Nibedita Rout, Bhubaneswar V. ITO, Khurda

ITA 399/CTK/2011

• Counselvise Citation: 39922114 RSA 2011
• Duration Of Justice: 7 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-05-2012
• Appeal Filed By: Assessee
• Bench Allotted: SMC
• Next Hearing Date: 26-04-2012
• Assessment Year: 2007-2008
• Appeal Filed On: 12-09-2011
• Court: TRIBUNAL
• Department Lawyers: S C MOHANTY
• Assessee Lawyers: G P RATH

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, (SMC) BENCH, CUTTACK BEFORE : SHRI K.K.GUPTA, ACCOUNTANT MEMBER ITA NO. 3 99/CTK/2011 (ASSESSMENT YEAR 2007 - 08) SMT. NIBEDITA ROUT, AT/P.O.JHARIPADA, DIST.KHURDA PAN: ACJPR 4958 F VERSUS INCOME - TAX OFFICER, KHURDA WARD, KHURDA. (APPELLANT) (RESPONDENT) FOR THE APPELLANT: SHRI G.P.RATH, AR FOR THE RESPONDENT SHRI S.C.MOHANTY, DR DATE OF HEARING : 26.04.2012 DATE OF PRONOUNCEMENT : 11.05.2012 ORDER SHRI K.K.GUPTA, AM : THIS APPEAL BY THE ASSESSEE RAISE S A SOLITARY ISSUE WITH RESPECT TO BRINGING TO TAX 1,53,404 AS COMPUTED BY THE ASSESSING OFFICER AS CASH DEPOSITED IN THE BANK WITHOUT ANY CORRESPONDING MATERIAL TO ESTABLISH THAT THE SAME HAD BEEN RENDERED TO TAX BY THE ASSESSEE. 2. THE RELEVANT FACTS AR E THAT THE ASSESSEE DERIVES INCOME FROM BUSINESS AND HOUSE PROPERTY. DURING THE COURSE OF ASSESSMENT ON VERIFICATION OF THE SB ACCOUNT WITH PUNJ A B & SIND BANK BEARING ACCOUNT NO.1575, THE ASSESSING OFFICER FOUND THAT THE ASSESSEE HAD DEPOSITED CASH OF 2,2 0,000 ON 5.4.2006 . SINCE THE ASSESSEE HAD AVAILABLE BALANCE OF 66,596 ONLY A S ON 31.3.2006 AND NO SALES HAD BEEN EFFECTED TILL 5.4.2006, THE ASSESSING OFFICER WAS OF THE VIEW THAT THE ASSESSEE HAD ONLY A SUM OF 66,596 TO DEPOSIT IN THE BANK ACCOUNT. THER EFORE, HE ADDED THE BALANCE AMOUNT OF 1,53,404 TO THE TOTAL INCOME U/S.69 OF THE I.T.ACT,1961 IN THE IMPUGNED ASSESSMENT YEAR , WHICH THE LEARNED CIT(A) HAS CONFIRMED IN APPEAL BY THE ASSESSEE. 3. AGGRIEVED, THE ASSESSEE IS NOW IN APPEAL BEFORE THE TRIBUN AL. 4. HAVING HEARD BOTH THE PARTIES AND ON PERUSING THE IMPUGNED ORDERS OF THE AUTHORITIES BELOW AND THE MATERIAL MADE AVAILABLE ON RECORD, I AM OF THE CONSIDERED VIEW THAT THE ASSESSEES CASH DEPOSIT ON 5.4.2006 HAS BEEN ITA NO.99/CTK/2011 2 MISCONSTRUED BY THE ASSESSING OFF ICER PRIMARILY RELYING ON THE PART OF THE SUBMISSIONS OF THE ASSESSEE AND BY INCORPORATING HIS OWN ACCOUNTING WHEN THE FACT IS THAT THE ASSESSEE HAD RENDERED INCOME OF 1,66, 162 IN THE IMMEDIATELY PRECEDING ASSESSMENT YEAR WHEN HE CHOSE TO CORRELATE THE CASH AVAILABLE AS ON 31.3.2006 ON THE BASIS OF RECEIPTS AND PAYMENTS AMOUNT HELD AT 66,956 ONLY . REDUCING THE DEPOSITS ON 5.4.2006 OF 2,20,000 FROM IT, THE ASSESSING O FFICER HELD TH AT THE SUM OF 1 ,53,404 IS THE UNDISCLOSED INCOME OF THE ASSESSEE FOR THE IMPUGNED YEAR WHEN IT HAS BEEN SPECIFICALLY MENTIONED THAT THE ASSESSEE DOES NOT MAINTAIN BOOKS OF ACCOUNT BUT ONLY SB ACCOUNT IN PUNJAB & SIND BANK WHEN THE STOCK AND DEBTORS HAVING BEEN CONVERTED IN CASH HAVE BEEN RENDERED TO TAX FROM THE INCOME PORTION IN THE EARLIER YEAR CANNOT BE SUBJECTED TO VERIFICATION AS CASH NOT AVAILABLE AS ON 31.3.2006 WHEN THE SALES FROM 1 ST APRIL TO 5 TH APRIL WERE NOT SUFFICIENT TO DEPOSIT 2,20,000 IN THE BANK. THE ASSESSEE HAD SHOWN ONLY 16,849 HOLDIN G BALANCE IN THE BANK ON 1.4.20 06 WHEN SHE CHOSE TO ENCASH THE STOCK LYING WITH IT AND THE AMOUNT OW ED BY THE PURCHASERS IN CASH WHICH INCOME HAD ALREAD Y BEEN RENDERED TO TAX IN THE IMMEDIATELY PRECEDING ASSESSMENT YEAR IS MORE THAN 1,53,404 WHICH HAS BEEN ACTUALLY COMPUTED BY THE ASSESSING OFFICER FOR TAXATION U/S.69 IN THE IMPUGNED ASSESSMENT YEAR. THEREFORE, I AM OF THE CONSIDERED VIEW THAT THE INCOME FOR THE IMPUGNED ASSESSMENT YEAR AMOUNTING TO 1,43,490 HAVING BEEN ACCEPTED BY THE ASSESSING OFFICER WAS IN THE LINE OF INCOME RETURNED BY THE ASSESSEE FOR THE IMMEDIATELY P RECEDING ASSESSMENT YEAR AT 1, 66,162 WAS SUFFICIENT TO HOLD CASH OR DEBTOR CONV ERTED INTO CASH FOR DEPOSIT ON 5.4.2006 WHEN THE CASH TRANSACTIONS RESULTED IN A FINDING THAT THE ASSESSEE HAD ONLY 66,596 CASH WAS WITHOUT INCORPORATING THE BANK TRANSACTIONS. IN THIS VIEW OF THE MATTER, THE ADDITION OF 1, 53,404 U/S.69 MADE BY THE ASSES SING OFFICER AND UPHELD BY THE LEARNED CIT(A) ITA NO.99/CTK/2011 3 CANNOT BE SUSTAINED AND AS SUCH, I DIRECT DELETION OF THE SAID AMOUNT OF 1, 53,404 BY ALLOWING THE APPEAL OF THE ASSESSEE. 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOWED. S D/ - (K.K.GUPTA) ACCOUNTANT MEMBER DATE: 11.05.2012 H.K.PADHEE, SENIOR PRIVATE SECRETARY. COPY OF THE ORDER FORWARDED TO : 1. THE APPELLANT: SMT. NIBEDITA ROUT, AT/P.O.JHARIPADA, DIST.KHURDA 2. THE RESPONDENT: INCOME - TAX OFFICER, KHURDA WARD, KHURDA. 3. THE CIT, 4. THE CIT(A), 5. THE DR, CUTTACK 6. GUARD FILE (IN DUPLICATE) TRUE COPY, BY ORDER, SENIOR PRIVATE SECRETARY.