The ITO, Ward-3, Bharuch V. Shri Rajnikant K.Kagalwala, Ankleshwar

ITA 390/AHD/2012

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 94621 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 8 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-11-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Next Hearing Date: 05-11-2015
• Assessment Year: 2008-2009
• Appeal Filed On: 10-02-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DINESH SINGH
• Assessee Lawyers: AARTI N SHAH
• Keywords: Unexplained cash credit; Corroborative evidences
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD C BENCH (BEFORE SHRI RAJPAL YADAV, JUDICIAL MEMBER & SHRI ANIL CHATURVEDI, ACCOUNTANT MEMBER) ITA NO: 390/AHD/2012 (ASSESSMENT YEAR: 2008-09) THE I.T.O., WARD-3, BHARUCH V/S SHRI RAJNIKANT H. KAGALWALA, GROUND FLOOR, MEVADA FALIA, VACHALI KHADKI, ANKLESHWAR- 393001 (APPELLANT) (RESPONDENT) PAN: AEEPK 2976 D APPELLANT BY : SHRI DINESH SINGH, SR. D.R . RESPONDENT BY : SMT. AARTI N. SHAH . ( )/ ORDER DATE OF HEARING : 05-11-2015 DATE OF PRONOUNCEMENT : 05 -11-2015 PER ANIL CHATURVEDI, ACCOUNTANT MEMBER 1. THIS APPEAL FILED BY THE REVENUE IS AGAINST THE ORD ER OF CIT(A)-V, BARODA DATED 15.11.2011 FOR A.Y. 2008-09. ITA NO 390/A HD/2012 . A.Y. 2008-0 9 2 2. THE RELEVANT FACTS AS CULLED OUT FROM THE MATERIAL ON RECORD ARE AS UNDER. 3. ASSESSEE IS AN INDIVIDUAL STATED TO BE HAVING INCOM E FROM AGRICULTURAL ACTIVITIES AND CAPITAL GAINS. ASSESSEE FILED HIS R ETURN OF INCOME FOR A.Y. 2008-09 ON 21.07.2008 DECLARING TOTAL INCOME AT RS. NIL. THE CASE WAS SELECTED FOR SCRUTINY AND THEREAFTER THE ASSESSMENT WAS FRAMED UNDER SECTION 143(3) VIDE ORDER DATED 29.12.2010 AND THE TOTAL IN COME WAS DETERMINED AT RS. 35,23,880/-. AGGRIEVED BY THE ORDER OF A.O., A SSESSEE CARRIED THE MATTER BEFORE LD. CIT(A) WHO VIDE ORDER DATED 15.11 .2011 GRANTED PARTIAL RELIEF TO THE ASSESSEE. AGGRIEVED BY THE AFORESAID ORDER OF LD. CIT(A), REVENUE IS NOW IN APPEAL BEFORE US AND HAS RAISED T HE FOLLOWING GROUNDS:- 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE A ND IN LAW, (I) THE LEARNED CIT(A) ERRED IN LAW IN DELETING THE ENT IRE ADDITION CR RS.30,96,676/- ON A/C OF UNEXPLAINED CREDITS, SINCE THE ASSESSEE C OULD ONLY PROVE IN AS MUCH AS THE ADDITION MADE TO THE TUNE OF RS.19,00,000/- ON ACCOUNT OF RE-DEPOSITING OF THE CHEQUES, HOWEVER FAILED TO PROVE THE IDENTITY AND C REDITWORTHINESS OF THE DEPOSITORS IN RESPECT OF THE DEPOSITS AMOUNTING TO RS.11,96,676/- AS PER THE ANNEXURE ATTACHED. (II) THE LEARNED CIT(A) ERRED IN LAW IN DELETING THE ADD ITION OF RS.1,44,740/- ON A/C OF UNEXPLAINED CASH DEPOSITS SINCE THE ASSESSEE COULD NOT JUSTIFY THE SAME BY FURNISHING CORROBORATIVE EVIDENCE IN SUPPORT OF EAR NING OF AGRICULTURE INCOME ON SPECIFIC DATES, THEREBY NOT APPRECIATING THE FACT T HAT MERE PRODUCTION OF COPY OF 7/12 AND 8A, AFFIDAVIT, CERTIFICATE OF TALATI AND T HAT TOO DURING THE APPELLATE PROCEEDINGS DO NOT ENTAIL TO EARNING OF AGRICULTURE INCOME. 1 ST GROUND IS WITH RESPECT TO DELETION OF ADDITION OF RS. 30,96,676/- ON ACCOUNT OF UNEXPLAINED CREDITS. 4. DURING THE COURSE OF ASSESSMENT PROCEEDINGS AND ON VERIFICATION OF ASSESSEES JOINT BANK ACCOUNT MAINTAINED WITH STATE BANK OF INDIA, A.O NOTICED THAT DURING THE YEAR THERE WAS CASH/CHEQUE DEPOSITS OF RS. 1,16,46,676/-. THE ASSESSEE WAS ASKED TO PROVIDE TH E SOURCE OF DEPOSIT OF ITA NO 390/A HD/2012 . A.Y. 2008-0 9 3 FUNDS. AFTER CONSIDERING THE SUBMISSIONS OF ASSESSE E, A.O WAS OF THE VIEW THAT ASSESSEE HAD NOT EXPLAINED THE SOURCE OF RS. 3 0,96,676/-. HE ACCORDINGLY TREATED THE SUM OF RS. 30,96,676/- AS U NDISCLOSED INCOME OF THE ASSESSEE. AGGRIEVED BY THE ORDER OF A.O., ASSESSEE CARRIED THE MATTER BEFORE LD. CIT(A) WHO AFTER CONSIDERING THE SUBMISS IONS OF THE ASSESSEE DELETED THE ADDITION BY HOLDING AS UNDER:- 5.2 THE SUBMISSION MADE BY THE APPELLANT ALONG WITH THE EVIDENCES WAS FORWARDED TO THE A.O FOR HIS COMMENTS. IN HIS COMMENTS, INSTEAD OF V ERIFYING THE EVIDENCES SUBMITTED BY THE APPELLANT THE A.O HAS MADE SOME VAGUE COMMENTS AND PLACED HIS RELIANCE ON THE ASSESSMENT ORDER. ALL EVIDENCES PRODUCED BY THE APP ELLANT COULD HAVE BEEN CROSS VERIFIED FROM THE BANK. AS THE APPELLANT HAS EXPLAINED ALL T HE ENTRIES IN RELATION TO ADDITION OF RS.3096676 THE NECESSARY CORROBORATIVE EVIDENCES TH E ADDITION MADE BY THE AO IS HEREBY DELETED AND THIS GROUND OF APPEAL IS ALLOWED. 5. AGGRIEVED BY THE AFORESAID ORDER OF LD. CIT(A), REV ENUE IS NOW IN APPEAL BEFORE US. 6. BEFORE US, LD. D.R. SUPPORTED THE ORDER OF A.O. ON THE OTHER HAND LD. A.R. REITERATED THE SUBMISSIONS MADE BEFORE A.O AND LD. CIT(A) AND SUPPORTED THE ORDER OF LD. CIT(A). 7. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL ON RECORD. WE FIND THAT BEFORE LD. CIT(A), ASSESSEE HAD FURNISHED THE EXPLANATIONS ABOUT THE VARIOUS ENTRIES IN RESPECT OF WHICH THE ADDITIO NS WERE MADE BY A.O. LD. CIT(A) HAD FORWARDED THE EVIDENCES AND EXPLANATION OF THE ASSESSEE TO A.O FOR HIS COMMENTS. WE FIND THAT LD. CIT(A) WHILE DEL ETING THE ADDITION HAS NOTED THAT A.O DID NOT VERIFY THE EVIDENCES THAT WE RE SUBMITTED BY THE ASSESSEE AND HAD PLACED RELIANCE ON THE ASSESSMENT ORDERS. WE FURTHER FIND ITA NO 390/A HD/2012 . A.Y. 2008-0 9 4 THAT LD. CIT(A) WHILE GRANTING THE RELIEF HAS GIVEN A FINDING THAT ASSESSEE HAS EXPLAINED ALL THE ENTRIES IN RELATION TO THE AD DITION MADE WITH THE NECESSARY CORROBORATIVE EVIDENCES. BEFORE US, REVEN UE HAS NOT PLACED ANY MATERIAL ON RECORD TO CONTROVERT THE FINDINGS OF LD . CIT(A). IN VIEW OF THESE FACTS AND MORE SO, WHEN LD. CIT(A) HAD GRANTED OPPO RTUNITY TO A.O TO EXAMINE THE EVIDENCES THAT WERE SUBMITTED BY ASSESS EE BEFORE HIM AND THE SAME WERE NOT EXAMINED BY A.O, WE FIND NO REASON TO INTERFERE WITH THE ORDER OF LD. CIT(A) AND THUS THE GROUND OF REVENUE IS DISMISSED. 2 ND GROUND IS WITH RESPECT TO DELETION OF ADDITION OF RS. 1,44,740/-. 8. ON VERIFICATION OF THE STATEMENT OF ACCOUNT MAINTAI NED BY THE ASSESSEE WITH BHARUCH DISTRICT CENTRAL CO-OP. BANK, A.O NOTICED T HAT THERE WAS CASH DEPOSITS AGGREGATING TO RS. 1,44,740/-. THE SUBMISS IONS OF THE ASSESSEE WITH RESPECT TO THE CASH DEPOSITS WAS NOT FOUND ACCEPTAB LE TO THE A.O AND THEREFORE A.O ADDED THE CASH DEPOSITS OF RS. 1,44,7 40/- AS UNDISCLOSED INCOME OF THE ASSESSEE. AGGRIEVED BY THE ORDER OF A .O., ASSESSEE CARRIED THE MATTER BEFORE LD. CIT(A) WHO DELETED THE ADDITI ON BY HOLDING AS UNDER:- 6.2 I HAVE GONE THROUGH THE FACTS OF THE CASE AS AL SO THE OBSERVATION OF THE AO AND THE ARGUMENTS ADVANCED BY THE AR. SINCE THE AMOUNT DECL ARED AS AGRICULTURAL INCOME HAS ALREADY BEEN TAXED AS INCOME FROM OTHER SOURCES AND CASH DEPOSITS REPRESENT APPLICATION OF THAT INCOME, ADDITION OF RS. 144740 MADE BY THE AO IS HEREBY DELETED. THIS GROUND OF APPEAL IS THEREFORE ALLOWED. 9. AGGRIEVED BY THE AFORESAID ORDER OF LD. CIT(A), REV ENUE IS NOW IN APPEAL BEFORE US. ITA NO 390/A HD/2012 . A.Y. 2008-0 9 5 10. BEFORE US, LD. D.R. SUPPORTED THE ORDER OF A.O. ON THE OTHER HAND LD. A.R. REITERATED THE SUBMISSIONS MADE BEFORE A.O AND LD. CIT(A) AND SUPPORTED THE ORDER OF LD. CIT(A). 11. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL ON RECORD. WE FIND THAT LD. CIT(A) WHILE GRANTING THE RELIEF TO T HE ASSESSEE HAS GIVEN A FINDING THAT THE AMOUNT DECLARED AS AGRICULTURAL IN COME BY THE ASSESSEE HAS ALREADY BEEN TAXED AS INCOME FROM OTHER SOURCES A ND THE CASH DEPOSITS REPRESENT APPLICATION OF THAT INCOME. THE AFORESAID FINDING OF LD. CIT(A) HAS NOT BEEN CONTROVERTED BY REVENUE PLACING ANY MATERI AL ON RECORD. IN VIEW OF THESE FACTS, WE FIND NO REASON TO INTERFERE WITH THE ORDER OF LD. CIT(A) AND THUS THE GROUND OF REVENUE IS DISMISSED. 12. IN THE RESULT, THE APPEAL OF REVENUE IS DISMISSED. ORDER PRONOUNCED IN OPEN COURT ON 05- 11 - 2015 . SD/- SD/- (RAJPAL YADAV) (ANIL CHATURVEDI) JUDICIAL MEMBER ACCOUNTANT MEMBER AHMEDABAD: TRUE COPY RAJESH COPY OF THE ORDER FORWARDED TO: - 1. THE APPELLANT. 2. THE RESPONDENT. 3. THE CIT (APPEALS) 4. THE CIT CONCERNED. 5. THE DR., ITAT, AHMEDABAD. 6. GUARD FILE. BY ORDER DEPUTY/ASSTT.REGISTRAR ITAT,AHM EDABAD