I.T.O., Shivpuri V. Sh. Dr. Laxminarayan Garg, Sheopur

ITA 471/AGR/2012

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 0559 (ITAT-AGRA)
• Duration Of Justice: 6 year(s) 7 month(s) 8 day(s)
• Appeal Type: Cross Objection
• Pronouncement Date: 16-05-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 13-05-2013
• Assessment Year: 2009-2010
• Appeal Filed On: 08-10-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: KK MISHRA
• Keywords: Unexplained investment; Depreciation; Business expenditure; Assessment record
• Section: 133(6); 144

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AGRA BENCH, AGRA BEFORE SHRI BHAVNESH SAINI, JUDICIAL MEMMBER AND SHRI A.L. GEHLOT, ACCOUNTANT MEMBER ITA NO. 471 AGRA/ 2012 ASSESSMENT YEAR 2009-10 INCOME TAX OFFICER . VS. SHRI LAXMI NARAYAN GA RG, SHIVPURI, BEHIND COLLECTOR BUNGLOW, SHEOPUR, M.P. (PAN ADBPG2015M) (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI K.K. MISHRA JR. D.R. RESPONDENT BY : NONE DATE OF HEARING : 13.05.2013 DATE OF PRONOUNCEMENT : 17.05.2013 ORDER PER BHAVNESH SAINI, JUDICIAL MEMBER THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER OF LEARNED CIT(A) GWALIOR DATED 06.07.2012 FOR A.Y. 2009-10. 2. ON THE LAST DATE OF HEARING, ON 25.03.2012, THE APPEAL WAS ADJOURNED ON THE REQUEST OF LEARNED COUNSEL FOR THE ASSESSEE TO 13.0 5.2013. HOWEVER, ON THE DATE OF HEARING ON 13.05.2013, NONE APPEARED ON BEHALF O F THE ASSESSEE, DESPITE SERVICE OF NOTICE, THEREFORE, THE ASSESSEE IS PROCE EDED EX-PARTE. ITA NO.471/AGRA/2012 A.Y.2009-10 2 3. WE HAVE HEARD LEARNED D.R. AND PERUSED THE FINDI NGS OF AUTHORITIES BELOW. 4. ON GROUND NO.1, REVENUE CHALLENGED THE DELETION OF ADDITION OF RS.53,462/- ON ACCOUNT OF DISALLOWANCE OF DEPRECIAT ION. THE ASSESSEE FILED RETURN OF INCOME DECLARING INCOME FROM PENSION, PRIVATE PR ACTICE AND INTEREST. THE A.O. DISALLOWED THE DEPRECIATION WITHOUT GIVING ANY PLAU SIBLE REASONS. THE LEARNED CIT(A) FOUND THAT THE CLAIM OF THE ASSESSEE FOR DEP RECIATION IS ALLOWABLE AS BUSINESS EXPENSES SINCE BUSINESS/PROFESSIONAL RECEI PTS AND OWNERSHIPS OF THE CAR BY THE ASSESSEE HAVE NOT BEEN DISPUTED BY THE A.O. THE CLAIM OF THE ASSESSEE FOR DEPRECIATION IS ACCORDINGLY ALLOWED. 5. ON CONSIDERATION OF THE ABOVE FACTS, WE DO NOT F IND ANY INFIRMITY IN THE ORDER OF THE LEARNED CIT(A) IN DELETING THE ADDITIO N ON ACCOUNT OF CLAIM OF DEPRECIATION. SINCE THE ASSESSEE DECLARED THE BUSIN ESS/PROFESSIONAL RECEIPTS AND OWNERSHIP OF THE VEHICLE WITH THE ASSESSEE IS NOT D ISPUTED WHICH IS STATED TO BE USED FOR THE PURPOSE OF BUSINESS, THEREFORE, LEARNE D CIT(A) CORRECTLY ALLOWED DEPRECIATION IN FAVOUR OF THE ASSESSEE. 6. GROUND NO.1 OF APPEAL OF THE REVENUE IS ACCORDIN GLY DISMISSED. ITA NO.471/AGRA/2012 A.Y.2009-10 3 7. ON GROUND NO.2, THE REVENUE CHALLENGED THE DELET ION OF RS.18,37,000/- ON ACCOUNT OF UNEXPLAINED BANK DEPOSITS. THE A.O. C ONSIDERING SEVERAL DEPOSITS IN THE BANK ACCOUNT STATED TO BE BELONGING TO THE A SSESSEE AND IN THE ABSENCE OF ANY EXPLANATION CONSIDERED THE ENTIRE DEPOSITS AS U NEXPLAINED DEPOSITS/INVESTMENT IN THE BANK ACCOUNT AND ACCORDI NGLY MADE ADDITION OF RS.18,37,000/- IN THE CASE OF THE ASSESSEE. IT WAS SUBMITTED BEFORE LEARNED CIT(A) THAT THE A.O. RAISED THE QUERY REGARDING TRA NSACTIONS IN BANK ACCOUNT OF STATE BANK OF INDIA, ACCOUNT NO. 53052339073.THE AS SESSEE FILED DETAILED REPLY BEFORE A.O. ON THE BASIS OF STATEMENT OF RECEIPTS A ND PAYMENTS ACCOUNTS, CAPITAL ACCOUNT AND BALANCE SHEET OF ALL FAMILY MEMBERS AND HUF OF THE ASSESSEE AVAILABLE WITH HIM BUT THE A.O. DID NOT CONSIDER TH E SAME TO BE PROPER. THE ASSESSEE EXPLAINED EACH AND EVERY DETAILS AND BANK ENTRIES, THEREFORE, THE ADDITION WAS WHOLLY UNJUSTIFIED. IT WAS SUBMITTED THAT AFORE SAID BANK ACCOUNT IS JOINT BANK ACCOUNT OF ASSESSEE ALONG WITH HIS WIFE LATE SMT. I NDU GARG, DAUGHTER GUNJAL GARG AND L.N. GARG HUF. THE ACCOUNT IS OPERATED BY ANY ONE OR THE SURVIVOR. IT WAS FURTHER SUBMITTED THAT TRANSACTIONS IN THE BANK ACCOUNT WERE RELATED TO ALL THE JOINT ACCOUNT HOLDERS FOR THE SAKE OF CONVENIENCE O F THE ASSESSEE. IT WAS ALSO SUBMITTED THAT ALL THE FAMILY MEMBERS ALONG WITH AS SESSEE WERE REGULAR ASSESSEES AND ASSESSED AT INCOME TAX OFFICE, SHIVPURI. COPY O F RECEIPTS AND PAYMENTS ITA NO.471/AGRA/2012 A.Y.2009-10 4 ACCOUNT, CAPITAL ACCOUNT AND BALANCE SHEET ALONGWIT H ACKNOWLEDGEMENT OF FILING OF THE RETURN FOR ALL FAMILY MEMBERS WERE FILED BEF ORE A.O. IN SUPPORT OF THE EXPLANATION. THE ASSESSEE ALSO FILED DETAILS OF AMO UNT RECEIVED FROM THE MATURITY OF KVP AND POST OFFICE, FDRS OF ALL FAMILY MEMBERS WITH THE REPLY. THE ASSESSEE MADE DEPOSITS OF RS.2,25,000/- ON 19.11.2008 FROM T HE AMOUNT RECEIVED OF MIS MATURED RS.2,22,720/- AND REST AMOUNT RS.2,280/- WA S DEPOSITED OUT OF CASH AVAILABLE WITH THE ASSESSEE. THE DETAILS OF THE SAM E WERE FILED BEFORE A.O. 8. LEARNED CIT(A) CONSIDERING THE EVIDENCE AND MATE RIAL AVAILABLE ON RECORD ACCEPTED THE CONTENTION OF THE ASSESSEE THAT ALL TH E DEPOSITS IN THE BANK ACCOUNT ARE EXPLAINED ALONG WITH SOURCES, THEREFORE, ADDITI ON WAS ACCORDINGLY DELETED. THE FINDINGS OF LEARNED CIT(A) IN PARA 4.2 OF THE A PPELLATE ORDER ARE REPRODUCED AS UNDER :- 4.2 APPELLANTS SUBMISSIONS ALONG WITH ASSESSMENT ORDER HAVE BEEN CONSIDERED CAREFULLY. ASSESSMENT RECORDS HAVE ALSO BEEN PERUSED. ON PERUSAL, APPELLANTS SUBMISSIONS A RE FOUND ACCEPTABLE. VIDE LETTER DT. 2.11.2011 THE APPELLANT HAS GIVEN DETAILS OF ASSESSMENT OF HIS LATE WIFE SMT. INDU GA RG AND HIS DAUGHTER GUNJAL GARG. COPY OF RETURN, INCOME COMPUT ATION, RECEIPTS AND PAYMENTS ACCOUNT, CAPITAL ACCOUN AND B ALANCE SHEET FOR A.Y. 2007-08, 2008-09 & 2009-10 HAVE ALSO BEEN ENCLOSED ALONG WITH ORDER DATED 24.06.2008 PASSED U/S 144 FO R A.Y. 2006- 07 IN CASE OF SMT. INDU GARG. AO HAS OBTAINED BANK STATEMENT OF THE APPELLANT FROM STATE BANK OF INDIA, SHOEPURKALA LN U/S 133(6) VIDE LETTER DT.28.10.2011. VIDE LETTER DT.28.11.201 1 THE APPELLANT ITA NO.471/AGRA/2012 A.Y.2009-10 5 HAS BEEN ASKED TO GIVE DETAILS OF DEPOSITS/WITHDRAW AL IN THE SAID BANK ACCOUNT TOTALING RS.56,71,741/-. IN RESPONSE T HE APPELLANT HAS SUBMITTED DETAILED REPLY ON 24.12.2011 STATING THE FACT THAT SOURCE OF DEPOSIT ON VARIOUS DATES AS MENTIONED BY THE A.O. THE SAID BANK ACCOUNT IS STATED TO BE A JOINT ACCOUNT I N THE NAME OF THE APPELLANT, HIS WIFE -SMT. INDU GARG, DAUGHTER GUNJAL GARG AND HUF SHRI L.N. GARG (HUF). COPY OF RETURNS ALON G WITH INCOME COMPUTATION, RECEIPTS AND PAYMENT ACCOUNT, C APITAL ACCOUNT AND BALANCE SHEET REFLECTING INVESTMENTS MA DE IN KVP, FDRS, MIS (PO), UTI FUNDS ETC. HAVE ALSO BEEN ENCLO SED IN RESPECT OF LD AO ARBITRARILY HAS NOT CONSIDERED ALL THE THINGS SUBMITTED BEFORE HIM AND SHE MADE AN ADDITION OF RS . 18,37,000/- ON ACCOUNT OF UNEXPLAINED INVESTMENT. THAT THE LD. AO MADE ON ADDITION OF FOLLOWING DEPOS ITS IN BANK ACCOUNT. DATE AMOUNT 25.08.2008 14,30,000/- 19.11.2008 2,25,000/- 19.12.2008 1,82,000/- TOTAL RS. 18,37,000/- THAT DURING THE COURSE OF ASSESSMENT PROCEEDINGS TH E ASSESSEE MADE FOLLOWING SUBMISSION REGARDING ABOVE DEPOSITS. 25.08.2008 14,30,000/- CASH DEPOSITED OUT OF THE MA TURITY AMOUNT OF KVP OF SMT. INDU GARG RS.5,12,000/-, THE ASSESSEE 1,28,000/-, GUNJAL GARG 1,60,000/- AND POST OFFICE FDR MATURED OF THE ASSESSEE RS.3,22,350/- AND GUNJAL GARG RS.3,22,350/-. TOTALRS.14,44,700/- 19.11.2008 2,25,000/- OUT OF POST OFFICE FDR MATURE D ON A/C OF L.N. GARG HUF 19.12.2008 1,82,000/- CASH DEPOSITED OUT OF MATURIT Y AMOUNT OF MIS, POST OFFICE ON A/C OF SMT. INDU GARG AND THE ASSESSEE. ITA NO.471/AGRA/2012 A.Y.2009-10 6 THE DETAILS OF PAYMENT RECEIVED FROM POST OFFICE A S PER CERTIFICATES ISSUED BY THE SUB-POST MASTER, POSTER OFFICE, SHEOP UR ARE AS UNDER: DETAILS OF DEPOSITS MADE ON 25.08.2008 DATE AMOUNT NAME OF ACCOUNT HOLDER AMOUNT RECEIVED FROM 14.08.2008 5,12,640/- SMT. INDU GARG KVP MATURED 14.08.2008 1,60,200/- GUNJAL GARG KVP MATURED 14.08.2008 1,28,160/- DR. L.N. GARG KVP MATURED 14.08.2008 3,22,348/- GUNJAL GARG 3 YEARS TDR MATURED 14.08.2008 3,22,348/- DR. L.N. GARG 3 YEARS TDR MATURED TOTAL RS. 14,45,696/- THE ASSESSEE DEPOSITED RS.14,30,000/- ON 25.08.2008 OUT OF ABOVE AMOUNT RECEIVED FROM POST OFFICE. DETAILS OF DEPOSITS MADE ON 19.11.2008 DATE AMOUNT NAME OF ACCOUNT HOLDER AMOUNT RECEIVED FROM 17.11.2008 48,720/- SMT. INDU GARG MIS MATURED 17.11.2008 48,720/ SMT. INDU GARG MIS MATURED 17.11.2008 27,840/ SMT. INDU GARG MIS MATURED 17.11.2008 48,720/ SMT. INDU GARG MIS MATURED 17.11.2008 48,720/ SMT. INDU GARG MIS MATURED TOTAL RS. 2,22,720/- ALL THE ACCOUNT HOLDERS. AO HAS PASSED THE ORDER ON 26.12.2011 WITHOUT BRINGING ANY ADVERSE MATERIAL ON RECORD BEF ORE REJECTING APPELLANTS SUBMISSIONS OR MAKING ANY ENQUIRY FROM POST OFFICE ETC. DURING THE COURSE OF APPEAL PROCEEDINGS, ON BEING A SKED, CERTIFICATE OF CONCERNED POST OFFICE HAS ALSO BEEN BROUGHT ON R ECORD WHEREBY DEPOSITS IN KVP, INTEREST EARNED THEREON ALONG WITH PAYMENT ON MATURITY HAVE ALSO BEEN CERTIFIED BY SUB-POST MASTE R. IN MY VIEW THE ITA NO.471/AGRA/2012 A.Y.2009-10 7 APPELLANT HAS DULY EXPLAINED DEPOSITS IN HIS JOINT BANK ACCOUNT, OPERATED BY ANYONE OR SURVIVOR, MADE ON VARIOUS DAT ES. ADDITION OF RS.18,37,000/- MADE BY THE AO TREATING THESE DEPOSI TS AS UNEXPLAINED IS NOT FOUND SUSTAINABLE AND IS, HEREBY DELETED. 9. THE LEARNED D.R. RELIED UPON THE ORDER OF THE A. O. 10. ON CONSIDERATION OF THE FACTS OF THE CASE, IN T HE LIGHT OF THE FINDINGS OF LEARNED CIT(A), WE DO NOT FIND ANY JUSTIFICATION TO INTERFERE WITH THE ORDER OF LEARNED CIT(A) IN DELETING THE ADDITION. THE ASSESS EE SUBMITTED COMPLETE DETAILS OF THE SOURCE OF THE DEPOSITS MADE IN THE BANK ACCO UNT ON DIFFERENT DATES. ALL THE DEPOSITS MADE IN THE BANK ACCOUNT HAVE BEEN EXPLAI NED THROUGH THE KNOWN SOURCES. THE LEARNED CIT(A) ON PROPER APPRECIATION OF THE FACTS AND MATERIAL AVAILABLE ON RECORD RIGHTLY DELETED THE ADDITION. I T IS A DEPARTMENTAL APPEAL AND NO MATERIAL OR EVIDENCES HAVE BEEN PRODUCED BEFORE US TO CONTRADICT OR REBUT THE FINDINGS OF THE LEARNED CIT(A). IN THE ABSENCE OF A NY MATERIAL ON RECORD IN FAVOUR OF THE REVENUE, WE DO NOT FIND ANY JUSTIFICATION TO INTERFERE IN THE ORDER OF THE LEARNED CIT(A) IN DELETING THE ADDITION. GROUND NO. 2 APPEAL OF THE REVENUE IS ACCORDINGLY DISMISSED. ITA NO.471/AGRA/2012 A.Y.2009-10 8 11. IN THE RESULT, DEPARTMENTAL APPEAL IS DISMISSE D. (ORDER PRONOUNCED IN THE OPEN COURT) SD/- SD/- (A.L. GEHLOT) (BHAV NESH SAINI) ACCOUNTANT MEMBER JUDICIAL MEMBER AMIT/ COPY OF THE ORDER FORWARDED TO:- 1. APPELLANT 2. RESPONDENT 3. CIT (APPEALS) CONCERNED 4. CIT CONCERNED 5. D.R., ITAT, AGRA BENCH, AGRA 6. GUARD FILE. BY ORDER SR. PRIVATE SECRETARY INCOME TAX APPELLATE TRIBUNAL, AGRA TRUE COPY