Smt. Dolly Devi, Jamshepur V. ITO, Jamshepur

ITA 42/RAN/2013

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 85429 (ITAT-RANCHI)
• Duration Of Justice: 1 year(s) 7 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-11-2014
• Appeal Filed By: Assessee
• Bench Allotted: DB
• Assessment Year: 2008-2009
• Appeal Filed On: 15-04-2013
• Court: TRIBUNAL
• Department Lawyers: CHOUDHARY ORAM JCITLD
• Assessee Lawyers: S K PODDAR; M K CHOUDHURY S LD ARS
• Keywords: Unexplained investment

Judgement Text

INCOME TAX APPELLATE TRIBUNAL, CIRCUIT BENCH, RANCHI BEFORE HON'BLE SHRI H.L. KARWA, PRESIDENT , AND HON'BLE SHRI B.R. BASKARAN, ACCOUNTANT M EMBER ITA NO . 42 /RAN/201 3 A.Y 200 8 - 09 SMT. DOLLY DEVI, JSR VS. I.T.O , WAR D 2 , JAMSHEDPUR PAN: A BFPD1103P ( APPELLANT ) ( RESPONDENT ) FOR THE APPELLANT : S/ SH RI S.K PODDAR & M.K CHOUDHURY, ADVOCATES, LD.ARS FOR THE RESPONDENT : SHRI CHOUDHARY ORAM , JCIT/LD.DR DATE OF HEARING : 24 - 11 - 2014 DATE OF PRONOUNCEMENT: 24 - 11 - 201 4 ORDER SHRI B.R. BASKARAN, ACCOUNTANT MEMBER : TH E APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER DATED 27 - 02 - 2013 PASSED BY LD. CIT(A) , JAMSEHE D PUR AND IT RELATES TO THE ASSESSMENT YEAR 2008 - 09. 2. THE A SSESSEE IS AGGRIEVED BY THE DECISION OF THE LD.CIT(A) IN CONFIRMING THE FOLLOWING ADDITIONS: - A) INVESTMENT IN MUTUAL FUNDS RS. 1,98,424/ - B) UNEXPLAINED DEPOSITS IN BANK RS. 2,64,417/ - 3. THE FACTS RELATING TO THE ABOVE SAID ADDITION S ARE STATED IN BRIEF. THE ASSESSEE IS PROPRIETORIX OF A BHOJANALAY A (DHABA) LOCATED AT JAMSHEDPUR. SHE DID NOT MAINTAIN REGULAR BOOKS OF ACCOUNT. THE ASSESSING OFFICER NOTICED THAT THE ASSESSEE HAS MAINTAINED JOINT BANK ACCOUNT ALONG WITH HER HUSBAND. THE ASSESSING OFFICER FURTHER NOTICED THAT THE ASSESSEE HAS INVESTED A SUM OF RS. 33,99,000/ - IN VARIOUS MUTUAL FUNDS DURING THE YEAR UNDER CONSIDERATION. THE ASSESSING OFFICER ALSO NOTICED THAT THE ASSESSEE HAS WITHDRAWN 2 ITA NO. 42/ / /RAN/13 SMT. DOLLY DEVI,JSR AGGREGATE AMOUNT OF RS. 17,50,576/ - FROM THE TW O ACCOUNTS MAINTAINED BY HER WITH UCO BANK. ACCORDINGLY, THE ASSESSING OFFICER GAVE SET OF F OF RS.17,50,576/ - AGAINST THE AGGREGATE INVESTMENT IN MUTUAL FUNDS OF RS. 33,99,000/ - , WHICH RESULTED IN A BALANCE OF RS.16,48,424/ - . O UT OF THE BALANCE AMOUNT, T HE ASSESSING OFFICER AGREED TO CONSIDER A SUM OF RS.14,50,000/ - IN THE HANDS OF ASSESSEE S HUSBAND . ACCORDINGLY, THE REMAINING AMOUNT OF RS.1,98,424/ - WAS ASSESSED BY THE ASSESSING OFFICER AS UNEXPLAINED INVESTMENT IN THE HANDS OF THE ASSESSEE. 4 . THE A SSESSING OFFICER FURTHER NOTICED THAT THE ASSESSEE H A S DEPOSITED AN AGGREGATE AMOUNT OF RS. 3,67,001/ - IN THE BANK ACCOUNTS MAINTAINED WITH UCO & ICICI BANK , WHICH INCLUDED INTEREST INCOME OF RS. 78,701/ - . THE ASSESSING OFFICER FURTHER NOTICED THAT THE ASSES SEE HAS SHOWN NET PROFIT FROM HER BUSINESS AT RS.2,44,290/ - . THE WITHDRAWALS MADE FROM THE BUSINESS ACCOUNT WAS SHOWN AT RS.2,20,407/ - , THUS LEAVING WITH SURPLUS FUND OF RS. 23,883/ - ONLY. ACCORDINGLY, THE ASSESSING OFFICER GAVE SET OFF OF RS. 78,701/ - ( INT EREST INCOME FROM BANK ACCOUNT ) AND RS. 2 3, 833/ - ( SURPLUS FUND ) AGAINST THE SAID BANK DEPOSITS OF RS. 3,67,00 1/ - AND ASSESSED THE BALANCE AMOUNT OF RS.2 , 64 , 417/ - AS INCOME OF THE ASSESSEE . 5 . IN THE APPELLATE PROCEEDINGS THE LD.CIT(A) CONFIRMED BOTH THE A DDITIONS . AGGRIEVED, THE ASSESSEE HAS FILED THIS APPEAL BEFORE US. 6 . WE HEARD THE PARTIES AND PERUSED THE RECORDS. WITH REGARD TO THE ADDITION OF UNEXPLAINED DEPOSITS OF RS. 2,64,417/ - , REFERRED ABOVE, THE LD.AR SUBMITTED THAT THE ASSESSEE HAS RECEIVED MATURITY PROCEEDS FROM A MUTUAL FUNDS [MFS] TO THE TUNE OF RS.1 LAKH AND THE SAME WAS DEPOSITED. THE LD A.R, A CCORDINGLY SUBMITTED THAT THE SAME IS REQUIRED TO BE REDUCED FROM THE ABOVE SAID ADDITION . THE LD. A R FURTHER SUBMITTED THAT THE ASSESSEE WAS HA VING OPENING CASH BALANCE OF RS.1,69,400/ - WITH HIM AND IT WAS ALSO USED FOR MAKING DEPOSITS. 3 ITA NO. 42/ / /RAN/13 SMT. DOLLY DEVI,JSR 7. WE NOTICE THAT THE CLAIM OF AVAILABILITY OF MATURITY PROCEEDS OF MUTUAL FUND TO THE TUNE OF RS.1 LAKH AND ALSO THE CLAIM OF AVAILABILITY OF OPENING CASH BALANCE ARE MADE FOR THE FIRST TIME BEFORE US. WITH REGARD TO THE CLAIM OF AVAILABILITY OF OPENING BALANCE, THE LD.A. R CONTENDED THAT THE ASSESSEE IS MAKING THE SAID CLAIM ON THE BASIS OF STATEMENT OF AFFAIRS PREPARED BY THE ASSESSEE. IT IS NOT KNOWN AS TO WHETHER THE ASSESSEE HAS SUBMITTED THE STATEMENT OF AFFAIRS ALONG WITH RETURN OF INCOME FILED FOR THE ASSESSMENT YEAR 2007 - 08 . IN OUR VIEW BOTH THE CLAIMS PUT FORTH BY THE ASSESSEE REQUIRE VERIFICATION AT THE END OF THE ASSESSING OFFICER. ACCORDIN GLY, WE SET ASIDE THE ORDER OF THE LD.CIT(A) ON THIS ISSUE AND RESTORE THE SAME TO THE FILE OF THE ASSESSING OFFICER WITH THE DIRECTION TO EXAMINE THE SAME AFRESH BY DULY CONSIDERING THE NEW SUBMISSIONS, WHICH ARE BEING MADE BEFORE US AND/OR THAT MAY BE MADE BEFORE THE ASSESSING OFFICER . 8 . WITH REGARD TO THE CLAIM OF UNEXPLAINED INVESTMENT IN M UTUAL F UND S , THE LD.AR SUBMITTED THAT ALL THE INVESTMENTS HAVE BEEN MADE BY WITHDRAWING FUNDS FROM ASSESSEE S BANK ACCOUNTS. HE FURTHER SUBMITTED THAT T HE ASSE SSING OFFICER HIMSELF HAS NOTED THE DETAILS OF BANK ACCOUNTS FROM WHICH THE WITHDRAWALS HAVE BEEN MADE FOR MAKING INVESTMENT IN MFS . ACCORDINGLY, THE LD.AR SUBMITTED THAT THE QUESTION OF NON AVAILABILITY OF FUNDS DOES NOT ARISE AT ALL. WE FIND MERIT IN THE SAID CONTENTION OF THE ASSESSEE ALSO . WE NOTICE THAT T HE ASSESSING OFFICER HIMSELF HAS POINTED OUT THAT ALL THE PAYMENTS MADE FOR MAKING INVESTMENT IN MF S HAVE BEEN WITHDRAWN FROM THE BANK ACCOUNT S MAINTAINED BY THE ASSESSEE. TH US THE AO HAS ACCEPTED THAT THE SOURCE FOR MAKING INVESTMENT IN MFS WERE WITHDRAWAL S MADE FROM THE BANK ACCOUNT S . WE FURTHER NOTICE THAT T HE ASSESSING OFFICER HAS ALSO CONSIDERED THE AGGREGATE AMOUNT OF DEPOSITS MADE IN THE BANK ACCOUNT FOR MAKING ADDITION. ACCORDINGLY, WE AR E OF THE VIEW THAT THE INVESTMENTS MADE IN MUTUAL FUNDS STAND EXPLAINED BY THE ASSESSEE. ACCORDINGLY, WE ARE OF THE VIEW THAT THERE IS NO NECESSITY TO MAKE THE IMPUGNED ADDITION OF RS. 1,98,424/ - . ACCORDINGLY, WE 4 ITA NO. 42/ / /RAN/13 SMT. DOLLY DEVI,JSR SET ASIDE THE ORDER OF THE LD.CIT(A) ON T HIS ISSUE AND DIRECT THE ASSESSING OFFICER TO DELE TE THIS ADDITION MADE U/S.69 OF THE ACT. 9 . IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS TREATED AS PARTLY ALLOWED FOR STATISTICAL PURPOSE . ORDER PRONOUNCED IN THE OPEN COURT ON 24 - 11 - 2014 SD/ - SD/ - [ H.L. KARWA ] [ B.R. BASKARAN ] PRESIDENT ACCOUNTANT MEMBER DT. 24 - 11 - 2014 PLACE : RANCHI PP, SR. PS COPY OF THE ORDER FORWARDED TO: 1. THE APPELLANT : SMT. DOLLY DEVI 12 NO. GODOWN TANK , SAKCHI SABJEE MANDI,SAKCHI, JSR 831001. 2 THE RESPONDENT: I.T.O WARD 2 , RANGE 1, JSR 47 CH AREA ,JSR 831 001. 3. .THE CIT, 4.THE CIT(A), 5.DR, ITAT CIRCUIT BENCH, RANCHI 6. GUARD FILE. TRUE COPY, BY ORDER, ASSTT. REGISTRAR 5 ITA NO. 42/ / /RAN/13 SMT. DOLLY DEVI,JSR 1. DATE OF DICTATION ............. 24 - 11 - 2014 ....................... 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER ........................OTHER MEMBER ....... 2 6 - 11 - 2014 ........................ 3. DATE ON WHICH THE APPROVED DR AFT COMES TO THE SR. P.S./P.S. ..................... 4. DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE DICTATING MEMBER FOR PRONOUNCEMENT.................................. 24 - 11 - 2014 ................................................... 5. DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR. P.S./P.S ................ 6. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK ....................................... 7. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK ......................................... 8. THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT REGISTRAR FOR SIGNATURE ON THE ORDER ................................................................................................. 9. DATE OF DESPATCH OF THE ORDER ................................................... ...........