Noushad K.K., Muvattupuzha V. ACIT, Ernakulam

ITA 382/COCH/2010

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 58189 (ITAT-COCHIN)
• Duration Of Justice: 1 year(s) 6 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-01-2012
• Appeal Filed By: Assessee
• Bench Allotted: DB
• Next Hearing Date: 03-01-2012
• Assessment Year: 2004-2005
• Appeal Filed On: 09-06-2010
• Court: TRIBUNAL
• Department Lawyers: S VIJAYAPRABHA
• Keywords: Source of fund

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH, COCHIN BEFORE S/SHRI N.R.S.GANESAN, JM AND B.R.BASKARA N, AM I.T.A NO. 382/COCH/2010 ASSESSMENT YEAR:2004-05 SHRI NOUSHAD K.K., KUZHIKANDATHIL HOUSE, CHANDAKADAVU, MUVATTUPUZHA. [PAN:ASAPK 4105A] VS. THE ASSISTANT COMMISSIONER OF INCOME-TAX, CENTRAL CIRCLE-1, ERNAKULAM. (ASSESSEE-APPELLANT) (REVENUE-RESPOND ENT) ASSESSEE BY SHRI MATHEW JOSEPH, CA REVENUE BY MS. S. VIJAYAPRABHA, JR. DR DATE OF HEARING 03/01/2012 DATE OF PRONOUNCEMENT 6 /01/2012 O R D E R PER B.R.BASKARAN, AM THE APPEAL OF THE ASSESSEE IS DIRECTED AGAINST THE ORDER DATED 25.3.2010 PASSED BY THE CIT(A)-I, KOCHI AND IT IS RELATED TO THE ASSESS MENT YEAR 2004-05. 2. IN THIS APPEAL, THE ASSESSEE IS ASSAILING THE DE CISION OF THE LD. CIT(A) IN PARTIALLY CONFIRMING THE ADDITION MADE TOWARDS THE COST OF CO NSTRUCTION OF A HOUSE PROPERTY. 3. THE FACTS RELATING TO THE ISSUE ARE STATED IN BR IEF. A SEARCH WAS CONDUCTED AT THE RESIDENCE OF THE ASSESSEE AND IT WAS NOTICED THAT HE HAS CONSTRUCTED A RESIDENTIAL HOUSE IN THE YEAR 2003, THE AMOUNT SPENT ON IT WAS STATED AT ` 6,50,000/-. SINCE THE ASSESSEE COULD NOT PROPERLY EXPLAIN THE SOURCES FOR THE SAID INVES TMENT, THE ASSESSING OFFICER ADDED THE SAME TO THE TOTAL INCOME OF THE ASSESSEE. BEFORE T HE LD. CIT(A), THE ASSESSEE FURNISHED THE DETAILS OF SOURCES AS UNDER:- I.T.A. NO. 382/COCH/2010 2 SALE OF LAND BY FATHER ` 1,80,000/- LOAN FROM BANK ` 3,00,000/- OWN SOURCE ` 70,000/- 4. THE LD. CIT(A) CALLED FOR A REMAND REPORT FORM T HE AO. IN THE SAID REPORT, THE ASSESSING OFFICER ACCEPTED THE AVAILABILITY OF HOUS ING LOAN OF ` 3 LAKHS. IN RESPECT OF THE SALE OF LAND BY FATHER, THE ASSESSING OFFICER STATE D THAT ONLY A SUM OF RS.60,000/- WAS MENTIONED IN THE CONVEYANCE DEED. ACCORDINGLY, THE LD. CIT(A) DIRECTED THE ASSESSING OFFICER TO ALLOW DEDUCTION TO THE EXTENT OF ` 3,60,000/- AND CONFIRMED THE ADDITION OF BALANCE AMOUNT OF ` 2,90,000/-. STILL AGGRIEVED THE ASSESSEE IS IN AP PEAL BEFORE US. 5. WE HAVE HEARD THE RIVAL CONTENTIONS. THE MAIN S UBMISSION BY THE LD. AR IS THAT THE ASSESSEE WAS SUBMITTING RETURN OF INCOME SHOWIN G INDEPENDENT SOURCES OF INCOME AND HENCE, A FURTHER DEDUCTION SHOULD BE GIVEN TOWA RDS SOURCES FROM OWN SAVINGS. WE ALSO NOTICE THAT THE ASSESSEE HAS RETURNED AN INCO ME OF ` 60,000/- DURING THE YEAR UNDER CONSIDERATION AND HENCE, THE POSSIBILITY OF AVAILAB ILITY OF OWN SAVINGS CANNOT BE RULED OUT ALTOGETHER. ACCORDINGLY, IN THE INTEREST OF JUSTIC E, WE DIRECT THE ASSESSING OFFICER TO ALLOW A FURTHER DEDUCTION OF ` 50,000/- OVER AND ABOVE THE RELIEF GRANTED BY THE L D. CIT(A), WHICH, IN OUR VIEW, WOULD MEET THE ENDS OF JUSTICE. WE ORDER ACCORDINGLY. 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS PA RTLY ALLOWED. PRONOUNCED ACCORDINGLY ON 6.1.12 SD/- SD/- (N.R.S.GANESAN) (B.R.BASKARAN) JUDICIAL MEMBER ACCOUNTANT MEMBER PLACE: ERNAKULAM DATED: 6TH JANUARY, 2012 GJ COPY TO: 1. SHRI NOUSHAD K.K., KUZHIKANDATHIL HOUSE, CHANDAK ADAVU, MUVATTUPUZHA. 2. THE ASSISTANT COMMISSIONER OF INCOME-TAX, CENTRA L CIRCLE-1, ERNAKULAM. 3. THE COMMISSIONER OF INCOME-TAX (APPEALS)-I, KOCH I. I.T.A. NO. 382/COCH/2010 3 4. THE COMMISSIONER OF INCOME-TAX CENTRAL, KOCHI. 5. D.R., I.T.A.T., COCHIN BENCH, COCHIN. 6. GUARD FILE .