Appeal details
Counselvise Citation
[2014] 140 COUNSELVISE.COM (IT) 82946 (ITAT-JODHPUR)
Assessee PAN
Bench
Appeal Number
Duration Of Justice
3 month(s) 28 day(s)
Appellant
Respondent
Appeal Type
Income Tax Appeal
Pronouncement Date
05-09-2014
Appeal Filed By
Department
Order Result
Dismissed
Bench Allotted
DB
Next Hearing Date
02-09-2014
Assessment Year
2009-2010
Appeal Filed On
08-05-2014
Judgement Text
IN THE INCOME TAX APPELLATE TRIBUNAL JODHPUR BENCH, JODHPUR BEFORE SHRI HARI OM MARATHA , JUDICIAL MEMBER AND SHRI N.K.SAINI, ACCOUNTANT MEMBER ITA NO. 318 / JU/ 20 1 4 ASSESSMENT YEAR: 200 9 - 1 0 THE INCOME - TAX OFFICER VS. SHRI ANIL PUROHIT WARD 2 ( 2) 4, NAVRATAN COMPLEX UDAIPUR BEDLA ROAD , UDAIPUR PAN NO. AFOPP 2876 G (APPELLANT) (RESPONDENT) A SSESSEE B Y : SHRI D.C. AGARWAL DEPARTMENT B Y : SHRI MAHESH KUMAR , DR DATE OF H EARING : 02 . 0 9 .201 4 DAT E OF PRONOUNCEMENT : 05 . 0 9 . 201 4 ORDER PER HARI OM MARATHA , J .M. TH IS APPEAL BY THE REVENUE IS DIRECTED A GAINST THE ORDER OF THE CIT (A) , UDAIPUR DATED 12 . 0 2 .20 1 4 PERTAINING TO A.Y 20 09 - 10 . 2 2. BRIEFLY STATED, THE FACTS OF THE CASE ARE THAT THE ASS ESSEE - COMPANY DERIVED HIS INCOME FROM SALARY, RENT COMMISSION, ETC. FOR A.Y. 2009 - 10, HE FILED HIS RETURN OF INCOME [ROI] ON 01.02.2010, DECLARING TOTAL INCOME OF RS. 3,37,640/ - . AS AGAINST WHICH THE A.O HAS COMPUTED TOTAL INCOME AT RS. 19, 67,785/ - . IN DOING SO HE HAS ADDED THE FOLLOWING AMOUNTS: 1. INCOME AS PER RETURN FILED 3,37,640/ - 2. ADDITIONS AS ABOVE A) SALARY AND INTEREST RECEIVED FROM PARTNERSHIP FIRM 46,145/ - B) ADDITION IN COMMISSION INCOME 35,000/ - C) U NEXPLAINED CASH DEPOSITED IN B ANK ACCOUNT 15,49,000/ - 16,30,145/ - TOTAL INCOME 19,67,785/ - 2.1 AGGRIEVED, THE ASSESSEE FILED APPEAL AND THE LD. CIT(A) HAS DELETED BOTH THE ADDITIONS. NOW, THE REVENUE IS AGGRIEVED AND HAS FILE D THIS APPEAL BY RAISING THE FOLLOWING GROUNDS: 3 ON THE FACTS AND IN THE PRESENT CIRCUMSTANCES OF THE CASE, THE ID. CIT(A) HAS ERRED IN : 1. DELETING THE ADDITION OF RS. 46,145/ - MADE BY THE A.O ON ACCOUNT OF REMUNERATION AND INTEREST EARNED FROM PARTNE RSHIP BUSINESS IGNORING THE FACTS THAT NO SUCH INCOME WAS DECLARED BY THE ASSESSEE IN THE RETURN OF INCOME IN FORM ITR 4 2. GRANTING RELIEF OF RS. 15,44,355/ - OUT OF ADDITION OF RS. 15,49,000/ - MADE BY THE A.O ON ACCOUNT OF UNEXPLAINED CASH DEPOSIT IN BA NK ACCOUNT WITHOUT APPRECIATING THE FACTS THAT THE A.O HAS RIGHTLY MADE THE ADDITION OF RS. 15,49,000/ - ON ACCOUNT OF UNEXPLAINED CASH DEPOSITED IN BANK ACCOUNT AFTER ALLOWING THE CREDIT OF RS. 7,60,000/ - BEING THE INCOME FROM COMMISSION AND RENT AND WITHD RAWAL FROM BANK AND FIRM . 2.2 . WE HAVE HEARD THE RIVAL SUBMISSIONS AND HAVE CAREFULLY PERUSED THE RELEVANT MATERIAL ON RECORD. BOTH THE PARTIES HAVE REITERATED THEIR EARLIER STAND. THE LD. SR. DR HAS SUPPORTED THE ORDER OF THE A.O WHEREAS THE LD. A.R HA S RELIED ON THE APPELLATE ORDER. 2.3 THE FIRST GROUND OF APPEAL RELATES TO DELETION OF ADDITION OF RS. 46,145/ - MADE BY THE A.O ON ACCOUNT OF REMUNERATION AND INTEREST EARNED FROM PARTNERSHIP BUSINESS. THE FACTS OF THIS GROUND ARE THAT 4 THE ASSESSEE DECLA RED NET INCOME OF RS. 1,65,000/ - UNDER THE HEAD PROFIT AND GAIN FROM BUSINESS. WHEN ASKED, HE BIFURCATED THIS TOTAL INCOME AS UNDER: 1. INCOME FROM PARTNERSHIP BUSINESS STYLED AS SAHIL BUILDERS INTEREST ON CAPITAL 40,590/ - REMUNERATION 06,555/ - 46,145 2. COMMISSION AND OTHERS 1,18,955 TOTAL 1,65,000 2.4 THE A.O FOUND THAT INCOME OF RS. 46,145/ - [RS. 40,590/ - + RS. 5,555] BEING INCOME FROM HIS PARTNERSHIP, HAS NOT BEEN DISCLOSED. THEREFORE, HE HAS ADDED A SUM OF RS. 46,145/ - . THE LD. CIT(A) HAS DELETED THIS ADDITION. AFTER CONSIDERING THE RIVAL STANDS WE ARE CONVINCED THAT THE A.O HAS BROUGHT NO EVIDENCE ON RECORD TO ESTABLISH THAT INTEREST/SALARY INCOME FROM PARTNERSHIP IS NOT INCLUDED IN THE NET INCOME OF RS. 1,6 5,000/ - . THE A.O HAS TAKEN THE RETURNED INCOME AT RS. 3,37,640/ - WHICH UNDENIABLY HAS BEEN DECLARED BY THE ASSESSEE AFTER COMPUTING AS UNDER: 1. INCOME FROM SALARY RS. 1,20,000/ - 2. INCOME FROM HOUSE PROPERTY RENT RECEIVED 1,32,000 5 LESS DEDUCTION U/S.24(A) 39,600 INCOME FROM BUSINESS NET INCOME FROM COMMISSION AND OTHERS AS CLARIFIED BY THE ASSESSEE. THEREFORE, OBVI OUSLY, THE IMPUGNED ADDITION IS BASELESS AND ADHOC ONLY. WE CANNOT ALLOW GROUND NO. 1 AND THEREFORE, DISMISS THE SAME. 2.5 THE FACTS APROPOS GROUND NO. 2 OF THIS APPEAL ARE THAT ON THE BASIS OF AIR INFORMATION THAT THERE IS CASH DEPOSIT OF RS. 23,09,000/ - IN THE SAVINGS BANK ACCOUNT OF THE ASSESSEE WITH THE MEWAR AANCHALIK GRAMIN BANK, THE A .O CALLED FOR EXPLANATION ALONG W I TH THE SOURCE OF THE DEPOSIT. THE ASSESSEE REPLIED VIDE LETTER DATED 20.7.2011 [FILED ON RS.0,92,400/ - INTEREST FROM PARTNERSHIP FIRM SALARY FROM PARTNERSHIP FIRM COMMISSION INCOME GROSS TOTAL LESS: DEDUCTION U/S.80C LIC TUITION FEE DEDUCTION U/S.80D OR SAY U/S 288A 40,590 05,555 1,18.855 RS. 1,65.000/ - RS.3,77,400/ - RS.14,498 RS.12,100 RS.0,26,598/ - RS.0.13,165/ - RS.3,37,637/ - RS. 3,37,640/ - 6 10.10.2011] THAT HIS DEPOSITS ARE FROM THE FOLLOWING SOURCE(S): 1. ADVANCE FROM PROPERTY FOR SALE 12,00,000 2. OLD SAVINGS 6,25,000 3. SALARY RECEIPTS 1,32,000 4. COMMISSION INCOME 1,15,000 5. CASH WITHDRAWN FROM BANK AND REDEPOSIT 2,38,000 2.6 BUT THE A.O WAS NOT FULLY SATISFIED AND HAS TREATED ONLY THE FOLLOWING AMOUNTS AS EXPLAINED: RENTAL INCOME RS. 1,20,000 COMMISSION INCOME RS. 1,65,000 WITHDRAWN FROM BANK RS. 4,30,000 WITHDRAWAL FROM FIRM RS. 45,000 THEREFORE, THE REMAINING DEPOSITS OF RS. [23,09,000 RS. 7,60,000/ - ] HAS BEEN TREATED AS UNEXPLAINED AND HAS BEEN ADDED IN THE TOTAL INCOME. THE LD. CIT(A) HAS DELETED THIS ADDITION. 3. WE HAVE HEARD THE RIVAL SUBMISSIONS AND HAVE CAREFULLY PERUSED THE RELEVANT MATERIAL ON REC ORD. AFTER HEARING BOTH THE SIDES, WE HAVE FOUND THAT THE A.O HAS WRONGLY TREATED 7 THE ADVANCE OF RS. 12 LAKHS RECEIVED AGAINST SALE OF PROPERTY. THE ASSESSEE HAS PRODUCED COPY OF AGREEMENT WHICH CONTAINED NAME AND FULL ADDRESS OF THE PURCHASER. THE A.O D ID NOT MAKE FURTHER ENQUIRIES IN THIS REGARD. A COPY OF AGREEMENT IS ENCLOSED AT PAPER BOOK PAGE 21. THE LETTER DATED 11.7.2011 FILED BY THE ASSESSEE CLEARLY STATES THAT HE GOT ADVANCE AMOUNT FROM SMT. SUMITRA BHATT AGAINST SALE OF HIS PROPERTY. SHE HAS CONFIRMED THIS ADVANCE PAYMENT. THEREFORE, THE LD. CIT(A) VIDE HIS ORDER AT PAGE 21 PAGE 2 HAS CORRECTLY DELETED THIS ADDITION. THE ASSESSEE ALSO FILED A CASH FLOW STATEMENT BEFORE THE A.O WITH THE LETTER DATED 11.12.2011, EXPLAINING THE CASH DEPOSITS. THE LD. CIT(A) HAS CORRECTLY ARRIVED AT THE CONCLUSION THAT T HE SOURCE OF DEPOSIT TO THE EXTENT OF RS. 23,06,855/ - STANDS EXPLAINED AS UNDER: OPENING CASH BALANCE 2,29,000/ - COMMISSION INCOME 1,18,855/ - RENT 1,32,000/ - SALARY 1,10,000/ - OUT OF CASH WITHDRAWALS 4,72,000/ - WITHDRAWALS FROM THE FIRM 0,45,000/ - ADVANCE AGAINST PLOT 12,00,000/ - 23,06,855/ - 8 EXCEPT FOR THE ADVANCE RECEIPTS AGAINST THE SALE OF PROPERTY AND THE OPENING BALANCE AVAILABLE NO OTHER DEPOSIT COULD BE DISPUTED BY THE LD. D.R. WE ARE IN AGREEMENT WITH THE LD. CIT(A) THAT T HE OPENING BALANCE FOR THIS YEAR IS THE CLOSING BALANCE OF THE LAST YEAR IN WHICH THE ASSESSEE IS ALSO ASSESSED TO TAX. MOREOVER, THE ADVANCE ALSO FULLY STANDS EXPLAINED WITH THE HEL P OF COPY OF AGREEMENT TO THE CONFIRMATION OF THE VENDOR. NO CONTRARY EVIDENCE COULD BE BROUGHT ON RECORD BY THE REVENUE TO DISPROVE THE ASSESSEES EXPLANATION. THEREFORE, WE DO NOT FIND ANY INFIRMITY IN THIS FINDING OF THE LD. CIT(A) AND CONFIRM THE IMP UGNED DELETION AND DISMISS GROUND NO. (2) OF THIS APPEAL. 4 . IN THE RESU LT, THE APPEAL OF THE REVENUE IN ITA NO. 318 /JU/2014 STANDS DISMISSED. ORDER PRON OUNCED IN THE COURT ON 5 TH SEPTEMBER , 2014. SD/ - SD/ - (N.K.SAINI) [HARI OM MARATHA] ACCOUNTANT MEMBER JUDICIAL MEM B ER DATED : 05 TH SEPTEMBER , 201 4 VL/ - 9 COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT BY ORDER 4. THE CIT(A) 5. THE DR SENIOR PRIVATE SECRETARY ITAT, JODHPUR
