BHAMATI PRADIP JOSHI, MUMBAI V. ITO 5(2)(3), MUMBAI

ITA 3256/MUM/2016

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 0633 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-05-2017
• Appeal Filed By: Assessee
• Bench Allotted: SMC
• Assessment Year: 2011-2012
• Appeal Filed On: 09-05-2016
• Court: TRIBUNAL
• Department Lawyers: M C OMI NINGSHEN
• Assessee Lawyers: B V JHAVERI

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL H , BENCH MUMBAI BEFORE SHRI R.C.SHARMA, AM & SHRI SANDEEP GOSAIN , JM ITA NO. 3256 / MUM/20 1 6 ( ASSESSMENT YEAR : 2011 - 12 ) SMT. BHAMATI PRADIP JOSHI A - 1002, RAJ RESIDENCY NO.2, NEAR JAIN DERASAR, MAHAVIR NAGAR, KANDIVALI (W), MUMBAI 400 067 VS. ITO, 15(2)(3), MUMBAI (NOW ITO - 33 (1)(2) - 400051 PAN/GIR NO. AFRPJ4397K APPELLANT ) .. RESPONDENT ) ASSESSEE BY SHRI B.V.JHAVERI REVENUE BY SHRI M.C.OMI NINGSHEN DATE OF HEARING 02 / 05 /201 7 DATE OF PRONOUNCEME NT 25 / 05 /201 7 / O R D E R PER R.C.SHARMA (A.M) : THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF CIT(A) - 45, MUMBAI DATED 15/02/2016 FOR THE ASSESSMENT YEAR 2011 - 12 IN THE MATTER OF ORDER PASSED U/S.143 (3) R.W.S 147 OF THE IT ACT. 2. IN THIS APPEAL, ASSESSEE IS AGGRIEVED FOR ADDITION OF RS.18,43,000/ - BEING CASH DEPOSITED INTO JOINT BANK ACCOUNT OF ASSESSEE WITH HER FATHER, MOTHER, BROTHER AND SISTER - IN - LAW. 3. FACTS IN BRIEF ARE THAT T HE ASSESSEE IS AN INDIVIDUAL WORKING WITH M/S. J.P. MORGAN SERVICES PVT. LTD. THE ASSESSEE HAD FILED HER RETURN OF INCOME FOR A. Y. 2011 - 12 DECLARI NG TOTAL INCOME OF RS.10,57,210/ - . THE INCOME - TAX OFFICER WHILE COMPLETING THE ASSESSMENT U/S.143(3) OF THE ACT ITA NO. 3256/MUM/2016 SMT. BHAMATI PRADIP JOSHI 2 ADDED RS.33,81, 600/ - TO THE INCOME OF THE ASSESSEE BEING THE CASH DEPOSITS MADE INTO THE JOINT BANK ACCOUNT OF THE ASSESSEE AND FOUR OTHERS WITH INDIAN BANK BEARING S.B. ACCOUNT NO.417495808. THIS ADDITION WA S REDUCED BY THE COMMISS IONER (APPEALS) TO RS.18,43,000/ - AG AIN ST WHICH THE ASSESSEE IS IN FURTHER A PPEAL. 4. WE HAVE CONSIDERED RIVAL CONTENTIONS AND CAREFULLY GONE THROUGH THE ORDERS OF THE AUTHORITIES BELOW. WE HAVE VERIFIED THE BANK SUMMARY, COPY OF BANK PASSBOOK FOR THE A.Y.2009 - 10, 2011 - 12 AS PLACED ON RECORD AS WELL AS REMAND REPORT OF AO DATED 21/12/2015 ALONGWITH LETTER OF JCIT DATED 23/12/2015. FROM THE RECORD WE FOUND THAT IN THE COURSE OF THE ASSESSMENT PROCEEDINGS, THE ASSESSEE HAD SUBMITTED THAT THE S.B. ACCOUNT BEARING NO.417495808'WITH INDIAN BANK WAS A JOINT ACCOUNT WITH HER FATHER, .SHRI PRADEEP JOSHI, WITH HER MOTHER, MRS. REKHA JOSHI, WITH HER BROTHER, SHRI MILIND JOSHI AND WITH HER SISTER - IN - LAW, MRS. MITI JOSHI, WHICH WAS OPERATED BY ANYONE OF THEM OR SURVIVOR AND IN FACT IT WAS OPERATED BY ALL THE ACCOUNT HOLDERS. IT WAS FURTHER EXPLAINED THAT THE AGGREGATE SUM OF RS.18,50,000 / - WAS CONTRIBUTED BY THE FOLLOWING JOINT HOLDERS: NAME AMOUNT (RS.) PAN MR. PRADEEP JOSHI (FATHER) 4,00,000 AABPJ 5519 Q MR. MILIND JOSHI (BROTHER) 5,00,000 AEIPJ 4798 Q MRS.REKHA JOSHI (MOTHER) 2,50,000 AOSPJ 3035 J MRS.MITI JOSHI (SISTER - IN - LAW) 4,50,000 AOZPJ 5159 A MRS.BHAMATI JOSHI (ASSESSEE) 2,50,000 AFRPJ 4399 K ITA NO. 3256/MUM/2016 SMT. BHAMATI PRADIP JOSHI 3 5. THE BALANCE AMOUNT WAS DEPOSITED OUT OF THE AMOUNT WITHDRAWN FROM THE SAME BANK ACCOUNT PRIOR TO THE DEPOSITS. THE AFORESAID EXPLANATION OF THE ASSESSEE WAS NOT ACCEPTED BY THE AO AND HENCE HE MADE ADDITION OF RS.33,81,600 / - TO THE INCOME OF THE ASSESSEE BEING THE FIRST HOLDER OF THE JO INT ACCOUNT WITH INDIAN BANK. 6. THE CIT(A) CALLED REMAND REPORT WITH REGARD TO THE AMOUNT DEPOSITED IN THE BANK ACCOUNT. THE AO IN ITS REMAND REPORT OBSERVED THAT SOURCE OF CASH DEPOSIT OF RS.18,43,600/ - WAS OUT OF WITHDRAWALS OF RS.20,00,000/ - FROM THE B ANK ACCOUNT, HOWEVER, THE AO DID NOT AGREE WITH THE INITIAL CASH DEPOSIT OF RS.15,00,000/ - , ACCORDINGLY HE SUGGESTED FOR ADDITION OF RS.15,00,000/ - . 7. AS PER OUR CONSIDERED VIEW, SINCE IN THE REMAND REPORT AO HAS ACCEPTED DEPOSIT OF RS.18,43,600/ - BY THE ASSESSEE AND OTHER FAMILY MEMBERS HAVING JOINT ACCOUNT HOLDER S WERE OUT OF THE PREVIOUS WITHDRAWALS MADE IN THE MONTH OF JUNE 2010 FROM THE VERY SAME BANK ACCOUNT, ACCORDINGLY CIT(A) WAS NOT JUSTIFIED IN CONFIRMING THE ADDITION OF RS.18,43,600/ - ON THE GRO UND OF PEAK AMOUNT OF THE DEPOSIT. 8. FROM THE RECORD, WE FOUND THAT IN CASE OF THE ASSESSEE THE FAMILY WANTED TO MAKE INVESTMENT IN IMMOVABLE PROPERTY IN THEIR NATIVE PLACE AND ACCORDINGLY A SUM OF RS.15,00,000 / - WAS COLLECTED FROM ALL THE MEMBERS OF THE FAMILY AND THE SAME WAS TAKEN BY MR. PRADEEP JOSHI (FATHER) TO BHUJ FOR STRIKING A DEAL FOR PURCHASE OF AN IMMOVABLE PROPERTY. ITA NO. 3256/MUM/2016 SMT. BHAMATI PRADIP JOSHI 4 9. AS THE DEAL COULD NOT GO THROUGH, MR. PRADEEP JOSHI DEPOSITED THE SAID SUM OF RS.15,00, 000/ - INTO INDIAN BANK ACCOUNT AT BHUJ AND JAMNAGAR ON THE FOLLOWING DATES: 25 TH JUNE, 2010 RS.5,00,0001 - AT BHUJ 25 TH JUNE, 2010 RS.5,00,0001 - AT JAMNAGAR 30TH JUNE, 2010 RS.5,00,0001 - AT JAMNAGAR 10. A SUM OF RS.3,00,000 / - WERE TRANSFERRED FROM THE ACCOUNT OF THE ASSESSEE INTO THIS ACCOUNT WITH INDIAN BANK ON 26TH JUNE, 2010. 11. SO FAR AS DEPOSIT IN THE BANK ACCOUNT IS CONCERNED, WE FOUND THAT ASSESSEE AND OTHER FAMILY MEMBERS HAVE DEPOSITED IN THEIR BANK ACCOUNTS OUT OF THEIR CURRENT INCOME AS WELL AS OUT OF TH E CASH WITHDRAWAL FROM THE VERY SAME BANK ACCOUNT. THE DETAILS OF WHICH ARE AS UNDER: - AS PER THE AO'S INSTRUCTIONS GROSS TOTAL INCOME (AS PER ITR FILED) CASH DRAWINGS (AS PER BANK STATEMENT) CREDIT CARD PAYMENTS, ELECTRICITY AND TELEPHONE CASH DEPOSIT MAD E IN A/C.NO.417495808 TAX ASSESSEES ARE LISTED BELOW MILIND JOSHI A.Y.2009 - 10 RS.15,37,507 RS.4,65,110 83,500 A.Y.2010 - 11 RS.23,54,586 RS.2,03,000 30,990 A.Y.2011 - 12 RS.27,79,050 RS.1,67,500 1,38,270 RS.63,61,917 RS .8,35,610 RS.5,00,000 PRADEEP JOSHI A.Y.2009 - 10 RS.3,34,580 RS.2,11,000 NIL A.Y.2010 - 11 RS.3,62,515 S.2,91,00 NIL A.Y.2011 - 12 RS.5,92,080 RS.3,69,850 NIL 12,89,175 RS.8,71,850 RS.4,00,000 BHAMATI JOSHI A.Y.2009 - 10 RS.7,32 ,863 RS.31,500 RS.2,50,000 A.Y.2010 - 11 RS.9,73,939 RS.55,000 A.Y.2011 - 12 RS.11,57,213 RS.25,500 RS.1,19,500 ITA NO. 3256/MUM/2016 SMT. BHAMATI PRADIP JOSHI 5 NIKESH KABANI A.Y.2009 - 10 RS.7,27,395 RS.6,93,415 A.Y.2010 - 11 RS.7,56,220 RS.5,33,049 A.Y.2011 - 12 RS.12,91,821 RS .7,57,000 27,75,436 RS.19,83,464 MITI JOSHI A.Y.2009 - 10 RS.1,50,000 RS.1,50,000 A.Y.2010 - 11 RS.1,56,000 RS.1,56,000 A.Y.2011 - 12 RS.1,68,000 RS.1,68,000 RS.4,74,000 RS.4,74,000 RS.4,50,000 12. WE ALSO FOUND THAT OUT O F THE AFORESAID CASH AVAILABLE WITH THE ASSESSEE AND THE MEMBERS OF HER FAMILY, THE SUM OF RS.15,00,000 / - WAS GIVEN TO THE SAID MR. PRADEEP JOSHI (FATHER) FOR MAKING INVESTMENT IN THE IMMOVABLE PROPERTY AT THE NATIVE PLACE. THE SAID AMOUNTS WERE DEPOSITED BY HIM AT BHUJ AND JAMNAGAR INTO THE INDIAN BANK ACCOUNT WHICH WERE WITHDRAWN BY THE MEMBERS OF THE ASSESSEE'S FAMILY AND THE SAID WITHDRAWALS WERE ONCE AGAIN UTILISED ALONG WITH OTHER FUNDS AVAILABLE WITH THEM IN CASH FOR MAKING DEPOSIT OF RS.18,81,600 / - IN THE MONTHS OF OCTOBER AND NOVEMBER, 2010. THIS IS THE FINDING OF FACTS RECORDED B Y THE A.O. IN HIS REMAND REPORT. THUS THE ADDITION OF RS.18,43,000/ - CONFIRMED BY THE COMMISSIONER (APPEALS) HAS NO LEGS TO STAND . 13. IN THE RESULT APPEAL FILED BY THE ASS ESSEE IS ALLOWED. O RDER PRONOUNCED IN THE OPEN COURT ON THIS 25 / 05 /2017 S D/ - ( SANDEEP GOSAIN ) S D/ - ( R.C.SHARMA ) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI ; DATED 25 / 05 /201 7 KARUNA SR. PS ITA NO. 3256/MUM/2016 SMT. BHAMATI PRADIP JOSHI 6 COPY OF THE ORDER FORWARDED TO : BY ORDER, ( ASSTT. REGISTRAR) ITAT, MUMBAI 1. THE APPELLANT 2. THE RESPONDENT. 3. THE CIT(A), MUMBAI. 4. CIT 5. DR, ITAT, MUMBAI 6. GUARD FILE. //TRUE COPY//