Marri Vijaya Lakshmi, Guntur V. Income Tax Officer, Ward-1(3), Guntur

ITA 43/VIZ/2019

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 5547 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 2 year(s) 3 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-05-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 03-09-2019
• Assessment Year: 2015-2016
• Appeal Filed On: 01-02-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SUMAN MALIK
• Keywords: Set aside
• Section: 143(3); 43; 20

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM BENCH, VISAKHAPATNAM (T HROUGH WEB - BASED VIDEO CONFERENCING PLATFORM) BEFORE SHRI N.K. CHOUDHRY, HONBLE JUDICIAL MEMBER & SHRI D.S. SUNDER SINGH, HON'BLE ACCOUNTANT MEMBER I.T.A. NO. 43 /VIZ/2019 (ASST. YEAR : 2015 - 16 ) SMT. MARRI VIJAYALAKSHMI , D.NO. 5 - 6 - 3/A, NAGARJUNA NAGAR, WARD - 9, SATTENAPALLI, GUNTUR DISTRICT. VS. INCOME TAX OFFICER WARD - 1 ( 3 ) , GUNTUR PAN NO. AWQPM 4342 K (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI G.V.N. HARI, ADVOCATE. DEPARTMENT BY : SMT.SUMAN MALIK, SR. DR DATE OF HEARING : 27 / 04 /2021 . DATE OF PRONOUNCEMENT : 07 / 0 5 /2021 . O R D E R PER D.S. SUNDER SINGH , ACCOUNTANT MEMBER THIS APPEAL HAS BEEN PREFERRED BY THE ASSESSEE AGAINST THE ORDER DATED 06 /1 2 /201 8 IMPUGNED HEREIN PASSED BY THE L D.COMMISSIONER OF INCOME TAX (APPEALS) - 1 [FOR SHORT , CIT(A) , GUNTUR U/SEC. 250(6) OF THE INCOME TAX ACT, 1961 (HEREINAFTER REFERRED TO AS 'ACT') FOR THE A.Y. 20 1 5 - 1 6 . 2. ALL THE GROUNDS OF APPEAL ARE RELATED TO THE ADDITION MADE BY THE A SSESSING OFFICER(A O ) AMOUNTING TO RS. 51,13,000/ - DEPOSITS MADE IN JOINT ACCOUNT MAINTAINED WITH HDFC BANK A/C. 2 ITA NO. 43/VIZ/2019 ( SMT. MARRI VIJAYALAKSHMI ) NO. 23971930000076 IN THE JOINT NAMES OF MARRI VENKATA SUBBAREDDY , SMT. MARRI VIJAYALA LAKSHMI AND SMT. SUBBAYAMMA REDDY . T HE AO FOUND THAT THE ASSESSEE IS HAVING JOINT ACCOUNT WITH HDFC BANK IN THE NAMES OF SMT.SUBBAYAMMA REDDY , MARRI VENKATA SUBBAREDDY AND THE ASSESSEE. IN THE SAID JOINT ACCOUNT TOTAL DEPOSITS OF RS. 64,83,000/ - WAS MADE DURING THE F.Y. 2014 - 15 , OUT OF WHICH RS. 13,70,000/ - WAS ACCEPTED AS EXPLAINED FOR SALE OF AGRICULTURAL LAND BY SMT. SUBBAYAMMAREDYY AND THE BALANCE AMOUNT OF RS. 51,13,000/ - WAS BR O UGHT TO TAX AS UNEXPLAINED CASH DEPOSITS IN THE HANDS OF THE ASSESSEE . AGAINST WHICH THE ASSESSEE WENT ON APPEAL BEFORE THE L D. CIT(A) AND THE L D. CIT(A) SUSTAINED THE ADDITION MADE BY THE AO. 3 . AGAINST THE ORDER OF THE LD. C IT(A) , THE ASSESSEE IS IN APPEAL BEFORE THIS TRIBUNAL. DURING APPEAL HEARING , LD.A R SUBMITTED THAT THE ACCOUNT MAINTAINED WITH HDFC BANK B EARING A/C NO. 23971930000076 IS A JOIN T ACCOUNT IN THE NAME OF MARRI VENKATA SUBBA REDDY AND HIS MOTHER SMT. MARRI SUBBAYAMMA REDDY ALONG WITH THE ASSESSE E AND THE DEPOSITS IN THE ACCOUNT WERE MADE BY SMT.SUBBAYAMMA REDDY AND THE SAME REQUIRED TO BE CONSIDERED IN THE HANDS OF SMT.SUBBAYAMMA RED DY BUT NOT IN THE HANDS OF THE ASSESSEE. THE LD.A.R . FURTHER SUBMITTED THAT T HE ASSESSEE HAS ALSO FILED A LETTER DURING THE COURSE OF ASSESSMENT PROCEEDINGS BEFORE THE AO STATING THAT THE SAID FACTS . THE ASSESSEE DREW OU R ATTENTION TO PAGE NO.4 OF THE PAP ER BOOK WHEREIN IT WAS STATED T H A T THE SAID DEP O SIT ACCOUNT MAINTAINED WITH HDFC BANK BELONGS TO HER MOTHER - IN - LAW. IT WAS ALSO MENTIONED IN THE LE T TER THAT SHE SOLD AGRICULTURAL LAND OF 6.84 ACRES AND RECEIVED THE SALE CONSIDERATION OF RS.13,70,000/ - WHICH 3 ITA NO. 43/VIZ/2019 ( SMT. MARRI VIJAYALAKSHMI ) WAS DEPOSITED IN THE BANK ACCOUNT. FURTHER IN PAGE NO. 5 & 6, THE ASSESSEE EXPLAINED THE SOURCE OF DEPOSIT WITH CASHFLOW STATEMENT . THE ASSESSEE PLACED CASH FLOW STATEMENT IN PAGE NO. 18 TO 20 OF THE PAPER BOOK EXPLAINING THE SOURCE OF DEPOSITS . T HEREFORE, LD.AR ARGUED THAT THE DEPOSITS MADE IN THE JOINT ACCOUNT CANNOT BE ASSESSED TO TAX IN THE HANDS OF THE ASSESSEE. FURTHER, LD.AR ALSO SUBMITTED THAT SINCE THE ASSESSEE HAS INTIMATED THE AO THAT JOINT ACCOUNT BELONGS TO HER MOTHER - IN - LAW SMT.SUBBAYAMMA REDDY WHO IS A JOINT ACCOUNT HOLDER, IF AT ALL ADDITION REQUIRED TO BE MADE, THE SAME REQUIRED TO BE MADE IN THE HANDS OF HER MOTHER - IN - LAW BUT NOT IN HER HANDS. THE LD.AR ALSO SUBMITTED THAT THE ASSESSMENT IN THE CASE OF HER HUSBAND SHRI MA RRI VENKATA S UBBA REDDY WAS COMPLETED U/SEC. 143(3) WITHOUT MAKING THE ADDITION RELATING TO CASH DEPOSIT S AND ACCEPTING THE EXPLANATION THAT THE DEPOSITS IN THE ACCOUNT W E R E PERTAINED TO SMT. SUBBAYAMMA REDDY . THEREFORE, ARGUED THAT THE AO OUGHT TO HAVE ACCEPTED THE EXPLANATION OF THE ASSESSEE TO ASSESS THE CASH DEPOSITS IN THE HANDS OF SMT. SUBBAYAMMA REDDY , HENCE SUBMITTED THAT THE ORDERS OF THE AUTHORITIES BELOW NEED TO BE SET ASIDE AND ALLOW THE APPEAL OF THE ASSESSEE. 4 . ON THE OTHER HAND, LD.DR VEHE MENTLY SUPPORTED THE ORDERS OF THE AUTHORITIES BELOW. 5. WE HAVE HEARD BOTH THE PARTIES, PERUSED THE MATERIAL PLACED ON RECORD. 6 . IN THE INSTANT CASE, THE DEPOSITS WERE MADE IN JOINT ACCOUNT MAINTAINED IN THE NAME S OF MARRI VENKATA SU BBAREDDY BEING A FIRST HOLDER , THE ASSESSEE AND HER MOTHER - IN - LAW 4 ITA NO. 43/VIZ/2019 ( SMT. MARRI VIJAYALAKSHMI ) SMT.SUBBAYAMMA REDDY. IN THE ASSESSMENT ORDER, THE AO HAS NOT GIVEN ANY REASON TO ASSESS THE DEPOSITS MADE IN THE BANK ACCOUNT IN THE HANDS OF THE ASSESSEE INSTEAD OF HER MOTHER - IN - LAW SMT. SUBBAYAMMA REDDY , T HOUGH, THE ASSESSEE H AS GIVEN A LETTER TO TH E AO STATING THAT THE DEPOSITS MADE IN JOINT ACCOUNT BELONGED TO HER MOTHER - IN - LAW SMT. SUBBAYAMMA REDDY . AS PER PAGE NO.4 OF THE PAPER BOOK, THE AO HAD ACCEPTED THE CREDIT OF SALE PROCEEDS RELATING TO SMT. SUBBAYAMMA REDDY AS A SOURCE FOR THE SUM OF RS.13.70 LACS , HOWEVER REST OF THE DEPOSITS ARE ASSESSED IN THE HANDS OF THE ASSESSEE WITHOUT GIVING ANY REASON. THE ASSESSEE ALSO EXPLAINED THE SOURCE IN DETAIL DURING T HE COURSE OF ASSESSMENT PROCEEDINGS BY LETTER IN PAGE NO. 5 TO 7 OF THE PAPER BOOK. THE AO SIMPLY BRUSHED ASIDE THE EXPLANATION AND TAXED THE DEPOSITS IN THE HANDS OF THE ASSESSEE . WHEN THE DEPOSITS WERE MADE IN THE JOINT ACCOUNT THE SAME SHOULD BE ASSESSE D IN THE HANDS OF CORRECT PERSON AFTER DUE IDENTIFICATION. IN THE INSTANT CASE, THE ASSESSEE FURNISHED THE LETTER BUT THE AO HAS NOT MADE ANY EFFORT TO VERIFY THE CORRECTNESS OF THE STATEMENT MADE BY SMT. MARRI VIJAYA LAKSHMI S TATING THAT SMT. SUBBAYAMMA REDDY IS NOT AN INCOME - TAX ASSESSEE . THE AO IS NOT BARRED FROM MAKING ASSESSMENT IN THE HANDS OF THE PERSON WHO IS NOT ASSESSED TO TAX IF THERE IS TAXABLE INCOME . SMT. SUBBAYAMMA REDDY ALSO DID NOT REFUSE OR REJECT THE STATEMENT MADE BY THE ASSESSEE AND THEREFORE WE HOLD THAT WHEN SPECIFICALLY MADE OUT THE CASE TH AT DEPOSITS WERE MADE BY HER MOTHER - IN - LAW SMT. SUBBAYAMMA REDDY WHO IS THE JOINT ACCOUNT HOLDER, THERE IS NO JUSTIFICATION TO MAKE THE ADDITION IN THE HANDS OF THE ASSESSEE, HENCE, WE SET ASIDE THE ORDER OF THE LD. CIT(A) AND DELETE THE ADDITION MADE BY THE AO. 5 ITA NO. 43/VIZ/2019 ( SMT. MARRI VIJAYALAKSHMI ) 7 . E VEN OTHERWISE, THE ASSESSEE HAS THE FURNISHED CASH FLOW STATEMENT EXPLAINING THE SOURCE OF THE DEPOSITS, THE CASH DEPOSITS MADE BY THE ASSESSEE ARE SUPPORTED BY THE WITHDRAWAL S MADE IN THE ACCOUNT AND THE DEPARTMENT DID NOT BRING ANY EVIDENCE TO DISPUTE THE CASH FLOW STATEMENT OF THE ASSESSEE . ACCORDING TO THE CASH FLOW STATEMENT THERE WAS A DEFICIT OF RS.76000/ - ONLY . SINCE ALL THE JOINT ACCOUNT HOLDERS ARE THE INCOME - TAX ASSESSEES , THERE IS NO REASON TO SUSPECT THE NEGATIVE BALANCE OF RS. 76,000/ - ARRIVED IN PAGE NO.18 OF THE PAPER BOOK. THEREFORE, ON MERITS ALSO, THE ASSESSEE SUCCEEDS AND HENCE, WE DELETE THE ADDITION AND ALLOW THE APPEAL OF THE ASSESSEE. 8 . IN THE RESULT, APPEAL FILED BY THE ASSESSEE STANDS ALLOWED . ORDER PRONOUNCED IN OPEN COURT ON TH IS 0 7 T H DAY OF MAY , 2021 . S D / - S D / - (N.K. CHOUDHRY) (D.S. SUNDER SINGH) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED : 0 7 T H MAY , 20 2 1 . VR/ - COPY TO: 1. THE ASSESSEE - SMT. MARRI VIJAYALAKSHMI, D.NO. 5 - 6 - 3/A, NAGARJUNA NAGAR, WARD - 9, SATTENAPALLI, GUNTUR DISTRICT. 2. THE REVENUE INCOME TAX OFFICER, WARD - 1(3), GUNTUR . 3. THE PR. CIT , GUNTUR. 4. THE CIT(A) - 1 , GUNTUR. 5. THE D.R . , VISAKHAPATNAM . 6. GUARD FILE. BY ORDER SR. PRIVATE SECRETARY, ITAT, VISAKHAPATNAM.