Dy. CIT, Chandigarh V. Sh. Harish Sharma, Chandigarh

ITA 392/CHANDI/2014

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 95684 (ITAT-CHANDIGARH)
• Duration Of Justice: 1 year(s) 6 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-11-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 04-11-2015
• Assessment Year: 2005-2006
• Appeal Filed On: 15-04-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MANJIT SINGHDR
• Assessee Lawyers: AJAY JAIN

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH,CHANDIGARH BEFORE SHRI BHAVNESH SAINI, JUDICIAL MEMBER AND MS.ANNAPURNA MEHROTRA, ACCOUNTANT MEMBER ITA NO. 392/CHD/2014 ASSESSMENT YEAR: 2005-06 THE DY. CIT, VS SHRI HARISH SHARMA, CIRCLE 1(1), HOUSE NO. 17, CHANDIGARH. SECTOR 16, CHANDIGARH. PAN: ACNPS8538A (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI MANJIT SINGH,DR RESPONDENT BY : SHRI AJAY JAIN DATE OF HEARING : 04.11.2015 DATE OF PRONOUNCEMENT : 06.11.2015 O R D E R PER BHAVNESH SAINI,JM THIS APPEAL BY REVENUE IS DIRECTED AGAINST THE ORDE R OF LD. CIT(APPEALS) CHANDIGARH DATED 03.01.2014 FOR ASSESSMENT YEAR 2005-06 CHALLENGING THE DELETION OF ADDITION OF RS. 4,50,000/- ON ACCOUNT OF UNEXPLAINE D INVESTMENT AND DELETING THE ADDITION OF RS. 12,85,0 00/- ON ACCOUNT OF UNEXPLAINED ENTRIES IN THE BANK ACCOU NT WITH PUNJAB NATIONAL BANK. 2. BRIEFLY THE FACTS OF THE CASE ARE THAT THE FIRST ADDITION IS OF RS. 4,50,000/- REPRESENTING FOUR CRE DIT ENTRIES IN THE BANK ACCOUNT OF SMT. DAMINI SHARMA, WIFE 2 OF THE ASSESSEE AND THE SECOND ISSUE IS WITH RESPEC T TO CREDITS IN THE ACCOUNT OF ASSESSEE WITH PUNJAB NATI ONAL BANK. IT APPEARS THAT WHILE MAKING ASSESSMENT IN T HE CASE OF SMT. DAMINI SHARMA, WIFE OF THE ASSESSEE, ASSESSING OFFICER HELD THAT ASSESSEE HAD NO INDEPEN DENT SOURCE OF INCOME AND THE INVESTMENTS MADE IN HER NA ME WERE OUT OF THE FUNDS PROVIDED BY THE ASSESSEE. FO R TAKING THIS VIEW, ASSESSING OFFICER RELIED ON CONTE NTS OF AFFIDAVIT FILED BY THE ASSESSEE BEFORE DISTRICT JUD GE IN MATRIMONIAL MATTER IN WHICH THE ASSESSEE EXPLAINED THAT HE HAS PURCHASED PROPERTIES IN THE NAME OF HIS WIFE . THE ASSESSING OFFICER, THEREAFTER, HELD THAT SOURCE OF THE FOLLOWING FOUR CREDITS IN THE ACCOUNT OF SMT. DAMIN I SHARMA WERE NOT PROPERLY EXPLAINED AND THESE CREDIT S ARE OF RS.2,50,000/-, RS. 1,50,000/-, RS. 25,000/- AND RS. 25,000/- FROM 27.07.2004 TO 21.09.2004. 3. THE ASSESSING OFFICER ALSO ANALYZED VARIOUS ENTR IES IN THE BANK ACCOUNT OF THE ASSESSEE WITH PUNJAB NAT IONAL BANK AND MADE THE ADDITIONS ON FOLLOWING CREDIT ENT RIES IN THIS BANK ACCOUNT WHICH ARE RELEVANT TO THE MATT ER IN APPEAL : I) NO EVIDENCE WAS FILED BY ASSESSEE IN RESPECT OF CREDITS BY CLEARING OF THE CHEQUES ON VARIOUS DATES TOTALING TO RS.11,35,000/-. II) RS. 50,000/- DEPOSITED IN CASH ON 24.12.2004. 3 III) RS. 1 LAC ON 02.02.2005 CLAIMED TO HAVE BEEN RECEIVED FROM SMT. RANJNA DEVI ON ACCOUNT OF REPAYMENT OF LOAN GIVEN EARLIER. 4. THE ASSESSEE CHALLENGED ALL THESE ADDITIONS BEFO RE LD. CIT(APPEALS) REGARDING CREDIT OF RS. 4,50,000/- IN THE BANK ACCOUNT OF SMT. DAMINI SHARMA. IT WAS SUBMITT ED THAT ASSESSING OFFICER WAS NOT RIGHT IN MAKING THIS ADDITION IN THE HANDS OF ASSESSEE INSTEAD OF MAKING ADDITION IN THE CASE OF SMT. DAMINI SHARMA. SMT. DAMINI SHARMA IS INDEPENDENT ASSESSEE HAVING HER SOURCE OF INCOME, THEREFORE, ADDITION IS UNJUSTIFIE D. 4(I) AS REGARDS CREDIT TO THE TUNE OF RS. 11,35,000 /- ON VARIOUS DATE THROUGH CLEARING OF VARIOUS CHEQUES ON DIFFERENT DATES, IT WAS SUBMITTED THAT THESE CREDIT S ARE ON ACCOUNT OF DEPOSITS OF CHEQUES RECEIVED FROM TRE ASURY BRANCH BY STATE BANK OF INDIA, SECTOR 17, CHANDIGAR H ON MATURITY/REDEMPTION OF IVP/KYC SAVINGS OF SMT. SHIV DARSHAN SHARMA, OTHER OF THE ASSESSEE AND JOINT HOL DER WITH THE ASSESSEE. IT WAS ALSO SUBMITTED THAT ASSE SSING OFFICER HAS ACCEPTED SIMILAR CREDIT ON 15.01.2004 V IDE CHEQUE NO. 189065. 4(II) REGARDING CASH DEPOSIT OF RS. 50,000/- ON24.12.2004, IT WAS SUBMITTED THAT AMOUNT IS CLAIM ED TO HAVE BEEN DEPOSITED OUT OF WITHDRAWALS MADE EARL IER OF RS. 35,000/- ON 11.12.2004 AND RS. 25,000/- ON 24.12.2004 BY PARENTS OF THE ASSESSEE FROM THEIR BA NK 4 ACCOUNT WITH PUNJAB NATIONAL BANK, SECTOR 16, CHANDIGARH. 4(III) REGARDING THE CREDIT OF RS. 1 LAC ON 02.02.2 005, IT WAS SUBMITTED THAT AMOUNT WAS RECEIVED BY WAY OF TRANSFER FROM MISS ANJALI SHARMA, SISTER OF THE ASS ESSEE OUT OF HER BANK ACCOUNT WITH PUNJAB NATIONAL BANK. COPY OF THE BANK ACCOUNT WAS FILED TO EXPLAIN THIS ISSUE . 5. THE LD. CIT(APPEALS) CONSIDERED THE SUBMISSIONS OF THE ASSESSEE AND MATERIAL ON RECORD. THE LD. CIT(APPEALS) FOUND THAT THERE IS NOTHING IN THE AFF IDAVIT TO INFER THAT THE IMPUGNED BANK ACCOUNT OF SMT. DAM INI SHARMA WAS DE-FACTO THE BANK ACCOUNT OF THE ASSESSE E AND THAT HE WAS OPERATING THE SAME. SMT. DAMINI SHARMA IS INDEPENDENT ASSESSEE AND HAS BEEN SHOWING INCOME BY WAY OF CAPITAL GAIN ON SALE OF THE FLAT W HICH WAS ASSESSED AS HER INCOME. THEREFORE, ONUS OF PRO VING CREDIT ENTRY WAS ON HER AND NOT UPON THE ASSESSEE. THE AMOUNT OF RS. 4,50,000/- WAS CREDITED IN THE BANK ACCOUNT OF SMT. DAMINI SHARMA THROUGH CREDIT ENTRIE S BY CHEQUES. THEREFORE, ASSESSEE WAS NOT LIABLE FOR TH E AMOUNT TO BE ADDED. FURTHER, THE RELATIONS BETWEEN ASSESSEE AND HIS WIFE WERE STRAINED, THEREFORE, DET AILS WERE FILED BEFORE HIM IN THIS REGARD. THE LD. CIT(APPEALS), ACCORDINGLY, DELETED THE ADDITION OF RS. 4,50,000/-. THE LD. CIT(APPEALS) ACCEPTED THE EXPLANATION OF ASSESSEE WITH REGARD TO CREDIT ENTRY OF RS. 11,35,000/- WHICH WERE RECEIVED ON ACCOUNT OF MATUR ITY 5 OF IBP/KYC SAVINGS OF THE MOTHER OF THE ASSESSEE. THE ASSESSEE FILED CONFIRMATION FROM DY. POST MASTER, TREASURY, GPO, CHANDIGARH TO THAT EFFECT. THE ADDI TION WAS, THEREFORE, DELETED. 5(I) THE LD. CIT(APPEALS) ALSO ACCEPTED DEPOSIT OF RS. 50,000/- ON 24.12.2004 WHICH WERE WITHDRAWALS MADE BY PARENTS OF THE ASSESSEE. FURTHER, ASSESSEE HAS DEC LARED INCOME OF RS. 6,55,776/- DURING THE YEAR UNDER CONSIDERATION, THEREFORE, SUCH AMOUNT WAS AVAILABLE TO THE ASSESSEE. ADDITION OF RS. 50,000/- WAS ACCORDI NGLY DELETED. AS REGARDS CREDIT ENTRY OF RS. 1 LAC ON 02.02.2005, THE ASSESSEE RECEIVED THE TRANSFER ENTR Y FROM BANK ACCOUNT OF HIS SISTER MS. ANJALI SHARMA, THERE FORE, SAID ENTRY WAS ALSO EXPLAINED AND ADDITION WAS DELE TED. 6. THE REVENUE IS IN APPEAL ON THE ABOVE GROUNDS. THE LD. DR RELIED UPON ORDER OF THE ASSESSING OFFI CER AND SUBMITTED THAT ASSESSEE FAILED TO EXPLAIN THE C REDIT ENTRIES IN HIS BANK ACCOUNT AS WELL AS BANK ACCOUNT OF HIS WIFE. ON THE OTHER HAND, LD. COUNSEL FOR THE A SSESSEE REITERATED THE SUBMISSIONS MADE BEFORE AUTHORITIES BELOW. 7. ON CONSIDERATION OF THE RIVAL SUBMISSIONS, WE AR E OF THE VIEW THAT BOTH ADDITIONS HAVE BEEN CORRECTLY DE LETED BY LD. CIT(APPEALS). IT IS ADMITTED FACT THAT THE ENTRIES 6 OF RS.4,50,000/- WERE APPEARING IN THE BANK ACCOUNT OF WIFE OF THE ASSESSEE THROUGH CLEARING. THEREFORE, SOURCE THROUGH CLEARING IS EXPLAINED. FURTHER, THERE WERE STRAINED RELATIONS BETWEEN ASSESSEE AND HIS WIFE, THEREFORE, IT COULD NOT BE PRESUMED THAT ASSESSEE M ADE THESE DEPOSITS IN THE BANK ACCOUNT OF HIS WIFE, PARTICULARLY WHEN THESE ENTRIES WERE THROUGH CLEARI NG BY CHEQUES. THE AFFIDAVIT FILED BEFORE THE MATRIMONIA L COURT WOULD NOT SUPPORT THE CASE OF THE REVENUE AT ALL. THE LD. CIT(APPEALS), THEREFORE, ON PROPER APPRECIATION OF FACTS AND MATERIAL ON RECORD, CORRECTLY DELETED THE ADDIT ION OF RS.4,50,000/- IN THE HANDS OF THE ASSESSEE. FURTHE R, THE ASSESSEE EXPLAINED THE CREDIT ENTRIES OF RS. 11,35, 000/- THROUGH CLEARING OF CHEQUES ON ACCOUNT OF AMOUNT RECEIVED ON MATURITY OF IVP/KYC SAVINGS OF MOTHER O F THE ASSESSEE. THIS WAS SUPPORTED BY CONFIRMATION FILED FROM DY. POST MASTER, GPO, CHANDIGARH. AS REGARDS THE C ASH DEPOSIT OF RS. 24.12.2004 OF RS. 50,000/-, ASSESSEE EXPLAINED THE SOURCE OUT OF WITHDRAWALS MADE BY HIS PARENTS AND HIS OWN INCOME DECLARED IN THE ASSESSME NT YEAR UNDER APPEAL. THE CREDIT OF RS. 1 LAC ON 02.0 2.2005 WAS RECEIVED ON TRANSFER OF ENTRY FROM THE BANK ACC OUNT OF SISTER OF THE ASSESSEE. ALL THESE CERTIFICATES AND CONFIRMATIONS ARE PLACED ON RECORD AND AS SUCH, LD. CIT(APPEALS) ON PROPER APPRECIATION OF FACTS AND MA TERIAL CORRECTLY DELETED THESE ADDITIONS. NO INFIRMITY HA S BEEN 7 POINTED OUT IN THE ORDER OF LD. CIT(APPEALS) FOR DE LETING THESE ADDITIONS. 8. IN THE RESULT, BOTH THE GROUNDS OF APPEAL OF THE REVENUE HAVE NO MERIT AND ARE ACCORDINGLY DISMISSED . 9. IN THE RESULT, THE DEPARTMENTAL APPEAL IS DISMIS SED. ORDER PRONOUNCED IN THE OPEN COURT. SD/- SD/- (ANNAPURNA MEHROTRA) (BHAVNESH SAINI) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 6 TH NOV., 2015. POONAM COPY TO: THE APPELLANT, THE RESPONDENT, THE CIT(A), THE CIT, DR ASSISTANT REGISTRAR, ITAT/CHD