The ITO, Ward-6(2), Ahmedabad V. Smt. Kalpana Hitendra Patel, Ahmedabad

ITA 3327/AHD/2010

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 76880 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 6 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-07-2014
• Appeal Filed By: Department
• Bench Allotted: D
• Next Hearing Date: 02-07-2014
• Assessment Year: 2006-2007
• Appeal Filed On: 16-12-2010
• Court: TRIBUNAL
• Department Lawyers: K C MATHEWS
• Keywords: Income from undisclosed sources
• Section: 68

Judgement Text

, , , , IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH, AHMEDABAD , , , , 0 00 0 0 00 0 ' ' ' ' , , , , #$ #$ #$ #$ # % # % # % # % BEFORE SHRI MUKUL KR. SHRAWAT, JUDICIAL MEMBER AND SHRI N.S. SAINI, ACCOUNTANT MEMBER ITA NO. 3327/AHD/2010 ASSESSMENT YEAR 2006-07 INCOME TAX OFFICER, WARD-6(2), AHMEDABAD VS SMT. KALPANA HITENDRA PATEL, A-30, NEW NIKITA PARK, NR. SUN- N-STEP CLUB, MEMNAGAR, AHMEDABAD. PAN: ACTPP7588B &'/ APPELLANT )*&' / RESPONDENT REVENUE BY : SHRI K.C. MATHEWS, SR. DR ASSESSEE(S) BY : SHRI ANIL KSHATRIYA, AR + , $/ // / DATE OF HEARING : 02/07/2014 -./ , $ / DATE OF PRONOUNCEMENT: 11/07/2014 #0 #0 #0 #0/ // / O R D E R PER SHRI N.S. SAINI, ACCOUNTANT MEMBER: THIS IS AN APPEAL FILED BY THE REVENUE AGAINST TH E ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS)-XI, AHMEDABAD DATED 15.10.2011. 2. GROUND NO. 1 OF THE APPEAL IS DIRECTED AGAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS) DELETING THE A DDITION OF RS 13,86,000/- MADE ON ACCOUNT OF UNEXPLAINED CASH DEP OSIT IN THE BANK. ITA NO. 3327/AHD/2010 SMT. KALPANA H. PATEL, AHMEDABAD AY 2006-07 - 2 - 3. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESS ING OFFICER FOUND FROM THE BANK STATEMENT OF BANK OF BARODA, BHADRA B RANCH THAT THE ASSESSEE HAS DEPOSITED CASH OF RS 13,86,000/- DURIN G THE YEAR UNDER CONSIDERATION. THE ASSESSEE CLAIMED THAT THE SOURC E OF THE CASH DEPOSITED IN THE BANK WAS THE AMOUNT WITHDRAWN FROM THE SAME BANK AT REGULAR INTERVALS WHICH WAS RE-DEPOSITED. IT WAS ALSO SUBM ITTED THAT THE AMOUNT WAS WITHDRAWN TO REPAY A LOAN TAKEN FROM KALOL NAGR IK SAHKARI BANK LIMITED WHICH WAS TO BE REPAID. IT WAS SUBMITTED BY THE AS SESSEE THAT SINCE SHE HAS INCURRED LOSS IN BUSINESS DEALS IN THE PAST, TH E LOAN COULD NOT BE REPAID AND WANTED TO SETTLE WITH THE BANK AT A LOWER AMOUN T. THEREFORE, SHE CARRIED THE CASH ALONGWITH HERSELF FOR NEGOTIATION TO BRING AN END TO THE PROBLEM. 4. THE ASSESSING OFFICER DID NOT ACCEPT THE EXPLAN ATION OF THE ASSESSEE ON THE GROUND THAT THE CLAIM OF THE ASSESS EE THAT SHE HAS WITHDRAWN CASH FOR DEPOSIT WITH KALOL NAGRIK SAHKAR I BANK LIMITED FOR REPAYMENT OF LOAN WAS NOT CORRECT AS IN THE BALANCE SHEET OF M/S. VERB AGENCY, A PROPRIETORSHIP CONCERN OF THE ASSESSEE, T HE ASSESSEE HAS SHOWN LOAN FROM KALOL NAGRIK SAHKARI BANK LIMITED AGAINST HYPOTHECATION OF STOCK, BUT IN THE BALANCE SHEET THE STOCK WAS SHOWN AT NIL . THEREFORE, THE ASSESSING OFFICER HELD THAT THE SOURCE OF CASH DEPO SITED IN THE BANK WAS NOT SATISFACTORILY EXPLAINED BY THE ASSESSEE AND ADDED THE SAME TO THE INCOME OF THE ASSESSEE AS UNACCOUNTED INCOME. 5. ON APPEAL, THE COMMISSIONER OF INCOME TAX (APPE ALS) HELD THAT THE OBSERVATIONS OF THE ASSESSING OFFICER ARE FACTU ALLY INCORRECT AND WERE ARRIVED AT AFTER IGNORING THE DETAILED SUBMISSIONS OF THE ASSESSEE MADE VIDE HER LETTERS 07.11.2008 AND 16.12.2008. THE COMMISS IONER OF INCOME TAX (APPEALS) OBSERVED THAT A CHART SHOWING WITHDRAWALS IN CASH AND CASH BALANCE AS PER BOOKS AND THE DEPOSITS IN CASH AS FU RNISHED BY THE ASSESSEE WAS AS UNDER: ITA NO. 3327/AHD/2010 SMT. KALPANA H. PATEL, AHMEDABAD AY 2006-07 - 3 - STATEMENT OF CASH WITHDRAWALS AND DEPOSITED WITH BA NK DURING THE YEAR 2005-06 SR NO. DATE OF WITHDRAWA LS FROM BANK WITHDRA WAL AMOUNT RS SOURCE DATE OF DEPOSIT IN BANK DEPOSIT AMOUNT RS CASH BALAN CE AS ON DATE IN CASH BOOK 1 29/12/2005 205000 BOB BHADRA SUPER SAVINGS A/C 0 2 29/12/2005 20000 BOB BHADRA SUPER SAVINGS A/C 0 205434 3 31/12/2005 75000 BOB BHADRA SUPER SAVINGS A/C 0 280434 4 0 1/3/2006 193000 87434 5 1/4/2006 155000 BOB BHADRA SUPER SAVINGS A/C 0 242434 6 1/7/2006 30000 BOB BHADRA SUPER SAVINGS A/C 0 272434 7 0 1/9/2006 30000 242434 8 16/01/2006 20000 BOB BHADRA SUPER SAVINGS A/C 0 243434 9 19/01/2006 230000 BOB BHADRA SUPER SAVINGS A/C 0 473434 10 0 2/2/2006 230000 243434 11 2/4/2006 150000 BOB BHADRA SUPER SAVINGS A/C 0 12 2/6/2006 5000 BOB BHADRA SUPER SAVINGS A/C 0 13 2/6/2006 27000 BOB BHADRA SUPER SAVINGS A/C 0 14 2/6/2006 120000 BOB BHADRA SUPER SAVINGS A/C 0 15 2/6/2006 32000 BOB BHADRA SUPER SAVINGS A/C 0 545434 16 2/23/2006 150000 23/02/2006 10000 685434 17 0 24/02/2006 160000 525434 18 25/02/2006 270000 BOB BHADRA SUPER SAVINGS A/C 0 795434 19 3/2/2006 15000 780434 20 3/3/2006 7500 BOB BHADRA SUPER SAVINGS A/C 0 787934 21 0 16/03/2006 100000 687934 22 0 17/03/2006 115000 572934 23 18/03/2006 48000 BOB BHADRA SUPER SAVINGS A/C 0 572934 24 20/03/2006 138000 BOB BHADRA SUPER SAVINGS A/C 0 710934 25 23/03/2006 35000 BOB BHADRA SUPER SAVINGS A/C 0 745934 26 30/03/2006 4000 30/03/2006 120000 27 0 30/03/2006 150000 28 0 30/03/2006 138000 341934 29 31/03/2006 60000 31/03/2006 90000 272934 TOTAL 1781500 TOTAL 1351000 ITA NO. 3327/AHD/2010 SMT. KALPANA H. PATEL, AHMEDABAD AY 2006-07 - 4 - THE COMMISSIONER OF INCOME TAX (APPEALS) OBSERVED T HAT ON GOING THROUGH THE SAME, IT WILL BE SEEN THAT THE IMPUGNED DEPOSIT S IN CASH WERE OUT OF WITHDRAWALS IN CASH FROM THE SAME BANK ACCOUNT. TH US, IN HIS VIEW, THE ASSESSEE EXPLAINED THE SOURCE OF DEPOSITS IN THE BA NK OF BARODA, BHADRA BRANCH AND THEREFORE, DELETED THE ADDITION OF RS 13 ,86,000/-. 6. THE DEPARTMENTAL REPRESENTATIVE SUPPORTED THE O RDER OF THE ASSESSING OFFICER WHEREAS THE AUTHORIZED REPRESENTA TIVE OF THE ASSESSEE SUPPORTED THE ORDER OF THE COMMISSIONER OF INCOME T AX (APPEALS). 7. AFTER CONSIDERING THE RIVAL SUBMISSIONS AND PER USING THE ORDERS OF LOWER AUTHORITIES AND MATERIAL AVAILABLE ON RECO RD, WE FIND THAT THE UNDISPUTED FACTS OF THE CASE ARE THAT DURING THE YE AR UNDER CONSIDERATION, THE ASSESSEE MADE CASH DEPOSITS IN BANK OF BARODA, BHADRA BRANCH OF RS 13,86,000/- AT DIFFERENT INTERVALS DURING THE YEAR UNDER CONSIDERATION. WHEN REQUIRED BY THE ASSESSING OFFICER TO EXPLAIN T HE SOURCE OF THE DEPOSITS THE ASSESSEE EXPLAINED THAT THE DEPOSIT WAS OUT OF EARLIER WITHDRAWALS FROM THE VERY SAME BANK ACCOUNT. FURTHER, ON A QUERY BY THE ASSESSING OFFICER FOR THE REASON FOR WITHDRAWAL OF CASH, IT WAS EXPLA INED THAT THE SAME WAS WITHDRAWN TO REPAY THE LOAN TAKEN FROM KALOL NAGRIK SAHKARI BANK LIMITED BY M/S. VERB AGENCY OF WHICH THE ASSESSEE WAS A PRO PRIETOR. THE ASSESSING OFFICER FOUND THAT THE ASSESSEE HAD TAKEN LOAN FROM KALOL NAGRIK SAHKARI BANK LIMITED AGAINST HYPOTHECATION OF STOCK BUT IN THE BALANCE SHEET THE STOCK SHOWN WAS NIL. THEREFORE, HE DID NOT ACCEPT THIS EXPLANATION OF THE ASSESSEE. WE FIND THAT THE COMMISSIONER OF INCOME TAX (APPEALS) HAS GIVEN A CHART IN HIS ORDER WHICH IS REPRODUCED ABOV E IN THE ORDER FROM WHICH HE ARRIVED AT THE CONCLUSION THAT THE DEPOSIT IN CA SH IN THE BANK ACCOUNT OF BANK OF BARODA, BHADRA BRANCH WAS OUT OF EARLIER WI THDRAWALS MADE BY THE ASSESSEE FROM THE VERY SAME BANK. NO MATERIAL WAS BROUGHT ON RECORD BY THE REVENUE TO SHOW THAT THE ABOVE FINDING OF THE C OMMISSIONER OF INCOME ITA NO. 3327/AHD/2010 SMT. KALPANA H. PATEL, AHMEDABAD AY 2006-07 - 5 - TAX (APPEALS) WAS NOT CORRECT. FURTHER, NO MATERIA L WAS ALSO BROUGHT ON RECORD BY REVENUE TO SHOW THAT THE ASSESSEE COULD N OT HAVE MADE DEPOSIT OF RS 13,86,000/- IN BANK OF BARODA, BHADRA BRANCH OUT OF EARLIER WITHDRAWALS MADE FROM THE SAID BANK ACCOUNT. HENCE , WE FIND NO INFIRMITY IN THE ORDER OF THE COMMISSIONER OF INCOME TAX (APP EALS) WHICH IS CONFIRMED AND THE GROUND OF APPEAL OF THE REVENUE I S DISMISSED. 8. GROUND NO. 2 OF THE APPEAL IS DIRECTED AGAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS) DELETING THE A DDITION OF RS 5,25,000/- ON ACCOUNT OF UNEXPLAINED CHEQUE DEPOSIT IN BANK. 9. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESS ING OFFICER OBSERVED THAT THE ASSESSEE HAS DEPOSITED A CHEQUE O F RS 5,25,000/- IN THE SAVINGS BANK ACCOUNT WITH BANK OF BARODA, BHADRA BR ANCH. THE ASSESSEE CLAIMED THAT THE SAID AMOUNT WAS RECEIVED FROM SHRI HITENDRA C. PATEL TOWARDS OUTSTANDING AMOUNT RECEIVABLE FROM HIM. TH E ASSESSING OFFICER OBSERVED THAT ON VERIFICATION OF THE BALANCE SHEET OF M/S. VERB AGENCY, IT IS SEEN THAT THE ASSESSEE WAS SHOWING OUTSTANDING BALA NCE OF RS 5,62,240/- FROM SHRI HITENDRA C. PATEL. HE ALSO OBSERVED THAT NO CONFIRMATION OR COPY OF ACCOUNT EITHER FROM THE BOOKS OF THE ASSESSEE OR FROM THAT OF SHRI HITENDRA C. PATEL WERE SUBMITTED BEFORE HIM. THERE FORE, HE HELD THAT RS 5,25,000/- DEPOSITED BY CHEQUE IN THE BANK OF BAROD A ACCOUNT WAS THE UNACCOUNTED INCOME OF THE ASSESSEE AND MADE ADDITIO N OF THE SAME U/S. 68 OF THE ACT. 10. ON APPEAL, THE COMMISSIONER OF INCOME TAX (APP EALS) HELD THAT THE CONTENTION OF THE ASSESSEE IS THAT THE IMPUGNED AMOUNT WAS RECEIVED BY CHEQUE FROM HER HUSBAND WHICH WAS DEPOSITED IN THE BANK AND THE ASSESSING OFFICER IGNORED THE SUBMISSIONS/EVIDENCES FURNISHED VIDE HER LETTER DATED 16.12.2008 AND THAT THE ASSESSING OFFI CER HAS NOT MADE OUT ANY ITA NO. 3327/AHD/2010 SMT. KALPANA H. PATEL, AHMEDABAD AY 2006-07 - 6 - CASE THAT THE IMPUGNED AMOUNT WAS NOT RECEIVED FROM HER HUSBAND. THEREFORE, HE DELETED THE ADDITION OF RS 5,25,000/- . 11. THE DEPARTMENTAL REPRESENTATIVE SUPPORTED THE ORDER OF THE ASSESSING OFFICER WHEREAS THE AUTHORIZED REPRESENTA TIVE OF THE ASSESSEE SUPPORTED THE ORDER OF THE COMMISSIONER OF INCOME T AX (APPEALS). 12. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSE D THE ORDERS OF LOWER AUTHORITIES AND MATERIAL AVAILABLE ON RECORD. IN THE INSTANT CASE, THE ASSESSEE HAS MADE A DEPOSIT BY CHEQUE OF RS 5,25,00 0/- IN HER SAVINGS BANK ACCOUNT WITH BANK OF BARODA, BHADRA BRANCH. W HEN REQUIRED TO EXPLAIN THE SOURCE OF CHEQUE DEPOSIT, IT WAS EXPLAI NED BY THE ASSESSEE THAT THE SAME WAS RECEIVED FROM SHRI HITENDRA C. PATEL T OWARDS OUTSTANDING AMOUNT RECEIVABLE FROM HIM. THE ASSESSING OFFICER FOUND FROM THE BALANCE SHEET OF M/S. VERB AGENCY, OF WHICH THE ASSESSEE IS PROPRIETOR, THAT AN AMOUNT OF RS 5,62,240/- WAS SHOWN AS OUTSTANDING RE CEIVABLE FROM SHRI HITENDRA C. PATEL. THEREFORE, HE ADDED RS 5,25,000 /- BY INVOKING THE PROVISIONS OF SECTION 68 OF THE ACT. BEFORE THE CO MMISSIONER OF INCOME TAX (APPEALS), THE ASSESSEE SUBMITTED THAT VIDE HER LET TER DATED 16.12.2008, SHE HAD INFORMED THE ASSESSING OFFICER THAT THE AMO UNT OF RS 5,25,000/- WAS RECEIVED THROUGH CHEQUE FROM HER HUSBAND. THE ASSESSING OFFICER HAS IGNORED THIS SUBMISSION OF THE ASSESSEE AND MADE AD DITION OF THE IMPUGNED AMOUNT TO THE INCOME OF THE ASSESSEE. THE COMMISSI ONER OF INCOME TAX (APPEALS) OBSERVING THAT THE ASSESSING OFFICER HAS NOT STATED THAT THE SUM OF RS 5,25,000/- RECEIVED BY CHEQUE BY THE ASSESSEE WAS NOT RECEIVED FROM HER HUSBAND, DELETED THE ADDITION. WE FIND THAT TH E ASSESSEE HAS CLAIMED THAT VIDE HER LETTER DATED 16.12.2008 SHE HAS FILED THE FOLLOWING DOCUMENTS BEFORE THE ASSESSING OFFICER AT THE TIME OF ASSESSM ENT PROCEEDINGS:- (1) COPY OF LEDGER A/C OF HITENDRA C.PATEL FROM THE BOOKS OF VERB AGENCY FOR THE F.Y. 2005-06. ITA NO. 3327/AHD/2010 SMT. KALPANA H. PATEL, AHMEDABAD AY 2006-07 - 7 - (2) COPY OF LEDGER A/C OF KALPANA HITENDRA PATEL FR OM THE BOOKS OF HITENDRA CHIMANBHAI PATEL FOR THE F.Y. 200 5-06. (3) COPY OF LEDGER A/C OF VERB AGENCY FROM THE BOOK S OF HITENDRA CHIMANBHAI PATEL FOR THE F.Y. 2005-06 (4) COPY OF LEDGER A/C OF KALPANA HITENDRA PATEL FR OM THE BOOKS OF HITENDRA CHIMANBHAI PATEL FOR THE F.Y. 200 5-06 (5) COPY OF LEDGER A/C OF VERB AGENCY FROM THE BOOK S OF HITENDRA CHIMANBHAI PATEL FOR THE F.Y. 2006-07. (6) COPY OF LEDGER A/C OF H'RTENDRA CHIMANBHAI PATE L FROM THE BOOKS OF KALPANA HITENDRA PATEL FOR THE F.Y. 2005-0 6. (7) COPY OF LEDGER A/C OF HITENDRA CHIMANBHAI PATEL FROM THE BOOKS OF VERB AGENCY FOR THE F.Y. 2005-06. (8) COPY OF LEDGER A/C OF HITENDRA CHIMANBHAI PATEL FROM THE BOOKS OF KALPANA HITENDRA PATEL FOR THE F.Y. 2006-0 7. (9) COPY OF LEDGER A/C OF HITENDRA CHIMANBHAI PATEL FROM THE BOOKS OF VERB AGENCY FOR THE F.Y. 2006-07. (10) PROFIT & LOSS ACCOUNT STATEMENT OF HITENDRA CH IMANBHAI PATEL FOR THE YEAR ENDED ON 31 ST MARCH 2006. (11) BALANCE SHEET AS AT 31 ST MARCH 2006 OF HITENDRA CHIMANBHAI PATEL. (12) INCOME TAX RETURN FOR THE A.Y. 2006-07 OF HITE NDRA CHIMANBHAI PATEL ALONG WITH STATEMENT OF TOTAL INCO ME. THE ASSESSEE HAS ALSO FILED COPIES OF THE SAME BEFO RE US AT PAGE NOS. 52 TO 68 OF THE PAPER BOOK FILED BY THE ASSESSEE. THE AS SESSEE HAS ALSO CLAIMED THAT THESE DOCUMENTS WERE FILED BEFORE THE COMMISSI ONER OF INCOME TAX (APPEALS) AS WELL. WE FIND THAT THE COMMISSIONER O F INCOME TAX (APPEALS) AFTER APPRECIATING THESE EVIDENCES ARRIVED AT THE C ONCLUSION THAT THE ADDITION OF RS 5,25,000/- MADE BY THE ASSESSING OFFICER WAS NOT JUSTIFIED AS THE SOURCE OF THE SAME WAS SATISFACTORILY EXPLAINED BY THE ASSESSEE BY FILING THE RELATED DOCUMENTS EVIDENCING THAT THE SAME WAS RECE IVED FROM SHRI HITENDRA C. PATEL, THE HUSBAND OF THE ASSESSEE. NO MATERIAL HAS BEEN BROUGHT ON RECORD BY THE REVENUE TO CONTROVERT THE FINDING OF THE ITA NO. 3327/AHD/2010 SMT. KALPANA H. PATEL, AHMEDABAD AY 2006-07 - 8 - COMMISSIONER OF INCOME TAX (APPEALS). THEREFORE, W E FIND NO GOOD REASON TO INTERFERE WITH THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS) WHICH IS CONFIRMED AND THE GROUND OF APPEAL OF THE REVENUE IS DISMISSED. 13. IN THE RESULT, THE APPEAL OF THE REVENUE IS DI SMISSED. ORDER PRONOUNCED IN THE COURT ON FRIDAY, THE 11 TH OF JULY, 2014 AT AHMEDABAD. SD/- SD/- (MUKUL KR. SHRAWAT) JUDICIAL MEMBER ( N.S. SAINI) ACCOUNTANT MEMBER AHMEDABAD; DATED 11/07/2014 GHANSHYAM MAURYA, SR. P.S. TRUE COPY #0 , )1 2#1/ #0 , )1 2#1/ #0 , )1 2#1/ #0 , )1 2#1// COPY OF THE ORDER FORWARDED TO : 1. &' / THE APPELLANT 2. )*&' / THE RESPONDENT. 3. 3 / CONCERNED CIT 4. 3() / THE CIT(A)-III, AHMEDABAD 5. 167 ) , , / DR, ITAT, AHMEDABAD 6. 78 9+ / GUARD FILE. #0 #0 #0 #0 / BY ORDER, : :: :/ // / ; ; ; ; ( DY./ASSTT.REGISTRAR) , , , , / ITAT, AHMEDABAD