Pallem Nisamthi, Vijayawada V. ITO, Ward-2(2), Vijayawada

ITA 359/VIZ/2017

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 3679 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 1 year(s) 2 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-08-2018
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2010-2011
• Appeal Filed On: 05-06-2017
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: K C DAS
• Keywords: Unexplained cash credit
• Section: 148

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM BENCH, VISAKHAPATNAM BEFORE SHRI V. DURGA RAO , HONBLE JUDICIAL MEMBER & SHRI D.S. SUNDER SINGH , HONBLE ACCOUNTANT MEMBER ITA NO. 359 / VIZ /201 7 (ASST. YEAR : 20 1 0 - 11 ) MS. PALLEM NISAMTHI, 41 - 1/5 - 1A, GOWTHAMI NAGAR, KRISHNA LANKA, VIJAYAWADA V S . ITO, WARD - 2(2), VIJAYAWADA. PAN NO. ATQPP 2614 L (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI C. SUBRAHMANYAM, FC A. DEPARTMENT BY : SHRI K.C. DAS, SR. DR DATE OF HEARING : 20 / 0 7 /201 8 . DATE OF PRONOUNCEMENT : 10 / 08 /201 8 . O R D E R PER V. DURGA RAO, JUDICIAL MEMBER TH IS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF COMMISSIONER OF INCOME TAX (APPEALS) , VISAKHAPATNAM , DATED 28 /0 2 /201 7 FOR THE ASSESSMENT YEAR 20 1 0 - 11 . 2. THE ONLY GROUND PRESSED BY THE ASSESSEE IS WITH REGARD TO WITHDRAWAL AMOUNT OF RS. 4,55,000/ - FROM THE BANK ACCOUNT FOR THE F . Y . 2009 - 10. 3. FACTS OF THE CASE IN BRIEF ARE THAT ASSESSEE IS AN INDIVIDUAL CARRYING ON SHARE TRADING BUSINESS, NO RETURN OF INCOME HAS BEEN 2 ITA NO. 359/VIZ/2017 ( PALLEM NISAMTHI ) FILED. THE ASSESSING OFFICER ISS U ED NOTICE UNDER SECTION 148 OF THE ACT. IN PURSUANCE TO THAT, ASSESSEE HAS FILED A RETURN OF I NCOME BY DECLARING LOSS OF RS. 7,19,730/ - . IN THE ASSESSMENT ORDER, THE ASSESSING OFFICER HAS NOTED THAT THE ASSESSEE HAS DEPOSITED RS.3,88,000/ - AND RS. 1,12,000/ - ON 06/11/2009 . WHEN THE ASSESSING OFFICER HAS ASKED , THE ASSESSEE EXPLAINED THAT SHE HAS WITHDRAWN CASH OF RS. 4,55,000/ - ON 19/09/2009 AND THE SAME IS DEPOSITED AGAIN IN HER BANK ACCOUNT. THE ASSESSING OFFICER HAS NOT ACCEPTED THE EXPLANATION GIVEN BY THE ASSESSEE AND THE SAME IS TREATED AS UNEXPLAINED CASH CREDITS AND ADDED TO THE TOTAL INC OME OF THE ASSESSEE UNDER THE HEAD INCOME FROM OTHER SOURCES . 4. ON APPEAL, LD. CIT(A) HAS OBSERVED THAT THE ASSESSEE HAS WITHDRAW N AN AMOUNT OF RS. 4,55,000/ - FROM HER BANK ACCOUNT ON 19/09/2009 AND THE BANK BALANCE AS ON 30/09/2009 WAS RS.41,231/ - . TH E ASSESSEE HAD MADE FURTHER CASH WITHDRAWAL OF RS. 40.00 LAKHS ON 07/10/2009. THIS WITHDRAW A L ITSELF SHOWS THAT EARLIER WITHDRAW AL WAS UTILIZED BY THE ASSESSEE FOR SOME OTHER PURPOSE. THE CASH DEPOSITS MADE AGAIN ON 06/11/2009 OF RS.4,55,000/ - (RS. 3,88, 000 + RS. 1,12,000) , WHICH IS NOT SUPPORTED BY ANY EVIDENCE AND ACCORDINGLY HE CONFIRMED THE ORDER OF THE ASSESSING OFFICER. 3 ITA NO. 359/VIZ/2017 ( PALLEM NISAMTHI ) 5. ON APPEAL BEFORE US, LD. COUNSEL FOR THE ASSESSEE HAS SUBMITTED THAT ASSESSEE HAS WITHDRAWN AN AMOUNT RS.4,55,000/ - ON 19/09/2009 AND THE SAME IS DEPOSITED ON 06/11/2009 , THEREFORE, THE AMOUNT DEPOSITED BY THE ASSESSEE CANNOT BE TREATED AS UNEXPLAINED CASH CREDIT CREDITS, HENCE, THE SAME HAS TO BE DELETED. 6. ON THE OTHER HAND, LD. DEPARTMENTAL REPRESENTATIVE STRONGLY SUPP ORTED THE ORDERS OF THE AUTHORITIES BELOW. 7. WE HAVE HEARD BOTH THE SIDES, PERUSED THE MATERIAL AVAILABLE ON RECORD AND THE ORDERS OF THE AUTHORITIES BELOW. 8. IN THIS CASE, THE ASSESSEE HAS DEPOSITED AN AMOUNT OF RS.3,88,000/ - AND RS. 1,12,000/ - ON 06/11 /2009. WHEN THE ASSESSING OFFICER HAS A S KED THE ASSESSEE WHAT IS THE SOURCE OF DEPOS I T, IT IS SUBMITTED THAT SHE HAS WITHDRAWN RS. 4,55,000/ - FROM HER BANK ACCOUNT ON 19/09/2009, THE SAME IS DEPOSITED AGAIN. THE ASSESSEE HAS NOT FILED ANY CORROBORATIVE E VIDENCE AND ALSO NOT EXPLAINED WHAT IS THE PURPOSE OF WITHDRAW A L AND WHY THE SAME IS DEPOSITED IN THE BANK ACCOUNT ON THE SAME DAY IN DIFFERENT AMOUNTS. THEREFORE, THE ASSESSING OFFICER HAS NOT BELIEVED THE EXPLANATION OF THE ASSESSEE THAT THE AMOUNT DEPOSITED ON 06/11/2009 IS THE AMOUNT WITHDRAWN ON 4 ITA NO. 359/VIZ/2017 ( PALLEM NISAMTHI ) 19/11/2009. ON APPEAL, LD. CIT(A) HAS OBSERVED THAT SUBSEQUENT TO THE WITHDRAW A L OF RS. 4,55,000/ - ON 19/09/2009, THE ASSESSEE HA S ALSO WITHDRAWN AN AMOUNT OF RS. 40.00 LAKHS ON 07/07/2009 . T HEREFORE, THE ASSESSEE HAS UTILISED THE AMOUNT OF RS. 4,55,000/ - AND AFTER UTILI SING THE ABOVE AMOUNT, AGAIN SHE WITHDRAWN RS.40 . 00 L A K H S THEREFORE, THE DEPOSITS MADE BY THE ASSESSEE AGAIN ON 06/11/2009 CA N NOT BE CONSIDERED THE SAME AMO U NT AS WITHDRAWN ON 19/09/2009 DEPOSITED. BEFORE US, ASSESSEE IS NOT EXPLAINED WHAT IS THE PURPOSE OF WI THDRAWAL AND AGAIN DEPOSITED THE SAME ON 06/11/2009 IN TWO DIFFERENTIAL AMOUNTS I.E. RS. 3,88,000/ - & RS. 1,12,000/ - . UNDER THESE FACTS AND CIRCUMSTANCES OF THE CASE, WE ARE OF THE OPINION THAT THE AMOUNT DEPOSITED ON 06/11/2009 CANNOT BE CONSIDERED THE S AME AMOUNT SHE WAS WITHDRAWN ON 19/09/2009. IN VIEW OF THE ABOVE, WE FIND NO REASON TO INTERFERE WITH THE ORDER OF THE LD. CIT(A). THUS, THIS GROUND OF APPEAL RAISED BY THE ASSESSEE IS DISMISSED. 9. IN THE RESULT, APPEAL FILED BY THE ASSESSEE IS DISMISSED. ORDER PRONOUNCED IN OPEN COURT ON TH IS 1 0 T H DAY OF AUGUST , 201 8 . S D / - S D / - ( D.S. SUNDER SINGH ) ( V. DURGA RAO ) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 1 0 T H AUGUST , 201 8 . 5 ITA NO. 359/VIZ/2017 ( PALLEM NISAMTHI ) VR/ - COPY TO: 1. THE ASSESSEE MS. PALLEM NISAMTHI, 41 - 1/5 - 1A, GOWTHAMI NAGAR, KRISHNA LANKA, VIJAYAWADA . 2. THE REVENUE ITO, WARD - 2(2), VIJAYAWADA. 3. THE PR.CIT, VIJAYAWADA. 4. THE CIT(A) , VIJAYAWADA. 5. THE D.R . , VISAKHAPATNAM. 6. GUARD FILE. BY ORDER (VUKKEM RAMBABU) SR. PRIVATE SECRETARY, ITAT, VISAKHAPATNAM.