Smt. Mrudulaben Himatlal Trivedi, RAJKOT-GUJARAT V. The Income Tax Officer, Ward-3, Surendranagar

ITA 344/RJT/2014

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 1279 (ITAT-RAJKOT)
• Duration Of Justice: 1 year(s) 11 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-05-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 17-05-2016
• Assessment Year: 2010-2011
• Appeal Filed On: 30-05-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: C S ANJARIA
• Assessee Lawyers: DM RINDANI
• Keywords: Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, RAJKOT BENCH, RAJKOT [CONDUCTED THROUGH E - COURT AT AHMEDABAD] BEFORE SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER AND SHRI KUL BHARAT, JUDICIAL MEMBER ./ ITA NO. 349/RJT/2014 / ASSESSMENT YEAR: 2010 - 11 INCOME TAX OFFICER, WARD - 3, SURENDRANAGAR VS SMT. MRUDULABEN HIMATLAL TRIVEDI, AXAYDHAM, AYODHYANAGAR, 80 FEET ROAD, WADHWAN DIST: SURENDRANAGAR PAN : AAQPT 0025 N ./ ITA NO. 344 /RJT/2014 / ASSESSMENT YEAR: 2010 - 11 SMT. MRUDULABEN HIMATLAL TRIVEDI, WADHWAN, SURENDRANAGAR PAN : AAQPT 0025 N VS INCOME TAX OFFICER, WARD - 3, SURENDRANAGAR / (APPELLANT) / (RESPONDENT) ASSESSEE(S) BY : SHRI D.M. RINDANI, CA REVENUE BY : SHRI C.S. ANJARIA, SR. DR. / DATE OF HEARING : 17 / 0 5 /201 6 / DATE OF PRONOUNCEMENT: 18 / 0 5 /201 6 / O R D E R PER KUL BHARAT, JUDICIAL MEMBER : THESE CROSS APPEALS BY THE REVENUE AND THE ASSESSEE ARE DIRECTED AGAINST THE ORDER OF THE COMMISSIONER OF INCOME - T AX (APPEALS) - XVI, AHMEDABAD, DATED 28 .0 3 .201 4 PERTAINING TO ASSESSMENT YEAR 20 10 - 1 1. 2. FIRST, WE TAKE UP THE REVENUES APPEAL IN ITA NO.349/RJT/2014 FOR ASSESSMENT YEAR 2010 - 11. ITA NOS. 344 & 349/RJT/ 2014 SMT. MRUDULABEN HIMATLAL TRIVEDI VS. ITO FOR AY 2010 - 11 2 2.1 AT THE OUTSET, THE LD. COUNSEL FOR THE ASSESSEE POINTED OUT THAT THE TAX EFFECT INVOLVED IN THIS APPEAL IS BELOW THE PRESCRIBED LIMIT AS PER CBDT CIRCULAR NO. 21 OF 2015 DATED 10.12.2015 AND THEREFORE, IN VIEW OF THE BOARDS AFORESAID CIRCULAR, THE PRESENT APPEAL OF THE REVENUE IS NOT MAINTAINABLE. THIS CONTENTION OF THE LD. COUNSEL FOR THE ASSESSEE HAS NOT BEEN CONTROVERTED BY THE LD. DEPARTMENTAL REPRESENTATIVE. THEREFORE, IN VIEW OF THE FACT THAT THE TAX EFFECT INVOLVED IN THE APPEAL OF THE REVENUE IS BELOW THE PRESCRIBED LIMIT AND IN VIEW OF THE CBDT CIRCULAR NO.21 OF 2015 DATED 10.12.2015 , WE HEREBY DISMISS THE APPEAL OF THE REVENUE BEING NOT MAINTAINABLE. 2.2 IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSED. 3. NOW WE TAKE - UP THE ASSESSEES APPEAL IN ITA NO.344/RJT/2014. THE ONLY ISSUE INVOLVED IN THIS APPEAL IS WITH REGARD TO THE CONFIRMATION OF ADDITION OF RS.8,35,000/ - MADE BY THE ASSESSING OFFICER TREATING THE SAME AS UNEXPLAINED DEPOSITS. 3.1 BRIEFLY STATED FACTS ARE THAT THE CASE OF THE ASSESSEE WAS PICKED UP FOR SCRUTINY ASSESSMENT AND THE ASSESSMENT U/S.143(3) OF THE INCOME - TAX ACT, 1961 (HEREINAFTER REFERRED TO AS THE ACT) WAS FRAMED VIDE ORDER DATED 20 . 12 .201 2 . WHILE FRAMING THE ASSESSMENT, THE ASSESSING OFFICER OBSERVED THAT THERE WERE CASH DEPOSITS IN THE BANK ACCOUNTS HELD BY THE ASSESSEE AMOUNTING TO RS.31,72,000/ - . ACCORDINGLY, THE ASSESSING OFFICER ISSUED A SHOW - CAUSE NOTICE CALLING UPON THE ASSESSEE TO EXPLAIN THE SOURCE OF DEPOSITS. IN R ESPONSE THERETO, IT WAS SUBMITTED BEFORE THE ASSESSING OFFICER THAT THE DEPOSITS ARE OUT OF MATURITY OF FUND BELONGING TO THE HUSBAND OF THE ASSESSEE WHO HAD EXPIRED ON 08.12.2006. HOWEVER, THE ASSESSING OFFICER MADE ADDITION ON ACCOUNT OF NON - SUBMISSION OF THE REQUISITE EVIDENCES IN ITA NOS. 344 & 349/RJT/ 2014 SMT. MRUDULABEN HIMATLAL TRIVEDI VS. ITO FOR AY 2010 - 11 3 SUPPORT OF THE CONTENTIONS OF THE ASSESSEE. THE ASSESSEE BEING AGGRIEVED BY THE AFORESAID ADDITION MADE BY THE ASSESSING OFFICER, PREFERRED AN APPEAL BEFORE THE LD. CIT(A) WHO, AFTER CONSIDERING THE SUBMISSIONS, APPLIED THE PE AK THEORY AND RESTRICTED THE ADDITION TO RS.8,35,000/ - . BEING AGGRIEVED, THE ASSESSEE IS NOW IN APPEAL BEFORE THIS TRIBUNAL. 4. THE LD. COUNSEL FOR THE ASSESSEE VEHEMENTLY ARGUED THAT THE AUTHORITIES BELOW WERE NOT JUSTIFIED IN MAKING THE ADDITION. HE REITERATED THE SUBMISSIONS AS WERE MADE BEFORE THE LD. CIT(A). THE LD. COUNSEL SUBMITTED THAT SOME OF THE EVIDENCES WERE PLACED BEFORE THE LD. CIT(A) AND THE SAME WERE NOT CONSIDERED. HE FURTHER SUBMITTED THAT THESE EVIDENCES WERE NOT AVAILABLE WITH THE ASSESSEE AND IF THESE EVIDENCES ARE CONSIDERED, THE STAND OF THE ASSESSEE THAT THE CASH DEPOSITS WERE OUT OF MATURITY OF THE FUND BELONGING TO THE HUSBAND OF THE ASSESSEE WOULD BE PROVED. 4.1 ON THE CONTRARY, LD. SR. DR SUPPORTED THE ORDERS OF THE AUTHORITIES BELOW AND SUBMITTED THAT THE ASSESSEE OUGHT TO HAVE PLACED ALL THE MATERIAL BEFORE THE ASSESSING OFFICER. 5. WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE MATERIAL AVAILABLE ON REC ORD. WE FIND THE STAND OF THE ASSESSEE BEFORE THE ASSESSING OFFICER WAS THAT THE AMOUNTS RECEIVED BY THE ASSESSEE AFTER THE DEATH OF HER HUSBAND WERE DEPOSITED IN THE BANK ACCOUNTS BY WAY OF CASH. IN THIS REGARD, THE ASSESSEE HAS PLACED ON RECORD CERTAIN EVIDENCES WHICH WERE NOT FURNISHED BEFORE THE ASSESSING OFFICER. THEREFORE, AFTER CONSIDERING THE TOTALITY OF THE FACTS, WE DEEM IT PROPER, IN THE INTEREST OF JUSTICE, TO RESTORE THIS ISSUE TO THE FILE OF THE ASSESSING OFFICER FOR DECISION AFRESH, AFTER CO NSIDERING THE EVIDENCES FURNISHED BY THE ASSESSEE AND GIVING THE ITA NOS. 344 & 349/RJT/ 2014 SMT. MRUDULABEN HIMATLAL TRIVEDI VS. ITO FOR AY 2010 - 11 4 SUFFICIENT OPPORTUNITY TO EXPLAIN THE SAME. THUS, THIS GROUND RAISED IN THE ASSESSEES APPEAL IS ALLOWED FOR STATISTICAL PURPOSES. 6. IN THE RESULT, THE APPEAL FILED BY THE REVENUE IS DISM ISSED AS NOT MAINTAINABLE AND THE APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE COURT ON 1 8 T H MAY , 2016 AT AHMEDABAD. SD/ - SD/ - N.K. BILLAIYA (ACCOUNTANT MEMBER) KUL BHARAT ( JUDICIAL MEMBER ) AHMEDABAD; DATED 1 8 / 0 5 /201 6 BIJU T., PS / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. / CONCERNED CIT 4. ( ) / THE CIT(A) 5. , / DR, ITAT, RAJKOT 6. / GUARD FILE . / BY ORDER, TRUE COPY / ( DY./ASSTT.REGISTRAR) , / ITAT, RAJKOT