Vitthalrao Baburao Pawar, Kolhapur V. Income-tax Officer,

ITA 314/PUN/2015

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 1616 (ITAT-PUNE)
• Duration Of Justice: 1 year(s) 3 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-06-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2011-2012
• Appeal Filed On: 25-03-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AMIT DUA
• Keywords: Income from undisclosed sources
• Section: 143(3); 234B

Judgement Text

- IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH SMC, PUNE , BEFORE MS. SUSHMA CHOWLA, JM . / ITA NO.314/PN/2015 ' ' / ASSESSMENT YEAR : 2011-12 VITTHALRAO BABURAO PAWAR, 262/3, B-WARD, PLOT NO.3, GAJANAN MAHARAJ NAGAR, OPP. NCC GROUND, MANGALWAR PETH, KOLHAPUR. . / APPELLANT PAN: AATPP3299F VS. THE INCOME TAX OFFICER, WARD 1(3), KOLHAPUR . RESPONDENT / APPELLANT BY : SHRI M.K. KULKARNI / RESPONDENT BY : SHRI AMIT DUA DATE OF HEARING : 27.06.2016 / DATE OF PRONOUNCEMENT: 30 .06.2016 / ORDER PER SUSHMA CHOWLA, JM: THIS APPEAL FILED BY THE ASSESSEE IS AGAINST THE OR DER OF CIT(A)-1 & 2, KOLHAPUR, DATED 14.01.2015 RELATING TO ASSESSMENT Y EAR 2011-12 AGAINST ORDER PASSED UNDER SECTION 143(3) OF THE INCOME-TAX ACT, 1961 (IN SHORT THE ACT). 2. THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL:- 1) ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN L AW THE ADDITION MADE BY THE A.O. OF RS.29,01,155/- AND CONFIRMED BY CIT(A) AS INCOME FROM UNDISCLOSED SOURCES IS CONTRARY TO PROVISIONS OF LA W AND ILLEGAL. THE ADDITION BE QUASHED. 2) ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN L AW THE A.O. ARRIVED AT THE FIGURE OF RS.97,10,674/- AS BEING CREDITED TO T HE BANK ACCOUNT IS IMAGINARY FIGURE WORKED OUT BY THE A.O. ON WHIMS AN D CAPRICES. THE BANK ACCOUNT SHOWS TOTAL CREDITS OF RS.25,10,674/- ONLY. THE A.O. CHANGED THE ITA NO.314/PN/2015 VITTHALRAO BABURAO PAWAR 2 FIGURE OF RS.25 TO 97 KEEPING ALL DIGITS INTACT (10 674). THE LD. CIT(A) CONFIRMED THE SAME WITHOUT APPLICATION OF MIND. THE ADDITION OF RS.29,01,155/- BE QUASHED. 3) ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN L AW THE A.O. WAS NOT JUSTIFIED IN MAKING ADDITION OF RS.3,00,000/- OUT O F AGRICULTURAL INCOME OF RS.6,20,000/- HOLDING AS NON-AGRICULTURAL INCOME. T HE A.O. HAS NEITHER APPLIED HER MIND NOR SUPPORTED THE DISALLOWANCE ON ANY COGENT EVIDENCE. THE ADDITION IS NOT SUSTAINABLE. IT BE DELETED. 4) ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN L AW THE LEVY OF INTEREST U/S 234A, 234B AND 234C IS NOT JUSTIFIED. 3. THE ISSUE RAISED VIDE GROUNDS OF APPEAL NO.1 AND 2 IS AGAINST ADDITION OF RS.29,01,155/-. BRIEFLY, IN THE FACTS OF THE CA SE, THE ASSESSEE HAD FILED THE RETURN OF INCOME DECLARING TOTAL INCOME OF RS.5 LAK HS AND AGRICULTURAL INCOME OF RS.6,20,000/-. THE ASSESSEE HAD DECLARED INCOME FR OM LABOUR CHARGES FOR MAKING SILVER UTENSILS. THE ASSESSEE HAD DECLARED THE INCOME ON ESTIMATE BASIS. THE AO NOTED THAT IN THE SAVINGS BANK ACCOU NT WITH BANK OF MAHARASHTRA, RAJARAMPURI, KOLHAPUR THERE IS OPENING BALANCE OF RS.37,67,382/- ON 01-04-2010 AND CLOSING BALANCE OF RS.32,36,819/- ON 31-02-2011. DURING THE YEAR, AS PER THE AO THE ASS ESSEE HAD CREDITED A SUM OF RS.97,10,674/- AND WITHDRAWN A SUM OF RS.30,41,6 87/-. THUS, THERE WAS A CREDIT OF RS.66,68,987/- AND IN CASE THE OPENING BA LANCE OF RS.37,67,832/- WAS SUBTRACTED, THEN NET CREDIT WORKED OUT TO RS.29,01, 155/-. THE ASSESSEE WAS ASKED TO EXPLAIN THE CREDIT IN THE SAVINGS BANK ACC OUNT, WHICH THE ASSESSEE WAS UNABLE TO EXPLAIN. THE AO IN THIS REGARD TREAT ED THE SAID SUM OF RS.29,01,155/- AS INCOME FROM UNDISCLOSED SOURCES. FURTHER, THE ASSESSEE HAD DECLARED AGRICULTURAL INCOME OF RS.6,20,000/- A ND THE AO ACCEPTED AGRICULTURAL INCOME TO THE TUNE OF RS.3,20,000/- AN D THE BALANCE SUM OF RS.3 LAKHS WAS ADDED AS NON-AGRICULTURAL INCOME IN THE H ANDS OF THE ASSESSEE. 4. BEFORE THE CIT(A) THE PLEA OF THE ASSESSEE WAS T HAT THE CLOSING BALANCE AT RS.97,10,674/- HAS BEEN WRONGLY ADOPTED. HOWEVE R, THE CIT(A) DISMISSED THE PLEA OF THE ASSESSEE IN THE ABSENCE OF SUPPORTI NG EVIDENCE. THE ADDITION ITA NO.314/PN/2015 VITTHALRAO BABURAO PAWAR 3 OF RS.29,01,155/- WAS UPHELD. FURTHER, THE ADDITIO N ON ACCOUNT OF NON AGRICULTURAL INCOME WAS ALSO UPHELD BY THE CIT(A). 5. THE ASSESSEE IS IN APPEAL AGAINST BOTH THE ADDIT IONS BY WAY OF GROUNDS OF APPEAL NO.1 AND 2. THE ASSESSEE IS AGGRIEVED BY THE ADDITION OF RS.29,01,155/- BY WAY OF GROUND OF APPEAL NO.1 & 2 AND BY WAY OF GROUND OF APPEAL NO.3 THE ASSESSEE IS AGGRIEVED BY THE ADDITI ON OF RS.3 LAKHS OUT OF AGRICULTURAL INCOME DECLARED. 6. THE LD. AUTHORISED REPRESENTATIVE FOR THE ASSESS EE POINTED OUT THAT THE TOTAL DEPOSITS IN THE BANK ACCOUNT OF THE ASSESSEE WERE RS.25,10,674/-. MY ATTENTION WAS DRAWN TO THE COPY OF THE BANK ACCOUNT STATEMENT WITH BANK OF MAHARASHTRA, RAJARAMPURI, KOLHAPUR BRANCH AND IT WA S ALSO POINTED OUT THAT THE CLOSING BALANCE AS ON 31-03-2011 WAS RS.32,36,919/- . THE LD. AUTHORISED REPRESENTATIVE STATED THAT BOTH THE AO AND THE CIT( A) HAS FAILED TO VERIFY THESE FIGURES AND MADE THE AFORESAID ADDITION IN THE HAND S OF THE ASSESSEE. 7. IN THE TOTALITY OF THE FACTS OF THE CASE, WHERE THE ADDITION HAS BEEN MADE IN THE HANDS OF THE ASSESSEE ON ACCOUNT OF THE DEPO SITS IN SAVINGS BANK ACCOUNT WITH BANK OF MAHARASHTRA, RAJARAMPURI, KOLH APUR BRANCH ON THE SURMISE THAT THERE WERE HIGH CREDITS IN THE BANK AC COUNT AND EVEN THE CLOSING BALANCE WAS ABOUT RS.97,10,674/-. A PERUSAL OF THE BANK STATEMENT FILED BY THE ASSESSEE FOR THE YEAR UNDER CONSIDERATION DOES NOT REFLECT THE SAID BALANCE AT ANY POINT OF TIME OF THE FINANCIAL YEAR AND EVEN TH E CLOSING BALANCE WAS RS.32,36,919/-. THE TOTAL CREDITS IN THE SAID BANK ACCOUNT ARE MUCH LESS AS ASSUMED BY THE AO AND UPHELD BY THE CIT(A). IN THE TOTALITY OF THE FACTS AND CIRCUMSTANCES AND FOLLOWING THE PRINCIPLE OF NATURA L JUSTICE, I DEEM IT FIT TO RESTORE THIS ISSUE TO THE FILE OF THE AO WITH DIREC TIONS TO VERIFY THE FIGURES OF DEPOSITS, CREDITS IN THE SAVINGS BANK ACCOUNT WITH BANK OF MAHARASHTRA, RAJARAMPURI, KOLHAPUR BRANCH. THE AO IS ALSO DIREC TED TO CONFRONT THE ITA NO.314/PN/2015 VITTHALRAO BABURAO PAWAR 4 ASSESSEE WITH ANY EVIDENCE AVAILABLE ON RECORD AND THE ASSESSEE BE ASKED TO RECONCILE THE SAME. REASONABLE OPPORTUNITY OF HEAR ING MAY BE ALLOWED TO THE ASSESSEE IN THIS REGARD. GROUNDS OF APPEAL NO.1 AN D 2 RAISED BY THE ASSESSEE ARE THUS ALLOWED FOR STATISTICAL PURPOSES. 8. WITH REGARD TO GROUND OF APPEAL NO.3 IN VIEW OF THE SMALLNESS OF THE ISSUE AND SINCE GROUNDS OF APPEAL NO.1 & 2 ARE BEIN G SET ASIDE TO THE FILE OF THE AO, THIS ISSUE OF THE ASSESSABILITY OF AGRICULTURAL INCOME IN THE HANDS OF THE ASSESSEE IS ALSO SET ASIDE TO THE AO WHO SHALL CONS IDER THE CLAIM OF THE ASSESSEE AND DECIDE THE ISSUE IN ACCORDANCE WITH LA W. GROUND OF APPEAL NO.3 IS ALSO THUS ALLOWED FOR STATISTICAL PURPOSES. 9. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED ON THIS 30 TH DAY OF JUNE, 2016. SD/- (SUSHMA CHOWLA) / JUDICIAL MEMBER / PUNE ; DATED : 30 TH JUNE, 2016 . SATISH $ %'( )( / COPY OF THE ORDER IS FORWARDED TO : THE APPELLANT; THE RESPONDENT; ' () THE CIT(A)-1 & 2, KOLHAPUR; ' THE CIT-1 / 2, KOLHAPUR % ((), ), , - / DR SMC, ITAT, PUNE; 0 / GUARD FILE. / BY ORDER % ( // TRUE COPY // 23 ( ) / SR. PRIVATE SECRETARY ) , ITAT, PUNE