Smt. Chhavi Kharb, Bhopal V. ITO, Mirzapur

ITA 356/ALLD/2013

• Counselvise Citation: 35620714 RSA 2013
• Duration Of Justice: 1 year(s) 8 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-09-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2005-2006
• Appeal Filed On: 23-12-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: UMESH PATHAK
• Assessee Lawyers: B B GOENKA
• Keywords: Unexplained investment
• Section: 10

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL ALLAHABAD BENCH ALLAHABAD BEFORE SHRI P.K. BANSAL , ACCOUNTANT MEMBER I.T.A. NO. 3 56 /ALLD/201 3 ASSESSMENT YEAR: 200 5 - 0 6 SMT. CHHAVI KHARB VS. ITO RANGE - III(1) E - 1/44, AREA COLONY MIRZAPUR BHOPAL, MA DHYA PRADESH PAN: AEGPK 4385N (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI B.B. GOENKA , AR REVENUE BY : SHRI UMESH PATHAK , DR. DATE OF HEARING: 11 .08.2015 ORDER PER : P.K. BANSAL , A CCOUNTANT MEMBER THIS APPEAL HAS BEEN FILED BY THE ASSESSEE AGAINST THE ORDER OF CIT(A) , ALLAHABAD DATED 1 1 .0 9 . 201 3 FOR ASSESSMENT YEAR 2005 - 06 . 2. GROUND NO.1 IS GENERAL IN NATURE THEREFORE DOES NOT REQUIRE ANY ADJUDICATION. 3. GROUND NO.2 RELATES TO SUSTAINING THE ADDITION OF RS.10,01,000/ - BY THE CIT(A) AS UNEXPLAINED INVESTMENT IN FRANKLIN TEMPLETON MUTUAL FUND ON 09.02.2005. THE ASSESSING OFFICER NOTED THAT THE ASSESSEE MADE AN INVESTMENT OF 2 RS.10,01,000/ - ON 09.02.2005 . W HEN ASKED FOR , THE ASSESSEE REPLIED THAT THE SAID INVESTMENT WAS MADE ON ACCOUNT OF HIS FATHER , SHRI OM PRAKASH CHAUDHARY BEARING ACCOUNT NO.0621000004967 OF HDFC BANK TO WHICH SHE IS ALSO A CO - HOLDER . S HE ASKED TO SUBMIT THE CERTIFICATE FROM THE BANK. THE ASSESSING OFF ICER MADE THE ADDITION IN THE INCOME OF THE ASSESSEE AS IN HIS VIEW THE ASSESSMENT MADE WERE NOT SHOWN BY THE ASSESSEE OR HIS FATHER IN THEIR BALANCE SHEET. 4. WHEN THE MATTER WENT BEFORE THE CIT(A), THE ASSESSEE AGAIN SUBMITTED THE COPY OF THE BANK ACCOU NT IN WHICH THE INVESTMENT S ARE MADE OUT OF JOINT ACCOUNT. HE ALSO SUBMITTED THE BALANCE SHEET OF HER FATHER IN WHICH FRANKLIN TEMPLETON MUTUAL FUND WERE SHOWN AT RS.25,01,000/ - . THE CIT(A) CONFIRM S THE ORDER OF THE ASSESSING OFFICER AS THE INVESTMENT MADE BY THE ASSESSEE AND ASSESSEE HAS GIVEN HER PERMANENT ACCOUNT NUMBER. 5. WE HEARD THE RIVAL SUBMISSION AND CAREFULLY CONSIDER ED THE SAME ALONG WITH THE ORDER OF THE TAX AUTHORITIES BELOW . W E NOTED THAT THE INVESTMENT HAS BEEN MADE OUT OF THE JOINT ACCOUNT OF ASSESSEES FATHER, MOTHER AND ASSESSEE HAS BEARING THE ACCOUNT NO. 0621000004967 . T HE ACCOUNT WAS OPENED ON 20.01.2001 . F ROM THE COPY OF THE BANK ACCOUNT , IT IS APPARENT THAT THE INVESTMENT HAS 3 BEEN MADE OUT OF THE SAID BANK ACCOUNT. THE SOURCE OF THES E INVESTMENTS IS ALSO APPARENT THAT PRIOR TO THE INVESTMENT THERE IS CREDIT FOR THE ENCASHMENT OF THE MUTUAL FUNDS. WE ALSO NOTED FROM THE BALANCE SHEET OF THE FATHER OF THE ASSESSEE WHICH IS APPEARING AT PAGE 10 AS ON 31 ST MARCH, 2005 HE WAS HAVING THE MU TUAL FUND AT RS.65,01,000/ - . AS ON 31 ST MARCH, 2001 IN THE BANK ACCOUNT ALSO A BALANCE OF RS.23,65,015/ - WAS THERE AND THE INVESTMENT IN FRANKLIN TEMPLETON MUTUAL FUND WAS TO THE EXTENT OF RS.25,01,000/ - . IT APPEARS THAT NEITHER THE ASSESSING OFFICER NOR T HE CIT(A) HAS PROPERLY APPRECIATED THE FACTS OF THE CASE . A T PAGE 12 , T HE ASSESSEE S FATHER HAS DULY SHOWN FRANKLIN TEMPLETON MUTUAL FUND. WE ALSO NOTED FROM PAGE 13 THAT THE ASSESSEE HAS ALSO GIVEN THE DETAILS OF INVESTMENT OF RS.25,01,000/ - WHICH CONSIST S OF RS.15,00,000/ - BEING INVESTED ON 20 .0 1 .2005 OUT OF ACCOUNT NO.44661 WHILE IMPUGNED SUM OF RS.10,01,000/ - HAS BEEN INVESTED ON 09.02.2005 OUT OF HDFC BANK ACCOUNT NO. 4967. IT APPEARS THAT THE ASSESSING OFFICER OR CIT(A) UNNECESSARY AVOIDED TO APPRECIA TE THE FACTS CORRECTLY WITH THE INTENTION TO MAKE THE ADDITION AND HARASS THE ASSESSEE. IT IS A CLEAR CUT CASE OF IMPOSING THE C OST ON THE DEPARTMENT BECAUSE PRE STIC IOUS MAN HOURS OF THE GOVERNMENT MACHINERY ARE UNNECESSARY BEING WASTED BUT SINCE THE ASSES SEE COUNSEL HAS NOT DEMANDED ANY COST , THEREFORE , WE ARE NOT ALLOWING ANY COST TO THE ASSESSEE BUT WE MAY WARN THE ASSESSING OFFICER 4 THAT HE MUST APPRECIATE THE FACT CORRECTLY AND SHOULD NOT MAKE UNNECESSARY ADDITION JUST TO HARASS THE ASSESSEE. WE, THEREF ORE, DELETE THE ADDITION . T HUS , THE GROUND NO.2 STAND ALLOWED. 6. SO FAR THE THIRD GROUND IS CONCERNED , AFTER HEARING THE RIVAL SUBMISSION WE DIRECT THE ASSESSING OFFICER TO ALLOW THE CREDIT TO THE ASSESSEE IN RESPECT OF THE TDS OF RS.12,000/ - AND THAT OF THE SELF ASSESSMENT TAX BY THE ASSESSEE AFTER VERIFYING THE SAME ON THE BASIS OF THE COPY OF THE CHALLAN SUBMITTED BY THE ASSESSEE. THUS , THIS GROUND IS STATISTICALLY ALLOWED. THE NEXT GROUND RELATE S TO THE CHARGING OF INTEREST U/S.234A FOR 81 MONTHS. 7 . SO FAR THE FOURTH GROUND CH ARGING OF INTEREST IS CONCERNED, WE DO AGREE WITH THE LEARNED AR THAT IN VIEW OF THE PROVISION OF SECTION 234A(3) THE INTEREST SHALL BE CHARGEABLE ONLY IN RESPECT OF THE PERIOD OF DELAY IN FILING THE RETURN SINCE THE FACT WHEN THE ASSESSEE FILED THE RETURN IS NOT AVAILABLE ON THE FILE. WE, RESTORE THIS ISSUE TO THE FILE OF THE ASSESSING OFFICER WITH A DIRECTION THAT THE ASSESSING OFFICER WILL CHARGE THE INTEREST U/S.234A IF AT ALL LEVIABLE UPTO WHICH THE ASSESSEE HAS DELAYED IN FILING OF THE INCOME TAX RETURN. THUS, THIS GROUND IS STATISTICALLY ALLOWED. 5 8. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS STATISTICALLY ALLOWED. SD/ - ( P.K. BANSAL ) ACCOUNTANT MEMBER DATED: 1 / 9 /201 5 PRABHAT KUMAR KESARWANI, SR.P.S. COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR