Suman Devi Nagelia, Jamshepur V. ITO, Jamshepur

ITA 30/RAN/2013

• Counselvise Citation: [2013] 120 COUNSELVISE.COM (IT) 4360 (ITAT-RANCHI)
• Duration Of Justice: 1 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-04-2013
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: DB
• Assessment Year: misc
• Appeal Filed On: 13-03-2013
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: DEEPAK RAUSHAN SR S C
• Keywords: Peak credit
• Section: 68; 69

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, RANCHI CIRCUI T BENCH, RANCHI (BEFORE SHRI P.K.BANSAL, HONBLE A.M.& SHRI D,T. GA RASIA, HONBLE J.M .) I.T.A. NO. 3O/RAN/2013 : ASSESSMENT YEAR 2008-09 SUMAN DEVI NAGELIA, JAMSHEDPUR -VS- I.T .O., WARD-3(1), JAMSHEDPUR (APPELLANT) PAN :AEKPN 3323 D (RESPONDENT) APPELLANT BY : SHRI S.K. PODDAR WITH SHRI M.K.CHO UDHURY, ADVOCATE RESPONDENT BY: SHRI DEEPAK RAUSHAN, SR.S.C. DATE OF CONCLUDING THE HEARING : 30.04.2013 DATE OF PRONOUNCING THE ORDER : 30.04.2013 ORDER PER BENCH : THIS APPEAL HAS BEEN FILED BY THE ASSESSEE AGAINST THE ORDER OF THE CIT(A), JAMSHEDPUR DATED 28.01.2013 FOR THE ASSESSMENT YEAR 2008-09. 2. THE ONLY ISSUE INVOLVED IN GROUND NOS. 1 TO 6 T AKEN BY THE ASSESSEE RELATES TO THE ADDITION OF RS.8,70,255/- CONFIRMED BY THE CIT(A). 3. BRIEF FACTS RELATING TO THIS ISSUE ARE THAT THE ASSESSING OFFICER NOTED THAT THE ASSESSEE HAS FILED THE RETURN UNDER SECTION 44AF SH OWING A TURNOVER OF RS.6,49,245/- AND A NET PROFIT OF RS.1,27,540/-. THE ASSESSING OF FICER NOTED THAT THE ASSESSEE IN THE TWO BANK ACCOUNTS MAINTAINED BY HIM, HAS DEPOSITED CASH OF RS.1,95,000/- AND RS.13,24,500/-. WHEN THE SOURCE WAS ASKED, THE ASSE SSEE EXPLAINED THE SOURCE OF MONEY BEING RECEIVED FROM SUNDRY DEBTORS. THE BALANCE OF THE SUNDRY DEBTORS AS ON 31.03.2007 WAS RS.9,51,500/-. THE ASSESSING OFFICER ASKED FOR THE DETAILS OF THE SUNDRY DEBTORS. THE DETAILS WERE FILED BY THE ASSESSEE. THE ASSESSING OFFICER, OUT OF THE TOTAL CASH DEPOSI TS OF RS.15,19,500/-, REDUCED THE SALE CONSIDERATION SHOWN BY THE ASSESSEE AMOUNTING TO RS .6,49,245/- AND MADE THE ADDITION OF RS.8,70,255/-. THE ASSESSEE WENT IN APPEAL BEFOR E THE CIT(A). THE CIT(A) ALSO CONFIRMED THE ADDITION. THE ASSESSING OFFICER MADE THE ADDITION UNDER SECTION 68 OF THE LT.ACT. THE CIT(A) CONFIRMED THE ADDITION UNDER SEC TION 69 OF THE INCOME TAX ACT. 4. WE HAVE HEARD THE RIVAL SUBMISSIONS AND CAREFUL LY CONSIDERED THE SAME. WE HAVE ALSO GONE THROUGH PAPER BOOK AND THE DOCUMENTS AS R ELIED BY THE ASSESSEE. FROM THE COPY OF THE BANK ACCOUNT, WE NOTED THAT THERE IS A TRANSFER OF THE AMOUNT FROM THE ACCOUNT OF RADHIKA DRUG AGENCY AS WELL AS THEIR PAY MENTS TO RADHIKA DRUG AGENCY TOWARDS THE PURCHASE AND PAYMENT TO SUNDRY CREDITOR S. IT IS NOT THE CASE WHETHER THE BANK BALANCE AS ACCRUED TO THE ASSESSEE AS ON 3 1.0 3.2008, PROFIT EARNED BY THE ASSESSEE SHOULD HAVE EITHER BEEN SPENT BY HIM OR WOULD HAVE BEEN INVESTED SOMEWHERE AGAINST AN INCOME AND CREATION OF AN ASSET OR INCURRING OF EXPENDITURE TOWARDS THE CONSUMPTION IS NECESSARY. THEREFORE, KEEPING IN VIEW THE SURROU NDING CIRCUMSTANCES AND THE FACTS THAT THERE IS NO EVIDENCE FOR CREATION OF ASSET OR INVESTMENT OVER INCURRING OF THE EXPENDITURE, EVERYTHING IS ON RECORD. WE SET ASIDE THE ORDER OF THE CIT(A) AND DIRECT THE ASSESSING OFFICER TO MAKE THE ADDITION IN THE HANDS OF THE ASSESSEE BY WORKING OUT THE PEAK CREDIT IN THESE BANK ACCOUNTS, TO THE EXTENT T HE PEAK CREDIT ARRIVED AT, EXCEEDS THE DRAWING AND THE NET PROFIT RETURNED BY THE ASSESSEE . 5. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS PARTLY ALLOWED. ORDER PRONOUNCED IN THE COURT ON 30TH APRIL, 2013. SD/- SD/- [D.T.GARASIA] [P.K. BANSAL] JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 30TH APRIL, 2013 COPY OF ORDER FORWARDED TO: L SUMAN DEVI NAGELIA, JAMSHEDPUR 2. I.T.O., WARD-3( 1), JAMSHEDPUR 3. C.I.T.(A), 4. THE C.I.T., 5. THE D.R., I.T.A.T., TRUE COPY, BY ORDER, SR. PRIVATE SECRETARY (ON TOUR) ITAT, RANCHI [MST, SR.P S]