENT IN BAN K ACCOUNT INCLUDING CASH AND CHEQUE TOTALLING TO RS. 19,18,31 2/-. 3 . WE HAVE HEARD RIVAL SUBMISSIONS AND PERUSED THE O RDERS OF THE LOWER AUTHORITIES AND THE MATERIALS AVAILABLE ON RE CORD. 2 ITA NO. 299/RAN/2014 4. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSING OFF ICER COMPLETED THE EX-PARTE ASSESSMENT UNDER SECTION 144 DUE TO NO N-COMPLIANCE OF STATUTORY NOTICES BY AUTHORISED REPRESENTATIVE OF T HE ASSESSEE. DURING THE COURSE OF ASSESSMENT PROCEEDINGS, THE ASSESSING OFFICER ALSO OBSERVED THAT THE ASSESSEE HAD MADE CERTAIN DEPOSIT S IN BANK ACCOUNT THROUGH CASH AND CHEQUE, TOTALLING TO RS. 1,48,212/ -. THE ASSESSING OFFICER OBSERVED THAT THE ASSESSEE HAD MADE INVESTM ENT IN ICICI PRUDENTIAL MUTUAL FUND AMOUNTING TO RS. 19,18,312/- . SINCE THE ASSESSEE HAD NOT COMPLIED WITH THE DEPARTMENTAL NOT ICES AND SHOW- CAUSE ISSUED BY THE ASSESSING OFFICER, HE ADDED RS. 20,66,524/- AS UNEXPLAINED INVESTMENT. 5. ON APPEAL, COMMISSIONER OF INCOME TAX (APPEALS) CA LLED FOR REMAND REPORT AND THE ASSESSING OFFICER SUBMITTED H IS REMAND REPORT VIDE LETTER F.NO.CIT(A)/RAN/REMAND REPORT/2013-14/5 07, DATED 19/23. 12.2013 AND THE ASSESSING OFFICER HAS SENT THE REMA ND REPORT VIDE LETTER F.NO. ITO/W-2(4)/REMAND REPORT/2014-15/892, DATED 22/05/ 2014. 6 . THE COMMISSIONER OF INCOME TAX (APPEALS) AFTER CO NSIDERING THE REMAND REPORT OBSERVED THAT ON PERUSAL OF THE DETAI LS OF STATEMENT OF MUTUAL FUND MAINTAINED WITH FAIRDEAL SECURITIES AND STATEMENT OF MUTUAL FUND OF ICICI PRUDENTIAL, IT IS EVIDENT THAT THE ASSESSEE HAS MADE INVESTMENT AS FOLLOWS IN ICICI PRUDENTIAL:- SL.NO. NAME OF FUND DATE OF PURCHASE AMOUNT (RS.) 1. ICICI PRUDENTIAL 13.07.2004 25,000/- 2. ICICI PRUDENTIAL 23.07.2003 26,000/- 3. ICICI PRUDENTIAL 18.08.2003 20,000/- 4. ICICI PRUDENTIAL 15.09.2003 30,000/- 5. ICICI PRUDENTIAL 16.09.2003 19,000/- 6. ICICI PRUDENTIAL 16.09.2003 11,000/- 5. ICICI PRUDENTIAL 24.06.2003 41,000/- 6. ICICI PRUDENTIAL 16.09.2003 11,000/- 7. ICICI PRUDENTIAL 14.11.2003 25,000/- 8. ICICI PRUDENTIAL 14.11.2003 15,000/- 9. ICICI PRUDENTIAL 07.05.2004 15,000/- 3 ITA NO. 299/RAN/2014 10. ICICI PRUDENTIAL 24.06.2003 25,000/- 11. ICICI PRUDENTIAL 21.08.2003 30,000/- 12. ICICI PRUDENTIAL 20.01.2004 10,000/- 13. ICICI PRUDENTIAL 07.05.2004 25,000/- 14. ICICI PRUDENTIAL 13.07.2004 15,000/- 15. ICICI PRUDENTIAL 25.05.2003 20,000/- 16. ICICI PRUDENTIAL 18.08.2003 20,000/- 17. ICICI PRUDENTIAL 30.07.2003 12,000/- 18. ICICI PRUDENTIAL 15.09.2003 30,000/- THE COMMISSIONER OF INCOME TAX (APPEALS) OBSERVED THAT ON PERUSAL OF THE ABOVE, IT IS NOTED THAT THE ASSESSEE HAD NOT MADE ANY FRESH INVESTMENTS DURING THE FINANCIAL YEAR 2005-06 RELEVANT TO ASSESSMENT YEAR 2006-07 AND HAS ONLY MADE TRANSFER OF FUND FROM ONE SCHEME TO ANOTHER SCHEME SUCH AS SWITCH IN AND SWIT CH OUT. THE SAME FACTS HAVE BEEN VERIFIED BY THE ASSESSING OFFICER I N HIS REMAND REPORT. ACCORDINGLY, SINCE NO FRESH INVESTMENT IS MADE BY T HE ASSESSEE, THE ADDITION MADE ON THIS GROUND CANNOT BE SUSTAINED IN APPEAL AND IS DIRECTED TO BE DELETED. AS REGARDS ADDITION OF RS. 1,48,212/-, IT IS NOTED THAT THE ASSESSEE HAS MADE CASH DEPOSIT OF RS . 9,000/- ON 05/10/2005. THE ASSESSEE HAS ALSO DEPOSITED CHEQUE S OF RS. 12,000/- & RS. 7,500/- ON 05/10/2005, RS. 75,000/-, RS. 4,73 7/-, RS. 32,475/- & RS. 15,000/- ON 05/10/2005, 28/10/2005, 26/11/2005 AND 21/03/2006 RESPECTIVELY WHICH ARE RELATED WITH MATURITY OF KIS AN VIKASH PATRA, NSC MATURITY AND LIC MONEY BACK POLICY. ACCORDINGLY, IT IS SEEN THAT THE INVESTMENTS MADE BY THE ASSESSEE ARE EXPLAINED AND THERE IS NO REASON TO SUSTAIN THE ADDITION MADE BY THE ASSESSING OFFIC ER WHICH IS DIRECTED TO BE DELETED. HE, THEREFORE ALLOWED THE APPEAL O F THE ASSESSEE. 7 . BEFORE US, THE DEPARTMENTAL REPRESENTATIVE SUPPOR TED THE ORDER OF THE ASSESSING OFFICER. 8 . ON THE OTHER HAND, AUTHORIZED REPRESENTATIVE OF T HE ASSESSEE SUPPORTED THE ORDER OF THE COMMISSIONER OF INCOME T AX (APPEALS). 4 ITA NO. 299/RAN/2014 9. WE FIND THAT NO MATERIAL HAS BEEN BROUGHT ON RECORD BY THE DEPARTMENTAL REPRESENTATIVE TO CONTROVERT THE FINDI NG OF THE COMMISSIONER OF INCOME TAX (APPEALS) THAT NO FRESH INVESTMENT HAS BEEN MADE BY THE ASSESSEE DURING THE ASSESSMENT YEA R 2006-07 WHICH IS THE YEAR UNDER APPEAL. NO MATERIAL HAS ALSO BEE N BROUGHT ON RECORD TO CONTROVERT THE FINDING OF THE COMMISSIONER OF IN COME TAX (APPEALS) THAT THE DEPOSITS MADE AGGREGATING TO RS. 1,48,212/ - ARE OUT OF MATURITY PROCEEDS OF KISAN VIKASH PATRA, NSC MATURI TY AND LIC MONEY BACK POLICY. IN ABSENCE OF ANY MATERIAL BEING BROU GHT ON RECORD, WE DO NOT FIND ANY GOOD AND JUSTIFIABLE REASON TO INTERFE RE WITH THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS) WHICH IS C ONFIRMED AND THE GROUND OF APPEAL OF THE REVENUE IS DISMISSED. 10 . IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSE D. ORDER PRONOUNCED IN THE COURT AT THE CLOSE OF THE H EARING ON THURSDAY, THE 5 TH DAY OF NOVEMBER, 2015 AT RANCHI. SD/- SD/- (GEORGE MATHAN) (N.S.SAINI) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED : 05 TH NOVEMBER, 2015. VR/- 5 ITA NO. 299/RAN/2014 COPY TO: 1. THE ASSESSEE. 2. THE REVENUE. 3. THE CIT 4. THE CIT(A) 5. THE D.R. 6. GUARD FILE. BY ORDER ASSISTANT REGISTRAR I.T.A.T., RANCHI