Smt. Kanakba Karansingh Jadeja, Gandhinagar V. The Income Tax Officer, Ward-2, Gandhinagar

ITA 3151/AHD/2014

• Counselvise Citation: [2018] 126 COUNSELVISE.COM (IT) 5817 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 3 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-03-2018
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: C
• Next Hearing Date: 17-07-2017
• Assessment Year: 2010-2011
• Appeal Filed On: 28-11-2014
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Assessee Lawyers: M K PATEL
• Keywords: Unexplained cash credit; Additional evidence
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD C BENCH BEFORE: SHR I S. S. GODARA , JUDICIAL MEMBER AND SHRI AMARJIT SINGH, ACCOUNTANT MEMBER SMT. KANAKBA KARANSINGH JADEJA, C/859, PARASHWANATH NAGAR, JANTANAGAR, CHANDKHEDA, GANDHINAGAR - 382424 PAN: ADVPJ6783D (APPELLANT) VS THE ITO, WARD - 2. GANDHINAGAR (RESPONDENT) REVENUE BY : S H RI PRASOON KABRA , SR. D . R. ASSESSEE BY: S H RI M.K. PATEL , A.R. DATE OF HEARING : 05 - 02 - 2 018 DATE OF PRONOUNCEMENT : 20 - 03 - 2 018 / ORDER P ER : AMARJIT SINGH, ACCOUNTANT MEMBER : - THIS ASSESSEE S APPEAL FOR A.Y. 2010 - 11 , ARIS ES FROM ORDER OF THE CIT(A) , GANDHINAGAR, AHM EDABAD DATED 28 - 08 - 2014 , IN PROCEEDINGS UNDER SECTION 143(3) OF THE INCOME TAX ACT, 1961; IN SHORT THE ACT . 2. THE ASSESSEE HAS RAISED FOLLOWING GROUNDS OF APPEAL: - I) THAT ON FACTS, AND IN LAW, THE LEARNED CIT (A) HAS GRIEVOUSLY ERRED IN CONFIRMING THE ADDITION OF RS. 3, 37, 200/ - IN RESPECT OF THE DEPOSITS IN THE BANK ACCOUN T. II) THAT ON FACTS, AND IN LAW, THE ENTIRE ADDITION OUGHT TO HAVE BEEN DELET ED IN VIEW OF THE EVIDENCE ON RECORD, AS PRAYED FOR. 3. BRIEF FACT OF THE CASE IS THAT ASSESSEE HAS FILED RETURN OF INCOME ON 30 TH MARCH, 2011 SHOWING TOTAL INCOME OF RS. 1 , 85 , 800/ - . SUBSEQUENTLY, THE CASE I T A NO . 3151 / A H D/20 14 A SSESSMENT YEAR 2010 - 11 I.T.A NO. 3151 /AHD/20 14 A.Y. 2010 - 11 PAGE NO SMT. KANAKBA KARANSINGH JADEJA VS. ITO 2 WAS SELECTED UNDER SCRUTINY BY ISSUING OF NOTIC E U/S. 143(2) OF THE ACT ON 23ST SEP, 2011. ON SCRUTINY , THE ASSESS ING OFFICER HAS NOTICED THAT ASSESSEE HAD MAINTAIN ED FOUR BANK ACCOUNTS DURING THE YEAR CONSIDERATION AS PER DETAIL GIVEN IN PARA 3.1 OF THE ASSESSMENT ORDER. THESE ACCOUNTS WERE MAINT AINED WITH T H E FOLLOWING BANKS: - I) PUNJAB NATIONAL BANK A/C. NO. 37254 II) SIDDHI CO - OP BANK LTD. A/C. NO. 456 III) PUNJAB NATIONAL BANK A/C. NO 3316 IV) SIDDHI CO - OP BANK LTD. A/C. NO 457 THE ASSESSING OFFICER NOTICED THAT THE ASSESSEE HAS DISCLOSED ON LY ONE SAVING BANK ACCOUNT NO. 456 OF SIDDHI CO - OPERATIVE BANK LTD. THE ASSESSEE HAS NOT DISCLOSED OTHE R THREE SAVING BANK ACCOUNTS. T HE ASSESSING OFFICER HAS FURTHER NOTICED THAT AS PER INFORMATION IN HIS POSSESSION , THE ASSESSEE HAD DEPOSITED RS. 13 , 5 2 , 273/ - IN CASH IN S.B. ACCOUNT NO . 37254 WITH PNB. THE ASSESSING OFFICER HAS FOUND THE EXISTENCE OF ABOVE MENTIONED OTHER SAVING BANK ACCOUNTS FROM THE COPY OF PROBATE SUPPLIED BY THE ASSESSEE DURING THE ASSESSMENT PROCEEDINGS. THE DETAIL OF CREDIT ENTRIES FOUND IN THESE SAVING BANK A/C S BY THE ASSESSING OFFICER ARE REP ROD U C ED AS UNDER: - 1. S. B. A/C. NO. 488000100037254 OF PUNJAB NATIONAL BANK: - I. CASH DEPOSIT RS.13,52,273/ - II. CHEQUE ENTRIES RS.7,76,815/ - 2. S. B, NO 456 OF SIDDHI CO - OP. BANK LTD. I. CASH DEPOSIT RS.1,40,200/ - 3. S. B. A/C NO. 457 OF SIDDHI CO - OP. BANK LTD. I. CASH DEPOSIT RS.99,800/ - 4. S.B, A/C NO. 3316 OF PUNJAB NATIONAL BANK I. INTEREST CREDIT RS. 1,39,405/ - DURING T HE COURSE O F ASSESSMENT PROCEEDINGS, THE ASSESSEE HAS EXPLAINED THE AMOUNT OF CREDIT ENTRIES APPEARING IN THE SB BANK A/C NO. 37254 OF PNB AS UNDER: - I.T.A NO. 3151 /AHD/20 14 A.Y. 2010 - 11 PAGE NO SMT. KANAKBA KARANSINGH JADEJA VS. ITO 3 I) THE ASSESSEE HAS EXPLAINED THAT RS. 2,60,000/ - WAS LOAN RECEIVED FROM SHRI RAMJIVAN H. MATHUR. II) LOAN RECEIVED FROM GULABSINH JADEJA RS. 3,50,000/ - III) OUT OF SALE OF SAREES: - RS. 1,66,815 IN RESPECT OF CASH DEPOSIT IN SIDDHI CO - OP. BANK LTD. NO. 456, H E STATED THAT THERE WAS AGRICULTURAL INCOME OF RS. 1 , 40 , 2 0 0/ - .IN RESPECT OF CASH DEPOSIT OF RS.99,800/ WITH S.B. A/C NO.457 THE ASSESSEE EXPLAINED THAT SOURCE OF CASH DEPOSIT WAS FROM AGRICULTURE INVOME AND OTHER INCOME. THE ASSESSEE HAS ALSO EXPLAINED THAT THERE WAS OPENING BALANCE OF CASH OF RS.1,55,310. HOWEVER THE ASSESSING OF FICER HAS STATED THAT THERE WAS NO SUCH CLOSING BALANCE IN THE PRECEDING YEAR. THE ASSESSING OFFICER HAS NOT ACCEPTED THE EXPLANATION OF THE ASSESSEE AND MADE ADDITION OF RS. 23 , 38 , 598/ - ON T H E GROUND THAT ASSESSEE COULD NOT SUBSTANTIATE THE CASH DEPOSIT AND OTHE R DEPOSIT WITH RELEVANT MATERIAL. 4. AGGRIEVED ASSESSEE FILED APPEAL BEFORE T H E LD. CIT(A) . T H E LD. CIT(A) HAS DELETED THE SUBSTANTIAL PART OF THE ADDITION MADE BY THE ASSESSING OFFICER EXCEPT THE ADDITION TO THE EXTENT O F RS. 3,37,200/ - RECEIVED FROM 18 PERSONS ON T H E FOLLOWING REASONS: - I) ALL THE 18 PERSONS ARE ALMOST HAVING ANNUAL INCOME BELOW 50,000/ - II) NONE OF THESE DEPOSITORS ARE ASSESSED TO TAX AND MAINTAIN ING PAN. III) IN SOME OF THE CASES, IT IS FOUND THAT THE DEPOSITORS HAD GIVEN DEPOSIT B ELOW 19,000/ - AFTER OBTAINING DEPOSIT FROM THIRD P ERSON . T HE LD. CIT(A) HAS SUSTAINED THE AFORESAID ADDITION TO T HE EXTENT OF RS. 3,37,200/ - AS THE ASSESSEE FAILED TO EXPLAIN THE GENUINENESS OF THIS AMOUNT DEPOSITED IN THE BANK ACCOUNT. I.T.A NO. 3151 /AHD/20 14 A.Y. 2010 - 11 PAGE NO SMT. KANAKBA KARANSINGH JADEJA VS. ITO 4 5. WE HAVE HEARD BOTH THE SIDES AND PERUSED THE MATERIAL ON RECORD CAREFULLY. THE ASSESSING OFFICER HAS MADE ADDITION OF RS. 23,38,598/ - ON ACCOUNT OF UNEXPLAINED CASH CREDIT U/S. 69A OF THE ACT. DURING THE COURSE OF APPELLATE PROCEEDINGS BEFORE THE LD. CIT(A) , THE ASS ESSSEE HAS FILED ADDITIONAL EVIDENCES ALONG WITH PAPER BOOK. ON THE BASIS OF ADDITIONAL EVIDENCES THE LD. CIT(A) HAS DELETED THE ADDITION EXCEPT CASH DEPOSIT OF RS. 3,37,200/ - WHICH WAS NOT SUBSTANTIATED BY THE ASSESSEE WITH THE RELEVANT SUPPORTING EVIDEN CES . WE OBSERVED THAT ALL THE 18 PERSONS FROM WHOM THE ASSESSEE HAS CLAIMED CASH DEPOSIT S WERE HAVING VERY MEAGER INCOME BELOW 50,000/ - PER ANNUM . THEY ARE NOT ASSESSED TO TAX AND THEY WERE NOT HAVING ANY PAN NO S. IN MOST OF THE CASES TH E SE DEPOSITORS H AVE OBTAINED DEPOSIT S FROM THIRD PARTIES FOR PROVIDING LOANS TO THE ASSESSEE. IT IS DEMONSTRATED FROM THE ABOVE FACTS THAT THE CREDITWORTHINESS OF THE SAID PARTIES WERE NOT PROVED, THEREFORE , WE DO NOT FIND ANY REASON TO INTERFERE IN THE ORDER OF THE LD. CI T(A). THEREFORE, T HE APPEAL OF THE ASSESSEE IS DISMISSED. 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS DISMISSED. ORDER PR ONOUNCED IN THE OPEN C OURT ON 2 0 - 03 - 201 8 SD/ - SD/ - ( S.S. GODARA ) ( AMARJIT SINGH ) JUDICIAL ME MBER ACCOUNTANT MEMBER AHMEDABAD : DATED 20 /03 /2018 / COPY OF ORDER FORWARDED TO: - 1. ASSESSEE 2. REVENUE 3. CONCERNED CIT 4. CIT (A) 5. DR, ITAT, AHMEDABAD 6. GUARD FILE. BY ORDER/ , / ,